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 d’Estaing

“Where happiness means the world”-Heart of the concept
 CLUB MED’s Timeline:
1950 1956
1955 1965
Founded (low- First mountain
priced, summer First bungalows are First permanent
holiday in Leysin,
colony of tents) built in Tahiti village
Switzerland

1993 1989 1980-1990 1967

Declined because of First village on Declined because of First mini club for
the Gulf War water (sailing) unclear strategy children

2002 2004
2001 2005-2016
Henri Giscard Repositioned, more
Declined because of Returned to
d’Estaing as new international
9/11 profitability
CEO (closure of 2 trident)
 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 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.

 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
• 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
– Direct selling channels via online and telephone booking
 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

 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 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 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
Sou
r c e:
The
N ew
Yor
k Ti m
es- C
lub
M ed
 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 .

  the Group has invested €1 billion  on the opening of 20 new

Club Med Segmentation
 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”.
Social Media Strategy
Source: Club Med YouTube Channel

Strategic Concept, Brand
Differentiation, Commitment to
Quality have been core values of
Club Med
Club Med “My Val Thorens”
ad strategy has been successful
in Interactive Marketing in
Social Media
Summary
Brand Repositioning and
Excellence in Quality Services
has been the core of Club Med’s
upscale strategy
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
 DISCLAIMER
Created by Nilav Patro, NSIT Delhi, during
a marketing internship by Prof. Sameer
Mathur, IIM Lucknow.