MRKT20052 – Marketing for Managers Assessment 2 Analysing the Marketing and Competitive Environment of a University Brand Student Name : Agnel Savery Andoniradji Savery Student Id : 12033311 Submitted to : Mr. Sultan Parves (Unit Co-ordinator) Table of Contents ⦁ Executive Summary …………………………………………………………………………………………. 3 ⦁ Background ……………………………………………………………………………………………………… 4 ⦁ Situation Analysis……………………………………………………………………………………………… 4 3.1 Market Summary………………………………………………………………………………………… 4 3.2 Market Demography…………………………………………………………………………………… 4 ⦁ Demand Analysis ……………………………………………………………………………………………… 4 ⦁ Market Segmentation………………………………………………………………………………………. 5 5.1 Target Market Strategy ………………………………………………………………………………. 5 ⦁ Marketing Mix Analysis …………………………………………………………………………………… 6 ⦁ PEST Analysis …………………………………………………………………………………………………… 7 ⦁ Competitor Identification and analysis ……………………………………………………………. 7 ⦁ SWOT Analysis ………………………………………………………………………………………………... 7 ⦁ Value and Brand Positioning Analysis ……………………………………………………………... 8 Conclusion …………………………………………………………………………………………………….... 9 References ………………………………………………………………………………………………………. 10 ⦁ Executive Summary The Marketing environment of a firm is one of the important factors for the growth of the company. Even a well established Organisation can be lost in the market if it fails in marketing. Establishing a firm and growing it all aspects to reach its ultimate goal requires professional skills and proper management. If this is the case for industries, well what about a University. This report provides a brief information on the Marketing strategies and the market environment of a University brand. The University is RMIT and the competing University is the Swinburne University. This report contains detailed information starting from the Background of the University to the marketing analysis including marketing mix, SWOT analysis, PEST analysis and its potential growth over the last few years. Strategy of RMIT University RMIT’s Strategy Plan, Ready with career and Work, sets the goals and directions by which the institution proposes to mold its future. The Vision of RMIT A comprehensive academy of automation, form and entrepreneurship. Mission of RMIT RMIT exists to plan transmuting experiences for the students, confiscating them warm up, inveterate and work, and to help forge the area with analysis, deviation, coaching and engagement. RMIT illuminates the task of lengthening the benefits of a fast-innovating, high-skill grasp care to our wholesome neighbourhood and our realm. ⦁ Background RMIT University Royal Melbourne Institute of Technology was founded in 1887 as a private evening school which provides education in art, science and technology by Francis Ormond. In 1992 after merging with Philip Institute of Technology, it was made a public university. According to the Annual report for the year 2015 by RMIT, the university has grown enormously with 83,025 students and with an endowment of 1.163 billion yearly. This makes RMIT University, the richest universities in Australia. According to the THE and QS ranking for RMIT, it backs 16th in the world for art and design and top 50 universities under 50 years old. ⦁ Situation Analysis RMIT is a well established Universities in Australia, it is important to assess the internal and external environmental market situation to develop a stronger marketing plan. This market summary will provide us with a better understanding of the University position in the market and what needs to be improved in it. 3.1 Market Summary The market summary will showcase us the marketing plan of RMIT University. Market Demography and Demand Analysis are the two topics summarised in the Market Summary section. 3.2 Market Demography RMIT University has almost equal male and female gender students, but RMIT University has a major hike in terms of the student numbers. The total number of international students in RMIT is 46.3% when compared to its total students. This almost contributes to 50% of the University’s total revenue. Whereas in Swinburne its 24.3% only. The revenue stream for Swinburne university from international students is almost same compared to other standard university. RMIT also has a variety of courses available in its multiple campuses. The range of course selection is very high compared to Swinburne University. This works in favour of RMIT when it comes to students who are keen in choosing a specific career for their future. ⦁ Demand Analysis The total market potential of RMIT university is sketched below to provide a detailed demand analysis in the market for the last annual year. The total market potential calculated using the common method is given by Potential no. of buyers x average quantity purchased x times the price The average quantity here is the average tuition fees per subject in each semester and the potential market is calculated annually, so 8 subjects in total (considering 4 subjects per semester) RMIT University Total market potential 83,025 students x 3800$ (average fee per subject) x 8 (subjects for a year) = 2.52 billion per year ⦁ Market Segmentation Market segmentation is an expansion of statistical surveying that helps to identify targeted groups with the end goal of tailoring courses and branding in a way that is appealing to the students. Markets can be segmented into different ways. They are segmented below, including points for a competing University. Behavioural – RMIT University provides a lot of extra benefits for students including FSH certificate classes, HACCP and many more. Student Unions are putting in a lot of extra efforts to help the freshers and also in making them utilise the services provided by them. RMIT on the other side has positive student survey results published on the online survey websites. This makes it a more comfortable university to students studying arts and science. Demographic - When it comes to demographic features, RMIT lead it. RMIT University has equal number of students in terms of gender. The total number of students in RMIT is 65% more when compared to Swinburne University. This gives RMIT University the rise in its revenue as well. Psychographic – Lifestyle in Australia is characterised by the social surrounding and your professional attitude. RMIT university offers a wide range of skill development sessions which not only improves the students professional skills but also their way of living. This makes RMIT University shine both in the academic and also in changing the lifestyle of the students. Geographical – RMIT University’s main campuses is located within a 5 km radius from the city. The radial campus for RMIT is located in Bundoora which makes the students engage in extra curricular activities. RMIT also has fabricated a guidance site in the westward village of Point Cook placed on the Royal Australian Air Force Williams, and a consult site in the Southern Grampians place situated in the rustic city of Hamilton. 5.1 Target Market Strategy The target strategy is selective where RMIT university targets its respective group of students to maintain its academic and financial status. RMIT mainly targets on international students by means of various value added courses and skill developmental sessions. It also aims for the online undergrad students who show a huge interest in the university’s infrastructure and research excellence. ⦁ Marketing Mix Analysis The current marketing mix shows the marketing strategy for RMIT University. But comparing RMIT UNIVERSITY SWINBURNE UNIVERSITY Marketing Mix Elements 2014 2015 Marketing Mix Elements 2014 2015 Year’s Objective Ready for life and work Year’s Objective Gender equality strategic plan Product New Courses have been introduced in the University’s profile. Value added course and full support in recruitment Product Unique method od teaching with affordable price. Practical sessions associated with almost all courses. Place Radial campus for sports and training sites for shaping staff and students Being rated as one of Australia’s wealthiest universities, research centres and training campuses have been opened. Place Separate campuses for arts and science. Less movement from campus to campus. Located in the metro city, this provides more competitive edge Price The tuition fees for courses that are valued for skilled immigration has been decreased Arts and Science courses have been provided with scholarships to domestic and international students Price Less fees in the market compared to other tertiary education providers Reasonable increase in the rate for each subject every year. Promotion RMIT sponsors almost all sorts of special events like beekeeper for fundraising purposes. Scooter tutor application has been introduced to help students Promotion Number of scholarships has been increased seemingly to encourage students to develop professionalism. More student Unions have been established to help students in their personal life. ⦁ PEST Analysis This is an important tool for analyzing the external performance of the university and the ways in which the university is affected. The PEST analysis is explained as below for both RMIT and Swinburne University. Political – The political factor is the influence of the government over the performance of the Universities. Since Australia is a country which provides full support to the education sector and research as well. The state tax policies may affect the Universities financial status. Political instability in a foreign partner foundation could also affect the University. Economic – Australian economy is in its downfall as the subsidiary income of people has declined severely which has resulted in lower domestic student enrollments. But international students are showing a measurable amount of interest in enrolling and studying in RMIT and Swinburne University irrespective of their Country’s economy. But due the international economical growth, the interest rates in banks offering educational loans have gone up. This is one of the important factors affecting the economy of the universities. Social – There are two major points in social analysis. They are Population growth and Shift in educational requirements. Due to the changing professional and corporate environment the students are undergoing a lot of complexities in shaping their career attitude. The Population growth has been immense during the last couple of years and this has affected the job requirements for all the positions in the industry. Technological – The rate of innovation has changed completely nowadays. Most of the industries have automated processes for production and manufacturing and this results in recession of labor workers. Another important point is the changes in technology incentives. Most of the industry owners prefer causal workers over permanent workers because of all the pay connected with the employment like bonuses, annual leave, etc. ⦁ Competitor Identification and Analysis As a matter of fact, RMIT has Swinburne as a competing University in all aspects of academics. It is well established right from the beginning where it shines in the respective fields of research and academic excellence. The University has increasing number of students according to its previous year annual reports and is financially and academically strong. But the important factor to take into consideration is that, there are other universities in the market with the same goal of achieving rankings in academic excellence, research and gaining market shares as well. For instance, La Trobe University is one of the strong competitors for both RMIT and Swinburne University, because it has the same number of overseas student percentage as RMIT and Swinburne and also leads in extra curricular activities compared to the host two universities. It is also one of the top universities preferred by the female students and has a really strong student satisfactory survey results. ⦁ SWOT Analysis RMIT UNIVERSITY Strengths ⦁ Dedicated and expert Faculty ⦁ Foreign Accreditation and Affiliations ⦁ Student leadership programs ⦁ Artistic and cultural performance ⦁ Provide quality education at affordable price ⦁ Support Staff ⦁ Publication of research papers Chartered with HEC Weakness ⦁ Resistance to change ⦁ Leading Competitors ⦁ Lack of understanding at many facts ⦁ Location Inadequate resources for recruitment, retention, and marketing Opportunities ⦁ Growth Potential ⦁ New Constructions ⦁ Introduction of new specialization to attract wider customer segment ⦁ Strong collaboration with MNC’s and local companies International Scholarship Threats ⦁ Development of another university in the area ⦁ Emergence of new business schools and universities ⦁ Political and Socio economical conditions Negative public perception ⦁ Value and Brand Positioning Analysis The brand positioning is nothing but, the value proposition which is placed within the context of the market landscape. The core definition of every university often boils down to these two – Value proposition and positioning. RMIT University offers various benefits to students when it comes to value. RMIT stays one step ahead in the field where it not only provides value but also helps in casual jobs to students in the line of teaching. Being a graduate is the only asset which shows that a person is distinct and literate compared to the rest of the society. Like wise lasting long in the tertiary education industry is also a great accomplishment which RMIT University has been seemingly performing over the past years. Conclusion Therefore, to sum up the report with a conclusion based on the analysis performed, RMIT University is one top university which provides excellence in all aspects of study and services in tertiary education. Also in the near future the University will undergo immense growth and establish a strong fold in the market for international students in Australia. 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