Cunard Line Ltd.

:
Managing Integrated Marketing Communications

Submitted By: Group K

 Case Facts
In Business Since 1840
Subsidiary of Tarafalgar house
Cruise and steamship business
Prior to advent of Jet Travel Provider of travel services particularly between
Europe and North America.
No of ships 7 :
5 Luxury( 5 star ) - QE2, Sagafjord Ultra Deluxe , Vistafjord Ultra Deluxe , Sea Goddess 1 , Sea
Goddess 2
2 Premium(4 star) - Cunard Princess , Cunard Countess
 Geographical Segmentation

Passengers Sailed From

Europe :40 %
North America : 55 %
Others : 5 %
60% of the companys business was with passengers domiciled in the
United States
Around 95% of Cunards customers booked through travel agents
 The Industry and Cunards Segments
Shipping Industry
Volume : 4 million boarding per year
Luxury Segment (5 star) : 8 % of the total (Cunards share 50 %)
Other ships in Luxury segment - Seaborne (2), Royal Viking (2),Crystal (1)
Price Range
QE 2- $3000-$15000 per person (in high season),$2400-$12000 (in low season)
Cunard Princess/Cunard Countess- $1700-$6500
 Cunard Marketing Communications
Overall Marketing Communication budget -$20 Million
Strategic - Oriented towards building the brand or developing the distinctive image of each
ship
Tactical - Directed to stimulating bookings on a particular cruise
Breakdown among major communication elements
Direct Mail- 25%
Mass Media -35%
Brochures and Travel agents cooperative spending -35%
Public Relations and Promotional Activities- 5%
 Sale-Oriented Format

Sales promotion should not be used aggressively as using that for 5 star
cruises would dissolve the image of the company
Discounted prices and freebies are not recommended to maintain the
position and elite image the company commands
The company should continue with high emphasis on strategic component
with slight push towards tactical
Repeated use of short term offerings may induce negativity in the minds of
potential and existing consumers towards the brand.
 Cunard Identity versus Individual Ships
Leslies view is to promote Cunard name and all ships under single umbrella
Leslie used common graphics approach while advertising
But this can be used while doing strategic marketing
CURNARD IMAGE-Luxury, Very British, Formal
Tag line-We are not the best because were the oldest,Were the oldest because
were the best
 Cunard Identity versus Individual Ships
Impending Organizational change-Product Manager for each group of ships
Leading to target particular market for particular group of ships
This approach can be used for sales/Tactical promotion.
Target Segments-5 star-Age above 55 years-Top 3% to 5% income class
-4 Star-Age above 45 years-Upper 20% to 25% income group
--Database maintained can be used for targeting particular segment.
 Marketing Communications Elements
Give more emphasis on promotion through travel agents since 95%
customers booked cruises through them
Due to the prevailing economic crisis, direct marketing should be employed
more in the short term, but taking care as not hamper the brands position in
the market
In long term, advertising through mass media channels and direct marketing
should receive less emphasis to preserve brand image
 Implications of one-day sale
In the short-term, sales increased
In the long term, such sales can hinder Cunards positioning as a luxury brand
Repeated instances of such sales could lead to dilution of Cunards status as a
luxury brand
Cunards target market is high-income customers, who may lose preference in
Cunard due to brand commoditization
One-day sale may be perceived as degradation of the quality of service which
differentiates Cunard
 Effects of Organizational changes
Earlier each ship had been marketed by a marketing planning executive.
In the proposed alignment, the ships were divided into four groups in
accordance to type of cruise or services offered
Within each of these groups would be an executive responsible for both
strategically and tactical marketing planning
The objective of the proposed structure was that each group would be able
to focus its resources on a particular target market
 The new structure would
Assist travel agents to know each ship distinctively
Focus and use resources more efficiently
But this change could dilute the overall brand Cunard as it will develop the
consumers knowledge and attitude towards the individual product rather than
towards Cunard.
Central control over the specifics of marketing communications would decrease as
profit responsibility will be centred on these new groups
It will be also difficult to maintain the integration of marketing communications
among the products and across various media