Case study # 4

Cruise Ships – Not Just For Grandma and Grandpa Anymore

Ha Phuoc VuM997Z244

Nguyen Tran Thao BienM997Z213

Bui Duy DucM997Z202

Patlada Sae-Ching (Nan)M997Z240

Nuntanut Sae-Ching (Vee)M997Z236

Thai Luong ThuM997Z221

Group 6 Members

Outline Introduction

The History Of The Cruise Line Industry Types of Cruise Ship

Consumer behavior analysis Culture factor Social Factors Personal Factors

4P’s in marketing

Conclusion

The History Of The Cruise Line Industry

• Ever since the creation of

human, we have been

fascinated with our seas and

oceans. Used primarily to

explore new lands, then for the

transportation of cargo as our

world began to become

industrialized and started to

trade with foreign lands.

• With industry came wealth with

people wishing to spend their

disposable income to pursue

more adventurous forms of

vacation and excitement. Our

instinct to visit parts of the world

only read about from these

explorers of the past was now a

reality once again.

The History Of The Cruise Line Industry

• In 1818 the Black Ball Line operating

out of New York was the first shipping

company to offer a scheduled

passenger service from the United

States to England. Trade and leisure

expanded together, which fuelled

through demand the manufacture of

larger, more luxurious ships such as

the Titanic which has its own unique

history all to itself.

The History Of The Cruise Line Industry

• The 1st and 2nd world wars seen the

current cruise ships of the time

commandeered as troop carriers and

after the wars as transportation for the

displaced refugees seeking a new life

in foreign lands. The industry

recovered quickly as the US

government heavily subsidized the

building of cruise ships with the view to

possible redeployment in the events of

future world conflict.

The History Of The Cruise Line Industry

• Although huge breakthroughs within the aviation industry

dented the surge in transatlantic journeys the 1960’s

witnessed the beginning of the modern cruise ships. People

wanted to relive the glory years of the past and could now

have short vacation cruises by connecting from the now readily

available flights on offer. You could actually argue the

breakthroughs in aviation have recreated and rekindled the

cruise line industry of today.

The History Of The Cruise Line Industry

• With fantastic luxury and top class entertainment onboard,

today’s cruises have seen the voyage itself being the

attraction rather than the geographic cruise destinations.

Gone are the days of catering for the elite, this industry is

geared up for the masses and is now one of the fastest

growing sectors of the travel industry.

Types of Cruise Ship

Types of cruise ships and recreational vessels designed to satisfy the most

varied preferences and expectations.

Mainstreams Cruise Ship

Mega Cruise Ship

Small Cruise Ship

Ocean Cruise Ship

Luxury Cruise Ship

Adventure Cruise Ship

Expedition Cruise Ship

River Cruise Ship

Consumer analysis Culture factor

Social Factors

Personal Factors

Social Factors

Culture

Branches of culture

The Social class

Culture Culture is the most important factor determinine desires and

behavior of a person.

A modern culture, tourism is known as a form of

entertainment and discovery necessary to satisfy the

demands of people in the society.

People travel because of the passion, hobbies, the overall

impact of culture, not just because they are rich.

Branches of culture

Each culture has its smaller branches culture

make more peculiar characteristics of the

extent of social integration for its members.

People who is interested in the trip

cruises

The Social class

High society

Middle class

Lower social class

The potential customers are often people from the middle class and high society class

The Social class (cont’d) High class customers with premium price

Advanced services

Long distances

Large vessels with modern and luxurious equipments

Middle class customers with cheaper price

The vessels with smaller size

Short distances

Casual services

Social Factors

+ Family

Youth atmosphere (fun youth

counselor).

Public facilities for family

(extensive pool, nursery room)

Kids programs (infants/toddler

group care)

Social Factors (cont’d)

Active sport facilities (ice

skating, basketball court,

mini golf, rock wall climbing)

Economic price

i.e. Royal Caribbean

International, Carnival Cruise

Line, Disney Cruise Line

Personal Factors

Singles : want to have non –

stop entertainment

Younger couples : enjoy

sports and educational

activities

Honeymooners : romantic

atmosphere

Personal Factors

Families with young

children : large and

multifunction room

suites, supervised

activities

Elderly peoples :

sedate vacation

4P’s in Marketing

Product

Place

Price

Promotion

Product

• Improve physical facilities

Design much bigger and steadier ship

Provide many facilities such as casinos, shopping

arcades, theaters, health spa, internet access, etc.

Product

• Provide various type of cruise in order to meet demand of each

lifestyle group.

Contemporary/Resort class

3-7 days with casual environment.

Organized activities and sports.

Provide both sit-down and buffet style meals.

Product

Premium

7 days or longer with premium quality.

Offer more space per passenger

Offer many facilities such as theaters, cigar

bars, etc.

Premium food and beverage.

Product Luxury

Greater food and beverage

Greater entertainment options

Luxurious accommodations

Exclusive

Yacht-like environment

Only 100-200 passengers

Great service

Price

• Offer wide range of prices to suit with each social groups.

Shorter and cheaper cruises for price-sensitive

customers.

Premium quality with high price for well-to-do people.

Place

• Locate ships in more ports around the world to draw

passengers from a wider geographic such as Alaska, Asia,

Caribbean, Europe, etc.

Promotion

• Offer discount to past customers in order to generate

repeat business.

• Free cruises coupon booklets for onboard purchases such

as drink purchases, spa usage, etc.

• Provide travel insurance with no extra charges.

• Carnival will be the exclusive cruise line advertiser during

the 2010 Winter Olympic Games.