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Cruise Line Paper

886 words - 4 pages

The purpose of this research paper is to examine the marketing segmentation and positioning approaches of the cruise line industry. The paper focuses on the four different types of cruises and their characteristics and the positioning approaches cruise lines use to attract their customers.
Marketing Segmentation
Market segmentation is the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment (Dowling, 2006). In pursuing a market segmentation strategy, brands most ...view middle of the document...

All cruise lines provide a level of luxury, but a true luxury cruise is defined by the highest levels of quality and personalized service. Luxury cruises are expensive compared to the rest of the industry, luxury lines deliver great value by offering more inclusive pricing than other cruise lines and opportunities to travel to exotic destinations (Walle). Specialty cruise lines focus on a destination niche or a special style of cruising including expedition-style cruises, sailing ships and the growing number of river cruises (Hernandez, 2012). The specialty lines all offer a unique experience that guests find educational and adventurous, and may take them to some of the world’s most remote and unspoiled places. Examples of luxury and specialty cruise lines are Regent and Seabourn.
General Characteristics of Luxury Cruise Lines
* Small ships
* Passenger capacity 300-800 people
* Huge cabins or all suites
* Gourmet cuisine
* Not-family friendly
* Spa-oriented
* 10+ night itineraries
* 5-6 star service
* Price Point: $$$$$
* Keyword: Exclusivity
General Characteristics of Specialty Cruise Lines
* Very small ships
* Passenger capacity 100-300 people
* Mixed cabin accommodations
* Mixed dining options
* Not suitable for families
* Few fitness options
* 3-20 night itineraries
* 3-5 star service
* Price point: $$$$-$$$$$
* Keyword: Adventure

Once a business has defined the market segments within its industry or product line, it can forecast the size and profit potential of each segment and which segments it can serve best, based on its competitive advantages. A cruise line, for example, may determine use demographics to divide the market into several segments: retirees, childless couples, families, singles, etc. After they figure out the demographics the cruise...

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