In april of 2009 elp equities is considering

In April of 2009, ELP Equities is considering purchasing shares in Royal Caribbean
International but will need to know more information regarding how their new cruise line, Oasis
of the Seas, will be launched. Multiple factors such as the maturity of the market and the
uncertainty of consumer preferences need to be considered in order to successfully launch Oasis
of the Seas. This means that the problem Andrew Gonzalez must consider is: What is the optimal
marketing plan that Oasis of the Seas must develop in order to gain financial success as well as
improving brand awareness in a time of a recession?
Decision Criteria
The decision criteria identified are: ensuring financial feasibility relating to the utilization
rate and operating profit, the brand awareness generated from the launch, and how well Oasis is
able to differentiate itself other than being the largest cruise liner. More analysis regarding
decision criteria and the explanations relating to alternatives can be found in Exhibit A.
Recommendation
Oasis of the Seas should target the Explorers and Marines segments (all segment bases
are detailed in Exhibit B). It will position itself as a vehicle for its passengers to experience a
variety of locations and different cultures. For Marines, Royal Caribbean should highlight the
myriad of activities which will be available on the ship and at the different destinations.
This proposal states that the Oasis of the Seas will be a premium ship (however, it will
have a select amount of luxury rooms available). It should operate in the developing routes
mentioned in the case -- namely Europe (including the Mediterannean) and Asia (South Pacific,
the Orient, and South-East Asia) -- on a rotating basis. It will be the only premium ship operating
in these routes (refer to Exhibit 7).

Internal Analysis
Marketing Strategy : Royal Caribbean has positioned itself as “The Nation of Why Not”.
With destinations around the world and filled with amenities, Royal Caribbean encourages its
passengers to say “why not” to every experience. With the majority of their cruise ships
categorized as a “first class cruise line” or “contemporary”, Royal Caribbean focuses on offering
more affordable, casual, and value-oriented vacations at a greater capacity (refer to Exhibit 10,
Exhibit 3).
Product: Royal Caribbean is one of the top three cruise lines in the world. They own a
fleet of 42 cruise ships, including 36 ships that travel throughout North America and 6 ships that
travel around the rest of the world. The majority of their cruise ships are categorized as
contemporary, with a small group in North America in the premium category, and two ships in
the luxury category (refer to Exhibit 7). As is common in the cruise liner industry, Royal
Caribbean’s most popular destination remains the Caribbean and the Bahamas. Royal Caribbean,
as well as the rest of the cruise liner industry are in the maturity stage of the product life cycle,
meaning sales are at their peak and cruise liners are trying to rejuvenate their cruise ships by
adding features or repositioning them (refer to Exhibit C).