Case 4 Club Med
Case 4: CLUB MED by Nakij Sonprasert
Club Med: Going
Upscale
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Club Mediterraneanee (Club Med), French corporation, founded in
1950
A corporation in the all-inclusive resort market, manages over 100 resort villages in Mediterranean, snow, inland and tropical island located in over 40 countries.
Club Med also operates tours and 2 cruise liners o Club Med1: the Caribbean, Mediterranean o Club Med2: the Pacific
Club Med’s clients is about one-third French with the rest being mainly from North America and Japan.
Club Med: Going
Upscale
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It found that its all-inclusive price is not as widely accepted as it has been in the past. It has found that consumers’ preferences have changed. Vacationers are not willing to spend large amounts of money for vacations that include many activities they are not using as much as the had in the past.
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Its competitors have been able to customized travel package for each customer at prices that customers feel more comfortable with.
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Club Med’s disadvantages: o Cub Med has been scattered all over the world o Currency devaluation o Political boycotts
Background and
History
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Club med was founded by Gerald Blitz in 1950.
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In 1954, he changed this association into a business with the aid of
Gilbert Trigano who sought to establish this organization.
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By 1985, Club Med was transferred into a public traded company on the Paris stock exchange.
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Today, it encompasses over 80 villages and has 2 cruise ships.
Background and
History
•
The reason for success o Its living area is much simpler than the typical hotel chain and rooms sparsely decorated (no phones, TV, writing paper…etc.) o It measures its capacity by the number of beds, not the number of rooms o Its image are as a place to go when customer want to escape.
•
In 2004, after years of trying to make higher profits, it altered its plan hoping to make a comeback, which aimed at giving consumers a differentiated product that was more upscale and luxurious,
Club Med: Going
Upscale
•
•
•
•
Club Mediterraneanee (Club Med), French corporation, founded in
1950
A corporation in the all-inclusive resort market, manages over 100 resort villages in Mediterranean, snow, inland and tropical island located in over 40 countries.
Club Med also operates tours and 2 cruise liners o Club Med1: the Caribbean, Mediterranean o Club Med2: the Pacific
Club Med’s clients is about one-third French with the rest being mainly from North America and Japan.
Club Med: Going
Upscale
•
It found that its all-inclusive price is not as widely accepted as it has been in the past. It has found that consumers’ preferences have changed. Vacationers are not willing to spend large amounts of money for vacations that include many activities they are not using as much as the had in the past.
•
Its competitors have been able to customized travel package for each customer at prices that customers feel more comfortable with.
•
Club Med’s disadvantages: o Cub Med has been scattered all over the world o Currency devaluation o Political boycotts
Background and
History
•
Club med was founded by Gerald Blitz in 1950.
•
In 1954, he changed this association into a business with the aid of
Gilbert Trigano who sought to establish this organization.
•
By 1985, Club Med was transferred into a public traded company on the Paris stock exchange.
•
Today, it encompasses over 80 villages and has 2 cruise ships.
Background and
History
•
The reason for success o Its living area is much simpler than the typical hotel chain and rooms sparsely decorated (no phones, TV, writing paper…etc.) o It measures its capacity by the number of beds, not the number of rooms o Its image are as a place to go when customer want to escape.
•
In 2004, after years of trying to make higher profits, it altered its plan hoping to make a comeback, which aimed at giving consumers a differentiated product that was more upscale and luxurious,