Carnival Cruise Lines Harvard Case Solution & Analysis

Q3.) What existing strategies is Carnival currently using to recognize and reward certain customers?

Royalty program with the name of Carnival’s Vacation Club was launched in order to reward the repeat and loyal customers. Under this program customers are awarded with points for their spending on board. These points can be redeemed for their future cruise visits or other products and can be redeemed for next five years time. Furthermore, recognition cards get issued to repeat customers and these recognition cards are named as golden and platinum cards that differentiate them from the first time visitors. However, these recognition cards are issued in order to recognize loyal customers for their repeat visits. Additionally, the recognition card holders are given exceptional welcome at the Carnival’s family. There are some exceptional strategies too which allowed discounts by Freed, Senior Vice President of Marketing and Sales to those customers, who are not just repeat customers but also have a history of high spending on board.

Vacation Interchange Privileges program (VIP) is there in order to recognize the repeat visitors of all the brands of Carnival Corporation in which members of Carnival’s Skipper’s Club and VIPs are provided with the exceptional service during the embarkation process and they are served in private air conditioned rooms. In addition to this, they are given VIP treatment by dedicated and well-suited staff in order to make the process easy and quick for valuable repeat customers.

Q4.) Describe how Carnival might use one of the five data mining techniques with its customer data.  What actionable knowledge might it obtain from applying the technique you selected?

Data mining is a process in which data is processed in order to identify the trends and history of patterns. These trends of data can be used to predict and extrapolate the relevant information for future. Since, large amount of data is not easily understandable and their relevancy and dependency can be made without the proper analysis of available data, therefore; number of data mining techniques can be used in order to analyze the customer data. In case of Carnival, the data relating to its cruise customer can be analyzed using the “Association” data mining technique.

Association data mining technique is used to identify the appealing linkages and relations within the large pool of information that can be analyzed on its own. Organizations keep pooling their data relating to customers but end up in doing nothing with that data. Whereas, association rule as a data mining technique reseals the unknown relations and correlations of data that has already been gathered by companions and organization that uses a typical type of association rule i.e. market basket analysis. This analysis identifies the relevancy of customers buying habit with different type of data available in database. Furthermore, association rule of data mining reveals the different important factors and patrons of data, which contributes to the development of business strategies.

Association rule as data mining technique refers to the usual method that uncover the relationship of data and the final product of that data becomes a valuable information for the management. It gives meaning to the data by using the undiscovered elements of data, which can be used in various decision making processes. Whereas, basket analysis can be used to make reference to different data and to establish co-occurrence to different data. Basket analysis can be also used in order to establish patterns of purchases and buying habits can be developed in different categories of customer portfolio.

However, association rule as data mining technique can be used to identify the relationship between its customers’ age, income level and their attraction toward cruising. This information will enable Carnival’s management to focus on the specific age group and individuals with specific income level based on their attractiveness towards using vacation programs. Furthermore, the correlations among customers demographics, their marital status and their on board spending habits can be used to directly attract specific customers. In addition to this, the relationship among different services that are used can be identified and it can be established. For instance, those users of spa services usually use the swimming pools................................................

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