Marketing Management: Hurricane Island Outward Bound School

1673 words - 7 pages

Case Analysis: Hurricane Island Outward Bound SchoolPURPOSE OF THE REPORTHurricane Island Outward Bound goals for 1987 were:* Continued growth* Financial stabilityTo realize this, Mr. Chin is determined to deliver three marketing objectives:* 2,700 students* 47, 800 Student Program Days (SPD)* $3.4 million in revenuesMr. Chin has developed four marketing proposals for 1987. The purpose of this analysis is to:* Evaluate the strength and weaknesses of each proposal* Recommend what plan should be adopted, rejected, or modified and adopted* Determine the best marketing mix with respect to the marketing budgetThrough 1985, the school had never broken even on operating basis (TRRECOMMENDATION* Expand the program to allow more individuals to attend the course during the peak season and off-peak season.* Increase sales by altering the pricing strategies of programs that are full to increase their revenue.* Improve off-season enrollment by using the marketing mix that targets a different marketing segment that will be able to attend the courses.ANALYSISMarket Size: Colorado and HIOB controlled approximately 70% of the marketMarket Segmentation:Demographic* 14- to19-year-olds* 20- to 35-year oldsGeographic* Northeastern United States- six New England States- New York* Mid-Atlantic States (New Jersey, Pennsylvania, Delaware, Maryland), and FloridaBuying Groups (within the demographic and geographic markets)* high school and college students* "juniors (ages 14 and 15)* Municipal and agency contacts (for special programs)* Young professionals* Corporations* Hurricane course alumniProduct:Hurricane Island Outward Bound is a nonprofit school that offers experiential education in the United States. The school is focused on creating, staging and marketing experiences.Mission StatementThe mission of HIOB is providing safe, challenging, educational experiences in a wilderness setting, carefully structured to improve self-esteem, self-reliance, concern for others, and care for the environmentIt is important to note that given that it is a nonprofit organization, marketing initiative should accurately reflect the unique character and concerns of the school.Marketing Options:There are several marketing options that the organization is looking at to stimulate growth and revenues within the company. Specific strengths and weaknesses of the four alternatives are summarized below:1. Expand "Alumni in Marketing" networkStrength/Weaknessesalumni have access to institutions for group presentations number of volunteer is uncertain more Word-of-Mouth advertising less controllable: coordination of effort among marketing, sales and alumni would be a substantial task greater enthusiasm less measurable: revenues generated is undetermined generate repeat business could endanger its donor baseProjected Cost: $15,000Conclusion: AIM is an area with promise due to its success in recent years, but it is also risky with respect to how much the company values the alumni. Through...

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