Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (Kerin, 2005). Marketing is a fundamental key to any businesses success and involves determining the needs, wants and desires of consumers and satisfying them to the best of the companies' ability.
The context of the paper will examine the case study of Classic Airlines and provide and in-depth situation analysis starting with a brief background of the scenario, identify the issues and opportunities, explore stakeholder perspectives and ethical dilemmas. Continuing through the problem definition guidelines, a problem statement will be developed and end state goals will be identified which will provide the foundation for proposed solutions and analysis of the solutions. A risk assessment and mitigation will help to identify the optimal solution which will lead to the development of an implementation plan and finalize with a gap analysis.
Describe the SituationSituation BackgroundClassic Airlines, the world's fifth largest airline, has been in business 25 years and employs over 32,000 people. Currently, Classic Airlines has a fleet of 375 jets, serving 240 cities and operating over 2,300 flights per day (Scenario, 2007). Declining sales, market share, profitability and membership in their rewards program has Classic Airlines facing an industry of consolidation and competitiveness.
Issue IdentificationThere are a number of issues Classic Airlines must address. The primary issues the senior leadership team needs to address in turning Classic Rewards program around are declining Classic Reward membership as a result of low customer satisfaction, inefficient use of the Customer Relationship Management system, and not having an alliance agreement in place. Classic Airlines has faced a number of challenges with rising fuel cost prices, higher labor costs, and declining membership in the...