BAILING: KLOSTER PINS HOPES TO NORWEGIAN, ADS

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Kloster Cruise last week moved to stave off further financial losses by cutting $25 million in duplicate expenses. But it's leaving advertising intact.

The company is abandoning the upscale segment by closing Royal Cruise Line and transferring three ships into the mass-market Norwegian Cruise Line. The parent company will be renamed Norwegian Cruise Line.

In other words, the cruise company is going with its strength.

Norwegian's "Out here" campaign, featuring provocative poses and sexually alluring themes, has been an award-winning effort. Goodby, Silverstein & Partners, San Francisco, handled advertising for both Norwegian and Royal.

The ad budget is expected to remain at about $20 million because the Royal line had been given little support.

"There's really no need to change any of our .*.*. creative," said Bruce Mainzer, VP-marketing for the Norwegian line. "We'd be nuts to change it."

Later this month, the company will launch its first repositioning campaign for the trade. Consumer ads addressing price and product will follow in early February.

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