Cunard Line, Ltd.

Managing Integrated Marketing Communications

Presented By:
Hassaan Qadir Sadaf Shahbaz Sana Munir

Cunard Line Ltd.

Cunard was the first company to make regular scheduled transatlantic crossings and can, therefore, claim to provide the first cruise service. Its the name that evokes a sense of that golden age of ocean travel. Today, it maintains the reputation for providing the very best service and voyages and does so with the newest fleet at sea

Company History- 1992

World Wide provider of travel services Cruise and steamship business Eleanor Leslie, Vise Prsident Subsidiary of Trafalgar House Founded in 1840 Positioned as Luxury Vacation Business User Appeal: Luxury and fun at interesting vacation-oriented ports

Cunard-The Ships
Cunard offered cruising on seven ships Luxury (5-star) category: - Queen Elizabeth 2, Sagafjord, Vistafjord, Sea Goddess I, Sea Goddess II Premium ( 4-Star) category - Cunard Countess and Cunard Princess

Sagafjord and Vistafjord ultra-luxury cruisers Capacity: 550750

Queen Elizabeth II finest cruise ship ultra-luxury 1850 passengers Cunard Countess and Princess Less formal and less expensively priced 800 passengers

Sea Goddess I & II intimate ultimate deluxe cruising 58 couples $800.00 per person per day

The Industry and Cunards Segments

Cruise industry: 4 million boardings / year Luxury segment: (5-star) approximately 8% 10 luxury ships worldwide (5 Cunard ships) - Cunard has about 50% market share Luxury Cruises: Expensive and growth at 10% per year In 1991- Industry capacity exceeded demand Discounting and price promotions

Cunard Marketing and Marketing Communication

Cunard success: Corporate Culture, Excellence and elegance Marketing Communications Mission: to develop and maintain Cunard image and to create demand to fill each cruise ( 100% )

Marketing budget: $20 million - 50% strategic, 50% tactical Short term sales generation

Direct mail- 25%

Mass media advertising- 35% (magazines, news papers) Brochures and Travel Agent Cooperative Spending- 35% Public relations and promotional activities- 5%

Integrated Marketing Tools

Sana Munir

Cunard Line
Target Markets: Educated, married, literary magazine reader Luxury- 55 years (Top 3-5% income) Premium- 45 years (upper 20-25% income) Media Message: To create look, touch, and feel of cruising Tools: Direct marketing, Database management Target: $25,000 annual income Budget: Bottom-up approach Individual ship marketing manager: Sales revenue target, marketing expenditures

Integrated Marketing Communications

Common look and feel to all Cunards promotions (news paper, magazine ads) Establishment of umbrella brand- CUNARD Common family visual impact Achieve consistent look Emphasis on elegance and sales-oriented advertising Pressure to fill ships and price oriented approach.

Current concerns- 1992

Create short-term sales Transition from high-brow image to action oriented Feb 26th great success of one day sales Organizational Change: Different organizational alignment by grouping ships
Elegant, 5-star cruising the QE 2 Ultra deluxe cruising 5-star-- Sagafjord, Vistafjord Less formal- less expensive Cunard Countess and Cunard Princess Yatch-like Sea Goddess I, Sea Goddess II

Leslies Dilemmas
Whether the company should repeat one day sale activity? Effect on Cunards image? New organizational alignment:
Dilution of overall Curnard Brand More emphasis towards individual products Less central control over marketing communication Less integrated communication between products and various media

Issues To Face
To keep integration intact under umbrella of Cunard and sustain brand image

Face Price war among rivals

Budget for corporate Cunard effort

Sadaf Shehbaz

Dilemmas and Solutions

1 :How to sustain and enhance Brand identity?

Strategic focus on 5 star cruise

Consistency in marketing communication (single look & message)

Umbrella Branding

Dilemmas
How to generate short term sales leads?

Tactical focus on 4 star cruise

IMC through direct and indirect marketing channels at the same time

Use of Brand name

Dilemmas
How to Achieve integration in Cunard

No Internal reorganization (grouping)

Central control

Use of information system (databases)

Dilemmas
How to cater price war among rivals?

Personalized Services

White collar services

Extreme convenience