Service Sector Management Case Study for Practice – November 2008

NOV: 2008

The success of the package holiday firm Club Med in becoming a household name in the holiday business is no accident. Everyone at Club Med, from the C.E.O. to the kitchen porter, is committed to the ideal of customer satisfaction through every element of the package. Every member of the staff is aware that guests are coming to experience a combination of the resort location, the excellent facilities and the all-important element of personal interaction. Guests come for a total experience not just to have a few days away from home and work.

Club Meds success can be attributed to the creative inclusive packages it has developed – all combining the basic mix of location, facilities and personal interaction. A typical Club Med inclusive packago is comprised of three meals a day, beer or wine with lunch arid dinner a swimming pool and gymnasium, sailing, kayaking, snorkeling, tennis, water exercise, rock climbing, archery, aerobics, volleyball, basket ball, table tennis, billiards, picnics, evening entertainment and dancing a night club and conference facilities.

Club Med offers different holiday plans – a budget plan, a moderate plan, and a deluxe plan –from which customers can choose in accordance with their expectations and expenditure. Within these categories they offer various packages primarily for couples, packages primarily for singles and packages primarily for families. The family package incorporates sub packages selected by parents for their children according to age – kids club. Petit club, Mini club and Baby/nursery club. With these various packages, Club Med offers not merely a holiday, but a hassle free vacation package.

In the 1970s and 1980s Club Med was in vogue as “the” holiday destination for many single people in Europe. As these customers grow older, got married, and began having children, their needs changed. In response, Club Med extended its services and packages-thereby successfully maintaining the loyalty of its original customers many years.

Using various specialized packages, Club Med has maintained its basic customer’s base while simultaneously extending its market demand to other customer groups.

Questions:

i)      Explain the product / services offered by Club Med.

ii)     Explain the market segmentation of Club Med.

iii)    Explain the importance of team work in service sector.