CUNARD LINE LTD

Made by:
Ridhima Kalra
Rishabh Anand
Tanisha Methi
Aena Doda
Samanvay Parashar
 OVERVIEW
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CONSULTANTS
Targeting :
The target markets for the several ships differed somewhat.
• For the luxury (5-star) ships it was people over 55 years of age and in the top 3%-
5% income
• For the 4-star ships, the target population was 45 years old and up and in the
upper 20%-25% of income.
• Target market individuals were also well educated, married, and heavy magazine
readers.

Industry and Segments:

• Cunard had 50% market share in the luxury segment (which was 8% of the
cruise industry).
• 5-star ships of Cunard included Seaborne, Royal Viking Two and Crystal One.
• Major difference between 5-star and 4-star ships was the dinning arrangement.
• Cunard also had top grade cabins on thirty 4-star ships than were of 5-star level in
calibre and price.
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CONSULTANTS
4-M’S OF MARKETING
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CONSULTANTS
MISSION

MEASURE
MONEY

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CONSULTANTS
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 MISSION
• Mission of Marketing Communication Department- Develop
and maintain the Cunard’s image and support ship's planning
managers in their marketing activities.
• Cunard's overall marketing communications budget of $20 million
was divided into 2 parts-
A. Strategic- Oriented towards building the brand
B. Tactical- Directed to stimulating bookings on a particular cruise
• Breakdown among major communication elements-
a) Direct mail- 25%
b) Mass media- 35% ( 70% strategic and 30% tactical)
c) Brochures and Travel agent Co-operative Spending- 35%
d) Public relations and Promotional Activities- 5%

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CONSULTANTS
COMMUNICATION CHANNELS
Direct Marketing
• Database management was a vital part
of targeting prospects
• Using on- board questionnaires, that
had demographics and psychographics
Cunard mapped their past customers.
• These demographics and
Psychographics were matched with
census data and proprietary lists to
narrow down targeting.
Integrated Marketing Communication
• The Promotional efforts should have a
common visual impact. Everything
should come under the umbrella of
CUNARD
• Second dimension was consistency
between Strategic and Tactical
marketing communications.
A) Common graphics approach was
adopted wherein a manual was published.
B) Cunard's advertising agency developed a
distinctive layout for Magazine
advertising. It adopted "page plus a
column" size for its magazine
advertisements. FIRST UP 7
CONSULTANTS
 MEDIA & MESSAGE
• The advertising adopted by Cunard was strategic and oriented
towards maintaining and building the long term image of ships
and the Cunard identity.
• They used four-color advertisements that presented the ship, it's
food, it's activities and satisfied customers through rich
photography.
• Direct marketing was used primarily when the reservation
deadline for cruise approached.
• The brochures were used for two purposes-
I. To educate the potential customers
II. To create the desired image of the ship
• Newspaper advertising was used as tactical marketing. With an
elegant look and proper message, the objective was to create
immediate inquiry and sales for specific ships and cruises.

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CONSULTANTS
MONEY
Budgeting
• Budgeting process was
bottom-up
• Budget which included both
sales revenue targets and
detailed marketing
expenditure was presented by
Marketing manager to Line
Managers, which went
forward to Top management
for further review.

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CONSULTANTS
 Retain Image Optimal Mix
Retaining current brand Searching for the
image and outshining its optimal mix of tactical
competitors and strategic branding

PROBLEMS Budget Uniformity

Allocation Maintaining uniformity
Defining and distributing in communication efforts
the budget for market Unfavourable impact of
communications and organizational change .
branding FIRST UP 10
CONSULTANTS
 • Continual pressure to use more promotional
CURRENT techniques to generate revenues in short run
• Making the advertisements more action
CONCERNS oriented (Exhibit 12 and 13 depict two instances
of the usage of integrated communications to
bolster profits)
• Persisting Challenge faced by Leslie- To create
urgency and persuasiveness among consumers by
tactical promotions without detracting the image
created.
• Leslie’s Dilemma-
i. To maintain the effectiveness, integration and
coordination of Cunard’s marketing
communication efforts
ii. To articulate a defensible, rational budget
formula for marketing communication and
promoting Cunard branding

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CONSULTANTS
SWOT ANALYSIS
• Good Brand image • Resources use more for
• Luxury cruising developing consumer
• Wide range of customer- knowledge towards
oriented activities individual products (groups)
• Marketing communication to
become less central
• Difficult to integrate and
maintain marketing
communication for all
groups and products
• Might undo efforts put in last
STRENGTHS WEAKNESSES several years in integrating
marketing communication.

OPPORTUNITIES THREATS

• Fuel prices
• Open luxury stores on • Bargaining power of Travel
board agents
• Tap younger markets • Changing tastes and
• Customized packages preferences of consumers
• Political scenario (eg 1991
Iraq war)
• Sea piracy
• Accidents
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CONSULTANTS
 Changing
mediums
Use Creative strategy to better
position through digital,
sponsorship, Billboards
Focus on
Premium
Focus marketing effort more on 5star
ships with strategic branding

RECOMMENDATIONS Variety On board luxury

shopping
Introduce more packages which Introduce new services in the
offer a higher variety to the existing market.
consumer
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CONSULTANTS
THANK YOU

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CONSULTANTS