Preview

Classic Airlines Marketing Solution-Mkt 571

Powerful Essays
Open Document
Open Document
1586 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Classic Airlines Marketing Solution-Mkt 571
Classic Airlines Marketing Solution WK 3 MKT 571 University of Phoenix Abstract Presently Classic Airlines is one of the largest airline carriers in the world. Last year the company had a net income of $10 million dollars on operating revenues of $8.7 billion. The year before the company had a net income of $71 million on 8.5 billion of operating revenues (Classic Airline Scenario, 2010). The net income has decreased $61 million in one year. One of the reasons for the huge decrease in net profit is because of marketing strategies. The company needs to take three stepsto turn the company around. First it needs to analyze the internal and external pressures that has created the present crisis. Second it needs to formulate a problem-solving method, and third it needs to apply the problem-solving method to the current crisis. Analyze current situation {draw:frame} Rising costs, particularly of fuel and labor, have limited Classic Airlines to compete for the valued frequent fliers (Classic Airline Scenario, 2010). To protect the company from possible bankruptcy, a 15% cost reduction has been implementedover the next 18 months. Each department will have cuts, with marketing hardest hit at 21.5% reduction versus sales and operations at 11.5% (Classic Airline Scenario, 2010). The following shows the cost reduction goals by department (Classic Airline Scenario, 2010). To make sure Classic Airlines does not go into bankruptcy, the marking department needs to focus on three issues. First, the internal and external pressures causing the decrease in net income needs to be identified. A plan to decrease or eliminate the identified internal and external pressures needs to be formulated. Second, the challenges of the marketing department needs to be solved. The third and final step is to formulate financial strategies by examining possible available resources and other airline 's marketing solutions. Internal and external pressures Classic Airlines is


References: Classic Airline Scenario, 2010. _University of Phoenix materials-Classic Airlines Exhibit B. _ (2010_). _ Retrieved on March 22, 2010 from University of Phoenix, Resource, MKT/571- Marketing Web site: https://ecampus.phoenix.edu/classroom/ic/classroom.aspx. Classic Airline Scenario, 2010. _University of Phoenix materials-Classic Scenario: Classic _ Airlines.(2010_). _ Retrieved on March 22, 2010 from University of Phoenix, Resource, MKT/571- Marketing Web site: https://ecampus.phoenix.edu/classroom/ic/classroom.aspx. Haughey, D. (2010). Smart Goals. Projectsmart. Retrieved March 23, 2010, from: http://www.projectsmart.co.uk/smart-goals.html Kotler, P. Keller, K. A framework for marketing management, 3rde. (2007). Prentice Hall. Retrieved on March 23,2010 from University of Phoenix, Resource, MKT/571-Marketing Web site: https://ecampus.phoenix.edu/classroom/ic/classroom.aspx. Problem-Solving Model, 2010. BPI consulting. Retrieved on March 24, 2010 from: http://www.spcforexcel.com/problem-solving-model

You May Also Find These Documents Helpful

  • Powerful Essays

    The question can be is. How has the economy of the airline industry performed throughout the many decades it has been? In addition, what did the industry do as it has gone through many events that have challenged its survival? In this type of industry, we can say that it has seen their share of success in profits but has seen its share of overwhelming down trends. You can definitely consider there is this industry depends on the economy around it and solely affected by it too. The airline industry has seen highs when the demand for their services was increased and the decreases when events had a major impact on their survival of the industry. While there are obvious externalities that affect the outcome of this industry, there is more to it. Monetary and fiscal policies affect the industry. Along with everything that has affects this industry, there is a noticeable wage inequality that has intensified.…

    • 2884 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    The purpose of this paper is to review the marketing issues identified in a fictional Airline called Classic Airlines. I was presented with a scenario in which I will attempt to identify several things about the company and its situation as presented in the scenario. I will first discuss the nature of the product that Classic is offering. Next I will analyze the types of challenges the company is facing and discuss the corporate culture within the company. Last I will attempt to apply some market concepts to the presented scenario that I believe may improve the situation for the airline.…

    • 662 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Mkt 571 Week 1

    • 528 Words
    • 3 Pages

    Classic Airlines is currently one of the top airline industries but have faced trying times and a decline in revenue and passenger activity. The company has a rewards program in place but obviously with a decrease in passengers the rewards program is not bringing in the type of profit anticipated. By using a macro-environmental change, a marketing research program, and developing a marketing plan the airline should be able to revamp the current rewards program to fit the current economic conditions and market the program to the public in such a way that the plan increases passenger activity and revenue for the airline and the rewards program.…

    • 528 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Mkt 571 Week 3

    • 2520 Words
    • 11 Pages

    University of Phoenix (B). (2012). Classic Airlines Documents. Retrieved from the University of Phoenix MKT 571 Marketing E-Resource Link.…

    • 2520 Words
    • 11 Pages
    Best Essays
  • Powerful Essays

    This internal business analysis is on Southwest Airlines, which was founded in 1967 by Rollin King and Herb Kelleher. The main focus for Southwest Airlines was to provide low cost flights for their customers, and also have exceptional customer satisfaction. Southwest is a leading airline company that continues to do well in an industry that has been historically challenging. For instance, in the span of two years (2005-2007) five major airlines have filed for bankruptcy. The challenges are great in the airline industry, because competitors are trying to imitate the “low-cost” offering of Southwest. Many companies have tried to do what Southwest has done, and many have failed to stay in business. Surprisingly, many of those companies were started by ex-employees of Southwest. Southwest currently has a profitability record for the past thirty six years, which is spectacular in such a challenging industry. Herb Kelleher has been replaced by Gary C. Kelly, as the president when he resigned in May of 2008. Southwest is in the process of expanding the locations they serve so that they can increase market share, and also find ways to cut costs without losing their quality. In order for southwest to continue their consecutive financial success there is a necessity for excellence in the execution process of their strategy.…

    • 1766 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Southwest Airlines

    • 3048 Words
    • 13 Pages

    This is the historic background of an American Airline company called the Southwest Airlines Co. based in Dallas which still exists and operates with great success between 57 cities in 26 states of the US, by over 300 airplanes , providing primarily short-haul, high frequency, point to point, low fare service . Through this essay we will see an analysis of the company 's advantages and disadvantages through a SWOT Analysis. We will try to localize the problems of the company at the time and in the case of a future expansion, and we will try to give a number of alternative solutions and chose one of them. The Southwest Airlines is a company that has done its first movements in the airline world in 1971 after many efforts for its opening through legal battles with competitors that did not believe that there was any particular reason why the another airline company should exist among all the others already existing. The different things that the new airline company provided were many and very interesting. The idea started from two friends Rolling King, and investment advisor, and Herb Kelleher, his lawyer, who met in order to discuss the idea of Rolling King for a low-fare, no- frills airline to fly between three major cities in Texas. The outcome of this discussion was in reality the decision of the two men to go for something that they believed would work, even though they were not positive about that. After all the legal battles between the two men and the airline companies of Texas at the time who believed it was not necessary for another airline company to enter the market, battles that prevented the operation of the company for three whole years, Southwest Airlines Co. had become a reality. Other legal battles followed in the future that justified the Southwest Airlines but left the company broke, while during the first year of its operations made losses and the earnings for the next half a year were balancing with costs. Gladly the recovery came soon and by…

    • 3048 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    In this assignment I was assigned the task of comparing 2 different airlines, one being a full service carrier and the other being a lost cost carrier, from United States of America, namely the Delta Airlines and South West Airlines. The points of comparison were market strategies, financial benefits, load factors, contrasting yield, revenues and passenger/cargo loads. The analysis was done on the business model and a long term strategy. Through this it would be known that which airline is performing better than the other. The disruption of air travel through various incidents like the terrorist attacks and global downturn, which can be considered as economic, political and social conditions, effect airlines adversely. References like books and online resources were used in finding the information required in how the airlines would perform in the future and how the business model has worked for them over the last few years.…

    • 4166 Words
    • 17 Pages
    Powerful Essays
  • Powerful Essays

    International Airlines Group like many businesses in the current economic climate has seen a dramatic change in the way they have to do business due to several social factors. The most prominent of the social factors is the alteration in consumer buying habits due to the recession, as many people have a lower amount of expendable income due to the rise in cost of living prices such as food and energy bills combined with lower wages and high level of unemployment. The reason that this makes this social factor the most severe for IAG is that while most businesses have to deal with this change a large part of the British Airways customer base is that of business clients. Therefore due to businesses looking to cut costs to help with lower revenues many are no longer willing to pay for employees to travel first class and turn to the budget airlines. For example BA released a statement to investors regarding the future of the business ‘What we have been living through in the last two years is the deepest downturn this industry has ever faced. The International Air Transport Association (IATA) is forecasting revenues for the industry as a whole will fall by 15 per cent’ (British airways, Q1, 2010).…

    • 2054 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    Taneja, N., (2008) Simpli-flying, optimizing the airline business model. Retreived 05 May 2012 from www.airlineinformation.org…

    • 1661 Words
    • 7 Pages
    Best Essays
  • Satisfactory Essays

    Classic Airlines in an airline company that has been in business for over 25 years and has gained great success within the airline industry. In the 25 years since its creation the company has grown to over 32,000 employees and has generated 10 billion dollars worth of business. Although the company has seen great success, it also is subjected to the many challenges that other airlines companies face in today’s market. Classic airlines must be able to market its product so that customers will pick there product over competitors within the industry (University of Phoenix, 2012).…

    • 545 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    This paper will use a problem solving model to solve Classic Airline’s marketing problem. The company is suffering within the airline industry due to several factors, a couple being the massive increase of costs for fuel and labor. The resolution in conquering the airlines dilemma will be addressed in a comprehensive nine-step problem solving model. This model will include Defining the Problem, Gathering Facts, Feelings, and Opinion, Identifying the Real Problem, Generate Possible Solutions, Generate Possible Solutions, Evaluate Alternatives, Select Best Alternatives, Gain Approval and Support, Implement Decision and Evaluate Results. The factors of this difficulty in the marketing of this company will be identified, analyzed, followed by a robust decision on the strategy to resolve Classic Airlines’ crisis.…

    • 2479 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Presently, the company is facing a niche competition after the introduction of many new low-cost airline companies in the already saturated market and to keep itself ahead of the competition, Lucky Air needs to revisit its business strategy and come up with a plan of action that would help in its progress. This task is unduly challenging as it faces many competitors and any error or lapse of judgement may adversely affect the future of the company.…

    • 1678 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Driver J. (1999) Developments in Airline Marketing Practice, Journal of Marketing Practice: Applied Marketing Science, Vol. 5 Issue 5, pp. 134-150;…

    • 4787 Words
    • 20 Pages
    Powerful Essays
  • Best Essays

    Classics Airlines needs to market their airlines better to obtain and maintain customers. The airline has already made adjustments to their pricing strategy so that it may align with other airlines to allow them to be more competitive. The airline must also enhance their capability to analyze, and predict market trends with the use of customer data so the airline may change or offset the budgets, marketing, and resources so the company can align to such changes. Classic Airlines will need to obtain as much data about the company as well as feedback from the customers to make appropriate changes that will benefit the company.…

    • 3024 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    Airline Industry General Environmental Analysis The airline industry is very stable and unlikely to change in the near future. There are many reasons for this. Air travel continues to grow and will continue in this fashion as long as the economy stays in an upward trend. US domestic air traffic grew 2.3% in 1999 and 3.5% in the first six months of 2000 according to Air Transportation Association. The percentage of flyers has increased an average of 2% each year and the percentage of people who have ever flown before increased from 73% in 1993 to 81% in 1997. (Airport Transport Association, Internet). The top three reasons that people fly are business trips (47%), visiting relatives (38%) and going on vacation (13%). Most airline revenues are gained from the fares they charge these passengers, but they also earn ancillary revenues from transporting mail, shipping freight, selling in-flight services and from serving alcoholic beverages (Airport Transportation Association, Internet). The primary target market of airline passengers today is the business traveler because business trips account for the majority (47%) of airline flights. Airline industry has been subject of intense price competition since it was deregulated, and the result has been a number of new carriers which specialize in regional service and no-frills operations. These carriers typically purchase older aircraft and often operate outside the industry-wide computerized reservations system. In exchange for these inconveniences, passengers receive low fares relative to the industry as a whole. This research examines two low fare air carriers, ValuJet and Southwest Airlines. By investigating these air carriers, we can better understand the economic impacts of price…

    • 2848 Words
    • 12 Pages
    Powerful Essays