Case Analysis of Club Med

The time frame for this case is 1977. At that time, Club Mediterranee (Club Med) was evaluating its marketing approach to the United States market.

The Club Med concept was to provide a complete vacation package for club members within the Club Med villages. The cost of the complete vacation would be included in the price for the time booked into a village.

Club Med operated three different types of villages. The lowest priced and those with fewest amenities were the Hut Villages. Typically, these villages operated only in the summer months, and were the oldest of the facilities owned by Club Med. The other village types were Bungalow Villages, and Hotel Villages, which were characterized by greater amenity levels, and higher prices.

By 1977, Club Med was operating on an international level in several aspects. Its villages were located in a number of different countries, its customers came from a long list of countries, and its employees were also drawn from an international pool. Annual sales exceeded F2 billion, and were climbing steadily. The number of members, also climbing steadily, exceeded 500 thousand by 1980, while the number of

holiday beds exceeded 50 thousand. With all this growth, however, the organization's top management felt that it had not yet effectively exploited the United States market.

In any revision of its marketing strategy for the United States market, Club Med top management wi



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