Copa Cruise Case

* Cost cutting through partnership with Benoix and cost structure change to start a price war with FunTours.

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This paper was conducted as a Discussion Board Post assigned by Professor J. Reinke of: Liberty University, Graduate School of Business, Lynchburg, Virginia 24515.

This case was written by Rhonda Engleman and Jisun Yu under the supervision of Professor Andrew H. Van de Ven of the Carlson School of Management at the University of Minnesota. We also appreciate the editorial assistance of Julie Trupke and useful comments of Gyewan Moon and Margaret Schomaker. We gratefully acknowledge Stuart

The Case Study is provided by the Harvard Business School and is considered necessary reading prior to the understanding the responses contained herein. This paper is

Complete the exercise for each segment and total to determine the average annual revenue per customer. Romanian Market | Revenue per Cardholder | | Romanian Market | Revenue per Cardholder | Segment | Annual Income € | % of Potential Cardholders | Potential Cardholders (MM) | Interest Revenue € | Other Revenue € | Annual Revenue €| | (Table A) | (Exhibit 5) | (Case Text: Page 4 @ 18.6M) | (Table A) | (Table A) | (Table A) | Middle Class | 3,000-4,500 | 18.2 | 3.39M | 37.13 | 23.50 | 60.63 | Affluent | 4,500-6,000 | 15.0 | 2.79M | 86.63 | 36.75 | 123.38 | Most Affluent | 6,000+ | 12.9 | 2.40M | 148.50 | 61.25 | 209.75 | Annual Revenue per Cardholder (all customers) | €122.78 | Annual Revenue per Cardholder (Affluent + Most Affluent) | €163.31 | ACQUISITION COSTS Table B provides the basic data necessary to calculate the relative strength and reach of the several acquisition tools available to Alpen Bank to acquire credit card customers. Recreate this table to establish the parameters for implementing marketing communication plans to acquire customers. TOOLS | Unit Cost (€) | Prospects Reached | Response Rate | Qualification Rate | Direct Mail | 0.50 | 2,500,000 | 3.0% | 60.0% | Take One | 0.10 | 2,000,000 | 2.5% | 30.0% | FSIs | 0.05 | 3,500,000 | 1.5% | 30.0% | Direct Sales | 3000/rep | 60,000 | 25.0% | 60.0% | Branch Cross-Sell | 1.00 | 50,000 | 50.0% |

Rob Griffin, the senior vice president and U.S. director of search for Media contacts, a media consulting firm, is faced with the task of optimizing search engine marketing (SEM) for Air France as the company seeks to compete in the hyper-competitive U.S. market. Even though Griffin is satisfied with the performance of his company, he wants to make the team to remain the leading position and provide the results that Air France wanted. At the time of the case, SEM has become an advertising phenomenon, with North American advertisers spent $ 9.4 billion in the SEM channel, up to 62% in 2005. In the past, Media contacts h had concentrated on Google, Microsoft, and Yahoo for the search engine

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.

There are nine main cruise line, these include Ambassador International, Carnival Corporation, Crystal Cruises, Disney Cruise Lines, Louis Cruises, Regent Seven Seas Cruise Lines, Royal Caribbean Cruises Ltd., Silversea Cruises and Star Cruises (Cruising). The major cruises out of these are Royal Caribbean and Carnival Corporation. These cruises line are known for using their popularity to their advantage by raising their prices at any given time. But on the other hand, all the ships are comparable. All passage can anticipate the equivalent experience on board. In addition Rivalry is at a peek because getting rid of a cruise industry cost more than to just keep into development.

This research is being submitted on March 9, 2014, for Dr. Reshowrn Thomas’s BUSI-604 International Business course.

The final uncontrollable force affecting the cruise line industry is competition (Montalvo, 2007). This is probably the least influential force since 91% of the cruise line industry is made up of three companies-Carnival, Royal Caribbean, and Star. These three organizations are world-famous and have developed the cruise concept to the point that there is a cruise that will fit just about every person’s destination dream and budget reality.

This document is authorized for use only by Albertina Dias at ISG Business School until September 2013. Copying

Carnival Cruise Lines is the flagship brand in a portfolio operated by its parent company, Carnival Corporation & plc. Carnival Corporation has headquarters in Miami, Florida and London, England. Carnival Cruise Lines ships carry more than 60,000 passengers a week. The cruise line operates 1,400 voyages per year with a fleet of 22 ships, and serves approximately four million passengers per year. Carnival Cruise Lines has 3,800 shore side employees and 33,500 shipside employees. The cruise line conducts voyages ranging from three-to-sixteen days in length to some of the most popular vacation destinations in the world, including The Bahamas, Caribbean, Mexican Riviera, Alaska, and Hawaii.

Carnival Cruise Lines is the largest cruise company in North America and carries more than 60,000 passengers a week. The Carnival experience is the standard against what past cruisers judge their later cruise experiences. Carnival has captured the "fun" psychographic and has a strong reputation for an enjoyable, relaxed cruise. Furthermore, Carnival has a strong market expansion strategy for selling the mass-market cruise category and first-time cruisers. They have a clear vision and knowledge about the industry and a commitment to their brand essence, which is fun. Also, as an extension to their branding of the "fun" ships they are the low-price leaders. Because of their strong brand image they are able to achieve double-digit growth in

SUBMITTED TO PROF. NEIL COHEN School of Business and Public Management The George Washington University