Dom Perignon Yacht Club (2016)

Dom PĂŠrignon Yacht Club Marketing Plan

Dom Perignon Yacht Club Marketing Plan Integrated Marketing & Communications Plan Jodi McNeill Fall 2016 Luxury and Fashion Management Savannah College of Art and Design

Table of Contents

I. Introduction II. Company Overview III. Yacht Club Overview IV. Yachting Industry Analysis V. France Market Overview VI. Target Market Identification VII. Primary Research VIII. Marketing Strategy Overview IX. Promotions X. Budget XI. Conclusion XII. References XIV. Appendix

Abstract

The Dom Pérignon Yacht Club was created to provide a luxurious and exclusive experience that no one else in the yacht club industry provides, for high and ultra high net worth individuals. This consumer group is no stranger to luxury items, but they will be given a place to experience luxury like never before. This exclusive membership club for the world’s elite will be located in Cannes, France and can be these consumers’ new home away from home.

In order to capture this consumer group, The Dom Pérignon Yacht Club Marketing Strategy has been curated specifically with them in mind. With our marketing emphasis on events, each member will be allowed to be a part of exclusive events and and VIP opportunities by being a member of this yacht club. These members may or may not own a yacht or not, yet this social yachting club will bring together these likeminded individuals.

The Dom Pérignon Yacht Club will offer an experience that is incomparable to its competitors. This is because, based off our consumer’s needs and desires they most value the amenities offered in the club.

Our yacht club will have dock space to accommodate even the world’s largest yachts, since the size of super yachts is rising (Forbes). These yachts will be cared for by the marina and accommodate any needs these yachts or members may have.

The club will house our champagne bar, restaurant, spa, gym, retail store and event rooms. While the exterior of the club will house our pool, helicopter pad and tennis courts. These amenities are unique to our yacht club, because they offer everything one could need in one location.

Having this brand experience for our consumer will only enhance the brand’s image of one that is of opulent luxury. This yacht club will also insure the increase in sales for Dom PÊrignon in the French region. This strategic plan will establish this new club and meet our financial sales forecasts.

Introduction

The nautical sector of the luxury industry is one that truly exudes a lavish lifestyle. High Net Worth Individuals (HNW), or those who can easily afford luxurious products seek out different ways to spend their money, and they do this through experiences and travel.

A yacht is the pinnacle of luxury and decadence. But more so, a personal yacht offers an experience you can’t get with most large vessels, privacy. For the HNW Individuals, many luxury items and experiences are part of a parcel of their lifestyle and are not necessarily considered a ‘luxury’. For example, HNW Individuals with private jets use their aircraft not only for leisure, but also for business purposes.

Yachts on the other hand, particularly mega yachts, are usually a non-necessity that many HNW Individuals who lead very public lives, the privacy of a family holiday on a yacht is a very special treat. The number of these HNW Individuals has grown rapidly in recent years, up 7.8% since 2014, reinforcing the perception that the very wealthy have benefitted most in the favorable economic climate (Ro, 2014).

I have developed a marketing plan for the Dom Pérignon Yacht Club. The focus is on creating a brand experience that does not already exist for Dom Pérignon. They have positioned themselves as a luxury leisure product and further developing their brand experience through this yacht club will work in tandem with their current brand situation and yet, offer something much more unattainable to most.

This marketing plan aims to enhance the customer relationship with Dom Pérignon, cater to the target consumers’ needs in a new way and establish a competitive advantage. It also aims to boost sales of Dom Pérignon in the French region. To ensure the most effective and reliable results, this marketing plan will utilize a combination of primary and secondary research strategies.

Business Issues & Objectives

The proposed marketing plan aims to:

-Create an LVMH experience that doesn’t exist in the luxury sector -Elevate their reputation of one that is of opulent luxury -Capitalize on the LVMH yacht business’ -Give Dom Pérignon a new creative outlet -Increase champagne sales in the French region

The primary goal is to create and establish a luxury experience that does not exist for Dom Pérignon.

Using the existing brand heritage and prestige of Dom Pérignon this plan will entice consumers and then seamlessly transition into a yacht club. In order to meet these objectives, my project will utilize a combination of primary and secondary research. This will create more leverage to successfully execute the marketing plan. After analyzing the research results, I then will be able to successfully create a strategy that the brand can then implement.

The Dom Pérignon Yacht Club is a membership only club for the world’s elite. This is a club not only for yacht owners, but for those who charter yachts or want to be a part of this new brand experience.

Key Success Factors

The primary goal of this plan is to create an LVMH experience like never before by seamlessly integrating two of its houses. In order to achieve this goal, the implementation of both the marketing plan and the development of the yacht club require key success factors.

-Location is the main key component when creating a successful yacht club.

-Differentiation Strategy -Brand Awareness -Increase Sales -Segment Brand and Diversify -Amenities -Privacy

Company Overview

Dom Pierre Pérignon was a man who lived from 1963-1715 and was a monk and cellar master at the Benedictine Abbey located in North-Eastern France.

He pioneered a number of winemaking techniques around 1670, one being that he was the first to blend grapes in such a way that it improved the quality of wines. More than a century after his death, the first vintage bottle of Dom Pérignon was created in 1921 and was only released for sale in 1936 in New York. The brand was given by Champagne Mercier to Moët in 1927 for a wedding between the two families (LVMH). The first buyers of Dom Pérignon in 1921 were 150 customers of Simon Bros. & Co., the company imported Moët in the United Kingdom, which ordered the first 300 boxes and were then shipped to the United States shortly thereafter (LVMH).

As of present day, Dom Pérignon is a brand of vintage champagne produced by the champagne house Moët & Chandon under the LVMH conglomerate and serves as the house’s prestige champagne. Dom Pérignon can only be a vintage and blended. Each year, the Chef de Cave reinvents the House style with different grapes, creating a unique vintage, a perfect balance between the expression of Dom Pérignon and the expression of the vintage itself. It is made using a subtle blend of two grape varieties- Pinot Noir and Chardonnay, which are taken from the very best vineyards in Champagne (LVMH).

SAVOIR-FAIRE The philosophy, vision and spirit of Dom Pérignon are incarnated in his Manifesto, a document which explains the ten basic principles guiding winemaking at the House. Dom Pérignon is always a vintage champagne, meaning that it is not made in weak years, and all grapes used to make the wine were harvested in the same year (LVMH).

From 1921 to 2005, Dom Pérignon champagne has been produced in 41 vintages. More than two vintage years in a row used to be a rare phenomenon, which until 2004 had only occurred three times: in 1969, 1970, and 1971; in 1998, 1999, and 2000; in 2002, 2003, and 2004. 2005 marked the first time when four vintages had been produced in a row.

The 41 white Dom Pérignon vintages up to 2006 are: 1921, 1926, 1928, 1929, 1934, 1943, 1947, 1949, 1952, 1953, 1955, 1959, 1961, 1962, 1964, 1966, 1969, 1970, 1971, 1973, 1975, 1976, 1978, 1980, 1982, 1983, 1985, 1988, 1990, 1992, 1993, 1995, 1996, 1998, 1999, 2000, 2002, 2003, 2004, 2005 and 2006 (LVMH).

Since 1959 a rosé version of Dom Pérignon is also produced. 24 Dom Pérignon Rosé vintages have been produced until 2004: 1959, 1962, 1964, 1966, 1969, 1971, 1973, 1975, 1978, 1980, 1982, 1985, 1986 (the only rosé vintage where the white version was not produced), 1988, 1990, 1992, 1993, 1995, 1996, 1998, 2000, 2002, 2003, and 2004.

Each year, the Chef de Cave reinvents the House style with different grapes, creating a unique vintage, a perfect balance between the expression of Dom Pérignon and the expression of the vintage itself. It is made using a subtle blend of two grape varieties – Pinot Noir and Chardonnay – which are taken from the very best vineyards in Champagne. The wines owe their complexity to the slow ripening of the grapes, which conserves freshness while revealing new aromas and new textures with the passing of time. These aromas, which develop in the wines as they are protected from oxygen during the aging process, guarantee exceptional cellaring potential and a characteristic minerality which is an aromatic signature of the House (LVMH).

LVMH & Dom Pérignon

The Wine and Spirits business group for LVMH had a very good year in 2015, marked by solid gains in champagne. Volumes were up 3% in champagne. Dom Pérignon continued to develop internationally and roll out its range of premium products. The brand’s motto “The Power of Creation”, aimed at elevating the tasting experience of its vintage champagnes.

Based on the simple promise to ‘make the best wine in the world’, the brand often references the ‘visionary spirit’ and ‘exceptional daring’ of its 17th Century founder. Its contemporary brand vision remains one of the true luxury, but emphasizes the constant reinvention of the ‘exceptional’. It aims never to compromise on quality and to ‘speak to the ages’ while remaining ‘intensely modern’. Focused exclusively on a self-selecting demographic of 21-pluses who see themselves as very high class and are very wealthy. Because of the high price point, the segment is self-selecting and consists only of those who can afford it. Simply put, if you can afford it, they will sell it to you (LVMH).

Dom Pérignon has been involved in artistic collaborations and various campaigns in order to highlight what is happening with their brand at the time.

Having an experience that aligns with the brands intended purpose ‘The Power of Creation’, the Yacht club will incorporate a new experience that will allow the consumer to have the ability to live in a Dom Pérignon world. It will be as if they are relaxing and vacationing on the French Riviera inside their very own luxury Champagne bubble.

The brand’s current campaigns align with the lavish lifestyle one has to have in order to afford their products and incorporates the use of other senses to evoke the feeling you are drinking Dom Pérignon.

Mission “The LVMH group brings together truly exceptional Houses. Each of them creates products that embody unique savoir-faire, a carefully preserved heritage and a dynamic engagement with modernity.

These creations make our Houses ambassadors of a distinctively refined art de vivre” (LVMH).

Vision “We must express our ideal, our singularity, striving always towards an absolute. It is a quest without end, where the inspiration keeps its mystery, for Dom Pérignon to reinvent itself with each vintage” (LVMH).

Yacht Club Overview

Yacht Club Industry

Although the terms Yacht Club and Sailing Club tend to be synonymous, some general differences regarding the recreational use of boats can be broadly outlined. Historically a Yacht Club tended to focus on a membership composed of yacht owners, including motorboats. This type of club often was extremely exclusive, attracting the aristocracy or the high class and leaving small boat owners out of the circle. On the other hand, a Sailing Club tended to focus on a membership composed exclusively of owners of sailboats, including smaller boats such as dinghies. These became very popular towards the end of the 19th century when small boats began to be produced on an industrial scale (Parker).

Yacht clubs are often known by their initials (e.g. New York Yacht Club abbreviated as NYYC and Kamini Yacht Club abbreviated as KYC). Many well-known yacht clubs, including the Yacht Club de France and the Royal Yacht Squadron, have been established under royal patronage or have been granted the title at some point in their history.

Organized and run by the members, Yacht Clubs became a place to promote the sport of sailboat racing and cruising, as well as provide a meeting place for the particular social community. The membership is a mixture of people with specific recreational affinities. Generally, the members include those who sail as crew for cruising or racing and boat owners. Members decide on the objectives of the club to satisfy the membership and to attract other like-minded individuals. For example, some clubs include owners of powerboats, while others specifically exclude them. In order to overcome difficulties concerning the affinities of their members one particular club may have two sections, a sailing section and a powerboat section (Parker).

Members Clubs often have paid staff for catering, bar duty, boat yard duty, accounts, office etc. Elected members of the club are responsible for the control and organization of the club though roles such as Sailing Secretary, Commodore, Cruising Captain, Racing Captain etc. Smaller clubs will typically require active participation of the membership in activities such as club maintenance and equipment (Parker).

Most classical clubs focus on the membership, however some clubs are run on a commercial basis.

They may be owned by individuals or a company to provide a service and generate a profit. They are often they are associated with a particular marina or port. Objectives of these clubs are usually very similar to member’s clubs but the social side maybe more dominant.

Yacht clubs are organized like any other club or organization with committees, chairman, directors, etc. Due to the connection with the sea and hence the navy, the various posts use naval terminology.

For example, the chairman/CEO is the Commodore. Usually, under the Commodore there are also the Vice Commodore (in charge of land-based activities) and the Rear Commodore (in charge of waterbased activities); for clubs in the United States they might in turn be assisted by the Port Captain and the Fleet Captain respectively. In a few clubs in the United Kingdom the Admiral, which is one rank above the Commodore, is the senior officer. Each of these ranks has specific responsibilities to ensure the club runs smoothly (Parker)

The yacht club industry is one with a long standing history. Today there are much fewer new yachts than there are older. However, these clubs generally share the same type of amenities and are centered around a sailing regatta. The first and oldest yacht club to date is the Royal Cork Yacht Club in Ireland.

The Royal Cork Yacht Club is the world’s oldest yacht club founded in 1720 in Ireland. It was established by William O’Brien, 4th Earl and the 9th Baron of Inchiquin. Sometime in the early 1600s, the idea of sailing for private pleasure started to take root in the Netherlands. Later that century, during the Cromwellian years, King Charles II of England was in exile in the Netherlands and while there he became aware of this new and exciting pastime (Oldest International Yacht Clubs).

In 1660 after his restoration to the English crown and return from exile, Charles was presented with a yacht called Mary by the Dutch, which he sailed enthusiastically on the Thames. Soon several of his courtiers followed his example and experts are fairly certain that one of them was Murrough O’Brien, the 6th Lord Inchiquin (Murrough of the Burnings). It is said that he not only had he attended the court of King Charles from 1660 to 1662, but also that he had been created the 1st Earl of Inchiquin by Charles in 1664 (Royal Cork Yacht Club) .

It is also known that private sailing started to become popular in Cork Harbour shortly after his return, likely because of his direct encouragement. By 1720, interest in the sport had progressed so much that his great-grandson, the 26-year-old William O’Brien, the 9th Lord Inchiquin, and five of his friends got together to formalize their activities. This marked the establishment of “The Water Club of the Harbour of Cork”. Today, this club is known today as the Royal Cork Yacht Club and it is the oldest yacht club in the world.

Membership to the Royal Cork Yacht Club remains very exclusive. New members must apply for membership by first getting a nomination from an existing member. Potential member nominations must then be approved by the Executive Committee, participate in a trial period and then undergo a second review by the Committee before becoming official members (Royal Cork Yacht Club).

Yacht Clubs are a sports club specifically relating to yachting and are mostly located by the sea, although there are some that have been established at a lake or riverside locations. Yacht or sailing clubs have either a marina or a delimited section of the beach or shoreline with buoys marking the areas off-limits for swimmers as well as safe offshore anchorages. On shore they also include a perimeter reserved for the exclusive use of the members of the club as well as a clubhouse with attached bar, cafĂŠ or restaurant where members can socialize in an informal setting (Royal Cork Yacht Club).

Currently in the yacht club industry they are focusing on the revision and remodeling of older clubs and trying to bring a modern twist to them. Most of the newer and more modernized clubs are located in Asia. The reason for this modernization is the growing number of millennial’s who have stuck interest in the yachting community (Sun Sentinel).

Yacht Club Market

North America is the largest yacht market in the world followed by Europe. While the waters were a little choppy, this industry has benefited form increased participation and expenditures by consumer in the five years leading up to 2016, boosting industry revenue. Growth in per capita disposable income has allowed consumers to trade up to luxury goods for recreation.

There are fewer luxury yacht clubs than there are classic yacht clubs, which means there are few yacht clubs that can accommodate the world’s mega yachts. Also, there are even fewer that are not centered around racing and solely a luxury vocational experience. Only four yacht clubs have made the list as the world’s most exclusive and they vary in what it is that makes them so special and one thing that puts these clubs at an advantage is the dock space allowed for the increasing size of these yachts. Not everyone is interested in the racing and sailing portion of these clubs rather status and the experience provided.

Based off my yacht club market research, there are four competitors that I see proposing the most competition for the Dom Pérignon Yacht Club.

Competitor Analysis

Monaco Yacht Club

The yacht club market presents lots of competitors. They arise when looking into where you wish to go.

Location is the main determining factor but when in the French Riviera there are a few that stand out among the worlds elite.

1.

Yacht Club de Monaco The Yacht Club de Monaco was founded in 1953 by Prince Rainier and presided over by HSH Prince Sovereign Albert II since 1984. This yacht club brings together more than 1600 members from 66 nationalities. Many of the world’s most prestigious private yachts can be found there.

The yacht club is the symbolic centerpiece of Monaco’s remodeled harbor front. Celebrating the principality’s spectacular coastline and its nautical heritage, its series of deck-like terraces that step up along the harbor to offer unrivalled views out to races at sea, or inland over the course of the renowned Formula 1 Grand Prix circuit. The building is located on an area of reclaimed land, which extends the city’s existing marina eastwards and can accommodate a range of craft, from sailing boats to 100-metre super yachts. The club is entered via a glazed atrium that frames views out over the harbor to the palace. On the first floor is a clubroom, bar and restaurant (Yacht Club de Monaco).

Saint Tropez Yacht Club

2.

Saint Tropez Yacht Club With a capacity for 734 moorings divided between two basins on an area of nine hectares in the heart of the village, Saint-Tropez’s harbor is a main port of call in the Mediterranean. Innovation and top quality services have made it one of the most famous marinas in the world. Not only is Saint-Tropez a valued meeting place for captains of industry and an unrivalled center of entertainment, it is also famous for events, a privileged destination for cruise companies and a driving force for the town’s economy. And yet despite Saint-Tropez’ international status, the harbor has managed to maintain its social and cultural diversity. Forty people are engaged to welcome clients, be they afloat or ashore. They are there to organize the moorings, ensure the safety of people and property, to manage the financial, legal and administrative side, to keep the harbor clean and protect the environment, and to maintain the facilities and equipment (Port de St. Tropez).

What’s so special about St Tropez and the yacht charter scene? St Tropez is a small fishing village tucked into the coastline between the sky and the sea of the famous Cote d’Azur. In 1956, St Tropez was used as the setting for the sexy film “And God Created Woman”, starring Brigitte Bardot. The jetsetters soon came flocking to this sleepy corner of France in search of the same sensual lifestyle.

Today, although St Tropez is a Mecca for the riotously rich and famous, it deserves a place on any Mediterranean yacht charter itinerary. Whether you sail in upon a 60m luxury super yacht, a 40 foot bareboat or a 10-foot tender, the appeal remains the same.

Despite the growing popularity of St Tropez as a yacht charter destination, the village manages to maintain its gorgeous charm. There are timeless back streets to explore, filled with boutique shops, delis and patisseries. The aromas of freshly baked croissants and brewed coffee waft down the cobbled streets to greet you. Enjoy a sunset drink in one of the many cafes lining the dock. Watch the sleek super yachts, maneuver into their tight berths, fender to fender. At dusk, it’s quite spectacular to watch the evening lights reflect from the pastel pinks, oranges and yellows of the harbor side houses (Port de St. Tropez).

By day, enjoy the stunning beaches of the St Tropez peninsula. On the eastern side, lies three miles of curving white sand in the famous Pamplona Bay. At Tahiti Beach, you’ll find the hangout of the rich, the famous and the generally scantily clad: The Voiles Rouge beach club.

The Voiles de St. Tropez Sailing Yacht Regatta takes place during the first week of October each year and there are yachts available for charter so that you can experience the event, or even race in it. This is the final main event of the summer season in St. Tropez season and many say the most exciting event of the entire year for yachting. Past year’s Regattas yielded over 300 sailing yachts to compete, and each year the event only seems to get larger. Sail boats from across the globe will come to St Tropez to take part in this week long event and festival, with more than 300 luxury sailing yachts participating in the race and 3,500 crew. There are also thousands of spectators and many celebrations – this is an amazing sailing event to see (Port de St. Tropez).

Cannes Yacht Club

3.

Yacht Club de Cannes The Yacht Club de Cannes is 150-years-old but doesn’t exuded that mentality. It is home to the ever-famous Cannes Yacht Show that takes place every summer. They are active in Royal Regattas and international championships. The amenities they offer include a sailing school, restaurant and internships.

Cannes is one of the more famous French Riviera yacht charter locations. Cannes has all the features that a glamorous seaside resort town should have. There are stunning beaches, two yacht filled harbors and world class hotels and restaurants. One of the harbors on the right hand side, as you gaze out to the sea, is in on the doorstep of the Cannes Film Festival. Each May the restaurants, bars, hotels, beaches, and promenades fill up with the rich and famous from the movie industry. A Mediterranean luxury yacht charter in Cannes is the perfect base, in the heart of the action (Yacht Club de Cannes).

Cannes is relatively tranquil for most of the year and conveys the relaxed feel of a beach resort. Cannes is positioned quite centrally along the French Riviera with easy access to Antibes, Nice and Monaco in the north and St Tropez in the south. A power yacht could almost explore all of these ports, in a couple of days.

As one of the better known yacht charter ports in the Mediterranean, Cannes offers all the main types of yacht charters such as motor, sailing, bareboat charter, skippered, crewed yachts, catamaran, power boat, sailboat, luxury yachts and off the ever increasing super yacht charter.

The Mediterranean provides popular beaches, cobalt blue sea, sparkling coastlines, and abundant ports and yachting facilities. The Mediterranean is one of the world’s premier yacht charter locations and Cannes is positioned strategically right in the middle (Yacht Club de Cannes).

Antibes International Yacht Club

4.

International Yacht Club of Antibes Antibes on the French Rivera is a beautiful yacht charter destination in the Mediterranean synonymous with luxury and super yachts. The Port of Antibes is where the largest private and charter yachts in the world moor up. The old town has remained a beautiful example of an old French village and offers a great assortment of shops, taverns and restaurants of variable price. You can walk along the old ramparts along the sea and the long, arched protective wall along the port. There is also plenty of tiny little ‘more French than France’ streets in Antibes for visitors to explore (Yachting Basin).

As one of the most famous yacht charter harbors in the Mediterranean, if not the world, Antibes in the French Riviera has a large variety of yacht charter available. This is, as much as anywhere, where you are likely to pick up your luxury yacht charter. The yacht charters in Antibes include motor, sailing, skippered, crewed yachts, catamaran, power boat, sailboat, luxury yachts and off-course the ever increasing super yacht charter. However, the emphasis in Antibes is however, on larger luxury yacht charters, although the French Riviera is an excellent area for the smaller yacht to explore.

As with most of the Mediterranean, and all the French Riviera, the Antibes yacht charter season generally runs from April to the end of October. The summer season in July and August is the hottest and tends to have the lightest winds but also the largest crowds. This is also the high season as far as yacht charter goes. Other good times to charter yachts is generally on either of the shoulder seasons (April-May and September-October), each side of the main summer season, as the temperatures are still comfortable, and the onshore tourists have yet to arrive in their largest numbers or have already concluded their holidays (Yachting Basin).

Yachting Industry Analysis

A yacht is a recreational boat or ship. The term originates from the Dutch word jacht “hunt�, and was originally defined as a light fast sailing vessel used by the Dutch navy to pursue pirates and other transgressors around and into the shallow waters of the Low Countries. After its selection by Charles II of England as the vessel to carry him to England from the Netherlands for his restoration in 1660, it came to be used to mean a vessel used to convey important persons (Yacht Clubs).

Modern use of the term designates two different classes of watercraft, sailing and power boats.

Yachts differ from working ships mainly by their leisure purpose, and it was not until the rise of the steamboat and other types of powerboats that sailing vessels in general came to be perceived as luxury, or recreational vessels. Later the term came to encompass motor boats for primarily private pleasure purposes.

Yacht lengths normally range from 10 meters (33 feet) up to dozens of meters (hundreds of feet). A luxury craft smaller than 12 meters (39 feet) is more commonly called a cabin cruiser or simply a cruiser. A super yacht generally refers to any yacht (sail or power) above 24 meters (79 feet) and a mega yacht generally refers to any yacht over 50 meters (164 feet). This size is small in relation to typical cruise liners and oil tankers (Yacht Club).

Since the financial crisis in 2008, sales of super yachts (yachts above 24 meters in length) across the world has increased by a stunning annual average of 17% - a growth rate which many in the industry speculated had to end soon. And while the first quarter of 2015 seemed to confirm the market’s buoyancy, with no less than 87 sales (four times the number in 2009) breaking all previous Q1 records, Q2 sent the market into shock as sales dropped suddenly from 2014 by a massive 30%. For many, this was final proof of an inevitable slow down of the market (State of The Yachting Market).

It is true that 2015 was the first time in seven years that yacht sales ceased to improve on the previous year. With a total of 392 sales, 2015 dropped on the record-breaking 2014 by 6%. However, looking at the overall seven-year trend of what is a very cyclical business, 2015 outperformed even the best of all other years by at least 9% and even more significantly, saw the total value of units sold, as measured by last known Asking Price*, increase to a record $ 3.8 billion, 6% over the already record-breaking total of 2014. In fact, the average yacht sold for $ 9.6 million in 2015, up 32% on last year ($7.3 million), well over the average for the last four years. This was without any significant increase in 70 meter+ sales to artificially distort the numbers. 2015, against many expectations, not only saw increased turnover, but as first seen in 2014, continued to clear the market of the surplus stock that continues to force down prices. This was despite the 2.9% increase in the number of yachts under construction compared to last year (see below) and the fact that for the second year in a row, more yachts left the market than entered it (323 new entries compared to 392 sales) (State of The Yachting Market).

Growth Trends in Yachting Market 450 400 350 300 250 200 150 100 50 0

2012

2013 Sales

2014 Price in Millions

Size in Meters

2015

Number of Super Yachts Sold in 2016 as of June:

-Sold: 263

-Most Expensive: 60 Million Euros

-Largest Yacht Sold: 77M

-Brought in $5 Billion in 2015 worth of revenue

-Growth of 2.7% since 2015

-Employ 36,707 people

Yachting Market Overview

There are 4,476 super yachts in the world today, of which roughly a quarter are available for charter. At the same time, there are over 200,000 Ultra High Net Worth (UHNW) households, meaning there is a large opportunity for the industry to see strong growth in the coming years if it can tempt more of the Super Rich to give the yachting lifestyle a try. Superyachts are defined as being at least 100 ft. in length (Forbes).

Yacht Charter Market Overview The yacht charter industry is comprised of various types of yachts, including large, medium and small sized yachts. The global yacht charter market is driven by increasing number of charter destinations, rising disposable income of consumers and efforts by key stakeholders to showcase their offerings. In addition, current developments in yachts, product innovations coupled with latest technologies, will further boost the growth of the global yacht charter market (Future Market Insights).

Market Value Forecast The global yacht charter market was valued at US$ 35 billion in 2014 and is expected to reach US$ 51 billion by 2020, reflecting a CAGR of 6.5% during the forecast period. Eastern Europe is expected to exhibit the fastest growth as compared to other regions with CAGR of 7.2%. This growth is supported by rising disposable income of consumers and increasing number of yacht charter destinations. Other factors that are fueling the growth of yacht charter market are product innovation and technological advancements.

Since the market is growing it indicates the need for more dock space for the yachts that are chartered at the consumer’s convenience (Future Market Insights).

Product Type Analysis On the basis of product type, the global yacht market is segmented into motor and sailing yacht. The motor yacht is further sub-segmented on the basis of hull configuration into displacement, semidisplacement, catamaran, planning, and trimaran. Among the above mentioned sub segments, semidisplacement is expected to show the fastest growth among all the yacht charter market segments at a CAGR of around 7% over the forecasted period. The trimaran sub-segment is expected show below average growth rate in comparison to other sub-segments owing to the preference of consumers for other yacht types.

On the basis of rig configuration, the motor yacht segments is further sub-segmented into sloop, schooner, catamaran, and ketch. Total global contribution of yacht charter is expected to be 6.7% by 2020 (Future Market Insights).

Yacht Charter Market: Region Outlook Geographically, the market is sub-segmented into four regions primarily North America, Latin America, Europe (Eastern Europe, Rest of Europe), Middle East and Africa, Asia Pacific. Eastern Europe is expected to show maximum growth with CAGR of 7.2%. Among all these regions, Rest of Europe is the largest market in terms of revenue followed by Eastern Europe that contributed US$ 9.04 billion in 2014.

The growth of the yacht charter market is supported by the increasing high tier population and rising time for leisure activities among consumers (Future Market Insights). Yacht Clubs are meant to be utilized for leisure, and due to the rising time for leisure among consumers there is an equal demand for Yacht Clubs. Additionally, the Eastern Europe market is the most profitable having a new Yacht Club to draw in consumers will help drive more traffic and bring it more revenue for the French Yachting Market.

Consumer Type Analysis On the basis of consumer type, the sub segmentation includes corporate and retail. Retail consumers are further sub-segmented into individual, family/group and couple. The corporate segment is expected to show faster growth in comparison to retail consumers with CAGR of 6.7% over the forecasted period. Among retail consumers, the family/group sub-segment is expected to witness faster growth (Future Market Insights).

Yacht Size Analysis On the basis of yacht size, the sub segmentation includes large, medium and small sized yachts. The small sized yacht segment is expected to show a healthy single-digit growth with having a CAGR of 8.5%. in 2015. Furthermore, the large sized yacht segment is expected to follow the small sized yacht segment in terms of CAGR during the forecast period (Future Market Insights).

Key Trends There are a few key trends in the yacht charter industry, one being consumers preferring large sized yachts owing the increasing preference of consumers to visit charter destinations in large groups.

Yacht manufacturers are focused towards upgrading the motor yachts in order to reduce the adverse effect of CO2 emission in the environment. Moreover, the yacht charter market is witnessing the trend of innovative interior designs. Countries such as Greece, Turkey and Thailand are the most popular charter destinations among consumers. Corporate consumers prefer yachts for various product launches and business meetings. Retail consumers prefer yachts for leisure activities and social parties.

Large yachts are usually preferred by large groups of people while small yachts are usually preferred by couples. These key trends show room for a driving force behind new yachting experiences and yacht clubs. A lot of corporate consumers prefer yachting as it presents a place to close deals and impress your potential and existing clientele (Future Market Insights).

Global research conducted by ‘Future Market Insights’ into the state of the charter market from 2014 to 2020 predicts progress for the industry. This is largely due to the ‘increasing demand for yacht charter’ and ‘rising disposable income of consumers,’ supported by the growing number of charter destinations ‘fuelling the growth of the overall yacht charter market.’ New innovation in yacht technology is also a factor in the boost foreseen by 2020.

Analyzing demand and supply side sales across small to large sized yachts, the report finds the current $35 billion value of the charter yacht industry is likely to grow to $51 billion – with a CAGR (Compound Annual Growth Rate) of 6.5% in this time. It is additionally foreseen that by 2020 the charter market’s global contribution will be 6.7% (Future Market Insights).

The yachting industry is one that shows it is not slowing down anytime soon. The increase in wealth across the world and growth in the yachting culture is being brought up by affluent millennial. They will be the leaders in and driving force behind growth.

France Market Overview

Cote D’Azur Tourism/Cannes: Cannes is a city located on the French Riviera. It is a commune of France located in the AlpesMaritimes depart, and host city of the annual Cannes Film Festival and Cannes Lions International Festival of Creativity. The city is known for its association with the rich and famous, its luxury hotels and restaurants. The major Cannes port is also known for the biggest yacht show in the world, The Cannes Yacht Show.

Cannes has the idyllic views of the Mediterranean ocean with all of visitor’s favorite things about Paris.

It is romantic, and walkable and also has a lot of happenings; such as, restaurants, shopping and art galleries. Cannes is most associated with luxury and the rich and famous, thanks to its most notable events, but also because of its luxury hotels and restaurants that are scattered though out the town.

Cannes has proved to be a very positive location for the Dom Pérignon Yacht Club for a number of reasons. It is a popular destination for yachting yes, but also the major Port de Cannes/ Cannes Yacht Club is mostly a sporting club. They do not offer any additional luxury services or amenities. It is mostly known for the Regattas and Sailing School. Because those who travel to Cannes are aware of its luxurious qualities, this will be a place they can go to continue their luxury experience.

11 Million Tourists stay an average of 6.3 nights in Cannes along with 17% of all French Riviera tourists spend their time there. More than 850,000 passenger’s come by boat in the harbor Cannes: 633 cruise stopovers in 2015 and a total of 858,493 cruise passengers. 93% of passengers are stopping over and 7% are embarking. 35 marinas provide 18,402 dock spaces in all of the French Rivera (Cote de Azur Tourism).

When analyzing the French Riviera tourism based off of the two terrorist attacks in Paris and Nice, they have affected French tourism, especially by Aircraft. Air passenger traffic fell nearly 6% this summer season and hotel reservations were also canceled, however, arriving by yacht and staying on a personal yacht can be a way that travelers of this caliber of wealth can feel safe (Financial Times). With the increase of security and France’s positive outlook they are expecting a positive turn around for 2017 (Financial Times).

Target Market Identification

The world’s super-rich spend $22 billion on yachts every year, according to UBS and Wealth-X’s annual World Ultra Wealth Report for 2014.

On average, each of these UHNW individuals, or people with net assets worth $30 million and above, spends about $1.1 million on luxury items every year. Combined, they make up about 19% of the global luxury market, but their spending on yachts takes a whopping 88% of the luxury market.

Reports indicate that luxury spending is increasingly experiential, meaning that the super- rich are spending more money on intangible things like privacy. Private jets also take a chunk of the share of the luxury market for UHNW individuals, at 82.1%.

In September, a Wealth-X report showed that Russian oligarch Roman Abramovich owns the world’s most expensive yacht called Eclipse. It’s a 536-foot long boat with two helipads, a cinema and a restaurant. It is worth $1 billion.

The global population of UHNW individuals is a record 211,275 people. Here’s the breakdown of everything else they spend their money on (Ultra High Net Worth Luxury Market).

Understanding Yacht Club Consumer Yacht Club consumers possess a number of traits and qualities that are unique to them. First and foremost, social. Being a part of any membership clubs it seems obvious that the social aspect is very important. But, being able to be a member of multiple clubs is when the prestige of social clubs begins to enter. Having the ability to do what you want when you want and show that off to others is very important for these consumers. They are used to getting what they want and they value service oriented clubs. Also, they enjoy groups of people and going to events that these yacht clubs put on, whether or not they personally own a yacht. They want to have the option to do as they please. Their attitudes are one that they expect everything to be taken care of for them. This is a trait they have become used to because oftentimes when becoming powerful with wealth you have someone else take care of all things in-between (Williams).

These yacht club consumers enjoy the water and the allure that water gives to people they may invite with them. It is also a family affair. Usually the whole family will go to the yacht club together and either do things separate, for drinks, to use the facilities or their boat. These people are family oriented but see this as a way to be around like-minded individuals. A lot of these consumers see this as a right of passage once they also become successful like their family members.

These consumers have extremely busy careers. They are constantly looking to explore new ways to vacation and escape from their day-to-day responsibilities. They are adventurous when traveling and seek out new ways to travel and experience different locations; this is because of their entrepreneurial spirit. It is shown in studies that water is one of the most relaxing experiences that has a hold on all parts of the bodies senses.

So even if they are not a boat people but enjoy the water, yacht clubs are something they are attracted to. They also value privacy of membership only clubs. This is because when they spend their money on things they want to know what kind of people will be surrounding them and what they are getting. Because of this, they don’t want a public club that people go and visit, they specifically seek out exclusive clubs. Also, if it is not necessary to leave the club they wont. This is why they value the amenities so heavily.

Some of their most noted hobbies include: tennis, golf, skiing, philanthropic acts and outdoor activities/exercise. They are known to enjoy art, a nice glass of scotch at the end of their work day, accompanied by a cigar. These men and women are very health conscious, they take care of their mind, bodies and souls- whether it be through exercise, taking time for standing spa appointments or seeking spiritual healing through the latest holistic trends (Williams).

Because they value luxury, they shop at very high-end apparel stores and frequently travel for the sole purpose to shop and eat out no matter the location. They enjoy good food and good drinks and enjoy doing this with their friends.

Their mass amounts of wealth have also been noted to sponsor and give back to their local community along with worldwide organizations (Ultra High Net Worth Luxury Market). The most popular philanthropic cause among the ultra-wealthy is education, and health is the second most popular cause among these donors. Over a lifetime, the average ultra-high-network philanthropist donates 28.7 million. America leads the world in giving. American women with inherited wealth give a higher percentage (19%) of their money than any other group of ultra-high-net-worth individuals. And American billionaires who are entrepreneurs donate an average $179.5 million in lifetime giving, which is higher than any other group (Williams).

Luxury Goods The typical UHNW individual spends $1.1 million yearly on luxury goods.

Their top purchases are (in order): • Travel/hospitality • Automobiles • Art • Jewelry/watches • Private aviation • Yachts • Apparel

Demographic Segmentation The Dom Pérignon Yacht Club’s target market is males and females ranging from 28 to 70 years of age.

These consumers are classified within the Millennial and Baby Boomer consumer groups. Ultra High Net Worth Individuals will be our most volatile consumer. It was important to target our consumers who are used to the royal treatment and are familiar with luxury goods. They can expand over an age range, yet all value the same things. The “Young Affluents” of America are on the rise from both self made success and coming into family money, they and are looking for ways to travel with their large group of friends to show off their wealth. The Baby Boomers are looking for new ways to spend their money, especially when it comes to relaxation. These Affluent Americans have been broken down into two types: High Net Worth Individuals and Ultra High Net Worth Individuals and are almost equally men (51%) and women (49%). They are college educated, socialites, travelers and boating activists.

What is a ‘High Net Worth Individual – HNWI’ High Net Worth Individual (HNWI) is a classification used by the financial services industry to denote an individual or a family with high net worth. Although there is no precise definition of how rich somebody must be to fit into this category, high net worth is generally quoted in terms of liquid assets over a certain figure. The exact amount differs by financial institution and region.

Breaking Down ‘High Net Worth Individual – HNWI’ The categorization is relevant because high net worth individuals generally qualify for separately managed investment accounts instead of regular mutual funds. This is where it comes into play that different financial institutions maintain different minimum standards for HNWI classification. Most banks require that a customer have a certain amount in liquid assets and/or a certain amount in depository accounts with the bank to qualify for special HNWI treatment.

What Makes a HNWI? The most commonly quoted figure for membership in the high net worth club is $1 million in liquid financial assets. An investor with less than $1 million but more than $100,000 is considered to be “affluent” or perhaps even “sub-HNWI.” The upper end of HNWI is around $5 million, at which point the client is then referred to as “very HNWI.” More than $30 million in wealth classifies a person as “ultra HNWI.” HNWIs are in high demand by private wealth managers. The more money a person has, the more work it takes to maintain and preserve those assets. These individuals generally demand (and can justify) personalized services in investment management, estate planning, tax planning and so on.

Where HNWIs Live The Cap Gemini World Wealth Report reveals that as of 2015, the United States boasts the most HNWIs in the world at over 4.45 million. HNWIs represent over 1.3% of the U.S. population. Moreover, 61.2% of the global HNWI population reside in four countries: The United States, Japan, Germany and China. The two Asian countries on the list, Japan and China, had the largest increases in HNWI population between 2014 and 2015 at 11% and 16%, respectively. The biggest drop in HNWI population was suffered by Brazil, which had 8% fewer HNWIs in 2015 than in 2014.

In the United States as of 2014, 12 large metropolitan areas feature over two-thirds of the country’s HNWI population with the largest portion, unsurprisingly, residing in New York City. Rounding out the top five U.S. cities for HNWIs are Los Angeles, Chicago, Washington, D.C., and San Francisco (High Net Worth Individuals).

What is an ‘Ultra High Net Worth Individual (UHNWI) Ultra high net worth individuals (UHNWI) are people with investable assets of at least $30 million, excluding personal assets and property such as a primary residence, collectibles and consumer durables. UHNWIs comprise the richest people in the world and control a disproportionate amount of global wealth. Ultra-high net worth is generally quoted in terms of liquid assets over a certain figure, but the exact amount differs by financial institution and region (Ultra High Net Worth Individuals).

Breaking Down ‘Ultra High Net Worth Individual (UHNWI) Forbes curates lists of the world’s richest people. As of 2015, Bill Gates, Carlos Slim Helu and Warren Buffett top the list. Others near the top of the world’s UHNWI population include the Koch brothers Charles and David, Amazon founder Jeff Bezos, and several children and in-laws of Sam Walton, the late founder of Wal-Mart.

The biggest changes in the numbers of UHNWI appear in emerging economies and specifically in the BRIC nations of Brazil, Russia, India and China. China and Russia, in particular, boast more than 200 billionaires in their ranks, making these countries second and third, respectively, behind the United States. In Russia, Vladimir Potanin, chairman and key shareholder in Norilsk Nickel, and Leonid Mikhelson, a gas and petrochemical magnate, are two of the country’s top billionaires. In China, Wang Jianlin’s real estate fortune, Jack Ma’s company Alibaba, and Ma Huateng’s internet holdings propel them to the top of their country’s list of UHNWIs (Ultra High Net Worth Individuals).

How Many UHNWIs Are There As of 2015, the UHNWI population has 172,850 people among its ranks, a number 61% higher than 10 years earlier, and 1,844 of these individuals have over $1 billion, an 82% increase over the number of billionaires in the previous decade. Together, these individuals hold $20.8 trillion. Although they constitute only 0.003% of the world’s population, they hold 13% of the world’s total wealth (Ultra High Net Worth Individuals).

Where Do UHNWIs Live As of 2015, half of all UHNWIs live in North America, and a quarter of them live in Europe. AsiaPacific countries, excluding India and China, host 13% of the world’s UHNWI population. The United States has the highest number of UHNWIs, and 48% of them call the country home. China has the second-highest share of the UHNWI population with approximately 8%, and the United Kingdom follows with 4% (Ultra High Net Worth Individuals).

Above are the cities that bring in the most money, and have the most revenue and are home to America’s elite (The United States Wealth Report).

Based off of this information the habits that have helped me detect my yacht club consumers are ones that are of high and ultra high net worth who have extremely busy careers and enjoy traveling to relax.

These are consumers who also enjoy the water, and boating scene, or like the association of being around water. They value the privacy of membership only clubs.

Consumer Profiles

Name: David Clark Age: 31 Location: Los Angeles Occupation: Social Media Platform Founder Marital Status: Single Net Worth: $1.9 Billion Education: College Degree Interests: Traveling, Attending Exclusive Parties & Luxury Cars, Yachts and Planes.

Name: Maria Palermo Age: 36 Years Old Location: NYC Occupation: Human Rights Lawyer Marital Status: Married Net Worth: $30 Million Education: Law School Interests: Shopping, Traveling, Reading and Exercising

Name: Harrison Thomas Age: 60 Years Old Location: The Hamptons Occupation: Founder and CEO of a telecommunications company Marital Status: Married Net Worth: $18 Billion Education: College Degree Interests: Traveling, Boating and Being with his family

Primary Research

PRIMARY RESEARCH INSIGHT

In addition to the secondary research gathered on the yachting and yacht club industries, primary research was conducted to gain specific insight on the target consumer and what he or she desires from such services. Understanding attitudes and preferences for such services provided a solid foundation on which to build a business strategy.

Research Goals

Research Goals The goals of the primary research were to:

- Understand the opinion consumers have of Dom Pérignon

- Better understand the idyllic Luxury Yacht Club Consumer

- Understand the consumers who purchase or charter yachts

- Gain insight into what consumer’s desire from a yacht club

- Evaluate what the Dom Pérignon competitive advantage would be in the market This insight helped shape a better and more effective strategy.

Research Design

This primary research consists of a combination of interviews and in-club observations. All methods proved to be interesting and helpful in determining the services to be offered at the Dom PĂŠrignon Yacht Club.

Brief interviews were conducted with High Net Worth Individuals who are either professionals in the yachting industry, who are familiar with the yachting and boating industry and who have personally traveled to desirable destinations by yacht. Also, those who are familiar with the Dom PĂŠrignon brand.

Five interviewees were chosen: Sam and Melissa Peters, Teeny Harris Morrison and Trey Morrison, Landon Clements, Johnathan Taft and Rick Hendrick.

Sam and Melissa Peters are a husband and wife duo and owners of a custom interior yacht company here in Savannah, Georgia. They have not only chartered mega yachts, but are sport yacht owners themselves. They have traveled to several idyllic locations were able to give me good insight on the yacht club as an industry. Secondly, I have another husband and wife duo who are majority owners of the Carolina Panthers National Football League.

They have flown all over and lived a life of luxury and were able to give me insight on what it is like to experience luxury travel and events. Thirdly, Landon Clements, 38 she is a TV personality on Southern Charm and is from St. Simons, Georgia who now resides in Charleston, South Carolina. She not only came from an uber wealthy family, she married a mega millionaire entrepreneur and has had her very own yacht which she has traveled the globe in.

Jonathan Taft is a 30-year-old commercial real estate developer who has not only made a name for himself but is also from a highly successful family. They are personal yacht owners and have traveled the East Coast on their family yacht. Lastly, Rick Hendrick, 67, he is the owner of American NASCAR and Hendrick Motorsports. He is a Billionaire who has been to the Monaco Grand Prix on his very own yacht.

Yacht Clubs have been visited along the East Coast to get a better idea and understanding of the services and amenities that are unique to each location. Additional insight was gained on why their consumers chose to be a member of their club instead of others during these visits.

Interviewees 1) Sam and Melissa Peters 2) Teeny Harris Morrison and Trey Morrison 3) Landon Clements 4) Johnathan Taft 5) Rick Hendrick

Interview Questions 1) 2) 3) 4) 5) 6) 7)

What type of lifestyle do you associate with Dom PĂŠrignon?

What type of social events do you attend and which do you enjoy the most?

What are your top 3 leisure activities do you enjoy and why?

Your ideal yacht destination would be where and why?

What expectations and amenities would you expect from a yacht club?

Were you personally a member of the yacht clubs you visited or were you a guest of a member?

What would your ideal yacht club be?

Yacht Club Visits During my project I was able to visited three memberships only clubs on the East Coast. I conducted informal interviews with the staff to gather information on what their consumers were like, what amenities the club possessed and the prestige of their club. There was a set of questions I asked about the culture, consumers and media.

1) 2) 3) 4) 5) 6)

What kind of advertising are you involved in and what are the most successful forms?

Is your club membership only or open to the public?

What age range of consumers do you see most often?

Do they live nearby or do they travel to you?

What do consumers spend most of their money on at the club?

Do all of these members own a yacht/vessel of some sort?

Savannah Yacht Club I spoke with a woman at the Savannah Yacht Club who had been working in the administrative department for over 5 years. She said they are involved in print and digital forms of media. Their most successful form of marketing is though event and sponsorships. They partner and sponsor local fishing tournaments and have a vast amount of events dealing with things very different than yachting, such as weddings. They are a private club that is very family-oriented. They want it to be a place where everyone feels welcome. Because they are a family-oriented club they have a wide age range, anywhere for mature seniors to young children. She does say, however, that it is something that is like a right of passage for family members. They have the grandparents, parents, grandchildren, and so on who join the club to keep the family ties going. Most of the members live nearby and those that don’t usually travel to Savannah and spend their summer months here as their summer home. It is about 50/50 when it comes to members who own vessels. They have a lot of members who enjoy the sailing regattas and others who come for the amenities. It is a no brainer when I ask her what they make their most revenue from, alcoholic beverages. She said that’s one of the main reasons members come to the club. They get drinks with friends and family members and make a social event out of it. It is a place for them to relax and feel at home in this environment.

Seapath Yacht Club I spoke with the manager of Seapath Yacht Club who has been working there for three years. Seapath Yacht Club is located in Wrightsville Beach, North Carolina and is home to 65 slips that can hold vessels from 22 to 65 feet. They are not active in a lot of advertising now because they have a 2 year waiting list for new members. They like to maintain their exclusivity as the most desirable location and prestigious yacht club in the area. They deal only with older clients, with their youngest being in their late 20’s and oldest being well up into the late 80’s. These members do own their own yachts and are mostly moto yachts because that is the type of maintenance that they specialize in. These clients live nearby and also travel during the summer months. “Because the members own their slips and we take care of all maintenance they are able to leave their boats with us and have us look after them while they live elsewhere,” he states. Our consumers generally spend the most money on the yachts themselves, making sure everything is the way they want them. This yacht club is less geared towards family and more towards the yachting consumer.

Harbour Town Yacht Club Harbour Town Yacht Club is located in Hilton Head Island, South Carolina. I was able to interview the assistant to the event coordinator for the yacht club. It is a membership only club that has different levels of memberships to suit their customer the best. They advertise in print, social media and billboards in the Hilton Head area. They mostly see members in their late 30’s to early 60’s they bring their boats down for the summer and stay on them or stay nearby. They also have some that live nearby who are members of the clubs’ social sector. The club brings in the most revenue with alcoholic beverages and events. It is a popular place to come when it holds events and it is a way for their members to show off the club to those who are not members. The club is about 50/50 when it comes to those who only have social memberships and those that have the traditional yacht club membership.

“Our yacht club is known for its breath taking sunsets and so we have a lot of travelers come by boat to see it,” he says.

Research Conclusion

The interviews and in-store observations unveiled useful information about the ideal yacht club consumers. The primary research found that these consumers respond best to amenities offered within the yacht club experience. They look for convenience, personalization and exceptional customer service and quality. These consumers value the experience of location, events, entertainment and privacy. They are less likely found to be on social media and rather reading during their leisure. The research also showed that the Dom PĂŠrignon Yacht Club will surpass their competitors due to what this club offers.

Based on this primary research many opportunities exit for the Dom PĂŠrignon Yacht Club to expand its marketing and event efforts as a means to grow and continue business.

Marketing Strategy Overview

Strategy Goals and Objectives

Both primary and secondary research indicates that consumer are interested in a new way to experience the Dom PÊrignon Brand. They have a positive association with the brand and feel that is well suits a yacht club, because they associate the brand with luxury, celebration and leisure. These consumers value privacy of a members only club and enjoy visiting the Mediterranean when looking for an escape. From this insight several strategies have been made to ensure the consumers’ needs and desires are being fully met, thus increasing their level of satisfaction and brand loyalty. Younger generations are concerned with showing their wealth and success by creating a community for themselves wherever they are. They are concerned with labels and brand loyalty.

This strategic plan is focused on and caters to a specific group of individuals, HNIW and UHNIW. These specific individuals are used to being treated as VIP’s and this will be very evident in the plan.

This will become possible though traditional marketing, minimal social media and put the emphasis on event marketing. This is because the exclusivity of the club is important to all members and guests, in order to create this exclusivity these events will be available for members and guests only.

To assist the company in expanding into a Yacht Club business segment, this marketing plan aims to: 1.

2.

3.

4.

Establish a new and exclusive luxury brand experience for our consumer by developing a Yacht Club.

Increase Dom Pérignon sales in the French region.

Provide excellent service and the best amenities to increase the brand’s reputation of one that is of opulent luxury.

Make Dom Pérignon the most desirable Yacht Club for consumers

In order to achieve these goals, the deliverables of this marketing plan include an introduction to advertising campaigns, social media accounts, the Yacht Club website and promotional events.

Through these channels the Dom Pérignon Yacht Club will be able to engage with the brand and develop the desire to become a member at the newest most exclusive yacht club.

The expectations of this marketing plan are to increase the customer experience, engagement and sales by inducing a luxury leisure experience. In order to ensure that all proposed elements of this plan are accomplished these goals and that all channels are integrated, the following departments and business entities will be involved.

- Traditional Marketing - Private Social Media - Website - Event Marketing - Champagne Bar - Social Club Events - Spa and Gym Service - Multi-Channel Retail Store - Customer Service - Marina Services

Mission

To create the best yacht club experience ever.

Vision

To be the most desirable luxury yacht club in the world.

Dom Pérignon Yacht Club Overview

This marketing plan is centered around the introduction of the Dom Pérignon Yacht Club in Cannes, France. This will be a way to increase consumer’s relationship with the brand and increase sales in the French region. Having this luxury leisure experience will maintain the brand’s image as one of opulent luxury and celebratory. The focus of our efforts will be on print advertisement, digital marketing and event marketing. Cannes France will be the most idyllic location for our consumers and will provide them with a one of a kind social club experience, centered around the leisure of the yachting culture and the privacy and exclusivity of a members only club.

Our target consumer group values exceptional customer services, a vast array of amenities, a healthy lifestyle and privacy. I have been able to execute the Dom Pérignon Yacht Club to be the most desirable Yacht Club for discerning consumers.

In the Dom Pérignon Yacht Club we want the vintage champagne to be the star while remaining true to the LVMH brand by using their vast array of products throughout.

The Dom Pérignon Yacht Club will include the club and the marina along with an extensive list of amenities such as, an indoor/outdoor champagne bar, that strictly sells a variety of Dom Pérignon and even a bottle specifically designed for the yacht club. This champagne bar can be accessed from either inside the club or when approaching the club from the marina giving the consumers the beautiful views of the Mediterranean Sea. Our consumers also value good dining and service. Inside the club we will include a 5-star dining restaurant that will run 24 hours a day and include delivery to personal yachts as well as the dining room.

Additionally, because we will use events to our advantage there will be two meeting rooms, which can be used for weddings, conferences and personal parties or parties given by the yacht club. Events can also be held on the pool deck and at the bar should our customer wish to do so.

The club will also be home to our spa. This is one of our amenities that most yacht clubs are not known for having. We want our customers to feel as if they have everything they could need at their fingertips.

Our spa will come with an array of services from massages to facial and body treatments from board certified dermatologist and aesthetician. There will be a list of services that are open to any member and their guests. Spa staff will also come to the personal yacht if preferred by the client. The spa will use LVMH brand skincare and cosmetics and will also have some for purchase- should the guests forget theirs.

Next, there will be 24-hour access to the gym, pool, tennis courts and sauna for all members and guests. Because our clients are very aware of keeping their bodies healthy and maintaining their normal regimen even while vacationing it is important to us to have a fully equipped gym with everything one would need from weights to machines and mats. Each member will have access to locker room with towels and showers that are also stocked with LVMH cosmetics, bath and body care and all necessary toiletries. Each member will have access to a trainer so they can keep up with their regimen even while away.

The marina will be located by the dock space and will supply fuel, food and all maintenance needs for yachts. This will also be a 24-hour service that way each yacht can be helped and cared for no matter the circumstances. The marina will have an interior and exterior cleaning services available to all of those traveling by yacht. Any dock or boat supplies guests may need to purchase or use will be available, including any fresh provisions and supplies guests who are stopping for a short time may need to stock up their yachts.

The marina and club will also be able to handle all booking needs that take place outside of the club. This will include VIP concierge services and courier services, itinerary planning, tourism arrangements, on-board entertainment, helicopter pad, travel and transportation, hotel and restaurant reservations and banking transactions. Staff will also be able to handle many other logistics including yacht clearance and formalities, cruising, customs and immigration procedures and freight handling.

There are few Yacht Clubs that can accommodate the world’s mega yachts. This is because looking at the figure above, yes, there are fewer of them but if the yacht cannot fit in the berth this limits the consumer’s options when deciding on where to vacation. This is an important factor for the Dom Pérignon yacht club because we are going to be able to accommodate the worlds largest mega yachts.

The only other yacht club that is able to house the largest yacht in the world is the Monaco Yacht Club.

Weather this is a private vessel or a chartered vessel. As sales go up and the size of these vessels are increasing the dock space is a crucial component to the yacht club.

Membership Rarity of the exclusive memberships will be a major driving force behind our memberships. Being that only 300 members will be allowed memberships leaves little room for hesitation when becoming a member. This number was chosen because it is in alignment with the President’s prior success running the Monaco Yacht Club. This was also chosen because based off my findings the member number of clubs for the elite range from 200-500 members. There needed to be an element of scarcity and being at a solid 300 members this allows enough members to be able to keep the club running at full force even when it’s the off season and little enough to keep the driving force and waitlist full (Social Clubs).

Any individual wishing to become a member of the Dom Pérignon Yacht Club needs to be introduced by two “sponsors”, a proposer and a seconder, who must both be society members of the Dom Pérignon Yacht Club. All members for more than a year, with exception of board members, are authorized to propose a new applicant to the admissions’ committee.

The candidate needs to fill in an admission form, which is then signed by the applicant and the two sponsors, and must be accompanied by a letter of introduction from the proposer.

This letter of introduction will explain the applicant’s motives for joining the Club. Twice a year, H.S.H. Prince Albert II, President of the Dom Pérignon Yacht Club, will convenes a meeting for the admissions’ committee to examine the applications.

New members are officially welcomed at a cocktail party to which all existing members of the Dom Pérignon Yacht Club are invited and after which it is customary for the new entrant to celebrate his or her membership at a dinner in the club restaurant.

Membership Breakdown The Dom Pérignon Yacht Club is a luxury membership only club that will bring its new members in with a joining fee and then an annual fee that will be paid at the end of each year. Based off of my research on competitors in the luxury club sector, the majority of the most exclusive clubs have membership fees ranging from $50,000 to $300,000. Being that we are a luxury membership club that has a vast array of amenities we will be beginning our one-time joining fee at $150,000. This one-time joining fee is going to be the same for ever member of the club.

However, the annual fee for each member will vary. Based off research although these annual fees fluctuate we can guestimate that the annual fee will never be lower and $200,000. While conducting primary research, my findings indicated the majority of the annual fees fluctuate. This is due to the variation of prices in products, events and suppliers. The club will be able to have up to 300 members at a time, thus requiring a waitlist. This price will include all access to the club and marina when needed and additional costs will be from dining, drinks, and any services used while at the club or marina.

SWOT Analysis

The following is a SWOT analysis for the Dom Pérignon Yacht Club, an exclusive membership only club for the worlds elite. It analyzes the strengths, weaknesses, opportunities and threats for the club.

Strength: 1) Dom Pérignon has a strong brand image and presence.

2) LVMH Link to Yachting Community with Royal van Lent and Princess Yachts.

3) Dom Pérignon understands how to reach their luxury consumers.

4) Financial Backing from the LVMH conglomerate.

Weakness: 1) Lack of experience in this specific social club setting as it will be their first yacht club.

2) Tapping into saturated market Opportunities: 1) This experience does not currently exist in the luxury sector or for LVMH. 2) Bring in new consumers to the Yacht Club scene and give them a way to celebrate their wealth.

3) Increase sales for Dom Pérignon champagne in the French Region.

4) Recession proof consumers Threat: 1) Yacht Clubs with Heritage and Loyal Following who will choose to stay with their yacht club.

2) Other French Riviera Yacht Club Locations offer different amenities so may find more desirable.

3) Sporting based clubs

PRODUCT:

The Yacht Club and Marina:

-Dining Room

-Meeting Room

-Champagne Bar -Sauna -Spa -Gym

-Locker Room -Fuel -Maintenance

-Cleaning Interior and Exterior

-Dock/Boat Supplies

-Fresh Provisions/Supplies

-Yacht Clearance/Formalities

-VIP Concierge Services

-Courier Services

-Itinerary Planning

-Tourism Arrangements

-On-Board Entertainment

-Travel and Transportation

-Hotel and Restaurant Reservations

-Banking Transactions

-Cruising, Customs & Immigration Procedures

-Freight Handling

-Multi Channel LVMH Retail Store

-Complementary car service

-Helicopter Pad

-Tennis Courts

PLACE Cannes France was chosen as the location for the Dom PĂŠrignon Yacht Club for several reasons, including its association with the rich and famous being one that continues to flourish. Additionally, it aligns with our target consumers when looking at what the area offers such as: The Cannes Film Festival which has been happening since 1946 and is an invitation-only festival that is held annually in May of each year. Because of this, Cannes is an area that is no stranger to mass media exposure and high amounts of revenue for the city. Cannes also has been well associated with yachts for some years, as it is home to the Cannes Yacht Show, which takes place on the Harbor every year.

When analyzing the competitors and where we will be positioned amongst them, the Dom PĂŠrignon Yacht Club will be something the French Rivera has never seen. It is a yacht club of luxury and decadence, not geared towards the soul sport of yachting; but rather, the lifestyle. One will be able to relax and enjoy the yacht club environment but in a much more luxurious manor.

My research concluded that our target consumers are most likely to travel to the Mediterranean when traveling by or traveling to a yacht. This is because of its warm climate, beautiful scenery and the lush elegance of all its offering.

Cannes is an idyllic and positive location for our consumers to visit and vacation via yacht, plane or helicopter for a private and exclusive getaway.

POSITIONING

Promotion Plan

Event Marketing The emphasis of this marketing plan will be on the Dom Pérignon Yacht Club event marketing strategy.

With this we are going to:

-Reach our target luxury consumers and invite them to see the new club -Create buzz throughout pre-launch event -Have all 300 members signed up and committed to coming for the launch of the club -Use LVMH to increase exposure and excitement.

Through event marketing we will be able to directly reach our desired consumers and those who have a loyal following of Dom Pérignon. We will be able to do this with the help of LVMH and their respective client lists, with the help of their existing public relations team.

In order to create buzz on our new yacht club it is important to make sure we don’t neglect our existing loyal Dom Pérignon consumers. Handwritten invitation will be sent out to a list of loyal LVMH clients and those who we see as potential investors in our new yacht club.

Our High Net Worth and Ultra High Net Work Consumers enjoy going to events based off of my primary research. They state that they enjoy eating, drinking and socializing with others for the ultimate luxury experience. Wealth-X Luxury Sentiment Survey Report also that’s that in-person interaction with UHNWI is the most dominant strategy for attracting and keeping these clients.

Pre-Launch Event

Our first avenue of events will be though our pre launch event. This event will take place at an estate in the Hamptons. The estate will be rented for this black tie event to take place on New Years Eve. This black tie event was chosen to be on New Years Eve because it is a time to celebrate the new year and the new comings of Dom Pérignon. This luxury soiree will be able to accommodate 400 guests including staff.

There will be an emphasis on the Dom Pérignon champagne. Hors d’oeurves and will be passed around and will represent the cuisine that the club will offer for its members. The mood and them being New Years Eve related will align with the meaning and celebration just as champagne does. Around the party there will be mock-ups of the layout and sketches of the multi-channel clothing and accessories to come. The intent of this pre-launch event will be to give all these potential members a taste of what’s to come and have the opportunity to be the first founding members. These events will take place just a few short months leading up until May and will end in an exciting display of fireworks.

Each guest will leave with a gift bag. Enclosed in this gift bag will be direction on membership, list of amenities the club will offer, continual calendar of events and a follow up invitation the launch event in Cannes.

New Years Eve in the Hamptons “Celebrate a New Year and a New Yacht Club”

Launch Event

The launch of the Dom Pérignon Yacht Club will take place during the Cannes Film Festival in May. This launch plan was strategically chosen based off of the Cannes Film Festival. This festival brings in some of the worlds richest and most elegant consumers, which places us directly into our ultimate target consumer.

During the festival we will be a major sponsor and also launch the club at the beginning of the festival.

By giving our sponsorship to the Cannes Film Festival we will be able to use our new brand to enhance awareness and position ourselves were with choose to represent out like minded events.

Those who were not able to attend the pre-launch will be given another chance to attend the launch event, also any other discerning consumers who have shown interest in a membership, will be able to request an invitation to the launch event. During the launch event the club will be hosting a pre Cannes Film Festival Gala. During this Gala the guests will be able to explore and have the first look at the yacht club in its entirety. These guests will also be the first to have a glass of champagne at the focal point of our yacht club, the Dom Pérignon Champagne Bar. With the launch centered around the bar guests will be able to experience the tone and mood of our yacht club. A luxury celebration of this caliber will give our guests the royal treatment that they deserve and have become accustomed to.

During this event, an exclusive showing of the LVMH multi channel retail collection that is only available in the yacht club’s retail store. Along with the unveiling of the new exclusive Dom Pérignon Champagne Bottle that will be available for purchase for this one night. Throughout the club there will be a calendar of events for the upcoming months that will be happening at the yacht club giving our potential members something to look forward to in the future. This display of private attention that has been tailored to our consumer is the most important step in either creating or further establishing our relationship with them.

Post-Launch Event

The post launch event will include a membership form sent in the mail along with a hand written thank you note for attending the launch event and exclusive Dom PĂŠrignon Yacht Club Bottle. This will inform the consumers to request a membership and how they would go about joining. If we do not get all 300 members signed up after the launch event strategy adjustments based on objections and feedback, optimize the sales funnel for increased conversion, grow affiliate promotions and offer reciprocation as needed, we will also strategize a re-launch event for now new members.

Implementation: To implement these launch events, we will have Dom PĂŠrignon and LVMH create a list of guests who they see as having positive alignment with our values and brand. Creation of the invitation and list will be handled by the Dom PĂŠrignon events team. Pre launch invites will be sent out six months in advance of the launch and 3 months in advance of the pre launch party. During the pre launch party we will hand out invitations to the launch event and also send out any other existing invitations. Two weeks after the launch party thank you notes will need to be sent out to all of our guests.

Summary of Benefits: -Sign up for membership -Exposure to the club -Awareness during one of Cannes most profitable weeks -Exclusivity of invitation only

Future Events

Future Event Marketing

The Dom PĂŠrignon Yacht Club will continue with its marketing efforts long after the initial launch plans. This is an important strategy when maintaining happy members and alluring in new members. In order to continue with our marketing efforts, post launch, these events will be held for members only and the guests they chose to accompany them. These events will take place at the club throughout the year and will each cater to different themes and happenings that time of the year.

The first event after our launch will be to celebrate our new founding members. This event will highlight our first wave of members by having a party in their honor. Each one of the members will receive a bottle of our club exclusive Dom PĂŠrignon as a token of appreciation. These initiation events will take place at the end of every season should we keep acquiring new members before we are full. By having these events for members shows our loyalty to giving them the best yacht club experience they have ever received.

Following the initiation event, the Dom PĂŠrignon Yacht Club will hold an exclusive viewing party for the unveiling of a new superyacht. Because LVMH is the owner of Royal van Lent Yacht Yard we will be able to give our members the true VIP treatment though allowing them to be the first to see and to purchase this yacht.

Website

The Dom Pérignon Yacht Club Website LVMH has a main website that is home to all of their brands and describes each brand and how they originated. Each of their sectors of LVMH’s portfolio has its own website designated to each brand, this will be the same for the Dom Pérignon Yacht Club.

The website will have a luxurious look and feel inviting our members and potential members in. The simple homepage aesthetic will be aligned with how Dom Pérignon currently presents themselves online. This will enhance brand awareness and recognition for its current consumers. It will include interactive elements that will entice consumers to have it be their go to for all questions and concerns.

The Dom Pérignon Yacht Club website will be the main source of any information the member or soon to be member would need. However, the way these members use this information will differ. Members will have access to the website in its entirety, on the contrary non-members will not. Non-member will only have access to the home page, about page, membership page and contact information. This decision was made based off of the privacy and exclusivity of the club and we want that to be a transparent purpose though all marketing efforts.

The website for the member will be much more extensive than previously discussed. Among those discussed the member will have a login which will give them access to the extensive version of the website.

This member login will link them to any online financials so these members can see what they have spent and if they need to make any additional payments.

They will also be able to book any service that the club or marina offers. This is a convenient option for our members: for example, booking a car service and having all requests ready when they arrive will make their travel plans seamless. Should they need assistance in any fashion, there will be a live chat feature that will contact the 24-hour service desk for assistance.

Though the website members will also have access to our multi-channel retail store. They will be able to purchase these products though the website and have them waiting for them when they arrive or sent to their respective homes. Events and calendars will also be posted online, along with the option to RSVP, view the guest list and all dress code requirements.

The website will need to be available in all languages given that all different cultures would need to be able to have access to it and will be optimized for mobile viewing so that the desktop experience can be cohesive for visitors viewing on their mobile devices.

Implementation:

The website will be implemented after the social media accounts have all been established.

This is a way to create the need and element of surprise for the website to come. It will be a fully functional website a month after the launch of our social media platforms and will be run by the web team at Dom PĂŠrignon.

Summary of Benefits:

The benefit of having a comprehensive website for our consumers gives them a main hub of what the Dom PĂŠrignon Yacht Club has to offer and how it is constructed.

-Increase visibility for all consumers -Further integrate the online and in-club experience -Make the online purchasing option a way to continue to generate revenue -Allow members to access all information on their membership, events and financials

Advertisment

Dom PĂŠrignon Advertising : When researching our Ultra High Net Worth Individuals, a majority of them said that they valued traditional marketing techniques, such as, newspapers, magazines and world of mouth. In order to fulfill this consumption preference for our target consumers we need to create advertisements for these print mediums (Forbes).

The choice of magazines and publications to use our advertisements in is vital. Because most of the consumption happens during leisure time for our consumers the placement and location of these publications is also very important (Forbes). The magazines that are most carried in luxury travel lounges and luxury hotels include: Elite Traveler, Forbes, Con de Nast Traveler and Luxury Travel. These are locations where our consumers spend time while traveling. When researching and conducting yacht club visits, the magazines that are geared towards our discerning yachting consumer included: SuperYacht World, Yachting Magazine and Yachts International. These same advertisements will be used in a digital from as well. This is to create consistency for online versions of the magazines, press releases and specific websites such as Luxury Daily. To develop a relationship with this new yacht club it is important for us to be able to have consistent recognition when seeing advertisements.

To gain attention quickly, the yacht club will create a cover page and inside spread about the new and upcoming opening of the Dom PĂŠrignon Yacht Club. The full-page print advertisements for these publication will be on circulation following the opening of the club. Along with a new a full-page advertisement on the Luxury Daily website

Implementation: To create and develop the print advertisements the Yacht Club will need to submit their advertisements for either a full-page advertisements or cover page to the desired publications. This will be able to be done 6 months in advance to have the cover ads released 3 months before the opening. This is to promote the club and reach those who we did not connect with and can be sure to ask and crate buzz on the new club The full-page advertisements will be released simultaneously amongst all publications.

Summary of Benefits: By creating and running print advertisements for the Dom PĂŠrignon Yacht Club it will help achieve the objectives of the marketing plan by:

- Appealing to yachting consumers - Marketing to luxury consumers - Appealing to consumers who enjoy traveling - Improve the club’s competitive advantage by advertising its rarity and exclusivity

Social Media

The Dom PĂŠrignon brand is currently active on all social media sites accept Twitter and are able to be accessed by everyone. They have a loyal following of consumer and those who aspire to be a part of the brand. These platforms are filled with relevant and exciting information about any new happenings for the brand. On Facebook the brand has over 400,000 likes and shows their newest marketing campaign.

Their Instagram platform has over 300,000 followers and in the profile it encourages them to view the website.

Our target consumers are very aware of how digital the world is. 84% of UHNWI feel that digital marketing is particularly useful in brand awareness but 25% say they actually use online marketing tool (Wealth-X). Being up to date and active on these platforms caters to the development of relationships but we wish not to deter or provide a negative image though our social media accounts. We do not want to deter from the current relationship consumers those have with Dom PĂŠrignon, as it is associated with a positive relationship; however, we want to stay active digitally in order to successfully support our new implementation.

Social media creates a space where consumers can actively engage with the Dom PĂŠrignon Yacht Club.

This is because it has constant updated content and creates a voice for the brand. We will be keeping all of our accounts private for this reason. We wish not to display our members and guests without their permission because we value their privacy. Those members will have access to updates though their social media accounts reminders of events and happenings going on at the club. It detaches them from their current world and in to the world of the brands. This information was a key finding in the development of both the digital channels and content that will be used in this strategy.

Dom Pérignon Yacht Club Social Media Accounts:

The Dom Pérignon social media presence serves as a means to:

-Represent the club on a global level for all our members.

-Provide unique, behind the scenes content of all happenings.

-Serve as a platform for personal interactions with members.

-Create a private experience for their members -Direct members to website

On Facebook the brand has over 400K people that have liked their page and regularly keep it up to date with their new campaigns. They post at a modern rate and get a number of responses. It will be beneficial to not only create our own Facebook page for the Dom Pérignon Yacht Club, but also use the current Dom Pérignon Facebook page to create buzz and attraction that they have something big coming to the brand and that it is probably not what they expect. To draw attention, we will use their existing page and then reinforce the attention on the new yacht club page. We will keep the pages up to date on all deadlines and happenings so our followers have a projected timeline of when to expect the yacht club to open.

Once the yacht club is open we will use Facebook posts to engage with our members by allowing it to be a private page you need to request to become a member of and be accepted by the board. With this we will be able to keep members informed about and exciting events in the club. We can utilize Facebook to our advantage by using Facebook Live to post how the weather is and what is happening around the club that day.

It can also be a space where members can access photos and videos from events from staff photographers brought to the events and so everyone can see and keep these photos for memory.

Instagram can be curated to have a different feel than Facebook. This account will be more for our members to post about them being at the Dom PĂŠrignon Yacht Club should they wish to do so. This account should include specific snapshots of what the club is currently working on as well as more frequent product and lifestyle content. For example, the club can and post more celebrities and wealthy individuals who are there at the club or arrived by yacht that week. It should post more on the club members and the yachts they arrive on. This will help differentiae a feel that is unique to Instagram while still remaining a private platform for those who are nonmembers.

Twitter Dom PĂŠrignon is not currently on Twitter. This is something that I see as a great advantage for the yacht club. It is a quick and direct platform to get information out in seconds with alerts. This platform will be successful because we can get short bits of info to our private list of followers about an opening in dock space or any new that regarding events happening. We have the chance to build another band of loyal followers though this medium so they never miss an alert. This will introduce the new use of social media on the more current platforms and thus drive traffic to our new Twitter page.

These mentioned social media accounts will differ from the current social media accounts of Dom Pérignon by making all of them private. Not everyone will be able to access but they will be able to mention that they are engaging with the yacht club though their own accounts. This will keep everything private and leaving it up to our members to expose themselves.

Implementation:

Implementation of all social media accounts will be executed by Dom Pérignon’s current social media and marketing departments. It should be conducted immediately to build up the awareness of the brands new segment and begin the customer engagement.

Summary of Benefits:

-Provide a unique experience for consumers -Encourage consumers to interact with the Dom Pérignon Yacht Club -Increase brand awareness -Get out information quickly

Operational Plan:

The operational plan will outline the schedule for the introduction of all of the aforementioned components of this strategic plan. It will also include the key performance indicators that will be used to gauge the success of this strategy and an overview of the integration of all channels.

Strategy Timeline:

This marketing plan will be introduced in phases. The first phase will consist of the most pertinent elements of the strategy, our events and the planning of advertisements. Before anyone else gets wind of our new yacht club we want to contact our list of potential members who have been brand loyal to Dom PĂŠrignon and LVMH and willing to invest in our club. These consumers will be the first to hear and be invited to learn more about our club and what they can expect from it.

After our pre-launch event we will move into the second phase of introduction, the scheduling and planning of our launch event. During this scheduling and planning period we will create and establish our website and social media presence. This integral part will allow those who have learned about the club visit and contact our membership services for details on the club and how to become a member.

At this time, our scheduling will allow us to release our agreed upon advertisements for their release both in print and digital form. This will give us time to reach our discerning consumers and allow for more to contact us. While we have this laps in time we will be able to print and send our invitations out.

Our third phase will include the actual launch event and the preparation of our post launch. We will evaluate our success during the launch event and make any necessary changes in order to meet any unmet milestones. We will also send out all handwritten thank you notes and prepare for any upcoming events.

The final phase will be ongoing. It will be to alert new members on preparing for further events to come.

Key Performance Indicators:

In order to determine the success of this strategic plan, the following key performance indicators (KPIs) have been identified:

-Number of RSVP to launch events -Customer excitement about the launch when applying for membership -Number of inquiries of membership -Number of potential members on the waitlist -Sales rate of the LVMH products -Number of visitors to the Dom PĂŠrignon Yacht Club website -Number of visitors and followers on social media accounts -Length of time spent on website and social media accounts

These KPIs will be assessed at regular weekly and monthly interval to determine if any adjustments to the strategy need to be made in order to increase its success.

Strategy Integration:

In achieving the goals of this strategic marketing plan the Dom Pérignon Yacht Club consumer should be able to access the brand however they want to, whenever they want and wherever they want. In order to ensure that this strategy can achieve this goal we need to be able to provide for our luxury consumers with an experience that best suits them, all components of this strategy must be integrated with the Dom Pérignon brand.

The proposed strategy not only enhances the customers’ experience with the brand, but also provides more channels for them to gain valuable data on their consumers. Enhancing the existing brand’s presence will enable Dom Pérignon to become more engaged with their clients and give them a new way to experience and engage with the brand.

The expectation of this strategic marketing plan is to increase Dom Pérignon sales in the French region and improve the overall brand experience of Dom Pérignon. Become the most desirable yachting and social club for discerning consumers. Have Cannes France be the most idyllic location for travel. We will be able to achieve this by establishing the highest level of customer service, exclusive membership and amenities, access to customer LVMH products and the ability to have Dom Pérignon at your fingertips.

Following the initial introduction of this marketing plan’s initiatives, all strategy elements will still need to be monitored being that this is a new introduction. The advertising, social media and website should be handled by Dom Pérignon’s current respective creators. This will make sure that the will be a similar aesthetic and consistency of the brand image.

Pre launch, launch and post launch events will be handed by Dom Pérignon’s current event producers and the producer and new staff of the yacht club. The in club events, spa, retail and marina services will be handled by the well-trained and dedicated staff.

The list of the above products and amenities are completely unique to the Dom Pérignon Yacht Club and were thoughtfully curated for an exceptional yacht club experience. Our consumers value exceptional customer service, amenities that go above and beyond and a great dinging and bar area.

These selected “products” that will be offered are unique to this club because most yachting and social clubs do not have a fraction of these products. They have been chosen in order to increase our competitive advantage amongst competitors and so that they consumer can build a better and more established relationship with the Dom Pérignon brand. We want to the club an example of everything Dom Pérignon stands for: luxury, decadence, elegance and creativity. Dom Pérignon stated that his goal was, “to create the best wine in the world” and we wish to create the best yacht club in the world.

Budget

Strategy Budget Below is the projected first year budget and strategy budget for the Dom PĂŠrignon Yacht Club. The Dom PĂŠrignon Yacht Club plans to have most of our revenue coming from the new joining fee on top of the annual fee which will include all dock fees and our restaurant and bar sales. The additional sales will be coming from our spa and retail shop. The strategy budget has been broken down to spending the most on events and advertising. Out of this total revenue our marketing strategy will consume 7% of this overall revenue from year one.

Conclusion

Based on a through analysis of various factors, this strategy has been developed to create an established yacht club for Dom Pérignon.

To ensure that this marketing plan is successful and representative of the existing brand presence of Dom Pérignon it was critical to examine the company’s history and current position in the luxury sector on a global scale. This helped develop the marketing plan by assessing the gaps and opportunities for Dom Pérignon. This was conducted using a combination of primary and secondary research to guarantee the most accurate information was gathered.

Using this information, the strategy was developed to include the introduction of the Dom Pérignon Yacht Club, a new way to experience the brand in a luxury and exclusive setting in Cannes, France. The club is centered around the Dom Pérignon champagne bar overlooking the Mediterranean Sea. Our consumers value this exclusivity and privacy of the yacht club’s intentions and the amenities offered.

This yachting and social club experience will have the members looking forward to events, traveling and returning to the Dom Pérignon Yacht Club, time and time again.

Based on my recommendations of incorporating event marketing, advertising, website and social media, the expectations of this marketing plan will assist the company into increasing revenue of Dom PÊrignon sales in the French region, increasing the customer base, improving brand awareness and engagement. This will also assist the bran in making $90 billion worth of first year’s revenue.

In addition to all of the above enhancements, the plan will also give luxury consumers an outlet when engaging with the brand and improve the consumer relationship with Dom PĂŠrignon and the LVMH conglomerate as a whole. Our targeted consumers will be able to have everything they desire from a yacht club with the strategy focused on the ultimate luxury experience.

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Appendix

Personal Interviews: Melissa & Sam Peters: 1.What type of lifestyle do you associate with Dom Pérignon? More of a refined, relaxed social lifestyle.

2.What type of social events do you attend and which do you enjoy the most? Cocktail parties/ Super Clubs/ Club Socials/ Cookouts/Bible Studies/Wedding Parties/Sport Fishing Tournaments I enjoy going to more socials which are more relaxed than a seated scheduled event.

3.What are your top 3 leisure activities do you enjoy and why?

Boating/Paddle Boarding – because it gets me outside and on the water Skiing –because I enjoy the beauty of the mountains terrain and the feeling of wellbeing & accomplishment Walking – again getting to be outside and explore and see the beauty around me whether visiting a new place or enjoying the natural sites of my own neighborhood.

4.Your ideal yacht destination would be where and why? I’m not to picky –I really like the Caribbean because of it beautiful water. However, I like Cannes or Monte Carlo as well because I do love the European feel of prestige and beauty. Plus, the food and wine aren’t so bad either.

5.What expectations and amenities would you expect from a yacht club? Service number 1! Fantastic Champagne or Rose. The food and ambience. A very plush décor. Both a Formal setting for nice evening dinners and a designated area for the more relaxed lifestyle. Whether walking in for a casual dinner or docking from a long day on the water.

6.Were you personally a member of the yacht clubs you visited or were you a guest of a member? Both 7.What would your ideal yacht club be? One that is a combination of both relaxed and exciting. I want to be able to have a variety of things at my finger tips. it to be a fun and inviting place.

Landon Clements:

8)What type of lifestyle do you associate with Dom Pérignon? Celebration! Time to pop some bubbly. There’s always a reason to celebrate.

9)What type of social events do you attend and which do you enjoy the most? I am typically buy with my TV Show Southern Charm so I have to attend a lot of Society/Social events in Charleston. My favorite type of social events are definitely during fashion week!

10)What are your top 3 leisure activities do you enjoy and why? I enjoy going to polo matches, the beach/boating and traveling to Europe.

11)Your ideal yacht destination would be where and why? I don’t know if I have an ideal destination but would love to travel to the French and Italian Riviera’s, they are the most beautiful places!

12)What expectations and amenities would you expect from a yacht club? A great Spa! That’s one thing I really enjoy, they can come out to the yacht or I can have a little get away in the club. Also, dining and a fun social atmosphere. I want it to be a fun and inviting place.

13)Were you personally a member of the yacht clubs you visited or were you a guest of a member? Both 14)What would your ideal yacht club be? It would be one that was a membership only club, because when open to the public you get a lot of what you’re usually trying to avoid while on vacation. One in a beautiful location, with great amenities and food!

Jonathan Taft:

1)What type of lifestyle do you associate with Dom Pérignon? The best of the best in anything 2)What type of social events do you attend and which do you enjoy the most? I attend everything from private club meeting to very high end fishing tournaments and weddings 3)What are your top 3 leisure activities do you enjoy and why? Fishing, Golfing and Boating 4)Your ideal yacht destination would be where and why? Somewhere in the Mediterranean because of the beautiful surroundings, food and culture.

5)What expectations and amenities would you expect from a yacht club? I would expect clean and very well designed facilities. Also, good membership backed up by excellent quality of food. Membership is very key.

6)Were you personally a member of the yacht clubs you visited or were you a guest of a member? I have been both a member and a guest of members and multiple different clubs worldwide. Enjoy the feeling of being a part of the “club” atmosphere.

7)What would your ideal yacht club be? My club would have a very high end clientele who loved to enjoy being happy and bonding together. Food would be paramount! Enjoying time with other members though lots of events.

Teeny & Trey Morrison:

1)What type of lifestyle do you associate with Dom Pérignon? Well it what we popped the day I started my own hedge fund and my dad became a majority owner of The Carolina Panthers. So that is the type of lifestyle I associate it with success and celebration!

2)What type of social events do you attend and which do you enjoy the most? I enjoy sporting events, parties with friends and family and I like supporting social openings weather it is restaurants or bars, anything of the sort.

3)What are your top 3 leisure activities do you enjoy and why? I enjoy boating, hanging out on the beach and reading.

4)Your ideal yacht destination would be where and why? I like anywhere in the Caribbean or the Mediterranean! I love some crystal blue water, anywhere I can fish, or eat good food. We got married in the BVI’s so its safe to say I am a beach goer!

5)What expectations and amenities would you expect from a yacht club? I expect to have everything imaginable, when we travel exceptional customer service is one thing you can’t compromise. I don’t have to have to leave if I don’t have to. I think it is extremely professional when the club/marina can have your chartered yacht stocked with food, booze and any other toiletries you may need. Also, when escaping to the club I like to have great food! We love a good dinner and good drinks. Part of the whole vacationing is being able to cheat on your usual diets a little.

6)Were you personally a member of the yacht clubs you visited or were you a guest of a member? I was both a member of a yacht club and a guest. I feel at home more when I am a member of a yacht club because it is important to understand the rules and the type of environment each club has.

7)What would your ideal yacht club be? My ideal yacht club would be one that has very professional staff and nothing is too big or too small to ask for. One in a beautiful location that has lots of happenings around it.

Rick Henrick:

1)What type of lifestyle do you associate with Dom Pérignon? Luxurious and celebratory, vacationing and of course LVMH.

2)What type of social events do you attend and which do you enjoy the most? I like to attend NASCAR and Indy car races.

3)What are your top 3 leisure activities do you enjoy and why? I enjoy boating, traveling and being at home with my family.

4)Your ideal yacht destination would be where and why? Anywhere warm! Europe, Caribbean mostly would be where I could like to go. I usually go to the Caribbean via my own yacht but charter yachts when I am in Europe.

5)What expectations and amenities would you expect from a yacht club? I expect superior service, all yachting maintenance taken care of, I would like a close plane or helicopter landing station, I also expect there to be a Spa and Meeting/event rooms in case I do need to conduct business. Also, something you wouldn’t normally think of- an on call English speaking doctor (you never know how handy they come in, especially when traveling with family).

6)Were you personally a member of the yacht clubs you visited or were you a guest of a member? I am usually a member of every club I attend.

7)What would your ideal yacht club be? One with all the amenities listed above, and a great outdoor space with pool and bar.

Membership The sponsor’s role when introducing a new member is key. It is their responsibility to help newcomers to integrate into the life of the Yacht Club, not only to accompany and introduce them to other members, but also to involve them in events organized by the Club, be they social or sporting activities.

The sponsor should also be committed to ensuring that the person they propose is encouraged to adopt the philosophy and values of the DPYC, by actively participating in the life of the Club in order to keep raising the standards at the DPYC even higher.

PEST Analysis Political In 1789, France got rid of monarchy and became a republic, when in historical events known as French Revolution.

Considering the political part many factors have to be taken into account.

France is a developed country; the political environment there is stable in the sense that there is no political trouble, no war, no political crisis, and no conflict; this is a good factor which can attract investors and new business entry.

In another way setting up a business in France required a lot of capital from the investors. The French government is semi-presidential system determined by the French Constitution, the nation declares itself to be an indivisible, secular, democratic, and social Republic. National government is divided into a legislative and judicial branch. The President shares executive power with the Prime Minister.

In certain territories in France such as Mayotte, Saint Pierre and Miquelon, Wallis and Futuna, Monaco, the government has fixed an investment limit of $2 million for foreign enterprises. In fact, the government has elucidated a precise list of tax or mandatory contributions which have to be paid by business people in France. The government of France has no and any control on religions or culture, there is no policy stated by the government to restrict any new entry of any business which is not matching with the believes of the French population (France).

Economic/Environmental France’s economy is the fifth largest in the world and represents around one fifth of the Euro area gross domestic product (GDP). Currently, services are the main contributor to the country’s economy, with over 70% of GDP stemming from this sector. In manufacturing, France is one of the global leaders in the automotive, aerospace and railway sectors as well as in cosmetics and luxury goods (France Economic Outlook).

Additionally, France is the most visited country in the world, making tourism a prominent sector in the economy. In the external sector, France’s closest trading partner is Germany, which accounts for more than 17% of France’s exports and 19% of total imports. France’s primary exports are machinery and transportation equipment, aerospace equipment and plastics, while primary imports include machinery, automobiles and crude oil.

Compared to its peers, the French economy endured the economic crisis relatively well. Protected, in part, by low reliance on external trade and stable private consumption rates, France’s GDP only contracted in 2009. However, recovery has been rather slow and high unemployment rates, especially among youth, remain a growing concern for

for policymakers. After the start of the crisis the economy stagnated and the country has had to face several economic challenges. Government tax revenue has dwindled and consumer purchasing power has declined. Policy makers have attempted to modernize the economy; however, this has been a difficult process. The former Sarkozy government became deeply unpopular, partially due to its reform agenda. Nonetheless, with a government budget deficit that is higher than the Euro-area average and low growth forecasts, the current Hollande government faces the challenge of restoring France’s public finances while encouraging economic growth (France Economic Outlook).

Social France is a highly developed country there are 75% of the people living in the cities. There are two languages spoken by people one as French and another is Catalan. The French people of very proud of their language which is famous worldwide and also shown in their identity. There are different religions, Roman Catholic, Jewish and Muslim. In France Islam is the 2nd largest religion. The French people share a great passion of food. France is very famous for cuisine, wines and cheese (France).

Furthermore, France has shown to be an optimal place when it come to the social compatibility of a yachting and social club. Our consumers have expressed the importance of cuisine and spirits and these are two of Frances most valued customary social experiences.

Technological France has an excellent scientific and technological environment. As being the worlds 4th industrial power, one of the world leader in space technology, in nuclear energy, in computer engineering, in environmental protection. The literacy rate of France has 99% of total population. All the credit France owes to its quality education system which includes 230 engineering colleges and 87 universities which are well known for their research.

Technological and industrial growth funded by the government helps in increasing the standard of living of people.

France spends about 2.2% of its GDP for the development of its technology and industrial growth on R&D. Number of patent application in a country indicates how a process or product offers anew technical solution to a problem.

There are about 14743 new patents in 2015. The number of technical journals articles published in France is about 30,309 in the year 2015.The amount France gets by exporting its R & D such as in computers, scientific instruments; aerospace and electrical machinery is about $93,209,237,841(2009). There is research credit tax, it’s a corporate tax relief which government forgoes the expenditure of the firm on its R & D operations.

Amongst all inventions, France’s best advancement has been the introduction of the TGV High Speed Rail Network. It is one of the leading exporters of Nuclear Technologies which is also world’s 4th industrial power. France has developed the first plant for the disposal of radioactive wastes. And France is the third largest wind resource in all of Europe

(France).

Based off of the above content the French market shows to be a positive choice when conducting business. The have a high rate of growth and because of the ability to take care of the unemployment rate for young and older workers will be able to help show positive light at the Dom Pérignon Yacht Club.

Consumer Research Family status: 91% are married • 4% are divorced • 3% are single • 2% are widowed The average UHNW individual has 2.2 children and 1.9 grandchildren.

Wealth Source Sources of wealth vary by gender: • 68% of men made their own wealth • 19% of men have partially inherited and self-made wealth • 13% of men inherited their wealth • 48% of women inherited their wealth • 34% of women made their own wealth • 18% of women have partially inherited and self-made wealth Among inheritors, men tend to inherit wealth as male heirs. Women tend to inherit wealth as widows.

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