Questions

1. MSC ventured into passenger cruises in 1989 with acquisition of Lauro Lines, rebranding it as MSC

Cruises. What type of brand extension does this venture involve? What is the major benefit and risk

(discuss one benefit and one risk) related to this venture/branding choice?

2. Among the three pricing strategies discussed in the text, which would work best for MSC Cruises,

given their overall market share growth goals? Why?

3. Which product mix pricing strategy(ies) does MSC currently use? Discuss the benefits and

limitations of this strategy to maximize the profits from its total product mix.