Classic Airlines Scenario
Classic Airlines is the fifth largest airlines in the world with over $10 million in earnings and having over 375 jets worldwide (UOP, 2011). Even though the airlines have been rather triumphant with its business plan, current circumstances have drawn concern to a financial deficit within the organization. There has been an increased ambiguity in reference to flying; inferior stock prices/pricing; low than normal employee enthusiasm; an ineffectual concern in customer certainty; ever-rising prices in fuel cost; and slight increase labor expenditure. In efforts to raise profits and exhibit growth, Classic Airlines frequent flyer plan is being enhanced by the management staff to minimize the cost even further to the consumer. The objective, that will been explained within this paper, are demonstrations of basic marketing theories and how these theories should help the Classic Airlines organization advance its marketing practices to present and prospective consumers.
Marking is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (Kottler & Keller, 2006, p. 6). In efforts to maintain profitability, Classic Airlines must be capable of marketing and maintaining the frequent flier plan that is offered to the consumer and is a measure dependent on increase in market shares.
An organization capable of discovering the processes that are most important to the consumer and market shares influentially has the greater possibility of success in the ever-changing market of the airline industry.
The Classic Airlines marketing firm must recognize the consumer’s values intrinsically and extrinsically. Management must analyze: what is missing from the current frequent flier program; what it is the customer really wants from the program; and how much the customer will pay for...