“Where Happiness means the World.”
“Where Happiness means the World.”
Target Market
“And Happiness follows you around the World.”
1950 2015
Founded 1.5 million customers
72 resorts 30 countries
2004
Repositioning
1955 – First bungalows in Tahiti 1956 – First mountain holiday in Switzerland 1965 - First Permanent Village 1967 – First mini club for children 1989 – First Village on Water
Initial Days
Club Med 2 is a 5-masted cruise ship started in 1996.
Sense of freedom through nature & sports
Reconcile individual liberty and social life.
Freedom & Equality.
Call For A Change
• 1980-90
• 1993
• 2001
• Decline of the attractiveness of the concept of holiday homes.
• Economic crisis of Gulf War.
• 9/11 Attacks.
Factors
The company under went a huge loss.
The company’s strategy was unclear – neither a VOLUME nor a VALUE strategy.
NOW WHAT
Redirect to a ‘VALUE’ strategy. Innovative “all-inclusive” premium packages. Target Market changed to international clientele seeking comfort , elegance , service. Removal of 2 trident villages. Renovation of 4 trident to 5 trident villages. Creation of a new range of luxury 5 trident.
• High range of services and an extension of the a la carte services.
• Clubs offer a spa in partnership with a famous brand.
• Shows designed by specialized companies in the resort.
• Clubs for children have dedicated spaces with an emphasis on nature and local culture.
• Sports Schools offer 10 different disciplines with qualified coaches and quality equipment.
"The important thing in life is to be happy, the place is here, the time is now."
MARKET SEGMENTATION
• Tailor-made marketing
• One Brand , One Positioning
• Marketing execution in two layers: 1. showing image of friendly upscale holiday to appeal most. 2. providing attention & choice. • High level pricing to convey an image of prestige, quality, and exclusivity.
• Campaign in 47 countries in 22 languages.
Interactive Marketing
Service Marketing
Customer-Staff relation at its’ peak.
• Core product • Developing relationship with the
customer. • Personalized marketing • Staff Management to pilot change. • Fast and timely using technologies.
Reliability Assurance Responsiveness Empathy Tangible
CUSTOMER CARE
WAS IT
• To create points of difference with competitors to a luxurious consumer. • Club Med’s concept now is the standard to follow. • Helped in effective market
segmentation and to serve effectively to the segment.
• Price Skimming on well-selling far away holidays. • Price Penetration on growing exotic destinations. • Price Discrimination on high-season departures. • Price Customization for frequent traveller / high value targets. • Price elasticity is low, Club Med only targets the high income segments.
RISKS
• Economic Recession • High Pricing • Absence in Asia & Far East • Competition in each particular
range level. • Maintenance of employee
standard.
Strengths International Branding Effective Market Segmentation Loyal User Base All-Inclusive Packages Innovative Marketing High Quality Service
Opportunities Internet Low-cost Companies Shift in Mentality Sustainable Tourism
Weakness High Costing Drop in Investments Prone to loss during recession
Threats Peace & Stability of countries Natural Catastrophe Economic Crisis
Created By Rajit Bhattacharya of Jadavpur University during the marketing internship under Prof Sameer Mathur , IIM Lucknow.