Solving Classic Airline's Marketing Problem Case Study

Applies a problem-solving model to resolve the case of Classic Airline's marketing problem.
# 150587 | 2,590 words | 11 sources | APA | 2012 | US
Published on Mar 19, 2012 in Business (Marketing) , Business (Consumer Behavior)

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This paper uses a problem-solving model to resolve Classic Airline's marketing problem including issue identification and definition, description of the effects from internal and external pressures, objectives and obstacles from the marketing department and demarcation of available marketing resources. After reviewing the problems and possible alternative, the author recommends that, because the airline industry is completely dependent on maintaining loyal consumers to ensure its profitability, Classic Airline must revamp its marketing programs to strengthen its relationship with current customers by providing flexible, value-added services and benefits to sustain brand loyalty. The paper evaluates the impact of these proposals and suggests ways to implement. Two problem-solving tables are included in the paper.

Table of Contents:
Classic Airlines Problem Identification
The Effect and Causes of the Problem
Alternatives and their Impacts
The Decision: Revamp
Its Impacts

From the Paper:

"Previously, the customer rewards program has been a drain on marketing resources and provided little benefit. The success of the company is contingent on the redesign and implementation of the rewards program. Unfortunately, this endeavor will be a significant challenge because of the mandated 15% budget reduction implemented by the Board of Directors to occur over the next 18 months. The root of the issue lies within the current rules and regulations for the rewards program, which are inflexible to the needs of consumers. The call monitoring record reveals there are no other options available for a trip that is not within the defined boundaries of the program. For example, there is not currently an option to upgrade to a non-stop flight, redeem miles during a blackout period, or allow customers who fly very frequently to redeem rewards before a two-year window is satisfied. Based on the examples seen in the scenario it is apparent that the rewards program dissatisfies and impedes building customer relationships.
"Customer dissatisfaction is not only caused by the rewards program. Analysis of all customer feedback is essential to determine the cause for declining volumes. Other factors, such as employee morale, direct customer service, schedules, and pricing should be evaluated and a subsequent plan of action implemented."

Sample of Sources Used:

  • Jordan, B. (2010). Improving morale and organizational performance. Retrieved August 28, 2010 from
  • Kotler, P., & Keller, K. (2006). Marketing management (12th ed.). New Jersey: Pearson-Prentice Hall.
  • Lake, L. (2010). Customer relationships are key to your marketing strategy. Retrieved August 28, 2010 from
  • Leadership strategies for business development. (2010). Leadership strategies: Leadership and business management. Retrieved August 28, 2010, from
  • Mayoux, L. (2002) Develop good indicators. Retrieved August 28, 2010 from

Cite this Case Study:

APA Format

Solving Classic Airline's Marketing Problem (2012, March 19) Retrieved February 05, 2023, from

MLA Format

"Solving Classic Airline's Marketing Problem" 19 March 2012. Web. 05 February. 2023. <>