Cunard Line Ltd.

Group 3

Members: Abhinav Mathew –F10061

Cyriac Jose –F10008

Anthony Vishal-F100

Jesu Rathinam –F10083

Rohith Girish –F100

Company overview :

Wholly owned subsidiary of the Trafalgar house ,London .

Cruise and steamship business – started in 1840

Entered into the luxury vacation business over time .

Global appeal – covered Mediterranean sea , Carribean , South pacific , Alaska , Orient , south seas .

7 ships – 5 in luxury 5-star category & 2 in the premium 4star category .

Each ship had a distinctive positioning and image .

A successful company over 150 years – enjoyed bot marketing and financial success.

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 Cunard’s demographics:

- 40% sailed from Europe

- 55% sailed from North America

- 5% from other places

The Industry and Cunard’s Segments 60% of the company’s business with passengers domiciled

in the United States 95% of customers book their cruises through travel agents Cunard cruise ships consistently achieve approximately

90% occupancy 65% of passengers pay full list price

The Industry and Cunard’s Segments Luxury segment: Supply driven

- As more luxury ships come into service, there is a stream of additional customers available to purchase cabins

Growth at an average compounded rate of 10% per year Overcapacity Discounting and price promotions

Objectives of the case To gain the right balance between the firms

strategic and tactical means in its marketing communications .

To achieve the right mix of the firms marketing channel ‘s used .

To sustain the firms brand identity without diluting its inner core

To increase sales ( by use of persuasive advertising ) at the same time not detracting from its carefully crafted image portrayed in the magazines .

Solution Recalculated budget of marketing comm.

Activities : Direct mail – 10% from 25% ( should be used only

for tactical means – discounts , offers and promo) Mass media advertising – Magazines and

Newspaper maintain 35% (60:40 tactical : strategic) - competitive pressures

Brochures and Travel agents – 40% from 35% ,since 95% of bookings come from travel agents.

PR and Promotional activities – 10% from 5% Introduce SMM and Digital marketing – website ,

loyalty clubs and digital walkthrough – 5%

Solution contd. Overall marketing budget to be recalculated as

60:40 tactical :strategic(20million$ overall budget) and additional 2 million$ to be used for aggressive promotional activities – one day sales , discounts , add ons etc.)

Inner core of the brand to be maintained through consistent communication – luxury ,leisure , fun& elegance. Tag line is a good in this regard .

External core to be modified as per the target segment and the ships .

Existing database management software tends to focus more on existing clientele . The key focus should be therefore to convert non-users into users .

Thank You!!!