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Club Med PPT


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Club Med is a Corporation of Vacation Resorts and has been a success in this domain. This presentation deals with the strategy of Club Med and how it has been successful in emerging as a Market Leader in the Resorts and Hotels Industry.

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Club Med PPT

  1. 1. Club Med: “What it is’’? • A corporation of vacation resorts, usually in exotic locations • a French Company • Founded in 1950 by Gerard Blitz and Gilbert Trigano • Objective: offering premium holidays with AN “all inclusive” formula
  2. 2. CLUB MED’s Timeline: 1950 Founded (low- priced, summer colony of tents) 1955 First bungalows are built in Tahiti 1956 First mountain holiday in Leysin, Switzerland 1965 First permanent village 1967 First mini club for children 1980-1990 Declined because of unclear strategy 1989 First village on water (sailing) 1993 Declined because of the Gulf War 2001 Declined because of 9/11 2002 Henri Giscard d’Estaing as new CEO 2004 Repositioned, more international (closure of 2 trident) 2005-2016 Returned to profitability
  3. 3. How did Club Med reach an upscale positioning and achieve excellence in the quality of service? • Brand Repositioning:  Fundamentally revamping its operations.  Repositioned to target an international clientele wanting comfort, elegance, service, and customization.  Decided to close down its 2 trident, renovate 4 trident, and create 5 trident villages.  Reinforce new image
  4. 4. • Brand Development: Tailor-Made Marketing Single image: “We have one brand, one positioning, which is multicultural, upscale, and friendly”  Marketing execution in two layers: 1. Showing image of friendly upscale holiday to appeal most. 2. Providing individual attention and choice.  High level pricing to convey an image of prestige, quality, and exclusivity.
  5. 5. Excellence in Quality Service • Core product: Happy experience • Developing relationship with the customer – Personal interaction • Personalized marketing – Vacation choices that fit desired budget – Flexible accommodation and transportation services : room categories, comfort level, flight times, class of travel, choice of airline
  6. 6. • Excellence in Quality Service  Staff Management to pilot change – High rate of staff loyalty – Focus on its staff training and appraisal mechanism – Values: multicultural, pioneering, friendliness, freedom, and responsibility  Fast and timely using technologies – Attractive, easy-to-understand, and well designed official website
  7. 7. Was Club Med’s upmarket positioning the only one viable strategy? Yes, Upmarket positioning is the only one viable strategy for Club Med. But Why ? A luxurious customer must feel he or she is getting something truly special. • The luxurious customer loses the value of uniqueness. • Concept has been copied by competitors and now is the standard
  8. 8. Club Med’s action for upscale The Group has invested €1 billion on the opening of 20 new villages. Club Med is gradually refocusing its positioning on 4 and 5 Trident villages . Comfort and refinement, friendliness and modernity. 4 and 5 Tridents: representing 25% of the
  9. 9. Luxurious ProductWinning Formula  Quality: Licensed & awarded many times  Uniqueness: Bringing exotic & exceptional locations  Craftsmanship : Multicultural & Friendly GOs  Heritage: A pioneer of an All-inclusive holiday  Authenticity : Premium holiday package  History : Stand still since 1950
  10. 10. 72 resorts in more than 30 countries
  11. 11. Pricing Strategy • Price Skimming on well-selling far away holidays • Price Penetration on growing exotic destinations • Price Discrimination on high-season departures
  12. 12. Do you think that Club Med takes a risk by not in specializing in a particular range level, such as 4 trident or 5 trident? Yes. But implemented an exceptional upscale move to meet its customers' new requirements.  This strategy is expressed by a vast village renovation program and refocusing of its activity on 4 and 5 Tridents .
  13. 13. Club Med Segmentation
  14. 14. Advertising & Club Med The ‘My Val Thorens’ Facebook page. Lebreton said it was the largest Facebook campaign launched by Club Med to date. It is also using Twitter and Instagram to promote the app by posting publications. “Facebook is the platform with the largest number of users in the world, and it is the one that gathers the most fans and generates the most conversations”.
  15. 15. Social Media Strategy
  16. 16. Source: Club Med YouTube Channel
  17. 17. Summary Strategic Concept, Brand Differentiation, Commitment to Quality have been core values of Club Med Brand Repositioning and Excellence in Quality Services has been the core of Club Med’s upscale strategy Club Med “My Val Thorens” ad strategy has been successful in Interactive Marketing in Social Media Catering to Customer Requirements has been instrumental in designing& managing of Club Med Services Superior Service Delivery has been employed for gauging customer demands and incorporating self-service Customer Segmentation and use of Catchy Slogans have resulted in Club Med’s profitability
  18. 18. DISCLAIMER Created by Nilav Patro, NSIT Delhi, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow.