Classic_Airlines

Classic Airlines and Marketing Emily Thompson MKT/571 Marketing March 11, 2013 Classic Airlines and Marketing Classic Airlines is one of the largest airlines. It has over 375 jets, which help serve many cities and daily flights. Being in business for 25 years, Classic Airlines has grown into a great organization. Last year Classic Airlines earned $10 million dollars from $8.7 billion in sales. There are some issues that Classic Airlines faces, such as, uncertainty about flying which caused a decrease in share prices. Employee morale has been very low due to the talk from Wall Street, the public, and the media. One issue the company has been facing is the decline in Classic Rewards which is down 20% from the previous year. The number of flights per member is down as well. It is essential for Classic Airlines to get their customers back into the Classic Rewards program and back to frequent fliers. The challenge is to rise above the competition without lowing airfare. It is important to reconnect with the customers and know their needs and wants. In this paper, I will explain the rewards program, the CRM system currently in place, the marketing concepts being used and needed, and marketing plan for the success of the company. Classic Rewards One way Classic Airlines markets is their Classic Rewards program for their customers. Classic Rewards members earn miles when they purchase eligible tickets on qualifying flights. Members can also earn miles for staying with one of the hotel partners, renting care for their partner companies and by their co-branded credit card. It is a tiered program. Most membership comes from 80% business and 20% leisure. When speaking with customers, their main issues with the Airline were customer service related and getting to their destination on time. CRM System One way that Classic Airlines monitors is by their CRM system. The initial concerns of the company were directing customers to the internet rather than speaking with them on the phone. The company wanted to reduce headcount and deliver cost savings. The goal for Classic Airlines is to use the CRM system to put customers at the center of business. The segmentation strategy is outdated. The customers need to be listened too. Another issue is cost saving for the company. Some ideas have come across that may help reduce costs, such as, reduce the number of reservations operations centers, eliminate travel agent commissions, and development an employee buyout program. Marketing concepts One concept that Classic Airlines needs to embrace is the product concept. The concept focuses on quality and performance. Customers are wanted Classis Airlines to improve their customer service and their tardiness on their flights. By providing customers with quality and performance from great customer service and efficiencies on their daily flights, customers would be thrilled with the rewards program. Holistic marketing is a concept that comes from the development, design and implementation of marketing. It focuses on the concept that everything matters. The components include relationship marketing, integrated marketing, internal marketing and social responsibility marketing (Kotler & Keller, 2006). If Classic Airlines focused on all the components in the holistic marketing concept, then customer satisfaction would be on the rise. Marketing planning Marketing planning is essential for Classic Airlines. Through many conversations, emails, and reports, Classic Airlines has done a lot of strategic planning. Understanding customer value, creating that value, delivering, capturing, sustaining customer value is the key to strategic planning. Having a marketing plan is so important for Classic Airlines. Their first step is redirecting their corporate mission back to valuing the customer (Kotler & Keller, 2006). Classic Airlines sees the need for redirecting their goals to satisfy their customers. A SWOT Analysis is very important. It shows the strengths, weakness, opportunities, and threats for the company (Kotler & Keller, 2006). By looking at the internal and external analysis of the company, they will be able to see more clearing the strengths, weaknesses, opportunities and threats. The next stops in planning are goal formulation, strategic formulation, program formulation and implementation, and feedback and control (Kotler & Keller, 2006). By having a clear plan, the company can accomplish their goals. Conclusion In conclusion, the main focus for Classic Airlines is keeping their customers happy. Redirecting their loyalty program, enhancing the customer service, and efficiencies of their flights arrivals will help gain customer loyalty and appreciation. Putting value back on the customers is essential for Classic Airlines to grow in sales. Classic Airlines has programs in process to monitor and control such as the CRM system. With enhancements to the system, they will be able to focus more of what is important to the company… their customers. Using marketing concepts and having a marketing plan will ensure the success of the business and their goals. References: Kotler & Keller. (2006). Marketing Management (12th ed.). New Jersey: Pearson-Prentice Hall.