Classic Airlines Corporate Culture


Classic Airlines Corporate Culture and Marketing Strategy
Justina Barone
University of Phoenix

Classic Airlines ranks fifth in size in the airline industry and reported $10 million in profits last year. Although the 25 year-old airline has maintained profitability, Classic is not exempt from the challenges that plague the industry. The executives at Classic are tasked with addressing the decrease in stock prices, negative media attention, decline in customer loyalty program use, and rising fuel costs. The current corporate culture at Classic does not believe in the importance of marketing and believes prior recommendations made by the department have affected the company negatively. The new marketing department must re-tool the current customer relationship management program to increase profits while adhering to the 15% reduction in budget and continually provide quantitative data to the Chief Executive Officer to tracks the program??™s success.

Classic Airlines is a profitable company struggling because economic hardship and negative press have reduced consumers??™ loyalty to the airline industry. To maintain competitive positioning, Classic recognizes the need to reexamine its business model to achieve future success. The Marketing Department must implement procedures that allow continual evaluation of employee??™s needs, competitors offerings, and consumers??™ wants and perceptions to adjust the value offerings at Classic. This arduous task must remain budget conscious in a volatile environment that lacks conviction the Marketing Department can meet such lofty goals.
Marketing Challenges
The goals of a marketing team are to meet the needs of the consumers as well as the business by identifying the target market, communicating the value of the product effectively and managing customer relationships continually to provide pertinent data to the stakeholders. ???But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself??? (Kolter & Keller, 2006). Classic Airlines subscribes to the exchange method of product offering. The marketing department must discover what consumers want in a flight experience and execute the offer at a profitable price while meeting the parameters of company expectations.
As the Chief Marketing Officer (CMO) at Classic Airlines, Kevin Boyle faces many challenges as the least tenured executive on the team. His predecessor tarnished the reputation of the Marketing Department by recommending slashing the prices based on the incorrect assumption Classic Airline customers were extremely price sensitive. The current customer relationship management system (CRM) requires integration with the customer service portal and updating to collect pertinent data that can be used to increase activity in the rewards program and strengthen the bond between customers and Classic Airlines. Marketing consists of actions undertaken to elicit desired responses from a target audience (Kolter & Keller, 2006). Boyle must add value to a flight on Classic Airlines while meeting the budget cut expectations of 15% set forth by the chief executive and financial officer, both extremely driven by quantitative success.
Classic Airlines falls underneath the umbrella of service industries. Boyle and the other executives must reshape the identity of Classic in a positive way through various media vessels based on a strong basic idea. Uniting all departments under one brand identity requires more than integrating the marketing information system. All executives, department heads, and personnel must become brand advocates and committed to the re-branding efforts. It will not be beneficial to Classic Airlines to generate a marketing campaign highlighting their exemplarily customer service without the buy-in of everyone in the Customer Service Department from managers to the janitorial staff.
Boyle and his team of executives will examine ways to redefine Classic Airlines using data collected by the marketing information system while honoring their current union contracts, engaging personnel, and operating with a 15% reduction in budget. Opportunities exist in expansion into foreign markets through Boyles contacts as well as increasing usage in the rewards program, thus building customer loyalty, repeat business, and more faith in the brand. Like all marketers, Boyle faces a multitude of challenges, but developing, implementing, and continually reevaluating the well defined marketing plan that gains buy-in from the company leaders and the board of directors will help bring Classic Airlines to the front of the industry leader-board.
Kolter, P., & Keller, K. L. (2006). Marketing management (12th ed.). New Jersey: Pearson-Prentice Hall.