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Classic Airlines Marketing Solution Essay

3346 words - 13 pages

Classic Airlines, after 25 years of operations, ranked the fifth largest airline with more than 2,300 flights a day and 32,000 employees. Share price has dropped 10% in the past year and their Rewards Program, popular with their most loyal customers, has dwindled 19%, while overall employee morale and customer satisfaction has slipped to all time lows. These are coupled with a drop in customer loyalty as illustrated by the reduced number of rewards members and declining flight reservations from all of the Classic client database. Classic has implemented a 15% cost reduction plan over 18 months, further reducing the resources available to bolster Classics decreasing revenues and avoid future financial difficulties. These drastic cuts were implemented as a post 9/11 measure with hopes of renewed flight interest by all travalers. (Classic Airlines, 2007).Internal PressuresThere are now many internal pressures that are contributing to Classic Airline's current business success, or more accurately stated, the failure of success that was once present. The most easily identified internal problem is the declining employee morale and general lack of support for the company in it's current operational status. The employees are disheartened by the fact that Classic Air's attitude toward the clients that they must communicate with on a daily basis has deteriorated to such a low level, that they are embarrased and having difficulty supporting the recent changes. These recent trends in weak and inadequate customer support create a real problem for the all the operator's when explaining on the phone that there is very few options of any significance available to them for their long term commitment to Classic Air as dedicated customers and frequent flyers. Classic Air's employees, from the reservation operators to management, must be able to believe in Classic. Recently, the inplementation of the automated customer relations management (CRM) has put many customers in a irritated stat when finally reaching a live operator and this further complicates the difficulties for achieving customer satisfaction on the phone. There are members of the upper management team who are also not happy with the way their CEO, Amanda Miller is handling the discontent of the customer base. The dissent and difference of opinions on the response to the many unhappy customers is noticeable to plenty of internal employees, which adds to the difficulty of employee support for a single and tangible solution.External PressuresExternal pressures that are contributing to Classic's current problems are in the many labor contracts that they are involved in from the past when business was flourishing before the 9/11 crisis and significant decline in customers comfort level with flying on any airline. Increasing fuel costs are of concern as are labor costs. The Labor unions currently contracted are still recieving the top notch pay and benefits that were associated with the era of superb and...

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