• Product Development

• Product Development

The product manager can also modify the product by changing characteristics, such as quality, features or style, to attract new users and to inspire more usage. It might improve the product's quality and performance ­ its durability, reliability, speed, taste. Or, it might add new features that expand the product's usefulness, safety or convenience. For example, Nokia keeps adding new functions to its line of mobile phones, the mobile communications network operator Orange adds new services to inspire more usage of its network and Club Med has modified some of its holiday villages around the world specifically for business clients (see Marketing Highlight 14.4). Finally, firms can improve the product's styling and

attractiveness. Thus car manufacturers restyle their cars to attract buyers who want a new look. • The makers of consumer food and household products frequently introduce new flavours, colours, ingredients or packages to revitalize consumer buying. And Sony keeps adding new styles and features to its Walkman and Discman lines.

632 • Chapter 14 Product Development and Life­Cycle Strategies

Marketing

Club Med Corporate: the appointment of Philippe

Bourguignon last year, a large ren­

The Ultimate incentive

Highlight

ovation and upgrading project has

for Ihmian Capita]

14.4 been started. Modern well equipped

meeting rooms are being built When founder Gerard Blitz

and rooms are being upgraded to pitched up his tents in Alcudia on

comply with the ever increasing Balearic Island Majorca in the

demands of today's business bleak aftermath of the second

traveller.

world war, he achieved two major Club Med multinational staff, milestones in the travel industry.

the Gentils Organisateurs (GOs), He invented the all­inclusive holi­

normally responsible for looking day package and started Club

after holiday makers are being re­ Mediternmee, the French global

educated to look after business holiday organization. Now 50 years on, after

guests and apart from organising general holiday devoting its early years to organizing holidays for

entertainment are in charge of business cocktails, individuals from around the globe, Club Med has

video conferencing and audio­visual aids. added 'business villages' to its programme and set

In 1997 alone, some 1200 companies booked up 'Club Med Affaires', a separate division with a

with Club Med Affaires. Over 100,000 business staff of some 40 in Paris, and sales offices in major

executives visited Club Med's villages carrying European cities, such as Club Med Corporate in

around briefcases and laptops besides their towel London, to handle the executive groups and

and suntan lotion.

incentive market. Club Med Affaires offers 'group bookings' to Its initial Alcudia tent village in 1950 and the

companies for smaller groups from 20 people famous strawhut villages in 1952, were followed

onwards or the exclusive use of the village for by bungalow and finally hotel villages. Over the

larger groups in which ease the company can years, Club Med's appeal widened to include sin­

brand the whole village and adapt the daily gles, young families, empty nesters and active

programme to suit its exact needs. The exclusivi­ mature travellers. To cater 1'or all these different

ties are very popular for international product categories, Club Med introduced a wide variety of

launches where a certain degree of confidential­ sports activities, from sailing to circus schools to

ity is required and for incentive groups. With an golf. Now companies are also able to benefit from

impressive portfolio of international brand names Club Med's facilities such as beaches, pools,

as clients, Club Med is offering companies a real tennis and golf clinics, a variety of land and

alternative.

watersports activities, excellent restaurants and By selling its resorts during shoulder seasons its well­honed organizational skills.

to companies, Club Med has been able to position Around 27 of the 150 villages around the

itself favourably in the international market world have been adapted specifically for confer­

place. It's all­inclusive price structure, with prices ences, seminars and incentive trips. Following

starting from less than S30 per delegate per day, is ideal for companies with moderate budgets. On the other side of the spectrum, for those com­

panies who want to push out the boat and take over Club Med's specially designed luxury sailing cruise ship which can aecomodate around 38(1 guests in 190 cabins, which at a starting price of

565,000 per day, depending on route and season, is considered the ultimate experience by some

companies! Club Med's custom­built villages are proving a great sueoess with a 96% satisfaction

rate. Mixing business with pleasure has given the

Product Life­Cycle Strategies • 633

rapidly expanding Club Med Affaires division a est assets. There is a genuine need to invest in rapidly growing turnover, providing a healthy per­

people. Staff and customer loyalty, efficient com­ centage of the company's total turnover. 'The aim

munication and team motivation have become is to double Club Med Affaires turnover by the

major corporate issues facing companies of all end of the decade' says European Club Med

sizes. Working in the sun is highly motivating and Affaires Director Patrick Calvet.

Club Med's unique relaxed environment provides 'In today's economic climate, companies

the right opportunity for today's organizations to have come to discover that people are their great­

meet these kev issues' says Galvet.