The strategy was to convert land vacationers to cruisers The company saw the

The strategy was to convert land vacationers to

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not a cruise business putting them in direct competition with other vacation companies. The strategy was to convert land vacationers to cruisers. The company saw the huge CASE STUDY: CARNIVAL CRUISE LINES | Emre Kose (NUID: 001905188) Page 4 of  8
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untapped potential that the North American vacation market offered; only 16% of the country ever cruised. This was a very successful strategy. Carnival’s success and profitability grew, increasing their percentage of market share in the industry each and every year. Carnival managed costs much more aggressively than its competitors. They scrutinized capital purchases and whether there was true value with the asset. Competitors were paying 25-30% to buy a ship per bed more than Carnival. The parent company utilized economies of scale in purchasing.      2.2 Question and Answer 2.    Should Carnival do “CRM”? What should CRM look like at Carnival? What does CRM mean to Carnival’s management? Carnival should use CRM because it will provide Carnival with a bevy of customer information that they have not used in the past. The ability to access to customers buying patterns, the ability to offer the correct products to the correct customers, higher qualities of service and loyalty programs are just some of the strategic advantages they can gain from correctly implementing this strategy. Carnival can use CRM in the long term to invest in customer loyalty programs and target their top customers with tiered service offerings. These are real products that affect the margins of the company. Some of the technology that exists can be tied together with CRM to be even more successful and strategic like ‘Sail and Sign’. CASE STUDY: CARNIVAL CRUISE LINES | Emre Kose (NUID: 001905188) Page 5 of  8
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CRM means implementing a system related directly to “integrating the systems with the objective of intimately knowing customers to increase loyalty.” This meant shifting its main focus on first time customers to both first time and previous customers.            2.3 Question and Answer 3. How should Carnival go about implementing a CRM strategy? It’s time for Carnival to advance past the standard marketing practices they’ve executed for many years. They currently reach potential customers through the following marketing channels: national TV and cable commercials, newspaper promotions, and field sales forces calling on travel agents. Creating relationships with a variety of target audiences is at the core of CRM,
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  • Fall '14
  • Carnival Cruise Lines, cruise line, Holland America Line, Carnival Corporation, Carnival diversified

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