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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

CEO: Henri Giscard dEstaing Where happiness means the world-Heart of the concept

CLUB MEDs Timeline:

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

Brand Development: Tailor-Made MarketingSingle image: We have one brand, one positioning, which is multicultural, upscale, and friendlyMarketing 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.

Excellence in Quality Service

Core product: Happy experienceDeveloping relationship with the customerPersonal interactionPersonalized marketingVacation choices that fit desired budget

Flexible accommodation and transportation services:room categories, comfort level, flight times, class of travel, choice of airline

Excellence in Quality ServiceStaff Management to pilot changeHigh rate of staff loyaltyFocus on its staff training and appraisal mechanismValues: multicultural, pioneering, friendliness, freedom, and responsibilityFast and timely using technologiesAttractive, easy-to-understand, and well designed official websiteDirect selling channels via online and telephone booking

Was Club Meds upmarket positioning theonly one viable strategy?Yes, Upmarket positioning is the only one viable strategy for Club Med.

But Why?Aluxuriouscustomermust 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

Club Meds action for upscale

TheGroup has invested 1 billionon the opening of 20 new villages.

ClubMed is gradually refocusing its positioning on 4and 5 Trident villages. Comfort and refinement, friendliness and modernity.

4 and 5 Tridents: representing 25% of the Club Med range in 2004, now represent more than 50%.

Luxurious Product Winning 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

72 resorts in more than 30 countries

Pricing Strategy

Price Skimmingon well-selling far away holidays

Price Penetrationon growing exotic destinations

Price Discriminationon high-season departures

Price Customizationfor frequent traveller / high value targets

LOWPrice elasticity, Club Med only targets the high income segments

Source: The New York Times- Club Med

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 exceptionalupscale moveto meet its customers' new requirements.

Thisstrategy is expressed by avast village renovationprogramand refocusing of its activity on 4 and 5 Tridents.

the Group has invested 1 billionon the opening of 20 new villages.

Club Med Segmentation

Advertising & Club MedThe 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 theone that gathers themost fans and generates the most conversations.

Social Media Strategy

Source: Club Med YouTube Channel

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 Meds upscale strategyClub Med My Val Thorens ad strategy has been successful in Interactive Marketing in Social MediaCatering 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-serviceCustomer Segmentation and use of Catchy Slogans have resulted in Club Meds profitability

DISCLAIMER

Created by Nilav Patro, NSIT Delhi, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow.