Spectra PRFor the issue:

Costa Concordia 2012

Members

Charmaine ChanAmanda SohAlicia 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 environmento 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 AnalysisSTRENGTHS WEAKNESSES

• Strong financial reserves - Carnival

• Good track record• Strong ties with Italian

government• Leader in industry

• No crisis management system• Lack of checks and balances

across operations• Lack of control mechanism for

sailing cruise ships

OPPORTUNITIES THREATS• PR advice: Burson Marsteller• Extensive traditional / social

media outlets available• Partnership with Italian

government for CSR efforts

• Environmental activists rallying against Costa

• Class action lawsuit (Codacons)

• Extensive press coverage of controversies (negative publicity)

SWOT PairingsO-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 StatementOn 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 StandCosta 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.

Future Custome

rs

People of Giglio Island

Publics Affected

Victims and their Families

Environment Activists

The Internation

al Media

Stock-holders

Future Customers

People of Giglio Island

Our Target Publics

Future Custome

rs

People of Giglio Island

Our Target Publics

Victims and their Families

Environment Activists

The Internation

al Media

Stock-holders

Our Target PublicsThe People of Giglio Island Future Customers of Costa

CruisesDefined as:

• Italians residing on Island of Giglio

• 3 villages, 27km of coastline• The Tuscan Province of

Grosseto• Livelihoods:

Fishing and tourism (diving)

Defined as:

• American cruise-goers• English-speaking• Median age of 40-59• With min annual household

income of USD 90 K

Main concern: The environment of Giglio Island and hence their livelihoods

Main concern: Poor safety standards and 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 Giglioto 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

Knowledge

To increase American and

Italian tourists’ awareness of the clean-up

and containment

efforts at Giglioto 90% by 1st

May 2012

Attitude

Behaviour

To ensure the livelihoods of the people by

restoring Giglio Island’s

summer tourism

numbers from 100 per week

to 250 per week within 12 to 18 months

People of Giglio Island

Restoring Giglio Island:Pairings Action Strategies

S-T Tap on strong financial reserves to fund measures to protect Giglio’s environment and address environmental activists’ concerns, in partnership with Giglio government.

Strategy 1:

Implement steps to restore the coast of Giglio and establish long term sustainability measures to preserve its coastal environment

T-O Consolidate the negative reporting in the international press regarding Giglio’s landscape and partner the Italian government to address it.

Strategy 2:

Partner the Giglio government in a tourism campaign

Restoring Giglio IslandStrategy 1:

Take steps to restore the coast of Giglio

Establish long term sustainability measures to preserve its coastal environment

Tactics:

1. Engage SMIT Salvage to protect the coast

2. Costa Concordia Memorial Foundation

Restoring Giglio IslandStrategy 2:

Partner the Giglio government in a tourism campaign

Tactics:1. Italian tourist campaign2. North American tourist campaignBoth 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;

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

Future Customers

Knowledge

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;

Attitude

To raise potential American travellers’ positive opinion of

Costa Cruises’ safety to 60% by 1st April

2013

Ensuring Safety: Pairings Strategies

S-W Use available funds to reform all safety procedures in Costa Cruises’ ships

Strategy 1:

To overhaul the safety and security protocol of Costa Cruises

W-S Transform current lack of checks and balances into accountability as part of Costa Cruises’ reputation

Strategy 2:

Increase the accountability of all crew members

Future Customers

Strategy 1:Overhaul safety and security protocol of Costa Cruises

Tactic:Hire “The Nexus Consulting Group of Alexandria” to overhaul safety, security and accountability protocol

Future Customers

Strategy 2:Increase the accountability of all crew

Tactics:1. All course deviations to be ratified by First Mate and on-shore duty personnel

2. Two staff members (on land) on 24-hour duty, to maintain constant contact with all Costa vessels at sea

Communication Strategies• Knowledge Objectives

for :o The people of Giglioo Future customers of

Costa Cruises (American)

• Three media channels:o Traditional media: Presso Owned media: Weblogo Social media

W-O Constantly broadcast changes to safety and security protocol on traditional and social media platforms

Communication Strategies

PressoManaged by media specialist teamoSend out fortnightly press releases•Updates on new safety protocol / measures •Updates on coastal restoration

oReach: 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 passengerso Potential customerso Environmental watch groupso Giglio residentso Tourists

Communication Strategies

Social Media• Facebook:

o Costa Cruises – 18, 000 ‘fans’o Carnival Cruise Line – 1.6 million ‘fans’

• Twittero 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 GiglioKnowledge Objective: Awareness of pollution containment and clean-up of Giglio coastline

o Hit counter on weblog (165, 000 unique hits)

o Shares / Likes / Retweets on Social Media (40%)

Behavioural Objective:Change in behaviour of tourists

o Compare stats of summer 2011 with summer 2013o Number of tourists

visiting Giglioo Number of dive

trips organizedo 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

• Tripadvisor.com

• Cruisesonly.com

Under theAmerican Society for Travel Agents (ASTA)

• Americans booking cruises

• Age 40-59(mean demographic)

12 months after campaign is implemented

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 customerso Qualitative Method – Focus Groups

• Monitoring sales figureso Compare cruise bookings of Costa Cruises in 2013 with

2011

Thank YouFor Your Attention!