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Subject category: Marketing
Authors: Claude Chailan (International University of Monaco)
Published in: 2011

Abstract

Club Mediterranee - commonly known as Club Med - is a French company of vacation resorts found all over the world and is considered to be the creator of the 'all-inclusive resort' format. Club Med was started in 1950 and expanded rapidly to exotic and distant locations and also created winter villages. In 1990’s the company started losing customers. Having fallen behind shifting market trends in the 1980s and 1990s on the back of overconfidence in the concept as timeless, Club Med undertook numerous strategic measured to defend a declining leader position. Subsequent to Club Med experiencing a drastic decrease in shares in 2001, a new CEO, Henry Giscard d’Estaing took over leadership the following year, after which the company seemed to have trouble focusing on exactly what its strategy would be concerning a shift from a mass market company to a luxury vacationer. However it proves to be very difficult for Club Med to follow the plan it had established for the revamping and upgrading of its villages and the Club has been constantly behind its objectives all along the past decade. The case helps to understand what type of marketing myopia leaders can face. Second, the case makes way for a discussion on the brand lifecycle and the best way to remain market-driven on continuous basis. Third, the case facilitates an understanding of the ‘business model’ issues and shows how the choice of a business model impacts the marketing practices inside a company.
Other setting(s):
1999-2011

About

Abstract

Club Mediterranee - commonly known as Club Med - is a French company of vacation resorts found all over the world and is considered to be the creator of the 'all-inclusive resort' format. Club Med was started in 1950 and expanded rapidly to exotic and distant locations and also created winter villages. In 1990’s the company started losing customers. Having fallen behind shifting market trends in the 1980s and 1990s on the back of overconfidence in the concept as timeless, Club Med undertook numerous strategic measured to defend a declining leader position. Subsequent to Club Med experiencing a drastic decrease in shares in 2001, a new CEO, Henry Giscard d’Estaing took over leadership the following year, after which the company seemed to have trouble focusing on exactly what its strategy would be concerning a shift from a mass market company to a luxury vacationer. However it proves to be very difficult for Club Med to follow the plan it had established for the revamping and upgrading of its villages and the Club has been constantly behind its objectives all along the past decade. The case helps to understand what type of marketing myopia leaders can face. Second, the case makes way for a discussion on the brand lifecycle and the best way to remain market-driven on continuous basis. Third, the case facilitates an understanding of the ‘business model’ issues and shows how the choice of a business model impacts the marketing practices inside a company.

Settings

Other setting(s):
1999-2011

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