EXPLORER
A marketing plan is the realisation of a marketing strategy. One reason into why a marketing plan would be suitable for Cruise Line PLC is because it allows them to pinpoint their potential customers. Subsequently, allowing them to alter their product against their needs and wishes. By reacting to customer needs and wants it could lead to an increase in sales which would lead on to an increase in revenue, profits and ultimately improve their financial situation which is declining. This means that it will take them closer to their main objective of achieving 20% market share. Another significant reason into why a market plan would be beneficial to cruise line is that their project acquires a high risk as they are entering the unknown with a mixture of product development and diversification meaning that they are targeting new customers which they know little about. The risk is further heightened as 75% of their investment is based on loans which lead to additional costs through interest payments, further declining their financial position. Their acid test ratio is also 0.2:1 which is deemed low and implies that for every pound of liabilities they only have 0.20p. Consequently, by utilising a market plan not only can the business see if it can afford the new project, but it will help them manage their strategy for attracting the new customers an ultimately help them reach their main objective of 20% on average in market share for five years.
On the other hand, it must be pointed out that their shouldn’t be over reliance on the market plan as the market research obtained may be secondary and inaccurate, leading to wrong decisions. External factors may also play a role such as the state of the economy. For instance, if the economy is a recession there will be a lack of demand. Ultimately, this will affect the business means that sales will drop as the cruise industry is a luxury meaning that it’s an inelastic product therefore demand for the product will...