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Hedonism II Group Case Analysis
Question 1: Define the main problem/opportunity.
Hedonism II has an opportunity to alter its strategic direction and break away from the Club Med mould. By adapting a differentiation strategy Hedonism II aims to be a leader at providing carefree holidays to young singles and couples seeking a hedonistic experience. Hedonism II’s main problem is maintaining market share as it enters the mature stage of the product lifecycle (Lewis and Chambers 2000, 373). To do this Hedonism must increase the services offered to guests in order to be perceived as a value filled vacation option.
An indication that Hedonism II has entered the mature stage is a decline of about 10 per cent in year round occupancy in spite of their loyal 45 percent repeat guests. ...
• Gary Williams, General Manager of Hedonism II is considering a nude pool, a sit-down restaurant, and additional guest rooms in order to attract and keep a market of guests who enjoy the clothing optional lifestyle.
• Hedonism II should differentiate from the Club Med pattern by being innovative while focusing on the sensual aspects of the Hedonism experience, and offer value added services that give guests a feeling of luxury.
• The Hedonistic Boarders Marketing Group suggests Hedonism II look to a new market segment to fill the gap created by the market segment that moved to the family style Club Med Resorts. We suggest that Hedonism II target gay and lesbian singles and couples seeking excitement, fun and relaxation for an all-inclusive vacation during designated weeks of the year. ...
• Presentation Mix - Superclubs promotes five Caribbean resorts, including Hedonism II. Promotions are targeted to Hedonism II’s specific target market: couples and singles, ages 25-45, seeking fun, adventure and a full array of activities. ...
• Positioning - Successfully positioned itself as the place of pleasure (hedonism) Hedonism II’s reputation is the main determinant attribute. ...
Weaknesses
• Market Share (decline) - Hedonism II focuses on providing activities considered hedonistic. Club Meds re-positioning as family friendly, has drawn off some of Hedonism II’s market. ... - The sex-oriented vacations were popular in the 80s and 90s, but Hedonism II is at a mature stage in its life cycle (Lewis and Chambers 2000, 373) and needs to be innovative, stay close to its customer, find new markets and do all this better than the competition. ... ) that add to the Hedonism experience.
• No Clear Market Leader - the repositioning of Club Med has left a void in the adult vacation industry that Hedonism II could define and lead with a strengthened brand. ...
Threats
• Market Share - Club Med changed its target market strategy; occupancy of Hedonism II fell by 10%. ...
• Weather - Hedonism II is located in a hurricane belt
• Trends - towards conservatism – may deter target market from considering Hedonism II.
Approximate Word count = 2302
Approximate Pages = 9.2
(250 words per page double spaced)
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