CLASSIC AIRLINES

Classic Airlines

Classic Airlines

Introduction

Classic airline ranked at number Fifth among the world's largest airlines. The company own 375jets that travels around 240 cities in the world. It has 2,300 daily flight operations around the world. The organization has around 32000 employees, and it established for 25 years. The organization enjoys gross profit of $10 million per year. The paper will discuss the marketing concepts of Classic Airline. The below paper will be discussing the problem solving model of Classic airlines which consists of 1) describing the situation 2) Framing the right problem 3) Describing and stating the goals 4) Identifying and assessing risks 5) Evaluate alternatives 6) Identify alternatives 7) Make the decision 8) Develop and implement the solution 9) Evaluate the result (Kotler, 2000).

Describe the situation

The most challenging thing for Classic airlines is their rising and overexpansion costs. The firm owes a noteworthy change with an estimated 32000 employees, 20% decrease in flights, 20% flight cancellation and 19% decrease in reward members. All of these issues has done a dramatic impact on the overall position of the company and has also declined its share price of stocks (10% decreases). Classic Airlines (CA) is currently faced with the challenge of delivering increased value within leaner consumer budgets. Another critical time was observed which has worsen the situation of Classic airlines was the retirement of Jack Broadway (former CEO) and the appointment of a new CEO, Amanda Miller. The current CEO believes that the operational Excellencies should be top most priority. These believe has led down the company to an extremely down level. This was because, the customer valuation and satisfaction along with the competitor's improvement were complete ignored by the management of Classic Airlines (Christopher, 2003).

Frame the right problem

The primary reason that CA has experienced difficulty is that efficiency emphasis overshadowed the strategic thinking. “Services need to ensure that employees have the attitude, skills, and commitment needed to meet customer expectations and sustain customer loyalty” (Karin et al., 2006). Employees must be charged with the responsibility of maintaining a vision that lives through a combination of strategy and efficiency. In addition, realistic marketing strategy should delight stakeholders, and exhibit qualities of sustainability and marketability (Coyles, 2005).

Describe and state the goals

The main objective of Classic airline is to successfully implement a solution plan for the company which is known as the new classic rewards program. The effect of this new program would not only succeed in increasing sales and customer satisfaction but also it will enhance the overall status and image of Classic airlines in the whole airline industry. The management of classic airlines believes and has a vision that this new program implementation will result in higher profit for the company and it is also anticipated that this program will make the Classic Airlines as the number one leader in the airline industry (Kotler, 2005).

Identify and assess risks

As the industry changes, the company will be challenged by trade off choices that do not add ...