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Classic Airlines Essay

676 words - 3 pages

Classic Airlines and Marketing
When a company facing a global downturn, it will try its best to survive and still make a profit. Classic Airlines has been struggling with many problems from both internal and external factors (University of Phoenix, 2011.) Gathering information from internal record and utilizing the marketing intelligence system should reveal the challenges that the Classic Airlines’ management team is facing. By conducting environmental scanning, the marketing managers should identify the areas for improvement.
Collecting Information
Collecting information is a challenging task that the decision-maker should understand that it is imperative to obtain all crucial ...view middle of the document...

High labor cost. Although Classic Airlines has no major issue with the union that represent majority of the company’s employees, the trade-off is the high operating cost that the company has to pay.
Marketing Intelligence Systems
This information comes from outside the organization. The manager can obtain this from any source that could come in any form such talking to informant, read journal/newspaper, or acquiring industrial reports/trends (Kotler & Keller, 2006.)
Rising fuel cost. Aircraft fuel is one of the major expenses in the airline industry. Fuel price in global market has increased sharply and fluctuated since September 2001 incident.
Price battle. This is also a consequent incident from the terrorist attack in 2001. To survive in a crisis, many companies have deployed many strategies to increase consumer’s demands. Ticket price reduction is one of them that reduced revenues while company is struggling with the increasing average cost.
Ineffective customer loyalty program. A long list of customer comments about the Classic Airlines frequent flyer program shows that many customers have seen no value of this loyalty program. Comparing to other airlines that have good...

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