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Celebrity Cruises Case Study

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Celebrity Cruises Case Study

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  • August 2012
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StudyBackground
Celebrity Cruises was founded in 1989 by the Chandris Group, a Greek company originally in the shipping business. In 1997, the company merged with Royal Caribbean International to become part of Royal Caribbean Cruises Ltd. The parent company was determined to keep the two brand’s marketing and operations separate in order for each to target their own market segments. Royal Caribbean Cruises Ltd. operates not only Royal Caribbean Cruises but also Celebrity Cruises, Azamara Club Cruises, Pullmantur Cruises, CDF Croisieres de France, and TUI Cruises (Royal Caribbean Cruises Ltd., 2012).

Celebrity Cruises is situated in the premium market segment between luxury cruise lines such as Crystal Cruises and mass-market lines such as industry leader Carnival Cruise lines. Celebrity Cruises offers an upscale experience at an intelligent price with an added proposition of rejuvenation, enrichment, and connection (Frei, 2005). However, in the highly competitive cruise line industry, Celebrity’s market strategy is indistinct at best, as it struggles to find a ways to create customer loyalty while increasing revenues.

Problem Statement
Celebrity Cruises has an ambiguous marketing strategy without any focus attracting customers but fumbling with customer loyalty.

Analysis
Celebrity Cruises must develop and transform aspects of their operation if it expects to increase market share. Celebrity Cruises foremost must begin by identifying a clear marketing position in order to source potential customers. Celebrity Cruises has done a good job of appealing to prospective cruisers however, their marketing efforts have to be fine-tuned. Celebrity Cruises must be able to direct their marketing efforts on the right market segment, which in their case should be the baby-boomers and multi-generational market.

Baby-boomers comprise a large portion of the U.S. population. Over one-fourth of the total U.S. population in 2006 was between the ages of 42 and 60...