Camp Wahanowin Harvard Case Solution & Analysis

Question 1

            There are numbers of factors that are considered by the consumers in order to decide which camp is the right one for them. The most important factors of these include the extent of the camp programming, quality of the facility and the equipments and all other tangible factors such as the location of the camp. Along with these tangible variables, there were also many other variables that were highly important for the customers but they were far less measurable.

            These intangible factors comprised of the social pressures to attend the camps with the friends and the personal connections with the camp. The reputation of the camp also played an important role in making the final decision despite the fact that a lot of traditional advertising was done by the camp owners. The camping industry was also influenced strongly by the word of mouth. Positive word of mouth promoted the image and the reputation of the company in the eyes of the parents and their children.

            Furthermore, the target market also played an important role in promoting a particular camp and spreading positive messages for the camps resulted in increased number of the campers and the camp revenues. Lastly, the fee for each of the season was an important factor, which was considered by the customers in order to make a final decision regarding which camp is the right one for them.

Question 2

Q2.1

            The weighted average contribution margin in dollar terms per each camper is $ 1708 and in percentage terms it is 26%. The calculations can be seen in the table below:

CONTRIBUTION CALCUALTION

Full Season

July Session

August Session

Price/camper (Fee) $          8,500 $          5,450 $            4,475
Contribution Margin (in %)

35%

25%

15%

% of Campers

30%

50%

20%

Margins

35%

25%

15%

Contribution Margin ($) $          2,975 $          1,363 $               671
WEIGHTED AVERAGE CONTRIBUTION MARGIN ($) $                                                              1,708
WEIGHTED AVERAGE CONTRIBUTION MARGIN (%)

26%

Q2.2

            The break-even point in terms of the number of the campers for the website overhaul idea is approximately 5 campers. The calculations are shown in the table below:

Break-even point for Website Overhaul idea

Fixed Costs

8000

Weighted Average Contribution Margin $          1,708
Break-even point (Units) $            4.68

Q2.3

            The break-even point in terms of the number of the campers for the Waha TV idea is approximately 5 campers. The calculations are shown in the table below:

Break-even point for Waha TV idea

Production of yearbooks

450

Vimeo Plus subscription

60

Shipping costs

500

Hiring of 2 video photographers

7000

Total Fixed Costs

8010

Weighted Average Contribution Margin

1708

Break-even point (Units)

4.69

 Question 3

            Peter This tlethwaite had provided with the specific number of the campers along with their probabilities or the chances of actually occurring. Based on that, the weighted average number of the campers has been calculated which would enroll in August if the price or the fees is reduced from $ 4475 to $ 4175. The weighted average number of the campers would be 90 and this shows that the 2011 estimate of 95 is not correct. However, still if 90 campers are going to enroll for August 2011, then they would be much higher than the total number of the campers of 75 if the price is not reduced by $ 300.

Camp Wahanowin Case Solution

            However, the reduction in the fees by $ 300 would not have an impact upon the contribution margin percentage but the dollar contribution would be reduced. The dollar contribution would be reduced from $ 671 per camper to $ 626 per camper which is a reduction of 6.7%. However, this might have a negative impact upon the quality of the camps services, therefore, it is recommended that the price should not be reduced and the most effective marketing initiative should be taken. Reducing the price to increase the number of the campers would negatively affect the image of the camp.

Question 4

            There are ranges of promotional ideas and promotional tools available to the camp owners in order to boost the enrollment of the August 2011 session. These options include the website overhaul idea, Waha TV idea, traditional advertising, social networking and alumni newsletters, Toronto Prep School Partnership and approaching the international market. First of all, the website overhaul idea is highly effective and through the website a real camp experience can be felt by the campers and their parents. Furthermore, blogging, photo and video sharing can also be performed. Secondly, the Waha TV would also be highly effective through its thematic and daily highlights of events and activities. With the help of Waha TV, the accurate tracking of all the customers from specific locations would also become possible....................

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