Club Mediterrnian Marketing Strategy

Topics: Revenue, Income, Cost of goods sold Pages: 4 (479 words) Published: May 29, 2013
Club Mediterranean

Competitive Advantage
Club Med Magic
Brand Name, 30 years of experience Exceptionally Satisfied Customers Unique Vacation concept First movers advantage, difficult to compete with

Large Customer Base
Word of mouth

Economies of Scale
Air Travel

25% GMs become repeat GMs


High occupancy


Moderately Defensible

Difficult for competitors to match

How successful is Club Med?
 What do you conclude from its financial

  

Consistently Increasing Net Income High market Share (>40%) High occupancy

 What are the nonfinancial measures of the

company‟s performance, and what do you conclude from them? 

High Customer Satisfaction 100+ villages

Expected Value of a customer
 An average guest generates $1,015 of revenues, It has

been decreasing with time.  This results into $54 of net income per customer, this has been increasing with time  About 25% of the new GMs become repeat GMs. They take an average of 4 extra vacations  65% of new GMs come primarily because of word of mouth publicity.

Threat of new entrants
 Broad market appeal, might allow competitors to create

focused segments

Example: Single oriented image, might cause couples to chose a specialized couple packages

 Spartan accommodation and extra charges for drinks

and cigarettes

The customers are not as satisfied with the „bar‟ as they are with the other services

 No presence in the Jamaican region, which is popular

with the customers

Most competitors have presence in Jamaica

 “If Club Med does not continue to change and adapt to

the demands of the market, they would hurt themselves more than any of their competitors ever could”

Company‟s Culture
 Family spirit among the club managers. All top managers  

 

had worked in the villages. GMs were treated as members instead of customers Even the architectural design...
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