This website uses cookies to ensure you have the best experience. Learn more

Problem Solution Classic Airlines Essay

7566 words - 30 pages

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (Kerin, 2005). Marketing is a fundamental key to any businesses success and involves determining the needs, wants and desires of consumers and satisfying them to the best of the companies' ability.The context of the paper will examine the case study of Classic Airlines and provide and in-depth situation analysis starting with a brief background of the scenario, identify the issues and opportunities, explore stakeholder perspectives and ethical dilemmas. Continuing through the problem definition guidelines, a problem statement will be developed and end state goals will be identified which will provide the foundation for proposed solutions and analysis of the solutions. A risk assessment and mitigation will help to identify the optimal solution which will lead to the development of an implementation plan and finalize with a gap analysis.Describe the SituationSituation BackgroundClassic Airlines, the world's fifth largest airline, has been in business 25 years and employs over 32,000 people. Currently, Classic Airlines has a fleet of 375 jets, serving 240 cities and operating over 2,300 flights per day (Scenario, 2007). Declining sales, market share, profitability and membership in their rewards program has Classic Airlines facing an industry of consolidation and competitiveness.Issue IdentificationThere are a number of issues Classic Airlines must address. The primary issues the senior leadership team needs to address in turning Classic Rewards program around are declining Classic Reward membership as a result of low customer satisfaction, inefficient use of the Customer Relationship Management system, and not having an alliance agreement in place. Classic Airlines has faced a number of challenges with rising fuel cost prices, higher labor costs, and declining membership in the rewards program. They have tried discounting fares in order to remain competitive and recruit new customers. however these did not work. In addition there has been a severe decline in customer satisfaction, as is evident by Kevin Boyle's conversation with existing customers and the recently released Customer Loyalty report. Customers are unhappy with a number of items including the services they have been receiving when calling the help desk and the rewards they receive as part of the Classic Rewards program (Scenario, 2007).The second issue is inefficient use of the CRM system. Classic Airlines CRM tool is one of the most powerful in the industry; it has not been implemented in the correct manner. Classic Airlines has failed to totally integrate the CRM tool, thereby compromising the level of customer service representative that are available to their customers. In addition, the data being collected by the system is not a true representation of their...

Find Another Essay On Problem Solution-Classic Airlines

Classic Airlines Marketing Solution Essay

2254 words - 9 pages meeting the company's goal of growth and shareholders wealth.The purpose of this paper is to provide an analysis of the Classic Airline's management decisions, methods and gain a leading edge in the aviation industry.Identification of Issues and OpportunitiesAn uncontrolled market is influenced in many ways there for Classic Airlines is working on cutting cost through high passenger loads but, with high fuel costs raising the problem to find

Classic Airlines Marketing Solution Essay

3346 words - 13 pages more of goal setting model that achieves all five of the individual criteria for goal related success, specific, measurable, attainable, realistic, and timely, all in an effort to create the means to an end that is directed at a specific problem (Goal Setting, 2003). In this case, needs of current customers is a starting point.Assessing RiskOne of the biggest concerns for Classic Airlines is their ability to understand what the customers that

MBA 570, University of Phoenix: Classic Airlines Problem Solution

1352 words - 5 pages Classic Airlines is the fifth largest airliner in the world and commands more than 375 jets. In 25 years of business, Classic Airlines has more than 2300 flights daily and serves 240 cities. Since the beginning, Classic Airlines has always been profitable, but since 2005 the Classic Rewards program has sharply declined by 19%. To make matters worst, consumer confidence appears to be vanishing and remaining Classic Rewards members on flights is

Situation Analysis: Classic Airlines

1594 words - 6 pages promotional marketing during the off peak seasons. The more data that Classic can collect from all sources, but especially existing customer, the more accurately the carrier can predict and meet changing or unmet customer needs. Therefore, the methodology used and the operational philosophy of Classic needs to be aligned with such a strategy. These issues have created opportunities for Classic Airlines to address the root cause of the problem

Classic Airline Benchmarking

3258 words - 13 pages relationships.Generic Benchmarking-The purpose of generic benchmarking is to identify potential solutions to the problem statements defined in Task A. You will do this by looking at how companies in other industries have dealt with similar issues.Topic A: Best Practices in Customer RelationsDonnaPathology Associates Medical Laboratories (PAML) of Spokane, Washington, just like Classic Airlines was doing a great job. PAML was doing great and was

Classic Airlines

879 words - 4 pages needed and what they must do to bring their customers back. The project has full support of the chief marketing officer (CMO), but others within the company are unsure, as they have not seen how the CRM process can benefit the marketing department. Goals: Classic Airlines goals are to focus on achieving a solution which would bring the customers back to them, achieve a total cost reduction of 15% over the next eighteen months, manage staff creating

Classic Airlines and Marketing

862 words - 3 pages needed and what they have to do to bring the customers back. This project holds the full support of the Chief Marketing Officer (CMO), but has other nervous. Many have not seen how the CRM process can benefit the marketing department.GoalsThe goals are to have Classic airlines focus on achieving a customer solution which would lure the customers back to the airline, achieve a total cost reduction of 15% over the next year and half and management

Control Mechanisms

1347 words - 5 pages control allows the employees to get more involved in the company. The company benefits from increase employee productivity and the employee benefits from the increase in stock value; thus, the company and the employee are happy.Southwest Airlines uses a variety of differentials to calculate output. This mechanism is used to find errors and formalize a solution to correct undesirable performance. Airlines can disguise their actual productivity by

Southwest Airlines

2383 words - 10 pages competitors. A committee should be formed to analyze the problem, cost and future innovation needed to resolve this problem. This solution can assist Southwest Airlines workforce strategy by acknowledging the obesity problem and implementing a “No Man Left Behind” policy (Aroaz, 2007). Heavy Dependence on Passenger Revenue Southwest Airlines has managed to be consistently profitable in all of their years of business. However, Southwest’s

Analysis and Critique of Malaysia Airlines

3413 words - 14 pages airlines services. There are two important factors to consider when looking at problem recognition such as an ideal state as well as an actual state. The ideal state is where a person wants to be and the way they want things to be. The actual state is where a person is at the time regardless of their ideal state. Problem recognition is defined as the perceived difference between an actual and an ideal state of mind. Internal factors can influence the

Qantas International: Analysis of the External Environment

2163 words - 9 pages uncompromising customer focus which “includes everything that would enhance the travel experience for the customer” (Phong, 2014) and cost leadership “product leadership does not mean ever-more complex offerings or throwing money at a problem”. In general, Singapore Airlines strategy is about organic growth and enhancement of partnerships with other airlines. However, Singapore is investing its healthy profits in other airlines, such as SilkAir and Virgin

Similar Essays

Problem Solution: Classic Airlines Essay

1463 words - 6 pages promote repeat business and referrals to the airline.Frame the "Right" Problem"By imposing standards that reflect the values of society on their promotional activities, marketers can (1) facilitate the development of new promotional methods, (2) minimize regulatory constraints and restrictions, and (3) help consumers gain confidence in the communication efforts used to influence their purchases." (Kerin, 2006, p. 522) Classic Airlines must improve

Problem Solution: Classic Airlines Essay

6431 words - 26 pages included as well as measurable and specific metrics for evaluating implementation success.This problem solution proposal is highly researched and analyzed to provide Classic with the best possible solution for achieving its desired outcome. Good openerDescribe the SituationIssue and Opportunity IdentificationClassic Airlines, the world's fifth largest airline, has been in business for 25 years and currently employs 32,000 employees with a fleet of

Problem Solution Paper For Classic Airlines

1693 words - 7 pages Problem Solution: Classic AirlinesClassic Airlines, is 25-year-old passenger airline. Classic Airlines has a fleet of more than 375 jets that serve 240 cities with more than 2300 daily flights making it the fifth largest airline in the world (Classic Airlines scenario, 2007). Classic has grown to be an organization of 32,000 employees, and last year the company earned $10 million on $8.7 billion in sales (Classic Airlines scenario, 2007).This

Classic Airlines Marketing Solution Essay

3085 words - 12 pages CLASSIC AIRLINES MARKETING SOLUTION PAGE \* Arabic \* MERGEFORMAT 1 Running Head: CLASSIC AIRLINES MARKETING SOLUTIONClassic Airlines Marketing SolutionLaKwanza PerryUniversity of PhoenixClassic Airlines Marketing SolutionClassic Airlines is the world's fifth largest airline with a fleet of more 375 jets, serving 240 cities (Keller & Kotler, 2007), with more than 2300 daily flights. The airline has grown to an organization of 32,000