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Classic Airlines

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Analyze the current situation at Classic Airlines.

Please point out the internal and external pressures contributing to Classic's current crisis, the objectives and obstacles of the marketing department, and the marketing resources available to resolve this crisis.

Please assist me with choosing a problem solving method to solve Classic Airline's marketing problem. You must identify and define the problem, and apply a robust problem-solving process. Involved in this problem solving process should be the development of SMART (specific, measureable, attainable, realistic and timely) goals for solving the problem and the benchmarking of potential marketing solutions utilized by other companies facing a similar situation.

Create a list of at least two potential marketing recommendations for Classic Airlines and provide justification for each marketing solution. Would you please provide references so I can go to these sites for further references.

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https://brainmass.com/business/marketing/classic-airlines-276021

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Classic Airlines faces several external and internal pressures. The external pressures are increased uncertainty about flying, concern in the investment community and the decrease in share prices, high fuel prices, the negative effects of the public on the morale of employees, declining confidence of the consumers, and fierce price cutting from competitors.

The internal pressures are, increasing cost of labor, low margins, poor employee morale, poor customer service management, loss of connection with customers, and high marketing budgets.

The objectives of the marketing department are to reconnect with the customers, improve customer loyalty, increase membership in Classic Rewards program, and improve the frequent flier program. In short the most important objective is to lure the customers back from the competitors.

The obstacles to achieving these objectives are that Classic Airlines cannot cut price further. It margins are stretched to the maximum. The CRM is not focused on the customers and is designed to drive the customers to the internet. The obstacle is that marketing expenses are to be reduced by 15 percent when the need is to increase marketing expenses.

The SMART or specific, measurable, attainable, realistic, and timely goals of the problem solving method are that the Classic Rewards program membership should increase by 20 percent, the overall revenues of Classic Airlines should increase by 20%, and the profits of Classic Airlines should increase by at least 15% during the period of next six month. Each of these goals is specific, measurable, attainable, realistic, and timely.
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