For the exclusive use of D. Jensen
W13503
Teaching Note
LE CERF DE TREMBLANT
SYNOPSIS
Wendy Lange-Faria purchased a condo in Mont Tremblant, Quebec in 2006 for personal use and to rent
out. A beautiful, five-bedroom unit with a panoramic view over the La Bête golf course, it was close to
the ski area, the village of Tremblant, shopping, spas, restaurants and a casino. The condo was fully
furnished with many upgrades. By 2010, Lange-Faria was disappointed in the number of rentals. She
needed to assess the situation and determine what could be done to generate more bookings and make the
venture profitable.
TEACHING OBJECTIVES
The main teaching objectives for this case are:
To illustrate that marketing problems are just as important, and essentially the same, for small
businesses as larger organizations.
To give students an insight into the hospitality industry.
To allow students to determine key marketing issues that need to be addressed.
To show how all marketing variables need to be integrated to produce a successful strategy.
To provide an opportunity for students to do some financial analysis of a marketing issue.
TEACHING STRATEGY
This case has been used in an MBA program focused on hospitality and tourism. It can be used for a
wider audience because the situation is easy to grasp and non-technical in nature. Starting the discussion
by sizing up the situation and determining the key issues that need to be resolved is a good approach. This
flows right into a discussion of an integrated marketing plan and then projecting financial results.
This is a good case to use early in a course to illustrate a complete marketing strategy and some fairly
simple financial analysis. It could also be used as a summary case in an introductory marketing course or
as an exam case.
617.783.7860.
, For the exclusive use of D. Jensen
Page 2 8B13A037
QUESTIONS FOR DISCUSSION
1. How well is Le Cerf performing at the present time? What do you see as the main issues that need to
be addressed?
2. Do a SWOT (strength, weakness, opportunity, threat) analysis for Le Cerf.
3. Develop an integrated marketing plan for Le Cerf for 2010 that will facilitate the creation,
communication and delivery of value for targeted customers.
4. Project the results of your plan in terms of revenue and profitability.
CASE ANALYSIS
1. How well is Le Cerf performing at the present time? What do you see as the main issues that
need to be addressed?
A casual reading of the case indicates that Le Cerf is well under breakeven. Breakeven can be calculated
in the following manner. Total fixed costs are $26,400. The average price is $459 per night. The variable
operating costs come to $85. And the commission is $28, which is a 20 per cent commission on 30 per
cent of the nights. So, the contribution margin is $346. When this is divided into the fixed costs, the
resulting number is 76 nights.
Breakeven is so simple to calculate, yet so powerful. Before calculating this number, making Le Cerf
profitable seems hopeless, but seeing that it needs to be rented for only 76 nights makes the goal look
more attainable.
There are many issues facing Lange-Faria as she prepares to develop an integrated marketing plan. Here
are the main things she needs to concentrate on:
What segments are in the market?
Who should be targeted?
Are there ways to differentiate Le Cerf from the competition?
What about a name change more in line with the positioning of the condo?
How should the condo be priced?
Should EasyRez continue to be used? What about Residences Mont Tremblant Condotel? What other
methods of distribution should be considered?
How should the condo be promoted?
2. Do a SWOT (strength, weakness, opportunity, threat) analysis for Le Cerf.
SWOT can be a useful tool if done properly and used effectively in strategy formulation. Exhibit TN-1 is
an example of a SWOT analysis from a student report on the case.
3. Develop an integrated marketing plan for Le Cerf for 2010 that will facilitate the creation,
communication and delivery of value for targeted customers
The heart of the case is to help Lange-Faria create, deliver and communicate value. The first step is value
creation, which consists of three issues: segmentation, targeting and positioning. Taken together these
form the foundation of strategy. This is followed by value delivery and then value communications.
617.783.7860.
W13503
Teaching Note
LE CERF DE TREMBLANT
SYNOPSIS
Wendy Lange-Faria purchased a condo in Mont Tremblant, Quebec in 2006 for personal use and to rent
out. A beautiful, five-bedroom unit with a panoramic view over the La Bête golf course, it was close to
the ski area, the village of Tremblant, shopping, spas, restaurants and a casino. The condo was fully
furnished with many upgrades. By 2010, Lange-Faria was disappointed in the number of rentals. She
needed to assess the situation and determine what could be done to generate more bookings and make the
venture profitable.
TEACHING OBJECTIVES
The main teaching objectives for this case are:
To illustrate that marketing problems are just as important, and essentially the same, for small
businesses as larger organizations.
To give students an insight into the hospitality industry.
To allow students to determine key marketing issues that need to be addressed.
To show how all marketing variables need to be integrated to produce a successful strategy.
To provide an opportunity for students to do some financial analysis of a marketing issue.
TEACHING STRATEGY
This case has been used in an MBA program focused on hospitality and tourism. It can be used for a
wider audience because the situation is easy to grasp and non-technical in nature. Starting the discussion
by sizing up the situation and determining the key issues that need to be resolved is a good approach. This
flows right into a discussion of an integrated marketing plan and then projecting financial results.
This is a good case to use early in a course to illustrate a complete marketing strategy and some fairly
simple financial analysis. It could also be used as a summary case in an introductory marketing course or
as an exam case.
617.783.7860.
, For the exclusive use of D. Jensen
Page 2 8B13A037
QUESTIONS FOR DISCUSSION
1. How well is Le Cerf performing at the present time? What do you see as the main issues that need to
be addressed?
2. Do a SWOT (strength, weakness, opportunity, threat) analysis for Le Cerf.
3. Develop an integrated marketing plan for Le Cerf for 2010 that will facilitate the creation,
communication and delivery of value for targeted customers.
4. Project the results of your plan in terms of revenue and profitability.
CASE ANALYSIS
1. How well is Le Cerf performing at the present time? What do you see as the main issues that
need to be addressed?
A casual reading of the case indicates that Le Cerf is well under breakeven. Breakeven can be calculated
in the following manner. Total fixed costs are $26,400. The average price is $459 per night. The variable
operating costs come to $85. And the commission is $28, which is a 20 per cent commission on 30 per
cent of the nights. So, the contribution margin is $346. When this is divided into the fixed costs, the
resulting number is 76 nights.
Breakeven is so simple to calculate, yet so powerful. Before calculating this number, making Le Cerf
profitable seems hopeless, but seeing that it needs to be rented for only 76 nights makes the goal look
more attainable.
There are many issues facing Lange-Faria as she prepares to develop an integrated marketing plan. Here
are the main things she needs to concentrate on:
What segments are in the market?
Who should be targeted?
Are there ways to differentiate Le Cerf from the competition?
What about a name change more in line with the positioning of the condo?
How should the condo be priced?
Should EasyRez continue to be used? What about Residences Mont Tremblant Condotel? What other
methods of distribution should be considered?
How should the condo be promoted?
2. Do a SWOT (strength, weakness, opportunity, threat) analysis for Le Cerf.
SWOT can be a useful tool if done properly and used effectively in strategy formulation. Exhibit TN-1 is
an example of a SWOT analysis from a student report on the case.
3. Develop an integrated marketing plan for Le Cerf for 2010 that will facilitate the creation,
communication and delivery of value for targeted customers
The heart of the case is to help Lange-Faria create, deliver and communicate value. The first step is value
creation, which consists of three issues: segmentation, targeting and positioning. Taken together these
form the foundation of strategy. This is followed by value delivery and then value communications.
617.783.7860.
