Classic Airlines and Marketing-Mkt 571

stainless Airlines and Marketing WK 1 MKT 571 University of Phoenix Classic Airlines is the fifth largest airline attack aircraft carrier in the world with 375 airplanes that service 240 cities with more than2,300 flights severally day. Since its inception 25 years ago, Classic Airlines has more than32,000 employees. Last year the lodge had a net income of 10 million dollars (Classic Airlines, 2010). Current challenges Although the company is making a good profit, it has also encountered some major challenges. The downturn in the thriftiness has caused net income to decrease.This year the company had a net income of $10 million, tho the previous year had a net incomeof $71 million. The company has experienceda 10% decrease in share prices. Classic Airlines has the highest labor cost in the industry (Classic Airlines, 2010). These challenges has caused employee morale to hit an all time low. Classic Airlines is in the process of solving their authoritative challenges and evalua ting their current military capability in the marketplace. return and services marketed and merchandising concepts Classic Airlines needs to have the netprofit add each year.This can be accomplished by developing an effective grading plan. The marketing plan should be centered on increasing passenger activity by rewarding its current customers and enticing new customers. The marketing plan should select potential markets and getting, keeping, and growing new customers by delivering ace customer value (Kotler & Keller, 2006). Classic Airlines should continue performing customer surveys. through these surveys the company can throw valuableinformation on how to keep existing customers and obtain new ones.These surveys can be a tool that can incite Classic Airlines implement their new marketing plan. Through these surveys the company and agree what services should be offered. Current corporate finish Classic Airlines has a mixed culture. They pay their employees top salaries, while competitors are cutting pay to employees. The company has one of the best retirement plans in the industry. However, the company plans a 15% across-the-board cost reduction over the contiguous 18 months. Employee morale is lowest in the companys history. ConclusionClassic Airlines has some major challenges including a $61 million dollar decrease in net profit, 10% decrease in share prices, a downturn in the economy, and a need to reduce costs by 15% over the next 18 months. The company markets a frequent flier program to increase business and reward its loyal customers. The company needs to update the current rewards program. The corporate culture has been impacted by the lowest employee morale in the companys history. The company is in the process of solving their current challenges and evaluating their current position in the marketplace. ReferencesClassic Airline Scenario Classic Airlines (2010). Retrieved March 12, 2010 from the University of Phoenix MKT/571 direction We b site https//myresource. phoenix. edusecure/resource Hansen, R. (2010). Uncovering a companys corporate culture is a critical task for job-seekers. Retrieved on March 12, 2010 from http//www. quintcareers. com/employer_corporate_culture. html Kotler, P. & Keller, K. ((2007). A Framework for Marketing Management (3th edition). Pearson Prentice Hall, Upper Saddle River, modernistic Jersey Robbins, S. (2007) Organizational Behavior (12th Edition). Pearson Prentice Hall, Upper Saddle River, in the buff Jersey