Problem StatementCunard Line, Ltd. continually faces challenges in combining strategic and tactical advertising techniques. Cunard struggled to create promotional pricing advertising that was compelling but did not reduce the value of Cunard's image. This proved difficult. The main challenge is balancing and implementing tactical strategies while maintaining Cunard's image.Situation AnalysisA. Effects of Environment and Market Conditions The predominant effect of the environment on Cunard was the war in Iraq. Before the war, Cunard had about half the market share, with ships often filled to capacity. However, the war affected travel agencies in Mediterranean and European destinations. The capacity of the ships was not satisfied. Cunard used tactical strategies of price promotions and discounts in order to fill cruise ships, resulting in a loss of market share.B. Competitive EffectivenessThe different advertising techniques used by Cunard Line, Ltd. enable the company to reach the customer more deeply, by implementing strategic and tactical marketing techniques. Magazine advertising uses strategic marketing by appealing to customers' emotions through the senses of sight, touch and feeling of luxury. Direct marketing (mailings) creates proximity to customers through tactical marketing, educating cruise ship customers while maintaining a sense of luxury. Newspaper advertising uses tactical marketing to increase immediate inquiries and short-term sales. The option between seven cruise ships, each with similar but different characteristics, allows Cunard Line, Ltd. to attract a wider target group. Each ship aims to use strategic techniques to represent a similar...... middle of paper ...... also realized. Recommended Action Plan Cunard should create realistic marketing goals relating to tactical advertising and budgeting. First, Cunard needs to create a consistent image of the brand as a whole, which it will use as its primary advertising. Cunard should divide ships into umbrellas and create a realistic budget for each umbrella based on average fill capacity. This allows each ship to pay for its own advertising based on customer purchases. Cunard should then create advertisements for each umbrella group. Each advertisement should highlight the differences in service and activities on each set of cruise ships while maintaining Cunard Line, Ltd.'s consistent luxury image. Following these recommendations, Cunard is expected to experience greater success in balancing and implementing tactical marketing techniques..