Classic Airlines Marketing Solution
Strategies and solutions in marketing are two most important areas in the marketing and success of any business in the market.
A company’s marketing strategy process is approached through the process whereby any company allocates its marketing mix resources in order to arrive at its indented markets. The strategic marketing process helps in the development of a company’s general marketing plan, which is the marketing, activities of a company reflecting into a specified period in future (Fifield & Marketing, 1998). A company’s good marketing plan is a key to the company’s primary functions, which includes demand forecasting, sales initiatives, supply chain management, strategies in finance as well as good customer services programs. Classic airlines are ranked as one of the top most airline companies, but currently the company has undergone as well faced a number of problems affecting its marketing strategy or solutions. Some of these include, trying times in revenue decline, and a reduced passenger activities. Its efforts to attract more and retain the existing customers through diverse programs have not been an easy task.
Such programs used are reward programs also commonly found among other industries offering same products and services. It is clear that despite the fact that the company is using reward programs, with a problem of decreasing passengers they are not able to reach the anticipated profits. The company can try to have a change in its macro environment through introduction of a marketing research program and development of a marketing plan (Cohen, 1995). The airline can later try to reintroduce the existing rewards program as a way of fitting the existing economic conditions. This is a positive move, as it will enable the company market the program to the public in such a way that an increase in passager activities as well as revenue will be increased in the airline and the whole company.
Another challenge facing the company is on its increased need in the coordination of all process; programs as well as functions of meeting the goal where it wishes to make customers the primary focus in all the company’s efforts. It is clear that the company’s management is aware that it costs less to hold or retain the existing customers than acquiring new ones. In the recent years, the Airline industry has been growing rapidly and as a result, the Classic Airlines has faced a brazen out in delivering value boost contained by learner consumer budgets. According to a research conducted by plunkett research, it is clear that there is a decrease in travel industry expenditure and the e-commerce is gradually replacing many jobs. As a result, Classic Airlines is aimed at using it as a pivot point and as an opportunity in leveraging these proven techniques in the process of improving the existing CRM system. This strategy will also help the company introduce a transparent planning process in the increase of customer loyalty, which is becoming extinct.
The greatest problem, which is currently facing the Classic airlines, is a great reduction in its customers. It is clear that there is a stiff competition caused by rising fuel cost as well as labor costs, lack of customer satisfaction, and there are signs of the company’s bankruptcy. These are the contributing factors to the classic airlines current crises. There has been a 19% decrease in the Classic members rewards forcing the loyal customers that the customers leave the company out of a perception that the company ignores their complains. It is also clear that those flayers that used to fly frequently have stopped.
As a result, the company has found its self under a very intense inspection as well as critics from its shareholders and stakeholders. They have kept a close watch on the company’s performance and the bottom line numbers (DeLoach, James. 2004). A loss in members rewards and sales leads into the company’s share prices lose their value steadily. The company has also ignored its obligation of making customers satisfaction as a priority.
The company needs to address the issue of customer dissatisfaction otherwise; they will continue to lose their market in the industry. The company instead has made operational excellence as their priority what has left the company vulnerable in a moment when consumers needs to be highly valued giving its competitors a chance to learn more on continued improvement. The other problem facing the Classic Airlines marketing department is on the company’s stakeholders. The way stakeholders are aligned is an important marketing plan and execution. In every level in business, there exist tradeoffs, which should be balanced according to the customers needs.
Therefore, it is important for the company to connect not only with consumers, but also with all stakeholders in the business because they feel the effects of the company’s performance both negative and positive. Clasic Airlines management should be in the frontline in maintaining a high level of efficiency although this has worsened due to poor market responses. The company’s employees need to be encouraged clearly in order to understand the consumers who will eventually help in shaping their target market. Development of a clear communication network among all stakeholders will be a crucial part of reforms in the CRM system, which will, closes the stakeholder existing communication gap. Classic airlines have been battling with CRM systems, which are infective, a situation which has dragged the company in the ditch of reduced yields from consumers. There is lack of CRM integration, data mining process that is rudderless and customer relations that are unclear.
The company needs to come up with new priorities such as underlining consumer needs, coming up with clear criteria on how to find market segments, and focus on the proven ways of customer retention and taking stakeholder’s feedback seriously (Bull, Christopher. 2003). Classical Airlines has been able to deal with hedging fuel cost through an increased efficiency there still lack of consumer value focus.CRM programs were introduced in the company with a high hope of capturing the customers complains, but the programs have recorded just a decline.The marketing department requires a lot of knowledge in the process of indentifying market segments of customers where company’s services demand is high. After the market strategy identification there should be a laid down strategy that would help in satisfying the customers fully.
According to a research conducted, it has shown that there is a reduction in airline industry revenues. Commercial airlines need to offer into the market products and services that are able to address the issue of budget restrictions as well as capabilities in e- commerce. Online registration has become successful and popular and as a result, all airlines are planning to translate into e-ticketing services. These strategies are causing conflicts in the most firms. Therefore, the marketing department needs to come up with ways of reapplying them.
This is a positive solution, because it will enable in the combat of the Classical airlines employee turnover and their morale fluctuations (Senge, 1990). The market department instead on focusing on research and development it should try to discover primary consumer needs. Climates within a company keep on changing in the current global market economy and it is easy to identify links that provides it with immediate data on consumer needs. This method is cost effective compared to the billions wasted in market research, which in the end fails to solve or eliminate the cause of product failure. Therefore, it is the duty of the classical airlines company-marketing department to pass the knowledge of customer satisfaction to all stakeholders. The former Classical airlines CRM system focused on the efficiency, which led into a decrease in stock prices, thus the company is facing so much trouble while trying to increase value in other areas.
The company has been using CRM program although their functionality has been decreasing as it focused more onto efficiency and leading to a fall in stock prices. The target consumer should be the leveraging area of the marketing department and increase in efficiency should not be based on stakeholders’ contentment. Introduction of new CRM system will be an averaging on Classical Airlines employees. There are huge opportunities within the company once the management takes up the leadership role through introduction of governing techniques that are transparent (Pyzdek, 2003 ). A transformation within the organization whose its impacts are felt by the marketing department will be achieved easily.
Classical airlines is experiencing a hard time in understanding how an enterprise can function as an own entity, the company improvement plan should incorporate all stakeholders in the company. Once there is power shift within a company’s both suppliers and consumers raises an alteration in the competitive advantage among the innovative companies. Although it is a risky approach in the transition process towards use of new technology Classical airlines should develop a model that is proactive and addressing the challenges and trends revealed by consumer enquiries. Internet technologies have an impact on the airline industry whereby they are replacing the traditional platforms and the internal process is changing as well. Classical airlines in such a case are required to restructure their internal CRM system to that which is in line with the customers’ needs. Success and a solution into the company’s market problems depending on how well the marketing department addresses the right areas in a consistent way.
The company has enough ressources and it needs to come up with well-strategized marketing models that change over time. The company should also ensure that it provides communication link to the internal decision makers on the required adjustments to make. The company can also come up with a wide risk management that enterprise based. As a result, Classical airlines will be able resolve problems in marketing which lies under, ignorance on the consumer needs, unidentified market segments, and unattended to customer feedback. A EWRM is aimed at suggesting the presence of an incessant assessment platform, which ideally should focus on functioning with the market wiring.
Classical airlines risk balancing with customer focus will enable it develop into a growing entity. It is also very clear that efficiency emphasis have overshadowed the strategic thinking. This means that the management needs to ensure that employees develop an altitude, skills, as well as commitment that are needed in order to meet customer satisfaction, retain them, and sustain their loyalty. Efficiency emphasis has overshadowed strategic thinking in Classic airlines. This means that services offered by the company needs to ensure that the employees skills and abilities, altitudes, as well as their pledge needs to meet the customers’ expectations, needs and sustain a customer devotion. Therefore, the management responsibility is to ensure that employees are charged with the responsibility of containing a vision that lives in a combined efficiency and strategy.
In addition, a marketing strategy that is realistic should be a delight to the stakeholders and at the same time exhibit sustainability as well as marketable qualities. As an alternative solution to its current crises Classics airlines should try, solve them through benchmarking which is part of a successful company’s transition. For example, Southwest Airlines have been able to consistently deliver high hold for its consumers and employees, which led it to reporting a breaking record in profitability (Kelly, Gary2008). Research has linked this success to a realistic revenue growth initiatives, fuel hedging, burly liquidity, and good customer relations. Companies have helped their customers have good experiences with the website and good company values leading into a relationship concept in marketing from an actual flight.
This positive approach has set a very high standard within the airline industry. Therefore, Classical airlines should follow the southwest airlines consumer focused philosophy, which should be perfected in the new CRM systems that they aim at reintroducing. Classic airline require being adoptable enough in order to evolve in the industry. Classic airlines has introduced the CRM system which the company’s management should prioritize the alternatives with the appropriate weights. Cross- functional and consumer focus emphasis should be crucial elements of the marketing plan.
Therefore, in the process of prioritization, consumer focus should receive the most weight while cross functionality follows. Classic airlines EWRM approach is also a key concept that should be communicated well and in a way that is accessible to all along with retention points, the transparency focus should be addressed appropriately as well. A balance between marketing plan and the performance measures should be highly addressed by the management. It is also the management responsibility to ensure that they remind the employees that learning tends to fade therefore updated requirements must be a mandatory approach (Byrne, John 1998).It is clear that as the industry changes challenges on trade off choices that adds no value faces the company.
As a result, risk mitigation implementation techniques will prepare the company for contingencies, which will help it build stronger structures. Introduction of EWRM into Classical airlines systems will help the company improve continuously through creation of a more unified environment. This system will enable the Classic airlines analysis team with ability to recognize potential power shifts, risk assessments, as well as being able to categorize elements as intangible or tangible. CRM system success in Classic airlines will be determined by how well it will be implemented and through how the senior management in the company restructures their consumer voice into the existing system. The other implementation that is of help is that of outsourcing. According to these industry experts, these systems fail due to conflicts as well as loss of consumer focus.
A maintained awareness in these facts will help Classic airlines maintain a growth and strong relations. It is clear that the crises facing the company currently will be solved when all the discussed issues are well addressed by the management. They should ensure that the system it is using in its market processes positively affects consumer satisfaction, which should remain the company’s priority.