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Marketing Case Study Disney Cruise Line

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Disney Cruise

Line
MARKETING STUDY

Carla Petrozzi Mateo Martinez

Abel Chris Leonardo Ignacio Farah


Giulino
THE CRUISES EST. 1844

AN OVERVIEW

• classified into three different classes


• small ships (100-500)
• mid-sized ships (1000-2000)
• mega-ships (2000+)
• Classified also by intended market
• Cruise line industry = Oligopoly
• Avg. profit margin: 10-20%

Disney Cruise Lines est. 1998

20.4
MILLION
7.67
BILLION
THE COMPETITION

• 27 ships • 10 times the size of Disney Cruise


• 700 ports (63 US) • 26 ships (70% larger on average)
• Major Domestic US Market • 300 ports
• for a standard cruise package for 4 • standard package for 4
⚬ $ 2100 ⚬ $ 5300
• Profit: $6.124B ending Aug ‘23

“collectively operate 53 ships having over 70% market share”

Other Major Competitors Other Luxury Competitors


Crystal Cruises
Norwegian Cruise Line (9.5%)
Holland America Line
MSC (10.2%)
Silversea
MARKETING MIX
STRATEGY

• DISNEY CRUISE LINE • CARNIVAL CORPORATION • ROYAL CARIBBEAN


PRODUCT Disney Experience

• Staterooms decorated with some • Kids attractions • Royal Caribbean Group


“typical” Disney elements ⚬ Free Childcare for all ages ⚬ State-of-the-art ships
• Rotational dining concept and ⚬ Waterparks ⚬ variety of itineraries and
excellent food quality ⚬ Movies destinations
⚬ Meet and greets with characters ⚬ broad portfolio of products
• Staff trained as “Cast members”
⚬ Fireworks • Carnival Corporation & plc
(high standards)
• Adult only areas ⚬ Shore excursions with local
• ‘Key to the World Card’
attractions and culture
PRICE

DISNEY CRUISES CARNIVAL CORPORATION ROYAL CARIBBEAN


• Value-based pricing strategy • Hybrid pricing strategy • Middle positioning
• Premium brand experience • Budget-friendly alternative • Trendsetter & innovator
• Higher prices than competitors • Lower positioning • Competitive Pricing
• Diverse price points • Competitive pricing • Value proposition = higher prices
• Limited discounts and promotion • Deeper discounts • Frequent promotions
• Frequent promotions • Loyalty programs
PROMOTION

DISNEY CRUISES

• Website: main source of


information.
• TV Network commercials (ABC,
Disney Channel, etc.) CARNIVAL CORPORATION ROYAL CARIBBEAN
• Print & online advertising
• Cross-promotion • Fun & Relaxation themes • Innovation & adventure themes
• Diverse digital marketing • Public relations • Media engagements
• Trade shows & events • Charitable engagements • Promotional offers
• Authorized Disney vacation • Sales promotions • Travel agencies partnerships
planners • Travel agencies partnerships • Social Media differenciation
• Tour operators • Social Media presence
DISCOVER WHERE MAGIC MEETS THE SEA ON A DISNEY CRUISE
LINE VACATION (21 NOV 2022) - DISNEY PARKS
CHOOSE FUN | CARNIVAL CRUISE LINE (8 MAY 2023) - CARNIVAL
CRUISE LINE
ICON OF THE SEAS | ARRIVING JANUARY 2024 (20 OCT 2022) -
ROYAL CARIBBEAN
PLACE

DISNEY CRUISE ROYAL CARIBBEAN CARNIVAL

• Africa, Alaska, Pacific Coast, • Alaska, Oceania, Bahamas, Bermuda, • Bahamas, Caribbean
Bahamas, Caribbean, Europe, the Caribbean, Central America, the ⚬ Seasonal cruises: Canada,
Canada, Latin America, Oceania US, Indian Ocean, Mediterranean, New England, Alaska,
Mexico, Middle East Hawaii, Bermuda, and Europe
• Distribution: website and travel
• Distribution: Stores and licensed
agents • Distribution: similar to Royal
stores, e-commerce, retailers, agents
Caribbean
THE SWOT
STRENGTH WEAKNESS
• strong brand recognition • limited destinations (international port of call options - poor)
• high degree of brand loyalty • high prices to consumers
• diverse cruise options • high attrition rate
• exceptional customer service (higher ratio of crew-to-passengers, 1:3) • lack of marketing and promotion
• add-on entertainment services • younger demographic focus (niche market)
• immersive experience in the world of Disney ⚬ lower occupancy
• product offered is limited within class
evident through Four Keys policy:
• limited itineraries may limit repeat business from customers
“Safety, Courtesy, Show, and Efficiency,”

OPPURTUNITY THREATS

• expansion into new destinations • competition in the cruise line industry (celebrity cruises, etc.)
• partnerships and acquisitions • changes in consumer preferences with growing travel options (generic competition)
• growth in the cruise industry (estimated at 11.5%) • economic downturns
• ship attractions • International crisis, weather
• emerging markets • environmental concerns
• • corporate turbulence exaggerated by complex corporate structure
increasing propensity to consumer
POSSIBLE STRATEGY
MAIN AREAS: DEMAND & COMPETITION

DEMAND & TARGET AUDIENCE:

• Target families with young kids.


• Tap into the 7.9% projected cruise market growth (2022-2031).

PRICING & PERCEPTION:

• Address the higher price perception.


• Utilize theme parks to promote cruises and boost brand loyalty.

UNIQUE SELLING PROPOSITION (USP) & TECH:

• Highlight Disney's unique themes.


• Incorporate park technologies to justify premium prices.
COMPETITORS’
REACTION
If the strategy proves successful, Competitors might:

• EMULATE DISNEY'S THEMATIC EXPERIENCE


• Licensing & partnerships - Gain familiarity with the public
• Challenges - Risky since it is Disney’s strength

• LEVERAGE PRICE-QUALITY RATIO:


• Enhance value-proposition - Focus on offering a better price-quality ratio product

• EXPLORING ALTERNATIVE APPROACHES


• Specialized niche cruises - e.g. wellness cruises, adventure-themed cruises, or cruises tailored for specific
demographics.
• Innovative technologies - cutting-edge technology to enhance onboard experiences
• Exclusive destinations - Offering exclusive or lesser-known destinations
THANK

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