CUNARD LINE, LTD AND

READING 1
Assignment No. 1

Group No: 2
Saurabh Kumar 15pgp046
Prabina Kumar Meher 15pgp095
Suamya Gupta 15pgp107
Ravi Shankar Prajapati 15pgp122
Mridul Katiyar 15pgp125
Prabhat Ranjan mahato 15pgp152

Solution 1:
In the current scenario, Cunard follows the same format for advertisement tor all the ship
categories. Considering the poor economic situation in 1992, it is preferable for Cunard to go for
the Sale oriented format for its tactical advertising. As given in the case, earlier they used this
strategy couple of times and were successful. At the same time keeping in mind about the
brand, , the company must target the 4 star ship segments Cunard Countess and Cunard
Princess and The Sea Goddess 1 and The Sea Goddess 2 for Sale- Oriented format.

Solution 2:
To maintain a balance in the focus of marketing communications between the Umbrella-overall
Cunard and Image of individual ships, the company must come up a proposal under which each
of the ships should be allowed to adopt the promotional tactics such as discounts and experience
difference on their will but should follow the norms build to define the CUNARD as the mother
brand, this will help them to address the objectives of their STRATEGY later on with promotions
targeting the particular segment but should not dilute the brand value because each of the acts of
the any ship liner are carrying the brand name of CUNARD. For example, the target markets for
5 star ships and 4 star ships are different and so the advertisements in magazines should be
specific to those target markets. For the overall brand of Cunard, the company must focus on
experience, its food, its activities and satisfied customers instead of focusing on price. For
maintaining the image of individual ships, when they are coming up with sale promotions they
must be specific on which category of ships the sale is on.

Solution 3:
The direct marketing can be a tool to connect one on one with the target market. As Cunard
keeps their database clean, the contact of the target market can be fetched and they can be
contacted. This gives an advantage of personalized mail and better connection to the target
market. This can be done for the communication for 5 star ships where the people are in the top
3%-5% income group i.e. people with over $250,000 annual income and aged above 55 years of
age. They can be sent some pictures and brochures so they can get the feel and look of the
experience that they can get on ships. This results in overall savings in time and cost too.

Solution 4:
The one-day sale strategy followed by Cunard is considered as a great success by the company.
The revenues generated by the sale were higher than the costs involved id' promotions. Even it
times of poor economic Conditions they were able to generate better sales than the other players
in the industry. But repetitive use of such strategy might dilute the brand of the company in the
long run and there is a chance of decrease in the current 50% market share in the premium
segment, that segment might consider it as a low category:

Chapter 16 Summary Submitted by Group 6

Chapter 16 Summary
Modern marketing calls for more than developing a good product, pricing it attractively, and
making it accessible to target customers. Companies must also communicate with the present and
potential stakeholders and with the general public. The marketing communications mix consists
of eight major modes of communication: advertising, sales promotion, public relations and
publicity, events and experiences, direct marketing, interactive marketing, word-of-mouth
marketing, and personal selling. The communications process consists of nine elements: sender,
receiver, message, media, encoding, decoding, response, feedback and noise. To get their
messages through, marketers must encode their messages in a way that takes into account how
the target audience usually decodes messages. They must also transmit the message through
efficient media that reach the target audience and develop feedback channels to monitor response
to the message. Developing effective communications requires eight steps:
-

Identify the target audience

Determine the communications objective
Design the communications
Select the communications channels (personal and Non personal)
Establish the total communications budget
Decide on the communications mix
Measure the communications results
Manage the integrated marketing communications process

Identifying the target audience: Close the gap between the public perception and the image
sought. Communication should be focused on creating need, brand awareness, brand attitude
such that it will help in brand purchasing intention. Problems in the communication:
-

What to say (message strategy)

How to say (creative strategy)
Who should say it (message source)

The marketing communication mix consists of eight major modes of communication:

1. Advertising; Print and broadcast ads, Packaging, Cinema
2. Sales promotion; Contests, games, Sampling, Coupons
3. Events and experience; Sports, Festivals, Arts
4. Public relations and publicity; Press kits, Speeches, Lobbying
5. Direct marketing and Interactive marketing; Catalogue, Telemarketing, Websites
6. Word of mouth marketing; Person-to-person, Chatrooms, Slog

7. Personal selling; Sales presentation, Incentive programs, Fairs and trade shows
Characteristics di-marketing communication mix:
1. Advertising; Pervasiveness, Amplified expressiveness, Control
2. Sales promotion; Ability to be attention getting, Incentive, Invitation
3. Public relations and publicity; High crawlability; Ability to reach hard to find buyers,
Dramatization
4. Events and experience; Relevant, Engaging, Implicit
5. Direct and interactive marketing; Customised , Up to date, Interactive
6. Word of mouth marketing
a. Influential
b. Personal
c. Timely