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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