Classic Airlines Essay

821 WordsJun 13, 20114 Pages
Running Head: Classic Airlines Concepts Classic Airlines Concepts University of Phoenix Classic Airlines is the fifth largest airline in the world. As an organization, Classic employs 32,000 people and earned a $10 million dollar profit off of $8.7 billion in sales. Despite these positives, Classic saw a decline of 10% per share over the last year which is causing bad publicity for Classic as well as a decline in employee morale. Classic's Frequent Flyer program is also suffering showing a decline of 19% in membership and 21% in flights by existing members. Additionally, Classic's Board of Directors is calling for a 15 percent reduction in costs over the next 18 months (UOP, 2010). Tasked with turning this situation around, Classic's marketing team must be successful to ensure continued operations. Classic's first approach should be a holistic marketing concept. The holistic concept focuses on four different elements: internal marketing, integrated marketing, socially responsible marketing, and relationship marketing (Kotler and Keller, 2006). In Classic's current situation, the focus should be internal, integrated, and relationship marketing. This can be done through the use of Classic's current CRM as well as reviewing customer feedback from focus groups, phone interactions, and website feedback. This will help with the relationship aspect as Classic will be able to use the feedback to determine the best way to build new relationships with their customers. Integrated marketing focuses on selling the value of Classic's services. By entering into a strategic alliance with other airlines, Classic will be able to offer flights to other destinations via the Frequent Flyer program without having to spend money to expand operations. Updating the Frequent Flyer program this way will help promote the value of the airline to two different segments,

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