2 Pac's

One of the main documents Classic maintains is a SWOT (strengths, weaknesses, opportunities and threats) Analysis (Classic Airlines Documents, page 6). These analyses break down three of the competitors for Classic. Classic must focus on the external causes for their lack of customers within the rewards program. Researching and studying the opportunities and threats of British Airways, Northwest Airlines and United, like forming new alliances and fuel cost savings is a start for Classic. Kevin Boyle, Chief Marketing Officer of Classic Airline, also supports this idea. The SWOT analysis will lead to marketing opportunity for Classic to intrigue new consumers into the rewards program (Kotler & Keller, 2006). Internally, Classic must fix its weaknesses like bigger wages then its competitors and re-evaluation of the tier rewards program setup.

Classic has begun the proper research with the survey approach (Classic Airlines Documents, page 8). The sampling plan consists of 500 current rewards members who were asked specific questions to gain their preferences and knowledge toward what comforts them and what Classic must expect from their loyal customers. After learning from the survey interviews a new implementation forecast of the target market will be available to Classic. The survey data is effective due to the marketing information system (MIS) and customer relationship management (CRM) programs running at Classic. The CRM is how the various demand states are formulated and realizing that both negative and latent demands are pertinent will allow help Classic with the market share that have an interest in being reward members.

This new target market and total market potential, which is most available sales by dollar, is how Classic will be able to increase company sales; At the same time reduce its costs throughout the company by 15%, which is an order by the Board of Directors. The selling concept will be the best avenue for Classic to "aggressively sell and promote its overall services/product" (Kotler & Keller, 2006, p. 15) and subsequently its customer frequent fliers rewards program.

Conclusion

Classic Airlines has the proper people and initial marketing concepts to properly overcome the financial and market deficiencies. With a combination of a SWOT Analysis, target market re-capture and upgrades in demand focuses, Classic has the ability to be the leading airlines for the average customer and can create a niche to attract reward members.