1. Cunard Line Ltd. – Managing
Integrated Marketing
Communication
Cheryl (F11014)
Ramya (F11045)
Abhishek (F11061)
Sagar (F11100)
Swaruparani (F1116)
Varun (F11120)

2. Issues Faced by Cunard
• Allotting the budget for marketing
communications and branding
• Maintaining uniformity in communications efforts
• Finding the balance between tactical and
strategic branding
• Effect on branding strategy due to organizational
change
• Retaining current brand image and staying ahead
of competition

3. Cunard as a Luxury Brand
• Price and service diffrential between Cunard and
its competitors – White Star Service
• Occupies ‘upper-range’ brand level
• Protected by high entry barriers, namely price
• Aesthetic service dimensions – elegance, formal
‘class’ system
• Known by all, consumed by few
• Brand has sustained itself after creator’s demise
• Threats?

4. Is Cunard A Strong Brand?
• Queen Elizabeth II as the flagship
• Providing 5 star and 4 star facilities
• Different types of ships under the Cunard
Brand (Big Ships eg QE II, yatch)
• Effect of Cunard Brand on perceived quality
• The Cunard Brand is as strong as the Brand QE
II.

5. Brand Identity - Cunard
• Inner Core - Luxury, style, service
• Outer Core:
– Product Scope: Cruise, Travel, Entertainment
– Personality: Luxurious, exotic, fun, adventurous
– Slogan: “We are not the best because we’re the
oldest, We’re the oldest because we’re the best”
– Culture: Very British and Proper

6. – Image: Suave, classy, royalty, celebrity
– Price/quality: Niche market, sophisticated, High-
class
– Association: Wealth, elegance, style, special-
occasions
– User profile: Customers in their forties &
fifties, refined, very well-educated, rich, married
• Value Proposition: Legacy &
tradition, distinguished service and
sophistication

7. Cunard’s Ships
Unique Image and Positioning

8. Sailing
Ship Name Category Features Capacity
Locations
New York-Europe
Queen Elisabeth II Luxury (5- Ultra-luxury accommodations, (Transatlantic), 1,850
(QE2) star) Exquisite service Caribbean. One round- passengers
the-world trip / year.
Caribbean, Alaska,
South Pacific (from
Luxury (5- Ultra-luxury cruise, services
Sagafjord North America). One 550 passengers
star) same as QE2
round-the-world trip /
year.
Ultra-luxury cruise, services
Luxury (5-
Vistafjord same as QE2 Based in Europe 750 passengers
star)
‘Casual’ cruise, Destination-
Premium (4- Well-known Caribbean
Cunard Countess oriented rather than on-board 800 passengers
star) ports
services
‘Casual’ cruise, Destination-
Premium (4-
Cunard Princess oriented rather than on-board Europe, Mediterranean 800 passengers
star)
services
For ‘Intimate’ ultimate deluxe
Luxury (5- cruising, formal ‘Wealthy’ 6 months Caribbean, 6
Sea Goddess I Only 58 Couples
star) atmosphere, little on-board months Europe
entertainment, Very Expensive
For ‘Intimate’ ultimate deluxe
cruising, formal ‘Wealthy’ 6 months Orient and
Luxury (5-
Sea Goddess II atmosphere, little on-board South seas, 6 months Only 58 Couples
star)
entertainment, Very Expensive Mediterranean

9. • Customer Profile
- 60% United States passengers, rest from Europe and
others parts of the world.
• Target Segments
– Very well educated, married individuals, heavy
magazine readers.
– Luxury (5-star) category: People over 55 years of age,
top 3% - 5% income.
– Premium (4-star) category: People above 45 years of
age, upper 20% - 25% income.
Year 1991 data Income
20th percentile $ 16,580
Median (50th percentile) $ 39,679
80th percentile $ 74,759
95th percentile $ 126, 969

10. • Market Share Expected Growth
– Pre-1991 average compounded growth rate 10%
– Overall cruise industry: 4 million boardings/year
– Luxury segment (8% of total): 3,20,000 boardings/year
– Cunard’s 50% market-share: 1,60,000 boardings/year
– Growth rate decline post-1991 due to Iraq war,
capacity > demand (assumption: 8% growth rate)
Cunard Luxury Segment
Year
(Projected Boardings/year)
1991 1,60,000
1992 1,72,800
1993 1,86,624
1994 2,01,554
1995 2,17,678

11. Integrated marketing tools
Direct Mail : 25%
Mass media advertising (magazines & newspapers)
Brochure & Travel agent co-operative spending
Public Relations & Promotional activities

12. Direct Mail
Pros Cons
• Used primarily as the • Unpredictable
reservation deadlines • Long lead times –low
approached. response
• Intended to act as a
‘closure’
• Orientation was tactical

13. Advertising
Magazines
• To create ‘look, touch and feel’ of
cruising
• A strategic activity
• Oriented to maintain & build long
term image & identity
• Advertising appeal to emotions
and mind
Newspapers
• Tactical marketing
• To create immediate or near
term inquiry and sales

14. Brochures and travel agent
Brochures Travel agent
• To educate the potential • Understand the mindset of
customer customers and suggest the
• To create desired image for best option
each ship • Can provide insight on
service – safety/security.

15. Public relations
Pros Cons
• Cost effective way to reach the • Lack of control over media
market
• Can use independent & objective • Media time / space not
people to endorse the brand guaranteed
• Higher credibility compared to • Difficult to integrate brand
advertising
• Makes advertising more visible –
tag lines / slogans
cuts through media clutter • Evaluation metrics &
• Significant word-of-mouth procedures not
• Circumvents customer resistance standardized
to marketing communications

16. Promotional activities
• usually tactical • Sales promotions appeal to
actions, providing pocket - give that extra
• customers incentives to buy reason/value to buy
within a particular time,
• or to buy larger than normal
amounts,
• or to try a new category or
brand…

17. Impending Organizational Alignment
Ships were to be regrouped according to type of cruise
or type of services offered:
• Elegant 5 star cruising –QE2
• Ultra Deluxe cruising 5 -star
• Less formal, somewhat less expensive cruising
(destination oriented; 4 star) –the cunard countes: and
the cunard princess
• Yacht-like (luxury cruising; 5-star)-Sea Godess 1 and
Sea Godess 2

18. Pros
• Executive for each group for strategy and tactical
planning
• Orientation towards target market
• Specificity of product concept and message
• Ease of understanding for travel agents

19. Cons
• Further Dilution of Cunard brand
• Resources use more for developing consumer
knowledge towards 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 several years in
integrating marketing communication.

20. Risks for Luxury Cruise Liners
• Fuel prices
• Bargaining power of Travel agents.
• Changing tastes and preferences of consumers
• Political scenario (eg 1991 Iraq war)
• Sea piracy
• Accidents

21. Conclusion
• What are they competing against??
– Get away to Bahamas , Caribbean ; Castles in Europe.
• Does an umbrella brand make sense??
– Each ship has its own ads , the umbrella brand is
orphaned due to disconnect between the various
ships
• What is the face of Cunard Ltd?
– The Queen Elizabeth 2 was their strongest point;
considered the finest in the world

22. Way forward
• Concentrate on 5 star luxury ships like the QE2
• Be the pinnacle of luxury in sea cruises and don’t
dilute the brand image
• If the 4 star services and small ships are making
profits start a sub brand which has no association
with the main brand ( Like Taj group of hotels )
• Or else get rid of the small ships and get ships
similar to the QE2 to consolidate the position