Free Essay

Camp Wahanowin

In:

Submitted By ssstudent
Words 1143
Pages 5
Solution 1:

Camps provided an opportunity for the campers enrolled to establish lifelong friendships, new skills, appreciation to the outdoors, achieve independence and contribute towards the community, through the variety of programs and activities provided by the camps. Exposure to such activities provides valuable experience to the enrollers (campers), which can help shape, the enrollers in future. Parents are well aware of this and always look to provide such an experience to their children. For a camp business direct customers are the campers or enrollers who influence the parents and the indirect customers are the parents who actually pay for the campers.

In making decision to enroll to the camp customers take into account the location and quality of equipment’s in the facility, at the` same time the programs offered are important as well. Parents and children during their social gatherings and meets often discuss plans for the summer, some of the conversations also lead to discussions of positive experiences previously enrolled campers or their parents had with a camp. Such social meets is one of the important factors in deciding to enroll to a camp along with the pressure from their children to enroll them in camps where their friends are going. A happy camper and his parent always will pass down the good reputation and positive experience they had with a camp. Many decisions of enrolling to a camp are highly dependent on word-of-mouth reputation of the camp. Some other passive channels of getting influenced for enrollment were traditional advertisements.

Children often imitate their parents and wish for doing the same activities their parents did when they were young. Camp enrollments are highly influenced by such personal connections as well. Type of parents was an important factor in deciding which type of camp to enroll to. So called “helicopter parents” preferred day camps as opposed to residential camps.

Thus, the decision in enrolling for a camp had a high social and personal touch to it than the traditional ways of advertising and marketing a product to influence enrollments. Thus, forcing the marketing strategy to be aligned more to nontraditional ways.

Solution 2:

2.1:

Provided Data:

Full Season
July Session
August Session
Price/Camper (Fee)
$8500
$5450
$4475
Contribution Margin (in %)
35%
25%
15%
% Of Campers
30%
50%
20%

Contribution Margin/Camper

Full Season
July Session
August Session
Contribution Margin/Camper
35%*8500 = $2975
25%*5450 =$1363
15%*4475 = $671

Weighted Average for Contribution Margin/Camper:

W. Ave = (30%)(2975)+(50%)(1363)+(20%)(671) = 0.3*2975+0.5*1363+0.2*671 = 892.5+681.5+134.2 = $1708.20 ~ $1708

Hence, Weighted Average Contribution margin/camper is $1708

2.2:

Formula that will be used:

Breakeven Point (in unit) = Fixed Cost ($)/Contribution Margin ($) per unit

Given Data: Cost for website overhaul = $8000 Contribution Margin ($) per camper (W. Ave) = $1708

Solution: Number of campers (breakeven) = $8000/$1708 = 4.68 ~ 5 campers

With the website overhaul cost of $8000 we will need 5 campers to recover all the costs incurred and hence to breakeven.

2.3:

Formula that will be used:

Breakeven Point (in unit) = Fixed Cost ($)/Contribution Margin ($) per unit

Given Data: Cost for hiring 1 videographer = $3500 Total cost for 3 videographers = $3500*3 = $10500 Cost for Vimeo subscription = $60 Contribution Margin ($) per camper (W. Ave) = $1708

Solution: Total Cost for WAHA TV = $10500+$60 = $10560 Number of campers (breakeven) = $10560/$1708 = 6.14~ 6 campers

With the WAHA TV cost of $10500 we will need 6 campers to recover all the costs incurred and hence to breakeven.

Solution 3:

Lowering price is justified when the change will have most impact; hence Bruce decision to lower the price by 6.7% will be a good option and Camp Wahanowin should go ahead with price reduction for the August session. With reduced pricing Camp Wahanowins’ contribution margin per camper for August will drop from $671 to $626, however because of the increase number of enrollments the overall revenue will go from $335625($4475*75) to $396,625($4175*95), approximately $60000 revenue increase. Even with Peter’s numbers there is 80% chance that the enrollments would be 90 or above. Hence given the 80% chance of above 90 enrollments and increase in revenue Camp Wahanowin can the risk of reducing price and advertise it as a promotional event to attract more enrollments. With economic recession and growing competition this promotional event will be beneficial for Wahanowin rather than affecting its “premium” image.

Solution 4:

With the increase in social networking popularity, use of social networking sites such as Facebook and twitter would be the number one communication and promotional idea Camp Wahanowin should pursue. No additional costs will be incurred, however the overall presence of Camp Wahanowin will increase tremendously. Apart from the Alumni page Camp Wahanowin can post updates on their upcoming programs and events, which will be propagated very quickly through their alumni social network. Investing time in posting and tweeting updates and news to the followers, Camp Wahanowin can delay the website overhaul project since their online presence would increase tremendously with social media involvement. Apart from posts Camp Wahanowin can also post videos for their events on their Facebook page making the need for setting the WAHA TV obsolete. With the online presence through Facebook and twitter Camp Wahanowin can also tap into the international market for attracting international campers without any extra initiatives.

To ride the upcoming wave of high school students enrolling for private summer classes, the Toronto Prep School (TPS) Partnership is another promotional idea Camp Wahanowin should pursue. Even though the margins might be less in the beginning the possibility of opening new programs like this are numerous, and hence a chance to increase revenue and net profit in future. At the same time such program would give Camp Wahanowin a competitive advantage over the other camps. Using the social media to communicate and advertise the partnership Camp Wahanowin would be able to attract more enrollments for 2011, and at the same time set a stage for continuing been a successful and profitable camp in the future.

In order to materialize the above recommendations Camp Wahanowin can take following initiatives:
1. Camp Wahanowin to sign up a new account of Facebook and Twitter, to start using social media as a channel for marketing.
2. Create a new position from the staff members to handle the social media communications; the job of these personnel would be to post new updates, news, upcoming programs and videos to the social media websites.
3. Bruce and Peter to set up a business plan for the TPS partnership program.
4. Camp Wahanowin management to start the staffing and resource requirements fulfillment for the TPS partnership program.
5. Camp Wahanowin to start advertising their social media presence through their website, advertisements and through off-season programs.

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