Carnival Cruise Lines Charting a New Brand Course - Case Study Example

Consumer behavior Step 1: Background Carnival Corporation is among the best and the largest companies that provide leisure travel in many parts of the world. It provides the travellers all over the world with exceptional cruise services at a value which are exceptional. The services offered by the company include restaurant services, spa, and gym and fitness facilities among other services (Biehn, 2006). Some of the portfolio for the company in the world includes P and O Cruises which are found in the United Kingdom, Princes Cruises found in the North America and also the Carnival Cruise Line among the others. Besides, the Carnival Corporation still has a tour company which is made so as to complement the cruise operations. The carnival cruise company has almost 101 ships which pay a visit to around 700 ports globally. The management has been expanding the services of the company where it has been extending its operations. For instance, around 15 ships which are new are planned to be added to the Carnival Corporation cruise by the year 2020. Besides, the Carnival Corporation has more than 120,000 employees in all over the world, and also its ten brands of the cruise line usually attract almost 11 million individuals every year, which is around 50% of the total cruise market in the whole world (Dev, 2006). On a daily basis, more than 277,000 always sail abroad by using the cruise ships of the Carnival Corporation. However, the ten leading brands of the Carnival Corporation usually provide a broad range of transport experiences for a large number of guests who have different languages, backgrounds, and also different cultures. Furthermore, the broad services which are provided by this company in most cases have a good impression to the travellers since they offer extraordinary transport at an outstanding cost (Knapp, 2011). In the year 2015, the total revenue which was collected Carnivore Corporation was amounting to 15.7 billion American dollars, thus making it be among the top 200 companies in the Fortune list of 500. Also, the Carnival Corporation is in position 311 in the FORBES 2000 list of the largest and also powerful Companies in the global world. On the side of earnings, in the year 2015, the Carnival Corporation had higher earnings by 40 percent as compared to the year 2014. Besides, the Carnival Corporation Company has its headquarters in various parts of the world which include London, Florida, England and Miami (Weaver, 2005). Also, in the year 2013 this company established and headquarters in the Asian continent in the place known as Singapore. However, the stock for the Carnival Corporation has been recorded on both the stock exchange in London and the stock exchange of New York. However, sometimes the Carnival Corporation collaborate with the Carnival PLC Company to operate as a dual company where they combine their businesses together hence functioning as a single entity. Also, a combination of these two companies has been facilitated by a contract agreement with these two legal entities (Biehn, 2006). Furthermore, the shareholders of these two companies usually have similar economic interests and also similar voting interests, even though their shares are always listed stock exchanges which are different. Step 2: Theory The Roy Morgan Lifestyle segmentation system. Roy Morgan has been making use of lifestyle in the process of segmenting its market in the industry. Considering the nature of cruise industry lifestyle forms an important part in the course of segmenting the targeted market. The cruise industry is segmented based on specific characteristics that are used in defining the vacation experience and onboard lifestyle. The lifestyle determines the level of luxury where the prices are usually high for the luxurious services (Brida and Zapata, 2009). Roy Morgan makes use of lifestyle in the process of coming up with the necessary pricing strategy that can help in making the services of the company affordable. The first class cruise, which is also referred to as the mass market lines due to the affordability where the corporation has been looking for ways of making sure that the services offered are made affordable to the customers targeted. Lifestyle segmentation entails the use of lifestyle of the targeted customers and their interests to segment a market. It has some psychological aspects as the buying behaviour of the consumers can be determined by their lifestyle where customers try to purchase services that are in line with their lifestyle in the society. The use of lifestyle in the process of segmenting has been used in coming up with premium cruise lines that have a resort-like style vacation (Wood, 2004). The marketing manager has been using lifestyle to make sure that the different class of people is satisfied through meeting their needs. The consumers in any market are affected by the prices where the affordability of the services offered is critical in any market. The company has tried to make sure that many customers are attracted through coming up segments based on the lifestyle of the customers. The lifestyle of the consumers is entirely determined by the social class where the financial status is crucial. The behaviour of consumers differs depending on the ability to pay for the services offered where the knowledge of the lifestyle is crucial. The segmentation based on lifestyle has helped the company meet the interests of the consumers depending on their lifestyle. Different consumers have different lifestyles hence segmenting the market based on the lifestyle can be crucial in meeting the varying needs of the consumers. The lifestyle differs as the consumer has varying personality and ability to pay for the services offered in the market. Carnival cruise offers services that are suitable for various customers who have different lifestyles. The Carnival cruise has been providing different levels of luxury for the consumers to make a choice depending on their way of life. The cruise market is segmented to help in making sure that the consumers with similar lifestyles are grouped together where they are provided with the services that can meet their needs. The lifestyle based segmentation is what determines the level of personalization of the cruise services offered. Through the use of lifestyle, the company has managed to offer the best services to luxury cruisers who seek high-quality services in their vacation (Johnson, 2002). The luxury cruisers are usually able and willing to pay high prices due to their lifestyles as they seek high-quality services and excellent experience. Benefits of lifestyle in segmenting market Lifestyle based segmentation has proved to be useful in various ways. For instance, through lifestyle segmentation, the needs of the consumers can be best met through grouping the customers with similar lifestyle together. As a result, the company can be in better position to offer services that can be afforded by the targeted customers. The lifestyle segmentation system is critical to Carnival cruise, as it has managed to meet the diverse needs of the customers (Wood, 2004). For instance, the company has luxury lines that are aimed at delivering value to the customers where they are given a chance to visit exotic destinations. The clients who are not able to pay for the luxurious services are also provided with the services that they can be in a position to pay. Services provided can be personalised as the customers targeted common and similar needs hence it can be easy to meet their needs. Besides, unique product features can be included as customers’ needs are specific hence tailoring the services to match the demands of the consumers can be possible. The companies making use of lifestyle based segmentation are likely to achieve competitive advantages as because of the ability to meet the market demands in a better way (Gulliksen, 2008). Besides, the product can be made affordable for the use of lifestyle segmenting considers the income and personality of the consumers. The market segments Premium cruise segment The primary of this segment is to ensure that the services provided are affordable to the low-income consumers. The premium cruise lines provide various services, amenities, and destinations that most travellers can be in a position to afford. The segmentation process that results in this market segment entails consideration of income, the social class, personality, and lifestyle among factors. The primary aim of segmenting the market while considering the above factors is to make sure that the demands of clients are met (Chronopoulos, et al. 2005). The premium cruise lines segment covers many customers as the targeted consumers of this segment are middle and low-income earners where the services offered are of great value though not much luxurious. It is the largest contemporary segment that has managed to meet the demands of the cruise market. The premium cruise line segment considers the lifestyle of the customers rather than the age in making decision on the services to offer. The pricing strategy adopted in this segment puts into consideration the profile of the clients to make the services affordable. Luxury cruise segment The cruise line market has also been segmented targeting the high-income consumers where luxurious services are offered to the customers. The primary target of this segment is the clients who are looking for personalised services, highest quality of services and who are looking for luxuries cruising experience. The services provided are usually expensive hence the primary target of this segment is the high-income earners (Weaver, 2005). The luxury cruise segment is the most expensive segment that delivers great value through exclusive pricing that can only be afforded by few customers in the market. The primary focus of this segment includes consumers who prefer special cruising styles that include expedition-style cruises, and sailing ships. The speciality lines provide unique experiences that are adventurous and educational to the guests. The services offered sometimes are surprisingly informal where the clients are taken to world’s unspoilt places. Step 3: Application The marketing strategy for Premium cruise segment The marketing strategy that I can use for the Premium cruise segment includes offering products and services that are affordable. I can ensure that the pricing strategy adopted is pocket-friendly with the aim of meeting the needs of customers (Mullenix, 2011). The market positioning that I can adopt to make sure I maximise the sales entail availing the services to the low-income earners as the primary target market. I can ensure that the services offered are available to the customers through availing the necessary information concerning the services in the segment. Marketing mix Product: in the process of increasing sales in the premium cruise market, I can ensure that the products are innovative and able to meet the needs of the customers better. Price: the price that I can adopt to increase sales is pocket-friendly. Considering the income of the targeted customers, low pricing can increase their affordability. Place: I can make sure that I distribute the products in places that can be accessed by the customers while keeping in mind the targeted customers. Promotions: I can ensure that I advertise the services offered with the aim of making them known and improving public relations. Marketing Strategy in Luxury cruise segment In the process of making sure that the sales in this segment are improved, I would ensure that I offer luxurious services that can meet the interests of the targeted customers. The marketing position would make sure that the rich clients that want to maintain their lifestyle can access the high-quality services (Kwortnik, 2006). Considering the fact that the targeted customers are high-income earners offering expensive services can be crucial to making sure that they are only afforded by high-class people in the society. Marketing mix Prices: I would adopt a high pricing strategy as the prices in this market segment need to be high to make sure that only the rich can afford. Products: I can ensure that the products are luxurious and able to meet the needs of the customers targeted. Besides, I would make sure that the products are personalised while considering the interests of the clients. Place: I can adopt selective distribution with the aim of distributing the products to high-income consumers who can afford the services offered. Promotion: making use of social media platforms can be crucial in making the services offered popular where I can ensure the targeted customers are aware of the special services offered. References Biehn, N. (2006). A cruise ship is not a floating hotel. Journal of Revenue and Pricing Management, 5(2), 135-142. Brida, J. G., & Zapata, S. (2009). Cruise tourism: economic, socio-cultural, and environmental impacts. International Journal of Leisure and Tourism Marketing, 1(3), 205-226. Chronopoulos, C., Chevalier, P., Picard, I., Kaldas, A., Carabin, P., Holcroft, G., & Lines, C. C. (2005, May). The plasma arc waste destruction system—one year of maritime experience. In Proc. 24th Int. Conf. Incineration and Thermal Treatment Technologies (Galveston, TX, USA). Dev, C. S. (2006). Carnival Cruise Lines Charting a New Brand Course. Cornell Hotel and Restaurant Administration Quarterly, 47(3), 301-308. Gulliksen, V. (2008). The cruise industry. Society, 45(4), 342-344. Johnson, D. (2002). Environmentally sustainable cruise tourism: a reality check. Marine Policy, 26(4), 261-270. Knapp, C. L. (2011). Contract Law Walks the Plank: Carnival Cruise Lines, Inc. v. Shute. Nev. LJ, 12, 553. Kwortnik, R. J. (2006). Carnival cruise lines burnishing the brand. Cornell Hotel and Restaurant Administration Quarterly, 47(3), 286-300. Mullenix, L. S. (2011). Carnival Cruise Lines, Inc. v. Shute: The Titanic of Worst Decisions. Nev. LJ, 12, 549. Weaver, A. (2005). Spaces of containment and revenue capture:‘super-sized cruise ships as mobile tourism enclaves. Tourism geographies, 7(2), 165-184. Wood, R. (2004). Cruise ships: deterritorialized destinations. Tourism and Transport, 133-146. Read More