Marketing Case Study: Classic Airlines Marketing Solution

Register to read the introduction… In the last 25 years, the company had grown into an organization of 32000 employees with multi-billion sales. [ (University of Phoenix, 2005) ] Due to the difficulties with increasing global competition, overexpansion within the organization, changes in customers spending, and increased concern with airline security; CA along with its competitors in the industry are dealing with issues of growing stress and reduced financial gain. Increased uncertainty had triggered a drop in stock price; thus CA has seen a 10% decrease in share price. To make the situation worse, the company had also shown 19% decrease in number of reward members and 21% decrease in flights per remaining member. (University of Phoenix, 2005) With rising cost especially in fuel and labor, CA is tight up financially in its ability to compete effectively in the market. Furthermore, the board of director mandated 15% cut in cost or the company will face …show more content…
In fact, Classic Airlines is struggling with a number of marketing challenges both internally within their corporate culture as well as with their external marketing portfolio. Some senior executives such as newly promoted CEO Amanda Miller believed in focusing organizational resources on operational excellence and financial stability thus gives less attention to marketing. As a result, the shift in priority had caused the firm more vulnerable in this critical time which consumers needs should be valued as most important of all others. Meanwhile, CA’s competitors are learning fast in continuing improvement in customer satisfaction to regain their market …show more content…
The goal is to have more comprehensive approach that goes beyond the traditional marketing strategies in order to deliver highest value to the customer. [ (Philip Kotler K. L., 2006) ] In the relationship marketing, the company can update and strengthen the CRM program to collect data required based on the goal to understand the need, wants and demand of the customers; as the same time, integrated marketing enable multiple marketing activities to communicate thus deliver value and maximize each activities’ joint effect. As a result, two objectives that can be achieved: lower the cost of marketing and implement a solid customer service solution to increase sales. [ (Philip Kotler K. L., 2006) ] Notably, internal marketing must be incorporated into the solution process which to ensure every stakeholders within the organization embrace and participate the marketing principle especially the senior management. “Holistic approaches to CRM help organization co-ordinate and effectively maintain the growth of disparate customer contact points or channels of communication.” [ (Bull, 2003) ] By placing CRM system as the heart of holistic marketing approach, new solution allows company undergoing transformation needed to emphasis on customer orientated business process with higher