I am again asking for your guidance for another assignment. Please find attached requirements for my assignment, your assistance is greatly appreciated.
Thanks for choosing to work with me on your solution.
Below and attached are the answers (same answers in 2 different formats) to your questions on Classic Airlines. Remember that this is a study guide and to use it as such. You still need to put the paper in your own words. This means you can summarize, and paraphrase the information to fit your needs but I would advise that you do not turn it in word for word as your own work or you risk plagiarism. Good luck with your studies!
OTA # 105428
Marketing Plan for Classic Airlines -
You are the Director of Marketing for Classic Airlines. You've just been given the objective - "Come up with a marketing plan to help Classic Airlines fix our problems, stay out of bankruptcy, and significantly increase market share in our current marketplace."
The marketing plan should be 2500 - 3000 words and include the following information:
1. Executive Summary
In today's highly competitive global climate it is imperative for business leaders to implement sound marketing plans to help achieve vital business objectives for their companies. To be effective the marketing plan must begin with top management and be adopted by the entire organization. The successful marketing plan should take into account market conditions, the economy, the available internal resources, the changes which would be necessary to implement the plan, and the limitations. Such a plan will help the organization set clear goals and define clear paths toward achieving those goals.
There are several steps involved in the development of a well rounded marketing plan. This paper will discuss Classic Airlines, the world's fifth largest airline, describing the company's current situation, marketing strategy, financials and controls.
2. Situation Analysis
Classic Airlines is the world's fifth largest airline with a fleet of more 375 jets and serving 240 cities with more than 2300 flights daily. Classic Airlines has grown to an organization of 32,000 employees since starting operations. Classic Airline's customer loyalty is on the decline as evidenced by the 19% decrease in the number of Classic rewards members and 21% decrease in flights per remaining member as of January of 2005. The company is also facing a restrictive cost restructure due to overly optimistic expansion plans based on anticipated rebound of post 09/11 travel. Classic's Board of Directors recently mandated a 15% across-the-board cost reduction over the next 18 months. (Classic Airlines Scenario, 2007) Within the constraints of the mandate, Classic Airlines also needs to improve its frequent flier program with methods that will demonstrate a measurable return on investment while still meeting the cost reduction goal.
? Market Summary
Classics Airlines is the only carrier which does not have any alliance agreements, under the assumption that no partner can possibly understand or meet the needs of its customers better than itself. In addition, the carrier implemented a pricing strategy that put it in direct competition with newer airlines, which do not have the same cost structure as Classic, a decidedly advantage for the competition. The ability of Classic to accurately predict changing market and consumer trends will enable the carrier to augment marketing campaigns, adjust budgets, and reallocate resources to take advantage of prevailing trends or conduct informational and promotional marketing during the off peak seasons. The more data that Classic can collect from all sources, but especially existing customer, the more accurately the carrier can predict and meet changing or unmet needs. Therefore the methodology used and the operational philosophy of Classic needs to be aligned with such a strategy.
? SWOT Analysis
? World's fifth largest airline
? Sustained profits despite numerous issues
? Aware of its issues and actively attempting to implement
? Only carrier with no alliance agreements
? Pricing strategy not aligned with cost structure
? Customer loyalty is on the decline
? Low employee morale
? Meet changing or unmet needs of customers through
better market research
? Improve forecasting through using fresh data from
? Can add shareholder value through becoming customer-
? Opportunity to create an alliance with other airlines
? Opportunity to change culture
? New competitor airlines with more efficient cost structure
? Declining stock price
? Rising cost of fuel
? Rising labor costs
? Unpredictable events such as terror attacks
Classic Airlines has numerous competitors including Southwest Airlines, Delta, American Airlines, and Jet Blue. While Delta and American are larger carriers with more diverse fleets, they have not been able to maintain profitability while Southwest is still realizing gains. . Southwest Airlines is currently the United States' most successful low-fare, high frequency, point-to-point carrier. Southwest now flies to 62 cities in 32 states. Jet Blue, a smaller low cost carrier has made quite a headway into the market and has had measurable success. Each competitor possesses strengths and weaknesses, which Southwest must take into consideration when ...
This is a comprehensive marketing plan for a fictitious company called Classic Airlines including: Executive Summary, Situation Analysis, Marketing Strategy, and Financials.