Club Med

Section EGroup 3

Competition and Weaknesses[1]Competition

1. Competition in local markets2. New players coming up with unique positioning

strategies3. Competitors providing all inclusive packages4. Hires locals as well

Weaknesses1. Spartan2. Charges for wine and cigarette3. Cater to all segments( No specific target segment)

Customer Feedback• Customer feedback is the most critical source

of information to find out the scope of improvement in the hospitality business

• From Exhibit 11, it can be seen that we are at the top of our game in Sports and Daytime Ambience.

• We need improvements in 1. Bar2. Flights and Transfers3. Food(especially at Cancun)4. Rooms

Customers’ Demographics

•Three fourth of the customers want to come back

• More than 70% of the customers are 25-44 years old

•More than 75% are college graduates (Higher income bracket)

Growth Markets

•Potential of high growth in Germany, Britain, Netherlands

•Decent growth potential in Asia (mostly it’s Japan)

•Club Med has a very strong market presence in USA. Should capitalize on it

Inference• Profitability is comparable to the market

standards, but can be improved considering the strong influence it has over employees and suppliers.

• Chances of losing to newer players as Club Med seems to be Jack of all trades and master of none

• As customers can afford to pay more and they like the sporty feel of Club Med, “All inclusive” instead of “pay as you go” should be the new mantra

• Considering the demographics, Club Med should position itself as a premium destination and get rid of the Spartan tag.