Classic Airlines and Marketing
Classic Airlines offer its customers luxurious travel from one place to another in safe and comfortable airplanes. The company has, however, been facing a challenge of losing its clients to competitors. This has been as a result of failure by the company to integrate several marketing concepts in its product development.
A key concept that the company has failed to apply in its product design is product differentiation. As a result, the company’s products do not stand out in the market and hence why customers are shifting to Classic Airlines’ competitors. Product differentiation can best be achieved through innovation to ensure a company maintains a competitive edge in the market. Classic Airlines should consider initiating innovative product development to ensure that its marketing efforts reach the selected target market. After initiating innovative product development, the company should formulate a comprehensive marketing strategy to counter the declining demand of its products and services.
Another principal marketing concept that the company has not integrated fully in its products is the use of pricing strategies. The company operates in an industry where value-based pricing is the key strategy (Stephens, 2011). It is essential to note that value-based pricing does not only come with setting a high price for products but also to ensure the clients receive the value promised by the price set. The company has failed to deliver on this value though its products remain the same. Hence, at present, the company faces a challenge of whether it should lower its prices to maintain a competitive edge. However, this is not necessary and all the company needs to do is initiate a value-addition program for its products and services.
A vital principle in marketing is communication; however, Classic Airlines has failed to foster communication with its customers. It is necessary to ensure that as a company expands, it maintains avenues for customers to give feedback and also to contribute to product development. The company needs to improve on its listening as much of what it is doing at present is talking to its customers. This will help ensure that the company’s products are tailored to meet customer demands.
Classic Airlines is facing a challenge of a disunited workforce, which is as a result of bickering among staff members. The company needs to develop a corporate culture built around respect for each other’s opinion. It is only after ensuring a united workforce that the company will be able to develop a strong service culture. Subsequently, such a culture will help improve customer satisfaction which will in turn translate to customer retention.
Satisfied employees are also necessary in creating a strong brand; hence why Classic Airlines needs to reduce the infighting within it. A strong brand will give the company an edge in the market. Branding is also necessary as it gives a company an identity with which its customers can relate with (Keller & Kotler, 2006). At present the company’s identity is suffering because the people responsible for creating the organizational image are involved in other unproductive activities. The company needs to establish itself as a reliable service provider that is focused on delivering customer satisfaction. Once the staff is united, the company can initiate a rebranding strategy to help improve its organizational image and also to increase its market shares.
Keller, K., & Kotler, P. (2006). Marketing Management. New York: Sage.
Stephen, S. (2011). Airline Marketing and Management. CA: Ashgate Publishing, Ltd.