case study # 4 cruise ships – not just for grandma and grandpa anymore

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  • Case study # 4Cruise Ships Not Just For Grandma and Grandpa Anymore

  • 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 4Ps in marketing Conclusion

  • The History Of The Cruise Line IndustryEver 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 IndustryIn 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 IndustryThe 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 IndustryAlthough huge breakthroughs within the aviation industry dented the surge in transatlantic journeys the 1960s 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 IndustryWith fantastic luxury and top class entertainment onboard, todays 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 ShipTypes of cruise ships and recreational vessels designed to satisfy the most varied preferences and expectations.Mainstreams Cruise ShipMega Cruise ShipSmall Cruise ShipOcean Cruise ShipLuxury Cruise ShipAdventure Cruise ShipExpedition Cruise ShipRiver Cruise Ship

  • Consumer analysis Culture factor

    Social Factors

    Personal Factors

  • Social Factors Culture Branches of culture The Social class

  • CultureCulture 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 cultureEach 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 (contd)High class customers with premium price Advanced services Long distances Large vessels with modern and luxurious equipmentsMiddle 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 (contd) 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 FactorsSingles : want to have non stop entertainment Younger couples : enjoy sports and educational activities Honeymooners : romantic atmosphere

  • Personal FactorsFamilies with young children : large and multifunction room suites, supervised activities Elderly peoples : sedate vacation

  • 4Ps in Marketing Product Place Price Promotion

  • ProductImprove physical facilities Design much bigger and steadier ship Provide many facilities such as casinos, shopping arcades, theaters, health spa, internet access, etc.

  • ProductProvide various type of cruise in order to meet demand of each lifestyle group. Contemporary/Resort class3-7 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

  • PriceOffer 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.

  • PlaceLocate ships in more ports around the world to draw passengers from a wider geographic such as Alaska, Asia, Caribbean, Europe, etc.

  • PromotionOffer 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.

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