Classic Airlines Marketing
Essay by kashmira • February 13, 2013 • Essay • 553 Words (3 Pages) • 1,147 Views
Classic Airlines, the world's fifth largest airlines uses a fleet of 375 aircrafts, employing
nearly 32,000 employees , and earned a $ 10 million profit in their business. Recently, Classic
Airlines has a decline in demand because of 10 % decrease in their share prices,
decrease in amount of customers enrolled in the Classic Rewards program, and decrease in the
market share in the airline industry. With rising investor scrutiny and to overcome the financial
crisis and avoid bankruptcy, the Board of Directors issued an ultimatum to the top management
of Classic Airlines to increase customer participation in the frequent flyer program and cut
operating costs by 15 % over the next 18 months.
Challenges
The airlines industry is an extremely competitive market with cut throat competition between
different airlines. The global economic recession and rising fuel prices have added to the woes of
the airlines industry. The main challenge for airlines is to keep operating costs low while offering
competitive prices and ensuring profitability.
Corporate Culture
The current top level management is resistant to adopting new airlines alliances. Adopting the
new airlines alliances will facilitate Classic Airlines to perform efficient and effective
marketing. They also need to give priority to the customer relationship program (CRM) that
can be used as a tool to identify client's needs and preferences.
The production concept can enable Classic Airlines to regain their market share by dropping the
prices of their tickets. The CEO of Classic Airlines feels that they are not able to drop their
ticket prices further compared to their competitors, it is imperative that they reduce operating
costs. This will give Classic Airlines the option to have more available money to match
competitor's prices and potentially draw back some of their previous customers.
The product concept will enable Classic Airlines to outline the price, distribution,
advertisement, and insurance that the product they are offering their customers is at the right
price and
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