Natalie Hanson

TABLE OF CONTENTS
Executive Summary Situational Analysis Company Background Sales, Market Share Competitive Analysis Distribution Opportunity, Problem Creative Strategy Problem Objective Positioning Statement Brand theme Target Audience Objective Target Market description Rationale Target Market Media Mix Reach & Frequency Objective Rationale Strategy Media Budget Objective Rationale Strategy Geography Objective Rationale Strategy Scheduling Objective Rationale Strategy Bibliography Appendix

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Executive Summary Carnival Corporation & PLC is the largest global cruise and vacation company in the world. In 2001 Carnival introduced a new class of vessels with the launch of the Carnival Spirit the first new fun ship ever positioned in the Alaska and Hawaii Markets. This new class of fun ships has established CCLs current brand as a fun for all, all for fun exotic vacation option for families and couples. Currently equipped with 23 fun ships, They are known for their festival like atmosphere with Las Vegas glitz and nightlife, water slides and pool games and activities for the whole family. According to cruisemarketwatch.com, Carnival Cruise Lines controls 51.6% of worldwide share of revenue making it the biggest cruise line in the world, compared to its leading competitor Royal Caribbean, who controls 25.6%. The total worldwide cruise industry is estimated at $33.5 billion with 20.3 million annualized passengers carried, a 5.6% increase over 2011. Its largest competitor is Royal Caribbean (RCL) the worlds second largest cruise operator by number of ships, which commands a nearly 23% market share. Although Carnival remains to be the number one cruise line, one of the primary problems CCL currently faces is their risk of declines in sales and business because of the weakening U.S economy. Carnival derives a majority of its revenue (nearly 52%) from the U.S market, making themselves vulnerable to economic fluctuations of America economy. Another problem CCL is currently facing is the bad publicity they have been receiving within the last two years. Carnival Cruise lines has suffered some severe incidents within the last 2 years, incidents like this have severely hurt the Carnival Brand image and reputation. Fortunately, Carnival has the opportunity to re-establish and reassure its valuable brand image within the cruise market to gain potential customers and ensure returning customers. By promoting a strategic media plan, CCL has the opportunity to increase their current reach and increase their annual sales in 2013. For the proposed media plan, the creative problem that must be solved is to generate more sales amongst adults 35-44, the second largest segment of people who have traveled with Carnival Cruise Lines. NH Agency will incorporate innovative and creative media mixs into this media plan that focus on the valuable CCL brand image and exclusive deals, savings and reduced prices that CCL offers against competitors. The typical Carnival cruiser is in the middle to upper middle class of society. They are mostly white adults above the age of 35 who are, for the most part, currently married with a family. This consumer has completed a form of higher

education and is either employed full time, near the age of retirement or has retired. A majority of these cruisers have children and have an annual HHI around $90,000. This consumer loves to travel and is likely to have had cruised before. Traditional media that will be most effective at reaching this age group are radio, magazines and TV. Internet will also be implemented as a nontraditional way of reaching the target market When targeting a large group of people it is important to use a variety of media mixes to affectively increase reach and frequency. NH Agency recommends using both national and spot advertising for this media plan. We will use national advertising continuous throughout the 12 year plan but will advertise more heavily during the months leading up to the cruising wave season, the period between January 1st and March 31st when cruise lines and their travel agent partners showcase the full scope and variety of cruise vacations through exceptional special offers. Throughout the remaining months of the year we will include a continuous flow of national advertising with spot advertising throughout the months of January and September. This media budget will be spent in geographic areas with the highest levels of sales. NHs Agency recommends using a split budget because we want to reach potential cruisers as well as current cruisers that fit into the current target segment.

Marketing Background Business Review/Situation Analysis

Company and Product Review Carnival Corporation & PLC is the largest global cruise and vacation company in the world. Headquartered in Miami, Florida with another headquarter in London, UK, CCP primarily operates in North America, UK, Germany, New Zealand, Spain, Brazil, and Australia. CCP currently owns at operates 12 leading cruise ship lines, including Carnival Cruise Lines, the largest fleet in the group with 23 vessels that account for 21.1% of worldwide market share. Carnival Cruise Lines was established in 1972 after the release of their first vessel, the TSS Mardi Gras. In 1987 CCL achieved its position as The Worlds Most Popular Cruise Line and has since established themselves as an exclusive pioneer brand in the concept of shorter, less expensive cruises. In 2001 Carnival introduced a new class of vessels with the launch of the Carnival Spirit the first new fun ship ever positioned in the Alaska and Hawaii Markets. This new class of fun ships has established CCLs current brand as a fun for all, all for fun exotic vacation option for families and couples. Currently equipped with 23 fun ships, Carnival offers a variety of 3-17day voyages throughout the Bahamas, Caribbean, Mexican Riviera, Alaska, Hawaii, the Panama Canal and the Canadian Maritime Provinces. Their primary home ports include Miami, San Juan,

Long Beach, Tampa and New Orleans. Carnival appeals to a diverse market through their lowcost promotional efforts, brand loyalty and their mission to surpass customer expectations. They are known for their festival like atmosphere with Las Vegas glitz and nightlife, water slides and pool games and activities for the whole family. The two newest members of the fun ships family include the Carnival Magic, released in 2011 and the Carnival Breeze, which is scheduled to enter service on June 3rd 2012. CCL expects to carry a record 4.4 million guests in 2012.

Sales and Market Share Analysis CCL operates in the multi-night vacation industry. According to Wiki-Invest, approximately 63% of the cruise passengers in the world are sourced from North America. In 2009, CCL earned total revenues of $10.4 billion, a slight decline from its 2008 total revenues of $11.6 billion, which had a negative impact on CCLs net income. According to cruisemarketwatch.com, Carnival Cruise Lines controls 51.6% of worldwide share of revenue making it the biggest cruise line in the world, compared to its leading competitor Royal Caribbean, who controls 25.6%. The total worldwide cruise industry is estimated at $33.5 billion with 20.3 million annualized passengers carried, a 5.6% increase over 2011. Cruising is currently ranked number 1 in consumer interest, and perceived value remains to be a strong selling point. In regards to the current cruise industry growth, Christine Duffy, CLIAs CEO and President stated, Based on analysis of responses to the Cruise Market Profile Study, the cruise industry can be optimistic about its continued growth and success. CLIA member lines have had an average annual passenger growth rate of more than seven percent since 1980. In 2010, capacity increased by 8.1 percent yet CLIA member line ships continued to operate at 103.1 percent occupancy. In a nutshell, the cruise industry continues to innovate and deliver on the cruise product promise, with the result that millions of Americans are intending to take a cruise in the near future.

Competitive Analysis Carnival competes against a number of small cruise line operators and remains to be the cruise brand market leader. The company contains certain competitive advantages and economies of scale that competitors do not. Carnival holds a 44% market share with 81 cruise lines. Carnival Cruise Lines receives the majority of its revenue from gambling, shore excursions, bar revenues and other amenities across brands including Carnival Cruise Lines, Princess, Costa, Holland America Line, P&O, AIDA, Cunard and Seaboard. With the largest number of ships and the greatest capacity, the company spreads much of its corporate overhead over a larger cruise liner base and has heftier margins, since it can do things like leverage size for more favorable purchases of on-board equipment and supplies. Its largest competitor is Royal Caribbean (RCL) the worlds second largest cruise operator by number of ships, which commands a nearly 23% market share.

Royal Caribbean (RCL) operates nearly 40 ships and has over 92,00 berths to over 400 destinations, while carrying around 4 million passengers. RCL operates its ships under the brand names Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Cruises and CDF Croisieres de France combining to control 23.8% of the worldwide cruise market (Wiki-Invest). RCL has over 20 ships and 50,000 berths. The Royal Caribbean International fleet offers various cruise lengths and destinations depend on the target segment. Overall, RCL offers somewhat more upscale cruises and may be even more exposed to luxury purchases than CCL. RCL has fewer brands than CCL which provides fewer opportunities for price discrimination and demographic targeting. Also the company has more modest international operations than CCL, providing less exposure to some more rapidly growing markets. RCLs revenue increase from 5.89 billion in 2009 to $6.75 billion in 2010. Currently, the company spreads much of its corporate overhead over a larger cruise liner base and has respectable margins, since it can do things like leverage size for more favorable purchases of on-board equipment and supplies.

Distribution/Penetration According to a recent CLIA report, Cruise vacation satisfaction remains high and is a driver of repeat cruise business. Overall satisfaction rates are 94 percent and compared to other vacations, cruise vacations are among the leaders in "extreme satisfaction". Of respondents who provided information about their last cruise, 60 percent have cruised in the past and 40 percent claimed their last cruise was their first cruise, indicating that the cruise industry continues to attract new guests. (3) The cruise industry has been extremely adept at creating product- new ships, innovative itineraries, new destinations and continually evolving shipboard experiences. Cruise sales come from many channels, including direct sales, online travel agencies, meeting and incentive markets, tour operators and others. According to CLIA, roughly 3% of Americans took a cruise vacation in 2011 and approximately 24% of all Americans have cruised before. There is expected to be passenger growth within seniors, families, young travelers, singles and social/corporate groups. Individuals who have taken a cruise in the past believe the best service for cruise planning is found through agents, from Carnival Cruise Lines directly, cruise line website and tour operators. According to CLIA, about three fourths (74%) of all cruise passengers book at least one of their cruises through a travel agent. Internet promotions have continued to lure in online transactions. The 2012 CLIA Annual Report states that among information sources, the destination website elementrather than the brand website, remains to be the leading influence for cruisers. Cruisers tend to book 3.3 months before the trip and about 1.5 months after planning begins (4.9months). As of 2010, USA remained first in Cruise Penetration by Country with 3.26%. Overall, the reason for such successful market penetration and distribution in the cruise industry is value. The inclusive nature of cruise pricing plays a big part but less tangible factors are also important, including the convince of packing and unpacking only one, not having to worry about flight reservations (usually) and opportunity to explore several countries or destinations in one vacation. North American home ports for cruises are within

driving distance of 75 percent of the population. (http://www.cruising.org/sites/default/files/pressroom/2012CLIAIndustryUpdate.pdf)

Marketing Problem & Opportunity Problems One of the primary problems CCL currently faces is their risk of declines in sales and business because of the weakening U.S economy. Carnival derives a majority of its revenue (nearly 52%) from the U.S market, making themselves vulnerable to economic fluctuations of America economy. Because of the declining economy, people are now becoming more and more cautious with spending their money-specifically their disposable income. Another problem CCL is currently facing is the bad publicity they have been receiving within the last two years. Carnival Cruise lines has suffered some severe incidents within the last 2 years including a fire breakout in the engine room of the Carnival Splendor knocking out power to both propulsion and hotel systems, a collision between the Carnival Imagination and Carnival Fantasy that took place off the port of Key West, FL. And a recent incident in Feb 2012 in which 22 passengers (aboard the Carnival Splendor ) were held and robbed at gunpoint during a tourist excursion in Puerto Vallarta, Mexico. Incidents like hurt the Carnival brand image and questions customers loyalty. The final problem CCL users face is the increase in fuel prices. According to a March 2011 Investopedia report, Fuel costs increased by 9% in the quarter from the same quarter in 2010 from $497 per metric ton to $543 per metric ton. While net revenues were up to $3.4 billion for the quarter compared to $3.2 billion in last years same quarter, net incomes fell to $152 million or 19 cents a share from $175 million or 22 cents. Fuel costs are expected to increase throughout 2012. Opportunity Carnival has the opportunity to re-establish and reassure its valuable brand image within the cruise market to gain potential customers and ensure returning customers. By promoting a strategic media plan, CCL has the opportunity to increase their current reach and increase their annual sales in 2013. One of the main strengths CCL currently can take advantage of is the aging baby boomer generation, a growing population which is beginning to enter retirement. This older generation is the second largest segment within the current cruiser population, adults ages 45-54. It is likely that seniors may continue to gravitate toward warmer-weather vacations. Coupled with the fact that retirement means more time to ones self, and for many baby boomers, time to travel, the company has significant demographic tailwinds working in its favor.

Strategy Outline: Creative Strategy

Creative Problem For the proposed media plan, the creative problem that must be solved is to generate more sales amongst adults 35-44, the second largest segment of people who have traveled with Carnival Cruise Lines. This segment has the potential to increase CCL sales and build a strong, mature customer base. Objective In order to reach this target segment of cruisers and potential cruisers aged 35-44, NH Agency will develop a cost efficient media plan that will increase traffic and raise awareness within the cruiser target audience, specifically the adults 35-44. NH Agency will incorporate innovative and creative media mixs into this media plan that focus on the valuable CCL brand image and exclusive deals, savings and reduced prices that CCL offers against competitors. Our advertising and marketing focus will be primarily focused around the cruising Wave Season, the busiest time of year that people book cruises. By using creative media to conduct promotion (primarily before and during the cruising wave season) NH Agency will focus on increasing a large target reach and high frequency amongst several top markets. By doing so, NH Agency will successfully attract consumers and generate sales amongst the 12 month period. By emphasizing Carnivals overall low cost high value image consumers will become more attracted and interested in the CCL brand amongst the competition. Goal: The overall goal of this CCL media plan is to increase total revenue by at least 5% following the implementation of this 2013 campaign

Positioning Statement Carnival Cruise Lines offers both a family fun vacation and a romantic getaway vacation for couples. CCL vacations include entertainment, leisure, food and exploration for any age. We want the target audience to view the Carnival Cruise Lines as an affordable, fun way to make your dream vacation become a reality. Our goal is to position Carnival Cruises as the Fun for anyone and everyone hot spot. Carnival Cruise is more than a week of sailing around trapped in a boat, its an adventure, its exotic, and its out of the ordinary. We want Carnival Cruise vacations to be seen as a completely different vacation experience than those of the more

classic variety. We want our target audience to view Carnival Cruises as a whole new experience that no other vacation destination or cruise lines will ever be able to give or replicate.

Brand Theme With the introduction of the Fun Ships in 2001, Carnival has branded itself as a Fun for all, All for fun cruise line. Their brand centers around the theme of not only outstanding value for the money, but most importantly fun. They want their guests to have experience fun through their various cruise day and night features including stage shows, musical performances, casinos, etc.

Slogan: Fun For All, All For Fun Promise/Mission: Carnival Corporation & PLCs mission is to deliver exceptional vacation experiences through the world's best-known cruise brands that cater to a variety of different lifestyles and budgets, all at an outstanding value unrivaled on land or at sea.

Target Audience Objective

Currently, the cruise industry represents a small, yet effective segment of the vacation industry which itself is a very small part of the leisure industry. Carnival in particular, targets a broad, diverse and contemporary target market. They want their family friendly and low cost services to accommodate both family and couple audiences. Currently, Carnival heavily targets parents, families and couples looking for an exciting vacation. NH Agency proposes to focus the CCL target market towards adults ages 35-44, the second highest segment to travel with Carnival Cruise Lines within the last 3 years. According to WikiInvest, 60% of world wide cruise passengers are over the age of 40. This market segment enjoys traveling and is often repeat cruisers. They consider value to be the main determinant when choosing a vacation and are very brand loyal. These individuals are informed consumers and smart investors. This segment is the more mature adults, with the 40+ age group beginning to think about retirement and future plans. Because the edge of this target market is the beginning age of the baby boomer generation, this segment also allows potential for CCL growth amongst the beginning baby boomer generation. CCL is focused primarily on fun and enjoyable cruising for all ages, making the 35-44 segments a primary target for growth. The largest segment of past cruisers consists of 45-54 and while this group is important to focus on, Carnival needs to focus more on mature traveling couples and adults with children, who are generally in the 35-44 age range. Adults of this segment are more likely to have younger children, a key factor when

typically deciding a cruise line. The graph below displays the current age demographics for Carnival Cruise Line cruisers.

Carnival Cruise current age

Age 65+ Age 55-64 Age 45-54 Age 35-44 Age 25-34 Age 18-24 11.8 16.4 19.3 13.2 15.6 23.7

This target market is also primarily made up of couples. While cruise customer demographics and preferences vary by cruise line and the segments of cruise travel, cruise vacationers overall typically travel in pairs with 80 percent traveling with a spouse. These couples are adventure seekers and want a vacation that will give them the opportunity to explore multiple destinations as well has include relaxing down time to enjoy each others presence. They are looking for a vacation that offers exceptional value for their buck and will give them both exciting adventure and relaxing down time. The graph below illustrates the current CCL users marital status.

Current CCL user Marital Status

70 60 50 40 30 20 10 0 63.3

21.9

5.2

14.8

Marital Status: Marital Status: Marital Status: Marital Status: Never Married Now Married Engaged Widowed* or Divorced* or Separated

A Majority of cruise goers are married and/or have children aged 6-17. These people are commonly family-oriented and are looking for a vacation that will be enjoyable for both the kids and the parents. These families typically have parents who lead busy lives and have full time jobs. They are looking to get away from the stress and want their vacations to be exciting yet

relaxing. Amongst current cruisers within the market, thirty-three percent travel with children, 19 percent with friends, and 18 percent with other (non-child) family members (CLIA). Another characteristic of this target market is the education level. Because of the high education level, these adults are typically considered to be upper-middle class to upper class with an average house hold income of $97,000 and a median age of 40. The majority of the people in this market have an average house hold income between $40,000-$149,000 and 76% have graduated college plus. According to the 2011 Cruise Overview Report by FCCA, this segment of adults 35-44 whom have graduated college, represent 43.6% of the total US population. The graph below illustrates the current CCL users HHI income

HHI: <$20,000 HHI: $20,000-$29,999 HHI: $30,000-$39,999 HHI: $40,000-$49,999 HHI: $50,000-$59,999 HHI: $60,000-$74,999 HHI: $75,000-$149,999 HHI $150,000+ 0 10 20 30 40 50

Media Usage: Carnival Cruise Line users Media Usage Internet: As for media usage, CCL users have a tendency to be heavy users of the internet. This means that a majority of CCL clients fall into Quintile 1 and Quintile 2, as shown in the graph below. This graph shows how beneficial using the internet as a media vehicle, especially within the 1st and 2nd quintiles.

CCL's Internet Quintile

30 20 10 0 25.8 28.3 21.2 15.9 8.8

Internet Quintile I

Internet Internet Internet Internet Quintile II Quintile III Quintile IV Quintile V

Media Usage Magazines: CCL users also tend to be heavier users of Magazines. Most of these consumers fall into the first three quintiles in the chart below. This magazine graph shows the highest reach potential within the first three Magazines Quintiles.

CCL User's Magazine Quintile

30 20 10 0 Magazines Magazines Magazines Magazines Magazines Quintile I Quintile II Quintile III Quintile IV Quintile V 26.7 24.9 19.4 17.4 11.7

Media Usage Television: CCL users currently tend to gravitate towards television, but not as much as internet and magazine quintiles. TV is highest in the Quintile IV range but that still only gives its a 22.4%. However, this medium also has the potential to become increasingly popular amongst the market, given the proper network and spot placements.

CCL user TV Quintiles

TV (total) Quintile V TV (total) Quintile IV TV (total) Quintile III TV (total) Quintile II TV (total) Quintile I 19.6 22.4 21.2 19.3 17.5

Media Usage Radio: Currently, CCL users are staying away from Radio. Radio only has a 15.8% in the first Quintile. However, radio is a great frequency builder and has a lot of potential, given proper network and sport placements.

CCL user Radio Quintile

Radio Quintile V Radio Quintile IV Radio Quintile III Radio Quintile II Radio Quintile I 15.8 20.3 21.8 23.4 18.7

Target Market Media Mix Traditional media that will be most effective at reaching this age group are radio, magazines and TV. Internet will also be implemented as a nontraditional way of reaching the target market When targeting a large group of people it is important to use a variety of media mixes to affectively increase reach and frequency. The following medias are best fit for the CCL plan: Traditional-Radio: Radio is a great frequency builder, especially were a great deal of repetition is necessary. This will contribute well within our media plan because we plan on targeting a variety of markets to effectively reach adults and potential cruisers, particularly aged 35-44. Radio is a flexible medium and can be used locally, regionally and nationally. The most effective time slots to reach this age demographic are shown in the graph below. During the week, the best times to reach is from 6-10am and 3-7pm. This is shown below in graph 1. As for the weekend, the best times to reach is from 6-10am and 10-3pm. This is shown in below in graph 2

Radio Weekday Time Slots

60 40 20 0 6:00 am - 10:00 am - 3:00 pm - 7:00 pm - Midnight 10:00 am 3:00 pm 7:00 pm Midnight 6:00 am 53.1 39.5 46.7 15.9 4.8

Radio Weekend Time Slots

50 40 30 20 10 0 45.1 32.3 31.6 16.1 3.3

6:00 am - 10:00 am - 3:00 pm - 7:00 pm - Midnight 10:00 am 3:00 pm 7:00 pm Midnight 6:00 am

Traditional Media: Magazine

Magazines are important mediums to include when you want to reach certain kinds of audiences. This will be beneficial when targeting CCL to adults 35-44. Magazines offer fine color reproduction and a variety of color and layout options which will help the advertisements stick out and become attractive to our market segment. NHs Agency recommends using the following 6 vehicles in order to effectively reach adults ages 35-44: 1. People 2. Better Homes and Gardening 3. National Geographic 4. Readers Digest 5. Good Housekeeping 6. Mens Health According to the 2010 MRI Report, these are the top 6 magazines read amongst adults ages 35-44.

Traditional Media: Television Although Television usage Is not as popular within our market segment as internet and magazines, TV is a successful medium to use when looking to increase reach and frequency. It gives the option of sound and sight, something that automatically attracts the consumer. With Television advertisements, CCL can successfully reach its current market and expand within the market to potential cruisers. NHs Agency recommends using the following 6 vehicles in order to effectively reach adults ages 35-44. 1. Discovery channel 2. Espn 3. Weather channel 4. History channel 5. Fox news 6. According to the 2010 MRI Report, these are the top TV channels watched amongst adults ages 35-44 Nontraditional Media: Internet The internet has become an increasingly popular and successful medium. The internet is a fast way to connect with the target audience and maintain that connection throughout the course of 1 year. NHs Agency recommends the following 5 vehicles in order to effectively reach adults ages 35-44: 1. Yahoo or mail 2. Youtube.com 3. Maqquest 4. Amazon 5. CNN According to the 2010 MRI Report, these are the top 5 internet websites viewed amongst adults ages 35-44.

Media not used- Newspaper This medium will not be used in this plan. Although newspapers are generally a successful, immediate medium, NH Agency believes that there are better mediums for this particular target segment that would be more successful and increasing reach and frequency. Because a lot of this campaign focuses on national advertising, the cost of newspapers would be increasingly high within our budge. Newspapers have higher national Ad rates and often are limited to a small pass along audience. When advertising the Carnival Cruise Line brand we want to focus more on more cost efficient and effective advertising that would have an impression on the target market.

Target Market Rationale This Media Plan is aimed at increasing Carnival Cruise Lines overall yearly revenue. According to FCCA, it is estimated that only 19.9% of the total U.S population has cruised ever and 9.9% has done so in within the last three years. The most effective way to increase CCL yearly revenue is to expand the reach within the current cruiser target market. The current cruise profile consists of adults ages 25-54, typically married with children. Many of CCLs leading competitors focus on the younger generation of couples and families with children. Although this has been successful, it would be efficient to also advertise heavily to the 3544 group given the fact that 60% of adults within the cruise profile are over the age of 40. This is the best market to reach because out of this market, only 17% has ever taken a cruise, meaning there is room for greater market penetration and maturity. By focusing more on this 35-44 group, CCL can establish themselves better with their older target market in order to increase sale growth over the 12 month period. Carnival is well known for its Fun for All and All for Fun image but that image has often been overlooked by the older market, interpretating Carnival to as being more of a `young adult party environment, when in reality, Carnival has just as much to offer to older adults, families and couples as its leading competitors but for a lower price.

Reach/Frequency Objectives
NH Agency recommends using both national and spot advertising for this media plan. We will use national advertising continuous throughout the 12 year plan but will advertise more heavily during the months leading up to the cruising wave season, the period between January 1st and March 31st when cruise lines and their travel agent partners showcase the full scope and variety of cruise vacations through exceptional special offers. This season typically generates the highest sales volume of any time of the year. According to MLIA, cruisers typically book 5-7 months in advance before a cruises high season, the time of the year that is most favorable for a vacation, usually the warmer late spring and summer months. Because of this, October through December will be the heaviest portion of this campaign and we will include a reach goal

of 80% and a frequency goal of 4. The first two months of the wave season, January and February will have a reach goal of 70% and a freq goal of 3. These months mark the beginning of wave season, in which people are beginning to book cruises. Spot advertising will be heaviest during the planning months prior to wave season with the heaviest advertising months being October, November and December. During these months the reach goal is 80 and the frequency goal is 5. January and February, similar to the national advertising, will have a reach goal of 70 and frequency goal of 3. March to September will have no spot advertising because these months are typically the high cruise season in which the most cruisers are on cruises (not booking them) and last minute cruises are much more expensive. Vacationers normally dont book cruises during these months. National advertising will continue throughout the year. These particular reach and frequency numbers were chosen based around the most popular times of the year in which people tend to book cruises. The wave season, as mentioned above, is Carnivals busiest time of year for selling cruises, thus the best chance to increase the most revenue. The months of October, November and December will include the highest reach and frequency goals because it is important to advertise as much as possible to the audience to make them aware of the upcoming wave season to attain their interest and to promote purchase. The months of January and February, are the beginning and middle of the wave season, the busiest time to book cruises because of the reduced priceswhich is what the prior months have been advertising for.These months will have a lower reach and frequency compared to Oct Nov Dec but higher than the remaining months. The remaining months which will have a consistent continuous national advertising will remind consumers throughout the year of CCL and will interest them into booking cruises with CCL in the future.

Media 1: Television This media will be attained through the implementation of network and spot T.V advertising slots. We will implement a combination of Net-TV Daytime and Net TV Prime slots throughout the 12 month period. These two slots are the most sufficient because these are the most popular time slots within our target segment. We will also implement light Net Cable Prime slots during the slower months. This will increase reach and frequency amongst the desired CCL market because of the adaptive visuals and sounds TV has to offer. We will implement heavy Net TV slots in order to maintain awareness throughout the 12 month period as well as familiarize the CCL brand with current and potential cruisers. Media 2: Magazine This media will be attained through the implementation of full page full color 10mm magazine advertisements. These advertisements will be placed within magazines that are desirable for our market segment of adults 35-44. These full color magazine ads will catch the market segments attention and is a good medium to implement an increase in reach especially over a longer

amount of time. This medium will be beneficial for the slower months in which customers are booking cruises. Media 3: Radio This media will be attained through the implementation of network and spot radio advertising slots. We will implement a combination of Net and Spot Radio Daytime throughout the 12 month period. This is the most efficient radio time slot amongst our desired target segment. Because radio is a great frequency builder, this medium will be successful in reaching out the customers throughout the year and reminding them of the CCL brand. Media 4: Internet This media will be attained through the implementation of Internet- Keyword Search buys and Internet Targeted Search buys. These types of buys will be most efficient in targeting our desired reach and frequency within our market segment. These types of buys will be beneficial when potential cruisers are looking online for booking cruises and reaching current cruisers interest. Internet is currently one of the most popular mediums amongst our desired market so it is important to advertise this medium heavily to reach the largest amount of people.

Media Budget Objective This media budget will be spent in geographic areas with the highest levels of sales. According to a recent 2010 CLIA report, the states producing the most cruise passengers are Florida, California, Texas, Massachusetts, New York, Pennsylvania, New Jersey, Illinois, Arizona and Georgia. The spot portion of this campaign will be directed heavily towards these regions where sales will be greatest. We will advertise to 55 markets making up 50.11% of the U.S population. Our budget will primarily be directed towards our national advertising. We will use 90% of our budget towards national advertising and 10% of our budget to spot advertising. NHs Agency recommends this because it is important to have consistent, national advertising in order for people to be aware stay interested in the brand. We want to reach potential cruisers as well as current cruisers that fit into the current target segment (aged 35-44). Carnival has had some bad publicity within the last few years and it is important to advertise not only to the states that have produced the most cruise passengers, but also to the remaining states This will also be an efficient budget because we are only buying spot advertisements during the months leading up to the cruise wave season and the first two months of the year, the beginning of wave season. This will be a cost effective way to create awareness to the heavy buying states as well as form buying patterns nationally. By doing so, CCL can reestablish its brand image nationally and gain customer loyalty through both current cruisers and potential cruisers. Also, because we will not be including spot advertising throughout every month within the 12 month period, it would be unnecessary to spend more of the budge to advertising that is only being shown 5 months out of the year. Total Budget: $66,400,000 Total MFP Budget: $65,751,400

Heavy Months: October, November, December Media used: Network TV- 30 sec Network Radio- 30 sec Magazine- full color, full page Internet 10mm Spot TV- 30sec Spot radio- 30 sec

Geography Objective The media buys for this brand will be national in scope, plus heavy-up spot scheduling in the top 55 markets that will produce the highest sales throughout the 2013 campaign. According to a recent CLIA report, the states producing the most cruise passengers are Florida, California, Texas, Massachusetts, New York, Pennsylvania, New Jersey, Illinois, Arizona and Georgia. These states will be our primary geography focus when including our spot advertising.

Scheduling Objective This media plan will implement a combination of a continuity and pulsing pattern schedule. Net TV Prime & Daytime and Net Radio Daytime flights will be scheduled continuous throughout the 12 month period and will be more advertised more heavily during the first two months of the 4th Quarter, before the cruise wave season. The months of October-February will employ heavy Internet advertising, specifically Keyword search and Target Search in order to gain attention to the wave season. The two months in the first quarter will employ a combination of Net TV Prime, Net Radio Daytime and Internet buys. The remaining months, or the cruise high season in which people dont typically book cruises (March-September) will employ heavier Net TV Daytime Net Cable Prime, light Net Radio Daytime and Magazine-General Interest buys. This is so the customer remains aware and interested in CCL until the next wave season. During these months radio will run only in day parts. The only months that will receive Spot advertising are October, November, December, January and February. These are the months prior to wave season and the beginning of wave season. We will advertise to our top spot markets (as mentioned above). For the months in the fourth quarter, we will employ light Spot TV-Prime slots and heavier Spot-Radio Daytime spots. As for the months at the beginning of the 1st quarter, we will employ Spot TV Prime slots.

Scheduling Rationale & Strategy It is important to include heavier buys during the months leading up to the wave season, so people gain awareness and interest before the season begins. Because of that, this plan will heavily employ medias that will increase a heavier reach and frequency. Mediums with good

visuals and sound that will easily attract the consumer, something that will help create awareness and reestablish the CCL brand image. This is why we chose to heavily spot Net Cable and Net Radio. The transition months are typically the time of year when people make last minute decisions and book last minute vacations. This is not as popular of a season as the months leading up to the wave season, but it employs heavier mediums than the reaming summer and fall months. These transition months will employ magazine buys. This medium is successful in gaining a reach over a longer amount of time which will be helpful throughout the 5 month period where people dont typically tend to book cruises. These months will also employ Net TV slots which will be advertised during day and prime time as well as Net Radio buys which will run only in day parts. These two mediums will allow a consistent frequency towards the market segment throughout the season leading up to the next wave season. As for the remaining low booking season, it is important to have consistent national advertising spots to keep the brand aware in the consumers mind. This is especially important for CCLs opportunity to reestablish its exclusive brand image within the market. We will employ light Net Cable slots continuous throughout the these off booking months (February, March, April,May,June,July,August) as well as employ heavier Net daytime Radio slots (:30). We will also employ Keyword search and Targeted Sites Internet Buys. By doing so, we will gain a steady reach and frequency throughout this season and gain popularity and awareness in time for the months leading up to the wave season in January. This media plan will begin on October 1st. This is one of the heaviest months that will be advertised, leading up to the cruise wave season which begins January 1st. By beginning in October, CCL can heavily advertise both nationally and spot towards the desired target segment, establishing themselves within the community in order to increase sales and increase traffic in time for the peak Wave Season.

Bibliography 1. http://carnival-news.com/2011/12/14/37-years-of-fun-a-history-of-carnival-cruise-lines2/ 2. http://www.cruisemarketwatch.com/market-share/ 3. http://www.cruising.org/vacation/news/press_releases/2011/08/clia%E2%80%99s-2011cruise-market-profile-study-reports-positive-consumer 4. http://www.researchandmarkets.com/reports/1206297/analysis_of_global_cruise_market