Classic

RUNNING HEAD: Classic Airlines… Classic Airlines: Classic Market Naomi Wright November 18, 2008 MKT 571 University of Phoenix Classic Airlines: Classic Market Classic Airlines, like many airlines after September 11, 2001, faced problems with fulfilling their flights and retaining customers. Beyond their problem with retention, they were also faced with the task of implementing a marketing plan that would ensure an increase in frequent fliers. In creating their new marketing plan, Classic airlines are implementing the value chain, creating strategic plans for the organization, and allowing the feedback to assist in future marketing endeavors. The Value Chain One of the biggest issues for the organization is that they have lost the connection with some of their most loyal customers. Kevin, the new Chief Marketing Officer for Classic, has suggested that the team implement a process to help reconnect and truly understand what the customer wants. In a conversation with Renee Epson, he stated, “Value and price are not the same thing. If we can make people feel good about the money they spend to fly with Classic, they’ll be less concerned about every penny.” (Scenario: Classic Airlines, p 9) By using the examples that other airline companies had that assisted in the growth of their company and what not to do to decrease the customer retention, Classic is starting to create the new environment for the customer. Making the customer feel appreciated and wanted, will create a loyal customer base that Classic will need to survive the harsh times of the airline industry. Strategic Plans Classic is completing the first step of the strategic plan by creating a survey that gauges the needs and wants of the customer. In order to insure that the customer is completely satisfied, Classic Airlines must implement a plan of action. The first part of implementing the plan of action is organizing the needs and concerns of the customer. Knowing that the customer is not concerned with the price of the flights is the best indication that value is among the biggest retention boosters for the company. The last part and most important part of the strategic plan is making sure that Classic is getting it right. If at first the marketing does not succeed, figure out the problem, and try again. The marketing team has to figure a way to get it right without spending too much money. Due to their 15% reduction in marketing expense, every penny will count on the road to customer retention. Listening to the customer needs and attempting to meet the needs in a way that is both cost effective and creates measurable profit, will be the way to go. Feedback for the Future Consistently monitoring new developments will assist Classic in making sure that the problem that they are currently facing does not occur again. The market is always changing. Kotler and Keller (2007) wrote, “…The marketplace will change; and when it does, the company will need to review and revise its implementation, programs, strategies, or even objectives.” (p 32) Organizations that stay ahead of the pack will lead. Summary Classic has begun their road to a marketing plan that will lead to success in the future. The customer value is the top priority for the company at this point. In order for the company to survive, the market plan has to be built on the value of the customer. Classic Airlines can begin to prosper again if they remember that the customer has value that could dramatically change the strategic plans for the company, and if they continue to listen to the feedback from the customer, they will have a loyal and lucrative future. References University of Phoenix (Ed.). Scenario: Classic Airlines [University of Phoenix Material]. Retrieved November 12, 2009, from University of Phoenix, MKT/571-Online Learning Source Website. Kotler, P., & Keller, K. (2007).A Framework for Marketing Management, Third Edition. New Jersey: Pearson Prentice Hall.