Classic Airlines is currently one of the top airline industries but have faced trying times and a decline in revenue and passenger activity. The company has a rewards program in place but obviously with a decrease in passengers the rewards program is not bringing in the type of profit anticipated. By using a macro-environmental change, a marketing research program, and developing a marketing plan the airline should be able to revamp the current rewards program to fit the current economic conditions and market the program to the public in such a way that the plan increases passenger activity and revenue for the airline and the rewards program. Macro-Environmental Change.
Macro-environmental change occurs when demographics, economic, physical, technological, political-legal, and social-cultural forces affect the sales and profits (Kotler, & Keller, 2006). In this instance, the rewards program is centered in tiers and only 40% of the members are Silver or Gold, which reap the most rewards. The demographic is directed toward the flyers traveling on business because there is an 80/20 split between business travelers versus leisure travelers. The current economic condition had not only affected the change in how many individuals fly but also how many miles individuals will accumulate. Ultimately, a macro-environmental change will allow the company to adapt to the forces that currently affecting the sales and their profit negatively. Market Research Program
A market research program is beneficial for any company big or small because it measures the market potential and forecasts future demands for the product or service that is promoted (Kotler, & Keller, 2006). Classic Airlines can market the rewards program successfully, but to ensure that the full effect is achieved incorporating a market research program into the mix is more than necessary. The company would not want to make the mistake of under marketing the product or investing more into the program than the forecast indicates. Understanding the future demand of a product allows the company to market appropriately. Marketing Plan
Every business decision that Classic Airlines makes affects the profits, customers, and employees. This is by far one of the most important aspects of any marketing decision because implementing a strong marketing plan allows the company to follow through with the vision. Any plan is good in theory but without a direct and well laid out plan to enforce the concepts the whole vision will be lost.
Classic Airlines will be able to remain competitive with the current market and culture by ensuring that they adapt the rewards program to please the wants and needs of the consumers. By understanding the factors that affect the sales and profit them can introduce a market research program and then create a strong marketing plan. In the end, Classic Airlines should be able to rise to the top of their league if they incorporate the market strategies listed above.