Classic Airlines

Classic Airlines and Marketing

Emily Thompson

MKT/571 Marketing

March 11, 2013

Classic Airlines and Marketing

      Classic Airlines is one of the largest airlines. It has over 375 jets, which help serve many cities and daily flights. Being in business for 25 years, Classic Airlines has grown into a great organization. Last year Classic Airlines earned $10 million dollars from $8.7 billion in sales. There are some issues that Classic Airlines faces, such as, uncertainty about flying which caused a decrease in share prices. Employee morale has been very low due to the talk from Wall Street, the public, and the media. One issue the company has been facing is the decline in Classic Rewards which is down 20% from the previous year. The number of flights per member is down as well. It is essential for Classic Airlines to get their customers back into the Classic Rewards program and back to frequent fliers. The challenge is to rise above the competition without lowing airfare. It is important to reconnect with the customers and know their needs and wants.   In this paper, I will explain the rewards program, the CRM system currently in place, the marketing concepts being used and needed, and marketing plan for the success of the company.

Classic Rewards

      One way Classic Airlines markets is their Classic Rewards program for their customers. Classic Rewards members earn miles when they purchase eligible tickets on qualifying flights.   Members can also earn miles for staying with one of the hotel partners, renting care for their partner companies and by their co-branded credit card. It is a tiered program. Most membership comes from 80% business and 20% leisure.   When speaking with customers, their main issues with the Airline were customer service related and getting to their destination on time.

CRM System

      One way that Classic Airlines monitors is by their CRM system. The initial concerns of the company were directing customers...