Classic Airlines Marketing Solution
Dr. Alan Mandel
May 04, 2012
Classic Airlines Marketing Solution
Good marketing is an important part of a successful business. Since marketing hugely affects our everyday way of living it is surrounded by everything we do, and see (Kotler & Keller). With many businesses aggressively working hard to stay in business, organizations have stepped up the types of services they offer their customers in order to stay aligned with their competitors. As stated by Kotler & Keller, ???Marketing is an art and science and there seems to be an on-going battle between both the formulated side, and creative side of marketing???. During this essay I will introduce, and explain steps that would help resolve the marketing process to Classic Airlines as well as provide justification for the marketing solution. The first steps is to a.) Identify the, and analyze the problem, b.) Generate all potential solutions, c.) Select and plans the solution, d.) Implement the solution, and evaluate the solution, and finally justification will be provided for the marketing solution for the company.
Identify and analyze Issues/Situation
Two major issues are impacting Classic Airlines marketing strategy. Customer assurance has seen a decline in numbers, as well as a decrease in the company??™s Rewards, program that has caused a major problem for the organization. Since both fuel, and labor cost has been rising due to economic factors, it has been complicated for Classic Airlines to stay competitive with other aircraft carriers therefore, with these issues at hand, CA is now seeing a 15% cost reduction across the board, within 18 months (University of Phoenix 2010). In order for these issues to be resolved, and turn them into opportunities CA will need to define how these issues will be handled by getting the best solutions. If CA could review all frequent flyer request for better customer service h may be able to gain the upper hand on all other competing air carriers and began to focus more directly on these customers only. Taking these steps would be a definite way to increase their customer profitability, and confidence levels and all of this could be done without having any additional cost affect the line with cost decreases. In order to maintain their current position in the market, Classic Airlines should implement new ways of creating customer confidence, and commitment while also improving their organizations profitability level. This step will allow the airline to be more financially established and obtain greater growth with ongoing opportunities.
Potential problem Solution
Know knowing that the organization suffers from several potential problems, a suggestion for a more sufficient CRM integration programing system that would allow better customer relations, and minimal creativity should be put in place. Innovative urgencies need to be established within the organization such as recognizing urgent customer needs, creating realistic benchmarks for locating the correct market segments, and concentrating on confirmed customer retaining methods for better leveraging on investor responses. Although Classic Airlines has been able to successfully increase the company??™s productivity by dodging high fuel cost, and reorganizing, the company is still fighting to keep high accolades by maintaining their image mostly recognized by their customer??™s standards.
Being able to identify all market segments, entails information from the most significant groups of customers requesting the services or products, and should be convoyed by the exact plans that pleases the consumers. The airline industry saw its??™ largest drop ever in 2009 on passenger returns due to a weakened economy that grounded many would-be travelers. The Air Transport Association of America stated ???that total passenger revenue for major U.S carriers fell 18% versus the year before, and this was by far the biggest drop ever, even exceeding the 14% decline in 2001??? (CNNMoney.com 2010). Since this is the case the commercial airline industry needs to make available to their customers services, and products that would address the budget limitations, and e-commerce proficiencies. Since on-line customer registration has been so successful for businesses, all airlines are implementing a new strategy for their transition by offering the e-ticketing services to customers. The benefits of offering such a service would be most beneficial to the customer, airlines, and the travel agents. The customers would mostly benefit from having an easier way of understanding itinerary revisions when printed from the internet, would be mostly important when last minutes travel changes arise due to circumstances out of the customers control, and customer would have better check-in capabilities by using the internet. The benefits that the Airlines would experience would be that 100% of e-ticketing saves the industry about $ 3 billion U.S. dollars per calendar year, retention of interline expenditures, and they would continue to have access to IATA distribution systems. Travel agents could cut the cost of ticket printers, and the maintenance required for the printers, and remove liability, and cost of the ticket stock control (IATA 2012).
Alternatives to the problem Solution
The effectiveness of benchmarking is an integral piece to the success of any organizations conversion. Some of Classic Airlines competitors have had the inability to distribute continuous increases from both their employees and customers. One of CA??™s competitors Continental Airline which has now merged with United Airlines has placed high emphasis on board their aircrafts by incorporating some of today??™s best cutting edge technology. They offer to their customer??™s satellite phone usage, most up to date audio and visual entertainment, and hot meals and snacks are provided on the flights. All of these services offered by Continental Airlines are supported through a company website that initiates communication on the importance of consumer constancy.
Southwest Airlines another competitor of Classic Airlines has still be able to increase their customer value along with profitability due to favorable customer loyalty. Because of the organizations distinct ability to offer their customers low fares, the average passenger trip length of travel totals 969 miles. Southwest Airlines has one of the lowest fares for one way domestic flights, and offers 644 non- stop round trip markets (southwest.com). Southwest Airlines paid out to their shareholders 138 quarterly dividends, and earned an astonishing 459 million dollars during the 2010 fiscal year. Achieving such a goal was recognized due to their organizations philosophy that placing established emphasis on being efficient in order to conquer the target market (southwest.com).
Implementation/Evaluation of the Results
With the planned implementation of the CRM Classic Airlines can only stay successful depending on how well upper management restructures the consumer voice within the system that now exist at the company. The organizations IT department will need to provide training classes to help employees earn a better understanding on how to re-configure the industry platform based on the company??™s overall success model that is in place. The biggest test of the implantation is being able to deal with change resistance, which must be presented during information assemblies that will be centered to communicate the association placed on marketing importance.
Upon planning a new approach that is going to help structure Classic Airlines long term goals, the management team will have to be sure that the CRM system is performing all task according to all stipulations. Other ways to show the importance of a project is to feature a control panel that will provide feedback from records on single component. By using this technique every employee will have the capabilities to access up to date data to make modifications on. The tally card should be obligated to uphold clarity in reference to the performance, consumer feedback, inside understanding, and complete stakeholder data. Upper management should discuss the purpose of the CRM, and improve on the development and obligation of performing in alignment with the company??™s goals. The goals set in place by the organization must be standardized to the design metrics to act as a replacement tool for goals already structured for the organization. Once the CRM system is implemented to record responses, the finance team must step in to show time stages, the different divisions, and the customer remaining worth.
Customers are the main ingredient for the success of a company, and the entire organization should be repeatedly reminded consistently. Keeping employees and customers involves lots of sustainability, as well as increased worth. It is crucial that management make rational changes and understand the magnitude of having a CRM to help keep the company aligned.
Kotler,P., Keller,K.L. (2006). Marketing Management (12th ed.), Upper Saddle River, NJ Person Prentice Hall, Inc.
100% Electronic Ticketing Fact Sheet IATA 2012 Retrieved from
http://www.iata.org/pressroom/facts_figures/fact_sheets on May 7, 2012
Ben Rooney (2010). 2009 airline revenue: Worst drop ever CNN Money retrieved from
http://money.cnn.com/2010/01/20/news/economy/air_traffic_2009 on May 7, 2012