2930

1: Find Abacus information on Abacus website:

AIS was founded in 2010 in Christchurch. AIS is NZQA approved private training and
education provider, currently, the institute has three campus bases; Christchurch ,
Hasting, and Auckland. AIS offers industry-oriented business and management diploma
program at level5, 6 and 7. AIS is committed to provide quality business and
management education to its students and transforming its students into creative
proactive and affective professionals or entrepreneurs.
In 2012 centered evolution conducted by NZQA, AIS was rated as category A institute.
Recent students indicate 100% student satisfaction and more than 95% student
progress rate with AIS.

2:
Product/Service Description
In terms of product/service, AIS offers the following programs:
Program Description
Certificate in general English
(level-1 to 4)

AIS offers four levels of general English program
ranging from level -1 to level-4. Each level is worth 40
credits and can be completed in 12 academic weeks.
National Diploma in Business
(Level-5)
It is a nationally recognized qualification, developed by
the institute and approved by New Zealand
Qualifications Authority (NZQA). The course has been
carefully structured and designed to meet the needs of
students wishing to study Business & Management. The
National diploma in business level 5 is a sub-degree
course to be completed over one academic year of full-
time study or equivalent part-time study. The course
leads to a broad based Business and Management
qualification that will qualify students for entry level
careers within a range of industries that requires people
with the knowledge and skills in business and
management areas. It also prepares you for entry into
further university and other tertiary level studies. The
subject which teaches in this course as follows
Marketing, Law, Economics, and Accounting.
National Diploma in Business
(Level-6)
It is also approved by the NZQA based on the level 5
course. This course meets the need of students wishing
to study Business & Management. The NDbl-6 is a
diploma program to be completed over one academic
year of full-time study or equivalent part-time study. The
course leads to Business and Management qualification
that will qualify students for entry into a wide range of
careers across various sectors that requires people with
the knowledge and skills in business and management
areas. It also prepares students for entry into further
university and other tertiary level studies. The courses
are marketing, law, Economics, Management.
Diploma in Business &
Enterprise (Level-7)
Level 7 has been designed in response to industry
requests for a course that will produce professional
individuals with a sound knowledge of business
practices. The aim of this course is to prepare students
for the business marketplace and a career in marketing
with an understanding of marketing management theory
and practice. Students will be introduced to the
principles of marketing, and through case study analysis
and real world examples, will learn how to apply these
concepts to address problems and opportunities facing
New Zealand marketers, both domestically and
internationally. This program is a multidisciplinary one
and covers a range of business areas. Specializations
include buyer behavior, market research, and marketing
Communications, marketing management, generic
marketing, public relations, and marketing strategies.






3.0: Objective: The following are the organizations marketing objectives AIS aims to
achieve.
3.1: Organization objectives:
To increase the revenue by 100% in the next 3 years.
To be among the top 20 PTEs (Private Training and Education) in NZ in the next
3 years.

3.2:
Marketing Objectives:
To increase the student conversion rate from 5% to 15% in the next 3 years.
To increase the number of inquiries by 100% in the next 3 years.
To increase the market share by 20% in the next 3 years.
4.0: Target Market
4.1: Market characteristics and opportunities:
The following table highlights the characteristics of the market AIS is operating in:
Market structure: fragmented structure- many small and few large players
Market size/growth: NZ education industry dollars billions
-100,000 international students come to NZ for studies
-The industries has been growing at the rate of 5% per year and its expected to grow
further by 9% per year.
Profit potential: market is at its growth stage and offers a high profit potential.
Opportunities:
In this type of market scenario, AIS has some of the following market opportunities.
-geographic expansion in NZ and/or overseas
-introducing new programs to attract a wider group if customers/ or potential students.
-penetrate into the existing market and gain a large market share.
-diversifying the business portfolio into other related or unrelated growing industries.

4.2:
Target market and demand:



4.2-
Target market and demand
AIS has two target markets 1) India and 2) Domestic.
The following provides the assessments of current and future demand in there two
target market.
1) India: India is the 3
rd
biggest international student market in NZ, after China and
South Korea.
The following shows the demand or trend of Indian students in NZ
Year 2007/08 2008/09 2009/10 2010/11 2011/2012
Number 5688 7938 8778 10189 9039
Percentage
Change
Increased
by 40%
Increased
by 11%
Increased
by 16%
Decreased
by 11%
Average
Percentage

Future
Demand


4.3:
The following table shows the target market that AIS will need to achieve to meet its
organizational and marketing objectives.
Organizational objective: To Increase the revenue by 100% in the next 5 year
Targets
Year-1 Year-2 Year-3 Year-4 Year-5
20%+ 20%+ 20%+ 20%+ 20%+
Marketing objectives:
To increase the student conversion rate (CR) by 50% in the next 5 years.
To increase the market share (MS) by 20% in the next 5 years.
Targets
CR10%+ CR10%+ CR10%+ CR10%+ CR10%+
MS 4% MS 4% MS 4% MS 4% MS 4%

5.0: Situation Analysis
5.1.2: Marketing strategies and impact on profit:
We will talk about 4 Ps in this.
The following table shows AISs selected marketing strategies and their impact on
AISs profit.
Strategies Impact upon profit
Product Strategy: In product strategy it
covers mainly the courses which are in
AIS such as National Diploma in business
level-5,6 and 7.On the other side there are
more English courses which is also teach
in AIS and of these courses are approved
by NZQA.
The major Impact of these courses are
that AIS has only same type of courses
which are also teaches in other PTEs.
Due to this AISs profit margin is limited.
Pricing Strategy: In this strategy all the
PTEs has the same cost of the prices
therefore there is no hardly any price
different. So its follows the status Quo
which means it is less aggressive because
prices are mainly equal.
With the help of status quo it can avoid the
direct competition on but it will helps to
maintain the profit and cut down the
unnecessary cost.
Place Strategy: This strategy plays an
important role in marketing mix, AIS is
going good in this strategy. Now AIS have
three different branches in NZ, recently
one of the branch open in Auckland.
There will be major impact of this strategy
as well because this will use more
resources and there are expanding wide
range. To cut down the cost of these
resources AIS need to start some new
level courses.
Promotion Strategy: this strategy mainly
describes the promotion of the AIS which
can be done by various types are as
follows seminars, word of mouth will also
help to promote AIS. Social media (Face
book) and collaborative agents will play a
good role in this strategy.
The promotion of AIS has not up to the
mark because they are limited in
promotion, As they dont have advertised
in media or local newspaper. Overall these
promotion tools help to get more in
students.


5.1.3
The following table shows the current marketing activities and how they contribute to
AIS market share and rate of market growth:
Marketing Strategies Contribute to market share /rate of market
growth
Rating (1
10)
Collaboration with
educational agents : With
help of oversees
consultants AIS is getting
decent number of students
which are coming to NZ.AIS
has made great range of
network in overseas with
This strategy helps a lot to AIS in term of
getting more students to NZ because AIS
started with five students and they only have
one campus in Christchurch in 2010.Now
AIS, spread into three big cities Auckland
and Hasting and they have got decent
number of students as well in both of the
campus.



10
the agents .Agents gets
there commission to send
the students overseas.
Student Seminar: AIS do
international and national
seminars, In which they tell
about their courses and
how to get admissions.
In this case AIS is not contribute with market
share and rate of growth because seminars
are not mainly for selling it is just as
spreading of awareness among the students.

5
Word of mouth: AIS has a
great word of mouth in
terms of student
satisfaction, there quality
and AIS is also Awarded as
number one category by
NZQA.AIS has built a great
reputation in locally and
internationally.
The contribution of the AIS in terms of
market share and rate of growth Is not great
value locally, but it helps AIS to get decent
numbers of students.

7

By looking the above table we will find out the AIS is least in seminars they have to work
more in this strategy. On the other hand AIS is good in collaboration with educational
agents because they in terms of rating it have been rated as 10/10.

5.1.4
The following table shows assessment of AISs marketing performance against the
marketing strategies, and provides evaluation as to the extent to which these strategies
help in meeting AISs objectives:
Current Marketing
Strategies
Market Performance
Outcome
Extent to which objectives
are meeting (Rating 1 10)
Product Strategy: In this
category it covers the
quality of the course and
there is not wide range of
product.
Gross Profit: lack of
variety of product which
show slow market growth
and limited profit.
Student satisfaction: it
covers student satisfaction
are they happy or not and
AIS have to come with
course quality.



6
Price Strategy: In this case
we have followed on the
status quo price stability.
Gross Profit: bounded
growth and profit became
Student satisfaction:

5
Place Strategy: great Gross Profit: open of new
exposure value and build in
big cities.
campus in Auckland
approaching to have more
number of students which
will have high profit and
growth value.
Student satisfaction:
Providing the flexibility in
course make the student
more satisfaction.



8
Promotion Strategy:
There are number of ways
to promote AIS word of
mouth ,social media (Face
book)and Collaborations
with education agents
plays an important part in it.
Gross Profit: looking word
of mouth and social media
they are helpful in getting
success to AIS as well
having a great reputation in
local market.
Collaborations with
accepted agents bring more
profit.
Student satisfaction:
Providing the material what
they told by the agents also
introduces more come in
students to AIS.
Word of mouth brings
decent number of students
by hearing a positive of
AIS.









9


5.2.1:
Market position and competition
The following discussion evaluates the market for specific products/services offered
by AIS in terms of their current competitive position and market attractiveness.
Competitive Position: Product portfolio analysis has been applied to look at what
product make up AIS business and how well these products are positioned in the
market. This analysis uses two axis. Vertical axis refers to the market growth rate
and the horizontal axis refers to the market share.
(STARR)

Level-5 and 6



(Question Mark)

English Courses-Level-(1to 4)
Level-7
(Cash Cows)

None

(Dogs)

None


QUESTION MARKS: Question Marks are the products or business that operate in
high growth market but have a very low market share. The international market in
NZ is growing at the rate about 6-8% per year which is reasonably good given the
current state of the tightening global economy. At present, AIS's English language
courses and the new level7 diploma fall into this category. because the level-7
diploma AIS just started, with proper strategy and planning it can be moved to the
star category. However, for the past 3years AIS has enrolled not even a single
student in its English courses. Therefore, AIS should consider divesting from this
particular product and find better opportunities to boost the market performance
level-7 program.
STARS: Stars are the product of the businesses that are performing well n a
growing market. In case of AIS, the level-5 and 6 programs have a decent number of
the students across all campuses. Stars sometimes do not generate a positive cash
flow and often require time-to-time investments to keep up with the performance and
to further improve the profits. The numbers are however decent, and can be
improved by investing more into the marketing activities to promote these courses.
CASH COWS: Cash cows are those products or businesses that maintain a high
market share in a low growing market. Cash cows often produce a lot of cash and
provide opportunities of harvesting the products falling into this category. Moreover,
a company does not need to invest heavily on cash cows because the market is not
growing. Currently, none of AIS's products fall into this category.
DOGS: These are the businesses that have the weak market share in a low growth
market. Such products or businesses often lead to losses. In this case a complete
exit or liquidation can be considers. Currently none of the program offered by AISs
fall into this category.
Summary: Above analysis shows that AIS has two star products, and two question
marks, which is the level-7 program, is a new program that has just started. Level-7
is likely to evolve with time and has plenty of market and growth opportunities, and
therefore can more over to the star category with effective marketing planning and
strategies in place. English courses are the only area that AIS should get out of as
those programs are not generating any profits rather they are incurring loss to the
business. Overall, above analysis shows that the competition position of AISs
product in fairly good.
Market Attractiveness: Market attractiveness for the AIS product can be evaluate
in terms of looking at the market growth potential and product adoption. This has
been done by using the life cycle model, as discussed below:
The life cycle model has four stages:


Introduction Stage: At this stage, the market is at introduction stage and there are
hardly any buyers. Customers need to educated and aware of the offering, which
requires a lot of marketing efforts and budget.
Growth Stage: Growth stage refers to a period of rapid market growth, product
acceptance and increasing profits. Sales and competition is usually high in this stage.
Maturity Stage: It is a stage of slow down because there is no more room for the
growth in the industry. Sales volumes are at peak and more competitors are entering
the market. Differentiation is emphasized to keep up with the market share.
Decline Stage: In this stage the sales decline shortly and profits are diminished.
Maintaining profits becomes a challenge rather than the distribution or sales.
International student market in NZ is currently a dollar billions industry which is as its
growth phase. The market is growing at the rate 8% per year and it's expected to grow
faster over the next 3-5 years. There is enough time in the life cycle to payback the
investment and earn decent profits. Overall, the market is big enough growing at a
decent rate and has a plenty of growth and profit potential. Hence, the above life cycle
analysis shows that market is attractive for the AIS's products/services. However, being
at the growth stage, there can be more competition in the market. In order to lead the
competition and grow, AIS will need to focus of reputation, differentiation, quality and
continuous innovation in terms of its products, processes and service.
5.2.2:
Competitive analysis :
Parameter University Polytechnics PTEs AIS
Quality and education High Moderate/high Moderate Moderate
Price/fee High Moderate Moderate Moderate
Research and
development
High Low Low Low
Business/infrastructure Large Moderate/large Limited Limited
Market share/.growth 5% 15% 80% Less than
1%
Course variety high Moderate/high Low Low
Easy to-entry difficult moderate Flexible Flexible

AIS has three type of competitors 1) Universities 2) Polytechnics 3) PTE's
The following provides a brief description of these three:
Universities: There are 8state funded universities in NZ. Although most these
universities offers undergraduate diploma or certificates programs, the major emphasis
is on research and development at degree programs. Universities have large
infrastructure and large resources. The major weakness of universities is tough entry
criteria and lack of flexibility. In NZ, about 200,000 students are in their 8 universities.
23% of these are the international students and this makes up to 5% of the market
share in the international student market.
Polytechnic: There are 40 polytechnics in NZ. They have their market presence all
over in the country. Most of these polytechnics offers industry oriented occasional
courses. Also majority of the polytechnics offer program under the national framework.
All together, the polytechnics in NZ have 15% of the market share of the entire
international student market in NZ.
PTE's: There are about 450 PTE's operating all over NZ. These PTE's offers a large
variety of courses. Some of these courses are general and some these courses highly
specialized, which are difficult to find out in universities and polytechnics. All together,
the variety of the courses offered by these PTE's is much higher than universities and
polytechnics. However, at the individual level a single PTE does not have that kind of
infrastructure and resource capability to run a wide variety of program. This is one of the
major weaknesses of polytechnics when it comes to the courses variety at individual
level. PTE's has the large share in the international student market which is about 80%.
The following table provides an assessment of AIS's competition in the market
segments, and also shows AIS's relative position against the competition.
The above discussion on the competition, and the assessment of the competition
indicates that, AIS does not have any direct competition with universities and
polytechnics. The main reason behind this is, these institutes are government funded
and have huge infrastructure over resources, which are difficult to match APTE like
AIS's. it will be reasonable to say that not all the PTE's are AIS's direct competition,
because not all PTE's specialized into business programs. There are about PTE's in NZ
who offers similar business program like AIS these are AIS direct competitors. The
above assessment also shows that AIS has little or no room to differentiate itself from its
competitors.
Impact of the competition on AIS marketing strategy:
Strategy Impact
Product : Focus product development and
differentiation.
: Build on quality and reputation.
Price : Maintain status quo.
: Competition based pricing.
Place : Focus penetration into the domestic
market.
: Grow and exploit collaborative
relationship with overseas agents.
: Introduce e-learning platform to reach
wider market
: Build on point marketing efforts to
expand in the market and gain more
market share.
Promotion : Build strong relationship with media and
press.
:Run seminars at the local and
international level with collaborative
arrangements.
:Continues to collaborative relationships
with agents.
:Use social media to engage with local
community.

5.3 External macro-environment
5.3.1 The following table examines the macro external factors for their impact on AISs
marketing strategies:
External Factor Impact on AISs marketing strategies
Social: New Zealanders have a way of life
thats similar to most Western countries,
but there are some special characteristics.
Kiwis are passionate about sport and have
a firm belief in social equality
Social activities ,course varieties and
curricular activities
Economic: The rate of employment is
growing 3%per year which seems to be
greater sign for New Zealand and although
its going to recover soon.
Collaborating with market makes the
stronger work relations and help to expand
the business
Demographic: Due to the encouragement
of immigration, NZ is becoming multi-
cultural country with different life styles.
Some of the people from overseas are
very likely to improve their skills and look
for better education
Mixing in the local market and offering
them different course varieties
Culture/Ethnic: NZ is a typical English
country as most of its population comes
from UK. Maori and Pacifica are also
deeply ingrained cultural element of NZ.
Other than these core culture, NZ has
developed several other sub-culture due to
Build market presence that fits with the
cultural aspects, through course variety,
collaboration and community engagement.
immigrants moving in from various ethnic
groups.
Natural: NZ has a green, clean and
unpolluted environment with plenty of
natural resources.
Building on NZs green image in the
international market and translating this
image into the course quality and nature,
pricing structure, promotion and
placement.
Political: NZ is a democratic and
politically stable country that has very
positive trade relationship with majority of
the countries worldwide. NZ has 99% of
the business freedom and 85% of trade
freedom.
Expanding vertically and horizontally into
the local market, and targeting more
international market other than India, with
quality program and strong collaborative
networks.
Legal/Regulatory: Strict legal requirement
set under the consumer generate Act 1993
and also the Fair trading Act 1986. Rigid
compliance require with the regulatory
bodies like NZQA and NZIS.
Ensuring that all the marketing mix
element comply with the legal framework
and regulatory bodies, and this should be
exercised and be rejected in terms of the
course context, pricing structure , nature
type of promotion industry the message
and also the placements while
collaborating with the agents overseas.
Technology: Rapid shifts and
development in technologies and web
capabilities are leading into e-learning
platforms.
Embedding the e-learning technology into
the existing physical marketing mix, such
that the business gets more reach and
market potential.
Competition: High competition among
PTE's and higher bargaining power of
buyers. Some direct or indirect competition
from universities and polytechnics.
Marketing mix should be distinguishable in
such a way that it creates differential effect
when it comes to the brand awareness
and knowledge. Continuous innovation will
be the key in terms of developing unique
programs pricing models and promotional
mix.

5.3.2:
In light of the above analysis, the following are the critical success factors for AIS in the
intended market:
1) Building a strong industry brand reputation.
2) Unique and industry-led program and more variety.
3) Compliance and consistency with all the NZQA government bodies.
4) Collaboration and building strong networks locally and overseas
5.4: Key Issues:
5.4.1: The following discussion analysis of AIS's marketing resources utilize industry
assessment of any resources issues for their support upon AIS's strategies marketing
position:
In tubular form:
Strengths-
Reputed and well established brand
Rated a category-PTE by NZQA
State-of-the-art campuses and
learning facilities
Highly experienced staff
Consistent in student numbers
across all campuses
Strong collaborative arrangements
with education agents overseas
Weaknesses-
Narrow target market focus (only India
at present)
Limited course variety
Being a relatively new set up, it does
not have massive resources to fund
large scale strategies (e.g., having a
wide course variety, running heavy
promotions)
Opportunities-
New course development to reach
and target students with wide
interests
Engaging with local community to
enhance brand image
Expand geographically by setting up
more campuses, and also by
offering distance/e-learning courses
Threats-
Political
Competition intensity between PTEs
Treat of substitutes such as polytechs,
universities


Above table represents the various factors and the key elements that AIS has to reach
to success firstly they have to maintain brand and build a stronger reputation in the
market. They have to bring a more course variety to remain in the market for the long
term. Secondly, stay in touch with locally and internationally market.

Infrastructure, IT: Lease/maintenance for 3 fully-equipped campuses; limited use of IT
HR: Management and staff salaries
General administration: Accounting/Finance/Legal/Other
Inbound
- Mix with local
agents
-


Process
- Approved
courses
from
NZQA
- Provide
free
stationary
Outbound
- Dont
lose
contact
after
study
finish as
Marketing/Sales
- Attached with
agents
(locally
&internationa
lly)
- Word of
mouth
- Use
promotional
products and
seminars

Service
- No
link

5.4.2
The gaps in AISs capability between current performance and new objectives are:
Limited financial budget
Lack of course selective
Less target market (India)

6.0 Strategic options
6.
Strategic options Distinctive competence Competitive advantage
Target Market
1.Penetration Penetrating into the current
target market.
Increase marketing profit
and sales commission
May be helpful for short
term gain.
Trying to penetrate by more
commission to agents may
squeeze AIS profits in long
term.
2. Market Development Fixed new demographic or
geographic market for the
existing product
Can help target and reach
more customers for the
existing product.
Can help strength the
market and brand.
3.Product Development Develop new products for
the easily target market.
Can serve various
customers.
Can help strength the
market and brand.


Margi
n
Demand
1.Push Strategy Marketing efforts are
divided at intermediates
such as education agents.
More commission can be
affected to push the
product.
May be helpful in short term
gain.
Pushing products by more
commission to gain more
squeeze.
2.Pull Strategy Divesting market efforts at
the end and use through
advertising promotions and
media companies.
Can help to give strength to
the market.
3.Push/Pull Mixture of both push/pull
depends upon the demand
market dynamics.

Product
1.Basic/Standard Product New products with basic
features
Keeps the cost low
May not be helpful in long
term and growth
2.Product Variety More product variety and
more features
It can attract courses
groups structure from
various market.
Can help in strength the
market potential and brand.
3.Brand Diversity Diversity product with
meaningful and
distinguishable brand.
Can be helpful in building
brand class. That fills with
consumers benefit and
desire.
Can help in targeting
various markets and gain
strong competitive position.
Pricing
1.Value for Money Ability to create superior
customer value at
affordable prices.
Increased customer
satisfaction, loyalty and
positive word of mouth.
2.Penetration Pricing Ability to attract customers
on the basis of two prices
and reasonable quality.
Can lead to cost based
leadership in the market
with optional resource
utilization.
3.Competition based
Pricing
Ability to utilize existing
resources and skills to
serve customers on the
basis of competition prices.
Flexibility to build a strong
market position based on
other marketing mix
elements such as product,
place and promotion.
Distribution
1.Selective Distribution Stronger collaborative
arrangements and ability to
Stronger customer basis
and market share,
reach and serve wider
customers base.
promotion.
2.Exclusive Distribution More specialty in terms of
marketing, promotions and
meeting needs of potential
students.
Stronger and differentiate
market position and brand.
3.Intensive Distribution More demographic and
geographic, physical
coverage, supplemented by
technology.
Stronger customer basis
and market share,
promotion.
Promotion
1.Heavy Promotion Ability to generate more
customer interest and
awareness.
Cost based leadership and
brand preference.
2.Build Brand Preference Ability to create conviction
and more buying interest.
Strong brand reputation
and loyalty.
3.Build Awareness Ability link with customers
on basis of key
features/attributes of the
brand.
Efficiency and effectiveness
in matching customers
wants and needs and
building a brand
preference.


6.4:
Based on the overall information for the value of strategic options in 6.3 and 6.4 the
following table ranks each of the discussed strategic options.
Strategic options Ranking
Target markets
Penetration 3
Market development 2
Product development 1
Demand
Push strategy 3
Pull strategy 2
Push and pull strategy 1
Product
Standard basic product 2
Product variety 1
Brand diversity 3
Pricing
Value for money 1
Penetration pricing 3
Competition based price 2
Distribution
Selective distribution 2
Exclusive distribution 1
Intensive distribution 3
Promotion
Heavy promotions 3
Build brand preference 1
Build awareness 2




7.0: Marketing and positioning strategies
7.1
In light of the proceeding analyses, the following marketing strategies have been
selected for AIS that provide best fit between AIS goal, capability and market
opportunities.
Strategies Fit with goal
(Rating 1-10)
Fit with
capabilities
(Rating 1-10)
Fit with
opportunities
(Rating 1-10)
1.Target Market:
offers more product
variety to increase
the market
presence and share
in the existing
market
10 8 10
2.Demand
Strategies: Forms
mix of push-pull to
achieve more
flexibility to adjust
the marketing mix
and position to the
demand and market
condition.
10 10 10
3.Product Strategy:
Forms product
extension/variety to
serve various
customers needs
and wants.
10 8 10
4.Pricing Strategy:
Focus status-quo to
avoid competition
and maintain market
position.
10 10 10
5.Distribution:
Exclusive locations
and specialty in
terms of marketing
and serving
customers potential.
10 10 10
6.Promotion: Focus
building brand
10 10 10
preference.

7.2:
Strategic options Risks Returns Feasibility of
achieving AIS
marketing
objectives
Target market:-
Product
development:
Providing the
different
course
material for
stabilization
in the market

This strategy may
not be useful for the
AIS firstly it is more
expensive and there
will be lot of market
pressure on AIS.
Try to make
stronger relations
with the local and
international agents
to fulfill the students
need and wants in a
wide range

Stronger
collaborative
relationships with
agents, more
coverage, ability to
satisfy wants and
needs of students
with wider interests.
All of these
Customer base,
market share,
market presence
and brand having a
more economic and
powerful relations
High
Demand:-
Push/pull
strategy:
Using the
push and pull
strategy to
retain in the
market

In push strategy it
may reduce the
profit where as pull
strategy will be
expensive and not
useful as much.

Having a strong
relations with local
agents and more
brand reputation will
enhance the
market.
Providing the
customer
satisfaction and
adjust according to
their needs and
wants will help to
get in more
customers
High
Product:-
Product
variety: fulfill
the customer
demands and
preparation
what they
needs

High pressure of
expenses may be
not helpful to sell
the products
although there will
be lot of pressure as
well on AIS.

Providing wide
range of course of
interests and their
fields make their
taste and
preferences.
Providing the
enough study
material and giving
the different
opportunities will
make more brand
reputation
High
Pricing:-
Status Quo:
having the
status quo
may reduce
the
competition
Maintaining the
price with market is
good option;
changing of prices
will affect the AIS
market

Using the new skills
and providing the
new course material
may get in more
customers
Using the product
promotion and place
plays an important
role to build more
reputation and
brand awareness.
High
Distribution:-
Exclusive
distribution:
locations and
different
course
material fulfill
customer
demands and
needs

Opening a more
and more branches
will affect the
market if they will
able to give more
customer
satisfaction.

Making the strong
relations with locally
and internationally
market profit margin
for AIS

High
Promotion:-
Build brand
preference:
targeting the
brand
reputation
Not good for the
long run and
changes frequently
Try to make more
customer
satisfaction and
strong brand
reputation
High



7.3:
Product Attributes: It refers to positioning based on the product attributes so that the
consumer see additional advantage to them for buying the product. AIS can build on its
education quality and student success rate as attributes to position itself in the market.
Usage and User: Positioning by usage refers to particular occasion and application of
the product, and positioning by user refers to positioning by different user types or
groups. AIS can emphasis of career building and advancement to position its courses.
Product Class: It refers to positioning the product or a brand based on its product class
so that it can be distinguished easily from other similar products. AIS can position itself
in the international market based on NZ's image and reputation of high education
quality.
Consumer Needs/Benefits: It refers to positioning on delivering value to the customers
according to their needs and benefits desired. AIS can position itself on the basis of
addressing educational needs of potential students, and benefits of success rate and
career advancement in NZ.
Competition: It refers to positioning the product or brand as a better performer
compared to the competitor offering similar products. AIS can build on its market
reputation and student success rate to gain a strong position against the competition.
7.4:
Status Quo: Using the status quo strategy AIS can avoid any expensive investment to
expend into the market and attack competition. This can be good strategy for
consideration but IAS can miss on future marketing opportunities.
Market Penetration: Existing Product Existing Market
Market Development: Existing Product New Market
Product Development: Raw/Product Existing Market
Diversification: New Product New Market
Intense Growth: AIS can achieve intense growth by using a mix of market penetration
market development, product development and diversification, such mix of strategies
can be expensive and risky and should be executed carefully. The main advantage of
this can be rapid expansion and strong position in the market.
Integrated Growth: AIS can use both vertical and horizontal integration strategies. With
vertical strategy AIS can set up its own point-of-conducts overseas. With horizontal
integration AIS can take over or merge with similar business in the market to expand its
business.
7.5:
Mass marketing and distribution: AIS may use a single marketing mix for all types of
potential students. This strategy may be good for cost saving and expansion, but it may
not help in creating superior value to students with different interest and backgrounds.
This strategy does not fits well with the nature of industry AIS is operating.
Product Variety Marketing: copy from 6.1 Product extension and variety
Differentiated target Marketing: Using this strategy AIS can target various target
groups by offering a separated marketing mix for each group some overlapping can be
possible within the marketing mix and this can help reduce the cost to save extent. This
strategy with help serve the customers more efficiently and will help AIS gain a stronger
and differentiated position in the market.
Concentrated target Marketing: Using this strategy AIS can target a single or a few
niche segment and gain a large market share and competition advantage within these
segments. The main limitation of this strategy is that niche can be too small and it can
attract competition which can further squeeze the profit potential.

8.2:


The table shows the marketing resource requirements and budget. These requirements
have been grouped into three categories: i) Marketing activities, ii) New courses, and iii)
Human resource requirements.
The various marketing activities for implementation can be seen in the above table. The
total budget for all these activities over 3 years is $14,447,499. The total budget for
three new courses is $84,000 for the entire 3 years. The total budget for the HR
(marketing manager and tutors for new courses) is $336,000. Adding all these figures,
the overall budget for all the resource requirements comes to $1,867,499 (as shown in
the bottom-most row of the above table.
8.1 Sales forecasts:
The following table shows the sales forecasts which can be expected if the marketing
resource requirements are properly fulfilled and implemented. The sales forecasts show
that about 10% growth in the student numbers and revenue can be expected. Over 3
years, the student numbers are expected to go up to the mark of 226 (200 international /
26 local). The total sales revenue is expected to reach $2,964,648 in the next 3 years.



8.2:

9.0: Performance evaluation and monitoring
9.1:
PERFORMANCE MEASURES
Target Market Acceptance and intakes in new
courses
Student satisfaction and success
rate.
Demand
Extra incentives to agents. (time to
time)
International seminars Print media
Local community engagement(local
seminars)
Increased agent motivation and
number of leads.
Increased students conversation
rate.
Brand awareness and willingness
buy
Number of students
Product
Three new courses
Acceptance and intake in the new
courses
Student satisfaction and success
rate
Pricing
Competition prices based on
competition
Number of students
Sales revenue Vs cost of profit
Distribution
Few campuses in exclusive
locations collaboration with
specialized agents
Number of students
Sales revenue Vs cost of profit
Conversion rate/leads
Student satisfaction and success
rate.
Promotions
International and local seminars
Print media advertising
Web based advertising
Collaborative engagements with
agents
Brand awareness
Number of students
Sales revenue Vs cost of profit
Conversion rate/leads


Review Mechanisms
1)Profitability Analysis: Profitability is the most critical education and review
mechanism to measure the success of a company and its marketing activities. This
analysis can be done by looking at the differentiate between the sales and total costs.
This analysis can be done monthly, quarterly, half yearly or yearly to measure a with a
company is progressing in terms of its revenue/profit against the cost increased.
Another way to look at the profitability is profit margin.
Profit margin can be calculated by barely profit of sales. The better this rate is the
better is the company's earning against cost. The analysis also helps in dealing which
product or target market should review more marketing efforts and buying. Profit margin
also helps in differentiate the marketing mix for example, the price of a product with low
profit margin can be possibly increased or similarly the price of a high selling product
can be increased. The cost analysis helps in identifying various types and levels of cost,
how they changes are time and how they can be controlled or reduced.

Market Share Analysis:
Market Share of a company =

Total sales of the same product in the entire marke


9.2 Recommendations:
Increase engagement with local community. This will help gain a strong brand
image and position in the market.
Continue building on collaborative arrangements with education agents. This will
help producing consistent student numbers, and is also cost effective in terms of
marketing.
Introduce more course variety to attract students from various interests. This will
also help enhance the competitive position of the organisation.
Have right people at right places for successful implementation of the marketing
plan.
Have proper performance monitoring and evaluation systems and mechanisms in
place to gauge the performance of the produced marketing plan.