Sea Escapade Ltd - Communication and Business - Case Study Example

Title: Communication and Business Name: Institution Course: Sea escapade ltd A cruise with a tap refreshing hospitality Table of contents Executive summary…………………………………………………………………4 Products…………………………………………………………………………….4 Market………………………………………………………………………………5 Marketing……………………………………………………………………………5 Mission………………………………………………………………………………6 Objective…………………………………………………………………………….6 Keys to success…………………………………………………………………….. 7 Company history…………………………………………………………………….7 Marketing plan………………………………………………………………………7 Sales strategy………………………………………………………………………..7 The company marketing Mix………………………………………………………..8 SWOT and PEST Analysis…………………………………………………………..10 Financial statement and analysis (excel document) Communication and Business Executive summary Sea escapade ltd is a company that designs the leisure sailing Dinghies’ and Yatch and offers them to the sea explorers. This company is formed as a Limited liability company and has been in operations in a small scale for the last 8 years. The company has been able to sell the sea explorers through the internet to the individual clients and the aim is to take the company to the next level. Products Sea escapade Ltd manufactures and sells high-end dinghies and yatch to the sea explorers. The shafts and the hull as well as the other body parts are made out of custom drawn materials and the head unit will be made out of an aluminum series. Such material does offer high end bodies and applications that are the lightest available and comfortable to disperse vibrations and it is absolutely safe (White, 2007). The products life cycle has been as shown below; Market The Sea escapade Ltd at current does sell directly to its respective individual clients. In an effort to grow business, Sea escapade Ltd needs to manufacture a new 4 to 6 yatch and start selling it to the new organizational clients. The expected annual growth rate for the organizational clients is 14%. Marketing Sea escapade Ltd will employ two distinct marketing strategies fro it to be able to reach out to its perspective clients segments. The organization first strategy is to use the website. Trade shows will also be used to reach out to the clients (White, 2000). It is expected that the Sales will reach $119,000 in the first year and it shall rise to $332,000 by the end of year 3. The marketing efforts shall be made to the expectations of the various segments. This is due to the fact that specific market segments depict different characteristics. The product market segmentation is as shown; The sales highlights will be as follows; 119,000 278,000 332,000 year 1 Year 2 Year 3 Mission Sea escapade Ltd mission is to manufacture a yatch and dinghies of the finest quality n the market. These products should be light weight, comfortable and with practical safety margin in the sea. Objective To be a premier producer of yatch and dinghies Increases sales and return on investment such that Sea escapade Ltd will become a sustainable business Significantly increase sales by creating a new market segment of the consumers Keys to success Accurately engineered merchandise Trail through on all assurances; to the distributors, vendors and consumers Stringent economic controls Company history The Company has operated for the last 8 years profitably. (In the excel sheet) Marketing plan Sea escapade Ltd will use a different marketing strategy based on the two different market segments that the organization is striving to achieve. The respective marketing for the individual clients will be undertaken primarily through the internet. In addition, there shall be the use of some magazine commercial space. In addition, the main focus will be on the promotion of the Sea escapade Ltd website by the adoption of practical positioning on the search engines. The most expected to be adopted search engines include the Google which will be able in second to bring to the attention of the person looking for information the company database. In addition, the Sea escapade Ltd taking part in the industry trade shows will be a key approach to the marketing effort for the company distributors and other wholesalers. There shall be two shows in which much of the Sea escapade Ltd business will be transacted. It is assumed that the distributors, wholesaler and retailers are able to access any material and product information through the usage of the search engines and additional information through the trade shows because it is expected that no one who on a serious basis takes part in the industry will and is likely to miss the trade shows. The trade shows do provide to Sea escapade Ltd with a golden opportunity to show off its merchandise to the distributors and the opportunity to create a lasting relationship. Thus the trade shows shall be accorded much value based on the fact that in these shows deals are sealed and practical relationships are established. Sales strategy Individual consumers The sales focus for these clients shall be the conversion of qualified leads. This will be achieved through the emphasizing on the products that are customer designed fro particular consumers. Such customized products should be able to possess the comfort and lightweight as well as a wide safety margin characteristic for the specific consumers. Such factor will enable Sea escapade Ltd to differentiate its products from what the competitors shall be producing. Distributors The respective sales strategy to cover the distributors shall be set to emphasize on a close relationship between the organizational distributors and Sea escapade Ltd. The presence of distributors is critical as they are very sensitive to the issue of Sea escapade Ltd product availability. Sea escapade Ltd will strive to gain distributors confidence that the organization shall be able to satisfy the needs of the distributors and production can as quick as possible be sealed and Sea escapade Ltd is ready to quick fill orders. This shall be meant to allow the distributors not to hold unto large volumes of inventory out of fears that they shall not be able to fulfill and mass orders from the Sea escapade Ltd product retailers. Sea escapade Ltd will on top work harder to convince through impressing distributors in the trade shows that the organization is manufacturing quality products which have low failure rate and which if any warranty issues arise shall be dealt with quickly in an amicable manner. Such mechanisms shall be adopted basing or the argument that sales are realized from relationships relative to the actual products. (Sales forecast is shown on the Excel document) The company marketing Mix This involves the evaluation of the product, place, price, and promotion strategies’ that are going to be adopted by the entity. This is as shown bellow; 1. Product: The product is subject to the lifecycle followed by the other products in the same industry. The company intends to gain from it before it reaches the point of market saturation. 2. Promotion: Different mechanisms shall be used to familiarize the customers the products that the corporation has for them. These will range from the usage of various media houses to the internet marketing efforts and the emailing of brochures to all potential clients. 3. Place: This shall be done through the strategic location of the entity head quarter as well as the other satellite offices to facilitate accessibility and easy targeting of the consumers. 4. Price: Reasonable price margin is going to be embraced always. This shall be practiced especially for the first to the third year, as the product shall be penetrating the market. SWOT and PEST Analysis SWOT analysis is the scrutinizing of the organizational strength and weaknesses in the internal organizational environment and the opportunities and threats that exists in the external business environment (Warren, 2009). For Sea escapade Ltd, the analysis is as shown below; Strengths Based on the fact that Sea escapade Ltd has been operating fro the last 8 years while making profits is an advantage to the implementation of the Yatch project. This is because; the organization just needs to sharpen the skills of its human resources to make the yatch project a reality. Sea escapade Ltd does offer to its market product that are able to meet the comfort requirement among other issues such as usage of light material that is durable. Thus the company has for the last years been able to satisfy their client; which is not possible for most f the competitors. The sales volume that Sea escapade Ltd has been able to realize are significant proves to the sense that Sea escapade Ltd “gets the sale.”For instance, the current Sea escapade Ltd sales figure is 1, 250,000 US dollars which could not be accomplished if the organization does not disburse its inventory. This thus proves that the company has a stable base and ready market and the Yatch project shall be enjoying the existence of an already stable market for the company products. Sea escapade Ltd has various Unique selling prepositions, the organization is a market leader in the production of 4 to 6 dinghies and yatch, it has the experienced human resources (approximately 15 employees on a fulltime basis and 2 employees on part-time employment), and an already existing market for the organizational quality products. Weaknesses Sea escapade Ltd has to improve its productivity to ensure that it does realize significant sales volume within the high seasons due to the biased seasonality of demand. The organization should as well avoid overproduction which could make the organization produce poor quality products. Opportunities The organization has a change to gain on the market share through the introduction of the Yatch project. The project will be a diversification of what the organization offer to its market and the opportunity to continue enjoying products superiority in the market. The utilization of the leisure products despite being seasonal, it has significant results during the peak seasons. A lot of returns can be gathered during the peak periods. Thus the trend in this case is that the company; Sea escapade Ltd yatch project will be an additional advantage to the product development and diversification in the served market. In addition, the change in lifestyles and the global population profiles is advantageous to what the Sea escapade Ltd offers to its markets. Threats The organizational competitors are adopting and integrating with the others to pool competitive advantages (Pinson, 2008). This is risky for the yatch project which is run by Sea escapade Ltd which has not adopted any diversification or growth method. A change in technology is also critical to the success of the Yatch project. Quality products and their standardization is critical to the success of the Sea escapade Ltd current project. PEST analysis on the other hand involves the scrutinizing of the Political, Economical as well as the social cultural platform and Technology that is related to the operationalization of Sea escapade Ltd. Diagrammatically, this is as shown below; Political factors Government regulation and standardizations affects the Yatch project The taxation policy and the licensing of the company as per the outlined organizational laws and company or business creation regulations affect the organization. Trade laws and organization affects the management and running or the organization and the Yatch project Economic factors The global economic meltdown and recession is critical and affects the realization of the objectives of the Yatch project. The dollar values and the likely to be return on investment affect the yatch project. This is because the instability of the global currencies does not favor the investment opportunities such as the Yatch project. Unemployment means that the utilization of the product will be sluggish Low Income per capita is also critical. This is because if the figure is unfavorable, the organization likeliness of accomplishing the financial goals will be tampered with. Social cultural factors The project might end up congesting the leisure market which is not practical for the yatch project The pricing of the Yatch project might be so much expensive that it may shield the utilization of the product by the local population Technological factors The advancement of technology in near future does not favor this project. Technologies are changing fast and it is critical that the implementer of the project; Sea escapade Ltd take into account the likely to be technological requirement in the near future. (Financial statement and analysis is on the excel document) Breakeven analysis This is the point whereby the project shall be able to offset all it costs. In a graphical representation, this involves the total coast, fixed costs and the expected volume of sales against the units sold. The pint of intersection is the breakeven point. To arrive at the break even, the calculations are as follows (Hurd, Barcelona & Meldrum, 2008); Break-even point calculation Table Item Formula Year 1 Year 2 Year 3 Break-even point (BEP) Total Fixed Costs/1- (variable costs/sales) Item formula year 1 year 2 year 3 BEP T.F.C/1- (v.c./sales) 644,513/1-(160,000/1,686,000) 644,513/1-(172,012/1,980,486) 644,513/ 1-(175,200/2,356,256) 644,513/1-(0.095) 644,513/1-(0.087) 644,513/1-(0.074) 644,513/0.905 644,513/0.913 644,513/0.926 712,169.06 705,928.80 696,018.35 The break even analysis means that the yatch project will be able to offset all costs at 712,169.06 during the first year into operation and 705,928.80 for second year and 696,018.35 on the third year subsequently. Any additional revenues will accrue to the project profitability. This means that the Yatch project prospectus of profitability is promising and it washes away any doubts that may face the potential investors in it. Reference Hurd, A., Barcelona, R. & Meldrum, J. (2008). Leisure Services Management with Web Resources. New Jersey: Human Kinetics. Pinson, L. (2008). Anatomy of a Business Plan: The Step-by-Step Guide to Building a Business and Securing Your Company's Future. NY: Out Of Your Mind . . . And Into The Mark. Warren, T. (2009).Tourism Travel Marketing. CA: Sonoma County. Retrieved from http://www.travelbusinesssuccess.com/2009/11/11/new-tourism- marketing-guide-reveals-successful-strategies-for-today%E2%80%99s-savvy-travel- marketer/ White, R. (2007). Developing Successful International Family Entertainment Centers. White Hutchinson Leisure & Learning Group. Retrieved from http://www.whitehutchinson.com/leisure/articles/86.shtml White, R. (2000). Target Your Market-Marketing LBLs: Love the Ones You're With. White Hutchinson Leisure & Learning Group. Retrieved from http://www.whitehutchinson.com/leisure/articles/52.shtml Read More