I. Implementation of marketing mix (4P’s mix) Product: 1) Product Level: The Customer Value Hierarchy Core Benefit: Club Med is an innovative all-inclusive holidays for traveler/family to relax and enjoys carefree getaway and unique experiences with their loved ones. Given travelers/ customers the environment of freedom and happiness, rejuvenate spirits and feel brand new once more. Basic Product: Club Med’s services: When arrive in the airport, Club Med’s G. Os will be waiting there and had arrange the resort room for all the customers.
With best services and guide the customers to take speedboat to the resort/island. There will be a warm welcome with the welcome drinks from the moment when customers arrives the resort/ island. Club Med’s G. Os will be waiting to answer all questions at the reception desk, by given the most important information (activity and excursion timetables). A G. O will escort you to the room and the luggages will send to customer’s room shortly. Club Med provides language support (Japanese, Frances, English and Chinese) for the whole day. For example: There will be a English-speaking G.
O for English speaking customers and to help them sign up for activities and to attend to customer’s needs during daytime and evening programs held at the Resort. By given peace of mind to the relaxed parents and happy children, Club Med also provides well-trained G. Os to supervise the event and put children who speak the same languages together during activities. Club Med also provides services of scheduling the day and night events for every customers, customers can choose to follow the schedules or arrange the schedule by their own. See appendices 1a and 1b) Expected Product: Club Med provides all inclusive holiday: ONE PRICE (Premium All-inclusive Package = Return flight/ferry and transfer + Twin share Superior accommodation + All-day Dining on sumptuous buffet and gourmet cuisine + Open bar and snacking served during the day and night + Sports and leisure activities with expert tuition + Nightly love entertainment + Supervised activities and childcare for the little ones.
By giving customer a premium all inclusive holiday and quality experience that allows customers to enjoy everything without having to worry about anything. Sports and leisure activities includes water sports (kayaking, windsurfing, scuba diving, snorkeling and sailing), land sports (beach-volley, club med fitness, flying trapeze and circus activities, football or beach soccer, golf, walk or accompanied trips, cardio-training room, squash, tennis, archery, horse riding and bicycle), leisure (swimming pools, quiet area for adult, sea walkover and internet/ Wifi access) and spa massage.
For the water sport, there will be an expert coaching snorkeling and scuba diving. For scuba diving, Club Med will provide a doctor to ensure customer well-being/health whether the customer are suitable for diving lesson. Augmented product: Club Med membership cards, on the first stay with Club Med, every customer automatically become a Turquoise Great Member, and giving the opportunity for customer move up to the Silver or Gold categories on the future visits.
The benefits for the Silver Great Members are entitled to have 15% discount at the Club Med boutiques and 10% discount on the selected excursion (Seaplane, scuba diving course) enjoy scuba-diving inside the lagoons and in the open sea, where you can find a huge variety of coral and sea fans. You’ll see sharks, groupers, manta rays, lion fish and moray eels. For the Gold Great Member are enjoy more exclusive services, personalized transfer services to premium or luxury resorts, priority check-in at the Resort, complimentary room upgrade and late check-out.
The level of comfort about the luxury resort are giving private areas reserved for the suite guests with luxurious accommodation, premium sports, free Spa massage, “ Table Gourmet” fine cuisine, champagne served by the glass and a luxurious all-inclusive experiences. Potential Product: For the future, Club Med can open a training center for water sports and land sports courses: scuba diving (let customers get their diving license), golf training lesson and etc.
Club Med can publish a travel magazine, or book that let customer know different countries cultural, history and scenery. Club Med can extend their business into hold seminar that taught or discuss of “ Team Building” and lend the outdoor scenery of the island or resort. Club Med also can cater the seminar with food and best services. 2) Product Mix (Length, Width ; Depth) According to the above diagram of Club Med’s product mix (length, width ; depth), Club Med should cut less for the market development under ALPS, and added more island and resort under Asia category.
By development the island or resort in Taiwan, Hong Kong and China, because for the future economic, Asian will be the most have spending power and peoples for travelling. Thus, Club Med can meet different customer requirement and increase its market share and sales profit. Club Med is in the up-market stretch with more growth and higher margin. (1) Successful branding efforts focus on building relationships. (2) Successful brands seize extraordinary opportunities created by social and economic change. (3) Successful branding efforts allow both personalization and economies of scale. Price:
Club Med’s objective is to maximum the market share by using pricing strategy – Perceived value pricing, Promotional Pricing and Seasonal Discount. The pricing strategy let customers perceive value for money and an affordable price that attract customers. Perceived-value pricing: Club Med’s brand make customer perceived their products and services is worth for the money, by adopting all-inclusive package without any hassle, and customer can fully relax with their loved one. Promotional Pricing: Club Med giving customer who have silver or gold membership card to enjoy the cash rebates by 10-15%.
Club Med also giving a psychological discounting promotion for customer, for example: 50% for the second adult (two to go) at certain period for booking, $300 off per couple, 50% off for your second night stay in certain resorts. Seasonal Discount: Club Med conduct a price reduction of special offer for second person stay free promotion during the non-peak season and slow selling period. The special offer only in some stated location/resorts: Kani Maldives, Bali Indonesia, Cherating Beach Malaysia, Bintang Island Indonesia and Phuket Thailand.
Distribution: Club Med have three types of channel distribution: 1. Sales channel: By holding promotion activities in the lifestyle event or travel event, alliances with travel agency like Konsortium Express ; Tours Pte Ltd, distribute information and promotion on the internet webpage like “ Take me to great deal. com”, “ Coupon Snapshot”, “ Coupon cabin”, “ Go deal. com”, “ Fat wallets. com”, “ Groupon” and Club Med Webpage itself. 2. Delivery Channel: Club Med assign selective distributor for helping them delivery promotions, brochures and flyers. . Service Channel: Club Med alliances with UOB Bank and giving discount for UOB VISA cardholder. UOB bank helps Club Med to manage, collect the travel fees, and doing after sales services on behalf for Club Med. By providing installment and discount payment for the Club Med’s payer. Consumer Marketing Channels: Club Med are adopting one level of the consumer and industrial marketing channel, this is because it can be maintain the quality of products and services, and also give faster response to the consumer enquiries.
It can maintain it brand equity or even develop to be the best brand in the travel industry. Too many level of marketing channel will result in miscommunication and lead to decrease in the quality of services, thus Club Med adopted selective distribution strategy. By using selective distribution strategy, Club Med able to filter and select the qualified distributors. Modifying Channel Arrangement: Except distribution the promotion and information about Club Med all-inclusive package on the internet, Club Med also can develop an exclusive Club Med Travel Agency outlet in the shopping area.
Provides full information and create awareness for the Club Med brand itself and also distribute the brochures to the potential customers. Promotion: Club Med are using different media for promoting their brand and attractive offer to customers, for example: advertise in newspapers, brochures, newsletters, internet and lifestyle magazine. Newspaper: Create discount coupon and advertise in newspaper for the potential customer, it not just target the customers who know about the Club Med, and also create awareness for the customers who didn’t notice Club Med before.
Internet: By using internet to promote Club Med all-inclusive package and alliances with such as ‘ Groupon’, ‘ my deal. com. sg’ and etc. The Groupon will send an email to the customers and giving them the offer ‘ groupon’ for a limited time line to purchase it. Create Club Med Facebook page and posted updated promotions on the wall for the existing customers and potential customers. Club Med alliance with airline (SIA, Thai Airway) for promoting attractive promotions and activities. Appendice 1a Appendices 1b Club Med Membership Card
