j447-Zaban Final Book

Royal Caribbean InternationalStrategic Media Plan 2012

Royal Caribbean International

The Z AgencyContact: Zachary ZabanSenior Media [email protected]


Table of Contents Description of Product 5 Competitive Analysis 8History of Royal Caribbean 7 SWOT and Objectives 10

Summary of Total Spending 12 Opps 19Competitor Media Strategy 16

21

22 - 27

Media Strategy Summary 29 Creative Units 35Vehicle Recommendations 33 SWOT and Objectives 10

37

39-41


Situation Analysis


Description of Product

Basic Product Overview

Royal Caribbean International cruises provide more than just traveling by ship. According to business analysts, cruises are considered to be a form “leisure travel, by ship, or on a large boat that offers a broad array of recreational activities.”1 Royal Caribbean falls into this product category by providing entertainment and leisure both on-board and on-land.

On-Board Leisure >>

A key component of Royal Caribbean’s success is the immense amount of on-board activities for its consumers. These include:

• Outdoor Activities:rockclimbing,waterparks,golfing• Theater Entertainment: musicals, singers, comedians• Children’s Programming• Sport and Spa:workoutrooms,massages,fitness

classes and yoga/tai-chi• Nightlife: casinos, shopping centers, art galleries,

dance clubs, bars and formal restaurants

Off-Board Leisure >>

Consumers have a wide selection of destinations when traveling with Royal Caribbean. They can choose from locations, including:

Alaska, Asia, Australia/New Zealand, Bahamas, Bermuda, Canada & New England, Caribbean, Dubai,Europe&TheMediterranean,Hawaii,PacificNorthwest, Panama Canal,South America and Transatlantic.

Once they depart from the boat, travelers can independently visit sites or pay extra money to participate in a Shore and & Land Excursion, which is a guided tour or activity planned by the cruise company. Consumers can preview the excursions in advanced on the Royal

1 Mintel. (2010, November). Cruises-US: Scope and Themes. Retrieved from http://academic.mintel.com/.

Caribbean website. While the excursions are an additional feetothebasepriceofthecruise,theyprovidebenefitsfor consumers, such as:

• Ensured safety and security on potentially dangerous events, such as parasailing and zip lining

• Preplanning events months prior to a cruise• Discounted rates on events in comparison to booking

individually

Consumers who heavily enjoy on-land experiences can extend their stay with Royal Caribbean’s Cruisetours, which are allocated days where travelers stay in hotels to maximize their experience at a port-of-call2.

Purchases & Product Use

Consumers usually purchase multiple tickets when planning a trip on Royal Caribbean cruise, most often for family members. An emerging trend in the cruise industry is that customers may buy a single ticket and attend a trip individually instead of with family members or friends3.

Purchase Methods >>

Although the Internet plays a large roll in purchase decision, the main method of booking cruise trips is through a travel agent. Research shows that travel agents have a high level of popularity because they provide answersforfirst-timecruiseconsumers.

In 2010, travelers purchased tickets through sources like agents and websites4 (see Figure 1.2 ).

2 Cruisetours – Royal Caribbean International. Retrieved from http://www.royalcaribbean.com/findacruise/cruisetours/home.do

3 MSNBC. “Cruise trends: Higher prices, single studios.” Retrieved from http://www.msnbc.msn.com/id/35108891/ns/travel-cruise_travel/

4 Mintel. (2010, November). Cruises- Booking Method.... Retrieved from http://academic.mintel.com/.

Travel Agent 37%

Online 29%

3rd Party Site 16%

Other 18%

Percent Breakdown of Purchase Method

Figure 1.2 : A graphic representation of how consumers purchased cruise tickets in 2010.

Figure 1.1 : Royal Caribbean ships host entertainment like musicals, guest performers, group trvia games, comedians


Consumers travel on Royal Caribbean cruises throughout the year. However, some destinations are closed during specific seasons due to weather and ship repair. Also, consumers can purchase tickets nationally, but need to arrange travel plans to get to a ship’s initial departure port.

Purchase Patterns >>

The purchase patterns of Royal Caribbean consumers vary on a wide spectrum:

• Many consumers are “first timers,” meaning that they have never traveled on a cruise. Royal Caribbean has a whole section of information on its website dedicated solely for these consumers5.

• Once a Royal Caribbean customer attends a second trip, he or she becomes a member of the Crown and Anchor Society . This loyalty program gives consumers who continually purchase Royal Caribbean trips with perks like room upgrades and gift cards6.

One major factor drives the consideration for purchasing a cruise ticket over other forms of vacation: price. While the majority of cruise attendees make a household income of over $75,000, the negative economic impact of the recent recession has influenced purchase patterns of Royal Caribbean’s tickets (see Appendix A)7.

Product Awareness >>

Historically, consumers have considered Royal Caribbean when selecting a cruise line for travel. Data from business analysts shows that Royal Caribbean was the second highest selected cruise line for travel from a sample, falling solely behind Carnival Cruises, for 2010. This trend has 5 New to Cruising - Royal Caribbean International. Retrieved from http://www.royalcaribbean.com/allaboutcruising/newtocruising/home.do;jsessionid=00004mOmAW0lil2sNjICZ9-4Iei:13hldcill

6 Crown and Anchor Society - Royal Caribbean International. Retrieved from http://www.royalcaribbean.com/cas/home.do;jsessionid=00004mOmAW0lil2sNjICZ9-4Iei:13hldcill?cS=NAVBAR

7 Mintel. (2010, November). Cruises-US: Executive Summary. Retrieved from http://academic.mintel.com/.

been consistent for the last seven years (see Appendix B).


Brief History of the Product

How Long has the Product Been Around >>

Royal Caribbean International began service in 1968 when three different Norwegian shipping companies merged8.

The cruise company departed for its first voyage in 1970 when the Song of Norway traveled from Miami to the Caribbean. Since its birth in the mid 20th century, Royal Caribbean International brought innovation to the cruise industry. Today, the company has 21 ships in service.

Key Moments in Royal Caribbean History >>

• The company was the first liner to integrate flight packages with their cruise trips, making travel both to and from the ship easy for its customers.

• Royal Caribbean was one of the first cruise companies to establish a private port for tourists. Not only do the ports provide travelers with entertainment and education, but Royal Caribbean also donates money to the local governments in which the ports reside.

• In the early 1990s, Royal Caribbean was one of the first major cruise companies to provide extensive trips to un-traditional locations like Scandinavia, Russia and Alaska plus Pacific cruises that embark directly from European ports.

• With the launch of CruiseMatch2000 in 1991, Royal Caribbean was the first cruise line to provide a computer-automated reservation system

• In the early 2000s, the company provided its customers with unique on-board amenities like rock climbing walls and water slides.

8 Our History - Royal Caribbean International. Retrieved from www.royalcaribbean.com/ourCompany/ourHistory.do

Negative Impacts on Brand Image >>

Although Royal Caribbean is as a source of leisure for consumers around the world, the company has faced negative coverage in the media for fatal passenger accidents. Most recently, the company has received harsh criticism for the murder of a musical crew member and of a tourist who died while on land 9.

Some reporters also placed Royal Caribbean in a negative light after the company opted to continue its voyages to its port in Haiti only days after an infamous earthquake destroyed the area of Port-au-Prince10. However, other journalists commended the company on its choice to continue service to Haiti in order to bring tourist business to Haitian shop owners.

Branding >>

Currently, Royal Caribbean has the slogan “Why Not,” which embodies the idea that consumers should not limit themselves from potential opportunities of fun and adventure. All of their promotional materials, including advertisements and online media outlets, are branded with “Why Not.”

This branding image came around the early 2000s. Before this time, the company did not have a branded slogan and instead spoke solely about their on-board and off-board experiences without a defining element. An example is a commercial that revolves solely around rock climbing on the boat.

9 MSNBC. “ Royal Caribbean passenger dies in Cancun hospital.” Retrieved from http://www.msnbc.msn.com/id/41480710/ns/travel-news/.

10 Sydney Morning Herald. “Passengers in the lap of luxury at the gate-way to hell.” Retrieved online from LexusNexis news database.

History of Royal Caribbean

Figure 2 .1 : The Song of Norway was the first Royal Caribbean ship to depart. It’s first voyage was in 1968.

Figure 2 .2 : Originally, Royal Caribbean only provided vacations from Miami to the Caribbean Islands. Pictured above is an old postcard from the early 1970s.


Competitive Category

Within the cruise market, there are three types of cruises: river-boat cruises, middle-end cruises and high-end luxury cruises. Royal Caribbean falls into the second category based off of its offerings both on-board and off-board for its consumers.

Consumers within the middle-end cruise class seek out adventures that turn from exciting experiences into life-long memories. The average household income for consumers within this category is at least $75,000 per year.

Complete List of Competors11

Alzamara Club Cruises, Carnival Cruise Lines, Celebrity Cruises, Costal Cruises, Disney Cruise Line, Holland America Line, Norwegian Cruise Line, and Princess Cruises

Analysis: Carnival Cruise Lines

Strengths >>

• Affordable prices for cruises• Recent expansion into untapped Australian consumer

market; targeting non-U.S. countries• Highestfinancialreturnsofanycruisecompany• Provides the most amount of cruise vacations per

year of any cruise company

Weaknesses >>

• Known by long-time cruise consumers as a “party boat”, meaning that the line lacks a sense of luxury and sophistication12

• Limited off-shore excursions

11 CLIA. “Cruise Lines & Ships. Retrieved from http://www.cruising.org/vacation/cruise-lines-ships12 Cruise Critic. “Carnival at a Glance.” Retrieved from http://www.cruise-critic.com/reviews/cruiseline.cfm?CruiseLineID=28

• Limited international destination offerings to European and Asian Countries

Brand Difference >>

Royal Caribbean provides more activities for customers than Carnival Cruise Lines. The biggest difference, however, is that Carnival is more affordable than Royal Caribbean, which draws in consumers with lower household incomes.

Analysis: Princess Cruises

Strengths >>

• Multiple on-board dining options• Well-established customer rewards program• Established in online cruise communities as a

sophisticated cruise line at an affordable price13

• Numerous off-shore activities and a wide portfolio of cruise destinations

Weaknesses >>

• High ticket costs• The cruise line has stated that no new ships will be

built for at least the next two years• Limited programming for young children and teens

Brand Difference >>

Royal Caribbean and Princess Cruises share a similar level of sophistication. However, Royal Caribbean has more programming for young children, which is an appeal to families. Also, Royal Caribbean has more cruise ships andistheflagshipcruiselineforR.C.Limited,whereasPrincess is a smaller cruise line within the Carnival Corporation.

13 Cruise Critic. “Princess at a Glance.” Retrieved from http://www.cruise-critic.com/reviews/cruiseline.cfm?CruiseLineID=28

Competitive Analysis


Analysis: Norwegian Cruise Line

Strengths >>

• Establishedcustomerbaseofsingleswhoare“readytomingle”;shipsoffersingleoccupancyroomsclusteredaroundasocialgatheringspot14

• Offfer“freestylecruising”-relaxeddiningoptionsforcruisecustomerswhododesirecasualdiningandflexibility

• NewrevenuestreamsfromarecentadditiontothefirmsowningNorwegianCruiseLineshasbroughtinmorethan$50millionworthofenhancementstocurrentships

Weaknesses >>

• Knownforhavingissueswithrefunds• Currentsetofshipswerebuiltduringorpriorto1993,

whichconsumersmayviewasoutdated15

• Limitedsetofmassmediaadvertisementsandpromotions

• Doesnothavealargeconsumeraudienceofethicminorities

Brand Difference >>

NorwegianCruiseLineshasamorerelaxedatmosphereduetoitsdiningoptions,whichdrawscertaincustomerstothebrandinsteadofRoyalCaribbean.Additionally,thebranddoesnothavethesamelevelofon-boardactivitiesasRoyalCaribbean,butdoesmanagetobringnumerousentertainerswithhugefollowings,suchastheBlueManGroup.YoungerfamiliesdonotrideonNorwegianasmuchasRoyalCaribbean.

14 MSNBC. “Cruise trends: Higher prices, single studios.” Retrieved from http://www.msnbc.msn.com/id/35108891/ns/travel-cruise_travel/15 CruiseWeb. “Norwegian.” Retrieved from (http://cruiseweb.com/NCL.HTM)


SWOT Analysis

and ObjectivesStrengths

• Allure of the Sea and Oasis of the Sea are the two largest ships within the cruise industry; established as a brand of innovation

• Known for entertaining on-board activities like rock-climbingandgolfing

• Consumer base tends to skew towards consumers with a higher household income in comparison to the average cruise traveler

• Numerous destination points around the world, including private ports-of-call and established partnerships with hotels for Cruisetours

• Highly established social media campaign to reach consumers, including Flickr account to share photos and a frequently updated blog from the Royal Caribbean CEO

Weaknesses• Smaller stock dividends to share holders in

comparison to other major cruise companies

• Limited to no single occupancy rooms for customers not traveling with family or friends

• Higher average ticket prices in comparison to Carnival Cruises

• Recent negative media attention for fatalities of customers and crew members

• Advertisements and promotions mainly target Caucasian consumers and limit exposure to Asian Americans and Latinos

Opportunities• Increasing customer base through marketing

towards Asian Americans and Latinos, both of whom currently ride on Royal Caribbean cruises more than any other cruise line

• Increasing program towards LGBT consumers, who travel on cruises more than the average U.S. cruise consumer

• Upcoming full production of the broadway musical Chicago is recognized in the U.S. theater community as a high-quality show; may bring in an increasedstreamoffirst-timecruisecustomers

• Establishing brand image of cruise line that cators to families, older adults, and parents with young children.

Threats• Uncertain economic climate may inhibit middle-

class consumers from purchasing cruise tickets

• Expansion of family friendly cruise programming from Norwegian Cruise Lines and Nickelodeon may harm Royal Caribbean’s current reputation as one of the best cruises for families

• As the age gap of 55+ in the U.S. continues to increase, Royal Caribbean’s unique family offerings and physical activities may not become areas of relevance for older customers

• International tensions, like current riots in Egypt, mayimpactconsumerconfidencelevelsandthusdecrease sales as

Objectives

Sales Objective

• Increase sales 3% in 2012.

Marketing Objective

• Increase purchase of cruise line tickets among young married couples who have never been on a cruise by 12% in 2012.

Advertising Objective

• Stimulate the desire to go on a cruise by showcasing the affordability of cruising in a tropical paradise


Competitive Spending


Summary of Total Spending

Total Raw Spending

Looking at the overall raw spending of the four different cruise lines within the product category, it’s evident that Carnival Cruise Lines has the highest media spend at $34,853,000.

• Princess Cruise Lines has the lowest media spend at $12,300,000.

• Royal Caribbean ranks 3rd in the media spend with 16,135,000

$34,853

$25,646

$12,300

$16,135

$-

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Carnival Norwegian Princess Royal Caribbean

Med

ia S

pend

(in

US

Dolla

rs)

Cruise Lines

Total Raw Spending

Carnival 39%

Norwegian 29%

Princess 14%

Royal Caribbean 18%

SOS Overall

SOS Overall

Like the Total Raw Spending Chart, Carnival Cruise Lines dominates the SOS within the brand category with more than a quarter of the media purchases.


Network TV SOS

Cable TV SOS

Spot TV SOS

Network Radio SOS

Spot Radio SOS

Magazines SOS

Nat'l Newsp

SOS

Local Newsp

SOS

Internet SOS

Outdoor SOS

Carnival 0.00% 38.10% 48.89% 0.00% 0.00% 50.99% 10.79% 21.02% 27.38% 23.97%

Norwegian 0.00% 37.58% 0.00% 0.00% 0.00% 29.98% 0.00% 26.96% 18.86% 28.67%

Princess 0.00% 13.74% 51.11% 100.00% 100.00% 0.00% 16.07% 52.02% 21.65% 47.36%

Royal Caribbean 100.00% 10.58% 0.00% 0.00% 0.00% 19.03% 73.14% 0.00% 32.10% 0.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

SOS

in P

erce

nt

SOS For Each Medium

SOS by Medium

Among the 11 different medium categories, different trends occurred among the companies within the brand category.

Specifically,thefollowingcompanieshad SOS dominance in the listed media categories

• Carnival Cruise Lines: Magazines• Norwegian Cruise Lines: None• Princess Cruise Lines: Spot TV,

Network Radio SOS, Spot Radio, Local Newspaper, Outdoor

• Royal Caribbean Cruise Lines: Network TV, National Newspaper, Internet

Looking at the chart to the left, the current media landscape has some unique patterns worth noting:

• Although Carnival Cruise Lines has the highest overall SOS, it only dominates the SOS in the magazine category

• There are only 3 different categories where all four of the cruise lines invest media space

• Princess Cruise lines has the lowest overall SOS, but manages to have thehighestSOSamongfivedifferentmedia categories.


$41,063.00

$28,499.00

$4,981.00 $4,199.88 $3,579.00

$2,146.00 $1,894.00 $1,684.00 $654.00 $234.00 $-

$-

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$25,000.00

$30,000.00

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$45,000.00

Cable TV Magazines Spot TV National Newspaper

Internet Network TV

Outdoor Local Newspaper

Spot Radio Network Radio

US

Dol

lars

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00

)

Total Category Spending by Medium

Total Category Spending by Medium

Looking at the overall Total Category Spending by Medium for the brand category, it’s clear that the four different companies are investing heavily in certain areas of media more than others:

• The companies have placed a high investment in Cable TV and Magazines.

• Although this graph shows that there is a high investment in Cable TV and Magazines, it does not take into considerationthecostefficiencyofthemedium.

• No companies invested their budget into Syndicated Television

• Companies placed more money into Cable TV than into Network TV, which may show that they are targeting specificaudiencesbasedoffofcertaindemographics and psychographics instead of pushing towards a mass reach to general TV viewers.


$10,396.7 $10,395.7

$4,070.4 $4,071.4 $4,426.4

$4,705.4 $4,703.4 $4,591.4

$10,391.7 $10,392.7 $10,393.7 $10,394.7

$0.0

$2,000.0

$4,000.0

$6,000.0

$8,000.0

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$12,000.0

January February March April May June July August September October November December

U.S

. Dol

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Total Category Seasonality

Total Category Seasonality

The total category seasonality shows a mid-year decline in media spending followed by a boost back to roughly the same advertising expenditures as January and February.

• Between February and March, the total media spend decreased by more than 60%, which is a drastic decrease

• The mid-year decline of media spends mayreflectthechangesinweatheramong cruise locations and vacation times like Spring Break and Winter Break.

Additionally, Royal Caribbean and Carnival have distinct media spending patterns while Princess and Norwegian share similar patterns (see next page for graphs).

• Royal Caribbean advertises all year round, but increases its media spend from May - August.

• Carnival advertises all year round, but has the same total media spend amount every month

• Norwegian and Princess do not advertise March - August. Additionally, during the months where the companies do advertise, they have the same total media spend every month.


Competitor Media Strategy

Cable TV $15,645.00

44.89%

Magazines $14,532.00

41.70%

Spot TV $2,435.00

6.99%

Internet $980.00

2.81%

Outdoor $454.00

1.30%

National Newspaper $453.00

1.30% Local Newspaper

$354.00 1.02%

Carnival Cruise Lines Media Mix

In US Dollars (000)

Carnival Cruise Lines

Looking at the media mix pictured to the right, it’s clear that Carnival Cruise Lines places a heavy emphasis on Cable TV and Magazines for their media mix.

• Over half of Carnival’s media budget is allocated to these two media categories

• As previously stated, Carnival is the SOS leader for these two different media categories among all cruise lines within the brand category

• The company places little to no emphasis on newspapers and outdoor advertising

• Only roughly 2% of Carnival’s media budget was allocated to Internet. While this is evident in the chart, it’s important toreiteratethatmediaefficiencyforInternetadvertisingisdifferent from large, mass-reach mediums like national or cable television

$0.0

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January February March April May June July August September October November December

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ount

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Carnival Seasonality


Cable TV $15,431.00

60.17%

Magazines $8,543.00

33.31%

Internet $675.00

2.63%

Outdoor $543.00

2.12%

Local Newspaper $454.00

1.77%

Norwegian Cruise Lines Media Mix

In US Dollars (000)

Norwegian Cruise Lines

NorwegianCruiseLinesonlyplacesadvertisementsinfivedifferent media categories

• Like Carnival Cruise Lines, Norwegian allocates most of its budget to Cable TV and Magazines.

• The company does not invest in National and Syndicated TV or any form of Radio.

• While the company advertises in Local Newspapers, it does not advertise in national Newspapers like The New York Times or Wall Street Journal.

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Norwegian Cruise Lines Seasonality

Norwegian


Cable TV $5,643.00

45.88%

Spot TV $2,546.00

20.70%

Internet $775.00

6.30%

Outdoor $897.00

7.29%

National Newspaper $675.00

5.49%

Local Newspaper $876.00

7.12%

Network Radio $234.00

1.90%

Spot Radio $654.00

5.32%

Princess Cruise Lines Media Mix

In US Dollars (000)

Princess Cruise Lines

Although Princess Cruise Lines has the smallest media budget, it allocates its media spends across the most amount of mediums.

• The medium that receives the most amount of the company’s budget is Cable TV.

• Princess places a high emphasis on Spot TV• The company does not advertise on National TV, Syndicated TV or

Magazines.

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Princess Cruise Lines Seasonality

Princess


Opportunities Summary of Current Media Landscape

As stated before, Royal Caribbean faces strong media competition from its peers within the brand category. Royal Caribbean does not have the highest budget among the four different brands nor does it lead the highest amount of SOS by medium.

To strengthen its media presence and achieve its marketing objective, Royal Caribbean needs to analyze its competition’s media strategies to figure out where it should place its advertisements.

By understanding the needs of its target consumer and finding its place within the brand category’s media mix, Royal Caribbean will attain its marketing goal.

Opportunities in Mediums

Television

Royal Caribbean has the smallest SOS for Cable TV among its competitors. The company could attain a higher SOS and presence if it removed some money from its spend in National TV and placed that money into Cable TV. This would not hurt Royal Caribbean’s SOS for National TV because it is the only company to use National TV.

Additionally, Royal Caribbean could reallocate some of its funds from National TV towards Spot TV.

• This would be a good option because there are only 2 other brands that compete in this media category, which would make it easy for Royal Caribbean to create a high SOS.

• Royal Caribbean has an opportunity to create a strong brand presence if it places ads on Spot TV during the Months of March - August, when Spot TV SOS leader Princess does not advertise.

Print

Both Carnival and Norwegian place a high amount of advertisements in magazines. Since these companies both have higher budgets than Royal Caribbean, it would be a good decision to not try and place more ads within the magazine space because the company will thin out its budget and may lose SOS prominence in other media categories.

Royal Caribbean should enter the Local Newspaper category to establish its brand presence. They could do so by placing ads when both Princess and Norwegian do not place any advertisements

Radio

There is room to enter the radio space for Royal Caribbean because Princess only exists in this media category.

Outdoor

Royal Caribbean has a chance to gain prominence in the Outdoor media category. Right now, other companies do not place a high emphasis on this area. By entering this market, Royal Caribbean could gain a high SOS and increase impressions and brand awareness.


Media Objectives


Target

Royal Caribbean will target married females and males between the ages of 18-34 who have never traveled on a cruise liner.

• This demographic and psychographic mix will help Royal Caribbean achieve its Advertising Objective

Geography

Royal Caribbean will conduct a national campaign with a local-heavy up in top-performing DMAs located on the west coast.

• Spot locations include Spokane, WA; Fresno-Visalia, CA; Salt Lake City, UT; Portland, OR; San Diego, CA; Seattle-Tacoma, WA; and Los Angeles, CA.

• Combined together, the Spot Markets account for 10.17% of total U.S. Households

• Data from Simmons choices suggests that Royal Caribbean’s target is most likely a resident in the west coast.

• National and spot advertising will ensure that Royal Caribbean will reach out to its target market while having an increased emphasis on frequency in spot market areas.

Seasonality:

To maintain a strong message during key purchase seasons, Royal Caribbean will have pulsing strategy with increased media saturation during the beginning and ending months of the year.

• The pulsing strategy will provide Royal Caribbean with constant media presence, but strong brand presence during purchase periods to combat competitors on a limited media budget.

• ThefirstpulsewilloccurfromJanuarythroughMarchand the second will occur from August through December.

• Withineachpulse,thefirsttwomonthswillhaveslightly lower GRP allocations. This will allow Royal Caribbean to exhaust a diverse set of mediums during pulses without exceeding its budget.

Scheduling/Weighting

Royal Caribbean will place TV ads throughout the day, early evening and primetime dayparts during pulse periods as well as early morning radio during pulses and daytime radio during other periods.

• During non-pulse periods, Royal Caribbean will not buy daytime network and spot network to consolidate spends without losing prominence in frequency.

• More placements will be purchased in each medium category during the pulsing period to increase frequency.

• $3mm will be allocated to mobile search advertisements that will compliment campaign pulses.

Plan Performance

To properly inform target consumers, Royal Caribbean will establish a goal of at least 1500 GRPS for National Media, 2500 GRPS for National + Spot Media, National + Spot Frequency of 3+ during media pulses, and at least 60% Reach during the media campaign.

• Emphasis will be placed on Frequency over Reach because Royal Caribbean vacations are not a new product, but rather a high involvement product with a highlevelofnoisefromcompetingfirms.

• The established level of National + Spot Media GRPS willprovideRoyalCaribbeanwithacost-efficientsolution to persuade target consumers through adiversifiedmediamixlikecabletelevisionandsponsored websites.

Royal Caribbean International Page 21


Target Profiles


Target Profile Demographics

Ethnicity >>

Royal Caribbean’s target consumer has a unique set of demographic attributes. In terms of ethnicity, the target is not necessarily a Caucasian consumer but instead may come from Hispanic or Asian decent.

Both vertical percentages in the first two row are quite high, which emphasizes that many of the respondents within the target column indicated that they are of Hispanic/Latino/Spanish decent. Although smaller than Hispanic occurrence, the response of being of Asian Race had a high index The last row reinforces the idea that many of the consumers are not from a Caucasian decent.

Education and Employment >>

The target is likely to have a wide set of academic experiences under his or her belt. Looking at the data, the target has most likely completed four years of college and graduated.

Additionally, over 30% of the respondents within the column stated that they had either graduated college or achieved higher education like a graduate degree.

In terms of employment, Royal Caribbean’s target consumer may hold a job within a wide spectrum of fields, ranging from blue collar jobs to white collar jobs.

Two trends to note are the similarity of vertical percentages across responses, showing that the column did not have responses fall into one category, and also that some consumers work for Fortune 500 companies.

Family Composition >>

Royal Caribbean’s target has a household of young children in large numbers. Looking at the data, the target most likely has 1-3 children who are under the age of 10. The low index in the response “I have two 12-17 year old children” reinforces that the households are likely to have very young children who are either in pre-school or beginning their elementary education.

Additionally, it’s important to note that the women in these families are likely to have kids within the next year, as noted by the extremely high index.

Ethnicity

Education and Employment

Family Composition


Geography >>

The target likely does not live on the east coast, but rather in locations on the west coast. Using both questions about the U.S. census region and Nielson DMAs, one can infer that Royal Caribbean’s target has a home within the southern area of the west coast.

Psychographics

Lifestyle: Demographics >>

The most prominent life events for Royal Caribbean’s target are changes in income and assets. With either buying their first home, purchasing a new home or refinancing their current home, the target’s family is making changes as to where they live.

Additionally, the consumer is likely moving up in his or her job, and will purchase a used car.

Most prominent on the table is lifestyle change of the oldest, or first, child entering elementary education within the upcoming year because of the extremely high index.

The Simmons Choices data provided some insight about the political views of the target. While the data infers that the consumer is liberal, the two responses do not talk about moderate political views, which the consumer may potentially fall into.

Geography

Lifestyle:Demographics


Lifestyle: Statements >>

The target consumers are motivated in life and have a high sense of self-confidence. Over 40 percent of the target column takes risks often and also pushes themselves to have a high-position within their company.

An interesting trend to note is that the target appears to not have high levels of depression and, instead, feels that he/she has the power to make change within his/her life, as noted by the last statement in the table with a low index of 76.

Self-image is important to the consumer. The data shows that Royal Caribbean’s target sees himself/herself as a tense, Type-A individual with concerns about his/her image of financial success in the eyes of others. However, over 50 percent of the target column expressed interest in traveling abroad, which will provide leverage in selling Royal Caribbean’s services.

Behaviors

Entertainment/Leisure >>

The target consumer purchases items for children within the year. Over 70 percent of the target column said that they “purchase games/toys”, which is close to ¾ of the target. This shows that the consumer most likely shops with a child in mind.

Many of the other responses about purchase patterns did not have indexes over 115 or below 85, meaning that the highest concentration and likelihood of consumer shopping lied within purchases of children’s items.

Recreationally, the target consumer enjoys working out often. The data shows that the more of the target consumers enjoy running and cardio fitness activities than team sports like soccer and outdoor activities. However, in comparison to the average U.S. consumer, Royal Caribbean’s target is more likely to participate in soccer than cardio or running. This may play a key roll in out-of-home media placements.

Lifestyle: Statements

Behaviors: Entertainment and Leisure


Media Use

Cable Television >>

Although the target consumer watches cable TV, he/she only views certain stations. Looking at the type of programming from stations with high indexes and vertical percentages, it’s clear that the target consumer enjoys watching stations with programming primarily for children- such as the Disney Channel and Nickelodeon. Also, the target likes stations that focus on entertainment news like E! and VH1.

The trend of watching children’s programming stations is supported by the low indexes of other stations with programs solely for mature audiences. One point to note is that both the National Geographic Channel and the Travel Channel had very low indexes. This is important because Royal Caribbean’s targets most likely do not watch televisions shows about travel even though Royal Caribbean is a company that provides travel services.

Broadcast Television >>

Although the target primarily watches programming for children on cable television, his/her viewing patterns are different on broadcast television in terms of content. Of the shows watched on broadcast television, close to all of the programs were comedies.

Also, the target does not view programs that contain a high amount of violence or criminal activities. This includes all of the CSI dramas and Law & Order dramas, which are flagship programs on CBS and NBC, respectively.

The information about television viewing by dayparts is complicated because all of the time segments fell under an index of 85, meaning that Royal Caribbean’s target consumer much less likely to watch TV than the average American.

However, when looking at the vertical percentages, the data presents some patterns about television viewing

of the target consumers who do watch television. The highest percentage was weeknight viewing between 8pm and 11pm, while the lowest was at 2am and 5am. While there were consumers constantly watching content, most consumers watched during the early morning or later in the night.

Cable Television

Broadcast Television

TV Dayparts


Print: Magazines and Newspapers >>

The target consumer likes to read magazines to find savings, read about popular culture and also learn parenting tips. This is evident in the magazine selections from the target, each of which have high indexes and moderately high vertical percentages.

For both Smartsource, Parade and People Magazine, the consumer fell within three different groups of reading, stemming from reading 1 of the past 4 issues to reading 3 of the past 4 issues, which shows loyalty to these print publications.

The magazine with the highest loyalty, however, was American Baby – a data point that fits with household composition of Royal Caribbean’s target.

The consumer appears to not read national newspapers, like the Wall Street Journal or New York Times, on a frequent basis.

Radio >>

Like television, the data for radio dayparts only had data with indexes well below 85, meaning that the target is less likely to listen to radio than the average American. However, the vertical percentages show that the target tends listen in the morning and in the late afternoon.

Web >>

The crosstabs for Simmons choices were too low to show any quantifiable trends regarding web usage of Royal Caribbean’s target. However, Quantcast.com provided information Internet browsing information regarding the index of 18-34 males and females.

Web activity of Royal Caribbean’s target reflects the similar interests that he/she has in print publications. Like reading gossip/fashion magazines, the target looks at sites like perezhilton.com and tmz.com that have paralleled content. Also, the consumer uses sites - such as aol.com, flickr.com and photobucket.com - that help them organize their lives and digital docuemtns like photos/music. Finally, the target likely visits parenting websites like babycenter.com and cafemom.com.

Internet

Print: Magazinesand Newspapers

Radio


Media Strategies


Cable Television (National)

Looking at the current Cable TV SOS, it’s clear that Royal Caribbean needs to increase its presence to increase its SOS, which is currently the lowest of all four cruise lines.

Daytime >> $410mm

Selected as a secondary medium daypart to other TV dayparts.

• TargetprofiledatashowsthatRoyalCaribbean’starget consumer may watch daytime TV, but it’s more likely that they will watch cable TV at other times.

• Purchasing daytime cable space will provide an additional level of frequency during pulses, but is not a necessary outlet for the whole year due to the size of Royal Caribbean’s budget relative to the competing companies.

Fringe >> $1314mm

Royal Caribbean will maintain a presence in fringe cable throughoutthe2012yearduetoitscostefficiency.

• Choices data shows that the target watches television at this time.

• Cheaper than primetime cable, which allows Royal Caribbean to increase its GRPS.

• On a qualitative level, the target may be more prone to watch TV with their young children at this time, so promoting at this time would help Royal Caribbean activate a connection with their target.

Prime >> $3766mm

A large portion of Royal Caribbean’s media budget will be placed into primetime cable beause the advertisements duetothedaypart’sabilitytonarrowlytargetspecificconsumer types.

• Since primetime cable television shows tend to

be niche, Royal Caribbean will have an easier time reaching their targets as opposed to placing ads on network television stations with mass reach.

Radio (National)

Royal Caribbean can use Radio as a method to connect with consumers during driving or while they are at home with children - two different periods that advertisers tend to not tap into. Also, Royal Caribbean has an opportunity to take a high ownership of this medium because only one competitor advertises in this space.

Morning Drive >> $544mm

This daypart will be used during the pulse periods as it is a premium method to reach consumers as they drive to work in the morning.

• Not using during non-pulse periods in order to save money.

• Will compliment other pushes during pulse periods• Choices data shows that the target consumer likely

listens to radio during this daypart throughout the week.

Daytime >> $236mm

During the non-pulse periods, daytime radio will be used to reach consumers at a lower cost than morning drive and other mediums. Also, it’s a viable daypart time for the target because, according to the Choices run, the target still listens to radio at this time.

Magazines

Men’s Magazines >> $2780mm

Men’s magazines will be a strong option for reaching the male portion of Royal Carribean’s target base with repeated impressions, which may increase the frequency

Media Strategy

Summary


of the creative message for male consumers.

• Sinceprintisnotcost-efficientrelativetoothermediums, Royal Caribbean will only promote through this outlet during pulses.

• Accordingtotargetprofiledata,theconsumerlikestoworkoutandparticipateinactivitieslikesoccer/running. Content in Men’s magazines often covers sports and other physical activities.

Women’s Magazines >> $2322mm

Choices data shows that many magazines that the target reads are either gossip or fashion publications. Considering that these are the most popular, it’s a good idea to promote Royal Caribbean within them.

General Interest Magazines >> $975mm

Royal Caribbean consumers also enjoy reading general interestmagazines,accordingtothetargetedprofiledata.

• Amorecost-effiecentprintmediumthatcanbeusedwhen Royal Caribbean is not in their pulse period.

• A good method to maintain frequency baseline value when Royal Caribbean does not want to spend a lotofmoneybecauseconsumersarenotmakingpurchase decisions.

Internet

Search >> $3784mm

Searchenginemarketing(SEM)willbeusedtodrivetargeted consumers through the purchase funnel.

• Important for drawing in consumers who are beginning their search for a cruiseline vacation and don’t have an established brand preference.

• Highlytargetableandcost-efficient• Royal Caribbean can use the geotargeting aspect of

SEMtoreachconsumerswithinwest-coastareas.

Targeted Sites >> $3878mm

Website advertisements would be a good option to increase frequency when consumers watch impact TV shows,suchasawardshowsorseasonfinales,inadditionto placements throughout the day.

• DatafromChoicesshowsthatconsumersarelikelytovisit websites in comparison to the average American consumer.

• Targeted sites may be used to integrate the creative message of Royal Caribbean across two different mediums; that is, consumers who watch a TV show may simultaneously surf the web. By placing the same message on two different screens, the level of frequencywilllikelybehigh.

Sponsorship >> $3784mm

SponsoredpageswillhelpRoyalCaribbeanbreakfreefrom the clutter of other cruise line companies.

• Used during pulse periods to emphasize the brand image of Royal Caribbean and connect it to the brand image of the website

• Consumers may be more inclined to trust Royal Caribbean’s advertising messages when the website partners wtih the brand for a sponsored page.


Spot Television

Royal Caribbean can use spot television to advertise during network programming without paying a premium to reach national audience. This is a cost-efficent solution that allows Royal Caribbean to advertise during quality programming without “breaking the bank.”

Daytime >> $501mm

Unlike daytime cable television, daytime spot television will be used throughout the campaign period as a cost efficient to reach stay-at-home parents.

Prime >> $876mm

Royal Caribbean can advertise to their target during the target’s favorite TV shows without spending a large amount for national network CPMs.

• Data shows that many target consumers watch network telelvision at this time, which makes it imperative for Royal Caribbean to have spots during this daypart.

Cable >> $628mm

Using cable spot television will provide Royal Caribbean with reinforcement in cable-based programming, which will help them achieve their frequency goals.

Newspapers >> $1199.1mm

Advertising in national newspapers will allow Royal Caribbean to reach consumers on a national basis.

• This is better method of creating national reach in comparison to network television because it is much cheaper, which is a large factor with Royal Caribbean’s small budget.

• Currently, Royal Caribbean is the SOS in this category and should maintain its position within it.

• Newspapers may provide additional reach from reported circulation numbers because people may read an issue in a doctor’s office/salon. This will give Royal Caribbean a potentially reach in comparison to other mediums.

Mobile Search >> $3000

Mobile Search will be used throughout the year to compliment activity in other mediums.

• Royal Caribbean can geotarget consumers in the western portion of the country.

• Mobile is a growing field of interactive media because consumers are using smartphones often.


Internet-Trgtd Sites $3,878.60

13%

Internet-Keyword/

Search $3,784.00

13%

Internet-Sponsorship $3,784.00

13%

Net Cable-Prime $3,766.20

13%

Magazines-Mens $2,780.50

9% Magazines-Womens $2,322.10

8%

Net Cable-E Fringe $1,314.20

4% Newspapers (40% HH Cvg)

$1,199.10 4%

Magazines-General Interest $975.20

3%

Spot TV-Prime $876.70

3% Spot Cable $628.20

2%

Net Radio-Morning Drive $545.60

2%

Spot TV-Daytime $501.30

2%

Net Cable-Daytime $409.30

1%

Net Radio-Daytime $236.80

1%

Mobile Search $3,000.00

10% Other $6,197.90

21%

Media Mix, $(000)

Year at a Glance


TV

Network TV >>

• HowIMetYourMother(Index:135)• TheOffice(Index:163)• ModernFamily**(18-49Rating:3.9)• Glee**(18-49Rating:3.7)• BigBangTheory**(18-49Rating:3.2)

Cable TV >>

TBS>>Vertical%of39

• TheOfficereruns*• MeettheBrowns*• MyNameisEarlreruns*

DisneyChannel>>Vertical%of93

• HannahMontana• SuiteLifeofZack&Cody• ShakeItUp

E!>>Vertical%of44

• KeepingUpWIththeKardashians• StylePolice• E!News

BravoTV*

• RealHousewivesofNYC• TopChef• FlippingOut

Radio

National >>

PurchasethorughanationalmediaconglomeratelikeClearChannelCommunications,whichcoversawidescopeofgenresacrossthecountry.

• MorningTalkShows• ModernRock• Top40Stations

Magazines

Men’s Magazines >>

Basedoffofpsychographicpreferenceinactivelifestyles(seeTargetProfilesection)

• GQ• Men’sHealth• FitnessMagazine

Women’s Magazines >>

• PeopleMagazine(Index:153)• Glamour(Index:210)• Cosmopolitan(Index:252)• SelfMagazine• MarieClaire

General Interest Magazines >>

• NationalGeographic(Index:190)• ParadeMagazine(Index:132)• Smartsource(Index:129)• TimeMagazine*• ReadersDigest*

VehicleRecommendations

Nielsen Ratings: http://tvbythenumbers.zap2it.com/category/weekly-tv-ratings-rankings/


Internet

Websites >>

• aol.com(Index:124)• perezhilton.com(Index:173)• cafemom.com(Index:165)• flickr.com(Index:128)• mint.com*• linkedin.com*• bravotv.com*• nytimes.com*• people.com*• espn.com*

Newspapers

• USAToday*(basedonthefactthattargetprofiledatashowsconsumersdonotreadNYTimesorWallStreetJournal;USATodayisless“hardnews”andmorelifestyle”

• ChicagoTribune*• LATimes*

Mobile Search

Apps >>

• Shazam*(100MMmobileusers)• Pandora*(3MMmobileusersaddedeachmonth)• WordsWithFriends*• AngryBirds*

App Data Statistics: “10 Mobile Trends” from Google Agency Land; retrieved from https://gm1.geolearning.com/geonext/adwordspartner-center/viewonlineresources.geo?reverseSortBy=Modified


TV

:15 second spots on a GRPS cost basis

Radio

:30 second spots on a GRPS cost basis

Print

Magazines: HPG 4c

Newspapers: HPG B&W

Online

Keyword/Search: Listing

Targeted Sites: Banner

Sponsorship: Banner

Creative Units


Media Plan Flowchart


Appendices


0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Yearly Revenue, Expenses and Net Income, in US$ Millions

Net Income

Operating Expense

Revenue

Appendix A

Revenue

Net Income


Appendix B

0

5

10

15

20

25

30

35

40

45

May 2003-April 2004 May 2005-June 2006 April 2007-June 2008 April 2009-June 2010

Perc

ent

of S

urve

yed

Con

sum

ers

Percentage of Respondents Who Reported Taking a Cruise in the Last 3 Years, by Cruise Line

Carnival

Royal Caribbean

Norwegian

Princess Cruises

Celebrity

Holland America

Disney

Cunard Cruises

Radisson Seven Seas

Other


Peer Review Feedback

My two different peer review groups provided great feedback on changes that I needed to make in my media plan.

Peer Review Group 1 >>

When meeting with the two other students who also had Royal Caribbean, I found that my case book was very similar to theirs in terms of content and target profile segmentation.

However, I had a different approach in targeting Hispanics on the West Coast. Both students did not have this in their media plan. When I showed them this approach to the data, they commended me on it.

However, I decided to change my seasonality of the plan from my original media strategy. Both Sean and Mariah targeted consumers during Q4 and early Q1 because these are the two highest peak times for sales in the cruiseline tour industry. Originally, I thought that Royal Caribbean should not advertise during these periods in order to break free from clutter. On a second analysis, however, I decided to advertise during these times because consumers are likely to make their final purchase decisions. If Royal Caribbean is not present during these times, then they might not be a “top of mind” cruiseline company that the consumer thinks about when he/she is ready to purchase a vacation.

Peer Review Group 2 >>

When I met with the other peer feedback group, I did not have mobile search included in my media plan because I wanted to stick with traditional media. Talking with my peers and seeing how they approached their media buys, I realized that adding mobile search would be a way to drive traffic to the Royal Caribbean site on a low cost.

The cost was an important factor because my media buy was $30mm, which is smaller than most media buys in the class.

So, I decided to reallocate money within my budget to account for the $3mm spend on mobile search.

Appendix C

j447-Zaban Final Book

Documents

Transcript of j447-Zaban Final Book