Case Study – Cunard Line, Ltd.

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Case Study – Cunard Line, Ltd.
Problem
Cunard is facing a problem as to whether their marketing efforts should go towards tactical promotions or if they should be applied to marketing the overall brand while facing the effects of a recession. Analysis

Overview
Cunard Line Ltd. is a cruise line that represents luxury and class providing four to five star cruise ship options. Their overall target market is mature adults with mid to very high income-levels. A lot of the marketing efforts put forth by Cunard were going towards tactical efforts and the promotion of individual ships as opposed to the promotion of the entire brand. Although most of the ads portrayed the same look and had an individually tailored paragraph and/or photo. Set backs caused by the worldwide recession as well as the Iraq War has caused Cunard the dilemma of risking their prestigious company image to provide consumers with larger discounts or develop other marketing strategies that will seek to maintain their 90% occupancy rate without lowering their high quality position. It created more pressure for the creation of “sales oriented” marketing, which would jeopardize their high-class image. With competitors such as Carnival who are able to provide large discounts, it makes it difficult for Cunard to avoid using the same approach in order to compete. Segmentation Strategy

Cunard seems to have taken a Concentrated Marketing approach to segmentation. Generally, they focus on one target market – the upper class. Although this can be seen as a disadvantage in an economy experiencing a recession, by segmenting based on this niche income and lifestyle, Cunard is able to tailor their services specifically to them rather than targeting more than one market and not providing the best service possible. Not only do their advertisements and brand perception demonstrate this segmentation but they make efforts to communicate personally with their clients. This is demonstrated through through letters...
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