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 ...