Hurriance Island Outward Bound School Case Analysis

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1. Problem/Purpose of the Report:
Mr. Chin, Marketing director of Hurricane Island Outward Bound School (HIOB), developed four marketing plans in 1987 to achieve following goals: Overall Goals: Continued growth and financial stability

Marketing Objectives: delivering 2,700 students, 47,800 Student Program Days (SPDs) and $3.4 million in revenues. Strategic Objectives: Maintain school leadership within the Outward Bound System and Build-off season business The main problem is the implementation of marketing plans with limited budget. The purpose of this analysis: 1) to evaluate the strength and weaknesses of each marketing option 2).Recommend what option should be adopted, rejected, or modified and adopted. 2. Recommendations:

-Invest in Professional Development Programs (PDPs),
-Expand direct sales marketing and telemarketing.
-Provide variety and flexibility in PDPs and attract companies for PDPs in off-business. -Enlarge Florida base to provide winter courses.
-Shorten the length or decrease the number of offerings of less profitable courses. -Target consumers who had inquired or applied but not enrolled. -Offer year round positions to the staff; assign them marketing or administrative work during off-peak season. 3. Analysis

Market/Customer Analysis: Hurricane is largest in Student Program Days (SPDs) and Colorado has most students. Both schools contribute to 70% of the total business. Market segments: 1. Special programs: The demographics of these programs are young to middle aged male or female who lacks in confidence, emotionally weak and mentally undeveloped. These programs accounted for 23% Hurricane’s student, 32% student program days, 33% tuition revenues in 1985. DMU are the officers at rehabilitation centers, municipal and government agencies. 2. Public courses: These programs primary target is young students of 14-19 years from Northeastern United States which includes 6 New England states and New York. DMUs are friends, family, students themselves and website, brochure etc. Public courses are further categorized as Maine Sea, Florida Sea, Winter Land and Summer Land. 3. Professional Development Programs: The demographics of these programs are professional executives aged from 25-55 years and are interested in working in teams, improving leadership and communication skills. DMU are the HR managers of different companies. In addition to above mentioned groups, there are six more buying groups:1) high school and college students, 2) Juniors, 3) municipal and agency contacts, 4) young professionals, 5) corporations, 6) Hurricane course alumni. Industry/Competition Analysis: Outward Bound is a non-profit organization responsible for providing excellence in wilderness teachings, raising funds, conducting publicity and advertising campaigns. Hurricane, the sea school, was founded in 1964 with two missions 1) to provide safe, challenging and “Experimental” educational experiences in wilderness setting 2) to improve self esteem, confidence, teamwork and respect for the environment. Industry serves diverse markets. The competition for juniors is summer camps, for College students could be vacations, summer jobs and other wilderness experiences and for Industry is corporate trainings. All five schools face friendly rivalry among each other. Colorado is one of the biggest competitors for Hurricane as it enrolled the most students. Based on competition and other environment factors Hurricane’s SPD and student utilization for 1986 is as below:

Company – SWOT Analysis
Largest in SPDs and one of the leading schoolWeak financial position. Few strong competitors Colorado is one of the biggest competitor Highly qualified and certified staff Difficulty in offering yearly positions to staff. Old, reputed and expertise in outdoor activitiesFlorida base was too small Challenging but very safe environmentLow enrollment in off-peak season Strong alumni network

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