Evaluate Magellan’s budgets for advertising/promotion and sales. Are they appropriate for the
marketing task?
Magellan Yachts, based in Georgetown, South Carolina, builds unique power cruising yachts. A cruising
yacht, on the other hand, was a boat that measured between 26 and 49 feet in length. A cruise boat
was usually equipped with living accommodations and powered by sail, motor, or both. For cruising
boats, long-distance journeys, such as from Miami to Brazil, were typical.
The Magellan Boat’s budget is unimportant. They’ll have to cut costs in some areas while raising
spending in others. The turnover ratio in direct mail, for example, has reduced substantially from 6.8%
to 3.7 percent. Cocktail parties are also not very profitable, as revenue generation and genuine sales
leads have declined from 6.5 percent to roughly 4% with no change in cost, showing that they are not
profitable. Cutting expenses has lowered profit while boosting income in some cases, such as print
and new boat shows. For example, we were able to reduce the cost of the new boat exhibit by 18.2%
while still generating greater revenue.
Furthermore, Magellan Boat Works should place a greater emphasis on post-sale promotion
programmes because they are less expensive to implement and have a beneficial influence on sales.
The purpose and message, summarised using the 6M model, are boat ownership, adventure, and a
life without limits. Magellan Boat’s target market and audience are also self-made entrepreneurs. The
targeted media include online adverts, high-end publications, and the continuous use of
recommendation. The next thing they need to think about is distributing their funds. Finally, sales
response, awareness, and the company’s mission are all things to think about.
–CHANDANA LANDA
PGP12038