Classic Airlines Marketing Solution Analysis Essay

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University of Phoenix
Classic Airlines Marketing Solution
September 13, 2010

Classic Airlines is established in over 240 cities, employs over 32,000 people, and is the world’s fifth largest airline with a fleet of over 375 jets. Last year, it yielded over $8.7 billion in sales. However, Classic is currently faced with many challenges derived from internal and external factors. This paper will identify and apply a problem solving process to Classic’s current crisis. It will also include consideration of the internal and external pressures contributing to Classic’s current crisis, objectives and obstacles of the marketing department, and the marketing resources available to help cure this crisis.
Problem Statement
Classic is losing customers to the competition due to rising fuel and labor costs, unsatisfied customers, and is at risk for bankruptcy. The number of Classic Rewards members has decreased by 19%. Loyal customers are leaving the company and frequent fliers have decreased. Customers feel that Classic does not understand them.
Definition of Problem
Classic is under intense scrutiny from its stakeholders. They have been closely screening Classic’s performance and its bottom line. Because of a loss in rewards members and sales the share prices for Classic are steadily losing value. Furthermore, Classic has neglected to make customer satisfaction a priority. Classic needs to address and meet the needs of their customers or else they will

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