Launching ‘Azura’

A presentation to P&O Cruises by

MCBD

20th August 2008

20th August 2008
Today’s presentation

• Setting the context

• The building blocks
• Creative idea
• The customer Journey
• Bringing it to life
• Communications plan
• Budget breakdown
• Summary
Setting the context
 Despite increasing supply, demand for
cruising is in decline

in millions

Source: YouGov Market sizing report

2005 Base: 12,221 respondents (Fieldwork April 2006)
2007 Base: 14,002 respondents (Fieldwork January 2008)
And supply is really hotting up with
48% YOY increase in ex-UK
capacity this year alone

Brand Ship Year Capacity

RCI Independence of the Seas 2008 3,634
P&O Cruises Ventura 2008 3,080
CCL Carnival Splendor 2008 3,006
MSC MSC Poesia 2008 2,550
Cunard Queen Victoria 2007 1,970
Fred Olsen Balmoral 2008 1,104
Hurtigruten Fram 2007 328
With the next two years of supply
looking even busier
Brand Ship Year
CEL Solstice 1 2009
CEL Solstice 2 2010
COS New build 1 2009
COS New build 2 2009
COS New build 3 2010
CUN QE 2010
MSC New build 1 2009
MSC New build 2 2010
NCL New build 1 2009
NCL New build 2 2010
RCI Oasis of the Seas 2009
RCI Sister to Oasis 2010
So, we are under no illusion about the
enormity of the task in hand
With 3 , 078 beds , Azura will add 20 . 4 % to POC ’ s
capacity

This accounts for a 25 . 7 % increase in fleet

capacity

In passenger terms this means 93 , 532 *

passengers in any one programme year

And with the annual UK cruise market predicted to

reach
1 . 8m passengers in 2010 , Azura alone will account
for 5 . 2 %

*Based on Ventura
 … but before we get too depressed,
within the overarching context, the
challenge feels achievable

Target of 46 , 766
in millions
newcomers for the first
programme year is only
2.6% of active potentials

Source: YouGov Market sizing report

2005 Base: 12,221 respondents (Fieldwork April 2006)
2007 Base: 14,002 respondents (Fieldwork January 2008)
 First we needed to get under the
skin of the brief. We believe there
are 4 key building blocks
The building blocks of a big idea

W hat W ho
w e a re we
sa y it
to
W hat H ow w e
we say sa y it
The building blocks of a big idea

W hat W ho
w e a re we
sa y it
to
W hat H ow w e
we say sa y it
For too long the category has pretended to be
something else: yet the benefits of cruising
are numerous and thrilling

V a lu e C o n ve n ie n ce

V a rie ty E xp e rie n ce m o re
C h o ice
S o cia b ility
C o m fo rt

To g e th e rn e ss A d ve n tu re

We are unashamedly a cruise brand , and we do it

really well
It’s clear that we must
differentiate from RCI
British American
Expert Frenetic
Stylish Disposabl
e
Effortless
Intrusive
Real
Gimmicks
Contemporar
y New
‘Experienti ‘ Fun ’
al ’
However , whilst fresh and unique to Azura , the
idea must be
immediately recognisable as for P & O Cruises
And because the brand needs to secure
newcomers across the fleet, whatever we do
needs to have broad appeal

Azura must be the ‘ flagship ’ and talking point for

the fleet
 In a category shying away from what
it does ,
we want to embrace it . We believe
this is the
moment to overtly celebrate cruising .
The building blocks of a big idea

What we W ho
are : A
cruise brand we
and proud of sa y it
it to
W hat H ow w e
we say sa y it
With 50/50 targets, we have a diverse
audience to span

New cruisers
Cruisers
• Unsure
• Knowledgeable • Capture
• Differentiation imagination
• Detail • ‘Sell’ and
• handholding
•
What they are after is quite different

C ru ise rs New cruisers

R E IT E R A T IO N CONSIDERATION

EXPLORATION EXPLANATION

We must excite and inspire both groups with a

unified creative approach
We therefore need to reflect these –
and other – key differences in our
outbound communications

C ru ise rs N e w cru ise rs

Non - Family Non - Family

Family Family
( Generic ) ( Generic )

All data - capture must enable us to identify these

audiences , wherever possible
But we also need to be smart about
where we invest our budget, given
Azura’s appeal and target audience

Investment Declines
The building blocks of a big idea

What we Who we say it

are : A to : The right
cruise brand cruisers and
and proud of active potentials
it

W hat H ow w e
we say sa y it
 If we are about the joy of cruising,
then we must bring it to life in the
most compelling way

The
shi
p

The
pla
ces

Where you go is inextricably linked with how you

get there
And both the ship and the places
capture the essence of the best of
cruising

V a rie ty
C h o ice
E xcite m e n
t
Fo o d
E n te rta in m e
nt
A ctivitie s
Our creative proposition

‘ A zu ra - D isco v e r a h o lid a y w h e re th e
jo u rn e y
is a s e x citin g a s th e p la ce s y o u v isit’
The building blocks of a big idea

What we Who we say it

are : A to : The right
cruise brand cruisers and
and proud of active potentials
What we say it:
A
holiday where H ow w e
the journey is
as exciting as sa y it
the places you
visit
 What we need is a neat evocation
of the four key values

Indulgent,
Cosmopolitan Experience luxurious Spontaneity
design rich & sophisticated & diversity
getaway

Inspiring , stylish ,
inviting
The building blocks of a big idea

What we Who we say it

are : A to : The right
cruise brand cruisers and
and proud of active potentials
What we say it: How we say
A it :
holiday where Inspiring,
the journey is stylish,
as exciting as inviting
the places you
visit
Creative idea
The best holidays are full of stories. And P&O Cruises
newest superliner, Azura will be brimming with them.

It could be discovering a pod of dolphins playing in the

ship’s wake. Or enjoying a spine tingling Thai massage
in the Oasis Spa. Or seeing dawn break over the
magnificent Doge’s Palace in Venice.

With so much to see and do, every day, every deck,

every destination is a new story just waiting to be
written …
The Customer Journey
We have developed a framework
for the customer journey

SUSPECTS PROSPECTS PASSENGERS ENQUIRERS BOOKERS?

COLD COOL LUKE WARM WARM HOT
Each stage takes potential
customers closer to the booking
stage

SUSPECTS PROSPECTS PASSENGERS ENQUIRERS BOOKERS?

COLD COOL LUKE WARM WARM HOT

Outbound Engagement Fulfillment

Bringing it to life
Outbound: Finding new suspects

SUSPECT PROSPECTS
PROSPECTS PASSENGERS ENQUIRERS BOOKERS?
SCOLD COOL
COOL LUKE WARM WARM HOT

Alongside traditional cold lists and e - DM , we

propose testing an alternative approach to low -
cost lead generation via online offer - led lead
generation
 Finding new suspects
•Ventura cold E/DM successful in providing response
•4-stage E/DM campaign
•5.5% response rate
SUSPECTS •£17 Cost Per Response (£26 contactable)
•However, few bookings have been made, especially for
COLD Ventura
•£3k Cost Per Booking (£20k per Ventura
Booking)
Cold E / DM Online Lead Generation
•Reflects previous targeting, but •Online audience screened to reflect
Ventura responders profiled to E/DM targeting
refine approach: •Prize draw mechanic to promote
•35-55; HH income £40k+; 2+hols pa; response
Mosaic A-C; Interests: Luxury •Enables additional questions to be
Travel; Gourmet Food/Wine asked, e.g. Make up of party, etc.
•We also recommend the inclusion of •Delivered across several lead gen.
family groups (excl. from Ventura vehicles from multiple providers
DM)
•E/DM to be split Family vs. Generic •Estimated CPL of £1.2 (£1.2k CPT)
•Estimated data cost of £175 CPT •Predicted to generate up to 20k
for three contacts leads pcm
Outbound: Capitalising on
prospects

SUSPECTS PROSPECTSPASSENGERS ENQUIRERS BOOKERS?

COLD COOL LUKE WARM WARM HOT

We propose announcing Azura to this audience and

testing the responsiveness of Ventura and
general enquirers
 Capitalising on prospects

PROSPECTS •No results available for reactivation of existing

prospects for new ship launch
COOL

Ventura Prospects General Enquirers

•11k Ventura prospects available
•This audience should be responsive
to the 6166 proposition
•Further 34k prospects available, but
ship of interest unknown, so this
may be less responsive
•We will use Mosaic to filter this
audience to better reflect the
Ventura/intended 6166 audience
profile
Outbound: Maximising the right
passengers

SUSPECTS PROSPECTS PASSENGERSENQUIRERS BOOKERS?

COLD COOL LUKE WARMWARM
WARM HOT

We recommend using Portunus to communicate the

launch to the wider audience at low cost , while
using direct comms to discrete audiences likely
to be responsive to the Azura proposition
 Maximising the right passengers

•Past passengers are a well-proven source of bookings

for the launch of a new ship
PASSENGERS •However, we need prioritise our investment in this
audience wisely, given the ambition to acquire a
LUKE WARM newcomer audience
•Additionally, Ventura experience has shown that more
traditional P&O passengers are not well-suited to
the ‘Big Ship Cruising’ experience

Ventura / Oceana 08 / 09 Passengers Other Passengers

•Estimated 115k Ventura and Oceana
prospects available (from “Ventura
Profile Report”)
•An estimated 100k people travelled
on other ships in 08/09 (from
“Ventura Profile Report”)
•We will use Mosaic to filter this
audience to better reflect the
Ventura/intended 6166 audience
profile
 How the creative will look for
outbound

SUSPECTS PROSPECTS PASSENGERS

COLD COOL LUKE WARM

Teaser email Teaser email DM booklet

DM booklet DM booklet /postcard
Post email Post email Portunus
ad
Moving on to Engagement

SUSPECTS PROSPECTS PASSENGERS ENQUIRERS BOOKERS?

COLD COOL LUKE WARM WARM HOT
 Engagement: the enquirers

SUSPECTS PROSPECTS PASSENGERS ENQUIRERS BOOKERS?

COLD COOL LUKE WARM WARM HOT

To drive our variously sourced leads closer to real

excitement and the desire to book , we propose :
•A microsite that excites and inspires both existing and
new customers , built on intrinsic themes , not explicit
functionality
•A segmented E - CRM conversion programme tailored to tap
into the different needs of newcomers vs . previous
cruisers and family vs non - family groups
These will constantly drive prospects to raise their
hand as an intended booker
•
•
 Making the most of enquirers
•The microsite is key in bringing Azura to life to
visitors, stoking excitement as we build towards
ENQUIRERS April
•Current assumptions predict 315k visitors across the
WARM year – equating to approximately 158k during the
pre-launch period (Nov-Apr)
•At the same time, a 4-stage tailored email programme
will drive prospects to sign up for the April
launch pack
Online – Landing Page Fulfillment
•Landing page for enquirers carries •4 email communications – initial ‘thank
competition – data captured used to you’, plus monthly follow-ups in Jan, Feb
identify audience profile & March
Online – Microsite •All communications opportunity to sign
•Existing=Reiteration, New=Consideration up for a pre-launch pack
•Excite & inspire both groups – Explore •All communications are tailored by
& Explain groups requiring greatest message
•Site interaction brings creative thought differentiation:
to life •Newcomer vs. Previous Cruiser
•Always provides opportunity for data- •Family vs. Non-Family (Generic)
capture to feed E-CRM programme •
 How the creative will look for
engagement

SUSPECTS PROSPECTS PASSENGERS ENQUIRERS

COLD COOL LUKE WARM WARM

Teaser email Teaser email DM booklet Microsite

DM booklet DM booklet /postcard Landing
page
Post email Post email Portunus
ad Emails
 Launch: the big push

SUSPECTS PROSPECTS PASSENGERS ENQUIRERS BOOKERS?

COLD COOL LUKE WARM WARM HOT

We would only recommend releasing the DVD when

booking becomes a reality . For our hottest
enquirers we would recommend more than just the
DVD , but must prioritise our investment wisely –
focussing budget on the key audience more
reflective of the Ventura passenger profile
 Taking the final step

•In April, when it becomes possible to book, we feed

the excitement by sending out our ‘launch pack’
BOOKERS? •We propose sending out the DVD to everyone that has
requested one, but investing more heavily in our
HOT desired audience (more reflective of Venture
passengers), by sending out our “Endless Stories”
book to bring the possibilities to life
•All contacts will receive a launch email

Priority leads – ( Ventura Remaining leads

profile )
•Key audience for Azura
•Mailed a launch pack containing
both the DVD and the “Endless
Stories” book
•Letter is tailored to newcomer vs.
previous cruiser and family vs.
non-family (generic) audiences
•Launch pack requesters not meeting
the Ventura profile receive the DVD
•Non-requesters receive launch email
only
•Letter & email are tailored to
newcomer vs. previous cruiser and
family vs. non-family (generic)
audiences
 How creative will look for
fulfilment

SUSPECTS PROSPECTS PASSENGERS ENQUIRERS BOOKERS?

COLD COOL LUKE WARM WARM HOT

Teaser email Teaser email DM booklet Microsite Launch book

DM booklet DM booklet /postcard Landing DVD
page
Post email Post email Portunus
ad Emails
The idea is sufficiently broad to
extend into other channels
• Press

• Inserts

• Online advertising

• PR launch
Communications Plan
COLD COOL LUKE WARM WARM HOT

OUT BOUND MIC ROSITE & FULFILMENT BOOKING LAUNCH

Sus pects Prospects ( previous enquirers ) Pre vious passen gers Bro wsers & Explorers Enquirers Potential Bookers

           

IPT Leads from survey   Ventura Mail (email)   Ventura / Oceana Portunus & Mail 115,000   Additional Visitors Email programme       Prioritised leads Secondary leads All Leads
30,000 11,000 157,500

Online lead gen. £1.20 per lead     Mosaic Match Mail (email)   Other / Mosaic match Portunus & Mail   % registered 5% Thank you + Jan, March     Launch Book & DVD DVD only   Launch Email
15,000 25,000

        From 34k       Other Portunus   Total additional registrations 7875 (inc. pre launch pack offer )              
50,000

      From add. visitors     20% 1575 30% 2363 7875

7,875

Cold Email, Mail, Email 100,000     From Cold     25% 8875 25% 8875 35500
35,500

CPM £       From Prospects     70% 1713 30% 734 2448

175 2,448

  £       From Passengers     20% 4331 50% 10828 21656

17,500 21,656

                       

      Sub Total 674 79       16495   22800 67479

Registered enquir i e s f o r 6 1 6 6          

           

IPT qualified Leads 100% Ventura % 11.0% Ventura & Oceana % 13.8%          
30,000 1,210 15,813

Cold % 5.5% Mosaic % 8.3% Mosaic % 12.4%          

5,500 1,238 3,094

  Other % 5.5%          
2,750

           

Sub Total     Sub Total     Sub Total            

3 5 ,5 0 0 2 ,4 4 8 21 , 656

           

          T O T A L r e g i s t e r e d e n q u i r i es for 6166 from Outbound                                  

59 , 604

Assumptions:

Based on results provided on Cold DM for Ventura

Visitor and conversion numbers as provided by Elliott Pritchard

Budget breakdown
Overview of budget breakdown

• Fee
• DM
• Microsite
Summary
 
Activity Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

PR Press release announcing ship name 27th                          

Press Launch - London venue TBC   25th                        

PR open day                            

TV project with Atul Kochhar                            

PR - float out                            

Travel Launch to travel agents at Cruise awards     4th                      

Agents
Trade activity - TBC                            

CRM IPT online questionnaire

6166 discreet mailing piece                          

6166 cold mailing piece (no DVD)             Updated       Updated      

Fulfillment pack and/or DVD                      

On sale - brochure launch             ON              

SALE
The Portunus Club Magazine (DPS &                          
bookmark)
New Media Microsite launch   25th                        

E.CRM campaign                            

Staff Internal launch - Dec - Odeon. April -                            

bespoke event to tie in with brochure
launch
Internal e-bulletins                            

Advertising Advertising - supplement                            

Advertising - press ads - review after                            

launch
Advertising - inserts
Advertising - online
In summary

• Celebrate cruising
• Let Azura standalone, yet be recognisably P&O
Cruises
• Do both explanation and exploration in a
meaningful way for both audiences
• Engage and reward throughout the process
• Wrap communications in a compelling ‘story’
•

Azura . One ship , endless stories .

Hey presto: we’ve crunched some
numbers, and …
By booking launch, we are driving 67,479 enquirers
…

… at 5% conversion, this means 3,374 bookers …

… at an average of 2.037 passengers per booking,

this means 6,873 directly booked passengers

… which accounts for 7.35% of programme year

bookings …

… which roughly correlates with your direct

booking percentage
Thank you