Key Points

The birth of the modern cruise industry can be dated back to the 1960s. With the Airline industry taking off, shipping companies began to reposition themselves as providers of transportation to that of vacation travel. As the means of travel changed, so did its consumer base. Cruising was dominated by brands that served a more affluent customer base, providing fine dining, formal atmospheres and a high degree of personal service. However this also rapidly transformed the market and brands like Carnival Cruise lines emerged. Carnival cruises is the market leader in the low-price cruise market. They strategically achieved this position by emphasizing on-board activities, and targeting a relatively younger cruiser. However, after acquiring 24 percent of the berth space in North America, it has plateaued in being able to set itself apart from its competitors. The case in question outlines key attributes that assist in determining if it wise that the brand make a lateral shift from their current low-priced market to that of a premium one. This analysis will be assessed by means of a brand strategy, possible marketing initiatives and various concepts discussed in-class. The case goes on to highlight that although Carnival Cruises is a key player in the entry level cruise business, it has room for significant improvement. As more competitors emerge, a “sea of sameness” begins to overtake the minds of potential cruisers. The author investigates the foundations of Carnival’s branding by looking at segmentation, targeting, their brand portfolio, along with the brand positioning and architecture. He goes on to highlight the various attributes that make up the cruising market and how it is affecting Carnival. Characteristics such as substitute products, buyers, new entrants and rivalries are discussed. Substitutes are posed as a challenge; many hospitality