club med

The Club Med’s Global Strategy: Can the Club Med’s Holidaymaking Concept Work in Asia?

Magellan Marketing Approach: Any Marketing approach is based on the so-called four “Ps”: Product (the quality of what you want to sell on the market), Price (profitability for the customer), Place (channels of distribution: the small shop around the corner, supermarkets, outlets, etc. ) and Promotion (advertising campaigns, etc.). The Magellan Marketing Approach, named after a famous European navigator and explorer, is targeting the average consumer market, rather than the upscale market.

Upscale Strategy: An upscale Marketing Strategy is based on the segment of the market that can buy higher quality products or services at a higher price.

Institutional Investors: They are government-controlled organizations (for instance, institutions such as banks, insurance companies, etc. owned by government) that invest money in large blocks of shares at a preferential treatment, including lower commissions. They face fewer protective regulations because it is assumed that they are more knowledgeable about the markets the risks, therefore better able to protect themselves, the more so because they are backed by the government.

Fosun Properties: It is a limited investors’ company that went public on the Hong Kong stock exchange in 2007. It is one of the largest Chinese private companies. Its scope of business covers pharmaceutical and property development (real estate projects and new medical products created in research institutes and laboratories).

Segmentation of the Offer: The segmentation of the offer consists for a firm in dividing the market into segments corresponding to the needs and the financial means of the potential customers.

Segmentation of the Product: The segmentation of the product consists for a firm in categorizing the services or the product so as to meet better the customers’ requirements. For instance, in the Club Med’s strategy, single customers (upscale or average) do not have the same needs than those with their families.

Domestic Market (Chinese Domestic Market): A domestic market reaches customers inside a country, as opposed to the international market, which covers markets outside the country. Analyzing the Chinese holidaymaking domestic market, one needs to find out the number of potential customers who can afford to pay for vacations inside China. That implies knowing the income brackets, and spending power of the segment of would-be vacationers on the Chinese domestic market. Perhaps you select the top income and top spending urban population of three of the most well-off provinces in China (Shanghai, Beijing, Zhejiang, Jiangsu provinces).

Out-of-China Market: It is the international market, which involves currency matters, the appeal of the foreign offer to potential customers.

Potential Population Segment Targeted by the Club Med’s Concept: To determine the potential population segment targeted by the Club Med’s holidaymaking concept we need to assess some cultural factors. Is the G.O. idea appealing? Are activities for teenagers likely to seduce their parents? Is the family holidaymaking offer attractive to the Chinese? Are singles likely to be attracted by top notch services allowing them to make new acquaintances at the same time? Is having collective fun an appealing concept in Chinese culture?