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Carnival Cruise Line Communication Plan
1. Carnival Cruise Lines: Rebuilding
Image and Reputation
Presented by:
Sara Lang
Kate McNally
Amy Wehinger
2. Situational Analysis & Stakeholders
State of the
Cruise
Industry
• Fastest-growing
• Travel agent bookings
• U.S. investigations
State of
Carnival
• High-profile disasters
• $700 million in upgrades
• Confidence, occupancy &
earnings down
Stakeholders
• Travelers
• Travel agents
• The media
3. Primary Research
• Benchmarks
• Tracking
Media
Research
• Targets
• Regular
Surveys &
Polls • Depth
• Testing
Focus
Groups
Ongoing Process: Data to Understand Audiences, Shape
Messages, Select Vehicles, Modify Plan
7. Messages
• Leader in safety and cleanliness
• Top-notch team is prepared for any
emergency
• Values travel agents
• The choice for fun, affordable family
vacations
• Cares about its customers comfort
• Building a long-term strategy for
profitability
State of the cruise industryCruises and cruise vacations are the fastest-growing segment of the travel industryDue to health and safety concerns, the U.S. Congress is investigating how cruise lines report crime and safety statistics, and have developed a passenger bill of rightsThe vast majority of cruise bookings—90%—come from travel agents, whom Carnival has been alienating for the last five years. Only within the last few months has Carnival been working to repair its relationship with travel agents. State of CarnivalRecent high-profile disasters have put Carnival in the spotlight for all the wrong reasons: a) The Costa Concordia ran aground and partially sank leaving 32 people dead. With the recent salvaging of the vessel and ongoing case against her captain, Francesco Schettino, will mean this story continues to be resurrected by the media.b) The Carnival Splendor had an engine room fire that left the ship with only basic emergency services and resulted in the boat being towed into San Diego with wide media coverage showing the disabled ship limping into portc) The Carnival Triumph broke-down and left passengers stranded without even basic facilities for five days and came to be known as “the poop cruise” due to the raw sewage spread about the decksd) The Carnival Dream’s voyage had to be cut short due to technical problems which resulted in roughly 4,300 passengers being flown home early and given partial refunds and discounts on future cruises2) Surveys have shown that consumer confidence in Carnival has dropped, with Carnival’s “quality” fell by 28%, “trust in the company both plummeted 26% and customer purchase intent dropped by 20%. These declines were the highest in the entire cruise industry. As such, profits this quarter are down 30% compared to this time in 2012 with revenue expected to fall 3% this year; third-quarter reports show earnings were $1.20 per share, compared with $1.71 during the same period in 20123) Ship upgrades and new safety implementations totaling upwards of $700 million are underway, which include minimizing the risk of engine room fires, installing additional back-up generators, increasing the number of water mist nozzles from 30 to 500 per ship, rerouting wiring and increasing safety patrols in the engine room. StakeholdersTravelers includes families, baby-boomers, seniors, previous/current passengersTravel agents are a key part due to their strong influence on bookingsThe media—including traditional and new, such as bloggersInternal stakeholders are Carnival employees, board members, shareholders and investorsThe government such as lawmakers and the U.S Coast Guard who regulates ship safety requirements.
Builds on secondary researchRefines and understands target audiences, shape message development, select communications vehicles, and gather data to assess and modify the plan. Ongoing effortsSurveys – online & phoneFocus groups – in-depth study of key audiences
Organizational renewal theory: crisis communication theory that argues that crises provide opportunities for organizational growth (i.e. the creation of a leadership platform). four theoretical objectives central to the discourse of renewal: organizational learning, ethical communication, a prospective rather than retrospective vision, and sound organizational rhetoric. More info at http://www.sagepub.com/upm-data/37705_1.pdfElaboration Likelihood Model: persuasion communication theory that uses knowledge and understanding of audiences to craft persuasive messages. There are two routes to persuasion in this model: the central route, which emphasizes reasoned arguments and the peripheral route which utilizes emotion, images, etc.
