Cunard Line Ltd. Case Study

Background

Cunard Line Ltd is one of the most famous and oldest luxury cruise companies in the world. Providing high-level luxury service to its clientele, Cunard’s name is associated with elegance, excellence, and tradition. Its seven ships (5 luxury and 4 premium) follows Cunard’s high quality service pattern, giving to the company 50% of the market share in the luxury segment and 90 % of occupancy in 1990.

The success and performance of the company is considered high for the cruise industry. Based on their corporate culture, the company has two main targets - to provide excellence and elegance as the value of their service, and to employ these concepts into their marketing communication in order to sell the experience of traveling in a Cunard ship.

Company’s database provides its demographic segment market, which includes individuals with high annual income ($ 250,000), married, well educated, and between 45 years old (4 star ships) and over 55 years old (5 star ships). Clearly, Cunard’s target market focuses on income segments (individuals that can afford the high prices of luxury cruises), rather than just age segment. However, externals factors such as economic conditions and competitive pressures, and internal factors such as allocation of marketing resources in to tactical and strategic actions, have became a enormous challenge to Cunard in order to maintain its brand’s equity.

Core Issue

The quality of Cunard’s service and the experience of traveling in a Cunard ship are elements that strength the costumer’s view of the company. However, because the current economic conditions (war) and increasing competition, price can be a factor that make weaker the costumer’s view of the company and consequently, reduce future sales. Cunard’s question is how to promote discount and promotions without diluting Cunard image of elegance and luxury. They also have marketed its individual ships, rather than promote the brand in behalf of the Cunard group overall. Their marketing strategy is not clearly defined (what to say, how to sat, and how often) in order to inform, persuade, and remind the consumer. Consequently, the core issue is that Cunard marketing communication mix has not been visibly defined

Recommendations

Personal-channels should be base on promotions, incentives, and price discounts, focusing on loyal Cunard’s costumer and occasional cruise travelers, establishing a direct campaigns. None-personal channels should be base only in to promote only Cunard’s brand equity through mass campaigns. Therefore, in order to give recommendations to define Cunard’s marketing communication mix strategy, the following process will be applied:

Selecting Target audience/ Communication Objectives

Cunard has a defined consumer segment, yet its target audience can be separated in three different categories:

1- Potential consumers that have never been in a luxury– the objective is to create category need and brand awareness to make this audience look for luxury cruise as an option for their next vacation, and making Cunard the first option that is going to satisfy their need.

2- Potential costumers that have been in a luxury cruise, but it was not a Cunard ship – The objective here is to create brand attitude, instructing this audience about the quality and service that the Cunard brand can provide.

3- Cunard Costumers. – The objective is to stimulate more usage by making the costumers feel special, offering distinct services and promotions.

Designing the Communication

Defining what the company is going to say, the message strategy will approach extrinsic considerations (traditional aspects of the brand) and the same