MANG6227 - Hondz Powerboat Services: Measuring Marketing Effectiveness

This report evaluates the marketing effectiveness of Hondz, a powerboat charter service, using provided data sets. The analysis reveals a decline in marketing efforts, leading to a loss of market leadership. While the company previously held a significant market share, recent data shows a decrease in relative market share and overall revenue. The report identifies a reduction in marketing costs as a contributing factor to decreased customer retention and highlights the importance of reinvesting in marketing strategies to regain a competitive edge. Customer satisfaction levels are also analyzed, revealing a slight decrease in recent years. The report concludes with recommendations for improving Hondz's marketing strategies and overall business performance. Desklib provides access to similar solved assignments and resources for students.

Running head: MEASURING MARKETING EFFECTIVENESS
Measuring Marketing Effectiveness
Name of the student
Name of the university
Author note

1MEASURING MARKETING EFFECTIVENESS
Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................2
Findings......................................................................................................................................3
Performance analysis of Hondz.............................................................................................3
Discussion............................................................................................................................17
Recommendation......................................................................................................................18
Conclusion................................................................................................................................19
Limitation.................................................................................................................................20
Reflection.................................................................................................................................21
Bibliography: Harvard.............................................................................................................23
Appendices...............................................................................................................................25
Appendix 1 (Profitability, cost and revenue data)...............................................................25
Appendix 2 (Relative market share of Hondz)....................................................................27
Appendix 3 (Hondz Customer satisfaction )........................................................................27
Appendix 4 (Riderz Customer Satisfaction)........................................................................29
Appendix 5 (Ocean Customer Satisfaction).........................................................................32
Appendix 6 (Infographic).....................................................................................................35

2MEASURING MARKETING EFFECTIVENESS
EXECUTIVE SUMMARY
The purpose of the report was to evaluate the effectiveness of the marketing measures
adopted by Hondz which provides powerboat services to their consumers. The data set
provided had been analysed and the results suggested that Hondz lack in marketing strategies.
They have not emphasized on their marketing aspect which is the reason that they had lost
their potion of market leader. The organization had been the market leader with majority of
the share in the market but the analysis show that the organization has lost their market share
and their relative market share had decreased significantly in the past year.
INTRODUCTION
This report has highlighted the ways of measuring the effectiveness of marketing
strategies for Hondz, which provides powerboat charters for travelling to the isle of wright.
The island is one of the most attractive tourist spots which consists of holiday resorts and
business hubs. Powerboat is the fastest option for the consumers but can be used by only four
people can travel at a time. Even though, this market had existed for a long period, the
companies have started using product differentiation as a strategy to add value for the
consumers. The given case study has identified three primary competitors in this market
segment and are named as Hondz, Riderz and Ocean. However, the major focus of this
research is on Hondz where the owner of the company has provided with data sets consisting
of data for the past three years. The datasheet consists of sales data and consumer data which
has been evaluated to provide the business owner with clear idea about the performance of
the company. The study has also thrown light on the possible measures that should be
adopted by the company to increase their sustainable competitive advantage in the market.

3MEASURING MARKETING EFFECTIVENESS
FINDINGS
Performance analysis of Hondz
Total trips in the last three years
Figure 1: Total trips
(Source: As created by author)
The data collected shows that the number of trips were highest in the year of 2016
compared to the other two years. This shows that in the company had been effective in
developing their marketing strategies in the year of 2016 as they have been able to draw more
number of consumers from the target market. However, there is a steady decrease in the
number of trips in the past one year which indicates various possibilities such as increase in
market competition, decrease in effectiveness of the marketing strategies and change in
market trends.

4MEASURING MARKETING EFFECTIVENESS
Total revenue in the past three years
Figure 2: Total revenue
(Source: As created by author)
The above data clearly shows that the revenue generation of the organization has
decreased significantly in the past year. The number of trips were higher in the year of 2016
which has increased the revenue of the organization. This clearly indicate the organization
has not been able to keep up their steady growth in the year of 2016 and there has been steep
decrease in their market growth. This can be identified as a major issue for the organization
as they are losing their grip on the market which would hamper their long term sustainability.

5MEASURING MARKETING EFFECTIVENESS
Marketing cost in the past three years
Figure 3: Total marketing costs
(Source: As created by author)
This line graph clear shows that the marketing cost have decreased steeply in the past
year and this has affected customer retention. This defines the direct relationship among
marketing efforts, revenue and total trips. The company has significantly reduced the
marketing efforts of the company which is reflected on the revenue generation and the
number of trips. Marketing is not effective for Hondz in the current scenario and the company
needs to invest more in their marketing strategies in the upcoming years in order to increase
their share in the market.

6MEASURING MARKETING EFFECTIVENESS
Operational cost in the past three years
Figure 4: Operational cost
(Source: As created by author)
The operational cost of the organization has also decreased in the past year only due
to the fact that the number of consumers and trips have decreased which has decreased the
operational cost of the organization for every consumer. The decrease in the consumer base
in the past year have decreased the overall expenditure of the organization.

7MEASURING MARKETING EFFECTIVENESS
Net profit in the last three years
Figure 4: Net profit
(Source: As created by author)
The graph clearly shows that the net profit in the year of 2016 is £28,150.00 which is
the highest for the company in the past three years. However, there is not much significant
difference in the net profit for the organization as the cost incurred was also high in the year
of 2016 as there is a fixed cost of £550.00 for every consumer. The net profit in the year of
2015 was £24,150.00 and £22,100.00 in the year of 2017. However, the decrease in the net
profit is the organization is a major concern.

8MEASURING MARKETING EFFECTIVENESS
Customer profitability
Figure 5: Customer profitability
(Source: As created by author)
The customer profitability shows that the company has made maximum profit in the
year of 2016. However, the most shocking fact is that the organizations’ customer
profitability in the year of 2015 is higher than in the year of 2017. This means that the
company has made maximum profit from the consumers in the year of 2016. This is the
difference between the cost and revenue generated in order to develop customer relationships.

9MEASURING MARKETING EFFECTIVENESS
Profit in the last three years
Figure 6: profit percentage
(Source: As created by author)
This pie chart represents the percentage profit of the organization in the past
three years. The profitability percentage in the year of 2015 and 2016 have only 1%
difference which shows that the organization was able to increase their net profitability by
1% in 1 year. However, the profitability decreased by 6% in the next year which shows a
drastic negative change and it is key to improve their optimal profit percentage for
sustainability.

10MEASURING MARKETING EFFECTIVENESS
Year on year growth
Figure 7: Year on year growth
(Source: As created by author)
The year on year growth of the organization was 35.37% in the year of 2016 which
shows that year on year growth of the organization was quite high. However, there has been
steep decrease in the year on year growth of the organization from 2016 to 2017 which shows
33.79 % decrease in growth. The organization is almost facing a crisis situation and
comparison of the business volume in the past and the present year shows the steep decrease
in business.

11MEASURING MARKETING EFFECTIVENESS
Hondz Customer type
Figure 8: Customer Type
(Source: As created by author)
This shows that majority of the customers are private consumers where 84consumers
belong to the private group category and only six consumers belong to the business group
category.