“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.