Problem Solution: Classic Airlines
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Frame the “Right” Problem
Classic Airlines will address its customer loyalty issues to take leadership in the airline industry by providing ultra-efficient targeting and results measurement that are delivered via strategic marketing campaigns and effective marketing segmentation.
Classic Airlines has an opportunity to retain customers by creating and adhering to a mission that accurately assesses customer need while delivering quality service to each unique area of market segmentation.
Describe the “End-State” Vision
Classic Airlines has many opportunities to focus on in order to achieve attainable goals. These goals will support the desires of the company, the employees, and the customers. In order to achieve the dominant air transportation provider position that Classic Airlines wants to become, the company must overcome several obstacles and meet specific short and long-term goals. Some of the goals are:
Increase loyalty program participants by 10% within 6 months.
Maintaining existing CBA provisions with labor unions
Improve employee morale by 50% within 12 months
Increase flight frequency per loyalty program participants by 25% within 12 months
Improve customer satisfaction by 35% within 6 months.
Improve perceived customer value by 45% within 12 months
Reduce operational cost by 15% within 12 months
Identify the Alternatives and Benchmarking Validation
Just like Classic Airlines, Coca-Cola has also experience diminishing customer support. The company has seen a declining popularity of carbonated beverages in the U.S., its second largest market representing 28.9 percent of its total revenue. For the first time in twenty years, the number of cases of soda sold in the U.S. dropped to 10.2 billion cases, a 0.7 percent decrease (Fuhrman, 2006). The companys flagship brand Coca-Cola was down 2 percent in 2005. This is a significant trend. U.S. consumers have started to become more health-conscious and are looking for a greater variety in their drink selection, further