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Spectra PR
Members
Charmaine Chan
 Amanda Soh
  Alicia Chua
 Anand Daniel
Costa Cruises
Costa Cruises: Vacation Cruises
•   Base: Genoa, Italy
•   Parent Company: Carnival PLC (NYSE & LSE)
•   14 Italian Registered Cruise ships
•   Operates cruises in the mediterranean, Northern
    Europe, The Carribbean, The Indian Ocean, the
    Middle East and South America
The Incident
•   13th January 2012
•   Costa Concordia,
•   Hit a reef off Giglio Island, now partially sunk.
•   Aboard: 3206 passengers and 1023 crew members
•   Cause: The captain piloted the vessel within 200 yards
    of the coast, as part of a tradition known as ‚Saluting‛
The Incident
Impact
•   30 dead
•   64 injured
•   Share prices fall 0.86%
•   Pollutants aboard the vessel a looming threat to
    environment
     o Threat to marine life, fishing, tourism
Complications:
             Media Blitz
• Accident caused by questionable tradition of ‘saluting’
• Captain abandoned vessel before ensuring that all
  passengers evacuated
• Evacuation was not orchestrated properly,
  crew were not trained
• Passengers who made it to shore of Giglio were
  not attended to or cared for appropriately
• Class action lawsuit filed against Carnival by Codacons
  (USD 160, 000 for 70 passengers)
SWOT Analysis
             STRENGTHS                                WEAKNESSES
•   Strong financial reserves - Carnival   • No crisis management system
•   Good track record                      • Lack of checks and balances across
•   Strong ties with Italian government      operations
•   Leader in industry                     • Lack of control mechanism for
                                             sailing cruise ships



           OPPORTUNITIES                                THREATS
• PR advice: Burson Marsteller             • Environmental activists rallying
• Extensive traditional / social media       against Costa
  outlets available                        • Class action lawsuit (Codacons)
• Partnership with Italian                 • Extensive press coverage of
  government for CSR efforts                 controversies (negative publicity)
SWOT Pairings
O-T   Engage Burston-Marstellar to manage matters pertaining to
      compensation and lawsuit

S-T   Work alongside Italian government to restore Giglio’s environment
      and address concerns from environmental activists

T-O   Collaborate with the Italian government to safeguard livelihood of
      Giglio Citizens and curb further bad press


S-W   Utilise funds to reform safety procedures in Costa

W-S   Replace lack of checks and balances with improved accountability
      standards in Costa

W-O   Broadcast new protocol implementations (safety and environment)
      on social media
Problem Statement
 On January 13, 2012, Costa Concordia sank off the
              coast of Giglio Island.

The chemicals (2300 gallons of fuel, 200 tons of diesel
 and other toxins) aboard the wreckage threaten to
 pollute the marine environment of Giglio Island,
       thereby affecting tourism and fishing.

 The incident has negatively influenced consumer
opinion by 70.8% regarding the safety standards of
                  Costa Cruises.
Costa’s Values
• Vision: Exceeding customers’ expectations during whole
  vacation

• Mission: Make guests satisfied and repeat experience with
  them, serve with ownership, enthusiasm and pride

• Ethics: Full respect for safety and environmental protection
Organisational Stand
Costa promises:
• The full restoration of the coastline and the
  tourism industry of Giglio Island,
• Complete compensation for all passengers who
  were aboard Costa Concordia as well as the
  families who lost loved ones
• To ensure world-class safety standards for all
  passengers.
People of
                                Future
            Giglio
                            Customers
            Island



                                          Victims
 Stock-              Publics
                                         and their
holders              Affected
                                         Families



               The
                            Environment
          International       Activists
             Media
Our
                Target
                Publics




 People of                 Future
Giglio Island             Customers
People of
                                 Future
           Giglio
                                Customers
           Island



                       Our                 Victims
 Stock-               Target              and their
holders               Publics             Families



           The
                                Environment
      International               Activists
         Media
Our Target Publics
      The People of Giglio Island               Future Customers of Costa Cruises

Defined as:                                 Defined as:

•   Italians residing on Island of Giglio   •    American cruise-goers
•   3 villages, 27km of coastline           •    English-speaking
•   The Tuscan Province of Grosseto         •    Median age of 40-59
•   Livelihoods:                            •    With min annual household income
    Fishing and tourism (diving)                 of USD 90 K

Main concern:                               Main concern:
The environment of Giglio Island and        Poor safety standards and
hence their livelihoods                     accountability of Costa
Target Public:
           People of Giglio Island
Goal       To protect the environment of Giglio Island and the
           livelihood of its residents




Objectives 1.   To raise American and Italian tourists’ awareness of
                clean-up and containment efforts at Giglio
                to 90% by 1st May 2012

           2.   To ensure continuity of the livelihoods of the people,
                restore Giglio Island’s summer tourism numbers from
                100 per week to 250 per week within 12 to 18 months
People of Giglio Island

                                     Behaviour
  Knowledge
                                      To ensure the
     To increase
                                   livelihoods of the
   American and
                                        people by
  Italian tourists’
 awareness of the
                      Attitude      restoring Giglio
                                    Island’s summer
   clean-up and
                                   tourism numbers
    containment
                                  from 100 per week
 efforts at Giglio
                                    to 250 per week
to 90% by 1st May
                                     within 12 to 18
        2012
                                         months
Restoring Giglio Island:
      Pairings  Action Strategies
S-T      Tap on strong financial   Strategy 1:
         reserves to fund
         measures to protect       Implement steps to restore the
         Giglio’s environment      coast of Giglio and establish long
         and address               term sustainability measures to
         environmental             preserve its coastal environment
         activists’ concerns, in
         partnership with
         Giglio government.
T-O      Consolidate the         Strategy 2:
         negative reporting in
         the international press Partner the Giglio government in
         regarding Giglio’s      a tourism campaign
         landscape and partner
         the Italian government
         to address it.
Restoring Giglio Island
       Strategy 1:                 Tactics:

Take steps to restore the
coast of Giglio             1. Engage SMIT
                            Salvage to protect the
                            coast
Establish long term
sustainability measures
to preserve its coastal     2. Costa Concordia
environment                 Memorial Foundation
Restoring Giglio Island
                             Tactics:
    Strategy 2:
                     1. Italian tourist
                     campaign
Partner the Giglio   2. North American
government in a      tourist campaign
tourism campaign     Both to show Giglio
                     as an ideal diving and
                     fishing destination
Target Public:
                 Future Customers
Goal       To improve potential customers’ opinion of Costa Cruises’
           safety and accountability protocol



Objectives 1.   To increase American tourists’ knowledge and
                awareness of the new and improved safety and
                security protocol at Costa Cruises to 90% by 1st April
                2013;

           1.   To raise American travellers’ positive opinion of Costa
                Cruises’ safety to 60% by 1st April 2013
Future Customers

       Knowledge
                                      Attitude
  To increase American
 tourists’ knowledge and          To raise potential
awareness of the new and        American travellers’
   improved safety and        positive opinion of Costa
security protocol at Costa    Cruises’ safety to 60% by
Cruises to 90% by 1st April         1st April 2013
            2013;
Ensuring Safety:
         Pairings  Strategies
S-W   Use available funds Strategy 1:
      to reform all safety
      procedures in Costa To overhaul the safety and
      Cruises’ ships       security protocol of Costa
                           Cruises

W-S   Transform current     Strategy 2:
      lack of checks and
      balances into         Increase the accountability
      accountability as     of all crew members
      part of Costa
      Cruises’ reputation
Future Customers
                           Tactic:
    Strategy 1:     Hire
                    ‚The Nexus
Overhaul safety     Consulting Group of
and security        Alexandria‛ to
protocol of Costa   overhaul safety,
Cruises             security and
                    accountability
                    protocol
Future Customers
                                 Tactics:
                        1. All course deviations to
                        be ratified by First Mate
      Strategy 2:       and on-shore duty
                        personnel
Increase the
accountability of all
crew                    2. Two staff members (on
                        land) on 24-hour duty, to
                        maintain constant contact
                        with all Costa vessels at
                        sea
Communication Strategies
W-O Constantly        • Knowledge Objectives for :
    broadcast            o The people of Giglio
    changes to           o Future customers of Costa
    safety and             Cruises (American)
    security
    protocol on
    traditional and   • Three media channels:
    social media         o Traditional media: Press
    platforms            o Owned media: Weblog
                         o Social media
Communication Strategies
       Press
o Managed by media specialist team
o Send out fortnightly press releases
   • Updates on new safety protocol /
     measures
   • Updates on coastal restoration
o Reach: 20 most influential news
  agencies
Communication Strategies
          Weblog
•   More personal
•   Purpose: Offer timely updates on new measures
•   Include interactive elements
•   In English & Italian
•   Target readership:
    o   Concordia passengers
    o   Potential customers
    o   Environmental watch groups
    o   Giglio residents
    o   Tourists
Communication Strategies
       Social Media
• Facebook:
   o Costa Cruises – 18, 000 ‘fans’
   o Carnival Cruise Line – 1.6 million ‘fans’

• Twitter
   o Costa Cruises – 1, 500 ‘followers’
   o Carnival Cruise Line – 52, 000 ‘followers’

• Link updates to Facebook and Twitter accounts
• Fast, efficient dissemination
Evaluation of
   Environment/Tourism in Giglio
Knowledge Objective:             Behavioural Objective:
Awareness of pollution           Change in behaviour of
containment and clean-up         tourists
of Giglio coastline
                                   o Compare stats of summer
   o Hit counter on weblog           2011 with summer 2013
     (165, 000 unique hits)           o Number of tourists
                                         visiting Giglio
   o Shares / Likes / Retweets
                                      o Number of dive trips
     on Social Media (40%)
                                         organized
                                      o Total revenue of
                                         Giglio – owned
                                         businesses
Evaluation of
Costa Cruises’ Safety and Accountability
• To evaluate the American tourists’ knowledge of
  new safety protocol:
    o Quantitative Method – Surveys
Platforms          Tour agencies      Target           Timeline


• Cruisecritic.com Under the          • Americans      12 months after
• Tripadvisor.com American Society      booking        campaign is
• Cruisesonly.com for Travel Agents     cruises        implemented
                   (ASTA)             • Age 40-59
                                        (mean
                                        demographic)
Evaluation of
   Costa Cruises’ Safety and Accountability
• To evaluate the American tourists’ knowledge of new
  safety protocol:
   o Quantitative Method – Surveys

• To evaluate the attitude and impressions of potential
  customers
   o Qualitative Method – Focus Groups

• Monitoring sales figures
   o Compare cruise bookings of Costa Cruises in 2013 with 2011
Thank You
For Your Attention!

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2219 finalised ppt

  • 2. Members Charmaine Chan Amanda Soh Alicia Chua Anand Daniel
  • 4. Costa Cruises: Vacation Cruises • Base: Genoa, Italy • Parent Company: Carnival PLC (NYSE & LSE) • 14 Italian Registered Cruise ships • Operates cruises in the mediterranean, Northern Europe, The Carribbean, The Indian Ocean, the Middle East and South America
  • 5. The Incident • 13th January 2012 • Costa Concordia, • Hit a reef off Giglio Island, now partially sunk. • Aboard: 3206 passengers and 1023 crew members • Cause: The captain piloted the vessel within 200 yards of the coast, as part of a tradition known as ‚Saluting‛
  • 7.
  • 8.
  • 9. Impact • 30 dead • 64 injured • Share prices fall 0.86% • Pollutants aboard the vessel a looming threat to environment o Threat to marine life, fishing, tourism
  • 10. Complications: Media Blitz • Accident caused by questionable tradition of ‘saluting’ • Captain abandoned vessel before ensuring that all passengers evacuated • Evacuation was not orchestrated properly, crew were not trained • Passengers who made it to shore of Giglio were not attended to or cared for appropriately • Class action lawsuit filed against Carnival by Codacons (USD 160, 000 for 70 passengers)
  • 11. SWOT Analysis STRENGTHS WEAKNESSES • Strong financial reserves - Carnival • No crisis management system • Good track record • Lack of checks and balances across • Strong ties with Italian government operations • Leader in industry • Lack of control mechanism for sailing cruise ships OPPORTUNITIES THREATS • PR advice: Burson Marsteller • Environmental activists rallying • Extensive traditional / social media against Costa outlets available • Class action lawsuit (Codacons) • Partnership with Italian • Extensive press coverage of government for CSR efforts controversies (negative publicity)
  • 12. SWOT Pairings O-T Engage Burston-Marstellar to manage matters pertaining to compensation and lawsuit S-T Work alongside Italian government to restore Giglio’s environment and address concerns from environmental activists T-O Collaborate with the Italian government to safeguard livelihood of Giglio Citizens and curb further bad press S-W Utilise funds to reform safety procedures in Costa W-S Replace lack of checks and balances with improved accountability standards in Costa W-O Broadcast new protocol implementations (safety and environment) on social media
  • 13. Problem Statement On January 13, 2012, Costa Concordia sank off the coast of Giglio Island. The chemicals (2300 gallons of fuel, 200 tons of diesel and other toxins) aboard the wreckage threaten to pollute the marine environment of Giglio Island, thereby affecting tourism and fishing. The incident has negatively influenced consumer opinion by 70.8% regarding the safety standards of Costa Cruises.
  • 14. Costa’s Values • Vision: Exceeding customers’ expectations during whole vacation • Mission: Make guests satisfied and repeat experience with them, serve with ownership, enthusiasm and pride • Ethics: Full respect for safety and environmental protection
  • 15. Organisational Stand Costa promises: • The full restoration of the coastline and the tourism industry of Giglio Island, • Complete compensation for all passengers who were aboard Costa Concordia as well as the families who lost loved ones • To ensure world-class safety standards for all passengers.
  • 16. People of Future Giglio Customers Island Victims Stock- Publics and their holders Affected Families The Environment International Activists Media
  • 17. Our Target Publics People of Future Giglio Island Customers
  • 18. People of Future Giglio Customers Island Our Victims Stock- Target and their holders Publics Families The Environment International Activists Media
  • 19. Our Target Publics The People of Giglio Island Future Customers of Costa Cruises Defined as: Defined as: • Italians residing on Island of Giglio • American cruise-goers • 3 villages, 27km of coastline • English-speaking • The Tuscan Province of Grosseto • Median age of 40-59 • Livelihoods: • With min annual household income Fishing and tourism (diving) of USD 90 K Main concern: Main concern: The environment of Giglio Island and Poor safety standards and hence their livelihoods accountability of Costa
  • 20. Target Public: People of Giglio Island Goal To protect the environment of Giglio Island and the livelihood of its residents Objectives 1. To raise American and Italian tourists’ awareness of clean-up and containment efforts at Giglio to 90% by 1st May 2012 2. To ensure continuity of the livelihoods of the people, restore Giglio Island’s summer tourism numbers from 100 per week to 250 per week within 12 to 18 months
  • 21. People of Giglio Island Behaviour Knowledge To ensure the To increase livelihoods of the American and people by Italian tourists’ awareness of the Attitude restoring Giglio Island’s summer clean-up and tourism numbers containment from 100 per week efforts at Giglio to 250 per week to 90% by 1st May within 12 to 18 2012 months
  • 22. Restoring Giglio Island: Pairings  Action Strategies S-T Tap on strong financial Strategy 1: reserves to fund measures to protect Implement steps to restore the Giglio’s environment coast of Giglio and establish long and address term sustainability measures to environmental preserve its coastal environment activists’ concerns, in partnership with Giglio government. T-O Consolidate the Strategy 2: negative reporting in the international press Partner the Giglio government in regarding Giglio’s a tourism campaign landscape and partner the Italian government to address it.
  • 23. Restoring Giglio Island Strategy 1: Tactics: Take steps to restore the coast of Giglio 1. Engage SMIT Salvage to protect the coast Establish long term sustainability measures to preserve its coastal 2. Costa Concordia environment Memorial Foundation
  • 24. Restoring Giglio Island Tactics: Strategy 2: 1. Italian tourist campaign Partner the Giglio 2. North American government in a tourist campaign tourism campaign Both to show Giglio as an ideal diving and fishing destination
  • 25. Target Public: Future Customers Goal To improve potential customers’ opinion of Costa Cruises’ safety and accountability protocol Objectives 1. To increase American tourists’ knowledge and awareness of the new and improved safety and security protocol at Costa Cruises to 90% by 1st April 2013; 1. To raise American travellers’ positive opinion of Costa Cruises’ safety to 60% by 1st April 2013
  • 26. Future Customers Knowledge Attitude To increase American tourists’ knowledge and To raise potential awareness of the new and American travellers’ improved safety and positive opinion of Costa security protocol at Costa Cruises’ safety to 60% by Cruises to 90% by 1st April 1st April 2013 2013;
  • 27. Ensuring Safety: Pairings  Strategies S-W Use available funds Strategy 1: to reform all safety procedures in Costa To overhaul the safety and Cruises’ ships security protocol of Costa Cruises W-S Transform current Strategy 2: lack of checks and balances into Increase the accountability accountability as of all crew members part of Costa Cruises’ reputation
  • 28. Future Customers Tactic: Strategy 1: Hire ‚The Nexus Overhaul safety Consulting Group of and security Alexandria‛ to protocol of Costa overhaul safety, Cruises security and accountability protocol
  • 29. Future Customers Tactics: 1. All course deviations to be ratified by First Mate Strategy 2: and on-shore duty personnel Increase the accountability of all crew 2. Two staff members (on land) on 24-hour duty, to maintain constant contact with all Costa vessels at sea
  • 30. Communication Strategies W-O Constantly • Knowledge Objectives for : broadcast o The people of Giglio changes to o Future customers of Costa safety and Cruises (American) security protocol on traditional and • Three media channels: social media o Traditional media: Press platforms o Owned media: Weblog o Social media
  • 31. Communication Strategies Press o Managed by media specialist team o Send out fortnightly press releases • Updates on new safety protocol / measures • Updates on coastal restoration o Reach: 20 most influential news agencies
  • 32. Communication Strategies Weblog • More personal • Purpose: Offer timely updates on new measures • Include interactive elements • In English & Italian • Target readership: o Concordia passengers o Potential customers o Environmental watch groups o Giglio residents o Tourists
  • 33. Communication Strategies Social Media • Facebook: o Costa Cruises – 18, 000 ‘fans’ o Carnival Cruise Line – 1.6 million ‘fans’ • Twitter o Costa Cruises – 1, 500 ‘followers’ o Carnival Cruise Line – 52, 000 ‘followers’ • Link updates to Facebook and Twitter accounts • Fast, efficient dissemination
  • 34. Evaluation of Environment/Tourism in Giglio Knowledge Objective: Behavioural Objective: Awareness of pollution Change in behaviour of containment and clean-up tourists of Giglio coastline o Compare stats of summer o Hit counter on weblog 2011 with summer 2013 (165, 000 unique hits) o Number of tourists visiting Giglio o Shares / Likes / Retweets o Number of dive trips on Social Media (40%) organized o Total revenue of Giglio – owned businesses
  • 35. Evaluation of Costa Cruises’ Safety and Accountability • To evaluate the American tourists’ knowledge of new safety protocol: o Quantitative Method – Surveys Platforms Tour agencies Target Timeline • Cruisecritic.com Under the • Americans 12 months after • Tripadvisor.com American Society booking campaign is • Cruisesonly.com for Travel Agents cruises implemented (ASTA) • Age 40-59 (mean demographic)
  • 36. Evaluation of Costa Cruises’ Safety and Accountability • To evaluate the American tourists’ knowledge of new safety protocol: o Quantitative Method – Surveys • To evaluate the attitude and impressions of potential customers o Qualitative Method – Focus Groups • Monitoring sales figures o Compare cruise bookings of Costa Cruises in 2013 with 2011
  • 37. Thank You For Your Attention!

Editor's Notes

  1. (1 minor incident from 2000 – 2010, no casualties)
  2. Pollutants:Threaten tourismThreaten fishing10 leading news agencies: 70.8% of reports for 60 days following incident portrayed the safety levels of Costa as poorAffect the perceived opinion of the level of Costa’s safety
  3. Make bigger!
  4. K  B Because according to research, we found that the people in Giglio Island who were interviewed said that the main threat they see to their livelihoods from the Costa shipwreck is the possible pollution. Therefore, if our team can ensure that waters are clean among other things and tourists to Giglio are aware of this, then their livelihoods in tourism and fishing will not be threatened.
  5. No behavioural change because the cancellations (5% is normal) , pre-empted and sales is normal
  6. Expand on point of media specialists
  7. Communication strategies will work publicised through social media because of these statistics
  8. Sales: Assuming all else constant, we want to ensure that the attitude change provides tangible outcome