9 2 14 Notes
Marketing: Getting and Keeping Customers
Club Med Case Study
Singular Strategy: International staff to help people feel at home, being the life and soul of each village. Initially, solely focused on French and Belgian. North American has more growth potential. US budget is higher than European. Companies are copying Club Med, increasing competition. Club Med has to evolve to meet competition. Competitors: Copy cats and cruise markets. Club Med adopted a cruise line too. 1960s sexual revolution reputation was becoming less beneficial as baby boomers age.
Research showed that Club Med image was too single and vacation was ‘forced’ upon you and some saw the club as too confining
Originally targeted singles and couples with all-inclusive resorts
Why change: Significant increase in competition, Different needs for different markets and needs are changing, Altering demographics, economics
Need to focus on families
New Strategy: Marketing campaign, “Club Med is where everyone goes for a different vacation.”
Segmented marketing to different demographics
Range of products
Families are incredibly loyal and refer others (sales efficiency), people spend more on their children, willing to pay for their needs (safety and security)
Trying to be everything to everyone: kiss of death
Changes to get Families:
Product: Rooms, Kid Activities, Food, Childcare, safety/security (infrastructure), staff, services available and schedule
Price: Price per person goes down (family package), Pay-as-you-go option, Price structure becomes more complex
Place: Access to place based on time and place, kids don’t like to fly for long periods of time so places need to be closer to families, Agents
Promotion: Determine the message, determine the delivery method, increase marketing budget, adjust the brand image, could potentially create a sub brand (but they think their brand image is sooo awesome)
Strategy: Allocation of scare resources Having an identified customer base Understanding
Club Med Case Study
Singular Strategy: International staff to help people feel at home, being the life and soul of each village. Initially, solely focused on French and Belgian. North American has more growth potential. US budget is higher than European. Companies are copying Club Med, increasing competition. Club Med has to evolve to meet competition. Competitors: Copy cats and cruise markets. Club Med adopted a cruise line too. 1960s sexual revolution reputation was becoming less beneficial as baby boomers age.
Research showed that Club Med image was too single and vacation was ‘forced’ upon you and some saw the club as too confining
Originally targeted singles and couples with all-inclusive resorts
Why change: Significant increase in competition, Different needs for different markets and needs are changing, Altering demographics, economics
Need to focus on families
New Strategy: Marketing campaign, “Club Med is where everyone goes for a different vacation.”
Segmented marketing to different demographics
Range of products
Families are incredibly loyal and refer others (sales efficiency), people spend more on their children, willing to pay for their needs (safety and security)
Trying to be everything to everyone: kiss of death
Changes to get Families:
Product: Rooms, Kid Activities, Food, Childcare, safety/security (infrastructure), staff, services available and schedule
Price: Price per person goes down (family package), Pay-as-you-go option, Price structure becomes more complex
Place: Access to place based on time and place, kids don’t like to fly for long periods of time so places need to be closer to families, Agents
Promotion: Determine the message, determine the delivery method, increase marketing budget, adjust the brand image, could potentially create a sub brand (but they think their brand image is sooo awesome)
Strategy: Allocation of scare resources Having an identified customer base Understanding