Royal Caribbean International

Strategic Media Plan 2012

The Z Agency
Contact: Zachary Zaban
Senior Media Planner
z.zaban@z-agency.com

Royal Caribbean International Page

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

Summary of Total Spending 12 Opps 19

Competitor Media Strategy 16

21

22 - 27

Media Strategy Summary 29 Creative Units 35

Vehicle Recommendations 33 SWOT and Objectives 10

37

39-41

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 Situation Analysis

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 Description of Basic Product Overview Caribbean website. While the excursions are an additional
fee to the base price of the cruise, they provide benefits
for consumers, such as:
Royal Caribbean International cruises provide more than
Product just traveling by ship. According to business analysts,
cruises are considered to be a form “leisure travel, by ship,
• Ensured safety and security on potentially dangerous
events, such as parasailing and zip lining
or on a large boat that offers a broad array of recreational
• Preplanning events months prior to a cruise
activities.”1 Royal Caribbean falls into this product
• Discounted rates on events in comparison to booking
category by providing entertainment and leisure both on-
individually
board and on-land.
Consumers who heavily enjoy on-land experiences can
On-Board Leisure >> extend their stay with Royal Caribbean’s Cruisetours,
which are allocated days where travelers stay in hotels to
A key component of Royal Caribbean’s success is the maximize their experience at a port-of-call2.
immense amount of on-board activities for its consumers.
These include:
Purchases & Product Use
• Outdoor Activities: rock climbing, water parks, golfing
• Theater Entertainment: musicals, singers, comedians Consumers usually purchase multiple tickets when
• Children’s Programming planning a trip on Royal Caribbean cruise, most often for
• Sport and Spa: workout rooms, massages, fitness family members. An emerging trend in the cruise industry
Figure 1.1 : Royal Caribbean ships host classes and yoga/tai-chi is that customers may buy a single ticket and attend a trip
entertainment like musicals, guest performers, • Nightlife: casinos, shopping centers, art galleries, individually instead of with family members or friends3.
group trvia games, comedians dance clubs, bars and formal restaurants
Purchase Methods >>
Off-Board Leisure >>
Percent Breakdown of Purchase Method Although the Internet plays a large roll in purchase
Consumers have a wide selection of destinations when decision, the main method of booking cruise trips is
traveling with Royal Caribbean. They can choose from through a travel agent. Research shows that travel agents
locations, including: have a high level of popularity because they provide
Other
answers for first-time cruise consumers.
18%
Alaska, Asia, Australia/New Zealand, Bahamas,
Bermuda, Canada & New England, Caribbean, In 2010, travelers purchased tickets through sources like
Travel Agent Dubai, Europe & The Mediterranean, Hawaii, Pacific agents and websites4 (see Figure 1.2 ).
37% Northwest, Panama Canal,South America and
3rd Party Site
Transatlantic.
16%

Once they depart from the boat, travelers can

independently visit sites or pay extra money to participate
Online in a Shore and & Land Excursion, which is a guided tour
29% or activity planned by the cruise company. Consumers
can preview the excursions in advanced on the Royal
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/

1 Mintel. (2010, November). Cruises-US: Scope and Themes. Retrieved 4 Mintel. (2010, November). Cruises- Booking Method.... Retrieved from
from http://academic.mintel.com/. http://academic.mintel.com/.
Figure 1.2 : A graphic representation of how
consumers purchased cruise tickets in 2010.
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 Consumers travel on Royal Caribbean cruises throughout been consistent for the last seven years (see Appendix B).
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;j
sessionid=00004mOmAW0lil2sNjICZ9-4Iei:13hldcill

6 Crown and Anchor Society - Royal Caribbean International. Retrieved

from http://www.royalcaribbean.com/cas/home.do;jsessionid=00004mO
mAW0lil2sNjICZ9-4Iei:13hldcill?cS=NAVBAR

7 Mintel. (2010, November). Cruises-US: Executive Summary. Retrieved

from http://academic.mintel.com/.

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 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.
Royal Caribbean International Page
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
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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.
 Competitive Category
Competitive Within the cruise market, there are three types of cruises:
Analysis 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 Competors
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
• Highest financial returns of any cruise company
• 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-ships
12 Cruise Critic. “Carnival at a Glance.” Retrieved from http://www.cruise-
critic.com/reviews/cruiseline.cfm?CruiseLineID=28 critic.com/reviews/cruiseline.cfm?CruiseLineID=28
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• 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 >>
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• 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
and is the flagship cruise line for R.C. Limited, whereas
Princess is a smaller cruise line within the Carnival
Corporation.
13 Cruise Critic. “Princess at a Glance.” Retrieved from http://www.cruise-
 Analysis: Norwegian Cruise
Line
Strengths >>

• Established customer base of singles who are “ready

to mingle”; ships offer single occupancy rooms
clustered around a social gathering spot14
• Offfer “freestyle cruising” - relaxed dining options for
cruise customers who do desire casual dining and
flexibility
• New revenue streams from a recent addition to the
firms owning Norwegian Cruise Lines has brought
in more than $50 million worth of enhancements to
current ships

Weaknesses >>

• Known for having issues with refunds

• Current set of ships were built during or prior to 1993,
which consumers may view as outdated15
• Limited set of mass media advertisements and
promotions
• Does not have a large consumer audience of ethic
minorities

Brand Difference >>

Norwegian Cruise Lines has a more relaxed atmosphere

due to its dining options, which draws certain customers
to the brand instead of Royal Caribbean. Additionally, the
brand does not have the same level of on-board activities
as Royal Caribbean, but does manage to bring numerous
entertainers with huge followings, such as the Blue Man
Group. Younger families do not ride on Norwegian as
much as Royal Caribbean.

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)

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 SWOT
Analysis Strengths Weaknesses
and Objectives • Allure of the Sea and Oasis of the Sea are the two
largest ships within the cruise industry; established
• Smaller stock dividends to share holders in
comparison to other major cruise companies
as a brand of innovation • Limited to no single occupancy rooms for
• Known for entertaining on-board activities like customers not traveling with family or friends
rock-climbing and golfing • Higher average ticket prices in comparison to
• Consumer base tends to skew towards consumers Carnival Cruises
Objectives with a higher household income in comparison to • Recent negative media attention for fatalities of
the average cruise traveler customers and crew members
Sales Objective • Numerous destination points around the world, • Advertisements and promotions mainly target
including private ports-of-call and established Caucasian consumers and limit exposure to Asian
• Increase sales 3% in 2012. partnerships with hotels for Cruisetours Americans and Latinos
• Highly established social media campaign to reach
Marketing Objective consumers, including Flickr account to share
photos and a frequently updated blog from the
Royal Caribbean CEO
• Increase purchase of cruise line tickets
among young married couples who have
never been on a cruise by 12% in 2012.
Opportunities Threats
Advertising Objective • Increasing customer base through marketing • Uncertain economic climate may inhibit middle-
towards Asian Americans and Latinos, both of class consumers from purchasing cruise tickets
• Stimulate the desire to go on a cruise by whom currently ride on Royal Caribbean cruises
• Expansion of family friendly cruise programming
showcasing the affordability of cruising in a more than any other cruise line
from Norwegian Cruise Lines and Nickelodeon
tropical paradise • Increasing program towards LGBT consumers, may harm Royal Caribbean’s current reputation as
who travel on cruises more than the average U.S. one of the best cruises for families
cruise consumer
• As the age gap of 55+ in the U.S. continues to
• Upcoming full production of the broadway increase, Royal Caribbean’s unique family offerings
musical Chicago is recognized in the U.S. theater and physical activities may not become areas of
community as a high-quality show; may bring in an relevance for older customers
increased stream of first-time cruise customers
• International tensions, like current riots in Egypt,
• Establishing brand image of cruise line that cators may impact consumer confidence levels and thus
to families, older adults, and parents with young decrease sales as
children.

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 Competitive Spending

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 Summary of
Total Spending

SOS Overall
Total Raw Spending
$40,000.00
Royal Caribbean
18%

$34,853
$35,000.00

$30,000.00

$25,646 Carnival
Media Spend (in US Dollars)

39%
$25,000.00

$20,000.00
Princess
$16,135 14%
$15,000.00
$12,300

$10,000.00

$5,000.00

$-
Carnival Norwegian Princess Royal Caribbean
Cruise Lines

Norwegian

Total Raw Spending

29%

Looking at the overall raw spending of the four SOS Overall

different cruise lines within the product category,
it’s evident that Carnival Cruise Lines has the Like the Total Raw Spending Chart, Carnival
highest media spend at $34,853,000. Cruise Lines dominates the SOS within the brand
category with more than a quarter of the media
• Princess Cruise Lines has the lowest media purchases.
spend at $12,300,000.
• Royal Caribbean ranks 3rd in the media
spend with 16,135,000

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 SOS by Medium
Among the 11 different medium categories,
different trends occurred among the
companies within the brand category.
SOS For Each Medium
Specifically, the following companies
120.00%
had SOS dominance in the listed media
categories

100.00%
• Carnival Cruise Lines: Magazines
• Norwegian Cruise Lines: None
• Princess Cruise Lines: Spot TV,
80.00% Network Radio SOS, Spot Radio,
Local Newspaper, Outdoor
SOS in Percent

• Royal Caribbean Cruise Lines: Network

60.00% TV, National Newspaper, Internet

Looking at the chart to the left, the current

40.00% media landscape has some unique
patterns worth noting:

20.00%
• Although Carnival Cruise Lines has the
highest overall SOS, it only dominates
the SOS in the magazine category
• There are only 3 different categories
0.00%
Nat'l Local where all four of the cruise lines invest
Network Cable TV Spot TV Network Spot Radio Magazines Internet Outdoor
TV SOS SOS SOS Radio SOS SOS SOS
Newsp Newsp
SOS SOS media space
SOS SOS
• Princess Cruise lines has the lowest
Carnival 0.00% 38.10% 48.89% 0.00% 0.00% 50.99% 10.79% 21.02% 27.38% 23.97%
overall SOS, but manages to have
Norwegian 0.00% 37.58% 0.00% 0.00% 0.00% 29.98% 0.00% 26.96% 18.86% 28.67% the highest SOS among five different
Princess 0.00% 13.74% 51.11% 100.00% 100.00% 0.00% 16.07% 52.02% 21.65% 47.36% media categories.
Royal Caribbean 100.00% 10.58% 0.00% 0.00% 0.00% 19.03% 73.14% 0.00% 32.10% 0.00%

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 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
Total Category Spending by Medium companies are investing heavily in certain
$45,000.00 areas of media more than others:
$41,063.00
• The companies have placed a high
$40,000.00
investment in Cable TV and Magazines.
• Although this graph shows that there
$35,000.00 is a high investment in Cable TV
and Magazines, it does not take into
consideration the cost efficiency of the
$30,000.00 $28,499.00 medium.
• No companies invested their budget
into Syndicated Television
US Dollars (000)

$25,000.00
• Companies placed more money into
Cable TV than into Network TV, which
$20,000.00 may show that they are targeting
specific audiences based off of certain
demographics and psychographics
$15,000.00 instead of pushing towards a mass
reach to general TV viewers.
$10,000.00

$4,981.00
$5,000.00 $4,199.88
$3,579.00
$2,146.00 $1,894.00 $1,684.00
$654.00 $234.00 $-
$-
Cable TV Magazines Spot TV National Internet Network Outdoor Local Spot Radio Network
Newspaper TV Newspaper Radio

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 Total Category
Seasonality
The total category seasonality shows
a mid-year decline in media spending
followed by a boost back to roughly the
Total Category Seasonality same advertising expenditures as January
$12,000.0 and February.

• Between February and March, the total

$10,396.7 $10,395.7 $10,391.7 $10,392.7 $10,393.7 $10,394.7
media spend decreased by more than
$10,000.0 60%, which is a drastic decrease
• The mid-year decline of media spends
may reflect the changes in weather
among cruise locations and vacation
$8,000.0 times like Spring Break and Winter
Break.
U.S. Dollars (000)

$6,000.0
Additionally, Royal Caribbean and Carnival
have distinct media spending patterns
$4,705.4 $4,703.4 $4,591.4
while Princess and Norwegian share similar
$4,426.4
$4,070.4 $4,071.4 patterns (see next page for graphs).
$4,000.0
• Royal Caribbean advertises all year
round, but increases its media spend
from May - August.
$2,000.0 • Carnival advertises all year round,
but has the same total media spend
amount every month
• Norwegian and Princess do not
$0.0
January February March April May June July August September October November December advertise March - August. Additionally,
Month during the months where the
companies do advertise, they have the
same total media spend every month.

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 Competitor
Media Strategy
Carnival Seasonality
Carnival Cruise Lines Media Mix $3,500.0

Outdoor National Newspaper $3,000.0

$454.00 $453.00 Local Newspaper
1.30% 1.30% $354.00 $2,500.0
Internet

Amount Spent in US Dollars (000)

$980.00 1.02%
$2,000.0
2.81%
$1,500.0
Spot TV
$2,435.00 $1,000.0
6.99%
$500.0

Cable TV $0.0
January February March April May June July August September October November December

$15,645.00 Month

44.89%

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
Magazines two different media categories among all cruise lines within
$14,532.00 the brand category
41.70% • 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
to reiterate that media efficiency for Internet advertising is
In US Dollars (000) different from large, mass-reach mediums like national or
cable television

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 Norwegian Cruise Lines Seasonality
Norwegian Cruise Lines Media Mix $4,500.0

Outdoor Local Newspaper

$4,000.0

Internet $543.00 $454.00 $3,500.0

$675.00 2.12%

Amonth Spent in US Dollars (000)

1.77% $3,000.0

2.63%
$2,500.0

$2,000.0
Norwegian

$1,500.0

$1,000.0

$500.0

$0.0

Month

Magazines
$8,543.00
33.31% Norwegian Cruise Lines
Norwegian Cruise Lines only places advertisements in five
different media categories
Cable TV
$15,431.00 • Like Carnival Cruise Lines, Norwegian allocates most of its
60.17% 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.
In US Dollars (000)

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 Princess Cruise Lines Seasonality
Princess Cruise Lines Media Mix
Spot Radio
$2,500.0
Network Radio
$234.00 $654.00
1.90% 5.32%
$2,000.0
Local Newspaper
$876.00

Amount Spent in US Dollars (000)

7.12%
$1,500.0

National Newspaper
$675.00 $1,000.0 Princess

5.49%

$500.0

Cable TV
Outdoor $5,643.00
$897.00 45.88% $0.0

7.29%

Month

Internet Princess Cruise Lines

$775.00
6.30%
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.
In US Dollars (000) • Princess places a high emphasis on Spot TV
Spot TV
$2,546.00
• The company does not advertise on National TV, Syndicated TV or
20.70% Magazines.

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 Opportunities Summary of Current Media Print

Landscape Both Carnival and Norwegian place a high amount of

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.
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.

To strengthen its media presence and achieve its Royal Caribbean should enter the Local Newspaper
marketing objective, Royal Caribbean needs to analyze category to establish its brand presence. They could do
its competition’s media strategies to figure out where it so by placing ads when both Princess and Norwegian do
should place its advertisements. not place any advertisements

By understanding the needs of its target consumer and Radio

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.
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.

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.

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 Media Objectives

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 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.
• The first pulse will occur from January through March
and the second will occur from August through
December.
Royal
RoyalCaribbean
CaribbeanInternational
International Page
21 21
Page
• Within each pulse, the first two months will have
slightly 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
high level of noise from competing firms.
• The established level of National + Spot Media GRPS
will provide Royal Caribbean with a cost-efficient
solution to persuade target consumers through
a diversified media mix like cable television and
sponsored websites.
 Target Profiles

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 Target Profile Demographics
Ethnicity >>

Royal Caribbean’s target consumer has a unique set of

Ethnicity 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
Education many of the consumers are not from a Caucasian decent. Family Composition >>
and Employment
Education and Employment >> Royal Caribbean’s target has a household of young
children in large numbers. Looking at the data, the target
The target is likely to have a wide set of academic most likely has 1-3 children who are under the age of 10.
experiences under his or her belt. Looking at the data, the The low index in the response “I have two 12-17 year
target has most likely completed four years of college and old children” reinforces that the households are likely to
have very young children who are either in pre-school or
Family graduated.
beginning their elementary education.
Composition Additionally, over 30% of the respondents within the
column stated that they had either graduated college or Additionally, it’s important to note that the women in these
achieved higher education like a graduate degree. families are likely to have kids within the next year, as
noted by the extremely high index.
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.

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 Geography >> 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
Lifestyle:
refinancing their current home, the target’s family is Demographics
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.

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Lifestyle:
Statements

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
Behaviors: Entertainment that Royal Caribbean’s target sees himself/herself as
and Leisure 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.
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.

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.

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 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.
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

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 Broadcast
Caribbean is a company that provides travel services. Television
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. TV Dayparts
However, when looking at the vertical percentages, the
data presents some patterns about television viewing

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 Print: Magazines and Newspapers >>

Print: Magazines The target consumer likes to read magazines to find
and Newspapers 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.
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

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 >>
Radio
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.

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 Media Strategies

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 Cable Television (National)
Media
Looking at the current Cable TV SOS, it’s clear that Royal
Caribbean needs to increase its presence to increase its
Strategy SOS, which is currently the lowest of all four cruise lines.
Summary Daytime >> $410mm
Selected as a secondary medium daypart to other TV
dayparts.
• Target profile data shows that Royal Caribbean’s
target 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
throughout the 2012 year due to its cost efficiency.
• 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
due to the daypart’s ability to narrowly target specific
consumer types.
• Since primetime cable television shows tend to
Royal Caribbean International Page
29
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
 of the creative message for male consumers.
• Since print is not cost-efficient relative to other
mediums, Royal Caribbean will only promote through
this outlet during pulses.
• According to target profile data, the consumer likes
to workout and participate in activities like soccer/
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
interest magazines, according to the targeted profile data.
• A more cost-effiecent print medium that can be used
when 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
lot of money because consumers are not making
purchase decisions.
Internet
Search >> $3784mm
Search engine marketing (SEM) will be used to drive
targeted 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.
• Highly targetable and cost-efficient
• Royal Caribbean can use the geotargeting aspect of
SEM to reach consumers within west-coast areas.
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Targeted Sites >> $3878mm
Website advertisements would be a good option to
increase frequency when consumers watch impact TV
shows, such as award shows or season finales, in addition
to placements throughout the day.
• Data from Choices shows that consumers are likely to
visit 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
frequency will likely be high.
Sponsorship >> $3784mm
Sponsored pages will help Royal Caribbean break free
from 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 • Currently, Royal Caribbean is the SOS in this category
and should maintain its position within it.
• Newspapers may provide additional reach from
Royal Caribbean can use spot television to advertise reported circulation numbers because people may
during network programming without paying a premium read an issue in a doctor’s office/salon. This will give
to reach national audience. This is a cost-efficent solution Royal Caribbean a potentially reach in comparison to
that allows Royal Caribbean to advertise during quality other mediums.
programming without “breaking the bank.”

Daytime >> $501mm Mobile Search >> $3000

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.
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.

• 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.

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 Media Mix, $(000)

Net Cable-E Fringe Net Radio-Daytime

$1,314.20 Newspapers (40% HH Cvg)
Magazines-Mens $236.80
4% $1,199.10
$2,780.50 1%
4%
9% Magazines-
Womens Magazines-General Interest
$2,322.10 $975.20
8% 3%

Net Cable-Daytime Mobile Search

Net Cable-Prime $409.30 $3,000.00
$3,766.20 1%
Other 10%
13%
$6,197.90 Spot TV-Daytime
21% $501.30
Internet-Sponsorship 2%
$3,784.00
13%
Net Radio-Morning Drive
Internet- $545.60
Keyword/ Internet-Trgtd Sites 2%
Search $3,878.60 Spot TV-Prime
$3,784.00 13% Spot Cable $876.70
13% $628.20 3%
2%

Year at a Glance

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 TV Radio
Vehicle Network TV >> National >>

Recommendations •
•
•
How I Met Your Mother (Index: 135)
The Office (Index: 163)
Modern Family** ( 18-49 Rating: 3.9)
Purchase thorugh a national media conglomerate like
Clear Channel Communications, which covers a wide
scope of genres across the country.
• Glee** ( 18-49 Rating: 3.7)
• Big Bang Theory** ( 18-49 Rating: 3.2) • Morning Talk Shows
• Modern Rock
Cable TV >> • Top 40 Stations

TBS >> Vertical % of 39

Magazines
• The Office reruns*
• Meet the Browns* Men’s Magazines >>
• My Name is Earl reruns*
Based off of psychographic preference in active lifestyles
Disney Channel >> Vertical % of 93 (see Target Profile section)

• Hannah Montana • GQ
• Suite Life of Zack & Cody • Men’s Health
• Shake It Up • Fitness Magazine

Women’s Magazines >>

E! >> Vertical % of 44
• People Magazine (Index: 153)
• Keeping Up WIth the Kardashians • Glamour (Index: 210)
• Style Police • Cosmopolitan (Index: 252)
• E! News • Self Magazine
• Marie Claire

Bravo TV* General Interest Magazines >>

• Real Housewives of NYC • National Geographic (Index: 190)

• Top Chef • Parade Magazine (Index: 132)
• Flipping Out • Smartsource (Index: 129)
• Time Magazine*
Nielsen Ratings: http://tvbythenumbers.zap2it.com/category/ • Readers Digest*
weekly-tv-ratings-rankings/

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 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
• USA Today* (based on the fact that target profile data
shows consumers do not read NY Times or Wall
Street Journal; USA Today is less “hard news” and
more lifestyle”
• Chicago Tribune*
• LA Times*

Mobile Search
Apps >>

• Shazam* (100MM mobile users)

• Pandora* (3MM mobile users added each month)
• Words With Friends*
• Angry Birds*

App Data Statistics: “10

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

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 TV
Creative Units :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

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 Media Plan Flowchart

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Royal Caribbean International Page
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 Appendices

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 Appendix A
Yearly Revenue, Expenses and Net Income, in US$ Millions
14,000.00

12,000.00

10,000.00

8,000.00
Revenue
Net Income
Operating Expense
Net Income
Revenue
6,000.00

4,000.00

2,000.00

0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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 Appendix B
Percentage of Respondents Who Reported Taking a Cruise in the
Last 3 Years, by Cruise Line
45

40

35

Carnival
30
Percent of Surveyed Consumers

Royal Caribbean
Norwegian
25 Princess Cruises
Celebrity

20 Holland America
Disney
Cunard Cruises
15
Radisson Seven Seas
Other
10

0
May 2003-April 2004 May 2005-June 2006 April 2007-June 2008 April 2009-June 2010

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 Peer Review Feedback The cost was an important factor because my media buy
Appendix C My two different peer review groups provided great
was $30mm, which is smaller than most media buys in
the class.

feedback on changes that I needed to make in my media

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

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.

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