Imc.docx

Integrated marketing communication

Introduction: Magellan Boatworks is a midsize manufacturer of customized, power “cruising yachts.” In the face of economic and political uncertainty in late 2016, Magellan’s VP of sales and marketing, Walt Robinson, wonders whether he should request a budget increase for 2017. Important questions abound. Can Robinson’s team increase sales even with a lower budget? Should the company reallocate its advertising and promotion budget? Should Robinson consider changing Magellan’s marketing message and narrowing its target market? Why are Magellan’s two best salespeople so significantly outperforming their colleagues? This case can be used in an introductory or executive course that covers integrated marketing communications (IMC), including sales. It is also suitable for elective courses in advertising strategy and sales force management. The case’s focus on a luxury item that symbolizes success for many individuals should generate lively discussion.

Magellan major competitors:   

Beneteau, French company with a large production facility in South Carolina. Hinckley, an established builder based in pot land, maine. This companies built up to 500 boats in a year and also offer a wide variety and value pricing.

Customers:  

Young customers 40-55 years old mainly prefer sailboats Customers more than 55 years old , a much larger group , usually prefer powerboats.

About Magellan: Founded in 1978 by Lee and Debra Rogers, who grew the business and sold it to private equity firm in 2001. Magellan Boatworks was a subsidiary of a large conglomerate which bought Magellan Boatworks in 2007. It mainly sold boats to successful, highly active people .

Product line:

Magellan was known for its contemporary “stepped” hull designs in fiberglass and its elegant interiors. Like its competitors, it offered various equipment and interior options, such as hot showers, air-conditioning, navigation equipment, teak flooring, pull-down beds, and appliances.

Pricing Magellan’s prices varied by boat model and by the exterior and interior equipment and furnishings options. The company tried to maintain “standard” prices for all items it sold. Most of Magellan’s customers financed their purchases. The standard down payment was 15% of the purchase price.

Marketing Communications: Magellan Boatworks used a variety of marketing communications to raise brand awareness, stimulate interest in buying a new boat, and obtain prospects. Magellan had long used mostly “product-centered” ads highlighting its sleek designs and state- of- the art equipment

Sales Process:  A salesperson received a sales prospect (lead), usually from customer service, but sometimes from a referral.

 The salesperson then called the lead and setup a meeting, often at the model boat in one of the regional harbors. Sales people held cocktail parties on a Magellan Boat several time a year.

 The Salesperson then mild a “ Captian’s catalog” of information that the prospects would receive before the initial meeting.

 During the first meeting, which typically lasted for 3-4 hours, the salesperson discussed which of Magellan’s various boats best met the prospect’s needs.

 At the second meeting, pricing was discussed and the prospect was provided with additional, (up sell) options. This second meeting often included one of Magellan’s interior designers and an engineer.

 If necessary, the salesperson scheduled third and fourth meetings to finalize details of the sales. There was little or no correlation between the number of meetings and the conversion rates of prospects to customers.

 Purchase commitment meeting. The buyer expressed an intent to purchase in writing contingent on Magellan and the prospect agreeing on a boat model, equipment options, interior appointment, and price.

 Once an agreement was reached, the buyer paid a 15% down payment and proof of financing to complete the legal sale. Some buyers backed out before this stage for various reasons.