Crystal Cruise-Brand Analysis

LXFM 730 Marketing Strategies for Luxury Brands and Experiences

Investigate the future of brand building in Luxury PROFESSOR ALESSANDRO CANNATA

| Wei Liu, Li Hsuan Tsai, An Chen Tsai, Wesley Wu |

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MARKETING STRATEGIES FOR CRYSTAL CRUISE

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Table of Contents COMPANY SUMMARY AND BRAND BUILDING In-depth company’s historical review PEST Analysis Current status What is your company’s current (existing or new) mission statement?

SWOT analysis Analyze your brand identity using the matrix (Aaker) , and the Prism (Kapferer) Analyze your brand equity using Keller’s “pyramid.”

Analyze the Brand Strategy identifying the presence and characteristics of the following: - What is the unique revelation?

- What is the belief system?

- What are the brand rituals?

- What is the distinctive Lexicon?

FUTURE TARGET CUSTOMERS 4 6 8 8 10 12

a. Demographic information - Gender, age, income, education etc. (stats) b. Lifestyle/psychographic information– leisure activities, interests, relevant opinions and beliefs etc. c. Behavioral information (specific technology usage, media consumed, shopping habits, etc.) d. Application of Cannata’s VARIABLES FOR LUXURY CONSUMERS

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12 FUTURE BRAND BUILDING STRATEGY 14

a. Goals and objectives

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b. Strategy overview

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c. Unique selling proposition (usp)

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d. Luxury Ingredients development/evolution using the Cannata’s diamond :

MARKET ANALYSIS

I. Purpose

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a. Market overview

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II. Product

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b. The size of the market

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III. Pricing

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c. Growth potential and opportunities

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IV. Placement

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d. Competitive landscape

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V. Promotion

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e. Core competencies, competitive advantages

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VI. People

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f. Key success factors

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g. Future trends: how will they re-shape b,c,d,e and f? (you can also use comparison charts)

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EXECUTIVE SUMMARY, CONCLUSION

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COMPANY SUMMARY

Crystal Cruises was founded in 1988, Crystal has known its expressed commitment to a superior standard of excellence and level of service within the luxury hospitality industry. Named by Conde Nast Traveler for twenty-one consecutive years and by Travel+Leisure magazine for twenty consecutive years as the world’s best luxury cruise line. The Crystal reputation for luxury and service excellence has been built on its revolutionized luxury travel at sea with the launch of the first ocean ship, three prime assets, the Crystal Harmony, which was retired in 2005, the Crystal Symphony (51,044 GT) and the Crystal Serenity (68,870 GT) are still in the service, and have been through several times of reconstructions in order to provide superior service to its customers.Crystal Cruises was originally owned by a Japanese company-Nippon Yusen Kabushiki Kaisha which is one

Nevertheless, Nippon Yusen Kabushiki Kaisha ran into financial difficulties and was unable to fund

of the oldest and largest shipping companies in the world.

Crystal’s growth. Crystal Cruises was sold to Genting Hong Kong for 550 million dollars. Edie Rodriguez, a

What really made Crystal Cruises stood out from its competitors was their emphasis on Innovation and service.

thirty-four veteran of the travel industry and had been in senior management positions at luxury brands

In 1996, they launched the highly acclaimed Wine & Food Festival@Sea program, allowing their guests to

Cunard, Seabourn and Azamara previously, became President and CEO in October 2013 and was ready to

mingle with the world’s epicurean elite. Offered on numerous voyages throughout the year, the itineraries unite

take the company to the next level. Shad made it clear to the NYK chairman who hired her and again to the

celebrity chefs, with leading wine experts from legendary vintners and renowned restaurants on the ship. A year

Genting Hong Kong chairman that Crystal had to grow or it would perish. Rodriguez lobbied hard for its

after, Crystal Cruises had its first cruise line to truly invest in technology services for the guests with the launch of

sale. She played a key role in finding a new owner who was willing to pay a premium price for a premium

the Computer University@Sea in 1997, an innovative program that is unmatched even today. In 2009, debuted

brand and had the resources to grow it as well. Rodriguez found it in Genting, the gaming giant with

the Crystal Cruises Experiences of DiscoveryÂŽ voyages, an inspired collection of theme cruises designed to

holdings in Star Cruises, Norwegian Cruise Lines and Resorts World Bimini, The chairman agreed and

enrich dozens of itineraries each year with a special-interest focus. Showcasing topics such as Photography;

promised her “seven ships for seven seas� and challenged her to develop other luxury venues such as

Ancient Civilizations; Chance & Fortune; Mind, Body & Spirit; Jazz; Golf; Film & Theatre Festival; Cabaret at

yacht and river cruises. Since then, Genting Hong Kong and CEO Edie Rodriguez had a grander goal: To

Sea; Big Band; Ballroom Dance and of course our Wine & Food Festival cruises.

build the world’s premier hospitality portfolio – on land and sea and in the air.

Throughout the venture, Crystal maintains its stated dedication to offering a superior standard of personalized

By sea, river, land, and air, Crystal has redefined the way the world views luxury travel. The very

service and attention to each luxurious detail across all of the brands, with the acclaimed butler service offered

first Northwest Passage Luxury ship sail in 2015. Following with the celebrating 27 years of excellence,

with nearly all experiences. Along with adventures and access not available anywhere else and more choices

Crystal Cruises is the World’s Most Awarded Luxury Cruise Line. The Crystal experiences include Crystal

available to guests seeking to customize their luxury vacations, Crystal’s service, space, and amenities have

Cruises, Crystal Yacht Expedition Cruises, Crystal Luxury Air, Crystal River Cruises – The World’s Most

shaped the company’s credo over the decades.

Luxurious River Cruise Line – Crystal AirCruises.

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PEST Analysis

In the late 80s, Japan experienced the “bubble

In 1980, according to economic growth, people were

As for cruises’ innovation, we can view in many

Cruise in 1988. In 70s and 80s, Japan became

economy�, which was driven by stock and real

very positive about their future. Especially, people

different aspects. Firstly, the improvement of stabiliz-

super economic power in the world due to their

estate prices soared to highest peak ever. In 70s

really enjoyed luxury products and services. Howev-

ers and bow thruster can reduce customers’ seasick-

high-technology products. In 80s, Japan started to

and 80s, the auto industry developed light and

er, after the bubble economy, people changed their

ness. Furthermore, modern cruises provide multiple

use their economic power to evaluate their political

economic models, which expand auto industry into

attitudes toward investment and consuming. As a

activities such as surfing waving machine. In the late

status. Since 80s, the strategic position of the

world’s market. After second oil crisis, Japan

result, middle class gradually disappeared in the

80s, due to the improvement of technologies, cruise

ocean improving, Japan started to understand the

transformed from heavy industry into high-tech

Japan’s society. However, social problems are

company started to provide bigger ship in their fleet.

importance of ocean resources, which can bring

industry such as semiconductors In the 80s, the

long-term issues, which should be observed in a

both economic and political interests.

strong exports supported the growth economy of

long period. Young generation become the weakest

the Japan. Due to the trade deficit between United

group in the Japan’s society. According to the

In the 80s, the art and design were more about

States and Japan, the Yen appreciated value

Japanese Cabinet Office’s “National Life Survey�,

trickle-up mode. Due to the technology improvement,

sharply increased. Furthermore, due to the govern-

young generation considers that they belong to the

people started to receive a bunch of information and

ment’s policy, enterprises increased the invest-

lower class increasing 13.3 percent in the past ten

express their personal values through their outfit. In

ment. The bubble economy brought prices up to

year. The researcher points out that young genera-

the other word, the aesthetic of Japan in 80s was

two times than the past. In 1991, estate prices and

tion loves PC, pager and Play station. They love to

very prosperous. As for design, in the 80s, Japanese

stock market started to collapse, which was driven

communicate with others through the technologies.

industry flourished to unprecedented scenario. The

by the financial tightening policy. After the bubble

In a long term, this generation will lower the compet-

economic growth also transferred design from

economy, Japanese economy has declined for a

itiveness of Japan’s economy and inspire many

consuming products to industrial products. The

decade.

social problems.

matured society also supported the power of designs

Nippon Yusen Kaisha founded Crystal

and industrial progress.

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Crystal Cruise is a luxury cruise line based in Los Angles. In 2015, its former owner “Nippon Yusen Kaisha� sold the ownership to the Genting Hong Kong, which is the owner of Star Cruise and main shareholder of Norwegain Cruise.

Today, Crystal Cruise’s goal is to provide luxury-traveling experiences to their customers. After acquisition, GHK announced to redefine luxury travel by sea, air and land. Crystal Cruises is the World’s Most Awarded Luxury Cruise Line, having earned “World’s Best Cruise Shipâ€? in CondĂŠ Nast Traveler’s Reader Choice Awards for 23 years; been voted “World’s Best Large Ship Cruise Lineâ€? by Travel + Leisure readers for 20 years; and the “Best Luxury Cruise Lineâ€? by travel professional organization Virtuoso for three consecutive years (2014, 2015 & 2016) (Crystal Cruise,

Until the end of 2017, Crystal River Cruises has launched four different ships, sailing in Rhine and Moselle

2017). Today, Crystal Cruise is featuring five major services including Crystal Cruise, Crystal Yacht Expedition Cruise,

rivers. In order to provide better service, Crystal River Cruises not only provides luxury living and dining

Crystal River Cruise and Crystal Luxury Air.

experience but also exclusive shore-side events such as visiting historical landmark and musical performances.

As for Crystal Cruise, Crystal Symphony and Crystal Serenity are the two major ships of the cruises. Crystal Serenity was 68,870 tons, passenger capacity of 1,070 guests, maiden voyage in 2003; Crystal Symphony was 51,044 tons, passenger capacity of 922 guests, 1995 first voyag and fully refurbished in 2009. The capacity of these

As a result, Crystal River Cruise was awarded as the “ World Best River Cruise line� by Travel +Leisure in 2017.

Last but not least, in order to get rid of water restrictions, Crystal Cruise launched their newest service “

two ships is much fewer than ships of similar sizes in order to provide better services for customers. Furthermore,

Air Cruises�. With the Boeing 777-200ER, they can provide customers large and comfort private space. The Air

Crystal Cruise will launch three brand new Crystal Exclusive liners, which are classified as Arctic ice-breaking cruise

Cruise will focus on the customers who want to see the world but have very limited time. However, the market

ships by the end of the 2018.

of luxury air travel is very small. As a result, the marketing and distribution strategy is extraordinarily important

Secondly, Crystal Cruise launched their first Yacht Cruises in 2015. In addition to regular Crystal Cruise’s luxury services, the features of Yacht Cruise are their underwater experiences including snorkeling, kayaking, fishing and

to reach their customers.

Today, Crystal Cruise keeps expanding their fleet and services to meet luxury customers’ needs. In 2016,

Esprit’s two-passenger submarine (Cruise Web, 2015). This cruise is to attract both luxury customers and customers

their revenue has grown 39.1 percent to $908 millions and is predicted to have stable growth in the next few

with adventure spirit.

years. In the future, Crystal Cruise needs to use their existing advantages and discover potential markets to develop their Red Ocean strategy.

What is your company’s current (existing or new) mission statement?

Since September 15, 2017, Tom Wolber became the new CEO of Crystal Cruise. He states that In 2017 and 2018, the crystal cruises will receive four river vessels, and in 2019 they will receive the first ship from the Endeavor class expedition yacht (ship type shipyard) fleet. Therefore, for crystal cruises, Tom Wolber is an indispensable power. He will also lead the design of a new Exclusive class ship. From his speech, we know that Crystal Cruise will continue to provide a unique luxury experience for the loyal guests of crystal and the new passengers. Let them expand their horizons with the crystal and feel the world in a new way. And crystal cruises will move into new areas and continue to lead the top luxury tourism trend. we believe that the crystal cruises fleet expansion will take passengers around the world, explore the boundless universe.

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SWOT Analysis

• High Reputation-The most awarded cruise brand Crystal and its brand experiences have been awarded many top industry accolades, winning "World's Best" recognition from conde nast travelers number of years 22 times. • Cutting-edge innovation • Broad service offerings stateroom or suite, Spa, gym, mini golf, restaurant, Bar and lounge, casino, Theater: broadway to Hollywood • Product line diversified operations It has ocean cruises, river cruises, yachts, airs, • Customer loyalty

 • High capital investment In order to offer innovative technology and amentily • Long time of Research & Development • High cost of the human resource (In order to achieve high staff-to-guest ratio and staff friendly environment)

� • Rise of Asia market • The Growth of international tourism industry • The rise of luxury cruise market • Increasing awareness of the environmental issues

• Intense competition Crystal Cruise has 3 different levels of competition: luxury ocean cruises, river cruises and land-based luxury hotels. • Oil price • Reduction of the natural landscape • Terrorist threats to foreign vacation destination

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BRAND IDENTITY Â? Â?( Â )

MARKETING STRATEGIES FOR CRYSTAL CRUISE

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The main key words for Crystal Cruises are luxury and elegance. The essential feeling was to create a logo which amplified beauty and to combine this with the elements of the sea, which were to be equally as important.

In 1988 a logo was final chosen, of which has since become one of the cruise industry’s most unique and striking logos. The clean and simple design included two symmetrical facing seahorses, those mythical, legendary and stately servants of sea gods Neptune and Poseidon. Adding the royal touch of a five-pointed crown suggested Crystal’s rise to regal status in the cruise industry, one which the line achieved almost instantly after the launch of the Crystal Harmony in 1990.

Through its uncompromising focus on classic service, abundant space, extensive choices and quality, Crystal Cruises has redefined the luxury vacation. As a result, it has become the benchmark against which guests and

Crystal Cruises: A Mission of Excellence The commitment that Crystal Cruise provides is the excellent service to its customers, the guests and travel professionals who book and support their product. In meeting their needs, every service that they provide must be of the highest quality and integrity – whether it is shipboard or shore side. Seeking for improvement and innovation are what

travel professionals now measure all other cruise lines.

BRAND EQUITY Â? ' '

strive for reduction of their costs in order to maintain reasonable fares, thereby enhancing the value of our service to customers. Crystal Cruises is concerned about our staff. Each employee is regarded as an individual whose dignity is respected and merit is recognized. All employees should feel free to make suggestions and comments in a reasonable manner. Crystal Cruises provides equal opportunity for development and advancement for those qualified. “hire for the personality and train for the job.� Crystal Cruises is committed to providing competent management. Furthermore, their ultimate responsibility is to our parent company and their stockholders. Our business must make a sound profit.

(Â? Â )

Looking ahead, Crystal continues to define the luxury travel experience among other leading luxury lines as well as renowned hotels and resorts around the world. The record-breaking two decades as the World’s Best is unmatched among cruise lines, hotels and resorts, keeping Crystal Cruises in a class by itself. One simple goal for Crystal Curies is to provide its guests with the finest travel experience available in the luxury service business, not just the luxury cruise industry.

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BRAND STRATEGY

- What is the unique revelation?

- What is the belief system?

€ ‚ ­ ƒ „

­

Crystal Cruise focuses on offering the most luxurious service and equipment, which is their unique

Crystal Cruise promises that treats their employees friendly. As a result, it would not be a sweatshop. All

revelation. They have accomplished numerous groundbreaking achievements. Crystal Cruise

genders employees are respected and offered a clean, safe and easy-communicated work environment.

launched the first ocean ship, Crystal Harmony. It launched of computer university at sea, which is

The other point of fair trade is Crystal Cruise keeps their suppliers and distributors earn fair profit. They care

the first cruise offers the Internet and computer equipment for customers. Currently, it still is the only

all of their stakeholders including their stockholders and parent company.

luxury product sailing on the rivers in Europe. Furthermore, Crystal Cruise is the world’s most awarded luxury cruise line.

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- What is the distinctive Lexicon?

- What are the brand rituals? € The guests of Crystal Cruise feel free to enjoy their amenities and services. However, the clients must follow dress code at some public space, such as their dining room. It forms a brand ritual for Crystal Cruise. During the day time, swimsuits, cover-ups, robes and baseball hats are not appropriate at the dining rooms. If they need meal service without changing attires, they can order meals at outdoor space. After 6 pm, clients cannot wear shorts, caps at the dining rooms. For men, they must have a jacket at least.

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The other brand ritual is Crystal key, which is the series of codes for protecting clients’ personal information and identifying passengers accurately. For example, when passengers make appointment for a dinner, spa service, or share the experience in order to earn the bonus. They need to enter their crystal key. In the other words, it is passenger’s ID numbers. However, instead of directly saying ID numbers, Crystal Cruise calls it “Crystal key� in order to create the privilege ambience.

„ �

Crystal Cruise names the cruise of the river lines, which are exclusive in Europe, based on the great European musicians in order to praise their achievements and enhance the cultural values in Europe. This pattern form the distinctive Lexicon for Crystal Cruise. The name of the river cruise associated with the musician such as Crystal Mozart, Crystal Bach, Crystal Debussy, Crystal Mahler, and Crystal Ravel.

The destinations of Crystal River routes feature on visiting the masters’ landmark, statues, and performances of the symphonies and concertos to shape European culture centuries ago.

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MARKET ANALYSIS Â… Â? Â

Crystal Cruise belongs travel industry. According to Statista, from 2000 to

Regarding the average budget of international tourist on vacation

In terms of the luxury destinations, all of the top ten largest growth in

2016, the revenue of global international tourism averagely went up from

travel in 2017, Chinese and American are top two tourists group

travel destinations they are all famous of their natural resources and

US$475 billion to US$1,220 billion . Although in 2009 slightly went down to

have the most budgets, which means they are ready for the luxury

beautiful landscapes. Three out of ten countries are in Africa. As a

US $851 billion due to global recession, it bounced back immediately in the

good and service. Therefore, these two countries should be the

result, the locations with rich natural resources are developing as the

following year and raised up steadily for the following 7 years, which means

target market for Crystal Cruise.

one of the future luxury travel destinations.

the whole industry is having more potentials to grow.

†… ‡   In terms of the cruise industry worldwide for the past 10 years. From 2009 to 2018, the number of passengers in the cruise industry had steadily grown up from 17.8 million to 27.2 million. This upward trend is expected to rise for following years. The overall cruise market is optimistic.

Regarding the revenue of the cruise industry, the same as the number of the passengers, the revenue has been steadily growing up from US$23.3 billion in 2007 to US$37.8 billion in 37.8 , and it is expected to keep growing to reach US$57 billion for the fowling ten years.

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… „ The global cruise industry will continue to see steady growth in 2018 with more two dozen deliveries scheduled in order to keep pace with demand, the Cruise Lines International Association (CLIA) said in its annual ‘State of the Cruise Industry’ report released this week. Industry data reflects that the cruise industry’s significant growth over several years is not showing signs of slowing down. It represented an increase of 20.5 percent over five years from 2011-2016. According to Cruise Lines International Association, an organization that conducts continual industry analysis, there were 25.8 million people joined the cruise vocation in 2017. And project to have a rise with a projected 27.2 million passengers expected to set sail in 2018, which demonstrates not only the continued growth of the industry, but a commitment to further the industry’s growth from the cruise lines.

At country level, the fastest growing large Travel & Tourism countries are expected to be China, India, Thailand, and Indonesia. By 2027, China is expected to overtake the USA in terms of total Travel & Tourism GDP, domestic Travel & Tourism spending and investment. However, the USA is expected to remain on top in terms of direct Travel & Tourism GDP, visitor exports and business travel spending. Even Though Thailand and Indonesia are not listed on the top ten country on the charts, India is expected to establish itself as the fourth largest Travel & Tourism economy by 2027, both in terms of direct and total GDP, only behind China, the USA and Germany. Thailand is expected to continue its fast-paced growth and become the third largest market for visitor exports by 2027, taking over Spain which is expected to drop to fourth place. Other notable countries expected to move up the Travel & Tourism GDP

Therefore, we examine the reason why the cruise industry is growing. According to an interview from the president of Expedia, we have pulled out the main reasons for why the cruises industry is growing. The overall idea is that the new generations are join to cruise industry. Traditionally, the average customers of cruise vocation are 49 and those people who are either retired or going to the special occasions. However, nowadays, the cruise vacations appeal to the baby boomers and Gen X generation. The cruises become their number one choice of vocation plans. Not only the people late in their careers but also empty nesters. Moreover, the Millennials are joining the game too. They are cruising than ever before. Millennials were growing up with their parents going on the cruise, so now, as they all grown up, they start to purchase the cruise lines for their families and children. On the top of that, with the “ever-expanding “ itineraries and the variety of th destination experiences, it attracts more of the younger generation to embrace the cruise lines. Also, Multigenerational cruising is projected to increase in popularity. “Skip-generation� trips, with grandparents and grandchildren traveling together without their parents, are predicted to be highly popular in 2018 and beyond.

SOURCE: global-economic-impact-and-issues-2017 However, the growth in popularity of the emerging market needs to be accompanied by equivalent development of various other supporting segments of the industry, i.e, infrastructural investments in ports and elsewhere, so as to be able to welcome the inbound cruise ships and their passengers. Both China and ASEAN, the Association of Southeast Asian Nations, have put priority on developing cruise tourism with many port and cruise infrastructure projects being developed by the government, especially in China. With the actions of the governments that are taking, it indicates the strong growth future of the cruise industry.

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The indirect competitors of crystal cruises are Aerospace corporations like Gulfstream and Luxury resorts like Naladhu Maldives. Gulfstream is an aerospace corporation which manufactures luxurious transportation. Alternative for traveling to worldwide. It is an Indirect competitor especially for Crystal Aircruise. Another indirect competitor of Crystal Cruise is land-based luxury resorts, from the website conde nast travelers, the winner of the 2017 Readers' Choice Awards for luxury resorts is Naladhu Maldives. Naladhu Private Island Resort has been a favorite choice for travelers from all around the world for many years as it provides them with the luxury, exclusiv-

Crystal Cruises has three different levels of competition: luxury ocean cruises, river cruises and land-based luxury hotels. According to chart from Cruise Industry News, the major ocean cruise luxury market competition that are based in the U.S. are: Viking, Silversea, Regent Seven Seas and Seabourn.Viking Cruises is one of Crystal Cruises' top rivals, it has 540 more employees than Crystal Cruises. All their cabins have balconies, and they have larger accommodation than the industry average. With Nordic design theme, emphasizing natural woods, naturally lit spaces and contemporary decor. The ships' chefs also have created menus inspired by each cruise's region. Another competitor is Silversea, the most competitive factors are their Staff-to-guest ratio near 1:1, it has Small luxury ships and the largest numbers of destinations-900. Their target customers suits for Middle-age and older couples. Regent Seven Seas is one of the most inclusive of all the luxury lines. It has a relaxed, country club feel and the largest standard balcony sizes. Seabourn is the largest multiple-night cruise company. The features of Seabourn are award-winning dining and the finest luxury cruising vacations.

Unique access to more than 150 World Heritage Sites. Destinations throughout the world.

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Core competencies, competitive advantages

Crystal holds advantages over some of their competitors, one is diverse product lines from cruise, yacht, to jet. They provide travelers with all kinds of luxury travel, from rugged expedition adventures to indulgently relaxing river cruises, the aim is to cater to virtually every wish of the discerning modern traveler. Also, Crystal river cruise is the only exclusive luxury cruise in European rivers. With no doubt, the strong brand awareness, good reputation and customer loyalty are their key competitive advantages, Crystal and its brand experiences have been the most awarded luxury cruise. Also, They really focus on extraordinary customer service. Nobu Matsuhisa is a well-known star chef. He has been serving meals aboard Crystal ships since 2003 and trains all chefs, designs all menus and frequently visits Crystal ships for ongoing refinement. Crystal also offers a specialty dining experience known as Crystal’s Ultimate Vintage Room Dinners – a one-of-a-kind culinary experience designed for a minimum of 10 guests. Offered aboard Crystal Serenity and Crystal Symphony, these wine-and-dinner culinary events are priced at roughly $1,000 per person. Another factors is Unique experience - innovation. Such as in 2015, crystal cruises introduced Crystal Esprit, which even carries its own submarine. Customers could explore under the water. Crystal Cruises is the first one in cruise industry launching hypoallergenic staterooms. It also has SpeedNet accelerators that will double satellite speed, allowing for free, unlimited Wi-Fi and digital app featuring the ship’s daily newsletter and Newspaper Direct and access to bookings for spa appointments, Crystal Adventures shore excursions and more.

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MARKETING STRATEGIES FOR CRYSTAL CRUISE

 … �  Our research of Crystal Cruise has led us to identify five key success factors: Geographic diversification, Strong brand awareness, Good reputation, Personal service, Sustainability. First, our research proves that a cruise line must be able to capture growing global markets. With the United States market becoming saturated, markets developing in regions such as Asia, Europe, and Australia are essential for success. Also, a cruise line must be able to provide their customers with the newest onboard innovations in order to generate revenue. Crystal Cruise has strong brand awareness and good reputation, awarded over 20 years for its extraordinary customers services. Finally, for sustainability, "Crystal Clean" is Crystal Cruises' program of environmentally-friendly initiatives. It spreads the "Crystal Clean" message in staterooms and in public areas.

Crystal Cruises recognizes that our wonderful world is precious and fragile. Our commitment to developing plans for preventing pollution, complying with worldwide environmental regulations, and continually improving our environmental management system to minimize and reduce the environmental impact of operations is key to keeping “Crystal CleanŽ.

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FUTURE TREND The next evolution of experiential travel sees travelers taking a step further and seeking “transformational” experiences. From cultural immersion and voluntourism to extreme adventures, those returning from a cruise will have shift in perspective and a sense of accomplishment. Some upcoming cruise itineraries include the opportunity to indulge in local cuisine, guided tours through small villages and even visits inside private homes. Thrill-seekers can fill bucket lists with chances to swim with sharks in South Africa, ride a Harley Davidson in Alaska or mingle among penguins in the Arctic.

Also, the technology sharps the way how people travel. The “E-agent” is coming up in the future, Instead of tapping away at your computer to book flights and accommodations, Global Futurist Daniel Burrus tells Skyscanner that in the future, each of us may have an 'e-agent,' inside a watch or small piece of jewellery, that goes everywhere with us. It could have the face, voice and personality of our favourite actor or comedian and appear to use as a 3D hologram image, or inside a virtual environment, at our verbal command. Wearable technology on cruises interacts with sensors on the ship in order to do everything from turning the lights on as a cruiser approaches their cabin to acting as a security agent. The Biometric face recognition software which will incorporate a digital boarding pass as well. By scanning traveler’s face, the system will automatically record the data with the travel without any paperwork.

In the coming year there with be an even greater focus on sustainable tourism. Travelers can look forward participating in sustainable practices both onboard and off from recycling and waste management to popular voluntourism initiatives that focus on creating a positive environmental and social impact at destinations around the globe. Sustainability will be the main focus of the future travel guideline. According to researchers at the Future Laboratory and their new report, Sustainable Holiday Futures, giant airships, man-made mobile islands and intelligent hotel rooms will all be commonplace in the next 100 years. Sustainability will be an 'integral' part of every holiday as early as 2030, the report continues, with some claims that artificial islands may even produce their own food and water. This idea of zero-impact travel, in which resorts may look like cruise ships in the sky, will leave no environmental trace whatsoever.

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FUTURE TARGET CUSTOMERS €  Crystal Esprit attracts an international crowd. Travelers from the United States, Canada and the U.K. make up the greatest percentage, but the yacht also appeals to visitors from Germany, South Africa, Australia and Asia. Passengers of all ages, from 20-somethings traveling with their parents to retirees, have these characteristics in common: They're well-traveled, curious and recreationally active.

 ˆ Most of them were born in the wealthy families. They are usually aging from 40 to 50 and in charge of family business. Therefore, they belong to upper class of the society and have a good education level. Their annual incomes are over 300,000 dollars. They are mostly married and have children.

‰ : Most of them are millennial, which are from 25 to 35 years old. They worked in huge tech companies such as Facebook or Google. They all graduated from the famous universities and had bachelor’s degrees or higher. Their annual incomes are over 150,000 dollars. They are either single or married.

Š : Most people of this group are from 55 to 70 years old and retired from their careers. They are very wealthy, which belongs the upper class. Although they don’t have any job, they still have enough pension and savings. Moreover, they have plenty of time to enjoy their lives. Most of them are married and have grandchildren.

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/ Â Â In order to understand future target customers of the Crystal Cruise, we need to target the Millennials and Generation Z who will be our target customers in the next 30 years. As a result, we need to consider their psychographic characteristics into our analysis.

Compared with their parents’ generation, they grew in a relatively wealthy society. As a result, their attitude towards money are more open-minded and hedonism.They are more willing to reward themselves and spend money on traveling or any kind of entertainment. Moreover, these two groups both grew up in information age, which means they receive more information than any other generation. This factor drives them have adventurous spirits and love to try new things.

As for social media, they are heavily-addicted to the social medias and they can’t live without smartphones or tablets. They love to share lives through social media and are easily influenced by the internet influencers.

As for careers, in addition to payment, Millennials and Generation Z pay more attention to the development careers, value of their works and individual achievement. They care more about social justice and environmental issues. Moreover, these two groups both have more healthy lifestyle and care about sustainability.

‹  ˆ According to the psychographic information, they prefer online shopping more than physical stores. Moreover, they are tech-savvy and health-conscious. They not only care about the physical health but also mental health. As a result, they are more willing to spend money on travels. However, compared with last generation, they prefer to explore local culture and have personalized experiences. As a result, in order to capture their eyes, tourism industry need to provide more personalized and unique experiences

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FUTURE BRAND BUILDING STRATEGY Â?

… „ †Œ

†… Ž ‘ (Ž )

• Maintain reputation of the best cruise

• High reputation- the most awarded cruise

Following the future trend, the strategy of Crystal Cruise in 2048 will focus on three directions: Go

• Offering luxurious customer experience

• Cutting-edge technology-Biometrics

Green, Cultural Immersion, and Cutting-edge Technology.

• Maintain current client-Millennial

• Brand new travel style-Crystal Oasis

Go Green-self-produced energy

• Target new clients- Generation Alpha-af-

• Diverse product line from cruise, yacht, to jet

In 2048, environment-friendly will be one of the critical factors for being a successful business. Cruises

ter 2010

• High human content-high staff-to-guest ratio 1:1

consume significant energy for supplying the amenities, moving, and passenger use. Therefore, utilizing

• Greenwashing

natural resources wisely without damaging environment to generate self-produced renewable energy will be a goal in following 5 years.

Cultural Immersion Cultural immersion will be the other direction for the future strategy since the cultural value will be more and more important due to the people begin to aware of this. According to the Statista, the top ten destinations of luxury travel are all rich natural resources and culture.

Technology As one of the core ingredients of Crystal Cruise, maintain offering high-end technology will still be the direction to develop. In the future of the technology for traveling, cite airbus as an example, biometric scanning will be more and more popular and convenient for registering. Passengers do not need to wait in long line. AR and VR system will be developed maturely. After 30 years, helmet for AR and VR will evolve to contact lenses.

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THE CANNATA’S DIAMOND …

• Connoisseur Brand • Ultra Luxury • Offering Body and Soul personal Improvement to enhance Luxury Intangible Value

Â…

For Crystal Cruise’s future products, they will adopt the unique know-how to develop their new services and facilities on the cruise. Green technologies and special natural destinations will be the two major directions for Crystal Cruise. In 2048, global

In order to achieve the goals of Crystal Cruise future brand strategy, Crystal Cruise will not

population will reach over nine trillion according to PopulationPyramid. As a result,

only maintain their luxury services but also provide the latest technology to be the leading brand in

people will want to get away from the crowded urban areas and embrace the nature. In

the cruise market. Compare with other star cruise brands, Crystal Cruise belongs to connoisseur

order to correspond this idea, Crystal Cruise will build the Crystal Oasis, which will be a

cruise brand. Crystal Cruise focus on providing more exquisite and multiple services rather than

mobile man-made island featuring the latest entertaining facilities and gallery. Through

just expanding fleet. As a result, Crystal Cruise is a ultra luxury brand with high standard services.

these new products and services, Crystal Cruise will be the most popular traveling way

In the next thirty years, Crystal Cruise will have two major directions, which will be technology and

in the 2048.

sustainability. Crystal Cruise will use the latest technology to provide customers the most extraordinary travel experience and build the eco-friendly cruise environment. Through the future brand building strategies, Crystal Cruise will offer body and soul personal improvement to enhance luxury intangible value.

On the other hand, Crystal Cruise will devote to preserve the natural environment and marine ecology. As a result, Crystal Cruise will use the green energy to minimize the harm to the environment.

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As for the facilities and services on the Oasis, Crystal Oasis will use the latest technology to develop into the futuristic luxury experiences. Due to the progress of Face ID and fingerprint technology, Crystal Oasis will widely adopt biometric design to improve boarding system and use it to identify customers’ packages. Although it will be the 2048, Crystal Oasis will still provide some traditional luxury services such as Michelin-level restaurant and high-end spa services. However, Crystal Oasis will use the organic ingredients to develop into healthy cuisines. Moreover, in order to maintain the high staff-to-guest ratio, Crystal Cruise won’t use any robots as our staff. For the entertaining facilities, Crystal Oasis will use VR, AR and Hologram projection to create the brand new entertaining experiences on the Oasis. In order to correspond to the aesthetic value, Crystal Oasis will also have the gallery and art auctions. Crystal Cruise will invite modern artists to have exhibitions. Customers can also bid the art works that they love through auctions. Customers on the Oasis will immerse in the natural and art environment at the same time.

For the destinations of Crystal Oasis, Crystal Oasis will have two major directions, which will be cultural immersion and adventure tourism. In order to enhance customers’

� ˆ Crystal Oasis will be the long-term strategy for Crystal Cruise in the next 30 years. Crystal Oasis will be more like a mobile resort with abundant natural landscape such as man-made beach or waterfall to simulate the real natural environment. Customers can totally enjoy the natural vibe and luxury services at the same time.

Moreover, Crystal Oasis will provide the limited customer capacity. Customers won’t see the crowded man-made beach or grass with full sunbathing people. On the other hand, trees and grass can help Crystal Oasis purify the rainwater and change into the drinking water, which will correspond the self-sufficient goal. As for the power of Crystal Oasis, solar, wind and tidal will be major power resources for the Crystal Oasis. Therefore, it won’t generate any greenhouse gas or polluted materials. Furthermore, all organic waste will become the fertilizer for trees and plants on the Oasis.

travel experiences, Crystal will use big data to design customized travel package based on customers’ preferences. Based on our market research, Kenya and Iceland are top two luxury destinations. As a result, Crystal Oasis will collaborate local guides to let customers experience the local culture and understand their cultural background. Furthermore, customers can really experience the natural landscape and watch wildlife in the nearest distance.

Crystal Oasis will also combine other Crystal Cruise service such as yacht or river cruise to provide package tours. For instance, after visiting Kenya, customers can take Crystal Air Cruise to Egypt.

Moreover, all Crystal Cruise will also promote the importance of our environment. All cruise including air, yacht and river cruise will replace the internal combustion engine with electric or nuclear engines in order to reduce the carbon footprint.

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Â…

Ultra Luxury Pricing at both ends of the strategy spectrum can affect brand equity in different ways. The pricing structure for 2048 will remain largely unchanged. Pricing for the ocean cruise lines will remain exclusive and on the ultra luxury of the luxury cruises. Crystal cruises, being a connoisseur luxury brand needs to protect itself from becoming too easily accessible. With the threat of growing middle-class wealth, Crystal cruise needs to focus on remaining exclusive to mass consumption. One way to tackle the rise of the middle-class income and keep Crystal cruise prestigious is to increase the price of products. We compare the price between direct competitors and analyze the price rang that other cruise lines offers are located between at10 days of travel days for 3,700-5290, 20 days for 6,999-32,000, and the travel days that up to 130 days are from 49,995 to 65,385. Crystal cruise is located at the higher price area. Therefore, in order to maintain the exclusive, we place the price the still at the ultra luxury price point and present the price that higher than the current price in order to volatile the market after thirty years.

’… ( † )

Developing the Potential market Expanding brand presence in developing markets is key for Crystal cruise due to the growing income and spending power in developing countries. The fastest growing larger Travel & Tourism countries are expected to be China, India, Thailand, and Indonesia. By 2027, China is expected to overtake the USA market in terms of total Travel & Tourism GDP, domestic Travel & Tourism spending and investment. Regions such as Asia-Pacific is seeing tremendous growth in terms of the global travel and tourism GDP. The among of money is up three hundred billion according to the Global Economic Impact Issue. It is important to establish strongholds in these up-and-coming markets in order to capitalize on the sales potential later on without diluting the brand density. Nevertheless, US market will still remain at the second highest country at GDP of travel and tourism sector. Therefore, keeping developing US market will remain one of Crystal cruise’ top task. In addition to the digital present, collaborate with online luxury travel Agent will increase the brand awareness and built brand loyalty. Agents such as Abercrombie Kent, the industry pioneer was founded in 1962 and became synonymous with adventurous luxury tours.

And Connoisseurs Tours who specializes in designing journeys for colleges, universities, historical and religious organizations that want a sophisticated travel program. The Luxury Cruise Company, a division of Wexas Travel, offers ocean, river and exploration-style cruises worldwide and specializes in organizing personalized cruise itineraries aboard the world’s finest vessels, ocean liners, cruise ships, river cruisers and private yachts. To sum up, with their clients that are national and regional organizations whose goals are to travel with a purpose and cultivate opportunities that foster a sense of community and a more profound engagement with the environments would suits the best for Crystal cruises’ target customers as well.

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Artistic Expression- Exclusive Gallery Artistic expression is important to enhance its intangible value. Apart from display artworks in public space, an exclusive exhibition on the ship would become the other attraction for the guest since the most target customers are high-educated and high sense of art. Furthermore, most of passengers are high income, as a result, collaboration with art action partners such as West Park Gallery would enhance investment value for the guests.

Lifestyle Blog - Crystal Insider Crystal Cruise launched Crystal Insider to publish up-to-date lifestyle articles in order to connect the guests’ life. The blog publishes new articles every ten days for diverse topics, including travel, fashion events, gourmand, culture, and environment. It not only propels guests to have a new voyage, but also offering their personal improvement to

Professional blogs or websites-Cruise News For the external resource of promotion, maintaining a good relationship with professional websites and blog is crucial to build up brand values and the approaches for customers. Different from current strategy, digital promotion will be significant important after 30 years because of the prevalent of technology and scarcity of printed advertisements. Instead of posting relevant article and advertisement on social media, focusing on professional travel and cruise website, such as Conde Nast Travel, Cruise Critic, and Cruise International Association, will more effective due to the customers in the future will rely on professional suggestions more than ordinary comments.

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Â’ Â…

Target customer Comparison Currently, the main target customers for Crystal Cruise are Baby Boomers, Generation X, and small part of Millennials. However, in 2048, it will be Millennials, Generation X, which are our younger brother and sisters, and Generation Alpha.

What is the impact? The behavior of target customer will vary.Whereas Baby Boomers used to read papers and printed magazines, Generation Y are used to ready by smart devices, including smartphones, tablets, or AR lenses in the future. While the current customers prefer to experience new object by following instructions, the new generation will try and see. The communication methods will transform from verbal-oriented to visual oriented. In the future, flexible jobs will be more favored than steady job.

High Human Content-Personal Butler Service Although, it seems everything would be technological dominance. In the contrast, high human content will still maintain luxurious value. Crystal Cruise offers almost one to one staff-to-guest ratio to remain high human content and close service. For the guest, 24 hours on call personal butler offers private and detailed services, including in-suite dinner service, laundry service, and reservation confirmation. Whereas the convenience of technology will enhance the efficiency, human smiles emotionally increase the intangible value.

Fair Trade To the staff, as fair trade as the belief system of Crystal Cruise. This core value will stay critical in the future. All stakeholders including employees, suppliers, distributors, and stockholders, will retain appropriate profit to them.

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EXECUTIVE SUMMARY Crystal Cruise is a leading luxury cruise brand with multiple services. For the next thirty years, Crystal Cruise will still maintain their mission, which is to provide customers with the finest luxury services. As a result, Crystal Cruise will adopt the latest technologies and update their luxury services in order to meet customers’ needs. They will not only focus on luxury services but also devote to develop the sustainability. In the future, Crystal Cruise will provide more travel options and destinations to break down the stereotypes of the cruise industry. Technology and sustainability will be the two major directions of the Crystal Cruise future strategy. In order to focus on our target customers, Crystal Cruise will use the promotion strategies to increase brand awareness among today’s millennial customers. As for sustainability, Crystal Cruise will view it as a responsibility rather than just a marketing tool. However, as for threats, human’s damage to the nature is an important factor that Crystal Cruise will need to consider in the future.

In the long term, Crystal Cruise will maintain their high-standard luxury services to give customers unforgettable travel experience. Crystal Oasis will flip people’s imagination of the luxury travel.

Luxury travel will not only tangible luxury services but also improve customers’ soul. In other aspects, Crystal Cruise will give their customers’ a new definition of the luxury travel.

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LXFM 730 Marketing Strategies for Luxury Brands and Experiences

| Wei Liu, Li Hsuan Tsai, An Chen Tsai, Wesley Wu |