Classic Airlines and Marketing

700 Words3 Pages
Classic Airlines and Marketing Classic Airlines is the world fifth largest airline carrier with a fleet of 375 airplanes, servicing 240 cities with more than 2,300 daily flights. Classic Airlines has grown to an organization of 32,000 employees (Phoenix, 2011). Although Classic Airlines is a profitable business, the company performance is in decline. Classic Airlines is suffering from several marketing challenges including customer disconnect, excessive operational costs, and management disagreements. Classic Airlines marketing challenges can be managed through application of fundamental marketing concepts. Customer Disconnect Classic Airlines has lost touch with its customers and failing to meets their needs and wants. Customer confidence is waning. Previously loyal customers no longer see value in the airline and are choosing an alternate airline for their travel needs. Classic Airlines desperately needs to reconnect with their customers. Firms that fail to monitor their customers and competitors and to constantly improve their value offerings are at the greatest risk of profit declines (Kotler & Keller, 2006). Classic Airlines is guilty of not monitoring their customers or competitors and has neglected to improve the company’s value offerings (frequent flyer program). Excessive Operational Costs Rising fuel and labor costs, along with Classic Airlines post 9-11 aggressive expansion plans has placed the company into a restrictive cost structure. To counter any financial crises, Classic Airline’s Board of Directors has mandated a 15% across-the-board cost reduction over the next 18 months. This cost reduction mandates is creating conflict within senior management because the company’s Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) do not consider marketing important to operations and are looking to reduce the marketing
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