MRKT20052: Marketing for Managers Term 1, 2017 Assessment Item - 2 Lecturer: Mr. John Jackson Tutor: Mr. Brenton Price Prepared by: MOHAMMED FARHAN FASI Student Number: 12025448 Executive Summary The marketing and competitive environment of Central Queensland University (CQUniversity) has been presented here is the form of a report with a point of view of a marketing manager. The report analysis the current market and summarises it along with the demand assessment. This report then goes on to identifying the segments the university caters to and its target market. Marketing mix analysis has been performed utilising the four P approach to understand how the University positions itself. PEST analysis then explains the various factors that can affect the performance and business of CQUniversity. Through the competitive analysis, the closest competitor has been identified and through SWOT analysis the strengths, weaknesses, opportunities and threats have been identified. Finally, through the understand of the value proposition of University and then researching the news for the brand positioning was identified.   Table of Contents Executive Summary: 2 Introduction 4 Organisation Description 4 Market Summary 4 Demand Assessment 4 Segmentation and Target market 5 Marketing Mix Analysis 6 PEST Analysis 6 Political 6 Economic 6 Social 7 Technological 7 Competitor Analysis 7 Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis 8 Strengths: 8 Weaknesses: 8 Opportunities: 8 Threats: 8 Value and Brand Positioning Analysis 8 Conclusion 9 References 10   Introduction This is a report discussing the marking and competitive environment of Central Queensland University. Organisation Description Central Queensland University Australia (CQUniversity) is one of the largest regional Universities in Australia (About CQUniversity, 2017). CQUniversity has 25 Campuses across Australia including a few study centres. With over 30,000 students the University offers over 300 courses/certificates/degrees in faculties such as Business, Accounting and Law, Education and Humanities, Psychology, Social Work and Community Services, Science and Environment, etc. (About CQUniversity, 2017). According to a data released in 2013 by Graduate Careers Australia (GCA) CQUniversity has a full-time graduation rate of 81.1% (Bruce Guthrie, 2013). Market Summary Australia has 43 universities, which includes two international university and a private specialty university (Government, n.d.). Over 120,000 staff is employed by the Australian universities with over $140 billion added to the country’s economy in 2014 (Belinda Robinson, 2017). In the data snapshot released by Universities Australia, over 1.3 million students, national and international, were educated through Australian universities (Belinda Robinson, 2017). This also shows that the market serves not only to national but also international as approximately 370,000 enrolled students were international. The international student education is Australia’s third largest export and the number one services export, accounting to $21.8 billion a year (Belinda Robinson, 2017). With the demand in qualifications and the changes in regulations requiring qualifications for certain employment opportunities, the aged group of 25-34 years now have 37% of them holding a bachelor degree or higher (Belinda Robinson, 2017). Demand Assessment In 2013, according a report by Universities Australia, approximately 1.3 million students enrolled in university (Deloitte Access Economics, 2015). In 2015, the number grew to 1.4 million according to the data points released by Universities Australia in a different release (Belinda Robinson, 2017). With the calculation, there was an approximately 8% increase in the number of students enrolled with a two-year gap. If we keep the percentage increase stagnant and not taking into consideration a possible increase, we can estimate the student enrolments to go up to over 1.5 million in 2017. With the increase in numbers the revenue generation can also be expected to increase. Segmentation and Target market CQUniversity has its presence across Australia, including regional Queensland and other major cities such as Melbourne, Sydney, Perth, Adelaide, Brisbane, etc. The university consists of students from all cross Australia and international who are looking for high quality education with a cost-effective investment. There are four major course types the students can enroll into, namely: Vocational Education and Training, Undergraduate and non-award, Postgraduate coursework, and Research higher degree. The university has access to markets in different cities of Australia through its campuses and its presence in major cities boasts high opportunity for attracting international students on its shores. According to their website out of the 21,944 students they enrolled in 2016 5,107 were international. Tables below show the demographic, psychographic and behavioral variables affecting the university as a choice for higher studies. The students can choose from different modes of learning from campus to distance (Flex) and can chose from different course types and make use of around 40 exchange programs. Variable Specification Age 18-34 Gender Male and Female Education High school or above Citizenship Australian or otherwise Demographic segmentation Variable Specification Lifestyle middle class, higher, and wealthy class Personality independent, future concerned, self-confident Psychographic segmentation Variable Specification Knowledge of product above average to high attitude towards the product positive response to the product average to positive Behavioral segmentation Marketing Mix Analysis Product Vocational Education and Training Undergraduate and non-award Postgraduate Coursework Research Higher Degree 300 courses/programs Price Mid-range education provider, compared to universities and colleges providing similar qualifications Place 25 Campuses including study centers Major cities, such as Melbourne, Sydney, Adelaide, Brisbane, etc. 40 Exchange agreements over 100 countries Promotion Scholarships and grants for incentivise the students to do well. PEST Analysis This tool allows the chancellor, president, management and staff to make informed decision about the future finance, planning, and management that are impacted by political, economic, social and technological changes. Political • Government policies, that request drastic changes to the policies and procedures that impact the university’s activities. • Universities being overtaken to be run by the government. • Changes in immigration laws affecting intake of international students. • Regulations around management and finances. Economic • Funding decisions by the shareholders that may have positive or negative impact. • Restrictions on the fee structures. • Change in costs of resources, such as technological infrastructure, human resource, real estate etc. • Interest rates. • Increase in number of areas in the same geography and segment, resulting in competition, • Risk of move of important staff which was highly involved in the growth of the university. Social • Drastic changes in population. • Changes in the demography, resulting in increase in diversity. • Changes in employment opportunities encouraging pupil to enrol in an area with better scope. • Effects of Social Media. • Changes in qualification expectations. • Underqualified staff. • Globalisation of information. Technological • Update in the standards requiring change in infrastructure. • Opting the right technology that is effective now and in future. • Network security. • IT maintenance, upgrade or downtime. Competitor Analysis As with any industry, all the universities compete with each other to get as many students on board as possible and the best quality. Due to the University having its presence across different cities CQUniversity competes with a lot of major universities. An analysis of the industry keeping CQUniversity at the centre of it suggests that the direct competition to CQUniversity is University of Southern Queensland. Both universities have their head offices in Queensland and are competing with each other on the aspects such as the students in undergraduate, post graduate and distance learning programs. These Universities are competing to acquire the share of international students. The competitive environment between Universities is tough, but with the expansion that Central Queensland is showing and initiatives such as exchange programs are worthwhile investments for the university. For example, CQUniversity started a campus in Townsville, which though has James Cook University as its competitor, this was a move to provide its distance students access to its facilities to compete with the likes of University of Southern Queensland and Deakin University who are the major competitors in distance education for CQUniversity (RAGGATT, 2014). Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis The SWOT analysis with respect to CQUniversity has been performed below: Strengths: The extensive geographical presence of CQUniversity is its greatest strength. The university is also one of the most inclusive and engaged universities (About CQUniversity, 2017). According to the Times Higher Education’s World University Rankings, CQUniversity is regarded among the top two universities and under 100 in its Young University Rankings (Times Higher Education, 2016). Weaknesses: With regards to the weakness of the CQUniversity is the perception that it is not as good a University as the top runners. The university has one of the worst completion rates according to the 2009 cohort at 42.5% (Training, 2015). Lecturer to student ratio during lectures. Opportunities: Enhance the brand image of Central Queensland University, to improve the perceptions nationally and internationally. Capitalise on the geographic presence and improve the number of enrolments. Capitalise on the resources available to improve the graduation rate by tracking the performance of students at regular intervals. Threats: Biggest threat is the resource pool of competitive universities. Mismanagement of the number of campuses. Negative effects of low graduation rate. Increase in competition and inexpensive providers offering similar qualifications. Restrictions of government funding to help students from under privilege backgrounds may affect the industry overall. Value and Brand Positioning Analysis Central Queensland University, runs itself on the values such as Engagement, Leadership, A ‘Can do’ Approach, Openness, and Inclusiveness. The value analysis shows that the university is looking to promote itself as a people’s university. The values don’t really differentiate in terms of the educational or financial aspect but more of emotional modifiers. According to a recent report by the Sydney Morning Herald, CQUniversity has a satisfaction rate of 80.9%, which suggests that the students are satisfied by the quality of education through this university (Knott, 2017). The University also broke into the top 100 of the Young University Rankings of The Times Higher Education (Times Higher Education, 2016). These are positive signs for the Universities brand name and helping it move closer and closer to the top universities. Conclusion The research demonstrates that Central Queensland University, has the largest geographical footprint across Australia. The university is also gaining numbers in the way of international and distance learning students. With the view of the future the university should focus primarily on the graduation rates and towards improving the perception in the market. With ever increasing demand for education CQUniversity has great opportunities ahead.   References About CQUniversity. (2017, 04). Retrieved from CQUniversity Australia: https://www.cqu.edu.au/about-us/about-cquniversity Belinda Robinson. (2017). Key Facts & Data. Deakin: Universities Australia. Bruce Guthrie. (2013). AUSTRALIAN GRADUATE SURVEY 2013. Melbourne: Graduate Careers Australia Ltd. . Deloitte Access Economics. (2015). The importance of universities to Australia's prosperity. Universities Australia. Government, A. (n.d.). Universities and Higher Education. Retrieved from Future Unlimited, studyinaustralia.gov.au: http://www.studyinaustralia.gov.au/global/australian-education/universities-and-higher-education Knott, M. (2017, April 12). Revealed: Australia's most and least satisfied university students. Retrieved from The Sydney Morning Herald: http://www.smh.com.au/federal-politics/political-news/revealed-australias-most-and-least-satisfied-university-students-20170411-gvibbd.html RAGGATT, T. (2014, August 16). Universities in turf war as CQU confirms Townsville CBD base. Retrieved from Townsville Bulletin: http://www.townsvillebulletin.com.au/news/townsville/universities-in-turf-war-as-cqu-confirms-townsville-cbd-base/news-story/f36100370035cc8780bea2e8a4a8a777 Times Higher Education. (2016, March). World University Rankings 2015-2016. Retrieved from Times Higher Education World University Rankings: https://www.timeshighereducation.com/world-university-rankings/2016/world-ranking#!/page/5/length/100/sort_by/rank/sort_order/asc/cols/stats Training, D. o. (2015). Completion Rates of Higher Education Students- Cohort. Australian Government, Department of Education and Training.