Classic Airlines Marketing Solution
Classic Airlines Marketing Solution
Classic Airline, the world’s fifth largest airline is experiencing marketing problems which are causing the company to lose profit in various facets of the company (University of Phoenix, 2013). Having an understanding of the problems at hand, the company’s Senior Marketing Leadership team has been tasked to come up with a high resolve marketing plan that will help the company come out on top by maintaining satisfied Classic Rewards members, meet the board of directors cost reduction plan, and most importantly increase public trust to invest in company’s stock. Based on the team’s consensus the team has agreed to pursue an aggressive problem solving model that includes a nine-step process: 1) Describe the situation, 2) Frame the right problem, 3) Describe the end-state and goals, 4) Identify alternatives, 5) Evaluate alternatives, 6) Identify and assess risks, 7) Make the decision, 8) Develop and implement the solution, 9) Evaluate the results ( University of Phoenix, 2006).
Step 1- Describe the Situation
The first step in the nine-step process model is to describe the situation, and to provide an initial description of the issue opportunity. By describing the situation, it sets the tone to be able to define the “right” problem (University of Phoenix, 206, p. 3). With this said, the problem identified by the Marketing Leadership team is that Classic Airlines has seen a decline in its Rewards program measured at a “19 percent decrease in the number of Classic Reward membership, and 21 percent decrease in flights per remaining member” (University of Phoenix, 2013, para., 3). As a result, there are numbers of frequent flyers that are “jumping ship” to competitor programs offering greater value to the relationship. To add, the Classic Airlines has seen a “10% decrease in share price in the past year.” This has caused both consumer confidence, and employee morale to be on a downward trend (University of Phoenix, 2013, para. 3).
Classic Airline, the world’s fifth largest airline is experiencing marketing problems which are causing the company to lose profit in various facets of the company (University of Phoenix, 2013). Having an understanding of the problems at hand, the company’s Senior Marketing Leadership team has been tasked to come up with a high resolve marketing plan that will help the company come out on top by maintaining satisfied Classic Rewards members, meet the board of directors cost reduction plan, and most importantly increase public trust to invest in company’s stock. Based on the team’s consensus the team has agreed to pursue an aggressive problem solving model that includes a nine-step process: 1) Describe the situation, 2) Frame the right problem, 3) Describe the end-state and goals, 4) Identify alternatives, 5) Evaluate alternatives, 6) Identify and assess risks, 7) Make the decision, 8) Develop and implement the solution, 9) Evaluate the results ( University of Phoenix, 2006).
Step 1- Describe the Situation
The first step in the nine-step process model is to describe the situation, and to provide an initial description of the issue opportunity. By describing the situation, it sets the tone to be able to define the “right” problem (University of Phoenix, 206, p. 3). With this said, the problem identified by the Marketing Leadership team is that Classic Airlines has seen a decline in its Rewards program measured at a “19 percent decrease in the number of Classic Reward membership, and 21 percent decrease in flights per remaining member” (University of Phoenix, 2013, para., 3). As a result, there are numbers of frequent flyers that are “jumping ship” to competitor programs offering greater value to the relationship. To add, the Classic Airlines has seen a “10% decrease in share price in the past year.” This has caused both consumer confidence, and employee morale to be on a downward trend (University of Phoenix, 2013, para. 3).
References: Kotler, P., & Keller, K. L. (2006). Marketing Management (12th ed.). Retrieved from The University of Phoenix eBook Collection database. University of Phoenix. (2013). Classic Airlines Scenario. Retrieved from University of Phoenix, MKT 571 website. University of Phoenix. (2013). Classic Airlines Documents, Exhibit B. Retrieved from University of Phoenix, MKT 571 website. University of Phoenix. (2006). Problem Solving Based Scenarios: An Approach to Identify Opportunities to Create Value for the Business. Retrieved from University of Phoenix, MKT 571 website.