Differentiation Strategy
With the addition of many onboard activities and entertainment such as nightclubs, casinos, gift shops, and shows, Carnival Corporation markets the ship as the primary destination and the ports of call as secondary (Keeffe et al, p. 17-3). Perhaps the most brilliant part of Carnival�s differentiation strategy of adding onboard activities such as casinos and nightclubs is that they not only attract passengers to the line, but the activities are profit centers as well, adding significant revenue to the corporation (Wheelen et al, p. 253). Onboard gift shop sales, liquor sales, and casinos account for as much as 15% of the total corporate revenue annually. This type of additional revenue-generating differentiation strategy has given Carnival the opportunity to pursue some cost leadership strategies as well. (Wheelen et al, p. 118)
With the ever-growing popularity of NASCAR, The Fun Ship has partnered with NASCAR Champion Rusty Wallace to host a series of Rusty Wallace theme cruises. NASCAR fans can take a seven-day Caribbean cruise with one of NASCAR�s most popular drivers, Rusty Wallace. During the seven-day excursion, fans can participate in a number of activities with Wallace, which include a one-hour question and answer session, a private cocktail party, and autograph session with photo opportunities with Wallace. Fans also have a chance at winning the honor of dining with Rusty Wallace at his table for an evening (villagetravel.com).
The Rusty Wallace theme cruise is a competitive tactic that not only differentiates Carnival from the competition but also attracts a segment of the target market that has not been successfully captured by the cruise industry in the past. Carnival�s ability to pursue and capture untapped demographics such as those of NASCAR fans has undoubtedly been a large factor in their success (Wheelen et al, p. 119).
Other recent differentiation tactics include the addition of expanded dining choices for passengers who prefer a more casual dining atmosphere, special children�s programs for younger families, new spa facilities, and the option of having your very own Carnival shipboard wedding ceremony and reception. Passengers can now even choose the length of their vacation from 2-17 day options to fit the complex schedules of today�s vacationers (carnival.com).
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Carnival's Strategies
Cost Leadership
Major Competition
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