A Case Analysis Presented to the Faculty of College of Hospitality & Institutional Management of Our Lady of Fatima University In a Partial Fulfillment of the Requirements for the course Hospitality Organizational Management (HRMPS 15)
Zoila S. Pagaacita
Mr. Marc Gerald Pajela
February 17, 2013
PART I. THE ISSUE
The main issue of the case is how the Carnival Cruise Line can improve their “Fun Ship” strategy without losing its original meaning. They are having difficulties on how can they innovate some of their facilities aboard the ship and their services to proved to their competitors and the industry that they’re still the Fun Ship, and this title is only belong to their company. PART II.SUMMARY OF THE CASE
It started when Ted Arison purchased secondhand ships. The Mardi Gras was then first ship of Carnival. Rapid shrinking transatlantic passenger base, opportunities shipping companies repositioned their service from transportation to vacation travel. The lines that led the transition were Princess Cruises (1965), Norwegian Carnival Cruise Line (1966, now the Norwegian Cruise line, NCL), Royal Caribbean Cruise Line (1969, now Royal Caribbean International, RCI), and Carnival Cruise Line (1972), paced the industry. The competition for contemporary customers was fierce, particularly between Carnival and RCL. Carnival Corp. won a battle with RCL to gain ownership of Princess Cruises in 2003; five years earlier Carnival acquired the Cunard Line in a move that sent a shockwaves throughout the industry of its symbolic significance as the venerable, upscale 150-year-old British line was scooped up by the American company powered by the Fun Ship. Carnival emerges as the largest cruise company in the world, for at least one brand positioned in each four main segments. When Carnival and RCI pass each other the RCI cruise directors would launch a broadside “There goes the Kmart of the Caribbean”. Hardware competition (ship themselves) begin when RCI launched the first mega ship Sovereign of the Seas, (1988), the Carnival answered when their launched the Fantasy (1990). RCL launched the Voyager of the Seas (2000) with rock climbing wall which became a signature element for RCI, in year 2000 they also launched the Get out there promotions. This campaign was intended to reposition the brand by targeting vacationers who had an explorer mindset and focusing on active and adventurous dimensions of experience. The Carnival continues to emphasize its Fun Ships positioning strategy. By anchoring the brand with the Fun Ships positioning strategy, Carnival built an unmatched value proposition on the promise of fun- a promise that the company’s marketing strategy for at least 30 years. Today’s Carnival a label that company executives used to underscore changes in the brand, was different in a form, but not necessarily direction, than the Carnival of the past. Carnival continued to promote its augmented fun image with the biggest media buy in the company’s history. With the slogan “Million Ways to Have Fun”, this campaign was intended to build the brand by showcasing product enhancements. PARTIII.HISTORY OF COMPANY
Carnival Cruise Line is one of the most successful vacation cruise lines in the world. It was established in the early 1970s and by the 1990s came to ferry more passengers than any other company. Carnival Cruise Line was established in 1972 by Ted Arison. He built the company as a cost-effective, short-term cruise line. The first ship introduced to Carnival was the Empress of Canada, purchased the same year (cited http://www.travels.com/vacation-ideas/cruises/history-carnival-cruise-line/). Although the name Carnival Corporation didn’t come into existence until 1994, the foundation for the company was laid when its flagship brand, Carnival Cruise Lines, was formed in 1972 by cruise industry pioneer, the late...