Club Med Case Study the Case Study

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However, within this broad segment are likely candidates for additional segmentation such as marital status and age that would enable more targeted marketing campaigns.

Additionally, Club Med Spain needs more flexibility in its initial pricing to penetrate the market. As such, price setting should not be dictated by a Paris-imposed quota system, but rather should be determined by local management. Likewise, Spain ought to set aggressive incentives for its travel agent network rather than worrying about allowing too many agencies into its Club Med Expert program.

On the distribution front, boutiques have been tremendously successful for Club Med in Spain. Therefore, the company should move up its plans for opening a boutique in Valencia, especially since because it has low rental and rights costs.

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Finally advertising and promotions are essential for a growth company to build a mass market. Advertising is currently slated for the summer seasons, but should be a year-round activity during the first year of the campaign, especially since 26% of its GMs travel during the winter. While this is expensive, Club Med Spain might offset some of this by scaling down its number of brochures from 3 to 2, with one devoted exclusively to Spanish destinations. Further, Club Med needs to incorporate a customer-focused framework such as AIDA into its promotional development......

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