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Travel and Tourism - Club Med Long Haul Marketing Strategy


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Club Med UK - Marketing strategy for comprehensive external communications and public relations in support for a successful Club Med Long Haul launch. It includes a personal action plan to manage marketing and Internet sales

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Travel and Tourism - Club Med Long Haul Marketing Strategy

  1. 1. Club Med Long Haul Destinations France’s leading travel and tourism company Presented by Samuel Chatelain S. Chatelain
  2. 2. Club Med background and overview S. Chatelain « Happiness is our business » Club Med provides all-inclusive premium villa and chalet holiday resort packages across 35 destinations worldwide. It manages 77 resort villages and 1 cruise ship in short, medium and long haul destinations and offers different resort styles that focus on sports, culture, the family, golf and spas. Founded in 1950 Belgian water polo Olympic medalist Gérard Blitz French businessman Gilbert Trigano Mission Club Med offers t o travellers a world of endless joy and happiness Values Multicultural and pioneering spirit, kindness, freedom, responsibility. Logo A trident – attribute of Poseidon and symbol of his domination on seas Brand proposition Club Med takes small groups of individuals and countless families from their day-to-day lives and brings them together in a all-inclusive relaxing and fun environment of holiday villages in new getaway horizons around the globe. Selected Brands CM Baby Welcome, Business, Cruises, Discovery, Passworld, Voyages, World Strategy Friendly , multicultural and upmarket push strategy Long-haul travel Trip of greater than 3,000 miles or 6 hours of fly time
  3. 3. Club Med Competitive Landscape S. Chatelain
  4. 4. Club Med UK Environment Analysis <ul><li>Competitor analysis </li></ul><ul><li>Increase of competition rivalries against commoditisation and for status differentiations (market life cycle) </li></ul><ul><li>Customer analysis </li></ul><ul><li>Over 54% of 1.4m Club Med customers are French-speakers; 12% are English speakers . </li></ul><ul><li>An average Club Med Great Member revisits 4 times after their initial stay at one of its resorts. </li></ul><ul><li>A total of 4.5m UK tourists travel annually to long haul destinations where Club Med manages holiday villages. </li></ul><ul><li>Most frequently chosen village destinations by the 31,000 Club Med UK customers in 2009 are short haul destinations to: Portugal, Italy, Greece, France and Turkey. </li></ul><ul><li>Most long haul reservations are made between December and March. </li></ul><ul><li>People decide within 8 seconds if it’s worth or not to stay on and best time to visit or call: March to June, September / October; avoid July & August) </li></ul><ul><li>Word of mouth/mouse remain predominant in the buying-decision process to book a holiday, </li></ul><ul><li>Active online travel community: Club Med Planet </li></ul>S. Chatelain
  5. 5. What prospects ahead? S. Chatelain Strengths Weaknesses <ul><li>High income Customers less subject to price elasticity </li></ul><ul><li>High level of guest fidelity; Internet sales increased by 20% </li></ul><ul><li>G.Os have a good command of English; Club Med boutiques </li></ul><ul><li>All-inclusive holiday packages at reasonable prices </li></ul><ul><li>Upscale refurbishments of CM holiday villages to 4-5 tridents </li></ul><ul><li>New ethical & marketing partnerships (Nike Golf, Petits Princes) </li></ul><ul><li>EU eco-label and Green Globe 21 certification </li></ul><ul><li>Indirect distribution channel overly reliant on travel agencies (short haul destinations) but little on outbound tour operators , relevant for long haul destinations </li></ul><ul><li>Development of a flexible offering, pre-financed and highly profitable </li></ul><ul><li>Worldwide implantation subject to higher currency depreciation risk </li></ul><ul><li>Volume strategy (substituted by an upscale strategy) </li></ul>Opportunities Threats <ul><li>UK travellers who had to scale back their Long haul holiday plan are looking to make up for it in 2010 </li></ul><ul><li>Disintermediation: Internet </li></ul><ul><li>The UK market remains the European leader in search volume </li></ul><ul><li>2/3 of British book holidays online </li></ul><ul><li>Increase of touristic typologies (explorism, valuntourism) </li></ul><ul><li>The demand for fewer 6 nights and between 8-13 nights is increasing (87% of UK holiday trips; average: 10.1 nights) </li></ul><ul><li>UK tourists are increasingly interested in travelling to developing countries (17% of all trips abroad) to compensate for a weak British pound </li></ul><ul><li>Escalating fuel costs and UK increase in Air Passenger Duty affects long haul routes. </li></ul><ul><li>UK Buyers are ‘buying clever’ and postpone holiday spending until the very last minute (average spend abroad: €1,484) </li></ul><ul><li>“ De-packaging” of travel: all-inclusive package holidays share has declined steadily to make up 35% of holidays booked in the UK; however they are still important for long haul travel . </li></ul><ul><li>Customers compare prices, plan holidays and pre-search destinations online and ‘word of mouth’ and ‘word of mouse’ remain predominant </li></ul><ul><li>Seasonal business affected by school holidays and hard weather conditions </li></ul>
  6. 6. Club Med Objectives <ul><li>Ansoff’s Strategic Matrix </li></ul><ul><li>Marketing Objectives </li></ul><ul><li>Increase Internet sales by 50% by 2010 </li></ul><ul><li>Maximise price / quality ratio of the new all-inclusive upmarket offering </li></ul><ul><li>Increase market share in all-inclusive holiday market </li></ul>S. Chatelain
  7. 7. Major Far Away Segments in the UK S. Chatelain Visitor types and characteristics % Trip Experience and benefits Critical success factors, triggers and preferences UK Distribution online Accessibility Amenities Tourist services Image of destination Luxury Travellers somewhere in a more exclusive resort 9% Tailor made services Flight upgrades priority transfers villa upgrades, afternoon tea, fine dinning for two holiday concierge child and pet care travel insurance great memberships and air miles, Nike Golf Exclusive facilities, new tours, classes and excursions, sailing Specialised: Turquoiseholidays Itcclassics Elegantresorts Audleytravel Sun & Sea Seekers Lazing in the sun with others enjoying beaches or pools 7% Relaxing sun, festive fun, Airport parking Villa upgrades, dinning for two, cocktails and ice-creams Pet care, Password, mini Club, room service, reserved seating Pleasant beaches, quite surroundings, snorkelling with boat outings, relaxed and festive atmosphere Mainstream: Ebookers Expedia Lastminute Active Sports Wellness Relaxing with sportive activities, hobby holiday 7% Nutrition, good sport activities, relaxation Airport queue jump Health eating, dinning for two, good facilities ,Academy Pass, spa treats, fitness class, personal trainer, nutrition workshops, embarked camera, Suitable play grounds with attractive surroundings, good paramedical facilities <ul><li>Mainstream: </li></ul><ul><li>Ebookers </li></ul><ul><li>Expedia </li></ul><ul><li>Lastminute </li></ul>Exotic Explorers Somewhere specific to explore, enjoy scenery 8% Special natural attractions eco-tourism, Explorism Priority transfers Exotic food Dinning for two Save the wildlife (Beautiful Oceans), Club Med Foundation, pet and children care Nature, culture landscape excursions, sailing, scuba diving <ul><li>Specialised: </li></ul><ul><li>Naturetrek </li></ul><ul><li>Coxandkings </li></ul><ul><li>Expertafrica </li></ul>Dream Honeymoons Newly weds 4% Adventure, exotic getaway reserved seats, VIP lounge, Fine dinning for two, open bar spa treats, wedding planner Bridal tours <ul><li>Specialised: </li></ul><ul><li>Kuoni.weddings </li></ul><ul><li>Free2 </li></ul>Cruise travellers Travelling onboard cruise ships 3% Caribbean ocean cruise Transit VIP lounge cabin upgrades with a balcony dinning for two more luggage, local restaurant lunches spa treats onboard entertainments, tours & excursions seat at captain table <ul><li>Specialised: </li></ul><ul><li>Celebritycruises. </li></ul><ul><li>Cruisedirect </li></ul>Cultural Testers Somewhere specific to experience culture 4% Guided attraction, food tourism, voluntourism Priority transfers local food testing/cooking meeting locals (Petits Princes, Terre d’Equilibre) queue jump, Club Med Foundation Priceless guided tours with well-known experts, folklore shows and live music concerts Specialised: Tribes
  8. 8. UK Demographics for Long Haul Holidays S. Chatelain
  9. 9. How attractive are CM customer segments? S. Chatelain
  10. 10. Product Targeting and Positioning <ul><li>Targeting </li></ul><ul><li>Positioning </li></ul>S. Chatelain
  11. 11. Marketing Mix Programme <ul><li>Price of Long Haul Destinations </li></ul><ul><li>Price skimming on well-selling far away holidays </li></ul><ul><li>Price penetration on growing exotic destinations </li></ul><ul><li>Price customisation for frequent traveller or high value targets </li></ul><ul><li>Price discrimination on high-season departures </li></ul><ul><li>Bundled and options pricing at online holiday builder tools </li></ul><ul><li>Price elasticity low on high income targets </li></ul><ul><li>Promotional Pricing : loyalty referencing incentives, upgrades, early birds, online discounts, deposits, donations </li></ul><ul><li>Pipeline channels for long haul </li></ul><ul><li>Internet - effect of disintermediation </li></ul><ul><ul><ul><li>Travel directories: Travel Library ; Yahoo Travel </li></ul></ul></ul><ul><ul><ul><li>Travel meta search sites: Travel Supermarket, Hotels Combined, Kayak </li></ul></ul></ul><ul><ul><ul><li>Travel blogs and communities </li></ul></ul></ul><ul><li>Direct selling multichannel: </li></ul><ul><ul><ul><li>Online booking of holiday </li></ul></ul></ul><ul><ul><ul><li>telephone vacation booking </li></ul></ul></ul><ul><ul><ul><li>DM and email marketing </li></ul></ul></ul><ul><li>Channel intermediaries: </li></ul><ul><ul><ul><li>Outbound tour operators </li></ul></ul></ul><ul><ul><ul><li>Specialised tour operators </li></ul></ul></ul><ul><ul><ul><li>Travel agencies </li></ul></ul></ul><ul><ul><ul><li>Member organisations </li></ul></ul></ul>19,9 % 29.2 % S. Chatelain
  12. 12. Club Med Long Haul Holidays <ul><li>CM product types and quality </li></ul><ul><li>CM Long Haul Life Cycle </li></ul>Embryonic Growth Maturity 1 14 9 16 10 Guest Drifters Low occupancy High prices Awareness Expansion Introduction Guest Innovators High occupancy High prices Inform Penetration Advertising Customers Saturated Low prices Persuade Defence Trade Travel S. Chatelain
  13. 13. Communications programme - Promises vs. Customers S. Chatelain
  14. 14. Key targeted campaign messages S. Chatelain Target 1 Luxury Travellers Target 2 Sport and Wellness Enthusiasts Target 3 Sun & fun Seekers Target 4 Exotic Explorers UK Internet UK Internet UK Internet UK Internet High Value GM Traveller A,B, C1 Experience the exceptional experience yourself in a completely different way Summer 2010 savings until March. Make it especially joyful and extravagant this year Discover new cultures in new horizons 35–54 £50K + Low Value GM Intender A,B, C1 unique retreat: time far out from the daily stresses More exclusive more inclusive with Club Med Your peace of mind and tranquillity are essential to us Looking for a sense of discovery, excitement and adventure? 35–54 £50K + Negative Value GM Non-intender A,B, C1 The pleasures of fine dining Enjoy your passion for sports experience a truly exceptional holiday at one of our stunning locations throughout the world! Choose club med for your honeymoon 35–54 £50K + Uncertain Value Unaware A,B, C1 Club Med luxury collection for your next far away getaway At least Club Med knows there is something medicinal about a beach vacation Winter sun exotic getaway If you want happiness for a week or so – go on a Club Med Long haul 35–54 £50K +
  15. 15. <ul><li>External Communication objectives: </li></ul><ul><li>To promote and increase public awareness of the Club Med Long Haul and enhance the perception of Club Med as a premium all-inclusive holiday provider in premium destinations </li></ul><ul><li>Providing Club Med staff and intermediaries with the information and tools required to promote the Club Med Long Haul with print and electronic media in both B2C and B2C contexts </li></ul><ul><li>Providing Customers with attractive, easy-to-read, easy-to-understand marketing materials that motivate them to participate in Club Med Long Haul and visit or </li></ul><ul><li>Developing and distributing timely, effective publicity, news and feature articles about Club Med Long Haul </li></ul><ul><li>Campaign Key Message </li></ul><ul><li>“ If you want happiness for a week or so – go on a Club Med Long haul destination” </li></ul><ul><li>Previous Club Med campaigns </li></ul><ul><li>« Happiness is our business » </li></ul><ul><li>« The aim in life is to be happy. The place to be happy is here. The time to live happy is now » </li></ul><ul><li>« so many worlds remain to be discovered » </li></ul><ul><li>« Happiness the way I want it » </li></ul><ul><li>« The best idea since happiness was invented », </li></ul><ul><li>« happiness is an all inclusive getaway » </li></ul><ul><li>« new privilege to live together «  </li></ul><ul><li>« where happiness means the world » </li></ul><ul><li>Creative Approach: </li></ul><ul><li>To create an appealing, timely, effective promotion campaign an enjoyable, active winter sun destinations with Club Med Long Haul </li></ul><ul><li>Emphasise the value of happiness, sportive activities, fun, multiculturalism, well-being and the cost of de-packaging holidays in cover letter and press kit to travel news and feature editors and content directors for all digital media. </li></ul><ul><li>Target Audiences: </li></ul><ul><li>Online holiday-intender or in key UK area: London, Manchester, Leeds and Bristol </li></ul><ul><li>British and international tourism trade fairs: World Travel Market, Holiday & Travel Show, Adventure Show </li></ul><ul><li>Specialised and Major UK Tour operators and travel agencies (intermediaries) </li></ul><ul><li>UK travel journalists (PR) –Travelwriters UK </li></ul><ul><li>Trade press and consumer magazines: Selling Long Haul, Travel Weekly, CN Traveller, The Sunday Times, Wanderlust </li></ul><ul><li>Most important international platforms in English language: TripAdvisor; Flickr/YouTube, media sharing platforms </li></ul><ul><li>UK online communities: Chic Retreats, My Life of Travel, Thorn Tree Travel Forum (Lonely Planet), Trusted Places… </li></ul><ul><li>Time frame (one year ahead) </li></ul><ul><li>January/February for summer programmes </li></ul><ul><li>September/October for winter programmes </li></ul>Strategic Communication Plan Aim: to launch Club Med Long Haul on the UK market blueprint for comprehensive external communications and public relations support for a successful Club Med Long Haul launch S. Chatelain
  16. 16. Communication Action Plan to Launch Club Med Long Haul on the UK market S. Chatelain
  17. 17. End of Part 1 Thank you Q&A S. Chatelain
  18. 18. Part 2 Personal Action Plan Presented by Samuel Chatelain S. Chatelain
  19. 19. Marketing and Online Sales Management Priorities <ul><li>Long Term Priorities </li></ul><ul><li>Overall annual marketing mix planning for seasonal Summer and Winter campaigns as well as retention and acquisition strategies </li></ul><ul><li>Accelerate the implementation of the upscale strategy by implementing push and pull promotional activities </li></ul><ul><li>Boost qualified web traffic and conversion rate from Club Med e-Commerce platform by optimising its visibility to targeted customers. </li></ul><ul><li>Monitor budget and report on target, adjust plan when required </li></ul><ul><li>Conduct regular marketing audit to identify new business and new product development opportunities </li></ul><ul><li>Short Term Priorities </li></ul><ul><li>Allocation of product responsibilities & workloads within the division </li></ul><ul><li>Adapt existing material to the needs of the local market and develop appropriate tools for Indirect & Call Centre </li></ul><ul><li>Build good and effective working relationships with external agencies </li></ul><ul><li>Implement new digital marketing campaigns and other multichannel promotional activities </li></ul><ul><li>Monitor and report internet results and online media activities to senior management team </li></ul>S. Chatelain
  20. 20. GANTT Chart over the first 3 months S. Chatelain Months First Month Second Month Third Month Cost £ ROI Campaigns W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 Search Marketing X X 770 Permission marketing X X X 1,155 Viral marketing X X 770 Great Content X X X 1,155 Direct Mail List Promotion X 385 Online PR, blogs, wikis X X 770 Cost first month 4,620 Online Partnerships X X X 1,155 Landing pages X X 770 Directory submissions X X 385 Interactive ads X X X 1,155 Podcasting, videocasting X 385 Mobile marketing X 385 Cost second month 4,620 Interactive mapping X 385 Sales promotion materials X X X 1,155 PR and advertising X X 770 DM and Merchandising X X 770 Market research X X 770 New Product Development X 385 Cost third month 4,620
  21. 21. Key strategic issues and critical factors <ul><li>Key strategic issues </li></ul><ul><li>Daily management of personnel - 2 full time staff and 2 interns </li></ul><ul><li>Co-ordinate the development of individual marketing plans to achieve these targets </li></ul><ul><li>Systematic monitoring of activities throughout the team – including setting of regular targets </li></ul><ul><li>Co-ordination and recommendation of marketing plans/budgets </li></ul><ul><li>Provide strategic and quantitative feedback to management team on the performance of marketing and internet sales activities </li></ul><ul><li>The implementation of efficient systems across the board </li></ul><ul><li>Strategic development of marketing activities </li></ul><ul><li>Key Success Factors </li></ul><ul><li>Marketing campaigns are delivered on time through effective planning and implementation. </li></ul><ul><li>Effective designer briefing, and building and maintaining of marketing partnerships with many external stakeholders </li></ul><ul><li>Good understanding of the offering and corporate marketplaces in order to maximise position and growth. </li></ul><ul><li>In depth analysis pre and post campaign. </li></ul><ul><li>Colleagues are fully briefed and familiar with campaign timescales </li></ul><ul><li>KPIs met / exceeded within agreed budgets and timeline </li></ul><ul><ul><li>Increase Leads Generated, Conversion Ratio </li></ul></ul><ul><ul><li>Increase customer acquisition across new and existing customers </li></ul></ul><ul><ul><li>Increase revenue & no of holiday package sold </li></ul></ul><ul><ul><li>Increase customer retention level </li></ul></ul><ul><ul><li>Increase (Referrers) Unique Visitors and CTR </li></ul></ul>S. Chatelain
  22. 22. Thank you for listening Q&A S. Chatelain