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Hurricane Island

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Mr. Chin should advise to increase marketing efforts for the professional development programs. BECAUSE:

1. Major problem with this marketing plan is the idea that chasing corporate America is a violation of the mission statement. This is not true. The mission statement, which reads:

The Mission of Hurricane Island Outward bound is providing safe, challenging, educational experiences in a wilderness setting, carefully structured to improve self-esteem, self- reliance, concern for others and care for the environment."

This mission statement reveals NOTHING about limiting these benefits to only the underprivileged. While that population might benefit MORE so than the middle-upper class, it is truly irrelevant. Those at Hurricane ASSUME that it is directed for the underprivileged. With the inception of Hurricane, founder and school president Peter Willauer envisioned " an outdoor classroom"- not an outdoor classroom for the poor. This is critical. In addition, according to Exhibit 4, we see that Special Programs, (i.e. the group of vets, substance abusers, troubled youth and other groups) seem to those programs which specifically cater to the under privilege but yet, in 1985 these programs only account for at maximum 22.6% of the student population.

Yet, despite this reality, if we are to assume that the schools wants to cater to the underprivileged or those who cannot afford tuition, expanding the PDP is the only way to do so. BECAUSE:

1. Its success rate cannot be ignored. 158 professional attended in 1985- and those 158 are those that received NO financial aid. That accounts for 6% of the public course student population. This is significant because it's the first -year that the program is in place. In addition that's 6% of the public course student population, which is not necessarily 6% of tuition revenues. It is more likely top be more than 6% of tuition revenues since these PDP received no financial aid.

2. In accordance with this, marketing corporate America is advantageous for hurricane is three ways that most other populations are not:

A: First, Hurricane has a problem occupying the winter (off-season) season. Corporations, unlike student populations, or younger, not-working populations do not have a "season". Work is full-time. It does not revolve around summer or winter.

B: it is clear that corporations are likely to pay full price for classes and do not need financial assistance as can be used as tax deductions.

C: If hurricane achieves success with a corporation, that corporation will be a returning customer for much longer and will provide much more income than one family or group etc.

The revenue generated by targeting corporations could in turn be used to expand financial aid and thus, cementing Hurricane's commitment to the poor.

In order to maximize this generated revenue, implementation would be as follows:

1. Because we are sure that corporations are able to pay more (incentive of tax deductions), Mr. Chin has to advise the Board of trustees that class prices must be increased Immediately, especially for the summer period. If we have to sacrifice one summer and devote a large number of available classes to PDP then, the revenues generated for that one month, would allow expansion for the following summer that could be devoted toward the underprivileged. Right now, on pg 10 it states that Hurricane charges $75 per student program day but hurricane earns no profit on this as Chin states that direct costs are $45 and fixed costs are $30.

a) Problem with price differentiation, according to exhibit 6 during the period of 6.14-8.08 student capacities are almost maximized. Yet during the



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