Ocean Village is targeting a younger demographic than is traditionally associated with cruises and the liner incorporates more bars and entertainment to attract the new audience.
The holiday is designed to appeal to couples who enjoy sports and activities as well as relaxing by the pool, rather than pensioners and the middle aged who go cruising for the quoits and drinks with the captain.
The launch, and its attempt to find a new audience, is in part a response to the downturn in bookings following the terrorist attacks of 11 September. At one point, bookings were down 70 per cent.
P&O has spent £5 million revamping its Arcadia cruise ship for the one- and two-week holidays, which start in May next year. Ocean Village will initially sail two alternating itineraries out of Palma in Majorca to other destinations in the Mediterranean.
The cruises will offer travellers chances to learn scuba diving, cookery and wine tasting.
P&O is expected to launch the brand in April with a flurry of press and television advertising.
The CHI partner, Johnny Hornby, said: "Ocean Village is a big idea and I can't remember the last time there was a big idea in the travel industry."
The review was overseen by Agency Insight.
Starcom Motive already works with P&O Cruises and Princess Cruises, while Miles Calcraft Briginshaw Duffy looks after creative. BLM Media works for P&O's other brand Swan Hellenic.
P&O recently reviewed its PR activity and last month appointed the digital media agency Rufus Leonard to create a website.