Club Med is a Corporation of Vacation Resorts and has been a success in this domain. This presentation deals with the strategy of Club Med and how it has been successful in emerging as a Market Leader in the Resorts and Hotels Industry.

2. 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

3. CLUB MED’s Timeline:
1950
Founded (low-
priced, summer
colony of tents)
1955
First bungalows are
built in Tahiti
1956
First mountain
holiday in Leysin,
Switzerland
1965
First permanent
village
1967
First mini club for
children
1980-1990
Declined because of
unclear strategy
1989
First village on
water (sailing)
1993
Declined because of
the Gulf War
2001
Declined because of
9/11
2002
Henri Giscard
d’Estaing as new
CEO
2004
Repositioned, more
international
(closure of 2 trident)
2005-2016
Returned to
profitability

4. 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

5. • 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.

6. 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

7. • 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

8. 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

9. 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

10. Luxurious ProductWinning 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

11. 72 resorts in more than 30 countries

12. Pricing Strategy
• Price Skimming on well-selling far away
holidays
• Price Penetration on growing exotic
destinations
• Price Discrimination on high-season
departures

14. 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 .

15. Club Med
Segmentation

16. 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”.

17. Social Media Strategy

18. Source: Club Med YouTube Channel

20. Summary
Strategic Concept, Brand Differentiation,
Commitment to Quality have been core values
of Club Med
Brand Repositioning and Excellence in Quality
Services has been the core of Club Med’s upscale
strategy
Club Med “My Val Thorens” ad strategy has
been successful in Interactive Marketing in
Social Media
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

21. DISCLAIMER
Created by Nilav Patro, NSIT Delhi, during
a marketing internship by Prof. Sameer
Mathur, IIM Lucknow.