Classic Airlines Marketing Solution
University of Phoenix
“Every company knows that it costs far less to hold on to a customer than to acquire a new one” (Gokey, 2002). As the commercial airline industry is changing at a rapid pace, Classic Airlines (CA) is faced with the challenge of delivering increased value within leaner consumer budgets. According to Plunkett Research Online, travel industry expenditures are decreasing and e-commerce is gradually replacing many jobs. The analysis of the current situation of CA is to use this pivot point as an opportunity to leverage proven techniques while improving the existing CRM system, and introducing a transparent planning process to increase customer loyalty.
Internal Pressures and External Pressures
External pressures of overexpansion and rising costs have been challenging CA. Some of the internal pressures are approximately 32,000 employees, 19% decrease in Rewards members and 20% decrease in flights, the firm is due for a significant change (UOP Portal, Classic Airlines). Added pressure has been experienced following the Board of Directors 18 months/15% cost reduction mandate. These Internal and External pressures have developed into a crisis that resulted in a 10% decrease in stock price. Amanda Miller (current CEO) was hired in 2000 to prepare for her promotion in 2002, following the retirement of Jack Broadway (former CEO). This transition happened at a critical time, and has unfortunately set back the company. Mrs. Miller believes in operational excellence as a number one priority, which has left the firm vulnerable in a time when consumers need to be valued and competitors are learning more of continuous improvement.
Objective of the Marketing Department
CA must create a sustainable strategized marketing model that evolves through time, and provides communication links to inform internal decision-makers of necessary adjustments. A firm must have...