MKT/571
University of Phoenix
Classic Airlines Marketing Solution
September 13, 2010
Introduction
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
This report will be discussing strategic management to a company in the airline industry. This report will examine a chosen company’s strategic management and outline the stages. Strategic management is analyzing the situation facing the firm, also on the foundation of analysis formulating a strategy and lastly implementing strategy. Strategic management is the identification and the description of strategies that can be used by managers so as to attain better
Market players generally have a wide variety of potential customers, which considerably weakens buyer power. Although consumers in this industry may be loyal to particular brands or chains, loyalty to retailer brands is arguably less important than competitive pricing. Many supermarkets run rewards programs for frequent shoppers, such as Tesco’s ‘Clubcard’, and these schemes can help companies retain customers and reduce buyer power.
The airline business is an industry that is competitive and unique, focussing on consumer choice and the responsiveness of airlines to changes in the external business environment. For any airline, this environment can be very complex as it is ‘hard for them to fully understand and impossible for them to fully control’ (The Times, n.d. p1). Virgin Atlantic is an international airline that is based in the UK. It was started by the entrepreneur Richard Branson in 1982 and now flies to 30 destinations around the world (Virgin Atlantic Airways Ltd, 2011). By looking at
In a recent change within Staples Inc. they have begun to shut down 140 of its 330 stores located across North America under scoring the pressure that big box retailers feel from rival e-commerce and discount players. With the end of the plan resulting in 225 stores being closed down as a choice of Staples trying to reduce their square footage. Due to this change within the company Staples Inc. must take in to account what this change will do to their company’s infrastructures, price, services, and its reputation. An effect from this down size that Staples Inc. many weaknesses have arose within the company itself that should be taken into consideration before they become a major threat to the company.
During a meeting held to address the situation Johnson’s accountant Jim Thomas presented a compiled report on customers profitability and profit margin where customer service costs are allocated to customers as a percentage of revenue. This analysis brought Johnson to the conclusion that Saver Superstore is not a very profitable customer compared to other client retailers ,that it is one of their lowest-margin customers and he can’t consider lowering prices for them.
In Summary Robert’s Media’s is a publisher of an industry-leading upmarket fashion magazine, whose customer base is ‘affluent 45 to 54-year-old woman’. Currently, the business is struggling to succeed in its current market due to; the 2008 recession, competition from other magazines and a consumer movement from print to digital media. Due to this struggle the business currently has poor financial performance, which has led to a fall in the firm 's share price, thus there was a Board decision to appoint a new CEO, Harry Gardner who has experience in marketing for a national newspaper, magazines, and a subscription television channel. Harry has set a corporate aim to improve ROCE to at least 8% within two years. He also suggests a transformational change in strategy. This involves the migration of Roberts Media print titles to digital format and having a 20% mkt share, the repositioning of title content to appeal to different consumers and to stop and sell the printing works.
Founded back in 1914 in Victoria by George James Coles, Coles Supermarkets Australia Pty Ltd has undoubtedly developed and expanded over the century since its humble beginning. Starting out its early days as an average retail store, Coles has now successfully become a common name in households throughout Australia. In recent years since its acquisition by Wesfarmers back in 2007, it has now grown even more and in April 2012, the Coles group announced the substantial relaunch of its loyalty program called “flybuys” which was originally launched in 1994 as a joint venture with other companies. The article entitiled “Coles ups loyalty ante” is being reviewed and analyzed in this paper discusses about the revamped loyalty program offered by Coles,
|What sales volume will break even on Classic’s 2-year investment and what is the |
Launched just 8 years ago, today, the Jetstar Group consists of a network of value-based air carriers that deliver high quality air passenger services for budget-minded travelers across Australia, New Zealand and the Asia Pacific region. Beginning with just 400 employees, the company currently employs more than 7,000 people and carries about 20 million passengers a year. To gain some insights into how the Jetstar Group achieved this impressive growth in such a short amount of time, this paper provides a review of the relevant literature concerning the air passenger industry in general and the business strategy used by the Jetstar Group in particular. A summary of the research and recommendations for this company are provided in the paper's conclusion.
The airline industry has seen drastic changes since September 11, 2001. The government ordered a complete shutdown for three days of not only all commercial aircraft but such carriers as domestic flights and emergency aircraft. For days after September 11th, all aircraft stayed on the ground. Even military aircraft had to receive special clearance to fly. In a ripple effect, the entire economy of the United States and the world was put on hold. The New York Stock Exchange shut its doors because of the attacks on the towers of the World Trade Center.
In April 1992, American Airlines launched "Value Pricing" -- a radical simplification of the complex pricing structure that had evolved over more than a decade following deregulation of the U.S. domestic airline industry. American expected that the new pricing structure would benefit consumers and restore profitability to both American and the industry as a whole. The critical issue raised is: Would American's bold initiative work?
Airline companies are becoming more and more competitive as the low budget discount airlines are becoming popular. It is key for airlines to differentiate themselves among the various airlines to choose from, and United Airlines wanted to ensure that it offered products and services for all marketing segments. “United realized that it needed to develop a customer-centric future strategy and galvanize its organization to improve the customer experience for its most valued customers” (Prophet, 2012, para. 1). This paper discusses the marketing plan for the newly merged
The Airline industry has experienced continual problems with rising costs with both fuel and maintenance which has caused them to increase their fees to the consumers to pay for those rising costs. This paper will help explain what an airline such as Delta does to help alleviate such costs without forcing its consumers to flip the bill through high fees that consist of tickets, baggage fees and food. The costs of doing business in aviation today have spiraled out of control making it very expensive for both airlines and the
1) Introduction to airline industry 2) Drivers of globalisation using yip’s model 2.1 Market globalisation 2.2 Cost globalisation 2.3 Globalisation of government policies 2.4 Globalisation of competition 3) Localisation- arguments against globalisation 4) Pestle Analysis 5) Porter’s 5 forces analysis and their application to Airline industry 5.1 Rivalry amongst Existing Firms 5.2 Threat of substitution 5.3 Threat of new entrants 5.4 Power of customers 5.5 Power of buyers 6) Opportunities and Threats of Airline industry 7) Internal analysis of Virgin Airlines: Strengths and Weakness 8) Financial Statics of Virgin Atlantic Airline 9) Strategic Changes of Virgin
Classic Airlines needs to be vigilant and take smaller steps to ensure the changes taking place will hold true. At that time, Classic Airlines can be more assertive and aggressive with their endeavors to become the number one airline company.