Carnival cruise lines early marketing strategy grew out of necessity. The age of Mardi gras made low fares necessary. At that time, carnival did not have a national advertising campaign in fact no cruise line did. Dickinson adopted the fun ships moniker for carnival after seeing a brochure for the Boehme , which commodore cruise lines promoted as the “Happy ship”. Cruise marketing at the time tended to focus on destinations, rather than the ships themselves, and promoted cruising as a high brow, luxurious experience. Dickinson reasoned that fun was what people really sought in a vacation. By promoting the Mardi gras as a fun ship experience. Carnival would send a message that was unique in the cruise industry. Perhaps more important, by anchoring the brand with the fun ships positioning strategy, carnival built an unmatched value proposition on the promise of fun and a relatively young middle class clientele was attracted to the fun ships theme (entertainment experience). Carnival pursued first time cruisers as part of a concerted market development strategy. To demystify cruising for the uninitiated, carnival crafted marketing communications that articulated the fun ships image by showing the ships and their entertainment architecture as well as by featuring guests dinning, dancing, playing, swimming, sunning, socializing –having fun- at an affordable price. (So we can say media and word of mouth among peers and clients played a major role in promoting the image and well being of this company). Carnivals pricing continued to lead the industry with an average price point per person per day of about 175$, compared to an industry average of 235$ (we can say that carnival used this strategy to attract a big market share and of course that is due because she wanted to be the leader in the market but pricing below your competitor also known as predator pricing- which is a voracious strategy to eliminate your competitors in the market can be jurisdiction to the Sherman act and be bounded by ethical and legal questioning and unpredicted circumstances). Driving this change according to Bob Dickinson was carnivals vision: “To consistently provide quality cruise vacations that exceed the expectations of our guests”. Carnival had a large field sales force for who called on travel agents, as well as a growing direct sales effort that included an inbound channel and outbound channel of personal vacation planners who followed up on leads obtained through the inbound channel. Carnival was Careful not to be too aggressive in its direct sales effort. Some agents in particular the midsized Internet agencies began to rebate part of their commissions to customers to gain a price advantage in the market- a practice that led to channel conflict. Carnival responded with an advertised price policy which meant agents could no longer promote a price lower than carnivals advertised rice. Since carnivals target
market was broad consumers 25 to 54 years old who made 40,000$ or more per year than carnivals marketers believed that the product was popular with families, honeymooners, singles and senior. On this stand Mr. Dickinson argued that the
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- Spring '17
- Jane smith
- Carnival Cruise Lines, Holland America Line, Carnival Corporation