Classic Airlines and Marketing

Classic Airlines and Marketing
Glendadenise Brock-Meredith
University of Phoenix (online)
MKT 571
Patricia Girardi
August 1, 2011

Classic Airlines and Marketing
Classic Airlines is the world’s fifth largest airline with a fleet of more than 375 jets serving 240 cities with more than 2300 daily flights. Classic employs more than 32,000 people worldwide.   Last year, Classic earned $10 million on $8.7 billion in sales. Unfortunately, share prices decreased 10%. Wall Street was very critical of Classic resulting in a decrease in employee morale. Consumer confidence in Classic’s Rewards Program waned, measuring a 19% decrease in membership, and a 21% decrease in flights per members (UOP, 2010). In an attempt to reverse this trend, Classic Airlines must reexamine its marketing strategies.
Marketing Challenges
The growth of discount airlines such as Southwest, JetBlue and others is successful because management is responding to the needs of its customer base, the business traveler. In a time when organizations are looking for ways to cut expenses, an airline that can get the traveler from Point A to Point B at minimum cost will attract contracts with larger organizations as well as the individual traveler.  
Classic Airlines is losing its customer base to other airlines. According to its documents, Classic Airlines is not providing high quality service to its customers. Other airlines are meeting and exceeding customer expectations in comparison to Classic Airlines. Customer churn refers to high customer defection. With all things being equal, customers will choose the provider who excels at customer satisfaction.   Today’s consumers are smarter, price conscious, demanding, and less forgiving. Competitors deliberately approach customers with equal or better offers.
The internet provides the consumer with unlimited access to information. Organizations use the internet to communicate their products and services domestically and globally,...