Holiday Cruise Company - Assignment Example

Holiday cruise company Contents Holiday cruise company Contents 2 Introduction 4 PESTEL analysis 4 Political factors 5 Economic factors 5 Social factors 5 Technological 6 Environmental factors 6 Legal factors 6 Porter’s five Forces 7 Threat of new entrants 7 Bargaining power of buyers 7 Bargaining Power of suppliers 8 Threat of substitutes 8 Threat of existing Rivalries 8 Marketing Services 9 Transcript of Marketing Strategy 10 The Product/Service 12 Promotion 13 Price 14 Brand Values 14 Conclusion 15 References 16 Introduction P & O Cruises is a cruise line owned by British-American. It is considered to be based at Carnival House in England and is said to be operated by Carnival UK. It is originally considered as a constituent of Peninsular & Oriental Steam Navigation Company and is one of the oldest cruise lines in the world. P& O Cruises is said to have operated its first passenger ships in the 19th century. It is considered to have retained strong links with P& O Cruises Australia and is a sister company of the said organization. P& O Cruises was considered to be de-merged from the P & O group in the year of 2000 and became a subsidiary of P & O Princess Cruises. P & O Princess Cruises was considered to have merged with Carnival Corporation in the year of 2003 which led to the formation of Carnival Corporation & plc. P & O Cruises is considered to operate 7 cruise ships currently with a total passenger capacity of 14970. It is considered to hold 5% market share of all cruise lines on a worldwide basis. MS Adonia is considered to be the most recent vessel of the organization which joined its fleet in May, 2011. Sustainability is considered to be at the core of business of P & O Cruises. The organization considers sustainable management as a means to remain successful and strong in an attempt to fulfil its obligations as a business partner, responsible employer, neighbour, and consumer in the Pacific Islands. PESTEL analysis The cruise industry has increased in a huge way in the country and with the increasing spending power of tourists more and more number of travel companies are coming up and the facility of cruises have also become very good and the quality of services has gone up in a huge way (Knapp, 2000, pp. 87-98). For a particular company to have a good market share and build a good market image it needs to go through a PESTEL analysis which helps to understand the external factors which influences the business strategy and either helps it to become successful or a failure. These external factors which do affect the business strategy are Political, Economic, Social and technological. These factors are been studied one after the other. Political factors The cruise industry has a huge risk from the pirates. The holiday cruise companies need to see the risk and also the security that it gets from the government for going on bard with customers. There have been many cases where the holiday cruises get hostile by the pirates as a result of which there is huge loss for the company as well for the country. P&O Cruises needs to have a good look towards the governmental security policies and the way the government provides security to the cruises in sea while the cruise is on board with tourists (Kotler and Pfoertsch, 2006, pp. 90-98). Economic factors The worldwide cruise market is expected to be $36.2 billion. The companies have huge market in UK and with the increasing income level of people and increasing foreign tourists from different parts of the world. P&O Cruises gets a lot of opportunity with the increasing income level and also good economic factors. The company can grow in a huge way and expand its market share in a good way. Social factors The social factors do create a lot of impact in the industry growth. The culture, liking of the customers and also the preference of the customers based on their needs and wants. The company P&O Cruises attracts their target customers based on the social culture of the country (Moore, 1963, pp. 123-127). Technological With the technological improvements in the global market the latest technological developments are been implemented in the cruises with related to the navigation technique, internet system etc. This implementation of new technologies in the cruises will help P&O Cruises to provide better facility to the staff members for easy voyage from one place to another. It will help in increasing the carrying capacity and also will help the company to provide better facility to customers like online booking facilities etc. Environmental factors The environmental factors which affect the business environment are the ways in which the company’s business operations do affect the environmental condition of the country. P&O Cruises needs to see that the cruise ships of this company don’t affect the environment too much which might result in actions taken by the government of UK. Legal factors The various rules and regulations set up by a government of a particular country are to be followed by the company such that they don’t get any penalties. P&O Cruises needs to adapt them and also follow the rules and regulations set up by the UK government. Porter’s five Forces (Source: Porter, 2008) The Porter’s five forces are basically designed to understand the market position and also the competitive analysis for the company P&O Cruises in the UK market. Threat of new entrants The threat of new entrants entering in competition for P&O Cruises is very low. P&O Cruises has high capital and also high brand recognition in the UK market thus it is very difficult for any new upcoming company to set up and come in competition with P&O Cruises as to come up in starting with such huge capital is not easy neither it is easy to build a good market awareness so quickly (Pride, and Ferrell, 2011, pp. 87-92). Bargaining power of buyers The threat for the company with regard to the bargaining power from the buyers is quite moderate as the majority of the customers are of high income segment and they prefer to spend more if they can get better facilities. Though because of the presence of many other companies in the same industry customers might as for some discounts over the fare. Bargaining Power of suppliers The suppliers for P&O Cruises are the ship makers, the food suppliers etc. The threat of the bargaining power of the suppliers of ships is very high as they can charge more for providing good quality cruises that the company needs on the other hand the suppliers of vegetables, meats, furniture have less power of bargaining as P&O Cruises hold a good control over them and the suppliers also look to grow with a good relationship with P&O Cruises. Threat of substitutes Substitutes to Cruise holidays is very less as people going for cruise holidays are generally the high income category people and the upper middle class people who look to go for a good voyage and trip using the cruises. The only substitute that the customer can opt for is the airplanes with which they can reach to their destined location but will miss out heavily on the trip through water. Threat of existing Rivalries The threat for the company from the existing competitors is very high as there are many new companies that have launched various schemes of holiday cruise and are trying to grow at a fast rate to capture the maximum market share and retain as many as possible customers. This can be very crucial factor for the company to maintain its market share and also retain the existing customers so that it can face the threat from the competitors in a successful way (Ries and Trout, 1986, pp. 68-72). Thus looking at the market position and the huge threat the company has from its rivalries it needs to have a strong marketing strategy and look towards growing the company’s market share in UK. Various market strategies can help the company to encounter the threat from the existing competitors and also from the substitutes which will help the company to stand out as a leader in the hotel cruise industry in UK and also in the global market. Marketing Services P & O Cruises is considered to have a proud heritage and provides luxurious travel to its global passengers since 1837. It is considered to be a part of that group which is said to carry nearly half of the world’s cruise passengers. The cruise business is said to be very profitable and the business of cruise industry is considered to worth £ 20 billion a year. The competition in this industry is said to be very intense. P & O Cruises makes use of email communication in an efficient manner to reach to its target consumers. Email communication is considered to play an important role in the marketing strategy of P & O Cruises (Evans, 2010, pp. 41-45). The company makes full utilization of email communication in order to demonstrate to its target consumers the luxury and quality of life on board as well as to demonstrate the range of destinations that are to be explored. The company announced in the year of 2012 that a fleet of 7 ships would meet in Southampton, UK for the first time which would comprise Royal Review from Her Royal Highness, Princess Anne, as part of a ‘Grand Event’. The main challenge of P & O Cruises in this regard was to raise consumer awareness ahead of such an event and to encourage passenger bookings (Barefoot and Szabo, 2009, pp. 51-55). The main purpose was to generate a strong return on investment. The team for marketing services of P & O Cruises worked very efficiently such as to deploy Experian CheetahMail email marketing service which seeks to create personalized email campaigns by use of high standard video content. The technology of Experian CheetahMail email marketing service is considered to provide perfect playback every time and allowed P & O Cruises to engage consumers with an innovative and smart campaign to build awareness ahead of the ‘Grand Event’. The campaign was considered to be a huge success with revenues of P & O Cruises getting a boost of 670% and an increase of 950% in bookings. The video email campaign of the ‘Grand Event’ is considered as one of the efficient campaigns of the organization (Proctor, 2000, p. 67). P & O Cruises is considered to make use of Experian’s expertise in the field of digital marketing in a very efficient manner which resulted in highest number of bookings for the company through such an email campaign. P & O Cruises is considered to efficiently use digital marketing in this regard to engage its target passengers in a way that brought for the company one of the biggest events in its history to life (Funk, 2012, pp. 63-67). Transcript of Marketing Strategy P & O Cruises is considered as a luxury cruise liner which seeks to provide its consumers a total holiday experience. It seeks to provide an all inclusive holiday experience to its consumers which comprises accommodation, entertainment, and meals. It also seeks to provide its consumers with facilities such as steam rooms, sauna, gym, swimming pools, library, and table tennis. P & O Cruises is considered to provide 24/7 services to its consumers. These combined benefits are considered to be bundled into packages by the company and then marked as ‘value for money holidays’. The target market of P & O Cruises is said to have a wide span such as couples followed by families and then friends (Solomon, 2012, p. 87). Couples are considered as the major consumers of the services of P & O Cruises. The broad market of P & O Cruises has allowed it to adopt a national approach with regard to its marketing and advertising strategies. The company mostly uses the concept of ‘Pack N Go’ in an attempt to snatch last minute cruise deals which are considered as only weeks away. P & O Cruises is considered to allow 50% discount in such cases if the full fare is paid within twenty four hours. In the world of today where technology has occupied an important place, retailers have resorted to social networking sites as a tool for marketing their products to a wide range of customers. Social media marketing is a system that connects consumers and brands and also offers a personal currency and channel for social interaction and user cantered networking (Rossiter and Percy, 1987, pp. 76-83). The approaches and tools of organizations have changed a great deal with respect to interaction with consumers after the emergence of social media. In this regard it is of utmost importance that organizations learn to apply the uses of social media in a way that would be consistent with their plan of business (Jacobson, 2009, pp. 59-63). Organizations trying to gain competitive advantage over its competitors must focus on the uses of social media marketing. Social media has made a huge progress from simply acting as a means to connect individuals with their friends and family. It has become a useful means through which consumers are able to learn new facts regarding their preferred companies and the services and/or products they sell. Retailers and marketers have started to use these sites to their benefit. They are utilizing these sites to reach new consumers and also provide them with an additional way of shopping. P & O Cruises is also considered to make use of social media in an efficient manner. It has developed a Face Book which is considered to have received one fifty thousand Face Book likes recently (Joosten, 2012, pp. 73-77). It has also developed YouTube station which is considered to provide consumers with current tours and promotional videos of the cruise. P & O Cruises is also said to use Twitter in this regard in an efficient manner. Print campaigns are considered to be available in magazines regarding new destinations that the liner visits. It is beyond doubt that the reputation of P & O Cruises is great with a lot of credibility. There is a general misconception that cruise holidays are mostly for the mature age persons while P & O cruise liners are considered to cater to all age groups. P & O Cruises is definitely considered as an extremely credible brand which is known and trusted by consumers but the company must take a fresh approach with regard to changing mindset of consumers. It should define those marketing strategies that are specifically for a particular target market (Macdonald, 2013, pp. 81-84). P & O Cruises must make recommendations for improved strategy in an attempt to deal with the ever changing business environment in a more efficient manner. P & O Cruises must consider making certain changes to its service offering in an attempt to draw in a market that is considered to previously have reservations in spending holidays on a cruise ship. In this regard, P & O Cruises should align its ships with its target markets. It should have ships for those consumers considered as more luxurious holiday makers. It should also have ships for persons who tend to embrace all of the activities. It should also consider having ships which is considered as a mix of both. P & O Cruises must consider taking a fresh approach to its marketing campaigns through strategic relationships, endorsements, and promoting people (Wright, 2006, pp. 98-100). P & O Cruises has done an excellent job with regard to marketing their services and is considered to have created a brand which has the potential of standing the test of time. It should make only certain small changes with regard to defining its products such as to remove any misconceptions that are there in the minds of consumers and to attract them to spend their holidays on a cruise ship. P & O Cruises must make an analysis of its marketing channels, strategies, and marketing trends such as to design a complete and successful strategy (Petrison & Wang, 2006, pp. 67-71). The company should make use of online promotions which seek to provide its consumers with a review of the services that are offered by the company. P & O Cruises is considered to appeal to a large variety of consumers and as such the company does not rely much on segmentation but seeks to market its products through undifferentiated marketing. The Product/Service P & O Cruises is considered to make its position very strong as a luxury cruise liner which seeks to provide its consumers a very comfortable and luxurious travel. P & O Cruises is considered to carefully choose its onboard features, destinations, entertainment, and dining such as to maintain its competitive advantage. It was found in the year of 2011 that out of 300000 passengers of P & O Cruises, 200000 are considered to travel to the Pacific Islands. As such, the company is said to offer more of Pacific Island cruises with itineraries ranging between seven to fourteen nights. Cruises to Queensland and New Zealand are considered to be the favourites of the passengers of P & O Cruises. Short Breaks are also considered to have become very much popular with regard to consumers of P & O Cruises. The company is considered to have etched out its own special place in this regard and is considered as a specialist in short breaks (McDonald, 2001, pp. 65-68). The company provides three night themed cruises which include food and wine, comedy, and lifestyle. Australia is mainly known for its excellent dining options and as such P & O Cruises provides deliciously varied culinary options to suit its passenger needs. P & O Cruises on board is said to provide everything from room service, poolside fare, specialty restaurants, la carte dining, and buffet. The entertainment offerings of P & O Cruises is said to include production shows, musicians, acrobats, and comedians. The ship amenities of P & O Cruises is said to lend ultimate holiday experience with kids clubs, adults only areas, outdoor big screens, pools, pubs, and bars. Pacific Dawn is considered as the first superliner of the company to be home ported in Australia in the year of 2007. It is said to be 245 metres in length and of 70285 tons which carries 1950 passengers and is considered to sail year round out of Brisbane. Pacific Jewel and Pacific Pearl are considered as sister ships of the company and both are said to sail from Sydney. Pacific Pearl has a passenger carrying capacity of 1800 passengers while Pacific Jewel is said to have 1900 passenger carrying capacity. Promotion P & O Cruises is considered to promote itself as the holiday that consumers truly desire for. It mainly focuses on the friendly and fun aspects of cruising and is considered to run two big retail campaigns every year which comprises strategies for communication of P & O Cruises. The communication strategy of the organization consists of email and direct marketing, online display and search, newspaper, television, and POS in travel agents. The company is said to launch its first brand focused campaign in a considerable period of time in the year of 2010. It has since then partnered with numerous Australian television programs in an attempt to place cruising into the arena of mass media. It is considered to make an appearance on Channel Nine’s Getaway, Channel Seven’s Saturday Disney, Channel Ten’s Neighbours and MasterChef, Celebrity Apprentice, and on Australia’s Funniest Home Videos. Online marketing is considered to have added another realm to the marketing mix of P & O Cruises. It is said to have revolutionized the way the brand is considered to communicate with its passengers. P & O Cruises has launched its Face Book page in the year of 2009 and the publication of such edition is considered to have gained over 100000 fans which is said to grow by around one thousand per week (Sponder, 2011, pp. 51-53). Price The company mostly uses the concept of ‘Pack N Go’ in an attempt to snatch last minute cruise deals which are considered as only weeks away. P & O Cruises is considered to allow 50% discount in such cases if the full fare is paid within twenty four hours. P & O Cruises should align its ships with its target markets. It should have ships for those consumers considered as more luxurious holiday makers. It should also have ships for persons who tend to embrace all of the activities. It should also consider having ships which is considered as a mix of both. Such activities of the company will make it possible to target efficiently all types of consumers with regard to its price. Brand Values P & O Cruises strives to provide its consumers with an unforgettable experience such that consumers get value for their money. The brand values of the company are recognized by its peers because it is considered to have won numerous awards for excellence in cruising in the Australian market. It is considered to be the only brand in the market that specifically tailors its products to the tastes of consumers (Olins, 2003, p. 53). The passengers of P & O Cruises is said to form a strong bond with not only the brand itself but also with the ships they are considered to travel on. The Face Book page of the company reveals the bond between its passengers and the brand. Conclusion P & O Cruises is said to have a long seafaring history and is considered to share a deep bond with Australia. The company needs to look towards the external factors that influence the way the business strategy is been implemented. The company strives to maintain its long standing relationship with loyalty. The main aim of the company is to provide its passengers with memorable cruise holidays in some of the world’s finest locations. People considered to travel by the cruises of P & O feel very comfortable and relaxed and are considered to have great fun. The company seeks to provide its consumers an experience of holiday of a lifetime every time they travel by the ships of P & O Cruises. P & O Cruises is considered to follow a sound business conduct and it requires its employees to use sound judgement, maintain high standards of ethics while serving its consumers. The organization considers sustainable management as a means to remain successful and strong in an attempt to fulfil its obligations as a business partner, responsible employer, neighbour, and consumer in the Pacific Islands. P&O Cruises needs to keep conducting huge marketing activities using various platforms for promotions and also look to give offers and discounts from time to time so that they can attract maximum customers and also have a good competitive advantage over the other companies present in the same industry. P&O Cruises is present in the UK market from many years so it needs to keep working towards maintaining its strong brand image that the company has created in the market from so many years and also retain the customers by increasing customer loyalty in every possible way. References Barefoot, D. and Szabo, J. L. 2009. Friends With Benefits: A Social Media Marketing Handbook. USA: No Starch Press. Evans, D. 2010. 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