The Carnival Cruise Line - Case Study Example

A. Introduction Executive Summary This is a study on advertising campaign of one of the booming division of the hospitality industry, the Carnival Cruise Line. Its aim is to analyze numbers of advertising tools alternatives to determine the ones that are more likely to be more effective. The significance of these means capability to reach out to the market is given emphasis. The strength and probable results were discussed and details were elaborated. A thorough analysis on the companys target market, as well as means and alternatives to provide these needs was also part of this work. This study gives focus on its principal target market: the Senior Citizens---who, under several considerations, have the greatest buying power, have the most available time since most of them have retired from work, or probably running own businesses. This sets sights on their needs, giving concern on their health, its restrictions that mostly are brought about by aging, without taking their wants for granted. The study tries to combine the needs and their preferences together. This study suppose that these people are also most likely to try the cruise line ---what it offers, especially for them---for they may sense the urgency, the necessity to build memories with families and friends. A closer look to its competitors, what these companies have to offer, what made these cruise lines different from the Carnival Cruise Line and their services were examined. The focus of this work is to bring about effective advertising campaigns---tools that have the power to connect the company to its target market. Few of very powerful advertising mediums were given attention for this study to make an emotional connection toward the customers, existing or intended clients. i Overview Several activities are offered for everyone to enjoy on cruise lines; but one significant thing seemed to have been taken for granted---the group, who, at this point ought to be enjoying their lives---the senior citizens. These people had been included in several market lists, but were seldom prioritized; when in fact, they are the ones who must be given more importance, for it may one day be a bit late for them to try to enjoy the cruise later. Fact is, the older people get, the less activity they can do or the less strenuous activities they are allowed to be engaged in. Reigning as the worlds largest and most known cruise lines, it is but expected that when Carnival Cruise claims a satisfying yet extremely healthy promise, the market would absolutely believe. The study’s proposal is to promote facilities intended for the senior crowd. It includes water spa that gives rejuvenating effect and sensation. A focus on its special menu, which provides healthy meals but as sumptuous as the regular ones, were also part of the proposal. All intended to win the hearts of a more mature, and probably, more health conscious crowd. Carnival Cruise is undeniably the leading cruise line in the industry, earning awards by continually providing exemplary guest services. Its management knows exactly what its guests need that it never stops to come up with new and surprising ways to please its guests. This study reviews the campaign ads, its methods, the probable costs and how these ads can make a rapport with the senior people. ii B. Situation Analysis Historical Context Carnival Cruise Lines is a cruise line operating a large number of cruise ships. It originally was an independent company founded in 1972 by Ted Arison. It is now a branded division within Carnival Corporation & plc, a publicly traded company with Micky Arison as the Chairman. Carnival Corporation & plc owns a number of different cruise lines and has become the largest corporation in the cruise industry. Carnival and its affiliates Holland America Line, Princess Cruises, Cunard Line, Costa Cruises and the Yachts of Seabourn; are branded by the company as the Worlds Leading Cruise Lines(Wikipedia). 1972 – Maiden voyage of Carnival’s first ship, the TSS Mardi Gras, which runs aground on sandbar outside the Port of Miami. Carnival Cruise Lines undertakes its initial public offering on Wall Street, raising approximately $400 million to fuel future expansion; entity later becomes Carnival Corporation & plc, a multi-line worldwide cruise conglomerate Carnival’s parent company renamed Carnival Corporation to distinguish between it and its flagship brand, Carnival Cruise Lines. Company is later renamed Carnival Corporation & plc following the combination with P&O Princess Cruises, creating the world’s largest cruise vacation group by far (36 Years of Fun). i Industry Analysis Hospitality industry is considered as one of the largest, highest-grossing company in the field of business. One reason why leisure business is quite successful is the fact that people, in general, loves pleasures and the public believes that one way of giving love to yourself is to give it what it deserves. Indulgence, memories, fun---these are what make the industry grow into its full bloom. Carnival cruise line and other leisure industry take advantage of these factors. A person who worked hard all his life deserves a little reward this time. They have been there for their families; it’s about time that they focus on themselves now. The market will definitely bite it, people love what feels good, a food that looks good is often perceived to taste even better. It is human nature, and that is exactly what this business is all about. A want is suddenly turned into a need. A good massage, a spa, was once viewed as a luxury, but the industry has managed to change that. A spa is now considered a necessity for a hard working person needs to relax. ii Market Analysis Carnival cruise line offers sophisticated services and its intended market are those who exudes sophistication. It’s a multi-billion-dollar cruise line, it offers and provides only the best; and its clients are the ones who want, and are capable of spending for the best. Recognizing the importance of the market that has the ultimate buying capacity, plenty of time to travel, and perhaps---has the urgency to catch up, trying to spend quality time with family for soon they won’t be as capable and physically fit to enjoy leisure these activities. The senior citizens---based on these factors---just need a little push to make them indulge on things that they probably miss. People are now inclined to understand the benefits of spending vacation with their families, recognizing the importance of time and memories. It was upon the realization of this fact that a need arose, and the hospitality industry was more than willing to provide for that need. Carnival cruise line strives to bring about products and services that its target market deserves; it knows too well that most of these people are important crowd of the society and such importance are given adequate attention to win customer trust and loyalty. Carnival cruise line targets a market that is capable of giving intelligent judgment and these people are most likely to spend their money on expensive cruises repeatedly, provided the company meet, and in some cases, exceed their expectations. Smart people are more possible to make smart choices, and having a number of luxury ships to choose from, this market knows why a certain cruise line is worth its offered price. Carnival cruise line is after a market that truly understands the definition of luxury. These people know how to have fun, and they are willing to spend for it, for as long as they are pleased. This group of people may give the impression of being ultimately demanding, but once these demands are met, it increases the probability of winning their loyalty. Carnival cruise line knows exactly what their market wants, and this knowledge is what has kept the ship line as one of the most popular. iii Competitor Analysis Recognizing the needs and demands of customers is one thing that not only the Carnival Cruise Line knows. Royal Caribbean Cruise Lines, Norwegian Cruise Lines are just some of the cruise lines that the market can choose from. These companies, just like Carnival Cruise Line offer wide variety of alternatives on how to make ones vacation truly memorable. These companies have given “enjoyment” a quite deeper meaning. Crystal cruises have been promoting its “crystal clear” distinctive, cruise experience. Its approach focused on its belief that the travel industry has the demand to offer different products that it came up with several crystal clear different experience. Different competitors are coming up with different alternatives trying really hard to perceive the markets interest. Print campaigns of number of cruise lines run in travel magazines, including Travel Weekly, Travel Trade, Vacation Agent and other trade publications and leisure magazines. Television sites are airing countless cruise line campaigns. The competitor is evidently working as hard as Carnival Cruise Line does. This keeps the competition close and the leading cruise lines do their best to continually be on the lead. However, the competition, as close as it gets only brings out the best on each cruise line, this hard work benefits the company for it wins customer attention, but in many ways, this is also beneficial on the consumers part, since they are provided with more well-though of options, several packages that each holds a promise of an unforgettable, remarkable experience---and that alone is priceless. iv 1. C. Objectives Quantitative Benchmarks Carnival Cruise Line hires number of marketing people, coordinating with advertising agencies to ensure that the quantity of work is enough to ensure that each task will be brought out in high quality. Quantitative benchmarking helped the cruise line to identify which among these advertising tools, against the advertising people were most effective. The company makes sure that there will be no insufficient manpower for the task. Marketing manager, as well as his/her subordinates are the ones who make arrangement with other advertising agencies. i Measurement Methods Carnival Cruise Line decided on the number of people assigned for a certain task based on their capabilities and experience. For instance, a television storyboard may require 8 people, whereas, since the cruise line obtained the service of professional ones, 5 experts were good enough to come up with a high quality story board. The expertise of its staff, as well as the amount of workload were the measures used by the cruise line to decide on the method used. Billboards and print ads required more staff for this were in need of a detailed, meticulous inspection. Repeated editing were done by these people, however, the necessary effort were exerted but the company made sure that none of them suffered from overworking. Carnival Cruise Line knows that too much workload may only cause stress and that the person assigned on the task may only fail to give his/her best that the company gives extra attention to this, making sure that balance is ultimately achieved. Required amount for the advertising tools are further discussed on Budget/Amount. ii Criteria for Success The possibility to leave am impact on the customers mind require an intense amount of appeal, an extremely impressive work. These are essential for the plan to acquire what it aimed to achieve: knowing exactly what your market demands is the best way to make them happy. The objective, when process were done in accurate methodology, is more likely to be attained. Studies help in finding out the core, which absolutely aids in coming up with the wisest decision. This research, when taken seriously, are quite valuable for on this depends the accuracy and appropriateness of the companys actions and decisions. iii Time Frame It is necessary that details are organized and plans are implemented on time. Last minute corrections may be unavoidable, but to cram on significant details is a different story. Discipline and time management play a major role on this. A television ad may require a few months of preparation, at times, even longer. The length of time usually depends on the readiness of materials and the quality of the commercial, and Carnival Cruise Line always opt for the best. A radio spot may be accomplished in a shorter notice. A billboard may be an enlarged version of the print ad---this will not only cut cost and time, it may even create identity to the consumers. These ads are intended to be aired for 8 months, and the print ads to be released on the same length of time to remind the public that life could be fun, if they choose it to be. iv D. Budget Methods The best way to find out the probable cost is to make specific lists of all expenditures. Segregation of the said list may provide as an easier reference. For instance, “Supplies and Material” may contain an elaboration of all items used, or will be used. However, “Supplies and Materials” list for the TV Storyboard must be separated from the list of other advertising tools. Miscellaneous is one way of recording expenses that are sometimes difficult to determine on which category this must be listed. Another major expense is the labor cost, therefore, an up-to-date excel file is recommended. Ad campaign entails a lot of hard work, not just on the objective, but on its process as well. To come up with a 30-second television ad, number of people needs to work on a great deal of time. All these have to be clearly identified for it is important that the expenses be weighed against its possible output. i Amount The amount each advertising tool would require would be dependent on its quality, length and other factors that are usually entailed on every advertising campaign. A television ad has two cost components, the first one is the cost of the production of the commercial; second is its airing cost. During less watched programs, these ads cost less, however, Carnival Cruise Line knows that things should be balanced. Million dollars are the probable cost for this television ad. Below are the elaborated details of the proposed television ad. Television Ad Specifications: Length: 30 second Proposed Cost: $360,000/ single commercial Price may vary depending on the programs that the cruise line will choose, the more people that is expected to watch the program, the higher it will get. In other words, programs or television shows that get the higher ratings require higher cost. The total amount to be spent on this would depend on the frequency the Carnival Cruise Line would have the commercial aired. Amount x frequency of airing = total cost. Proposed Television Storyboard: A woman in her sixties will be shown having a great time at Carnival Cruise Line water spa with her friends, who, of course, are of the same age bracket. Luscious and mouth-watering meals served on a table of a group of senior citizens. (Foods that are really good; but guilt-free, FINALLY!). Radio advertising cost is perhaps the most obvious and important of the top three characteristics of radio advertising that makes it a very attractive advertising vehicle. On both creative development and media costs, radio beats TV by a significant margin. Where the most simple and least expensive TV spot ad will easily cost well over $50,000 and take months to produce, you can have a radio spot developed for less than $1,500... in a matter of days or weeks. In terms of media costs, youll often pay a minimum of thousands of dollars for TV media placement. However, you can air a radio spot for under $100 at agency discounted rates and you can air a full weeks radio advertising test on multiple stations for as little as $2,500 (Strategic Media). Several information are considered when choosing the radio spot, since the target market are the senior citizens, it would be wise to spend on stations that air classical news talks and has the adult standard. S1,500 for creative development $3,000 for initial media test (3 to 4 weeks) The ad will basically cost $4, 500 but most likely to result on $7,500 profit. Proposed Radio Ad Campaign: A commercial will establish a good connection with the senior citizen by saying, “It’s never too late to enjoy life, and enjoying it at Carnival Cruise line is a different story---the best memory one could ever give to his or her family.” Print Ad Proposal: One-Half Page Print Ad - $1,905 Back Cover - $3,675 Magazine trim size is 8.375” x 10.875” Colored/Glossy Pictures of luscious meals, including dark chocolate cakes, blueberry cakes, lean meat steaks, wines, people in their 60’s having a great time. A header states “Love yourself, and let Carnival Cruise Line define that love…” Then, using a smaller font size, Times New Roman size 8, “Don’t let your worries stop you from having fun, we have exactly what you need---and want.” Billboard: The billboard, to create familiarity and identity will be an enlarged version of the print ad. Billboard Advertising Cost : $2,500/month Billboard Size : 48’ wide and 14” high. Specification ; Made of wood, will be placed on busy roads, the bigger the city is, the higher the amount, (estimation of $5,000 for roads that have higher demand). Please note that estimated costs are applied on a single ad campaign. It is therefore have to be multiplied to the number of frequency that Carnival Cruise Line would decide on. ii Justification Carnival Cruise Line know that spending a multi-million dollar campaign wouldnt hurt for it is aware that the company will soon be reaping its hard work. Tremendous effort given by its staff, together with the advertising agencies are all worthwhile, knowing too well that its the price and the reward of being part of the worlds largest cruise line. Multi-million dollars spend on the ads is money well spent, since its objective to reach out to its present customers, to win new ones and to possibly create repeat sales through this is more than what was spent. iii Strategy Anything that is well-planned is expected to work well. This study aims to establish a connection, a rapport with the target market through numbers of campaign ads. The plan is a result of research and study, paying attention to customers needs and demands, company capacity against its competitors. Understanding these factors, analyzing its core, then coming up with intelligent conclusions and tactics while giving consideration on its probable costs and methods, the plan has a greater possibility to achieve its aim than to fail. The conclusion of this study or the plan itself came about only after a thorough market analysis, research on the industry, therefore, implementation of this promises a better customer relation, and once that connection was developed, the aim of the company to win customer trust and loyalty will soon be at hand. F. Execution Copy Strategy This is where significant details are discussed, it is critical that information that will truly make an impact on the customers mind, or if possibly on customer emotion--- be brought up. This must be strongly informative, but not to the extent that it becomes too lengthy that it will bore its target audience. The line between the difference of enough and too much must be clearly defined. Awareness of what may perceive the customers interest and what may make them overwhelmed by too much information will definitely aid in achieving a rather interesting, impressive campaign. This is where you will let the market know what you offer. Senior citizens be made to be aware that they are deserving of all these. Dark and moist chocolate cakes that are totally tempting will be a good way to free them from tasteless and boring desserts, for these are absolutely sugar free. Strategies and lines that will be used to get the market had been elaborated on ad campaign specifications. The importance of creating a copy that is clear, direct and precise is that it will draw more people to pay attention, and maybe, to even try what caught this attention. Persuading the people to sample what the company offers may truly be difficult, but this is where the challenge lies. It should not be forgotten that the message must be stated with clarity; that it conveys its exact information and that it bears the cruise lines credibility. The industry is after a market that is sophisticated, each language should ooze sophistication. i Media Plan Reaching out to its target market is one thing that Carnival Cruise Line does so well. The company will be having its new television ad wherein companys claim of fun vacation comes with a visual clarity. Families spending time together, kids having fun, couples enjoying an intimate dinner---these are exactly what Carnival Cruise will be airing. The ad will also show scenic, breath-taking views, promising tranquility that even the busiest person may be made to decide on having the cruise. This plans main objective is not just to remind present customers, it also aims to win new ones. Print ads, just like television, have a great impact on clients especially when these are done with a combination of class and creativity. Carnival cruise line will be on a half-page magazine ad that will be featured on various consumer magazines and travel publications. Carnival cruise line chose to come up with realistic pictures over illustrations for it believes that this has more appeal than drawings. A woman in her sixties will be shown having a good time with her family and friends enjoying water spa. Luscious cakes that are sugar free, plus a quote that will probably tempt every senior citizen, “It’s never too late to enjoy life. Have it now. Create the best memories of your lives.” ii Integrated Brand Promotion To completely launch its exciting surprises for the senior citizens, it would also be wise to mail brochures to selected travel agencies. These agencies, which also offer various packages in coordination with cruise lines, hotels and resorts---are also considered as one of the best customer medium. Web banners will be all on the internet, showing pictures that some were included on the print ad and billboard---aiming to establish familiarity and company identity. Other marketing tools such as post cards and other marketing items are also significant part of the ad campaign. iii G. Evaluation Criteria The studys mean in evaluating feasibility is measured by the effectivity of its advertising campaign tools. The more the plan appears to be of great impact to its target market, the greater the possibility of it to achieve desired output. The heart of the project mainly, is the effort to make a connection to the people, and when the plans have that possibility; it could then be considered as effective. The advertising tools used to campaign for Carnival Cruise Line required great cost, however great that cost may be, if it promises to carry out greater customer appeal, hence, it could still be more than feasible, for the methods used against its probable cost when multiplied with its overwhelming customer awareness would only define success. i Methods The advertising campaign for Carnival Cruise Line can be concluded as effective and feasible. These means, after analyzation and contemplation with its possible weak points, are almost flawless. These were decided on not just based on simple theories, studies and researches were the foundation of these methods that there are even close to perfection. Customer connection may not be achieved as strongly, but with integrated brand promotions, intensified television and radio commercials, this connection comes close, almost at hand that Carnival Cruise Line will always be the worlds largest and most known cruise line. ii Reference List “Carnival cruise lines” Wikipedia. 07 Apr 2008 . “36 years of fun”. Carnival. 07 Apr 2008 . Read More