The strategy was to convert land vacationers to

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)
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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)
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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,