CARNIVAL CRUISE LINES CASE STUDY 1 CARNIVAL CRUISE LINES CASE STUDY By – Pradeepika Ravala MBA 635 – MARKETING AND NEW MEDIA STRATEGY PROFESSOR: RANDA ZALMAN BELLEVUE UNIVERSITY Feb 2, 2020
CARNIVAL CRUISE LINES CASE STUDY 2 CASE STUDY I. CASE RECAP Carnival cruise lines are one of the global leaders in the cruise operation industry.It is headquartered in Doral, Florida. Starting its journey from 1972, they had acquired a fair amount share in terms of market coverage and customer coverage. It is considered as on the best cruise experiences for families irrespective of the destination. The pricing of the journey is competitive. Because of price and other amenities, it is perceived as a perfect appeal for first-time cruisers (Bryce, 2014). Even after being a successful company, the cruise line suffered more than its share in the mishaps over time either by human error or technical errors. Other than the mishaps, the company has also been in the news for various incidents on the board, be it theft, virus outbreak, rape, pirate attack, etc., (Bryce, 2014). The situations of Costa Concordia and Carnival Triumph alone started making the customers second guess on the cruise lines. To make their situation even worse, the company’s addressing both the incidents has added fuel to the fire. It is not that their procedure or adaption is wrong, but because of inappropriate control on the use of media to address the issue has opened the door for negative advertisement turning their positive image into more negative (Bryce, 2014). II. PROBLEM IDENTIFICATION The main problem with the company is that it has lost its reputation, customer base, and even had a decline in profits, increased expenses due to their lack of control over the media, especially social media during crisis management even after having a strong crisis management plan and crisis communication team.
CARNIVAL CRUISE LINES CASE STUDY 3 III. ROOT PROBLEM COMPONENTS Accidents happen, especially with large vessel containers like the cruise lines. How the crisis is handled by the company in front of the public plays a very high impact on the reputation of the company. In the incident of Costa Concordia, the company has not apologized and handled the situation in a sympathetic manner disowning the responsibility. People felt that the company should have owned the responsibility and appropriately handled the situation. The incident became a sensation in TV media (Bryce, 2014). However, during the crisis of Carnival Triumph, the company had been overly apologetic and taking responsibility. They even were the ones intimated the crisis through their social media (Facebook) before any other means of media, paving the way for legal suit and bankruptcy. Even though being transparent and not lying is a very good step, the company ultimately lost its reputation because of its intimation earlier than the rescue operation measures (Bryce, 2014).
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- Fall '15
- Carnival Cruise Lines, cruise line, Holland America Line