The problem for Celebrity Cruises was clear in they needed to define a clear positioning for its customers and figure out a way to keep the demand strong maintain market share and focus on specific customers in their target market. This meant Celebrity cruises had problems with their strategies and less importantly their operations. Celebrity needed to figure out a way to retain customs with different expectations within their target market whether or not they were initial cruisers, seasonal cruisers or frequent cruisers.

Situation analysis

In analyzing Celebrity’s internal macro-economic environment and the external micro-economic environment structure we will break down a fairly complex entity such as Celebrity Cruise …show more content…

The problem arises when they market towards the mass market, meaning the demographics fall apart and the strategy tends to be attract all potential customers who find the company and the services attractive, they did quite well through their travel agency programs where travel agents were paid from commissions but the problem arose when they struggled to figure out how to treat customers who are paying ten times as more to cruise than a customer who was looking for a bargain to experience a cruise. Some solutions offered are represented in the different classes of cruisers such as the Concierge’s Class in which customers expectations were higher for the premium they had to pay and would be met by the increased service features. The Captains Club was also a solution to this customer differential problem which rewarded their more frequent cruisers but no real separation of customers which could be perceived as both a good and bad thing depending on which perspective the situation is analyzed from. Overall the cruise industry is constantly challenged to improve their services to both frequent and new cruisers however because of the niche that was maintained by Celebrity the company finds it relatively difficult to quantify how well they are doing in both