Communication has become crucial in Costa Cruises (the Italian cruise company owned by Carnival Corporation). In recent events, the Costa Concordia keeled over off the Italian coast near the island of Giglio in Tuscany, Italy, in January 2012 and the Costa Allegra was hit by fire and drifts in the Indian Ocean a few weeks later. Captain Schettino's preliminary abandoning of the Costa Concordia as well as his denial to return onboard the sinking ship brought into question the competence of the company crew as well as the effectiveness of recruitment procedures. After a few days of the company stressing that the complete responsibilities of the accident were attributed to the captain, Costa Cruises decided to suspend all social media activities as a sign of respect for the victims and as an attempt to prevent inappropriate comments. However, the lack of disclosure and the distorted information coming from other media aroused contrasting reactions by customers, some of whom expressed solidarity and closeness to the victims as well as to the company, and others who were upset and frustrated by the company's silence. Later, in collaboration with the communication agency Burson-Marsteller, Costa Cruises decided to launch an exceptional communication campaign to defend the company's reputation and market share in
Communication has become crucial in Costa Cruises (the Italian cruise company owned by Carnival Corporation). In recent events, the Costa Concordia keeled over off the Italian coast near the island of Giglio in Tuscany, Italy, in January 2012 and the Costa Allegra was hit by fire and drifts in the Indian Ocean a few weeks later. Captain Schettino's preliminary abandoning of the Costa Concordia as well as his denial to return onboard the sinking ship brought into question the competence of the company crew as well as the effectiveness of recruitment procedures. After a few days of the company stressing that the complete responsibilities of the accident were attributed to the captain, Costa Cruises decided to suspend all social media activities as a sign of respect for the victims and as an attempt to prevent inappropriate comments. However, the lack of disclosure and the distorted information coming from other media aroused contrasting reactions by customers, some of whom expressed solidarity and closeness to the victims as well as to the company, and others who were upset and frustrated by the company's silence. Later, in collaboration with the communication agency Burson-Marsteller, Costa Cruises decided to launch an exceptional communication campaign to defend the company's reputation and market share in
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Transcribed Image Text:Case Study : Neutralizıng the Concordia Effect
Communication has become crucial in Costa Cruises (the Italian cruise company owned by
Carnival Corporation). In recent events, the Costa Concordia keeled over off the Italian coast near
the island of Giglio in Tuscany, Italy, in January 2012 and the Costa Allegra was hit by fire and
drifts in the Indian Ocean a few weeks later. Captain Schettino's preliminary abandoning of the
Costa Concordia as well as his denial to return onboard the sinking ship brought into question the
competence of the company crew as well as the effectiveness of recruitment procedures. After a
few days of the company stressing that the complete responsibilities of the accident were attributed
to the captain, Costa Cruises decided to suspend all social media activities as a sign of respect for
the victims and as an attempt to prevent inappropriate comments. However, the lack of disclosure
and the distorted information coming from other media aroused contrasting reactions by
customers, some of whom expressed solidarity and closeness to the victims as well as to the
company, and others who were upset and frustrated by the company's silence. Later, in
collaboration with the communication agency Burson-Marsteller, Costa Cruises decided to launch
an exceptional communication campaign to defend the company's reputation and market share in
the highly competitive and global cruise market. This time, the strategy was based on a complete
disclosure of all rescue operations on social networks. Here are some examples of the actions
undertaken:
1) continuous updates via social media on the rescue, recovery, and safety operations as well as on
the assistance provided to the guests and their families in order to document the status of relief
efforts;
2) information on the strategy for the removal of the wreck;
3) the reduction of the environmental impact of the accident; and
4) diligent communication of the protection of the island's eco-system (seriously threatened by
heavy fuel oil).
The news of a friendly and successful negotiation for settling the initial compensation package for
passengers of the shipwreck was promptly communicated with official press releases. The
announcement of new safety measures was given during a ceremony celebrating the delivery of
the company's new S665 million flagship Costa Fascinosa. Indeed, the number of bookings
reserved four months later, showing an increase of 25 percent from what they were at the same
time the year before was a big sigh of relief for Costa Cruises' executives.
QUESTION
Discuss the steps that Costa Cruises could have taken to create an effective digital
communication strategy
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