Marketing management help on: Far Horizon
- Introduction
Far Horizon was established in the year 1994 where in the market growth for the marine leisure market was in its growth stage. For the past 15 years as of now, the enterprise has been dealing with the manufacturing of sailing dinghies and yachts in the year 2001. The current turnover generated by the organization is estimated to be approximately £1, 250, 000 from the manufacturing of small yachts. In order to expand its operations in the various countries as well as expand its customers base a new type of yacht would be manufactured. The newly manufactured yacht would be medium in size which would be suited for 4 to 6 people at a time. This type of yacht will add to the overall sales contribution & improve the levels of profitability earned by the organization in long run. This type of manufacturing of the yacht will also help in earn high levels of sustainability for Far Horizon. After an in depth market analysis for the marine leisure market it has been estimated that, there are approximately 6, 68, 000 boats which are owned & maintained by the households of UK. The different types of boats which are being included within the same are rowing boats, canoes, surf boards, etc. It has been estimated that children within the age group 16 – 34 years are the most enthusiastic group of people who would love to add boating as one their past times. With the change in time, it has been analyzed that currently the target audience for Far Horizon consist of people belonging to a different age group i.e. 35 – 54 or 55+ years of age. Leisure boating has been rendered to as a seasonal activity due to change in the weather conditions. The economic crunch in the year 2008 – 2009, has led to a decline in the levels of sales. The economic crunch not only led to a decline within the levels of sales but also in the overall participation of the people in the marine leisure activities. The seasonality within the activities can also be seen with the decreased sales figures for yachts, dinghies, boats, etc. It has been seen that, the summer months account to the highest levels of sales at Far Horizon.
- Marketing Analysis
Leisure industry in case of United Kingdom (UK) has been referred to as one of the booming industries within the past. It has been seen that, the sales of the small boats & yachts have declined but there is high levels of scope for the large boats & yachts. Far horizon has been referred to as a supplier dealing in marine leisure market. Far Horizon has been dealing within the same for the past 15 years as of now. With high levels of success earned in these 15 years, the enterprise is planning to expand its operations. The main focus for the enterprise is to target more experienced yachtsmen. This will lead to an expansion within the target base of the customers. In order to widen the target audience for the same, Far Horizon would target a medium sized country which deals in yachts. The expansion of Far Horizon with respect to its products or services offered will help to achieve high levels of success in the long run and make its future secure. It shall be kept in mind that, lack of experience in the deep water marine equipment will act s one of the major hindrance for Far Horizon. While formulating a marketing plan for Far Horizon, it shall be kept in mind by organization that current levels of recession will not act as a positive sign for the same. Based upon the PESTLE analysis for Far Horizon, the social & economic factors will not support expansion plan. Whereas on the other hand, political, social, technological & legal factors will act helpful in expanding the plan. The company i.e. Far Horizon will adopt a low cost approach in order to attract more number of yachtsmen from different countries.
The market objective for Far Horizon has been described as follows. They are:
Þ The first & the foremost objective of Far Horizon are to expand the customer base by targeting more countries.
Þ Opt and implement a low cost approach which would help to attract more customers in a short time span.
The market goal for Far Horizon has been highlighted as follows;
Þ Within a short span of time, Far Horizon will be regarded as one of the established supplier for leisure marine business.
Þ
The
- Development plan (SWOT)
| StrengthÞ For the past 15 years as of now, the enterprise has been dealing with the manufacturing of sailing dinghies and yachts in the year 2001. |
Þ The current turnover generated by the organization is estimated to be approximately £1, 250, 000.
Þ The newly manufactured yacht would be medium in size which would be suited for 4 to 6 people at a time.
Þ This type of yacht or boat will add to the overall sales contribution & improve the levels of profitability earned by the organization in long run.WeaknessÞ The major weakness attached along Far Horizon is the remote location of Far Horizon.
Þ The present cash flows earned by the enterprise are negative. This is due to the current levels of recession which is being faced by the same.
Þ Hiring as well as preparing the staff members would be difficult. It would require high levels of technicalities to make the managers aware regarding the offerings.OpportunityÞ The first opportunity attached along Far Horizon is that, there is no direct competition faced by the same.
Þ The number of competitors hampering the evolution plan is less.
Þ The organization is located at one of the best locations of United Kingdom (UK). The geographic location attracts more number of competitor’s towards it.
Þ Far Horizon is the only facility available in a particular area serving the leisure marine suppliers with boats, yachts & dinghies.ThreatsÞ Slump or recession within the area will hamper the growth of the organization in long run.
Þ The employee turnover for Far Horizon would be at stake.
Þ Slum or recession will also lead to a decline in the level of sales thereby affecting the overall revenue generated at Far Horizon.
- Financial Plan
| Resources | Approximate Value (in $) |
| Direct Cost:Cost of Raw Material |
Variable Cost
Project Staff
Labor
Project Supplies
Travel expenses Indirect Cost:Expenses
Fuel Charges
Audit & Legal Charges
Maintenance charges
Security
Generator
Administrative Staff
Overhead Cost Advertising Budget:Marketing Communication
Advertising
Sales Material
Public Relations4,980,000
4,980,000
2,490,000
7,490,000
CASH FLOW STATEMENTS:
Cash Flow Statements for 1st year: (end of 1st quarter)
Cash flow Statement (Direct Method)
Cash Flow from Operating Expenses Amount (Rs)
Cash Inflows:
From sales of goods & services 12,500,000
Cash Outflows:
Employment for Services (100*20,000) (2,000,000)
——————
Cash Flows from operating expenses 10,500,000
——————
Cash Flow Statements for 1st year: (end of 2nd quarter)
Cash flow Statement (Direct Method)
Cash Flow from Operating Expenses Amount (Rs)
Cash Inflows:
From sales of goods & services 25,00,000
Cash Outflows:
Employment for Services (100*20,000) (2,000,000)
——————
Cash Flows from operating expenses 5,00,000
——————
Cash Flow Statements for 1st year: (end of 3rd quarter)
Cash flow Statement (Direct Method)
Cash Flow from Operating Expenses Amount (Rs)
Cash Inflows:
From sales of goods & services 37,500,000
Cash Outflows:
Employment for Services (100*20,000) (2,000,000)
——————
Cash Flows from operating expenses 35,500,000
——————-
Cash Flow Statements for 1st year: (end of 4th quarter)
Cash flow Statement (Direct Method)
Cash Flow from Operating Expenses Amount (Rs)
Cash Inflows:
From sales of goods & services 25,000,000
Cash Outflows:
Employment for Services (100*20,000) (2,000,000)
——————
Cash Flows from operating expenses 23,000,000
——————-
Balance Sheet:
| Liabilities | Amount ($) | Asset | Amount ($) |
| Borrowings | 5,00,000 | Bank | 15,00,00,000 |
| Owner’s Equity | 3,00,000,000 | Stock | 175,000,000 |
| + Net Profit | 225,000,000 | Current Asset | 20,00,00,000 |
| Total | 525,000,000 | Total | 525,000,000 |
Break even analysis for the project:
Breakeven point refers to a point at which the expenses as well as the revenue would be equal, i.e. a situation wherein there would be no profit no loss.
Break even = Fixed cost/ Contribution margin
= Rs. 80,000,000/40 = 2,000,000 units.
The business would break even at the sale of 2,000,000 units. The projected sales say that the business would sell 2,000,000 units by the end of the first year, and thus break-even right at the end of the first year which is fast.
The break – even point achieved for Far Horizon, would be at 2,000,000 units, which means that, when the company would produce 2,000,000 units of yachts, at this point there would be a situation of no profit no loss.
If you want Marketing management Assignment Help studysamples to help you write professional custom essay’s and essay writing help.
Receive assured help from our talented and expert writers! Did you buy assignment and assignment writing services from our experts in a very affordable price.
To get more information, please contact us or visit www.myassignmenthelp.Com
