Paper Topic:

Royal Caribbean Cruises

What should Royal Caribbean do ? Outline some steps Royal Caribbean can take to decide whether and how to target the volume segment of the cruise market

The market for cruise vacations is continuing to grow . Indeed , around 85 to 88 percent of the North American population have not taken cruise vacations yet . This potential market provides a great opportunity for cruise companies . With this in mind , Royal Caribbean should consider employing a communications strategy that appeals to first-time customers

There have been great shifts in product design and consumer segments in

br the travel industry . The composition of the cruise market has evolved and as such , Royal Caribbean should re-think how to position their brand . In the old days , cruise vacations were considered to purvey only to the upper class market . Today however , the volume segment comprises the majority of the market , and neglecting to properly address this group will put Royal Caribbean at a great disadvantage against their competitors

The Target Market

Before going after a new market segment , a company must determine the profitability of undertaking the task . It has to consider whether targeting that market would yield better revenues and avenues for growth than when it focuses on other segments . In this case , even though competition from major cruise operators such as Carnival would necessitate that Royal Caribbean drive the prices down , succeeding in the volume segment will be very profitable

The first step Royal Caribbean should undertake is to know the customer The customer 's needs , wants , and expectations are key issues in selecting their target market . Approaching this problem from different perspectives would allow the company to understand what motivates the customer

The volume segment is perhaps the most diverse of them all , however , one common observation is that it is , for the most part , more price-sensitive than the luxury and premier segments . In the travel industry , many factors affect customer decision : how the product appeals to a customer 's ego , the novelty of experience , and outside influences such as family and friends . Royal Caribbean can attempt to attract a broad spectrum of potential customers by employing communication programs that effectively addresses these factors

Product Positioning

Targeting the volume market would necessitate Royal Caribbean to reposition its brand . Royal Caribbean widely perceived to cater to the upper classes (luxury and premium market segments , and as such , needs to re-brand itself in the minds of the masses (the volume segment . To update the brand 's image and attract a broader customer base , they should consider their place with regards to product lines , advertising and positioning . This may mean that Royal Caribbean would have to launch several new (or modified ) products or at least engage in a more focused and unambiguous promotional campaign . Since consumer lifestyles would affect their brand strategy , the target consumer behavior should serve as the basis for how they position and advertise their brand

Aside from analyzing the consumers , Royal Caribbean should also take into account their own strengths and weaknesses , as well as...

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