Cunard line , Ltd.

Managing Integrated Marketing

Communications
MKT 642
By:John Dehmardan
Background
Subsidiary oI TraIalgar House
Cruise and steamship business since 1840
Advent oI jet travel
Luxury vacation business
The Ships
Cunard oIIered cruising on seven ships
Luxury (5-star) category:
- Queen Elizabeth 2, SagaIjord, VistaIjord,
Sea Goddess I, Sea Goddess II
Premium ( 4-Star) category
- Cunard Countess and Cunard Princess
Queen Elizabeth II
The Iinest cruise ship in the world
OIIered ultra-luxury accommodations and
exquisite service
Capacity oI 1850 passengers
It was marked as the ultimate in cruising
Traveled between New York and Europe
It was also used in the Caribbean
High season:$3000 to $15000 per person
Low season:$2400 to $12000 per person
SagaIjord and VistaIjord
Ultra-deluxe Iive-star cruisers
Positioned as ultra-luxury cruisers and
oIIered services at the same level as QE 2
SagaIjord: Primarily out oI American ports
to the Caribbean, Alaska and the South
PaciIic
One annual round-the-world cruise
Capacity oI approximately 550
SagaIjord and VistaIjord
VistaIjord: Five star cruiser
It was based in Europe and was used
primarily in that part oI the world
Capacity oI 750 passengers
Cunard Countess and Princess
Considered 4-Star (premium) cruise ships
Less Iormal and less expensively priced
Positioned as casual
Marketing Ior them tended to be more
oriented to their destinations
Capacity oI approximately 800 passengers
Countess: Cruise among Caribbean ports
Princess: Mediterranean and Europe
High season: Range Irom $1700 to $6500
Sea Goddess I & II
Yacht-like ships Ior 'intimate ultimate
deluxe cruising
Atmosphere oI wealthy person`s yacht
Capacity oI only 58 couples
$800.00 per person per day
Sea goddess I:six months in Europe and six
months in Caribbean
Sea goddess II: six months in orient and six
months in the Mediterranean
Queen Elizabeth II
Queen Victoria
Coronia
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 Irom Europe
- 55 sailed Irom North America
- 5 Irom other places
The Industry and Cunard`s
Segments
60 oI the company`s business with
passengers domiciled in the United States
95 oI customers book their cruises
through travel agents
Cunard cruise ships consistently achieve
approximately 90 occupancy
65 oI passengers pay Iull list price
The Industry and Cunard`s
Segments
Luxury segment: Supply driven
- As more luxury ships come into service,
there is a stream oI additional customers
available to purchase cabins
Growth at an average compounded rate oI
10 per year
Overcapacity
Discounting and price promotions
Cunard Marketing and Marketing
Communication
Cunard success: Excellence and elegance
Marketing Communications Mission: to
develop and maintain Cunard image and to
support each oI the ships planning managers
in their marketing activities ( 100 )
Marketing budget: $20 million
- 50 strategic, 50 tactical
Cunard Marketing and Marketing
Communication
Direct mail- 25
Mass media advertising- 35
70 strategic
30 tactical
Currently 50-50
Cunard Marketing and Marketing
Communication
Brochures and Travel Agent Co-operative
Spending- 35
Public relations and promotional
activities- 5
First dilemma
'Sale-oriented Iormat with more emphasis
on price Ior tactical advertising?
- Price revenues
- Flexible pricing policy
Market changes
Purchase occasions
Target segments
First dilemma
Possible conIlicts with strategic objectives
Creating a balance between brand image
and tactical promotional eIIorts
- Magazines : Building brand and develop a
distinctive image
- Newspapers: Tactical marketing to create
short-term sales
- Direct mail
Company`s Image vs. Individual
Ships`
Directly related to the new organizational
restructuring
- Each group is semi-independent
- An executive responsible Ior strategic and
tactical planning to Ior each ship
Not a very good idea
hich marketing
communications elements?
Increasing competition: Requires increase
in promotional eIIorts
- Increase promotional activities
'one-day sale
- Direct mail: stimulate demand, inIorm
high potential prospect, and 'close the sale
Travel agents spending (35) : Internet
Success oI the 'One-day sale
Should engage in more 'sales-oriented
eIIorts
Negative impact on brand equity
Frequent aggressive sales promotions
should be avoided
- Targeted
- In response to aggressive price cuttings