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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

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