MKTG6002 Marketing Report: The World Residences at Sea Analysis

This report provides a comprehensive marketing analysis of 'The World Residences at Sea,' the world's only private residential cruise ship. The report begins with an executive summary and table of contents, followed by an introduction that describes the ship and its unique position in the market. It then delves into the value propositions, core brand values, and buyer behavior of the ship's exclusive clientele. The micro-environment is examined, including the company, suppliers, relevant public, and competitors. The macro-environment is analyzed through demographic, economic, natural, political, technological, and cultural factors. A SWOT analysis is conducted to identify strengths, weaknesses, opportunities, and threats. A TOWS matrix is included to show how to leverage strengths and opportunities, and how to mitigate weaknesses and threats. The report concludes with a summary of findings and recommendations, along with an appendix and references.

Running head: MARKETING
Marketing
Name of the Student
Name of the University
Authors note

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Executive summary:
The World residences at sea are the only private residential cruiser existing on earth, which is
only accessible to some most exceptional wealthy class people who avail its facility. The ship is
designed by Knut U. Kloster who is a Norwegian shipping magnate. This has launched in 2002,
march, in Oslo. Being the only one of its kind, it gives its customers the unique world-class
experience of staying aboard. The market till now does not have any competitors of this cruiser
but there there is an emerging one named, Utopia, which can be a threat to it.

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Table of Contents
Executive summary:........................................................................................................................1
Introduction:....................................................................................................................................3
Value Propositions of The World residences and sea:....................................................................3
Core brand values:...........................................................................................................................3
Buyer Behaviour:.............................................................................................................................4
Micro-environment:.........................................................................................................................4
The Company:.........................................................................................................................4
Suppliers and intermediaries:..................................................................................................5
Relevant public and customers:...............................................................................................5
Competitors:............................................................................................................................5
The macro-environment:.................................................................................................................5
Demographic factor:................................................................................................................5
Economic factor:......................................................................................................................6
Natural Factor:.........................................................................................................................7
Political Factor:........................................................................................................................7
Technological Factor:..............................................................................................................7
Cultural Factor:........................................................................................................................8
SWOT analysis:...............................................................................................................................9
Strength:.......................................................................................................................................9

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Weakness:....................................................................................................................................9
Opportunity:.................................................................................................................................9
Threat:........................................................................................................................................10
TOWS matrix:...............................................................................................................................10
Strength and Opportunity:.........................................................................................................10
Weakness and Threat:................................................................................................................10
Conclusion:....................................................................................................................................10
Appendix:......................................................................................................................................11
References:....................................................................................................................................11

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Introduction:
“The World residences and sea” is the earth’s most massive cloistered and only private
residential cruiser in the world. It was built by Forsen Mek. Verksteder and designed by Knut U.
Kloster and launched in 2002 march in Oslo, Norway. Its grandeur and scale give the feel as if it
is the Titanic of the 21st century. It is the home for 165 residences. This world’s largest vessel has
visited about 1213 ports and 6,41000 of nautical miles. This paper analyses the situation of this
private cruiser in the market.
Value Propositions of The World residences and sea:
This yacht is operated by ROW Management limited; their headquarters are in Fort
Lauderable based in Florida, US. The ship comprises 165 residences starting from the single
cosy bedroom to spacious three-bedroom apartments; also there are rooms with three bathrooms
facility alongside six-bedroom penthouse. The design is of next level, and it's noticeable how
much effort and innovation has been going through this piece of works. There are separate
entertaining areas alongside the swimming pool which has a dancing area and fresco dining
available as the ships exterior walls are retractable. There is also a very fantastic quantum bar,
pilate studios are also there along with a full-sized tennis court (Verksteder, 2020).
Core brand values:
The brand value of this world-class luxurious cruiser can be sensed by the costs of the
apartments of it and the services facilities that it provides. If money is not an issue for someone
than this yacht is just the proper ticket to go for. Each apartment might cost around 825000
dollars to 7 million dollars, which is equivalent to almost 170 lux high-end shipboards (Brida, et
al. 2014). A community consists of wealthy international guests avail this facility and spends

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extensive time exploring the world most exotic travelling destinations which can only be
afforded by the most affluent people existing on earth.
Buyer Behaviour:
The buyers of the cruiser residences are premium wealthy people from all around the
world. However, majority people of the world don’t have any access to it or cannot afford it
anyway, as it this requires buyers who are ready to pay $900000 at any point and holds an asset
of around $10 million minimum. The buyers and owners are minimal regarding this property
also the people who are aged around 55years to 65 years old mostly avail this residence. In such
a feature, etiquette is everything (Chin, 2016).
Micro-environment:
The Company:
‘The World residences at sea’, the most massively luxurious giant residential
cruise in the world is designed by Knut U. Kloster, who is the shipping magnate of
Norwegia. His main aim of designing this residential ship is to add an exclusive highly
prestigious luxury piece in the cruiser line. Innovation and craftsmanship are evident in
every part of the cruiser. The vessel is six forty-four foot long. However, the project was
taken over by the investors, as in the year of 2003, the values had considerably swarming
(Dawson, Johnson & Stewart, 2014). The ship has become the earth’s most significant
privately owned cruiser, as those investors had bought apartments on the residential ship
aboard. In terms of the highly luxurious residential ship. It has a very highly checked
security base and only selected elite class people can enter the ship (Carić, &
Mackelworth, 2014).

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Suppliers and intermediaries:
The ship is owned by a community of owners from different, half of them are from
America and one third from London. The maintenance of the ship is the responsibility of the
owners of the residence only (Gibson & Perkins, 2015). The ship stays on the sea and ports and
visits the dock once in three years just for repairing purpose. The expenses regarding the ship are
beared by its owners who avail the property.
Relevant public and customers:
The ship’s availability is only restricted among the wealthiest people existing on earth,
and all other people around the world are out of its accessibility. Also, its customers are those
who are extremely rich and have at least $10 million as capital, which shows that the customer
base is minimal, and its customer is among the 55 to 65 years old wealthy people (Heuer, 2014).
Competitors:
Utopia is another giant residential cruise is a great competitor of The World.
The macro-environment:
Demographic factor:
This largest vessel on allowing the world’s most exceptional wealthy class people to avail
the property. The ship sails at sea all year round and it returns to the dock only for repair once in
every three years. It has visited about 20 countries and 100 ports in the year 2017; it has charted
almost about 44000 nautical miles; starting from Australia and visiting East Asia on its way
crossing Central America and Western Canada, then passed through Panama Canal to finish the
year in Miami (Kang, 2016). From the Russian Prime minister, it obtained the permission of

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gliding in Provideniya Bay. The itinerary also involves an expedition to the Ross Sea off
Antarctica on January. Its next agenda includes Cape Verde, Brazil, Norway’s rugged Svalbard
archipelago, the Mediterranean and the new year celebration of the year 2019 on the southern
African tip. Unlike the other ships which stick to their regular route of sailing, The World
residences at sea’s destination and route changes every single year, which is decided by the prior
system owner votings. The owner community of the ship hails from 19 countries, and they
belong to the 55-65 age group, one-third of the owners are from Europe and half of them are
from America. A world has broken a record on January 28, 2017, that The World residences at
sea have travelled the furthest core of the south by pushing in the depth of the waters of the
Antarctic of the Ross Sea, where no ships have reached in the history (Mileski, Wang &
Beacham, 2014).
Economic factor:
This cruiser has restricted availability only to some limited wealthiest people on earth
who have at least $10 million in assets, the purchasers who want to buy a residence here are
bound to go through an extreme process of a background check and have to pay the annual
maintenance charge of $900000. This luxurious property is not accessible to the majority of the
world people, so the profit is depended only on those limited people and the owner's community
(Papathanassis, 2017). This is one of the priciest real estate possession floating on open water; I
have the owners from different countries like Europe and America, who bear the expenditure and
maintenance of the vessel which runs under thousands of dollars. The management disavows the
information of tax welfares accompanying spending most time of the year on international water.

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Natural Factor:
In terms of natural factor, the risks of living on aboard a residential ship cannot be
denied. There is a various natural phenomenon that can cause damage not only to the property
but also to the lives that it is carrying. Some common viruses affect people sailing on the water
and are highly spread; this kind of situation can cause significant danger as specialized
treatments are not available onboard. Also, some natural phenomenons which are not in humans
control can effectively become a huge risk factor for humankind (Perry & Weber, 2015).
However, staying aboard on a ship is one of a kind experience in comparison to staying on land
which most people do. People living on a ship will evident a new scenery from their window
each morning which is not possible on the ground; it is gliding to the different corners of the
planet. Therefore this piece of property has its pros and cons.
Political Factor:
This vessel is a brainchild of Knut. Kloster Jr. who is a Norwegian designer, whose father
has founded the company Norwegian Cruiser Line Holdings, Ltd. created in Rissa, Norway,
which clearly states that this cruiser belongs to Norway. On the same year, the residents of the
ship have taken over the ship and bought out the previous owners. 142 families hold a Bahamian
companies share who owns the cruiser. However, this premium property has owners from many
countries; half of them are from the US and one third from London (Strazza et al. 2015).
Technological Factor:
Regarding the technical factor, being the world’s only most largest and finest residential
cruiser it requires some of the most most excellent technologies from all around the world in
terms of its operating process. The electrical power bundle is a necessity to run the cruiser;
however, a complicated propulsion procedure is not needed. Its foremost engines are comprised

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of two Wartsila W 12V32 units, its every one generating 5520kW power at 720rpm. The core
engines are processed through a pair of two speed GCE1160 Flender Reduction gearboxes to the
propellers, which have 4 bladed Wichman Cp 115 units along with Wichman Wichmatic 2
Propeller Controls. To lessen the vibration and noise is paramount, consequently, propellers are
turned in an inward direction, while the geometry of the propeller blade has been intended to
enhance noise reduction. To manoeuvre the yacht has two Brunvoll FU80LTC2250 1200KW
thrusters located forward and Brunvoll FU63LTC1750 700Kw located aft. The cruiser can
achieve the rapidity of 19 knots using the jam-packed power engines (Cashman, 2017). A speed
of 17knots is given by it if its using 8000kW along with the propellers consecutively at 120rpm.
The electricity is generated with a pair of Leroy Somer LSA 58 M75-10P generators, each of
which produces 4308kVA of power. The World is identified in the Bahamas and categorized by
DNV under the notation +1A1 Passenger Ship EO, 1C COMF-V 1W1.
Cultural Factor:
In terms of culture, the cruiser is only availed by the wealthy people among the planet, so
it is all about etiquettes and maintaining elegance and reputation. This ship allows only selected
people around the world who hold at least an asset of $10 million. Majority of the world people
are not even accessible to it, and also they can not afford it at any cost. The cruiser visits many
countries international water, so it is safe to say that it holds a mixed elite culture. People mostly
belong to 55 to 65 years age, avail the property, which also affects the cultural factor. The eerie
inside it is, however, extremely high profile and rich (Gibson & Parkman, 2018).

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SWOT analysis:
Strength:
Being the planets only existing residential cruiser the strength factor is massive as it still
does not have not a competitor in the market; it is one of its kind. It is comprised of one of the
most exquisite interiors and technology which makes it the most luxurious property floating on
international water. It has all the world-class facilities available which anyone could ever think
of.
Weakness:
Besides of having so much of facility and luxury, there are some downsides as well,
living at sea it extremely costly even among elites. Another disadvantage is, no matter how
spacious it is but it can never be compared to the land space, it has a restricted area which can
create boredom, the entertainment they provide gets boring due to lack of innovativeness. All
medical facilities are not available on the ship; people who are in good health can enjoy the stay
comparatively with who are aged and ill and will need some specialized treatment. Another
downside is it is only for wealthy people.
Opportunity:
A news regarding apartment sale on such a highly coveted property will cause a stir in the
commercial market among the other wealthy people, since 2002, this luxurious cruiser is only
serving the affluent class people as the costing was six times figures in comparison to a regular
residence aboard; however, a new entrant to the market storylines added The World is making
their residences accessible to a more significant number of wealthy people by lowering its cost.

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Threat:
The parallel ship named Utopia can be a significant threat to the residential giant The
World; however, it is yet to launch expectedly in 2021. Other threats for The World are the other
residential destinations; if the risk factor of staying aboard keep on increasing and is not
regulated time to time, people will automatically shift to the land destination for residence, which
will result to a considerable loss of the property.
TOWS matrix:
Strength and Opportunity:
It should get access to more people which will make it even accessible and profitable and
should keep on upgrading its facilities to maintain its position in the market.
Weakness and Threat:
It must keep on adding new innovativeness to attract customers so that emerging
competitors like Utopia do not exceed its level of excellence in the market.
Conclusion:
Hence, in conclusion of this analysis by evaluating its strength, weakness, facilities,
threats and other points it can be considered that the positioning of the company in the market is
concrete; however, it can get affected if it has not been upgraded now and then along with
making it accessible to more people, as similar cruisers are emerging in the which can give it a
tough competition.