Cape Breton Case Study

Topics: Marketing, 1988, Customer service Pages: 7 (2722 words) Published: February 27, 2011
Executive Summary
Cape Breton Boat Rentals is a boat rental company owned by Bruce MacLean and operated by his brother Malcolm Maclean. Although their reception was welcoming in the year 1988, their selling price could be said is at below the actually operating cost. To avoid the same situation in 1989, the MacLean bothers had to improvise and make aggressive decisions like for example tripling their advertisements. We will show possible ways and methods on how they would have improved in marketing concepts. We will go through the marketing characteristics, marketing mix and marketing concepts that were and should be applied. We feel Malcolm MacLean is stealing money from the business.

1.0 Introduction
We are given a real life case study of Cape Breton Boat Rentals. In this case study we are required to read and examine the marketing philosophy, marketing characteristics and marketing mix that was used or should have been used for that company. We get to evaluate which marketing contents would be more suitable to apply in this business for it to be successful. We hope to learn more after using our lecture notes and knowledge into practice. 2.0 Question 1

Based on the marketing philosophy, the business concept used by Bruce MacLean in his boat rental business, Cape Breton Boat Rentals in 1988 is Marketing Concept. The meaning of this concept is, to satisfy its customers’ needs and wants while meeting the organisation’s goals. It is easier to meet the goals when the company’s customers are satisfied with their products. In this case, Bruce MacLean has chosen Munro Park as the site for his business. The reasons behind it were, Seaview Drive offered a good traffic location which is great for customers wishing to take the water craft away and Munro Park also has a good beach location, suitable for customers seeking to rent on-site. Bruce MacLean had fulfilled the first criteria of the Marketing Concept which is meeting customers’ needs and wants but did not met the second criteria which is return customers. This might be the cause of low sales revenue in 1988 which was only $14,699, less than half the projected sales revenue of $33,000. The explanation of this happening could be that customers first came to Cape Breton Boat Rentals due to the attractions and the convenience but, mostly did not return.

From that, the pro and con of Marketing Concept used by Bruce MacLean could be identified. The pro is that, his business was well received by the public and many of his customers praised the fair prices charged by Bruce MacLean, hence meeting the needs and wants of the customers, the first criteria of Marketing Concept. The first con is that, the bad weather on July of 1988, according to MacLean, this factor itself had pulled down the season’s sales by 25%, which equals to $3,674.75. Besides that, the insufficient advertising used by Bruce MacLean was also believed to drop the sales of year 1988. In his first year of operations, he did not maximise the frequency of his advertising in the radio and newspaper. The third con is the price charged. In the case study, it was mentioned that when MacLean increased his price for year 1989, it was still lowered than his competitors, this means that in year 1988, MacLean’s price was really low. It might be even that MacLean had actually underpriced some of his equipments and therefore, suffering losses on every sale he made for that particular equipment. The last con that could be identified is that, the limited operation days for year 1988. It was stated in the case study that Bruce MacLean’s business only operated for 82 days only, mainly due to bad weather.

From the Income Statement of year ending April 30, 1989, it was stated that the Total Revenue was $14,699 and Total Expenses was $22,024, making a Total Net Loss of $7,325. In the case study, it did not mention how the expenses were accumulated, this makes it harder to justify how successful is the Marketing Concept used...
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