Classic Airlines and Marketing Solution
Your Name Here
December 12, 2012
Instructor Stuart Ringer
The standard method for solving a problem primarily will involve defining the problem, understanding the problem in relation to the current developments, and assessing what in fact needs to change. In the case of Classic Airlines, budget restrictions, decreased sales, low employee morale, diminished customer satisfaction, and the need to cut costs are the issues that plague the organization. According to the University of Phoenix (2012), Classic Airlines has experienced a decrease in stock prices due to limited consumer assurance, rising costs of labor and fuel. ...view middle of the document...
The present changing global economy creates a challenge to improve the growth of an entity and remain competitive during a crisis. Therefore, these challenges have resulted in a 15% cost reduction mandate by the board of directors within an 18 month period. A new strategic marketing plan is needed to align a focal point on the thinking processes of the organization as a whole. Ultimately, the optimal solution will increase stakeholder value and ensure that Classic Airlines maintains a sustainable competitive advantage in the airline industry.
The “Right” Problem
After analyzing and understanding the issues, opportunities, and stakeholder perspectives, consumer satisfaction is the key to productivity for the purpose of influencing repurchase behaviors. According to Cacioppo, a five percent increase in consumer loyalty can increase profits by 25% - 85%. Defining and understanding customer satisfaction can help the organization identify opportunities for product and service innovation. Classic Airlines has been successful at increasing efficiency by hedging fuel costs and restructuring, but has failed to prioritize customer focused values that in turn has caused the company to struggle. Classic Airlines has not been able to meet the expectations of its customers with regard to the customer relationship management such as ease of booking flights, the option to talk to a live customer service agent instead of going online, setting itself apart from the competition with outstanding customer service, and making its most valuable and frequent customers return to Classic Airlines. The customers simply want better service and Classic Airlines needs to understand the key drivers of customer value. New priorities need to be developed such as highlighting important consumer needs, establishing realistic criteria for finding market segments, sighting value drivers, and concentrate on proven customer retention approaches.
Classic Airlines is desperately in need of rebuilding consumer relations. In order to accomplish this, the customer should be at the core of the business to help determine consumer requirements. The organization already owns an advanced Customer Relationship Management (CRM) system, and they have the opportunity to reform a more incorporated and vital system using the accessible tools to its full benefit. The organization could incorporate the CRM system across the phone lines and website to acquire more information from the consumers to help develop the customer experience. The CRM system could also help to communicate with customers and increase loyalty. The new and improved software should help to build profiles on each customer in order to help build those personal relationships.
The End-State Goals
Becoming the leading airlines provider is the principle end-state vision for the company. This vision can easily be achieved if the data that the CRM system produces is used in making positive...