Club Med

Topics: Branding, Luxury good, Luxury vehicle Pages: 6 (1920 words) Published: April 14, 2013
Visionary Gerard Blitz created a way to revolutionalize holidays, creating a place where people can live in the moment and be happy, his vision was Club Med. This was a concept centered on providing customers with leisure and unforgettable experiences, centered on freedom, pleasure and relaxation. Club Med was open to different cultures; customers were treated with kindness and were considered to be special. Club Med had become the major player in world tourism form its start in the 1950’s till 1the 1980’s. Due to the change in consumer behavior culture and market structure, Club Med faced many difficulties trying to maintain their number one position in the industry as competitors encroached on their territory by analyzing their mistakes, focusing on the consumer behavior in the recent times, all the things Club Med did not take into account. This has lead to great financial losses. Change in management over the years has left Club Med to be somewhat lost in the industry, failing to adapt to the market/ cultural changes in the industry. Club Med has diverted from its initial brand DNA which was instilled by Gerald Blitz. Club Med diverted from being a mass market brand to transforming itself to an up market brand with little or no experience in the field. This has led to potential luxury customers doubtful of their experience in the luxury sector and former loyal customers feeling lost and insignificant due to the drastic changes in the brand has made over the years. 1> Explain in detail Club Med loss of leadership and problems encountered after the 90’s. Develop a brand identity analysis using Kapferer’s prism. Club Med’s initial success around the 60’s and 70’s was based on a deep understanding of its customers, the willingness to respond to their needs, clearly defined brand vision and DNA with strong innovation making them an industry leader. The decline of Club Med started when they failed to adapt their product to the changing market, Club Med did not developed a market segmentation strategy and that was its weak point when facing their more conscientious competitors, Club Med failed to analyze the change in the market and consumer behavior over a period of time and therefore was one set behind its competition. The tourism market it is segmented in:

-single only
-adults only
-families only
Club Med ignored the fact that these segments evolved overtime and therefore it was hard for them to co-exist for example Families were not with the same products or services with single adults and they too desired a different atmosphere without families with children around. Brand with a strong identity should be able to accommodate a variety of diverse global consumers needs by offering them emotional benefits that make customer trust the brand.

Club Med failed to adapt their services to the changing needs of the clients. Their initial target Customer matured from single and young adults to parents yet the brand did not adjust its ways to cater for their needs. By not keeping up with the changes, Club Med brand has lost status as the industry giant. The fact that Club Med was not market driven enough in the '90s could be a consequence of the competition absence; they became comfortable with what they had achieved not realizing that they needed to be consistent and also flexible in the changing world. This is the reason why they failed to notice the new consumer trends, for example the client's desire for culture or adventure, they didn't realized that competitors were analyzing the market and its changes in order to encroach on its territory by also identifying Club Med’s weakness. Club Mediteranne’s brand identity analyzed using Kapferer’s prism: Physical Facet: Club Med’s brand characteristics are of freedom, fun, simplicity and friendship which was expressed and experienced through the innovative dimensions that helped customers, have an easy planned at holiday at an affordable rate, the...
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