This change will allow for Carnival to distinguish itself from its competitors, provide for a less general market segment, which will make marketing efforts more effective, and allow for continued growth.
Problem Statement.
Carnival Corporation has continuously spent large amounts of money on advertising and promotions, yet the percentage of vacations spent on industry cruiselines remains low at 2%. Another problem is that industry capacity is increasing while the number of customers is remaining stagnant. As a result, a price war may ensue within the industry and Carnival's profitability will decrease. Carnival will also have difficulty as new competitors emerge that cater to specific market segments, since Carnival's products do not target a specific type of customer. The company wants to maintain, or increase, current profitability levels.
Situation Analysis (SWOT).
StrengthsInnovators in marketing, strong ties with travel agencies, superior prices (currently), high levels of quality.
Carnival Corporation is very innovative in its marketing strategies. They were among the first to use television as a primary marketing medium. Carnival has consistently been an industry innovator in this field. The company also maintains strong ties with travel agencies to ensure that potential vacationers are well aware of cruiseline options, specifically Carnival's own offerings. The prices are consistently among the lowest compared to other vacation options and other cruiselines. The high quality of service and product that is present on Carnival's cruises is unparalleled within the industry. The variety of activities, ranging from excellent restaurants to nightclubs, rivals even that of Walt Disney World. .
WeaknessesUnfocused marketing and product strategy.
Carnival's main weakness is that they offer too many destinations for cruises and try to appeal to too wide of a customer base. Too many destinations make it difficult for consumers to associate the brand with a specific area of travel.
