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Club Med

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by

Di Tan

on 7 November 2013

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Transcript of Club Med

Company Profile
Products and Service Range
Products
Family
Couples
Single
Groups
Wedding
Honeymoon
Cruise
Beach resort
Service
Spa&Wellness
Golf
Scuba diving
Tennis
Discovery&Culture
Water ski
Wintersports
History
Founder
Gerard Blitz
1963
Gilbert Trigano
Serge Trigano
1993
1997
1950
Opened club in Tahiti
Entered North America
Single/young Family
First Mini Club (1967)
Non-for-profit For-profit
Competitors
e.g: Sandal & SuperClub
Revenue decline

Philippr Bourguignon
Holiday village company


Service Company
Budget resort concept
Young adults( Oyyo)

Took over a chain of French gym

Launched bar/restaurant complex

''Club Med World''

UNSUCCESSFUL
2002
Henri Giscard d' Estaing
New Stragety
Holiday village
Upmarket
New investors
Closed and renovated some villages
Returned to profit in 2005
Launched first 5-trident village in 2007
Renoveted Club Med 2 Cruise
Blue Ocean
Red Ocean
Club Med
Value Chain
Operation

Marketing & Sales
Inbound Logitics
(Suppliers)
After Sale Service
Distribution Channels
Service Design
&
Develpment
Chose location
Build & Design Resort
Design Service
Products
Activities
Building long-term relationship

Reducing Cost

Developing Responsible Purchasing

Locally Purchases
Roon Divison:
Recoption & Housekeeping
Food & Beverage:
Bar & Buffet & Restaurant

Leisure Service
Sports,Mini Club,Entertainment,ect.
Direct Net work
60%
Website
Group-owned agencies,
Call center
Indirect Network
40%
Travel Agencies
Shops in Shops
Market research

Promotion

Global Campaign
Happy line:
Feedback,Complain
PESTEL
Political
Economical
Social
Technological
Environmental
Legal
• Problems in North Africa (40% of sales are French related)
• Sensibility to political calm
• French government (+business partners) are trying to promote holidays through “holiday subsidies”
• Government related issues when they open a new affiliate in Asia (Fosun)

• Impact of the crisis
• Cost of investment
• Development of the Chinese and Asian market
• The economic situation of France is key right now to the group

• Problem with the local population
• The image of the holidays has been consolidated by films like “les bronzés”
• Higher awareness of the customers concerning the HR issues
• A desire for international luxury travel
• Club is held responsible of his partnership with airlines (1992 flight to Dakar)
• Important safety measures onsite for the different outing offered + child surveillance
• Acute awareness for the customer of the environment
• The preservation of beautiful environment is key to the quality of the resorts
• The weather is key to the enjoyment of a stay as outdoor activities are highlighted

• Different laws depending on the country for the sanitary issue
• Different issues concerning takeover by chines

SWOT Analysis
Strength
Historic all-inclusive innovator
Exceptional location
Partnership with airlines
Strong Organizational culture
Successful brand repositioning
International presence
Multiple distributional channels
Products and service ranges
Clear strategy towards Children
Weakness
• High prices compared to competitors
• Image of being popular and cheap
• Offering worldwide the same European image
• Risk of losing money in the club med 2 Cruise
(the wind surf has been sold)
• no mobile phone tailored app

Opportunity
Threat
Strength
Weakness
Opportunity
Threats
SWOT Analysis 2
Rapid growth of Asian and American markets
Increasing of outbound tourism
The growth of premium ski resort market in Europe
More online Interactivity with costumers
Raising demand of Eco-vacation
Economic crisis
Perceived brand positioning
Rise of competitors on the premium market
Aging European and American population
increasing ''do it yourself'' travelers
New markets / new product :
opening of villages in India, Russia,
South Korea.Villages for summer and winter

Existing product/new market : development in Asia
New market / existing product :
focus on child / teenage in Asia


Existing market/adjacent product :
attracting seniors in Europe
Existing market/new product :
create a phone app
Existing market/new product :
resorts in exceptional, historical destinations with chef food
SERVICE
A phone app for parents

Connetivity
Choices
Statistics
Founded: 1950 by Gérard Blitz.
Revenue: 1459 million Euro (2012)
Stock price: 17,183 Euro
Villages : 71
Locations: 40 different countries
Employees :20,333
Number of Customer:1,268,000(2012)
Operational methods of Villages : owned(39%), leased(49), managed(12%)
ANSOFF'S STRATEGIC MATRIX
QUESTION
What problems Club Med may face when expanding in high-growth markets like China, Brazil and Russia?
How do you think Club Med's new strategy:
All-inclusive, upscale and international?
Di Tan
Marie Josslin

New Positioning
All-inclusive
Upscale
International
Full transcript