Cruice Ships Not just for Grandma and Grandpa anymore

CASE 4 MARKETING MANAGEMENT GROUP 06

CONTENT

• CRUISE HISTORY• MARKET SEGMENTATION• MEET CUSTOMER’S EXPECTATION• MEASURING CUSTOMER’S SATISFACTION• QUALITY MANAGEMENT• CUSTOMER’S RELATIONSHIP MANAGEMENT• FUTURE CHALLENGE & OPPORTUNITIES• QUESTION & ANSWER

INTRODUCTION

A cruise ship or cruise liner is a passenger ship used for pleasure voyages, where the voyage itself and the ship's amenities are part of the experience. Its like a floating hotel, with a complete hospitality staff in addition to the usual ship's crew. Cruising has become a major part of the tourism industry, with millions of passengers each year.

INTRODUCTION (Cont’d)

INTRODUCTION (Cont’d)

• But in 1960’s with the arrival of jet age it was no longer fashionable, practical, or economical to travel by boat.

• However in 1974, to boost a declining market, Cunard Line Limited, the company running transatlantic travel service between New York and London with the Queen Elizabeth II, hired international celebrities to perform cabaret acts aboard ship.

INTRODUCTION (Cont’d)

• The QE2 Cruise liner fastest of it time in 1970’s which was fast enough to whisk passengers from New York to London in 4 days ushered in the concept of "one-class" cruising, as the ship's facilities and amenities were made available to all passengers. Regardless of the staterooms or berths passengers had booked, they enjoyed the same service, menus, entertainment, and activities. The idea caught on, and the general public began taking cruises for short vacations, rather than solely as a means of transportation.

INTRODUCTION (Cont’d)

–The cruise industry broke new ground again in the 1980s launching a fleet of giant passenger liners, some capable of carrying over 2,000 people fully equipped with casinos, running tracks, spas, champagne and caviar bars, basketball courts, private stateroom verandahs, and three-story nightclubs. Soon people were interested in the whole experience of just being on board rather than using it as a mode of transportation.

INTRODUCTION (Cont’d)

Not too long ago, a sea cruise was widely viewed as a rather dull and sedate vacation alternative, appealing mostly to well to do elderly people who enjoyed playing shuffleboard, sipping tea, and dressing for dinner.

But, the perception has changed ...

INTRODUCTION (Cont’d)

Cruising has become a major part of the tourism industry, with millions of passengers each year.

MARKET SEGMENTATION

Demographic Segmentation

Demographic Segmentation is the most common approach in market segmentation.

The variables are:• Age

P&O princess launched “ Ocean Village” cruises. They are targeted at younger couples who enjoy sports and educational activitives

• Gender (male/female)• Occupation and Income

Affects the ticket that bought by consumers.The ticket was categorized to : Resort class, Premium, Luxury, or Exclusive

• Household (family - style) sizeOffering multiroom suites and lots of activities for various age.

Psychographic Segmentation

Life styleSome lines offer “ Romantic” cruise targeted at honeymooners.

While the “Health” cruise offer classes with research scientist for Diet, Weight Loss and Long Term Health.

AIO - activities, interests, and opinions

Geographic Segmentation• Country

Ship were located in more ports around the world such as AMT American Express Travel offer one trip around the world cruise divide the itinerary into sections allowing the flexibility of booking several sections or the entire cruise depending on how long you want to spend at sea and the places you want to visit

Customer Expectations

Customer expectation will be influenced by a customer's perception of the product or service. The level of customer service is also a factor, and a customer might expect to encounter efficiency, helpfulness, reliability, confidence in the staff, and a personal interest in his or her patronage. If customer expectations are met, then customer satisfaction will be result.

Customer Expectations

Customer expectation can be created by :- previous experience- Advertising- Hearsay- awareness of competitors- brand image

It is too difficult to create a product that will satisfy everybody, that is why we should focus on a segment of the total market.

“Grouping people according to their similarity related to a particular product category”

Measuring Customer Satisfaction

• Encourage Customer ComplaintsThe complaint handling systems during conferences and meetings, in annual reports, newspapers, association circulars, videos, audio tapes, letters, press releases, speeches, training sessions and via electronic

Measuring Customer Satisfaction

• Seek to Delight Their Customers

Team leaders look at and discuss variances Additionally, employees share ideas for ways to resolve complaints creatively within or below company norms

Measuring Customer Satisfaction

• Understand Customer ExpectationsSurveys assess customer satisfaction with existing services, delivery of services, helpfulness of employees, and overall performance of the organization

Measuring customer satisfaction

• Manage Customer ExpectationsUsing customer feedback to understand customer expectations and needs

• Know How to Say Noconvey concern technique--calling customers and telling them the company understands; giving the customer the best explanation they can; and being open and honest with customers concerning laws and policies of the organization

• Keep the human touch

Quality Management

• Based on customer segmentation, firms continuously improving the quality of ships and service: invested heavily in building many new ships which bigger, steadier incorporated amenities such casinos, shopping arcades, theaters, spas, etc.

• Based on customer profitability to expand the services: changing in ship design, onboard amenities and activities, food and beverage options

Quality Management

• Diversify services to satisfy every customer needs and desires: shorter and cheaper cruises for more price sensitive customer, cruise for young couples and family, and other self-design tours

Customer Relationship Management (CRM)

• CRM is the process of managing detailed information about individual customers and carefully managing all customer “touch points” to maximize customer loyalty. That includes:

1. Attracting 2. Retaining Customers 3. Growing customers

4. Building loyalty

Attracting and Retaining Customers

• Invest the physical facilities, casinos, shopping arcades, theaters, health spas ,internet access in every stateroom suites with private balconies, skating rink…

• Shorter & cheaper cruises attract more price-sensitive customers

• Ships were located in more ports around the world from Southampton in the United King Dom to Hong Kong, Majorca, Australia, Galveston, Texas…

Attracting and Retaining Customers (cont’d)

• Ship designs onboard amenities & activities, food& beverage options, itineraries, and prices were all tailored to specific demographic, social, and lifestyle groups

• Cruise is targeted: Young couples are served : scuba diving, gourmet cooking,

wine tasting… Honeymooners , singles crowd… Families with young children : multiroom suites, supervised

activities..

Cruise’s Customer Grows

An example that happened in Seattle :

In 1999 cruise ships made six trips out of Seattle serving 6,600 passengers. By 2002 those numbers grew to 75 trips and a quarter million passengers. The numbers more than doubled again by 2005 with 169 sailings and 800,000 passengers. And in 2008 the number of trips jumps to 211. www.king5.com

Building Loyalty

• Listening to customers• Increase the growth in passenger bookings to fill

the growing capacity• Have raising 16 new ships into service to 94 ships• Through industry connections with major cruise

lines, Cruise fully customize a luxury cruise vacation for audience. And perhaps the best part is that Cruise promotion will become an annual event that everyone will look forward to.

Building Loyalty

• Providing software, special computer links or hardware to customers to help them manage key functions adds to retaining customers.

Future Challenges

The world cruise shipping industry faces a challenging time ahead as a number of problems continue to restrict industry growth, mainly :

• the continuing public perception of a terrorist threat• reluctance by some market sectors to go on cruises• the image of cruises• the availability of suitable itineraries• opposition from environmentalist groups in certain

areas• limited specialist port facilities• low level of market penetration by cruises in Asia.

Future OpportunitiesAt the same time however, there are a number of factors

that suggest future industry health – these include:• an increasing range of cruise types and itineraries• the increased affordability of cruises trip in many key

markets• the introduction of ever-larger cruise ships with more

passenger and facilities• continued propensity for global leisure travel• the changing image of cruises• increasing economic wealth in populous Asian

economies

Environmental Impact

• Cruise ships release vast quantities of pollution into coastal and ocean waters. In addition to sewage, a single ship can release up to 1 million gallons of gray water (from sinks, baths, laundry and galleys), 25,000 gallons of oily bilge water, more than 10,000 gallons of sewage sludge, and more than 130 gallons of hazardous waste.

Environmental Impact

• They also emit air pollutants to the air and water. These wastes, if not properly treated and disposed of, can be a significant source of pathogens, nutrients, and toxic substances with the potential to threaten human health and damage aquatic life. It is important, however, to keep these discharges in some perspective, because cruise ships represent a small — although highly visible — portion of the entire international shipping industry, and the waste streams described here are not unique to cruise ships. However, particular types of wastes, such as sewage, graywater, and solid waste, may be of greater concern for cruise ships relative to other seagoing vessels, because of the large numbers of passengers and crew that cruise ships carry and the large volumes of wastes that they produce. Further, because cruise ships tend to concentrate their activities in specific coastal areas and visit the same ports repeatedly (especially Florida, California, New York, Galveston, Seattle, and the waters of Alaska), their cumulative impact on a local scale could be significant, as can impacts of individual large-volume releases (either accidental or intentional).

Question Discussion

How to minimize the environmental impact that

caused by Cruise?

How to minimize the impact?• Prohibit the discharge of sewage, graywater,

and oily bilge water within 12 miles of shore and within marine protected areas.

• Establish full monitoring, reporting and inspection of pollution discharges.

• Offering the expedition cruises and wilderness adventures that utilizes small ships and yachts to explore nature and wildlife up close, like what Adventure Smith Explorations had offered.

Question Discussion

What did Cruise do, regarding noticed the financial crisis?

Cruise noticed the financial crisis

Cruise lines provided cheap deals on the market, a lot of amazing

discounts, expecially for last minute deal.

“anything will sell if the price is right.”

Cruise noticed the financial crisis

This is a scramble by cruise lines to fill ships. They want passengers on board because what they then

spend on drinks and shore excursions is vital to profits.

Octawati BuntaranM987Z249

Phailin ThampramuanM987Z216

Nguyen Pham Nhut ThienM987Z240

Yanni PutriM987Z255

Nong Hong SaM987Z231

Rahul KohliM987Z207