Carnival Harvard Case

1548 Words Feb 1st, 2015 7 Pages
Alicia Trezza
Zak Jones

Carnival Cruise Lines
1. Conduct a SWOT analysis for Carnival: what are its strengths, weaknesses, opportunities and threats? In doing so, please evaluate its major competitors.
Strengths
- Carnival has 75 ships in its fleet and is continuing to brand the company as the “fun ships”
- There are large barriers of entry into the cruise businesses. Ships are extremely costly and time consuming to build.
- Carnival cruises provide a vacation that includes all activities, food, beverages and transportation to multiple destinations in one low price, appealing the budget friendly cruisers.
- Carnival builds it ships specifically for entertainment and fun, the most important factors people are looking for when
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With a variety of activities from rock climbing, pools, and casinos, Carnival trips have activities for everyone. Additionally, Carnival recognized the shift in cruise demographics from the start. In the 1970s, cruisers were generally older, however, there was a growing trend of young singles and young families taking cruises. Carnival developed cruises from the start with these new customers in mind.

3. In a succinct manner, state Carnival's value proposition?
Carnival’s value proposition was to be a cheaper alternative to land vacations at all inclusive resorts while providing a variety of activities and destinations in one trip. Carnival was the “fun ship”, providing contemporary vacationing to first-time and repeat cruisers. Because customer retention is low, Carnival uses a more traditional style of marketing, focusing on the short-term customer.

Each brand under the Carnival umbrella remained independent, especially in respect to sales and marketing. This encourages the sister brands to remain competitive with one another and market their unique value propositions. However, the brands worked together to drive synergies and economies of scale.

4. Currently Carnival is utilizing a mass marketing strategy. If they were to change tactics and implement a segmentation strategy, which segments should they focus on and why? What would you recommend they do: stick with the mass marketing strategy or switch to a segmentation strategy?

If Carnival

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