2007 monitor-club med-world_wide_

Copyright © 2007 Monitor Company Group, L.P. — Confidential

How to recruit 40 million GMs

Presentation to Club Med Worldwide, Paris

October 3rd, 2007

SAN FRANCISCO SÃO PAULO SEOUL SINGAPORE TOKYO TORONTO ZURICHSHANGHAI

BEIJING CHICAGO HONG KONGDELHI DUBAI JOHANNESBURG

PARISLOS ANGELES MADRID MUMBAI MUNICH NEW YORKMOSCOWLONDON

BOSTON

Copyright © 2007 by Monitor Company Group, L.P.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, photocopying, recording, or otherwise — without the permission of Monitor Company Group, L.P.

This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.

COMPANY CONFIDENTIAL


Since January the 27th, the sun never went down on the Monitor Planet …


Boston, Tokyo, London, Paris, Milan, Sao Paulo ….

Monoitor, London

Monitor Tokyo

John Gregg, Director, Monitor Boston

Monitor Paris


How we worked

• Focus groups in London, Paris, Tokyo, New York, Sao Paulo, Beijing and Milan

• Quantitative survey of 3000 Club Med target consumers in the UK, France, Belgium,

Italy, the US, Brazil, India, China, Korea and Japan.

• Experts interviews

• Carlos Vogelor, Executive Director, World Tourism Organization, UNWTO

• Jordi Busquets, VP Hotels, International Hotel and Restaurant Association

• Hilton McConnico (Paris)

• Professor Michael Porter, Harvard University

• Media analysis was managed by Monitor Boston, Monitor Paris and Universal Media


Your strategy: move up to where there is more growthand less low cost competition.

pleasurex

service x

high price=

PREMIUM

conveniencex

DIY x

small price=

MASS


reassuring & protective space

different time parenthese

top serviceme centric

environment

memorable experiences,

surprises: being & living

light & easy social networkingOur objective:

to capture the emergingneeds of affluent people

when it comes to holidays


MASS

ClubMed ispremium

2

1

PREMIUM

ClubMed isdifferent

We need a definition of the ClubMed experiencewhich would beboth premium and different.


Luxury

CoolWhat makes ClubMed

different there, but is

yet to be defined

Where ClubMed is

What ClubMed is


Luxury

Cool

2

1

A pithy word combinationthat conveys both

premiumness and difference


The right answer to

the major holidays

expectations of

our target

A new category

of market where

ClubMed can lead

ClubMed core

competence

A powerful

association

between Luxury

standards and

Cool attitude


«The cool is important. It's the top of our aspirations. The cool is not an

image, nor a way of seeing, hearing or acting. The cool is a way of being. »

Independent on Sunday, 1997

«Like all positional goods, being cool gets its value from comparison with others. Some people get to be cool only because others - indeed, most others -

are not.» Nation of Rebels, Joseph Heath & Andrew Potter

uses the phenomenal power of the Cool

CoolATTITUDE

WAY OF BEING

SELF EXPRESSION

IDENTITY


UNIFORM

CONFORMIST

EGOCENTRIC

SERIOUS

ARTIFICIAL

MATERIALIST

UNCOOL

Different

Creative

Open

Hedonist

Authentic

Cool

Cool has the power to

classify everything


5-STARS RESORTSCOLD

ALONEUNIFORM

CONFORMISTMONOCULTURE

SILENTSTANDARDS

ADULTS ONLY

ClubMedwarm

togethernessmomentum

anticonformistmulticultural

laughssurprises

children welcomed

UNCOOLUNIFORM

CONFORMISTEGOCENTRIC

SERIOUSARTIFICIAL

MATERIALIST

CoolDifferentCreative

OpenHedonistAuthentic

is a new category of marketwhere ClubMed can lead


Cool

Atmosphere

GM/GO/ participation

Week momentum

Activities

Children

Togetherness

Luxury

Sites

Villages

Service

Food

Drinks

High end sports

Eden programme

"Assembling cool and luxury and bringing it to life"

is ClubMed’s existing core competence


openness

well-being

transcendant, internalpeace and serenity

absence of conflict

state of harmony and balance

Freedom

Exclusivity

Service

Being cared, pampered

Belonging to a priviledged community

Protection

Security

meets the major holidays

expectations of our target


How to convince 40 million people to come ….

People who don’t all have the same opinion on ClubMed

With 26M € Media investment WW


High income peopleDemanding

RationalWell informed

Poor in days offWho can’t waste their

holidays

Families&

Adults

French, Belgiumand Swiss who have anold and downmarket

perception of Clubmed

US, UK Japanese, Korean and Brazilianswho know little about ClubMed

Chinese, Indian high incomeTourists who don’t know

ClubMed yet


Experiencecool luxury


Villages profiling

People / PR-Travel agents

-Friends-Experts

BrandsPartnerships Program

Contents

Off and on lineadvertising

Music

Experience cool luxury

Loyalty program


Cool Luxury criteriasVillages profiling

1 M Euros

Cool Luxury

As a new consumption trend

0,2 M Euros

Cool Luxury brandsprogram

0,3 M Euros

Cool Luxuryon demand

1,5 M Euros Cool LuxuryAdvertising expression

22 M Euros

Cool LuxurySound track

1 M Euros

Eden



On and off line media strategy


3 kinds of markets

Historical marketsFrance / Belgium

New marketsChina, India

Change the brand imageGive tangible proof

Boost bookings

Key marketsUK, USA, JapanKorea, Brazil

Build the brand imageGive the most specific proof

Boost on-line bookings

Settle on the brand imageBoost on-line bookings

1 32


3 kinds of media

Brand media :

Settle on a Premium Brand statement

and territory

Billboards and TV

Proof media :

give tangible reasons to prefer ClubMed

and build it as good value for money

Print and On-Line

Booking media :

boost traffic

On-Line, Radio

PR, Direct Marketing, On-Line buzz


On-line : Presence at the top sites for each country

•Ex : MSN, leading portals and search engines,

•Daily press sites, special interest sites

•Estimated Budget - Net : 2 800 K€

For a period of 1-3 months, according to country

Billboard : Installation in major city centers and/or major airports

•Presence of 3 months in general

•Net Budget: 1 600 K€

TV : presence on the most watched channels and most favorite shows

•3 weeks to one month

•Net Budget: 4 800K€

13,4 M

1


Press :

• Treatment in magazines and/or national dailies

• Favoring their proximity to the ClubMed universe of reference

• 2-3 month presence

• Net Budget: 2 300 K€

Radio : Used in France and in

Belgium as a booster during promotional periods

• 4 to 8 week presence

• Net Budget : 1 900 K€

11,6 M

1


On-line : Presence on top sites for each country

MSN, the leading portals and search engines

Daily Press sites

Estimated Net Budget : 1 500 K€

For a variable period (1-3 months) according to country

Billboard : Installation of tarps in major city centers and/or major airports

3 month presence in general

Net Budget : 2 100 K€

+ Eco and Travel Press news 1000 K€

4,6M

2


On-line : the biggest local web site

China : Baidu, Sina, Sohu, Taobao, MSN,…

1 month campaign : 500 K€

Billboards: in major cities and airports

China : Shanghaï, Guangzhou, Beijing

India : Bangalore, Mumbai, Delhi

1 year : 2 500 K€

3M

3


Year 1

Brand media :


and territory

Billboards and TV

Proof media :

Provide tangible reasons why people should prefer ClubMed

then build its good value for money

Print and On-Line

Booking media :

boost traffic

On Line, Radio

PR, Direct Marketing, On-Line buzz, Brand Ambassedors

1 32

1 32

1 2


Years 2 & 3

• Reinforce backbone media in key markets

• Give proof to the promise in emerging markets

• Lighten up the system in historical markets

Migrate TV investment to press in key and emerging markets.


Years 2 & 3

Brand media :


and territory

Billboards and TV

Proof media :

Give tangible reasons to prefer ClubMed

and build its good value for money

Print and On-Line

Booking media :

boost traffic

On Line, Radio

PR, Direct Marketing, On-Line buzz

1 32

1 32

32


3 kinds of markets

Historical marketsFrance / Belgium and

Italy

New marketsChina, India

Proof of promise and reservations generating

media

8,6ME

Key marketsUK, USA, JapanKorea, Brazil

Brand, Proof & reservations generating

media

10,9 ME

1 32

Brand, Proof & reservations

generating

media

2,5 ME



Cool LuxuryAs a new consumption trend


Cool Luxury on demand

Cool LuxuryAdvertising expression


Eden






• Show the Cool Luxury holiday experience

• based on the ClubMed core products• Sports• Child Care• Food• All Inclusive• Villages Renewal• …

• To build Cool Luxury as an attitude and as an aspirational lifestyle




















• Define a new code from the promotional speech to the product one :

• Use luxury language on Cool views

• Give a strong call to action to the website to help prospects to have more informations, demo on ClubMed products reality

By ClubMed


Cool LuxuryAs a new consumption trend



Creating a Cool Luxury Attitude trend

• Launch a PR campaign so that the idea of Cool Luxury will bea truely spontaneous and natural consumer trend

Trend Seeding


• A partnership with one of the two worldwide cool luxurymagazines : Wallpaper and Monocle

• A special « CooLuxury » worldwide edition defining whatrepresents CooLuxury and what does not.

trend

QuickTime™ et undécompresseur TIFF (non compressé)

sont requis pour visionner cette image.











Brands program

Share this Cool Luxury Attitude with all Cool Luxury brands consumers


The Trojan Horse strategy

• Because the Cool Luxury attitude is the link between all Cool Luxurybrands consumers

• Invite them to discover ClubMed

• The Cool Luxury brand program will be a membership program dedicated to all the WW consumers who already love cool luxurybrands

• Obviously this program has to be built with your partners

Brands program


From ClubMed partnersto the CooLuxury program

From Cooluxury program toClubMed home site throughto Cooluxury on demand

1

2


• A e-BUSINESS platform :• the objective of this platform is to generate additional revenue

for all partners ( a recruitment tool + loyalty accelerator)

• A partnership platform :• all offers are financed by partners

• A communal target for all partners: the TOP 20• EDEN members + partners clients ( = Club Med prospects)

• A membership depending on Club Med usage: access stopped if no visit to Club Med in the past 2 years

Brands program


Brands program





• From 1950’s, ClubMed has developed innovative, category busting anxilliaries thatset it far apart from any other resort brand: organised sports, child care, GMs, wellbeing …

• ClubMed has the legitimacy to broadcast these contents, Cool Luxury contents

• More than corporate videos, we’ll develop exclusive and premium content, to bring to life just what is the ClubMed experience

on demand

Make Cool Luxury a content developer


• We’ll develop an on line, mobile TV platform, restricted to Cool Luxury members

on demand


Cool Luxury Village profiling



village profiling

Use Cool Luxury criteria to help prospects to choose the the perfect village to suit theirneeds


And then reduce the gap between expectations and experience

• A Cool Luxury way to introduce your village videos

• Use a GO spokeman to introduce and welcome web users

• Use « cool and luxury criteria » to select the village

• Who you are

• Family, HoneyMooners, Kids, Teen

• Which kind of luxury standards are you expecting

• Near, far away, beach, montains, exceptional, wilde-open spaces

• Which kind of cool do you enjoy

• Discovery, learn, relax, exercise, have fun

village profiling


web/index.html

web/index.html


Eden



& Eden

1) VOLUNTARY AND FREE MEMBERSHIP: Being part of Eden is buying into a COOL LUXURY life-style

2) Reward based on FREQUENCY rather than VALUE to build loyalty

Short term ( the coming year): to boost immediate repurchaseLong term ( the following 3 years): to reward long term loyalty

3) Manage every program step according to Customer VALUE AND POTENTIAL

Use Cool Luxury to enrich the loyalty program


Reward rules – annual basis

The more often I stay at a village, the more privileges I IMMEDIATELY receive

*Valid during the stay*Will be managed as additional or included day depending on travel logistical constraints

& Eden


Cool Luxury

Sound track



The Cool Luxury sound track

• A cool luxury sound track, which will be sold as an original track in the villages, from a QR code on print, through all partners points of sale ...

• Because listening music is a good way to discover places

music


Guidelines

• Exclusive

• Original

• Chic

• Cross cultural

• Timeless

• Sensual

• Warm

• Cultural references

• Escapist

music


Soundtrack interpreted by Anna Karina

music


• Air, Once Upon a Time

• Charlotte Gainsbourg, 5 55

• Dr Buzzard’s, Sunshower

• El pero del mar, You gotta get it get

• Henri Mancini, Breakfast at Tiffany’s

• Jamie Lidell, Multiply

• Mellow, Seek you

• Nick Drake, One of these things first

• The Last Town Chorus, Modern Love

• Claudine Longet, Good day sunshine

• Bob Lind, Cool summer

• Nina Simone, Here comes the sun

• Weezer, Island in the sun

• Katie Melua, Just like heaven

• Persephone’s Bees, Nice day

• Minnie Riperton, Simple things

music

An exclusive selection of international tracks reflecting the mood



Cool Luxurysparking a new consumption trend



a recruitment tool





Eden

As a loyalty tool



Thank You !

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