Carnival Cruise Lines

Presented by The Summit Group

Situation Analysis (Analyze)………………………… Page 3-20

Campaign Strategy (Strategize)……………………. Page 21-26

Creative Plan (Create)…………………………………. Page 26-37

Media Plan (Impact)……………………………………. Page 38-42

Public Relations (Promote)……………………………. Page 42-54

Appendix……………………………………………..……. Page 54-63

�2

The Summit Group Account Director: Anna Hrovat-Stadler Creative Director: Claudia Shapiro Research Director: Kelcie Kempenich Media Planner: Emma Leuman Public Relations: Jake Steinberg Integration Director: Lauren Leffingwell

Table of Contents

Carnival Corporation Carnival Corporation is the world’s leading cruise ship operator. The Miami-based company was founded in 1972 and

has since expanded to oversee 10 unique cruise lines. Its operations span globally, reaching North America, Europe, Canada, Asia and Australia.

North America is the corporation’s largest market, contributing over 50% of total sales. It’s flagship line, Carnival Cruise Lines, is the most prominent line in North America. It includes 23 ships that sail from 18 ports in the United States. The ports are primarily concentrated along the southern and east coasts. Itineraries range from 3 to 16 days.

The line seeks to appeal to families, retirees, and other upper-middle-class customers who are looking to cruise the Caribbean, the Mexican-Rivera or Alaska. It especially aims to attract first-time cruisers by providing affordable vacation packages that offer live music, gambling, and onboard entertainment.

Due to three recent crises aboard Carnival’s ships, including the infamous Carnival Triumph’s “poop cruise” breakdown in 2013, the shipwreck of Costa Concordia in 2012 and the 2012 fire onboard Costa Allegra, Carnival Cruise lines has been working hard to rebuild its consumers’ confidence. These events, in coordination with global economic hardships and new environmental regulations, contributed to the $165 million cash flow decline the company experienced from 2011 to 2013.

However, Carnival is confident about the future. Despite the net loss of $15 million that Carnival reported for the fiscal quarter ending in February 2014, the booking volumes were up almost 20% globally. This is due to huge discounts that Carnival offered in attempt to lure customers back to its cruises. At the same time, the company dramatically increased its spending on advertising. According to Carnival’s CEO, this short-term plan was meant to fill ships and increase demand so prices could be raised in the future.

The plan proved successful. Carnival Corporation reported a 33% rise in net income for the third quarter of 2014. About half of this increase came from higher-than-expected occupancy rates and the other half came from improved pricing

�3

Analyze Kelcie Kempenich

strategies.

In addition, Carnival is releasing eight new cruise ships into its fleet between 2014 and 2016, and has constructed additional homeports in attempt to attract new customers and bring the company closer to its future cruisers.

Industry Background Ocean and river cruises account for 27% of worldwide vacations. The US dominates this vacation segment, making up

51.7 % of the industry’s passenger source.

The five years leading to 2014 were unstable for the cruising industry. The tourism and travel industry in general is heavily impacted by per capita disposable income. Therefore, increasing unemployment rates and slow economic activity that resulted from the 2009 economic recession reduced travel rates and negatively impacted all travel industries. The revenue of Carnival and two of its largest competitors, Royal Caribbean and Norwegian Cruise Lines, dropped by over 10% during the recession.

Three major crises also negatively influenced the cruising industry through decreasing levels of consumer confidence. On January 12, 2012, Carnival’s Costa Concordia ship grounded off the coast of a small island in Italy and capsized. In February of 2012, a generator fire broke out on another of Carnival’s ships, causing passengers to be stranded afloat for three days. In February of 2013, the Carnival Triumph suffered a generator fire and again left passengers stranded. Following the crises, Carnival added emergency generators, upgraded fire safety and improved engines on all 23 of its ships. Although these events occurred on Carnival cruises, the cruising industry as a whole was negatively impacted because people were more fearful of cruises.

However, because cruises are seen as a lower-cost alternative to other long distance vacations, demand has been strong enough for the cruise market to recover from the recession. In addition, per capita disposable income is expected to increase in at an annualized 2.2% over the next five years, which will allow consumers to spend more on non-necessities like cruise travel. In the next five years leading to 2019, global cruising revenues are expected to pick up, climbing at an annualized 4.1% to reach $40.6 billion.

�4

Analyz

e

The CLIA expects several major trends expected for the 2014 cruising industry. First, there will be an increased population of first-time travelers due to the booming millennial generation based on population size. In addition,

consumer confidence in the industry is expected to rebound with the improving economy and development of more luxurious cruises.

Due to the high barriers of entry, three main cruise lines dominate the industry and are projected to stay major players in the future. Carnival Corporation holds the largest market share, at 21.1%, followed by Royal Caribbean Cruises Ltd. at 16.0% and Norwegian Cruise Lines Holdings Ltd. at 9.1%. All three competing companies are improving their ships and safety, increasing their total passenger capacity and preparing for the expected increase in global cruisers.

Consumer Analysis Industry-wide, nearly all cruisers meet two characteristics: they are over the age of 25 and have a minimum household

income of $40,000. Cruisers also report having higher education levels than non-cruisers (76% are college graduates vs. 71%) and are predominantly married. They usually travel in pairs and with spouses.

On average for a one-week vacation, cruisers spend almost 25% more than non-cruise vacationers. However, even though cruisers predict their vacations will be more expensive, they see the trips as having a high value for their cost.

The consumer perception that cruises are of “high value” is important when it comes to the motivations for purchasing a cruise. In fact, value/price was listed as the number one factor in major consumer motivators to take a cruise, with 86.6% of respondents in a CLIA Travel Agent Survey listing it as the top influencer. The cruise’s destinations (77.7%), cruise brand reputation (76%) and homeport location (61.3%) were also important factors.

Carnival Cruise Lines targets families, retirees, and other middle class customers with competitively priced packages. Simmons data revealed trends among recent Carnival cruisers:

• They were slightly younger cruisers • They were predominantly married

�5

Analyz

e

• Over 1/3 had children • They were more likely to be African American than cruisers on other lines

• They have slightly lower education levels than cruisers on other lines • They have slightly lower incomes, but are financially hopeful about the future • They are more likely to live in the southern United States than cruisers on other lines • Carnival cruisers are not likely to book with a company they have never heard of

Compared to its competitors, Carnival attracts a slightly younger customer. Those who have recently cruised with Carnival are 17% less likely than the average recent cruiser to be over the age of 55, while those that have recently cruised with Norwegian or Royal Caribbean are 13% and 14% more likely to be over the age of 55. In addition, only 15.2% of Carnivals recent cruisers are retired, compared to 27.7% for Norwegian and 23.2% for Royal Caribbean.

A majority of Carnival’s recent cruisers are married (61.3%), while 35.5% of them have children. Compared to recent Disney Cruisers, this is significantly less – 74.1% are married and 54.8% have children. Even though only 18% of cruisers overall take children along, Carnival is still a major outlet for families looking to cruise, falling only second to Disney.

Whites make up the majority of all recent cruisers (61-78% depending on the cruise line). However, when African Americans do cruise, they are more likely to choose Carnival. Blacks are 24% more likely than the average recent cruiser to cruise with Carnival than a competing brand.

Overall, recent cruisers have higher education levels than non-cruisers. They are 48% more likely to have completed college. However, Carnival’s recent cruisers have slightly lower education levels than competitors’ recent cruisers. Only 11.6% of Carnival’s recent cruisers completed graduate school, compared to 16% of Royal Caribbean’s cruisers.

The industry trends denote that cruisers typically have higher incomes than non-cruisers, but it appears Carnival’s market is slightly less affluent than its competitors, though financially hopeful about the future. Compared to Norwegian (42.9%) and Royal Caribbean (41.7%), Carnival cruisers are less likely to agree with the statement that they feel financially secure (only 36% agreed). However, Carnival cruisers were slightly more optimistic about the next 12 months than cruisers

�6

Analyz

e

from the other lines, with 27% agreeing they will be financially better off in the next 12 months, compared to 19.8% for Norwegian and 25% for Royal Caribbean.

Carnival pulls most of its consumers from the southern region of the US, is consistent with its competitors in Midwest and western target markets, and falls behind in attracting consumers from the northeastern region. Recent Carnival cruisers

are 23% more likely than competitors’ cruisers to come from the southern region of the United States. 55% of Carnival’s total cruisers come from this region. This may be due to the fact that 8 out of 15 of Carnival’s ports are located in the South.

Only 24.3% of Carnival cruisers agreed they would be likely to make travel arrangements through a company they’ve never heard of. This is significant, considering that “cruise brand reputation” was ranked third in motivations to cruise, and shows the importance of maintaining a strong brand identity.

Potential Markets According to Carnival’s current director of integrated marketing, 76% of Americans have never cruised before. This

suggests that there is a large untapped market for Carnival to pull first-time cruisers from. According to Simmons, those ages 25-34 are the most likely age group to have not taken a cruise within the last three years: 82.3% of them have not.

Of these non-recent cruisers ages 25-34:

• 56.9% are employed full time, while 30.7% are not employed. • 57.3% of them have children. • Only 18% would be willing to take a cruise from a company they have never heard of • Compared to other regions, a majority from the southern US have not cruised (39%) compared to those in the

Northeast (14.3%), Midwest (21.1%), and West (25.5%).

When Carnival’s market is broken down into this select group of primary non-cruisers – those ages 23-34 who are from the South - some important insights surface. They are 20% more likely to think they are far below average when it comes to being a careful money manager. However, they are also 61% more likely to purchase a big-ticket item (i.e. a vacation) within the next 30 days.

�7

Analyz

e

This prime group of cruisers is social, being 14% more likely than the average American to agree that they are friendly, cheerful and likeable. They are 10% more likely than the average American to agree they like to go on

vacation where activities are organized and that they only want to relax while they are on the vacation.

Comparative Analysis The table below summarizes major aspects of Carnival’s brand and its cruises compared to its three main competitors:

Royal Caribbean, Disney Cruise Lines and Norwegian Cruise Lines. Carnival’s competitive advantages are highlighted in green. Yellow highlighted boxes indicate that Carnival is consistent with its competitors or neutral.

�8!

Analyz

e

Royal Caribbean Royal Caribbean Cruises Ltd. is the second-largest company in the cruising industry behind Carnival.

Although the average cruise with Royal Caribbean is more expensive than with Carnival, Royal Caribbean scored first in “Best Cruise Lines for the Money,” according to US News and World Reports 2015.

These higher costs could be justified by the exceptional amenities offered on Royal Caribbean’s cruises compared to Carnival, such as skydiving, a zip line, a central park in the middle of the ship and the world’s first Starbucks at Sea.

Royal Caribbean has a highly reputable brand identity, especially in the contemporary and premium segments of the cruise industry. This strong brand awareness and recognition creates loyal customers and often attracts repeat cruisers. On average, 29.2% of Royal Caribbean’s cruisers have been on 3 or more cruises in the last year, compared to only 16.1% of Carnivals. In general, its cruisers are more likely to be retired and are more affluent than Carnival’s.

Norwegian Cruise Lines Norwegian Cruise Line Holdings Ltd. holds a major share of the global cruising industry as the third-largest cruise line.

Norwegian holds a special spot in the US market, being the only ship that sails round-trip to Honolulu, HI. The cruise line also owns a private beach in the Bahamas that is reserved especially for their cruisers. Norwegian is most notably known for “Freestyle Cruising,” which offers passengers the flexibility to decide when to dine and whom to dine with, without having to dress formally. This loose scheduling tactic has enabled the brand to achieve higher onboard spending levels and greater customer loyalty. This consumer loyalty is valuable to Norwegian, as it is one of the most recognized consumer brands. In fact, 30% of its customers are repeat.

NCL is the fastest growing of the lines, due to its increased operational efficiency and expansion into niche markets. Revenue is expected to increase an estimated 22.0% over the 2014 fiscal year, to $2.6 billion.

�9

Analyz

e

Disney Cruise Lines Disney Cruise Lines holds 3% of the market share. Although cruising with Disney is significantly more expensive than

cruising with Carnival, Disney cruises scored above Carnival in “Best Cruise Lines for the Money,” earning second place. It also earned first place in “Best Cruise Lines for Family.”

Disney and Carnival both target families, but offer very different cruising experiences. Disney is already connected to a well-known brand, and has created a themed cruise designed to capture a specific market. Their goal is fit the vacation needs of more affluent families by providing a place where families can reconnect together, while at the same time offering different options to independently engage both children and adults with unique and themed activities.

They offer exclusive amenities such as Broadway shows, a private island with Disney character appearances, and an Aquaduck, the world’s first shipboard water coaster. Two new ships were added in 2011 and 2012, doubling the company’s carrying capacity from two ships to four.

Brand Positioning and Analysis

Positioning Carnival focuses on catering to families and couples who are looking for a quick, inexpensive getaway, especially

targeting first-time cruisers. Simmons data shows that on average, Carnival’s cruisers are much less experienced: While 29.9% and 20% of Royal Caribbean’s and Norwegians cruisers have gone on three or more cruises in the past three years, only 16% of Carnival’s have. In addition to attracting first time cruisers, Carnival has a competitive advantage in price, port locations, and onboard all-inclusive activities.

These insights are upheld by a poll taken by Zagat reviews, which sampled “2,379 regular cruise-goers who had taken trips averaging nine days.” According to this survey, Carnival placed first in the categories “Best for Singles” and “Best for Budget Cruises”. They also placed second and third in the “Best for Kids”, “Best for Weekend Getaways” and “Best for Families” categories.

�10

Analyz

e

In order to position themselves properly and achieve high rankings, Carnival has prided and promoted itself on being the most “fun” cruise line in the industry. This is highlighted in their strategic advertising campaigns on a

consistent level. All of Carnival’s TV advertisements from 2008-2014 reference the word “fun” in their commercial, slogan or taglines. The advertisements include peppy and positive themes with upbeat songs matched with a quick pace.

Many TV advertisements include families and children in order to appeal to these target audiences. Low trip prices are often highlighted in advertisements since they are one of Carnival’s most significant advantages.

Brand Analysis Due to recent PR crises and negative news coverage following the Carnival Triumph and Costa Concordia disasters,

Carnival Cruise’s brand name has struggled to maintain the fun and family-friendly position it wishes to hold within the market.

One Harris poll taken in February of 2014 discovered that despite Carnival’s recent efforts, the public perception of their company and cruising in general was still suffering from the Triumph debacle. Carnival Cruise Line’s perception in quality, trust and purchase intent went down 17%, 17% and 16%, respectively. The surveys were scored on a scale from 1 to 10, and each category dropped from the 6+ range to a low 5 compared to a week before the Carnival Triumph incident occurred.

While this is important to recognize, Carnival is still the market leader: it has the largest share of worldwide passengers, the most ships, the most ports in the continental US (especially in the South) and the largest total revenues. Carnival exceeds or is consistent with its competitors in Facebook Likes, Twitter followers and Instagram followers. Further insights about consumer perceptions of Carnival are revealed by investigating positive and negative schemas surrounding their social media. Tracking inbound and outbound tweets containing @CarnivalCruise analyzes both Carnival’s branding and positioning, leads to an understanding of Carnival’s social reputations regarding their branding and positioning. Out of 151 tweets from Sep. 1st –October 10th 2014, there were 33 mentions of the word “fun,” 16 mentions of the word “new,” only 7 mentions of the word “bad,” and 30 mentions of the smiley face emoji. This analysis shows that Carnival has positive associations and interactions on social media that fit within their current slogan and schema.

�11

Analyz

e

Media Usage Analysis Consumer Media Use: General Trends

Studies have shown that American consumers are increasingly using digital forms of media. Simmons research revealed that owning a computer is likely across all age groups. Those ages 18-24, 25-34 and 35-44 years old are more likely to be social media users than the general population with indexes of 141, 133 and 122, respectively. Although in general television ratings are going down, both cable and broadcast networks retain large audiences.

Consumer Media Use: Carnival Consumers Carnival’s consumers are very media savvy. They are dedicated consumers of television, newspapers and internet-

based applications such as social media and news sites. Carnival customers are more likely than the average American to use the internet and social media, with Simmons indexes of 110 and 116 respectively. When online, they are visiting sites that relate to traveling, finance and news.

Carnival’s current consumers are actively reading magazines and newspapers. Their favorite magazines are Better Homes & Gardens, Good Housekeeping, National Geographic, People and Time. They are more likely to read the New York Times, the Wall Street Journal and USA Today, with Simmons indexes of 120, 133 and 142, respectively.

Like many Americans, Carnival’s current customers religiously watch television. They are cable subscribers who watch CNN, HGTV and TNT at rates above the national average. When it comes to local news, they watch late-night spots more often than spots around dinnertime. Their viewership is almost evenly split between the network stations, with ABC coming out on top by a small margin.

Carnival’s Media Use According to Hoover’s, Carnival spends heavily on marketing, and they tend to market to first-time cruisers. In addition

�12

Analyz

e

to utilizing traditional media such as television and magazines, the company has recently shifted its efforts to online and social media, using sites like Facebook, YouTube, Twitter and Instagram to reach a digital audience.

Due to the economic recession in 2008, Carnival, among other cruise lines, was absent from television and other mainstream outlets. Multiple cruise lines pulled ads from network stations because the mainstream customers they were

attempting to reach through those ads were financially unstable and could no longer afford to cruise. The cruise lines didn’t want to pay for expensive ads if this mainstream audience wasn’t going to purchase their product. In addition, Carnival Triumph’s breakdown in 2013 and the shipwreck of the Costa Concordia in 2012 made the mainstream arena unsuitable for cruise line promotions.

When Carnival did return to television in 2013, their ads were successful. By using an emotional appeal to reach families in their most commonly used media channels, Carnival was able to reposition itself as the ultimate family-oriented cruise experience. Their ads focused on the ability of a cruise vacation to create lifelong memories. These spots were shown on network channels, as well as a variety of specialty channels like Bravo. This points to Carnival’s goal of reaching the mothers of families, as Bravo has a notoriously female-dominated viewership.

Carnival is also extremely adept at social media. With thousands of followers on multiple channels such as Twitter, Facebook and Instagram, they have been successful at garnering interaction with their customers. The company has thousands of likes, favorites and retweets on their content. They use their social media presence to remind their customers of the fun they had on vacation or to entice potential customers with gorgeous views and striking photography.

Creative Analysis

Background Information Omnicom’s PHD and Arnold Boston are the agencies of record for Carnival’s current US advertising campaigns. As of

2012, the campaigns were worth $32 million total (down from $51 million in 2011 and $77 million in 2010) and the current slogan is “Fun for All, All for Fun.” Carnival positions themselves as the “fun ship” and their slogan communicates that

�13

Analyz

e

everyone enjoys the endless opportunities for fun and adventure aboard a Carnival cruise. Their advertising appeals mostly to families and/or people looking for exhilarating experiences.

Current Creative Executions In the United States, Carnival’s current campaign is called “Land vs. Sea,” which compares the stress of land vacations to

the relaxation and fun of sea voyages. This campaign has been running since 2011. In September 2013, as “a departure from the high-energy, Fun Ship themes,” Carnival also launched a national campaign, mostly based in the US Minor Outlying Islands called “Moments That Matter,” “that featured emotional stories about standout memories from past guests,” which was very well received. Arnold Worldwide is responsible for a series of outdoor (out-of-home) ads as well, primarily in New York City. These ads focus on the year-round availability of Carnival cruises and the appealing possibility of escaping the cold weather during the winter months. These ads were said to “make a splash.” To get the 76% of Americans who have never cruised to consider cruising, Arnold Worldwide launched an integrated marketing campaign called “Hey America, Didja Ever?” which encouraged Americans to make a “bucket list” and “go out and get fun done.” They created a Facebook app and paired with various television shows, like The Today Show and The Ellen DeGeneres Show to give away free cruises to a few lucky people.

Carnival’s current US slogan, “All for Fun, Fun for All” began with Arnold Worldwide’s 2008-2011 campaigns. One of these commercials, “Towel Animal Theater,” showed two of Carnival Cruise’s signature towel animals talking to each other on a cabin bed and ended with the campaign’s slogan. Another ad called “Fun Director” cuts between the “fun director” explaining the exciting effects of sliding down a waterslide on-deck a Carnival Cruise ship and what presumably is a father having the time of his life on the waterslide. A third commercial shows Carnival Cruise employees blowing up and passing around a giant beach ball in downtown Dallas to set a world record while the song, “Bang on the Drum All Day” plays in the background. Prior to 2008, Cooper DDB was the agency of record for Carnival Cruise Lines in the United States. Their campaign was called “Let the Fun Begin” and featured families engaging in various fun opportunities like excursions with dolphins and waterslides on-deck. At the end, Carnival calls itself “The Fun Ships.”

�14

Analyz

e

Competition Carnival Cruise Line’s biggest competition is Norwegian Cruise Lines, Royal Caribbean and Disney Cruise Lines.

Norwegian Cruise Line’s current campaign, “Cruise Like A Norwegian” run by The Martin Agency, focuses on the glamour and luxuriousness of their cruising experience. This campaign targets a different audience than Carnival Cruise Lines, possibly one considered to be more sophisticated.

Norwegian’s previous campaign “Freestyle Cruising, You’re Free to Whatever” (2008-2011) run by GSD&M, focused on cruise passenger’s freedom to do whatever they like, whenever they like, unlike many cruise ships with set activity and dining schedules. This campaign targeted a similar audience to that of Carnival Cruise Lines.

Royal Caribbean’s current campaign, “The Sea is Calling, Answer it Royally” run by JWT and MindShare, presents the brand luxuriously and focuses on the audience’s inherent love and connection with the ocean and our desire to escape from the hustle and bustle of the world around us. In this campaign, a seashell on a city street rings and the voice of the ocean speaks to people telling them that she misses them and that they should come visit her soon. This campaign targets busy, working adults and their families. A previous campaign called “The Nation of Why Not” (2008-2011) focuses on the various adventures a passenger can experience while on a Royal Caribbean cruise, asking the audience “why not do this, why not do that?” The ad suggests the audience become a citizen of “The Nation of Why Not” because…well…why not? This campaign targets a similar to Carnival Cruise Lines. An even older campaign called “Get Out There” (1999-2008) plays the song “Lust for Life” in the background while showing cruise passengers participating in various excursion activities and suggests that Royal Caribbean is “way more than a cruise.” This campaign targets an adult crowd looking for adventure.

Disney added a cruise line to its franchise in 1999, seeing a need for a “genuine family cruising experience.” Today Disney splits its $1 billion media budget between Carat and Publicis. The advertisements across the years have stayed true to the “magic” of Disney and focus on the magnificent adventures and characters aboard a Disney cruise. The current campaign, “Captain’s Log” focuses on the father of the family, “The Captain” as he “reports” on the cruising “conditions,” a metaphor for his experience on board. The campaign highlights that there is something for everyone on board a Disney cruise ship and that “the difference is Disney.”

�15

Analyz

e

Public Opinion and Stakeholder Analysis

Public Opinion As a leader in the cruising industry, the public opinion of Carnival Cruise Lines and the industry in general is crucial to

Carnival’s overall success. In recent years, Carnival has dealt with a number of issues, including a poor global economy, increasing fuel costs and highly publicized maritime incidents.

Recent Carnival crises negatively impacted the public’s perception of both Carnival and the cruise line industry as a whole. These incidents include the sinking of the Costa Concordia in January 2012, which killed 32 people, and a fire onboard the Carnival Triumph in February 2013, which left the ship’s 4,000 passengers and crew adrift in the Gulf of Mexico for five days with power outages, overflowing toilets and food shortages. These calamities left consumers wary of cruising. The industry suffered another blow in early 2014 when hundreds of cruisers fell ill to norovirus, a gastrointestinal illness. This forced ships from Princess Cruise Lines, Royal Caribbean and Norwegian Cruise Lines to return to port. As a result, public opinion perceptions of the entire cruise industry dropped.

As previously noted, a February 2014 Harris Poll reported that consumer scores regarding the quality, trust and consumer intent of purchase for cruises fell 11 percent, 12 percent, and 13 percent, respectively, from 2013. In addition, results from the survey indicate that Americans have a more favorable attitude toward air travel than toward cruises, with 59 percent responding that air travel is much more reliable than taking cruises, and 54 percent agreeing that air travel is much safer than taking cruises. Among those who have never taken a cruise, 58 percent responded that they were less likely to take a cruise now than they were a year ago, with 44 percent of those who have taken a cruise agreeing with this sentiment.

Despite the Harris Poll findings, YouGov’s BrandIndex ranked Carnival Cruise Lines the most improved United States brand in consumer perception in its mid-year 2014 Buzz Rankings Report. According to Ted Marzilli, chief executive officer of BrandIndex, Carnival’s consumer perception has improved since its recent maritime incidents and is now back in line with the rest of the industry. In addition, its sales potential is greater than the rest of the cruise sector, an indication that public relations efforts to correct misperceptions regarding Carnival are resonating with consumers.

�16

Analyz

e

In response to the past negative publicity, Carnival continues its efforts to increase positive consumer perceptions of its brand and regain the trust of prospective and repeat customers. In addition to investing $300

million to enhance emergency power capabilities and upgrade the safety technology and operating systems on its entire fleet, Carnival instituted a Fuel Conservation Program that is expected to save more than one billion gallons of fuel

and reduce carbon emissions by 12 billion kilograms by the end of 2014. In December 2013, the company received the Clean Tech award from The New Economy for its demonstrated commitment to producing clean technology to improve the environment.

According to Jim Berra, Carnival’s chief marketing officer, guest satisfaction has increased considerably since Carnival announced its $500 million multi-year investment in its fleet-wide Fun Ship 2.0 product enhancement initiative in 2011 and its Great Vacation Guarantee in September 2013. The Fun Ship 2.0 program has been transforming the line’s guest experience through upgrades and renovations to dining, bar and entertainment facilities, as well as partnerships with popular celebrities and brands, while Carnival’s Great Vacation Guarantee gives consumers an opportunity to receive a 100 percent refund, complimentary transportation home and a $100 credit on a future cruise if they are not satisfied with their Carnival vacation for any reason. These programs have resonated positively in the marketplace and communicate to consumers that Carnival stands behind its brand, according to Berra. Consequently, Carnival reports that it is on track to earn $16 billion in sales this year, which would break a company record.

Throughout 2014, the monthly averages in Americans’ consumer spending have consistently exceeded the same months for each year from 2009 through 2012 and were similar to the 2013 averages, according to a Gallup poll. The increase in consumer spending since 2012, and the fact that the third quarter of 2014 was Carnival’s first positive quarter in more than two years, indicate that consumers feel more confident in the economy. A Mintel American Lifestyles 2014 report indicates that over the course of a year, the percentage of consumers who say they spend extra money on vacations nearly doubled, the greatest gain for any one area of consumer spending. Furthermore, according to October 2014 results from Luxury Cruise News’ most recent series of reader surveys, “cruise destination” ranked most important of all other booking factors and overtook “price” for the first time in its survey history—another sign that the public is more willing to spend on luxuries, such as vacations, than they have been in recent years.

�17

Analyz

e

Challenges in the past few years drew attention to the safety and reliability of the cruise line industry and negatively impacted public opinion. However, there are indications that public perception is improving. Despite its

progress, Carnival’s role in restoring the faith of consumers and its stakeholders is not complete. The company continues its initiatives to improve its product and services in order to rebuild its image and reputation and fully restore

confidence and respect for its brand.

Prospective Stakeholders It is vital for Carnival Cruise Lines to strengthen and maintain stakeholder relationships. While it is of utmost importance

to provide guests with memorable vacation experiences at an exceptional value, Carnival also works to keep its guests and crew safe, protect the environment, support philanthropic efforts and enhance the port communities that it visits, all while focusing on maintaining its profitability. Below is a list of Carnival Cruise Lines’ prospective stakeholders. A more comprehensive description of each of these stakeholders and their relative concerns and issues related to Carnival’s brand is discussed in the Public Relations and Promotions Plan.

• Governmental Agencies • Guests • Employees • Investors/Shareholders • Home and Destination Port Communities • Travel Professionals • Suppliers • Media • Charitable Organizations/Foundations •  Business Organizations and Celebrities

�18

Analyz

e

SWOT Analysis

�19

Strengths • Offers extremely affordable vacation packages,

drawing in younger and less affluent cruisers

• Numerous ports in the southern region of the US connect the company to a majority of its potential cruisers

• Carnival caters to a wide variety of consumers – families, couples and retires with a variety of all-inclusive onboard activities

Weaknesses • Past crises specifically associated with Carnival’s

cruises hurt the brand and industry reputation. • While there are a variety of onboard activities on

Carnival’s cruises, the options are basic in comparison to competitors’.

• The connotation that Carnival is known as a “value” cruise could defer customers who associate this with a lower-quality cruise.

Opportunities • Improved ships and safety investments could

attract more customers as Carnival rebuilds its reputation. • Industry growth gives a dominant company like

Carnival the opportunity to easily tap new markets. • Global and national economic upturns have

increased disposable incomes, increasing peoples’ likelihood to cruise.

Threats • The existing negative image of the cruise

industry in terms of safety hurts business.

• Environmental changes and regulations could increase the company’s operating costs.

Analyz

e

Key Implications and Issues In North America, Carnival Cruise Lines are recognized as the most prominent and well-known cruise vacation

company. The cruise industry itself is finally recovering after a few unstable years, and the prospects for both Carnival and the industry appear optimistic. Compared to other cruise lines, Carnival targets a slightly younger, less affluent group of couples and families. It positions itself as a fun and value-filled cruise using various traditional media platforms in coordination with a recent expansion into the social media sphere. The public’s perception of the company is still recovering, but has made some decent progress. Carnival is ready to satisfy its stakeholders by updating their brand’s image, and with the stronger economy supporting them, they can surge their sales re-distinguish their company and the industry.

Key Issues 1. BRAND IMAGE: Carnival is most often viewed as a “value cruise.” They attract lower-class customers, which leads

to a lower-class image. In relation to psychological pricing, it can be compared to “the K-Mart of cruises.” This means that at some point, the low prices do not make up for the value they are providing, as the customer may feel that this low price compensates for lower quality.

2. STATE OF THE INDUSTRY: The cruising industry is still not completely stable in the eyes of consumers. Although there has been definite progress, it is still problematic because Carnival sells a high-involvement product. This means that potential customers are going to do their research and must trust that the industry is safe and back under control. Currently, Carnival’s promotions focus on the emotional appeals of cruising, highlighting the “fun.” In order to reinforce positive perceptions, Carnival should also focus on explaining how the company has improved. While advertising often highlights the “fun” aspect of cruising, public relations could be utilized to help potential consumers understand updated safety and regulations.

3. CHANGING TARGET MARKET: Carnival’s current target market might not be the prime market to target in the near future. America’s demographics are drastically changing - the millennial generation has an increased presence, there are more retirees, more singles and fewer families. The company may start losing a major stock of potential customers if they do not adapt their brand image and advertising practices to target these future significant markets.

�20

Analyz

e

Campaign Objectives 1. Improve Brand Image:

Recent crises on Carnival Ships have left a lasting negative perception on Carnival and the cruising industry as evidenced by a Harris Poll taken in March 2013, a week after the Carnival Triumph crisis. The poll, which measured Quality, Trust and Purchase Intent Scores before and after the Triumph Crisis, depicted significant drops in all three categories. The Summit Group will increase Carnival’s 2013 Quality Score from a 5.25 to a 7/10. This projected score is .2 higher score than Carnival received before the Triumph debacle.

2. Increase Bookings to Bahamas Bermuda, Caribbean, Mexico and Panama:

In 2013, Carnival’s purchase intent score was ranked at a 5.29/10. The Summit Group will increase Carnival’s 2013 Purchase Intent Score to a 6.5, an 18% increase that will also set Carnival’s score above all of its competitors. Not only do we hope to increase purchase intent, but by focusing on our target destinations, it will increase purchase intent for those areas in particular.

3. Focus Marketing and PR Efforts on an untapped market:

As the industry continues to rebound, the cruise industry will be looking to book a growing population of millennials. The Summit Group wants to target a group that has hasn’t cruised in the past 3 years or has never been on a cruise before. This optimism is backed by the expectation of first time passenger growth: there are 95 million potential cruisers in the millennial generation. The Summit Group will use our Integrated Marketing Campaign to ensure that this untapped market will choose to cruise with Carnival.

�21

Strategize Anna Hrovat-Staedter

Target Audiences Primary: “The Young, Overwhelmed Couple”

Meet James and Jen. James and Jen are both 26 years old, have not cruised in the past three years and recently moved in together in a small apartment in Dallas. They are fairly new to the professional field and are beginning what they hope to be long careers. James has a sales job downtown, and Jen works in the finance department of a local company. They each make less than $49,000 per year. They have thought about getting engaged, but are in no rush for the time being, since they both want to keep getting ahead in their careers. Working 40 hours a week or more is overwhelming, and they crave situations where they can let loose and be the funny, amusing and witty people they believe themselves to be. Although they do not work more hours weekly than the average American, they still perceive themselves as being workaholics and overworked. When they do vacation, they are more likely than the national average to “only want to relax.” An easy vacation at a great value offers a chance for James and Jen to reconnect with each other while experiencing a necessary change of pace from their demanding, stressful city life. They also interact heavily with social media, considerably more than the national average, and spend a majority of their time using their cell phones.

�22

Stra

tegize

Secondary: “The Young, Busy-Bee Family” 32-year-old’s Jake and Jazzy Young and their two children, 2-year-old Sophia and 5-year-old Aiden, are in need

of a break. They currently reside in Houston, Texas, and have not cruised in the past three years. Jake works in real estate and Jazzy is a

stay-at-home mom. Despite their hectic lives, they are a close family and they love indulging their children and often times have trouble saying no to them. Jake loves to watch the Dallas Cowboys and has been cheering them on his entire life, something he wants to pass on to his children. They are looking for a way to get out of their cramped condo and into a place where they can escape daily stressors where the whole family will be happy. As a household, they make less than $100,000 per year. They are also more likely than the national average to sacrifice family time in order to get ahead in their careers. They are also more likely than the national average to buy the same products that celebrities use, especially famous athletes.

Key Insights and How They Compare Although they don’t work more than 40 hours a week, they consider themselves to be workaholics. So they PERCEIVE

they work harder than they actually do, and they have more time than someone who works 50-60 hours a week.

Position and Branding

Competitive Advantage • We have the most Southern located ports in the United States

• We have the best prices

�23

Stra

tegize

Carnival’s competitive advantage rests in our value, our port locations and how these two advantages make a vacation easier. Our value prices, as well as Carnival’s recent promotional deal of a 110% refund allows us to

target a less affluent target audience. Carnival is also ranked number one for “Best Budget Cruise” by Zagat reviews. Our primary and secondary audience do not have a large income, nor do they feel that they have a lot of extra

time. This is important to our position in the market as the cruise with the best value because our customers know they are getting a great price with lots included. Our targeted consumers do not feel they have a lot of time to dedicate towards vacation because they are very dedicated to their careers and families. Both our Primary and Secondary targets live in the South. Therefore, Carnival can promote their “close to home” ports to not only cut down the price of the vacation, but also to highlight the ease of traveling closer to home.

The Summit Group will focus on positioning Carnival as an escape from stressful day to day decision making. The primary characteristics of our brand will represent the relaxing, simple, and reassuring nature of traveling with Carnival. Decisions are easy to make on a Carnival Cruise because a Carnival Cruise offers you a value price to do it all, with easy, accessible online information, catered to our internet-friendly target audience.

The two target markets share common themes: they are not making very much money, both groups want to climb higher in their careers and they feel they are workaholics and could use a vacation. Our campaign will connect with their desire to escape from a stressful environment, and we will provide them with an easy fix: vacationing on a Carnival Cruise.

Big Idea Life is full of difficult decisions. How you vacation shouldn’t be one of them.

Creative Brief The target audience is struggling with day to day stress, and often times they are not paid enough or appreciated for

how much they give. The audience needs to feel reassured, relaxed, and light-hearted; the opposite of how they feel in their day to day lives.

�24

Stra

tegize

Scope Geography

Both our Primary Audience and Secondary Audiences live in the South. They reside in large cities like Dallas, Houston and San Antonio. Florida, Texas and Virginia are the Southern states in which both our target markets are found in the highest percentages.

Timing The Summit Group will use their campaign to gain the proper aperture to reach our audience. Most of our target

audience is working year round and have not accumulated many vacation days since they have only recently entered their careers. We will reach our target market when they are planning their vacations for the holiday months so that we know they are given time off. For those traveling with children, we aim to advertise cruises offered during school breaks such as winter break, spring break and summer break.

According to the U.S. Department of Commerce, in 2013, U.S. citizen travel to the Caribbean were highest in March, June, July and August. From this data we can see that the summer months are when most travel happens with spikes near spring break. In order to promote this travel and proper booking in advance, we would begin our campaign in late August before the holiday season and have it run throughout the holidays, until early February, in order to reach spring breakers.

Media Since Millennials comprise our primary and secondary target markets, 10 percent of our budget will go towards online

advertising. By marketing online, we will have the ability to utilize narrowcasting techniques and reach our audience at the exact moment they are ready to purchase our product.

Millennials’ digital media consumption exceeds traditional media. More specifically, Millennials are avid smartphone

�25

Stra

tegize

users, with 43 percent accessing the Internet through their phones than through computers. In this regard, using mobile media and the Internet to relay information about Carnival is critical to its success. Social media

sites such as Facebook, Twitter and Instagram, where audience-targeting features are available, will be especially effective in targeting our audience. In addition, through Google, we can target Millennials who have previously visited a

site and have not yet converted to Carnival, but still continue to search for similar products. We will also have the capability to customize keywords and ads for our target markets. Our online campaign will also include banner ads on popular sites and interactive cruise tutorials. The Summit Group will also harness other effective media platforms such as television, magazines and radio. This combination of media will ensure that our campaign reaches our audiences as the most appropriate and effective times.

Creative Concept - Big Idea The creative concept we want to own in order to make our campaign successful is as follows: Life is full of difficult

decisions. How you vacation shouldn’t be one of them. According to Simmons, of the 25-34 year-olds who live in the south and haven’t been on a cruise in the last three years, more than half (56.9%) of them work more than 30 hours a week and make less than $50,000 a year. They are 212% more likely to be expecting a baby, 169% more likely to have a child under the age of two and 167% more likely to have a child between the ages of two and five. They are in transition between recently graduating college and beginning a self-sustaining, reliable, adult life. They work long hours and don’t make very much money. While leading very busy lives, they are also starting families and they are constantly plagued with more difficult decisions that affect those around them. Carnival can offer them the easy, relaxing, affordable and fulfilling vacation they deserve.

�26

Create

Stra

tegize

Claudia Shapiro

Campaign Theme The campaign theme includes the current Carnival logo, as we have found no evidence that it is disliked. The slogan

we will use throughout the campaign is “With Carnival, Life’s a Breeze,” exemplifying the Big Idea that Carnival makes life easier and playing on the fresh sea breeze one experiences on a Carnival cruise.

Unifying Elements of the Campaign The unifying tone of the campaign will be lighthearted, amusing, relatable, reassuring and relaxing. The slogan, as

mentioned above, is “With Carnival, Life’s a Breeze.” We will continue to use the fog horn sound currently used in Carnival’s campaigns, as we have not found any evidence that it negatively impacts the brand’s image.

To whom does the creative appeal? The creative campaign appeals to both the purchasers and the influencers. The campaign appeals to the purchasers

(who are also the consumers) as they receive a lot for their money. It also appeals to influencers through word of mouth and social media interactions. According to Simmons, our consumer is internet savvy and heavily engages with social media making it easy for them to influence those around them through their various social networks.

How are the unique properties of the brand emphasized? Carnival’s competitive advantage rests in our value, location and variety. We will demonstrate various examples of each

of these in our creative executions. For example, one commercial could emphasize how much is included in a traveler’s pre-paid fare, highlighting both value and variety. Another could emphasize how close and accessible our large number of ports are to our target audience in the south.

�27

Creat

e

How does the creative alter the brand personality? Carnival’s current campaigns focus on the “Fun” initiative, inviting consumers to a high intensity cruising experience. We

will reposition the brand to demonstrate how Carnival can be a relaxing, reassuring, easy, stress-free cruise, while keeping the variety and all-inclusivity that we exemplify. Carnival will be positioned as an escape from the difficult decisions and stresses of everyday life. On a Carnival cruise, decisions are easy to make because a Carnival cruise offers you the opportunity to do it all for an affordable price.

�28

Creat

e

Broadcast 1 - Expensive Dinner (TV)

�29

SHOT 2

Man orders roast chicken. Woman orders expensive item on the menu (ex: Lobster, Rib-eye steak, etc.)

SHOT 3

Man looks nervous.

SHOT 1

Man and woman read menus at a nice restaurant.

(White table cloths, elaborately folded napkins, etc.)

SHOT 4

Waiter clears pates and returns to ask about dessert.

Creat

e

�30

SHOT 5

Woman order chocolate cake and a coffee.

SHOT 6

Man looks nervous again.

SHOT 8

Pan to a view of the ocean out the dining room windows.

Carnival Logo

“With Carnival, Life’s a Breeze”

SoundFX: Fog horn

SHOT 7

Man asks for the check nervously. Waiter tells him its included.

Creat

e

Broadcast 2 - Girls Luncheon (Radio)

NATSOT: Restaurant noise (voices, silverware and flatware clinking, etc.)

VO 1: So glad we could grab lunch. I feel like we have so much to catch up on.

VO 2: I know. Me too. I’ve been so busy, working incessantly and trying to plan an affordable and fun family vacation. It’s so stressful.

VO 1: Really?

VO 2: Yes. We want to go somewhere warm but everything is so expensive, what with hotels, long distances to travel, trying to make everyone happy. There are so many options to pick through and its hard to sift through all the clutter online.

VO 1: We just went on a Carnival cruise and it was the best experience!

VO 2: I’ve been meaning to ask you how it was.

VO 1: The planning and booking online was so easy. I just picked when and where we wanted to go and they gave me a variety of options to choose from with rates starting as low as $52 a night. They also have so many ports close to home so there was no hassle getting to the ship.

VO 2: But was there enough to do on the ship?

VO 1: Yes! There was something for everyone. The kids could play in the pools, go down the waterslides or hang out with other kids on board at the kids clubs. Jim and I could spend time together at the adult only pool, at a show, or dining at one of the amazing restaurants on board. It was wonderful.

VO 2: Were all these things included in the price of the trip though?

VO 1: Yes, Carnival’s rates include so many activities and dining options. It made our vacation fun and easy.

VO 2: Wow, well I guess I know where I’ll be looking when I get home.

VO 3: With Carnival, Life’s a Breeze. Visit Carnival dot com today to plan your next adventure.

Sound FX: Fog horn.

�31

Creat

e

Broadcast 3 - Have it All (TV)

�32

SHOT 1

Parents lounge by the pool

SHOT 2

Boy comes over to parents

Boy: “Mom, can I swim in the pool and go down the waterslide?”

Mom: “Yes, you can.”

SHOT 3

Boy goes down the waterslide

Creat

e

�33

SHOT 4

Boy: “Mom, can I get chocolate and vanilla ice cream?”

Mom: “Yes, you can.”

SHOT 5

Boy has a chocolate and vanilla ice cream cone

SHOT 6

Back at home, mom and boy grocery shop together

Creat

e

�34

Creat

e

SHOT 7

Boy: “Mom, can I get both these cereals?”

Mom: “No, just pick one.”

SHOT 8

Boy: “Mom, can I get two kinds of ice cream?”

Mom: “No, just pick one.”

SHOT 9

Boy: “But Mom, on the Carnival boat, I got to have both of everything.”

�35

Creat

e

SHOT 10

Mom: “That’s because with Carnival, you don’t have to choose.”

SHOT 11

“With Carnival, Life’s a Breeze”

Sound FX: Fog horn

Online - Have it All

�36

Creat

e

�37

Creat

e

Print - Have it All

Media Objectives Our media objective is to reach our audience at the exact moment when they wish to plan a cruise. We wish to keep

Carnival Cruises in the forefront of their mind as they plan their holiday vacations. We want to utilize internet advertising to reach a millennial audience, particularly through sites that are popular with customers in the South.

Aperture Moment The aperture moment to reach our audience is when they are planning a vacation. According to CruiseCritic.com, most

cruises are booked up to three months in advance. We know that our primary market likes to go on vacations around the holidays, when they can get time off according to Simmons data. Our secondary audience likes to vacation around this time, as well as around Spring Break, according to Simmons data. The aperture moment for our target markets therefore would be about 3 months in advance of these dates.

The aperture moment to reach our audience would be while they are searching for information about vacations. This information is usually searched for on the internet, according to Simmons data. Our audience may have been prompted to search for vacation information after viewing a television ad, since they are avid television viewers according to Simmons. We hope to reach our target market during their search for vacation information, because this product is an expensive purchase. It would be opportune to reach them when they are already considering going on vacation.

Demographic Target Summit Group’s primary demographic target is the 25-34 year old couple who lives in the South and makes less than

$50,000 a year individually. These people feel as though they are working extremely hard and deserve a vacation, according to Simmons data. Carnival cruises are affordable vacations that include much more than one could get for the same price on land.

�38

Impact Emma Leuman

Summit Group’s secondary audience is the 25-34 year old couple who lives in the South and has at least one child. These people want to take their children on a vacation that is fun and experience-driven, according to Simmons.

Carnival cruises can provide this vacation for a cheaper price.

Media Strategies

Timing of the Campaign: Parts of Day Summit Group’s primary target demographic works during typical business hours. They consume the most media after

their shifts, according to Simmons data. Our internet advertising will be concentrated between the hours of 4 p.m. and 11 p.m., when our target markets are most likely to be using the web, according to Simmons data. Our broadcast advertising will be placed during primetime hours and late night hours, when the majority of our target market is watching television, according to Simmons data. Finally, our radio broadcast advertising will be placed during the times when our target market is driving to and from work. According to Simmons data they are more likely to be listening during these times than at any other time.

Regional Focus Our target market is based in the census region known as the “South.” The specific cities that we are targeting are

Houston, Dallas and San Antonio, the three cities of the top 14 DMA’s that our target market is likely to be in. We have chosen media that reflects this target. The media vehicles that we have chosen are those that are used the most by those in the South. Our local television spots and outdoor advertising will be focused in these spots. However, we have also chosen to advertise across national media in order to maximize our reach.

Media Scheduling Strategies We will be utilizing flighting in our campaign. Our campaign will run for six straight months, with a period of three

months with only a few advertising placements and more focus on public relations. We want to focus our advertising on the

�39

Impa

ct

period in which people are planning their vacations, and according to Simmons data they are not planning vacations during the summer months, when their home location is experiencing beautiful weather. Our media

scheduling will alternate with our public relations events in order to keep Carnival Cruises in the forefront of consumers’ minds.

Rationale for Media Classes Television – Summit Group has chosen to place ads on television because of its reach. While television viewership has

declined, it still has the power to draw in a majority of our target market. According to Simmons, our target market is especially likely to watch late-night television, with an index of 119 for viewing television from 8 p.m. to 9 p.m. They are also likely to tune into large-scale events, like the Grammy awards and the Super Bowl, with indexes of 135 and 116 respectively. By using television we will be able to convey aspects of Carnival Cruises that print and radio advertisements don’t allow.

Internet – Internet advertising has been a growing sector of media planning. Our target demographic uses the internet on a daily basis, according to Simmons data. Our target demographic uses the internet to book their vacations as well. By using the internet we will be able to reach our target at the aperture of their purchase.

National Magazines – Summit Group has chosen to place ads in national magazines. Print readership has declined in recent years according to marketingcharts.com, however our target demographic still constitutes a large presence in magazine readership. Print ads allows us to reach large segments of our audience on a monthly basis.

Spot Radio – Radio advertising, if placed in effective dayparts, can be useful for creating affinity among our target market. We will place our spot radio advertising in local Southern spots, during morning and evening drive times. Radio advertising will help Carnival Cruises become a household company name for a low cost.

Outdoor – Outdoor advertising will be utilized in local Southern spots. Summit Group chose to place some advertisement in the outdoor category in order to create name recognition in our target market. Outdoor is a medium that can be purchased for not a lot of money and provides great frequency.

�40

Impa

ct

Rationale for Media Vehicles Television – We have chosen to utilize television’s many aspects to advertise Carnival Cruises. We have chosen to place

ads during The Big Bang Theory, Law & Order SVU, Grey’s Anatomy and The New Girl. These programs were chosen because our target demographic has Simmons indexes with these shows of 137, 144, 157 and 207 respectively. We have also chosen to place spots during college football games, NBA regular season games and NFL preseason games, as these programs have a high affinity with our target market according to Simmons data. Summit Group will place ads on national cable television as well. Utilizing programs such as Storage Wars, Pawn Stars and Tosh.0, we will reach a large segment of our audience. Our target market has indexes of 152, 121 and 245 respectively. Local spot television will also be used. We will advertise during the morning and evening news segments in Southern areas of the United States.

Internet – Summit will advertise on Facebook, Expedia, ESPN and Yahoo. We have chosen these websites because our target demographic visits them regularly, according to Simmons data. Our target market has indexes of 131, 149, 236 and 147 with Facebook, Expedia, ESPN and Yahoo respectively.

National Magazines – Summit Group has chosen to place ads in ESPN The Magazine, US Weekly, Cosmopolitan and OK! USA because these magazines are read by high percentages of our target market according to Simmons data. These magazines relate to our target market’s interests, according to Simmons: sports, women’s interests and celebrity culture.

Media Flow Chart Summit Group’s Media Flow Chart puts our campaign time into a visual perspective. It shows that we will be focusing

our media efforts into the six months around the holidays: September, October, November, December, January and February. We have chosen this tactic because, according to cruisecritic.com, people plan their vacations up to three months in advance. By focusing on this time period we will reach people at the times when they are planning their holiday and Spring Break vacations.

See appendix for charts.

�41

Impa

ct

Media Expenditures Summary Summit Group’s Media Expenditures Summary shows where our budget was allocated. As can be seen, 26% of our

budget will be spent on impact media, 63% will be spent on non-impact media and 11% will be allocated to interactive media. These percentages were chosen based on Simmons data that showed high participation by our target markets in these media categories.

See appendix for charts.

Public Opinion Status As a leader in the cruising industry, monitoring public opinion of Carnival Cruise Lines, and the industry as a whole, is

crucial to Carnival’s overall success.

Media Tracking Newspaper articles from the past year regarding Carnival Cruise Lines highlight not only incidents that are indicative of

the company’s need to improve public perception of its brand, but also the initiatives that it has taken in order to achieve this goal and the resulting positive effects.

�42

Impa

ct

Promote Jake Steinberg

“Norovirus outbreaks make both cruise lines and passengers leery” Christopher Elliott, The Washington Post February 13, 2014

“Carnival Corporation Multi-Year Fuel Conservation Program Expected to Save More Than One Billion Gallons of Fuel and Reduce Carbon Emissions by 12 Billion Kilograms by End of 2014” PRNewswire, The New York Times October 2, 2014

Prospective Stakeholders Governmental Agencies

According to Carnival Corporation’s Sustainability Report, various international, national, state and local laws regulate Carnival cruise ships. Of great concern to the governmental agencies that enforce these laws is that Carnival complies with regulations regarding health, environmental, safety and security matters in relation to its guests, crew members and fleet of ships. For instance, the International Maritime Organization sets forth stringent international standards for the design, construction and operation of cruise ships, and is responsible for improving maritime safety, as well as preventing pollution from ships.

Guests Guests’ overall satisfaction is the most important component of Carnival’s success. Guests expect employees to provide

outstanding service, so that they can experience high-quality, memorable vacations. The Costa Concordia and Carnival Triumph incidents had a damaging effect on guests’ perception of Carnival’s brand. After these incidents, a majority of Americans reported having a more favorable attitude toward air travel than toward cruises. In addition, many complaints filed with Carnival’s Consumer Affairs make it apparent that guests yearn for reassurance regarding the safety and security of Carnival’s ships. Guests also find comfort in knowing that employees are properly trained in the event of an emergency or crisis. In addition, guests appreciate updated ships with enhanced amenities, along with competitive cruise prices.

Employees Recent crises, such as the Costa Concordia and the Carnival Triumph, have had a profound impact on Carnival’s

employees, both onboard and onshore. According to Carnival Cruise Lines employee reviews, employees want assurance that Carnival is dedicated to providing a safe and healthy work environment, especially by maintaining ships that meet industry safety standards. They want confirmation that Carnival performs comprehensive inspections and reviews of existing safety and emergency responses, in addition to providing staff training and proficiency drills. Furthermore, employees’

�43

Prom

ote

concerns include opportunities for career development, incentives for outstanding performance and fair compensation.

Investors/Shareholders Carnival has faced various detrimental incidents, which significantly affected its profitability and brand perception. The

third quarter of 2014 was the company’s first positive quarter in more than two years. Because investors benefit from the company’s success and growth, they want to ensure Carnival’s brand continues to recover from the negative publicity of the past. The company has recently undertaken a series of initiatives, including the implementation of stricter air emission regulations and the mitigation of escalating fuel costs, which have temporarily raised Carnival’s costs, but are expected to prove beneficial over the long term.

Home and Destination Port Communities According to Micky Arison, Carnival Corporation & plc chairman of the board, the company is committed to serving the

community. Carnival strives to make a difference in its homeports and regions in need around the world. Carnival has made significant progress in reducing fuel and greenhouse gas emissions. According to its Sustainability Report, Carnival Corporation is nearing its goal of reducing greenhouse gas emissions from shipboard operations by 20 percent by 2015. In addition, communities want to know that Carnival is committed to the preservation and protection of local habitats, ensuring that marine life, coral reefs and other ocean habitat are not harmed. The communities in which Carnival operates and visits count on the company for community development, providing emergency aid and relief in times of crises and instituting recycling and donation programs.

Travel Professionals Carnival relies on travel agents to bring in business. According to Lynn Torrent, Carnival’s executive vice president of

sales and guest services, in 2013, travel agents had expressed frustration with Carnival’s policy changes, including adjustments in their commission fares. In response to agent dissatisfaction, Carnival launched Carnival Conversations, an

�44

Prom

ote

agent outreach program designed to enhance communication and relationships with travel agents. It is important to travel agents that Carnival provides exceptional experiences for guests at competitive prices so that

consumers instill their trust in the agents’ travel advice. Accordingly, travel agents use Carnival’s Great Vacation Guarantee as an enticing sales tool for first-time cruisers. This guarantee is the only one of its kind in the cruise industry.

According to Jim Berra, Carnival’s chief marketing officer, this initiative shows that Carnival stands behind its brand, which travel agents appreciate.

Suppliers Carnival’s suppliers provide its cruise ships with items needed for daily operation, such as engine parts, toiletries, food

and costumes for shows and entertainment. According to Scott Thompson, vice president of Supply Chain, Carnival Cruise Lines’ in-house software system enables the company to process 40,000 purchase order lines per week. Suppliers to Carnival Cruise Lines are concerned with contracts, negotiations and fair pricing. It is in the suppliers’ best interest that Carnival’s brand maintains a positive public image, so that guests will associate their products with fun and pleasure. In addition, if Carnival remains profitable, it is more likely to continue its relationships with its vendors.

Media The media depends on Carnival to communicate with them in a truthful manner, especially during times of crisis.

Carnival uses a proactive media-centered communications plan that is designed to mitigate the risk of negative attention, while directing focus to any positive steps taken. This method can help Carnival minimize undesirable public perceptions of its brand. This is imperative, as negative press hurts consumer demand and pricing, subsequently impacting Carnival’s financial performance.

Charitable Organizations/Foundations Carnival encourages volunteer activities and philanthropic events in an effort to improve communities throughout the

world. The company often partners with organizations and foundations to host fundraisers on its ships. As of July 2014, Carnival had raised more than $5 million for St. Jude Children’s Research Hospital and is expected to raise $8 million by

�45

Prom

ote

2017. It is important to partnering organizations and foundations that Carnival maintains a positive brand image because having their names associated with Carnival directly impacts their reputations as well. Carnival’s

contributions are widespread; however, it primarily focuses on organizations based in its homeport communities throughout the United States.

Business Organizations/Celebrities Carnival partners with various business organizations and celebrities to expand the cruise line’s presence in certain key

markets. In July 2014, Carnival Cruise Lines partnered with the Dallas Cowboys, making it the official cruise line of the National Football League, which helped expand Carnival’s presence in the Texas market. In return, the Cowboys rely on Carnival to bring its unique brand of fun to fans. Also, in January 2014, Carnival announced its Carnival LIVE Concert Series, which features well-known music artists. Business organizations and celebrities depend on Carnival to maintain a positive image with the public so that their affiliation with the cruise line proves beneficial.

Public Relations Strategy In an effort to continue to rebuild Carnival Cruise Lines’ image and reputation and fully restore the public’s confidence

and respect for its brand, The Summit Group will aim to capture the millennial market—specifically, Southerners, ages 25-34, who earn less than $50,000 per year and have never cruised. We will promote Carnival as a cruise line that provides the opportunity for rest, relaxation and pampering for adults, while at the same time, offering unique experiences for young children. By emphasizing the slogan, “With Carnival, Life’s a Breeze,” we want the millennial market to view a Carnival cruise as the perfect way to de-stress and escape a hectic lifestyle at an affordable price. Carnival will hold various publicity programs, staged events, contests, drawings and press conferences in order to garner positive attention to its brand by both its stakeholders and the public.

In addition to planned events and other activities to improve public perception of Carnival and engage its stakeholders, the cruise line will also maximize its partnership with the Make-A-Wish Foundation. According to a 2014 Millennial Impact Report by Achieve, which surveyed more than 1,500 employed millennials, ages 20 to 34, 87 percent had donated money

�46

Prom

ote

toward a nonprofit in the last year, with the majority of that percentage giving more than $100. In addition, the report found that millennials care about issues and are attracted to the humanistic aspect of a cause. By

highlighting its relationship with the altruistic efforts of the Make-A-Wish Foundation, which grants the wishes of children with life-threatening illnesses, Carnival will emphasize its philanthropic efforts, which is very important to

millennials. The Make-A-Wish Foundation is the perfect nonprofit organization for Carnival to partner with, as 10.8 million millennials between the ages of 25-34 have children, and the number of new millennial parents stands to grow exponentially over the next decade, according to a 2013 “Millennials as New Parents” study conducted by Barkley.

Media Relations Strategy The Summit Group will work to enhance positive coverage of Carnival Cruise Lines in the media so that information to

the public is presented accurately and fairly, thus, improving Carnival’s brand image with its target audiences and stakeholders. Furthermore, we will work to ensure that Carnival maintains good media relationships and that it can monitor press coverage. In order to achieve these goals and to extend the reach of our message to our target audiences and stakeholders, Carnival will invite key media contacts from national and local newspapers, magazines and television stations to its planned events, such as the “Weekend of Relaxation and Family Fun,” described below, and this event’s associated press conferences. Press kits and press releases that provide the media with factual, reliable and comprehensive information will be sent out in advance of planned events, such as these, in order to garner media attention and maximize attendance. A list of the key media contacts can be found in the Appendix.

Press Conferences As previously noted, the media contacts listed in the Appendix will be invited to attend two Carnival Cruise Lines’ press

conferences in order to attract positive media attention to Carnival’s brand image and promote the cruise line as one that is philanthropic, reliable and well-suited for its target audiences and stakeholders.

The first press conference will be held on November 25, 2014 to announce its partnership with the Make-A-Wish

�47

Prom

ote

Foundation to host the two-day “Weekend of Relaxation and Family Fun” fundraising event. Details of the event as well as planned promotional activities will be discussed in order to attract public, stakeholder and media

attention and interest.

The second press conference will be held on December 14, 2015 to discuss the results of Carnival’s campaign to attract a Southern millennial audience, ages 25-34, who earn less than $50,000 per year and have never cruised. Although the main focus of this press conference will be for Carnival to reveal the results of its campaign, the cruise line will also briefly discuss current news, including safety enhancements, ship upgrades and new long-term goals and programs to improve customers’ experience.

Public Relations Tactics

Main Event In order to promote Carnival as a cruise line that can offer its target audiences an affordable and fulfilling vacation where

both relaxation and fun are possible, in addition to appealing to its various stakeholders, a two-day “Weekend of Relaxation and Family Fun” event will take place in Miami, Florida on February 7-8, 2015 from 10 a.m.-9 p.m. onboard the Carnival Splendor. While the ship is docked, numerous activities for adults and children will take place, and guests will have access to all of the ship’s amenities and dining options, just as they would during a scheduled cruise. In addition, there will be onboard activities geared towards maintaining and enhancing stakeholder relationships. (See below for a description of activities.)

Staging the event in Miami will give Carnival the best opportunity to target millennials in the South, since Miami is a major homeport for the cruise line and easily accessible from many cities in the South. Also, holding the event in February will give Carnival’s target audience ample time to book their vacations for the popular months of March, June, July and August.

Purpose The main goals of the “Weekend of Relaxation and Family Fun” event are twofold: to promote Carnival Cruise Lines as

�48

Prom

ote

a vacation option for millennials, specifically those in the South, ages 25-34, who earn less than $50,000 per year and have never cruised, and to appeal to Carnival’s stakeholders.

Because Carnival’s target audiences might be hesitant to cruise with young children onboard, either because they do not have children of their own or because they have decided to vacation without their children, the Summit Group will

emphasize that the opportunity exists to take a Carnival cruise and still experience rest and relaxation. In other words, it is possible for Carnival to offer, on each of its cruises, the opportunity for millennials traveling without children to experience a stress-free vacation, and for millennials traveling with their children to do the same and also partake in family activities.

Charitable Partnership As previously noted, Carnival Cruise Lines will partner with the Make-A-Wish Foundation to host the “Weekend of

Relaxation and Family Fun” fundraising event.

Spokesperson Carnival Cruise Lines partnered with the Dallas Cowboys in July 2014 and will hire Tony Romo, the starting quarterback

for the Dallas Cowboys, as its spokesperson for the “Weekend of Relaxation and Family Fun” event. Romo is the ideal spokesperson to represent Carnival and connect with the Southern millennial population. According to a January 2014 Harris Poll, professional football is the most popular sport in America for adults over the age of 18. Romo, 34, is an outstanding and respected National Football League player who is married and has two young boys ages 2 and 9 months. He donates his time to charities and makes significant monetary contributions. He also runs a free football camp for children in his hometown of Burlington, WI, where he spends a great deal of time with the campers during the summer months.

Using Romo as a spokesperson during this Miami-based Carnival event will help expand Carnival’s commitment beyond the Texas market, where it normally partners with the Cowboys and where Romo is most well-known. Through Romo’s popularity, The Summit Group aims to attract Southern millennials from other states to attend the event. Should the Cowboys advance to the Super Bowl, Romo will play on February 1, 2015, and will then be available for the Carnival event.

�49

Prom

ote

Some Relaxing Activities for Adults During the two-day event, adults will have unlimited access to Carnival Splendor’s Serenity Adult-Only Retreat, an

oasis of complete peace and swaying hammocks where couples can reconnect. The ship also features Cloud 9 Spa, a 40,000 square-foot spa that provides top quality features and treatments in an elegant setting of tranquility. Cloud 9 Spa

will offer stressed-out millennials the opportunity to be pampered by Carnival’s experienced and talented staff members. Whether couples opt for a couples massage or choose to soak in the 91°F thalassotherapy pool, with soothing jets of water massage, they will have the opportunity to experience the relaxing enjoyment that Carnival offers.

Some Fun Activities for Children While millennials with young children relax at Serenity or Cloud 9 Spa, Camp Carnival will offer supervised fun

for children ages 2-11. Children can enjoy Seuss at Sea, the Splash Park, the signature Carnival Twister Waterslide and many other organized activities, such as Carnival’s Teddy Bear Making Workshop where children can create bears to be donated to the Make-A-Wish Foundation, an important Carnival stakeholder. Parents can be assured that the counselors at Camp Carnival all have childcare experience. When the sun goes down, the counselors will still be available to supervise the children, while their parents enjoy themselves at night, perhaps at a romantic dinner, the Carnival Splendor’s onboard nightclub or the Royal Flush Casino.

Engaging Stakeholders In order to appeal to Carnival’s home and destination port communities, interactive information booths will be placed

in several locations onboard, which will highlight the ongoing success of the cruise line’s Fuel Conservation Program to reduce fuel and greenhouse gas emissions. According to a March 2014 poll commissioned by the Clinton Global Initiative and Microsoft, 76 percent of millennials are focused on preserving the environment as compared to 24 percent of their parents. In this regard, not only will these information booths appeal to Carnival’s target audiences, but they will also appeal to the members of the port communities, who are committed to the preservation and protection of local habitats.

Carnival will invite travel agents to its weekend event in order to enhance their working relationships with the cruise line

�50

Prom

ote

and encourage them to bring in business. Tables will be set up in various locations throughout the ship, so guests at the event can inquire and gain information regarding Carnival cruise vacations. Guests will be offered a

10 percent discount as an incentive to book a Carnival cruise at the time of the event. This will be an enticing sales tool for the travel agents to present to guests and will help instill the guests’ trust in the agents’ travel advice.

Schedule of Events with Tony Romo Guests at the two-day event will have unlimited access to all of Carnival Splendor’s amenities and dining options. In

addition, the previously mentioned activities will take place on a continuous basis. The activities involving Tony Romo, however, will be scheduled.

February 7, 2015

“Meet-and-greet” – Tony Romo will be onboard to sign autographs during a meet-and-greet from 11 a.m.–1 p.m.

“Beat the Pro – Football Throwing Challenge” – Between 3-5 p.m., participants 18 years and older will have the opportunity to “compete” against Romo in a football throwing challenge. A hanging rubber tire will be placed at a distance of 15 yards for fans and 30 yards for Romo. The best out of three attempts wins. In the event of a tie, the participant will be declared the winner. Prizes include vouchers and coupons to be used on future Carnival Cruise Line vacations. Other prize giveaways include a mix of promotional items, such as Carnival tote bags, t-shirts, jackets and backpacks as well as promotional items from some of Carnival’s suppliers in order to appeal to them while promoting their brands as well.

February 8, 2015

“Meet-and-greet” – Tony Romo will be onboard to sign autographs during a meet-and-greet from 11 a.m.–1 p.m.

“Beat the Pro – NFL Trivia Contest” – Between 3-5 p.m., Tony Romo will be onboard to challenge participants 18 years and older, to a NFL trivia-based competition. Romo, and one participant at a time, will have 15 seconds to answer a pre-determined football-related trivia question. The first person to answer correctly before the 15 seconds are up is declared the winner. If neither Romo nor the participant answers correctly, no winner will be declared. Prizes include vouchers and coupons to be used on future Carnival Cruise Line vacations. Other prize giveaways include a mix of promotional items, such

�51

Prom

ote

as Carnival tote bags, t-shirts, jackets and backpacks as well as promotional items from some of Carnival’s suppliers in order to appeal to them while promoting their brands as well.

Dallas Cowboys’ AT&T Stadium Promotional Activities Since partnering with the Cowboys, the Carnival brand has been highly visible on digital marquees in AT&T Stadium.

Beginning on November 27, 2014, Thanksgiving Day, during a home game against the Philadelphia Eagles, the stadium’s digital marquees will promote the “Weekend of Relaxation and Family Fun” event, highlighting Romo’s participation. This promotion will also run during the Cowboys’ last home game of the regular season on December 28, 2014 against the Indianapolis Colts. Should the team advance to the NFL playoffs, the promotion will be featured during all home games.

Because the Cowboys are an important Carnival stakeholder, in return for their efforts, Carnival will offer their fans the opportunity for a memorable, fulfilling experience. At each of these home games, including any playoff games, all ticketholders will be entered into a “Weekend of Relaxation and Family Fund” drawing. Twenty ticketholders’ names, at each home game, will be drawn. Each person will win free admission for four to the two-day event, free airfare to the event and a voucher for a free three-day cruise for four people on a Carnival Cruise Lines’ ship of his or her choice, providing the cruise is taken within the next 12 months.

Social Media Contests The Summit Group plans to take advantage of millennials’ extensive use of social media by creating Carnival contests on

Facebook, Twitter and Instagram, where audience-targeting features are available and mass opinion can be tracked. In line with its campaign theme, “With Carnival, Life’s a Breeze,” Carnival will hold three Social Media Contests to promote its brand as one that caters to millennials and can provide a cruising vacation that is both relaxing and fun.

The first social media contest will take place starting January 7, 2015, one month before the “Weekend of Relaxation and Family Fun” event. Via Facebook and Twitter, people will have a chance to share or retweet a post about the upcoming event. They will then automatically be entered into a drawing to win two free tickets to the event. There will be a maximum of 50 winners. Romo will also promote the event through these social media sites to create interest among Carnival’s target

�52

Prom

ote

audience.

During the second contest, participants of the “Weekend of Relaxation and Family Fun” event will have the opportunity to share their favorite photo from the event on Twitter, Facebook or Instagram, and will automatically be

entered into a drawing that will be held on March 6, 2015. Fifty winners will be chosen at random and will receive a 50 percent discount on a four-day Carnival Cruise for two that must be taken within the next 12 months.

In addition, Carnival will launch a third contest on Facebook, asking people to become fans of its Facebook page and to submit a paragraph of 200 words or less explaining why they would be excited to take a Carnival cruise that could provide both relaxation and fun. On March 30, 2015, Carnival will select one grand prize winner to receive, for himself or herself and a guest, an all-expense paid annual Carnival Cruise Line vacation for life.

Ticket Information and Raffle Drawing Tickets to the “Weekend of Relaxation and Family Fun” event will be sold in advance on Carnival’s website starting

December 1, 2014, but can also be purchased in person on each day of the event. The price of a ticket for the two-day event is $20 for adults and $10 for children ages 6-17. Children under the age of 6 will be admitted for free. The option of purchasing a one-day ticket will also be available. The price of a one-day ticket is $15 for adults and $7.50 for children ages 6-17, with children under the age of 6 attending for free.

It is The Summit Group’s hope that the public will see the value in purchasing a two-day ticket. Since the Carnival Splendor normally carries up to 3,006 passengers, Carnival will sell a maximum of 3,000 tickets to avoid overcrowding. All proceeds will benefit the Make-A-Wish Foundation, which will be clearly explained on carnival’s website and will also be written on each ticket. This will reinforce Carnival’s philanthropic efforts and emphasize the importance of this stakeholder relationship. One hundred free tickets will be reserved for children and their families who are affiliated with the Make-A-Wish Foundation. The opportunity will exist for ticket-holders to make an additional donation to the Make-A-Wish Foundation, either when purchasing tickets in advance online or during the two-day event.

As an added incentive to purchase a two-day ticket, all ticket-holders who do so will be entered into an Onboard Raffle

�53

Prom

ote

Drawing. There will be one first-place prize, three second-place prizes and five third-place prizes. First place will consist of an all-expense paid nine-day Carnival Cruise Line vacation for four people, including airfare.

Second place will consist of an all-expense paid five-day Carnival Cruise for four people, including airfare. Third place will consist of an all-expense paid three-day Carnival Cruise for four people, including airfare. Winners can choose from

various destination options and ships, but all cruises must be taken within the next 12 months.

Advertising To promote the event, a free standing insert will be placed in Sunday newspapers throughout the South beginning

November 30, 2014 through February 1, 2015 for a total of 10 times.

Public Relations and Promotional Budget Two-day Media Tour: $20,000

Press Kit: $30,000

Media Relations: $50,000

Free Standing Inserts plus redemption costs: $275,000

Spokesperson: $1,000,000

“Weekend of Relaxation and Family Fun” Event Marketing: $1,500,000

Consumer Promotions including prize giveaways and free cruises: $2,000,000

Total: $4,875,000

�54

Prom

ote

Media Flow Chart

�55

Appendix

Media Expenditures Summary

�56

Press Kit

�57

Press Releases

FOR IMMEDIATE RELEASE November 25, 2014 Issued by: Carnival Cruise Lines Contact: Jake Steinberg, (646) 678-2377 or jsteinberg2@wisc.edu

Carnival Partners with Make-A-Wish Foundation to host “Weekend of Relaxation and Family Fun” Event

MIAMI - Carnival Cruise Lines announced today that it will partner with the Make-A-Wish Foundation to host its first-ever “Weekend of Relaxation and Family Fun” event to help raise funds to grant the wishes of children with life-threatening illnesses.

The two-day “Weekend of Relaxation and Family Fun” event will be held onboard the Carnival Splendor at the Miami port on February 7-8, 2015 from 10 a.m.-9 p.m. Tickets to the event will be sold in advance on Carnival’s website, starting December 1, 2014, but can also be purchased in person on each day of the event. The price of a ticket for the two-day event is $20 for adults and $10 for children ages 6-17. Children under the age of 6 will be admitted for free. The option of purchasing a one-day ticket will also be available. The price of a one-day ticket is $15 for adults and $7.50 for children ages 6-17, with children under the age of 6 attending for free. All proceeds will benefit the Make-A-Wish Foundation.

All ticketholders who purchase a two-day ticket will be entered into an onboard raffle drawing and will be eligible to win an all-expense paid three-day, five-day or nine-day Carnival Cruise Line vacation. Winners will be able to choose from various destination options and ships.

“We value our partnership with the Make-A-Wish Foundation, and this event aims to help make a difference in the lives of children with life-threatening medical conditions. It is a great opportunity to give back to the community, and we encourage

�58

everyone to check it out and have the chance to win extraordinary giveaways, including free cruises,” Carnival Cruise Lines CEO Gerry Cahill said.

Onboard activities at the two-day event include the opportunity to experience Serenity Adult-Only Retreat, an oasis of complete peace where couples can reconnect, and Cloud 9 Spa, a 40,000 square-foot spa that provides top quality features and treatments in an elegant setting of tranquility. Adults will also have use of Carnival Splendor’s onboard nightclub and the Royal Flush Casino. Children can enjoy Seuss at Sea, the Splash Park, the signature Carnival Twister Waterslide and many other organized activities. Supervised fun is available for children ages 2-11 at Camp Carnival. All guests can also make use of the many dining options.

“Carnival prides itself in making available to our customers affordable cruising options that provide both relaxation and fun. This two-day event on the Carnival Splendor will offer the perfect opportunity to experience the wonderful activities and amenities that a Carnival cruise can deliver,” Jim Berra, chief marketing officer for Carnival Cruise Lines said.

To learn more about Carnival Cruise Lines’ “Weekend of Relaxation and Family Fun” event, call 1-800-CARNIVAL or visit carnival.com.

###

�59

FOR IMMEDIATE RELEASE December 1, 2014 Issued by: Carnival Cruise Lines Contact: Jake Steinberg, (646) 678-2377 or jsteinberg2@wisc.edu

Carnival Hires Dallas Cowboys’ Quarterback, Tony Romo, as Spokesperson for “Weekend of Relaxation and Family Fun” Event

MIAMI – Carnival Cruise Lines officially announced today that Dallas Cowboys’ starting quarterback Tony Romo will be the spokesperson for its two-day “Weekend of Relaxation and Family Fun” event to be held on February 7-8, 2015 at the Miami port onboard the Carnival Splendor.

“We are so excited to have Tony play such an integral role in our event. He has not only demonstrated that he is an outstanding football player, but he is a respected member of our community, who supports many charitable organizations. Carnival is thrilled to be connected with him in this regard,” Jim Berra, chief marketing officer for Carnival Cruise Lines said.

Romo will be available both days of the event to sign autographs and do a meet-and-greet. In addition, guests will have the opportunity to interact with him during planned activities, such as a football throwing challenge and a National Football League trivia contest. Prize giveaways will be awarded to the winners of these activities, which include vouchers and coupons to be used on future Carnival Cruise Line vacations, and a mix of promotional items, such as tote bags, t-shirts, jackets and backpacks.

“I am looking forward to working with Carnival to make their “Weekend of Relaxation and Family Fun” event the best that it can be. I have always admired Carnival’s dedication to their customers and the community,” Romo said.

Tickets for the event go on sale today and can be purchased on Carnival’s website or in person on each day of the event. All proceeds will benefit the Make-A-Wish Foundation, which grants the wishes of children with life-threatening illnesses.

�60

To learn more about Carnival Cruise Lines’ “Weekend of Relaxation and Family Fun” event and Tony Romo’s schedule of activities, call 1-800-CARNIVAL or visit carnival.com.

###

�61

Media Contacts Carnival Cruise Lines will invite the following relevant media contacts to both of its press conferences and to its two-day

“Weekend of Relaxation and Family Fun” event in order to garner positive press attention and reinforce the cruise line as one that is not only philanthropic, but also one that is adept at catering to its target markets and its stakeholders.

Newspapers Veronica Stoddart – USA Today, Travel Editor – vstoddart@usatoday.com

Monica Drake – The New York Times, Travel Editor – modrak@nytimes.com

Scott McCartney – The Wall Street Journal, Travel Editor – scott.mccartney@wsj.com

Joe Yonan – The Washington Post, Food & Travel Editor – yonanj@washpost.com

Ross Werland – Chicago Tribune, Travel Editor – rwerland@tribune.com

Cathy Barber – Dallas Morning News, Travel Editor – cbarber@dallasnews.com

Kristin Finan – Houston Chronicle, Travel & Leisure Editor – kristin.finan@chron.com

Janet Keeler – Tampa Bay Times, Food and Travel Editor – jkeeler@tampabay.com

Jay Ducassi – The Miami Herald, Metro Editor – jducassi@miamiherald.com

Richard Tribou – Orlando Sentinel, Travel and Projects Editor – rtribou@OrlandoSentinel.com

Tracy Brown – Atlanta Journal-Constitution, Travel Editor – tbrown@ajc.com

Mitch Pugh – Charleston Post and Courier, Executive Editor – mpugh@postandcourier.com

Shawn Ryan – Chattanooga Times Free Press, Features Editor – sryan@timesfreepress.com

Michelle Deal-Zimmerman – Baltimore Sun, Travel Content Editor – nmzimmerman@blatsun.com

�62

Magazines Luke Barr – Travel + Leisure, News Director – lukebarr@gmail.com

Melissa Cronin – OK! Magazine, Managing Editor – email unavailable – (212) 545-4800

Joanna Coles – Cosmopolitan, Editor-in-Chief – email through inbox@cosmopolitan.com

David Granger – Esquire, Editor-in-Chief – email unavailable – (212) 649-4020

Chad Millman – ESPN The Magazine, Editor-in-Chief – Chad.X.Millman@espn.com

Michael Steele – US Weekly, Editor-in-Chief – email through letters@usmagazine.com

Television Peter Greenberg – CBS News, Travel Editor – info@petergreenberg.com

Genevieve Shaw Brown – ABC News, Travel and Lifestyle Editor – (212) 456- 7777

Carey Codd – Miami CBS 4 News, Reporter – cdcodd@wfor.cbs.com

Gilma Avalos – NBC Miami, Reporter – email through nbcmiami.com

Terrell Forney – Local 10 Miami, News Reporter – tforney@Local10.com

Brandon Beyers – FOX Miami 7 News, Reporter – email through www.wsnv.com - (305) 795-2777

Portia Bruner – Atlanta FOX 5, News Reporter – email unavailable – (404) 875-5555

Johnny Archer - NBC 5 Dallas-Fort Worth News, News Reporter – (800) 654-KXAS

Melissa Cutler - FOX 4 Dallas News, News Reporter – melissa.cutler@kdfwfox4.com

Ken Baker – E! News, Reporter – (888) E-Online

Sal Paolantonio - ESPN SportsCenter, Reporter – email unavailable

�63

Situation Analysis Sources 1. “Carnival Corporation Profile.” Hoover’s Online. Sep 18, 2014. 2. Palmeri C, Newkirk M. Will Carnival Party On?. Bloomberg Businessweek [serial online]. February 25, 2013;(4318):16-17. Available

from: Business Source Complete, Ipswich, MA. Accessed September 21, 2014. 3.  Tuttle, Brad. "Carnival Cruises Books More Passengers ... and Loses More Money."Time. Time, 27 Mar. 2014. Web. 20 Nov. 2014.

<http://time.com/39011/carnival-cruises-books-more-passengers-and-loses-more-money/>.4. http://www.travelweekly.com/Cruise-Travel/Third-quarter-performance-a-confidence-boost-for-Carnival/ 5. www.cruising.org 6. IBIS WORLD REPORT Bed & Breakfast & Hostel Accommodations in the US October 2014

7. IBIS WORLD REPORT Bed & Breakfast & Hostel Accommodations in the US October 2014

8. IBIS WORLD REPORT Bed & Breakfast & Hostel Accommodations in the US October 2014

9. CLIA 2014 State of the Industry Report 10. CLIA 2014 State of the Industry Report 11. CLIA 2014 State of the Industry Report 12. CLIA 2014 STATE OF THE INDUSTRY REPORT 13. http://cargocollective.com/ROGERBALDACCI/Carnival-Cruise-Lines-Integrated

14.  http://travel.usnews.com/cruises/best-cruise-lines-for-romance/ 15. Simmons Data Research 16. Simmons Data Research 17. “Norwegian Cruise Line Holdings Ltd. - Strategic Analysis Review.” Global Data. September 5, 2014. 18. IBIS WORLD REPORT Bed & Breakfast & Hostel Accommodations in the US October 2014

19. "2012 World Wide Market Share". Cruise Market Watch. 2011-11-20.

20.  http://travel.usnews.com/cruises/best-cruise-lines-for-romance/ 21. Wobler, Tom. International Cruise & Ferry Review. Autumn/Winter2013, p155-155. 1p.

�64

22.  Disney Cruise Line: Staying afloat in a new industry | Thunderbird School of Global Management 23. xx Cruise Industry Continues to Battle Unfavorable Tides. (2014, April 9). Retrieved 24. October 10, 2014, from http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/mid/1508/articleId/1410/ctl/

ReadCustomDefault/Default.aspx 25. Gazdik Irwin, T. (2014, February 13). Carnival Cruise Lines' Image On Upswing. Retrieved October 14, 2014, from http://

www.mediapost.com/publications/article/219487/carnival-cruise-lines-image-on-upswing.html 26. Video: https://www.youtube.com/watch?v=GU29mj3S6es, https://www.youtube.com/watch?v=aaBqeADbynE, https://

www.youtube.com/watch?v=vOdR1oxcKDU, https://www.youtube.com/watch?v=l6_JNmO9MJE. 27. xx Cruise Industry Continues to Battle Unfavorable Tides. (2014, April 9). Retrieved October 10, 2014, from 28. http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/mid/1508/articleId/1410/ctl/ReadCustomDefault/Default.aspx 29. xxxiv https://twitter.com/CarnivalCruise xxxv https://www.facebook.com/Carnival, http://iconosquare.com/carnival, https://

www.facebook.com/Carnival, https://www.facebook.com/DisneyCruiseLine, https://www.facebook.com/royalcaribbean, https://www.facebook.com/Norwegiancruiseline, https://twitter.com/CarnivalCruise, https://twitter.com/DisneyCruise, https://twitter.com/RoyalCaribbean.

30. http://www.journalism.org/2014/03/26/state-of-the-news-media-2014-key-indicators-in-media-and-news/ 31. http://www.journalism.org/2014/03/26/state-of-the-news-media-2014-key-indicators-in-media-and-news/ 32. Simmons Research 33. http://www.travelweekly.com/Cruise-Travel/Cruise-lines-back-on-the-tube-with-new-advertising-efforts/ 34. http://www.travelweekly.com/Cruise-Travel/Cruise-lines-back-on-the-tube-with-new-advertising-efforts/ 35. http://www.travelweekly.com/Cruise-Travel/Cruise-lines-back-on-the-tube-with-new-advertising-efforts/ 36. http://www.brandchannel.com/features_effect.asp?pf_id=501

37.  AdWeek:  http://www.adweek.com/news/advertising-branding/phd-wins-carnival-cruise-lines-media-account-151795 38. Cruise Market Watch: http://www.cruisemarketwatch.com/advertising/ 39.  Video:  https://www.youtube.com/watch?v=f6TvNsY0d30 40.  Video:  http://arn.com/item/carnival-theme-park

�65

41. Travel Weekly: http://www.travelweekly.com/Cruise-Travel/Cruise-lines-back-on-the-tube-with-new-advertising-efforts/ 42.  AdWeek:  http://www.adweek.com/adfreak/carnival-cruise-lines-makes-splash-clever-out-home-ads-140873 43. Roger Baldacci: http://cargocollective.com/ROGERBALDACCI/Carnival-Cruise-Lines-Outdoor 44. Roger Baldacci: http://cargocollective.com/ROGERBALDACCI/Carnival-Cruise-Lines-Integrated

45. Video: https://www.youtube.com/watch?v=GU29mj3S6es

46. Video: https://www.youtube.com/watch?v=aaBqeADbynE

47.  Video:  https://www.youtube.com/watch?v=vOdR1oxcKDU 48. Video: https://www.youtube.com/watch?v=l6_JNmO9MJE

49.  Video:  https://www.youtube.com/watch?v=COzXcXh9hxw 50.  Video:  https://www.youtube.com/watch?v=Kc3o3FkWzM4 51.  Video:  https://www.youtube.com/watch?v=XBN2jdQlXE8 52.  Video:  https://www.youtube.com/watch?v=8ECL9Gek6Zo 53.  Video:  https://www.youtube.com/watch?v=N7dCrtdRtZQ 54. Disney Cruise Line Info: http://www.wdwinfo.com/wdwinfo/cruise-new/cr-overview.htm

55. Andrew Hampp: http://adage.com/article/agency-news/disney-splits-1b-media-review-carat-publicis/149230/ 56. Video: http://www.ispot.tv/ad/75y2/disney-cruise-line-captains-log

57. Video: http://www.ispot.tv/ad/7w5K/disney-cruise-line-special-family-time

58. Harris Polls. (2014, Apr 09). “Cruise Industry Continues to Battle Unfavorable Tides.” Retrieved from 59. http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/mid/1508/articleId/1410/ctl/ReadCustom%20Default/

Default.aspx

60. Dominguez, R. (2014, Sept 24). “Carnival Corp. raises full-year earnings forecast.” Daily News. Retrieved from http://www.nydailynews.com/news/national/carnival-corp-raises-full-year-earnings-forecast-article-1.1950025?cid=bitly

61. Harris Polls.

�66

62. Elliot, C. (2014, Feb 13). “Norovirus outbreaks make both cruise lines and passengers leery.” The Washington Post. Retrieved from http://www.washingtonpost.com/lifestyle/travel/norovirus-outbreaks-make-both-cruise-lines-and-passengers-leery/2014/02/13/cabf3000-9340-11e3-b46a-5a3d0d2130da_story.html

63. Harris Polls. 64. Harris Polls. 65. PR Newswire. (2014, Jul 17). “BrandIndex Ranks Carnival Cruise Lines Number-One Improver Among All U.S. Brands In Its Mid-

Year.” Retrieved from http://www.prnewswire.com/news-releases/brandindex-ranks-carnival-cruise-lines-number-one-improver-among-all-us-brands-in-its-mid-year-buzz-report-267506421.html

66. Carnival Corporation & plc, Sustainability Report Fiscal Year 2012. Retrieved from https://www.pocruises.com/Global/pdf/SustainabilityReportFiscalYear2012.pdf

67. PR Newswire. (2013, Dec 20). “Carnival Corporation Named Clean Tech Award Winner For Best Marine Solutions By The New Economy.” Retrieved from

68. http://www.prnewswire.com/news-releases/carnival-corporation-named-clean-tech-award-winner-for-best-marine-solutions-by-the-new-economy-236719591.html

69. Carnival News. (2014, Sept 16). “Carnival Cruise Lines Renews Its Industry-Leading ‘Great Vacation Guarantee’ Through 2015.” Retrieved from http://carnivalnews.com/2014/09/16/carnival-cruise-lines-renews-its-industry-leading-great-vacation-guarantee-through-2015/

70. Harwell, D. (2014, Sept 24). “A year after the “poop cruise,” Carnival is having one of its best sales years yet.” The Washington Post. Retrieved from http://www.washingtonpost.com/lifestyle/travel/norovirus-outbreaks-make-both-cruise-lines-and-passengers-leery/2014/02/13/cabf3000-9340-11e3-b46a-5a3d0d2130da_story.html

71. Gallup Economy. (2014, Sept 02). “U.S. Consumer Spending Flat in August.” Retrieved from 72. http://www.gallup.com/poll/175577/consumer-spending-flat-august.aspx

73. PR Newswire. (2014, Sept 23). “Carnival Corporation & plc Reports Third Quarter Earnings.” Retrieved from http://www.nasdaq.com/press-release/carnival-corporation--plc-reports-third-quarter-earnings-20140923-00526

74. Mintel. “American Lifestyles 2014: Looking Forward – US – April 2014.” Retrieved from http://www.mintel.com/press-centre/social-and-lifestyle/american-lifestyles-2014

�67

75. Market Wired. (2014, Oct 07). “Luxury Cruise News Reader Survey Highlights Importance of Destination to Cruisers.” Luxury Cruise News. Retrieved from http://www.marketwired.com/press-release/luxury-cruise-news-reader-survey-highlights-importance-of-destination-to-cruisers-1955024.htm

Campaign Strategy Sources 1. http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/ctl/ReadCustom%20Default/mid/1508/ArticleId/1161/

Default.aspx 2. http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/ctl/ReadCustom%20Default/mid/1508/ArticleId/1161/

Default.aspx 3. Simmons Finance 4. Simmons 5. Simmons Psych 6. Simmons 7. http://fbnewsroomus.files.wordpress.com/2014/09/fb_nfl_fandom.jpg 8. http://www.prnewswire.com/news-releases/zagat-releases-results-of-first-cruise-line-survey-69860537.html 9. TI Outreach: Outbound Overview Outbound. (n.d.). Retrieved November 4, 2014, from http://travel.trade.gov/outreachpages/

outbound.general_information.outbound_overview.html 10. MarketingCharts. (2014, Jul 01). “Millennials Spend More Time With Digital Than Traditional Media, But…” Retrieved from

Media Plan Sources 1. CruiseCritic.com - http://www.cruisecritic.com/articles.cfm?ID=1159 2. CruiseCritic.com - http://www.cruisecritic.com/articles.cfm?ID=1159 3. Marketingcharts.com - http://www.marketingcharts.com/online/american-adults-use-of-communication-devices-by-

age-group-48555/ 4. Cruise Critic.com - http://www.cruisecritic.com/articles.cfm?ID=1159

�68

Public Relations Sources 1. Carnival Corporation & plc Sustainability Report Fiscal Year 2012. 2. Carnival News. (2014, Jan 17). “Carnival Cruise Lines Committed To Minimizing Its Environmental Footprint.” Retrieved

from http://carnival-news.com/2014/01/17/carnival-cruise-lines-committed-to-minimizing-its-environmental-footprint-2/ 3. Harris Poll. 4. Consumer Affairs. Carnival Cruise Lines. Retrieved from http://www.consumeraffairs.com/travel/

carnival_cruise_lines.htm

5. Indeed. Carnival Cruise Lines. Retrieved from http://www.indeed.com/cmp/Carnival-Cruise-Lines/reviews

6. PR Newswire. (2014, Sept 23). “Carnival Corporation & plc Reports Third Quarter Earnings.” 7. Carnival Corporation & plc, Sustainability Report Fiscal Year 2012. 8. Carnival Corporation & plc, Sustainability Report Fiscal Year 2012. 9. Travel Pulse. (2013, Jun 24). “Carnival Launches Travel Agent Outreach Program.” Retrieved from http://

www.travelpulse.com/news/cruise/carnival-launches-travel-agent-outreach-program.html 10. Travel Pulse. 11. Carnival News. (2014, Sept 16). “Carnival Cruise Lines Renews Its Industry-Leading ‘Great Vacation Guarantee’ Through

2015.” 12. Hoppe, J. (2014). “Carnival Cruise Lines.” Supply Chain World. Retrieved from http://scw-mag.com/index.php/

sections/manufacturing-retail/245-carnival-cruise-lines

13. Hoppe, J. 14. Hoppe, J. 15. Carnival News. (2014, Jul 15). “Carnival Cruise Lines Fundraising Efforts For St. Jude Children’s Research Hospital

Surpass $5 Million.” Retrieved from http://carnival-news.com/2014/07/15/carnival-cruise-lines-fundraising-efforts-for-st-jude-childrens-research-hospital-surpass-5-million/

�69

16. Carnival Corporation & plc, Community Relations. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-community

17. Carnival News. (2014, Jul 24). “Carnival Cruise Lines and Dallas Cowboys Announce Multi-Year Partnership.” Retrieved from http://carnival-news.com/2014/07/24/carnival-cruise-lines-and-dallas-cowboys-announce-multi-year-partnership/

18. United States Securities and Exchange Commission. Carnival Corporation & plc Form 10-K for the Fiscal Year Ended November 30, 2013. Retrieved from http://www.sec.gov/Archives/edgar/data/815097/000119312514025514/d645418d10k.htm

19. Achieve. “Inspiring The Next Generation Workforce: The 2014 Millennial Impact Report.” Retrieved from http://cdn.trustedpartner.com/docs/library/AchieveMCON2013/MIR_2014.pdf

20. Barkley. “The Millenial Generation Becomes Parents.” Retrieved from http://www.marketwatch.com/story/the-millennial-generation-becomes-parents-2013-10-03

21. Harris Polls. (2014, Jan 16). “As American as Mom, Apple Pie and Foorball?” Retrieved from http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/ctl/ReadCustom%20Default/mid/1508/ArticleId/1365/Default.aspx

22. Timm, Jane. (2014, Mar 22). “Millennials: We care more about the environment.” msnbc. Retrieved from http://www.msnbc.com/morning-joe/millennials-environment-climate-change

�70