CRM's Application Research In Air China

With the economic development in China, the civil aviation transportation has turned from sellers' market to buyer's market. In China , with the higher railway speed and improvement of road network, the competition between different types of transportation is increasing. After China's WTO entry, civil aviation transportation enterprises will face sharp competition with their foreign counterparts in many aspects. The price campaign has last for years, resulting in deficit in the whole industry. Under this background, in 2002 the State Council launched a reform in civil aviation system to restructure the current domestic civil aviation enterprises and established three big airline companies. Insiders estimated that the restructuring would have a fundamental effect on the change of competition mode. How can Air China succeed in the competition?Due to the obvious characteristic of same quality in aviation products, customer resource is the most lacking resource in airline companies. The one with most customer resource is the one has the strongest core competitiveness. This paper, from marketing perspective, studied Air China's approach to increase its core competitiveness by the establishment of a Customer Relationship Management(CRM) system. Beginning with the analysis of the competition pressure faced by Air China, this article discussed the application of CRM in America airline companie, the foundation and feasibility of CRM's implementation in Air China and finally proposed a plan for CRM's application in Air China, the system function and system construction of CRM, and analyzed the difficulties and countermeasures in theimplementation of CRM. The plan for CRM's application in Air China is the emphasis of this article. In this part, it is discussed in detail how Air China should implement its own relationship management, and proposed , by the application of BPR, the scenario for the changes in marketing, sales and service flow.