STRATEGIC MARKETING PLAN

Patricia ArenasFai Charoonsri

Shirley HoDuygu Hostan

Katharina RulandYu Tippayasanti

MKT 343Summer 2010

A G E N D A

Shirley

Katharina

Trish

Yuii

Fai

Duygu

Trish and Katharina

Shirley

STRATEGIC MARKETING PLAN

MISSION & BACKGROUND

Royal Caribbean Mission Statement

We always provide service with a friendly greeting and a smile.

We anticipate the needs of our customers.

We make all efforts to exceed our customers' expectations.

We take ownership of any problem that is brought to our attention.

We engage in conduct that enhances our corporate reputation and employee morale.

We are committed to act in the highest ethical manner and respect the rights and dignity of others.

We are loyal to Royal Caribbean and Celebrity and strive for continuous improvement in everything we do.

(Royal Caribbean, 2010)

MISSION & BACKGROUND

Vision and Values

Our vision is to empower and enable our Employees To deliver the best vacation

experience for our Guest, thereby generating superior returns for our

Shareholders and enhancing the well-being of our Communities.

Sanya

Qingdao

Shenzhen

Zhanjiang

Dalian

Shanghai

Tianjin

Fuzhou

Xiamen

PROPOSED PROJECT

CHINESE COASTAL CRUISELINE

S I T U AT I O N A L A N A LY S I S

CHINA’S TOURISM INDUSTRY

2007 2008 20090

20

40

60

80

100

Tourism ReceiptsGovernment InvestmentForeign In-vestment

$ (B

illio

n)

•Ranked 4th among the top ten destinations in the world•53 million visitors in 2008•Accelerated infrastructure development•Government support and foreign investment

13% growth

Net Worth (end of 2010)

$205 billion$5.4B in tourism

CHINA’S TOURISM INDUSTRY

2006 2007 20080

10,000

20,000

30,000

40,000

50,000

60,000China's International Tourist Arrivals

Intn'l Tourist Arrivals

Intn'l Tourism Receipts

GLOBAL CRUISE INDUSTRY

FIRM ANALYSIS

Strengths Second largest cruise

company in the world High global brand

awareness Innovative ship design Strong relationship with

distribution channel Desirable berthing places Expanding fleet capacity

Weaknesses Rising expenses because of

increasing amenities, cost of fuel, food, etc.

Increased liability Lack of revenue and fleet

expansion lower ROI

FIRM ANALYSIS

Opportunities Expanding cruise market

in China Increasing passenger

capacity Renovation of existing

ships Government support Infrastructure

development

Threats Fierce competitive

landscape Economic situation

negatively impacts consumer’s discretionary income

Increasing fuel prices Travel restrictions for

Chinese residents Price competition against

local direct competitors

COMPETITIVE ANALYSIS

47%

22%

9%

22%

Market Share (%)

Carnival Corporation

Royal Caribbean Cruises, Ltd.

Star Cruises Group

Others

Indirect Competitors•International hotels • Ferries

•Airlines

Direct Competitors•International cruise lines•River cruises•Highly competitive

environment•High capital requirement•Infrastructure

development = more competition

P R O J E C T C O N C E P T

CURRENT PRODUCT OFFERING

Asia• 3 Ports of Departure• 19 Ports of Call• 2-17 days excursions• Areas of interest:

• Hong Kong• Singapore• Phuket

• Extended on land vacation options

Thailand

China

Japan

Taiwan

Vietnam

South Korea

Malaysia

Pacific Ocean

PROJECT CONCEPT

Coastline Cruise• 3 Ports of Departure• 8 Ports of Call• 3 Itineraries• 3-7 days excursions• Legend of the Seas®

Sanya

Qingdao

Shenzhen

Zhanjiang

Dalian

Shanghai

Tianjin

Fuzhou

Xiamen

PROJECT CONCEPT

Legend of the seas• Capacity: 2,076• Amenities

• Casino Royale℠• Themed bars and lounge• Day Spa and Fitness Center• Open atrium Centrum℠• Adventure Ocean® youth

facilities• Miniature golf• Indoor/outdoor pool• Conference facilities• Wedding facilities

ITINERARIES

Getaway cruise• Port of Departure:

Shanghai• Ports of Call:

• Fuzhou• Xiamen

• Land Excursions:• Hong Kong• Shopping• Beaches

• April-August

Shanghai

Fuzhou

Xiamen

ITINERARIES

Southern coast cruise

• Port of Departure: Zhanjiang

• Ports of Call:• Senya• Shenzhen

• Land Excursions:• Beaches• Casinos

• March - NovemberSanya

Shenzhen

Zhanjiang

ITINERARIES

Ultimate china cruise

• Port of Departure: Tianjin

• Ports of Call:• Dalian• Qingdao• Shanghai

• Land Excursions:• Cultural Exploration• River Cruise

• April - October

Qingdao

Dalian

Shanghai

Tianjin

M a r k e t i n g S t r a t e g y

TARGET MARKETS

25-44 45-640

1020304050 46.4

35.835.440.9

Customer Profile

Foreign

Domestic

Age

Perc

enta

ge (%

)

• Age 30-70 years old• International travelers• Corporations • Chinese middle &

upper class• 25-75 years old• Preference for local

vacationing• High urban household

income (RMB 13,786/p)

• High disposable income in coastal areas (RMB 23,623 in Shanghai)

20%27%

33%

20%

Market DistributionInternational

Corporations

Middle Class

Upper Class

MARKETING DIRECTION

SCOPE

GOAL

OBJECTIVE

BRANDING/POSITIONING

CORE MARKETING STRATEGY

The Nation of Why Not℠

• Advertising• Sales Promotion• Public Relations/

Media Mention• Sponsorship• E-Communications• E-Newsletter

• Brochures• Online ads• Videos• Pictures

Creating Awareness

Establishing Preference

Gaining Market Share

M A R K E T A C T I O N P L A N

PRODUCT & PRICE SPECIFICATIONS

Stateroom /Packages

Interior Outside Balcony Deluxe Suites

Getaway Cruise

$220 $350 $420 $500

Southern Coast Cruise

Tour

$510 $600 $720 $800

Ultimate China Cruise

$820 $900 $1020 $1200

CRUISE PACKAGES

DISTRIBUTION CHANNEL

M A R K E T I N G C O M M U N I C AT I O N

MARKETING COMMUNICATIONS

MARKETING COMMUNICATIONS

L O G I S T I C S & C O N T I N G E N C Y P L A N

FINANCIALS

20102011

2012-5

0

5

10

15

20

CostRevenueGrowth

CONTINGENCY PLANSLess than 5% market share by 2012

Operational loss in 2012Chinese markets reject products

- Great opportunity for RCI to expand in China thanks to favorable market conditions

-Become the market leader in offering Chinese coastal cruises

-Enables RCI to capture the developing Chinese market and strengthen its presence in Asia

CONCLUSION