Cunard Line LTD

 

Cunard Line Ltd.

Group 3 Members: Abhinav Mathew –F10061 Cyriac Jose –F10008

Anthony Vishal-F100  Jesu  Jes u Rathin Rathinam am –F1008 –F10083 3 Rohith Girish –F100 Click to edit Master subtitle style

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Company overview : Wholly owned own ed su subsidiary bsidiary 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 .

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7 ships – 5 in luxury 5-star category & 2 in the premium 4star category . 5/5/12

 

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The Industry and Cunard’ 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

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Cunard’s demographics: - 40% sailed from Europe - 55% sailed from North America America - 5% from other places

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The Industry and Cunard’ Cunard ’s Segments 

60% of the company’s business with passengers domiciled in the United States

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95% of customers book their cruises through travel agents a gents

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Cunard cruise ships consistently achieve approximately 90% occupancy 65% of passengers pay full list price

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The Industry and Cunard’ 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 avera ge compound compounded ed rate of 10% per year   Overcapacity 

Discounting and price promotions promotions

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Objectives of the case  To gain the right balance between the firms  To strategic and tactical means in its marketing communications .

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

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 To sustain the firms brand identity withou  To withoutt diluting its inner core

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

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Solution 

Recalculated budget of marketing comm. Activities :

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Direct mail – 10% from 25% ( should be used only for tactical means – discounts , offers and promo)

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Mass media advertising – Magazines and Newspaper maintain 35% (60:40 tactical :

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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% 5/5/12

 

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& this regard . elegance. Tag line is a good in 

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

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Existing database management software 5/5/12

tends to focus more on existing clientele . The  

Thank You! Thank ou!!! !!

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