What Should Mr. Philip Chin Do About 1987 Marketing Program?

 Name-Pranjal Jain

Sap Id-80401190021

CASE ANALYSIS - QUESTONS

Hurricane Island Outward Bound School

Q1. What should Mr. Philip Chin do about 1987 marketing program?

ANSWER 1-

1. Developing new higher‐level public courses can be created for students who have taken previous courses which will strengthen the skills taught in previous classes. These courses could result in repeat purchases and enhance the value of students. Courses making top graduates certified as professionals in the school itself should also be promoted. This would improve the staff turnover problems and since they are familiar with and have already taken HIOB courses, training these instructors would be less costly.

2. Alumni testimony not only adds credibility & enthusiasm but can also add significant strength to the marketing efforts. Although it is difficult to track the financial impact of such a program as it may be unclear how much revenue it is earning and hence wouldn’t be able to justify its existence. On top of the difficulty in linking financial growth of the school to the success of this program is that it is more likely that students will often be interested in taking the same programs as the alumni participated in—thus creating an even bigger divide between enrollment in popular programs and that of off-season courses.

3. Expand Direct Sales Recruitment - The school projected the recruiting would generate 17% of 1986 applications and 20% of 1986 enrollments. If the average contribution margin per student is around $101, this means that direct sales recruitment was responsible for just under $52,000 in net earnings for a $9000 investment.

4. Prospective students have responded well to the previous telemarketing efforts, If Chin can find and attract salespeople that are both knowledgeable about the school and easy for the prospective students to talk to he may find another strong channel to assist in recruitment. However, the costs of such a program are still as unclear as the effectiveness of such plan. If the extended test can provide data that can help measure the effectiveness of such a program, it would be worth the $6,000 investment.

5. All the three type of Courses are evenly distributed across all the Hurricane Island Outward Bound Campuses

Q2. What is outward bound as an organization? How is it doing business and how does it make money?

ANSWER 2-

Hurricane islands Outward Bound school started in 1964 is a non-profit organization and the largest outward bound movement in the United States. The organisaton is aimed for the people who belong to the different culture, background, and ethnic group with a mission to provide survival training that could help individuals, students, and people in business to develop self-confidence, self-esteem, concern for others and respect for the environment.

Being a non-profit organization the company since inception has not been able to break even on operational basis, with a huge reliance on contribution to finance the deficit. This deficit greatly concerned the trusties and hence a special attention was given to the marketing to boost the revenues of the school due to which the operational profit started to show first time in its history.

The school generates revenue the form the tuition fees received from public and special courses. It also generates revenue from operating contributions. IT is also supported by the people who conduct fund raising, publicity and advertising campaign.