Embattled Cruise Line Carnival Launches Media Agency Review

[catlover79]

http://adage.com/article/agency-news...review/241751/

After String of Mishaps, Company Looks Beyond Havas Media
By: Alexandra Bruell
Published: May 30, 2013

Carnival has begun a media agency review as it attempts to reinvigorate its business after more than a year of mishaps.

The review comes about year-and-a-half after a Carnival-owned Costa Cruise ship crashed on the coast of Italy and killed 32 people. Following that incident was the company's notorious "poop cruise," in which an engine fire stranded the flagship Carnival line's Triumph ship off the coast of Alabama and left passengers with a limited supply of food, water and plumbing for days.

Adding to the troubles, cruising as an entire category has been pummeled with a string of unfortunate incidents, such as a recent fire aboard a ship owned by competitor Royal Caribbean, among other examples.

According to people familiar with the matter, Carnival this week sent a document inviting pitches to a number of large media shops, as part of which it referenced the negative publicity it has experienced as a result of its crises.

Incumbent Havas Media, which didn't immediately respond to a request for comment, was not invited to defend the business. Havas Media -- formerly known as MPG -- and sister agency Arnold won the media and creative business in 2008.

"Carnival Cruise Lines is currently conducting a review of its media buying and planning agency resources," said the company in a statement, noting that it "has not conducted a review in several years and is currently seeking a media buying and planning agency capable of effectively building and managing integrated plans across both traditional and digital media." The pitch is being handled by Select Resources International, and the company’s lead creative agency, Arnold Worldwide in Boston, is not under review.

A big challenge for a new media shop will be to help positive brand stories about Carnival surface in more media channels, both online and offline.

Usually at times of crisis brands pump more dollars into advertising to help counteract negative press. But rather than support its flagship cruise brand amid its problems, Carnival has cut back on measured media. In 2012, the company spent $66 million on measured media in the U.S. across all of its brands. It devoted about $22 million to marketing its Carnival Cruise Lines brand. In 2011, it spent roughly the same total amount devoted significantly more, $39 million, on its flagship line. Neither year compares to 2010, when it spent $106 million in domestic measured media, with $66 million devoted to marketing the flagship.

Carnival has, however, been very active on social media as part of its crisis communications strategy in order to address criticisms about the safety of its ships.

The company owns a portfolio of cruise brands including its Carnival line, Holland America, Princess Cruises, Seabourn, P&O Cruises, Cunard, Costa Cruises, Aida and Iberocruceros.

In its most recent earnings documents, Carnival Corp. reported that revenue was flat, but it saw a $24 million decrease in cruise passenger ticket revenues compared to the same period the year before. The company also derives revenue from onboard spending of passengers, from gambling and liquor, for example. But it claimed the dip it saw wasn't from less passengers booking, but a drop in prices. "This decrease was caused by a decrease in cruise ticket pricing" the report stated.

[Vahan]

[catlover79]

[AB]

Originally Posted by catlover79

http://adage.com/article/agency-news...review/241751/

After String of Mishaps, Company Looks Beyond Havas Media
By: Alexandra Bruell
Published: May 30, 2013

Carnival has begun a media agency review as it attempts to reinvigorate its business after more than a year of mishaps.

The review comes about year-and-a-half after a Carnival-owned Costa Cruise ship crashed on the coast of Italy and killed 32 people. Following that incident was the company's notorious "poop cruise," in which an engine fire stranded the flagship Carnival line's Triumph ship off the coast of Alabama and left passengers with a limited supply of food, water and plumbing for days.

Adding to the troubles, cruising as an entire category has been pummeled with a string of unfortunate incidents, such as a recent fire aboard a ship owned by competitor Royal Caribbean, among other examples.

According to people familiar with the matter, Carnival this week sent a document inviting pitches to a number of large media shops, as part of which it referenced the negative publicity it has experienced as a result of its crises.

Incumbent Havas Media, which didn't immediately respond to a request for comment, was not invited to defend the business. Havas Media -- formerly known as MPG -- and sister agency Arnold won the media and creative business in 2008.

"Carnival Cruise Lines is currently conducting a review of its media buying and planning agency resources," said the company in a statement, noting that it "has not conducted a review in several years and is currently seeking a media buying and planning agency capable of effectively building and managing integrated plans across both traditional and digital media." The pitch is being handled by Select Resources International, and the company’s lead creative agency, Arnold Worldwide in Boston, is not under review.

A big challenge for a new media shop will be to help positive brand stories about Carnival surface in more media channels, both online and offline.

Usually at times of crisis brands pump more dollars into advertising to help counteract negative press. But rather than support its flagship cruise brand amid its problems, Carnival has cut back on measured media. In 2012, the company spent $66 million on measured media in the U.S. across all of its brands. It devoted about $22 million to marketing its Carnival Cruise Lines brand. In 2011, it spent roughly the same total amount devoted significantly more, $39 million, on its flagship line. Neither year compares to 2010, when it spent $106 million in domestic measured media, with $66 million devoted to marketing the flagship.

Carnival has, however, been very active on social media as part of its crisis communications strategy in order to address criticisms about the safety of its ships.

The company owns a portfolio of cruise brands including its Carnival line, Holland America, Princess Cruises, Seabourn, P&O Cruises, Cunard, Costa Cruises, Aida and Iberocruceros.

In its most recent earnings documents, Carnival Corp. reported that revenue was flat, but it saw a $24 million decrease in cruise passenger ticket revenues compared to the same period the year before. The company also derives revenue from onboard spending of passengers, from gambling and liquor, for example. But it claimed the dip it saw wasn't from less passengers booking, but a drop in prices. "This decrease was caused by a decrease in cruise ticket pricing" the report stated.

Instead of spending so much money on advertising, maybe they should spend it on fixing their cruise ships.

[OH Nuts!]

Ugh! You couldn't pay me enough money to step foot on a Carnival Cruise. Never been a big cruise person to begin with. Three to four hours on any water craft is plenty for me!

[catlover79]

Originally Posted by AB

Instead of spending so much money on advertising, maybe they should spend it on fixing their cruise ships.

See, you put a lot more thought into this than Carnival did!!!!

[catlover79]

Originally Posted by OH Nuts!

Ugh! You couldn't pay me enough money to step foot on a Carnival Cruise. Never been a big cruise person to begin with. Three to four hours on any water craft is plenty for me!

That makes two of us, Rich!!! I'll take a paddleboat ride, but that's enough for me.

[KurtfromPitts]

Didn't Kathie Lee Gifford pitch Carnival some years ago?

[catlover79]

She sure did!! Observe:

[Vahan]

One YouTuber pointed out that the cruise line used to not have so many problems back then. So I guess the problems started recently (probably as early as the 2012 disaster).

[catlover79]

No, their problems don't go quite so far back as those commercials, but began well before 2012. Here are some examples:

http://en.wikipedia.org/wiki/Carniva..._and_incidents

On the afternoon of July 20, 1998, MS Ecstasy departed the Port of Miami, Florida, when a fire started in the main laundry room shortly after 17:00. As the Ecstasy attempted to reach an anchorage north of the Miami sea buoy, the vessel lost propulsion power and steering and began to drift.

On September 19, 1999, the Carnival Tropicale's engine room caught fire en route from Cozumel to Tampa. While disabled in the Gulf of Mexico, the ship was struck by Tropical Storm Harvey. No crew or guests were injured during the two days the Tropicale spent without propulsion.[19] The ship was later sold and renamed the Ocean Dream.

On November 8, 2010, a fire broke out in the generator room of the Carnival Splendor and the ship lost most power. The ship was adrift off the west coast of Mexico. The ship was towed to San Diego.[20]

On February 10, 2013, the Carnival Triumph, with 3,143 passengers aboard, suffered an engine room fire, leaving the ship adrift for four days in the Gulf of Mexico.[21] The ship was towed to Mobile, Alabama, docking on the evening of February 14.[22][23]

On March 14, 2013, the Carnival Dream experienced an emergency generator failure while docked in port at Philipsburg, St. Maarten. The ship was scheduled to leave port around 5 p.m. ET the day before. The United States Coast Guard said they were notified by Carnival that the Dream was experiencing emergency generator problems. Carnival announced that the passengers would be flown back to Florida rather than completing their scheduled voyage.[24]

On the morning of March 15, 2013, the Carnival Legend suffered a mechanical problem with one propulsion pod while at sea. The cruise line cancelled the Legend's scheduled stops in Belize and Grand Cayman, and the ship returned to Tampa, FL at a reduced speed of 19 knots (14 mph) (Legend has a regular cruising speed of 24 knots).[25][26][27]

http://en.wikipedia.org/wiki/Costa_C..._and_incidents

Costa Concordia sinking [edit]

Main article: Costa Concordia disaster

On January 13, 2012, the Costa Concordia, operated by Costa Cruises (Carnival subsidiary), ran aground off Isola del Giglio, Tuscany. The ship capsized and partially sank, killing 32 people.

Costa Allegra engine room fire, ship adrift [edit]

Main article: Costa Allegra 2012 fire

In March 2012, the Costa Allegra, owned by Carnival Cruise Lines' Costa Cruises subsidiary, suffered an engine room fire and went adrift in the Indian Ocean. After several days adrift without power, the ship was towed to the Seychelles island of Desroches but was unable to dock there. It was then towed to Mahé, Seychelles, where the passengers disembarked. No casualties were reported.[6]

[PZelda]

The only thing I'll cruise on is the Staten Island ferry!!

[Ohio8]

Sludge. Disgusting and eww.

[catlover79]

Originally Posted by Ohio8

Sludge. Disgusting and eww.

*singing* "The Sluuuuuuuuuuuuuuuuuuuudge Boat!! Soon we'll be making another runs, ahem, run..."

[The Flying Dutchmans]

I know people who have taken Disney cruises and never heard a bad thing about them. I also have spoke with people who have cruised on the Queen Mary 2 and have great things to say about their experience. I think this is mostly a problem with Carnival, and although carnival does own "Cunard" who built the QM2, I think it's a different division than the one that runs the Carnival ships themselves. I remember reading stories back in the late 90s about people getting sick from the food on Carnival ships. All it is, is greedy CEO's caring more for their pocketbook then for human safety.