Classic Airlines Marketing Solution Essay Example | Topics and Well Written Essays - 1500 words

Classic Airlines Marketing Solution - Essay Example This is irrespective of a manager’s educational background or their intellectual abilities as problem solving is a nurtured skill. Problems are a part of a business’s routine that helps it to grow. For instance, the objective of this paper will be to solve classic airlines marketing problem using the nine-step model by identifying and defining the problem. Additionally, it will tackle the objectives and obstacles available in the solving of the marketing problem of the airlines marketing department. Issues identification within Classic Airlines Classic airline is the world fifth largest airline with three hundred and seventy five jets in its stable. It has over two hundred and forty flight destinations with at least two--thousand three hundred flights in a day. Its existence is over twenty-five years, which has seen the company grow to having a total number of thirty two thousand employees. Its average turnover per year is between ten million and nine billion. Like any other business structure, Classic Airlines has had its part of challenges. The company witnessed intense plummet of its share price in the stock market because of flying uncertainties. In addition, the negative publicity exhibited by the public, the media and the Wall Street market have gravely affected employee morale hence affecting their overall performance. Problem statement In effect, the consumer confidence on the airline dwindled as the Classic customer reward program membership decreased by an alarming number. The number of flying times that the remaining Classic loyal customers reduced significantly over a short period. Some of the customers jumped ship to access services from the airlines competitors. Moreover, Classic Airline’s inability to meet the rising fuel and labor costs have made the airline unable to compete in a well represented market. In a counter approach move, the airline’s board of directors suggested a cost reduction measure for a period range of one and half years. Under the set period, Classic airline would be able to beef up its frequent flier programs that should bring a significant return on investment. SWOT analysis for the company Strengths Weaknesses Opportunities Threats Long time existence in the market Regular flight delays Investing on the changing customer needs Fierce competition from other players within the travel industry Internationally recognized brand The number of seats that a customer has to have for them to redeem their flier miles The recovery of the travelling industry Fluctuating global currency rates Customer loyalty to frequent flier programs Carelessness of staff leading to loss of client luggage The airlines’ good reputation with the labor unions High fuel and equipment costs Effective implementation of cost reduction measures Poor inter client and staff relationship Venturing in to new destinations both internationally and locally Sanctions imposed by the European Union on carbon emi ssions and the environment Good relations with its employees Reliance to old forms of travelling techniques Steps in problem solving for Classic Airline’s marketing problem Short-term issues Classic Airlines’ service product Ideally, the greatest, selling point of a product or service is the service product itself. In essence, a service is the act of approaching a need or want in an intangible manner where no one claims ownership.