Classic Airlines: marketing strategies and financial stability concerns

Classic Airlines Marketing

Marketing: Classic Airlines

Classic Airlines has been in business for more than twenty-five years. The company is considered the fifth largest throughout the world, and brings in millions of dollars in yearly earnings. They provide 2,300 flights each day, on over 375 planes. Even though the company has seen a good measure of success, there are still concerns. Primarily, the concern is how stable the company is from a financial standpoint. There are challenges that the company is facing, and most of them are relatively common to a large number of airlines. Among those challenges are the uncertainty that people have about flying, low morale in the workforce, a lower membership in the company's reward program, and instability in company stock. Additionally, the company is also facing challenges with fuel and labor costs, as both keep rising. The goal is to lower the company's costs by 15% in 18 months, which is clearly putting a great deal of pressure on the company's management.

The management team is stressed and worried about the issues the company faces, and there is a clear understanding that stable ground is necessary. For one thing, the rewards program needs improvement. Not all rewards programs are deemed to be a good idea for companies, and they can end up actually turning customers off and driving them away (Furinto, Pawitra, & Balqiah, 2009). Marketing the rewards program (or anything else) to consumers is very important to the success of a company, and airlines are no exception to that rule. In order to market successfully, the company must show customers and potential customers that they have what they want and need (Furinto, Pawitra, & Balqiah, 2009). If there is no demand for the service, and the company cannot show the value in their service, nothing else will matter to the company - and nothing else will work to bring in revenue. Marketing ties in with the product, selling, holistic needs, and production (Kotler & Keller, 2007). When the needs of the consumer can be met, almost everything else can be adjusted or corrected.

For Classic Airlines, the goal is to discover what is missing when it comes to the rewards program. Once the airline can figure out what the consumer is looking for and for what price, changes can be made. Market research is the best way to get answers to the questions the company will have regarding the rewards program and any other concerns it has. The company must stay above what is called the "breakpoint" when it comes to satisfying its customers (Kotler & Keller, 2007). That "breakpoint" is the line between dissatisfaction and happiness, and all customers have it. In addition to considering its customers, though, Classic Airline has to remain aware of what competitors are doing. By setting benchmarks and keeping one eye on the competition, any company can see more success because that company can provide a marketing mix and a product mix that are more to the liking of the customers (Kotler & Keller, 2007; Furinto, Pawitra, & Balqiah, 2009). Management must become aware of this and acknowledge that making changes will cost money but will be well worth it in the long run, as the company's bottom line improves.