Cunard Line, Ltd.

Managing Integrated Marketing Communications

Presented By:Hassaan QadirSadaf ShahbazSana 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: 550-750

Queen Elizabeth IIfinest cruise

ship ultra-luxury

1850 passengers

Cunard Countess and

PrincessLess formal and less expensively

priced800 passengers

Sea Goddess I & II

intimate” ultimate deluxe

cruising58 couples $800.00 per

person per day

The Industry and Cunard’s 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 Co-operative Spending- 35%

Public relations and promotional activities- 5%

Integrated Marketing Tools

Sana Munir

Cunard Line…• Target Markets: Educated, married,

literary magazine readerLuxury- 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 Cunard’s 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

Leslie’s Dilemmas• Whether the company should repeat one day sale activity?• Effect on Cunard’s 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 cruiseConsistency in marketing

communication (single look & ‘message’)

Umbrella Branding

How to generate short term sales leads?

Dilemmas

Tactical focus on 4 star cruiseIMC 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