Running head: ARGOSY UNIVERSITY - MARKETING PLAN

Argosy University - Marketing Plan

Lindsay Miller
Argosy University
Marketing Planning & Strategy
B6026
Dr. Brian Gahan
July 9, 2013
Argosy University - Marketing Plan
Table of Contents
I.
II.

III.

IV.

Executive Summary3
Situational Analysis4
a. Market Summary
b. SWOT Analysis
c. Competitor Analysis
d. Product Offering
e. Keys to Success
f. Critical Issues
g. Pricing
Marketing Strategy.8
a. Mission
b. Marketing Objectives
c. Product Positioning
d. Marketing Mix
e. Marketing Research
Financials10

V.
VI.
VII.

Controls...11
Summary.12
References...13

Executive Summary
Argosy University Phoenix is a location part of the Argosy University, for-profit
institution, along with three other post-secondary schools, The Art Institutes, Brown Mackie
Colleges and South University, owned by the Education Management Corporation (EDMC)
(Education Management Corporation [EDMC], 2013).
Argosy University offers academic programs in psychology and behavioral sciences,
business, education and health sciences disciplines. Argosy University offers Doctoral,
Masters and undergraduate degrees through local campuses, fully online programs and
blended formats. Argosy Universitys academic programs focus on graduate students
seeking advanced credentials as a prerequisite to initial licensing, career advancement

ARGOSY UNIVERSITY - MARKETING PLAN

and/or structured pay increases. (Education Management Corporation [EDMC], 2013,

p. 71).
Within this report a marketing plan will be developed to increase awareness of Argosy
University, along with the number of new students enrolled each start. Currently, miniscule
marketing concepts are being used, and money is being wasted on poor leads. At a cost of
$500.00 per lead, these leads only convert at 6.3% (S. Milgram, personal communication, July 9,
2013). The marketing schemes put in place, along with high tuition and fee costs, do not
generate a high enough conversion to upset the declining yearly enrollment and revenue. To
keep up with the competition of University of Phoenix and state schools, changes must be made.

Situational Analysis
Market Summary
The value of education has gone up exponentially throughout the years. Looking at the
median family income of adults between the ages of 30-39 one can see the effect higher
education can have. From 1964-2006, the average annual income for high school graduates rose
slightly from $40,000 to $43,000 (Haskins, Holzer, & Lerman, 2009). The average annual
income of those who had completed a four-year college degree in the same time frame rose from
$55,000 to $80,000 while those who earned a professional or graduate degree saw an average
increase from $57,000 to $100,000 (Haskins, Holzer, & Lerman, 2009).

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While these drastic increases in annual income entices many to further their education,
the slowed economy and radical surge in college tuition costs causes most to shy away. A catch22 has evolved in the demand for education. Since the economy has declined greatly within the
last decade, there has been a vast reduction in available jobs, which makes it tough to pay for
school in the first place. Even though many want to go to school to make more money, the high
costs of school hold them back in this economy. Public four-year institutions had an average
annual tuition and fee cost of $4,380 from 1998-1999 (Haskins, Holzer, & Lerman, 2009). This
cost increased to $6,590 in 2008-2009 (Haskins, Holzer, & Lerman, 2009). Even worse, private
four-year colleges sat at an average annual cost of $19,830 between 1998-1999, and grew to
$25,140 in 2008-2009 (Haskins, Holzer, & Lerman, 2009).
Being a private, for-profit school, in 2013 the total cost for tuition and fees for a full time
student to complete a 120-credit bachelors degree at Argosy University is $66,273 ("Argosy
University," 2013). The University of Phoenix (UoP) has a 120-credit bachelors program that
costs $57,275 per student, which is nearly a $10,000 reduction from Argosy Universitys cost
("University of Phoenix," 2013). With the University of Phoenix being Argosy Phoenixs
largest private, for-profit, non-tradition school, competition, Arizona State University (ASU) is
Argosy Phoenixs traditional school competition (S. Milgram, personal communication, July 9,
2013). For a traditional, four-year, bachelors degree, as an Arizona resident, the current cost to
attend Arizona State University is $84,520 ("Arizona State University," 2013). With a cost over
$18,000 more than Argosy, ASU, has the intrigue of campus life at a public state school, and
offers countless programs more than Argosy University.
SWOT Analysis

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Argosys strengths lie within the fact that it appeals to non-traditional students. These
prospective students may be at any age, which often have jobs and families. Therefore, offering
100% online programs along with a blended format, programs are very flexible for them.
Weaknesses would include the high price of tuition cost and fees, along with poor marketing
campaigns. The opportunity Argosy should take is to reduce costs and reinvent the marketing
campaigns. Arizona State University and the University of Phoenix will continue to be a threat
to Argosy University.
Competitor Analysis
As mentioned above, Argosy University Phoenixs two main competitors are University
of Phoenix and Arizona State University (S. Milgram, personal communication, July 9, 2013).
Meaning, if students, who show interest in Argosy, choose to attend a school other than Argosy
University Phoenix, more often than not, they choose UoP or ASU (S. Milgram, personal
communication, July 9, 2013). University of Phoenix had a total enrollment of 418,700 students
in the academic year of 2010-2011, while that number dropped to 356,900 in 2011-2012
("University of Phoenix," 2013). This is a decline in 61,800 students, or 14%. Meanwhile,
Arizona State Universitys total enrollment for 2010-2011 was 72,558 students, and decreased to
70,446 in 2011-2012 ("Arizona State University," 2013). This is a reduction of 2,112 students, or
2.9%. Argosy University as a whole, on the other hand, saw a total of 29,700 during the school
year of 2010-2011, and 27,500 students in 2011-2012 (EDMC, 2013). Argosy lost 2,200
students at a rate of 7.4%.
The University of Phoenix enrolls such a large amount of students every year that its
hard to compare percentages lost to Argosy University and Arizona State University. However,
ASU saw only a 2.9% decrease in enrollments from one year to the next, while Argosy more than

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doubled that at 7.4%. Argosy is now desperate to make up for those lost enrollments and turn the
progression into a positive one.
Product Offering
Argosy University Phoenix offers academic programs in the fields of liberal arts,
criminal justice, business and psychology at the associates, bachelors, masters, and doctorate
levels. These programs are taught through a practitioner-focused module. Degrees can be
obtained 100% online, or in a blended format, which is a combination of in-class and online
attendance.
Keys to Success
The keys to success of Argosy University Phoenix is to enroll more students from year
to year, and to gain a larger revenue in the process. In order to do this, Argosy needs to spend
less on gaining leads, or the same amount on better avenues to obtain higher converting leads.
This in turn will increase enrollments, along with revenue.

Critical Issues
Along with the declining number of enrollments from year to year, Argosy University is
viewed as too expensive. Even though ASUs cost is over $18,000 more than Argosys, it is a
traditional school in which most students live in on-campus housing to experience campus life.
So, in this matter, ASU simply has more to offer students in a tradition college experience than
Argosy does. Aside from the fact that UoP offers exponential degrees in eight different fields,
compared to Argosy University Phoenixs four areas, they are both non-traditional schools that
offer programs at both the campus and online levels ("University of Phoenix Degrees," 2013).

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Therefore, UoPs average cost of nearly $10,000 less than Argosys is more enticing, especially
since UoP offers a great deal more degree programs than Argosy Phoenix.
Pricing
At $510 per credit hour for tuition and an additional $5,073 in program fees, a full time
bachelors level student to complete 120 credits in a timely manner, the entire cost of their
degree is $66,273 ("Argosy University," 2013).

Marketing Strategy
Mission
At Argosy University, our passion is teaching and learning. We develop professional
competence, provide opportunity for personal growth, and foster interpersonal
effectiveness. Students succeed because our university community engages and supports
them (Argosy University, 2013).
Marketing Objectives

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To obtain better inquiries and increase awareness, Argosy should invest heavily in
marketing in the areas of radio, television, visual and online (K. Gannon, personal
communication, July 5, 2013). Argosy University Phoenix does not advertise in any way other
than through online schemes, third party marketing sources, and the very rare newspaper ad,
billboard, and school fair (K. Gannon, personal communication, July 5, 2013). Creating
enticing, radio and TV commercials, along with billboard advertisements, on the right stations,
and in the right places, will bring awareness not only to the general public, but to those who are
in our target market. This also puts the name, Argosy University into the minds of consumers;
especially those who want to further their education, or know someone who wants to. Currently
the leads for Argosy University are gained through third party vendors. These vendors have
websites advertising jobs, post-secondary, grants, and scholarships. They then call each lead to
screen them and transfer the prospect to the university (S. Milgram, personal communication,
July 9, 2013). The issue comes into place when the third party vendor transfers bad leads simply
to make their numbers look good. Argosy University must stop paying $500 per lead for such
poor leads. A system should be created in which dedicated internet marketing is used to
advertise Argosy University only, and do not lead visitors to believe they are applying for a job,
or scholarship. This will provide the school with more promising leads, which will lead to a
higher conversion rate (K. Gannon, personal communication, July 5, 2013). Executed in the
right way, these new marketing plans will increase the conversion of enrollments. In three to
five years, a gradual jump from start to start will show.
Product Positioning
Argosy University targets the non-traditional student, working adults seeking a high
quality education in a traditional college setting and working adults focused on the practicality

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and convenience of online education and career advancement goals (EDMC, 2013). With the
offering of online programs, blended, and weekend classes, students are able to work full time
while attending school. Instead of marketing cheaply, the target market must be directed at, and
the cost of attendance reduced.
Marketing Mix
The product offered by Argosy University is accredited post-secondary, masters level
and doctorate level education. Argosy provides these programs in twenty-eight locations across
thirteen states ("Argosy University," 2013). The price point is at a median level between its
competitors, the University of Phoenix and Arizona State University. Currently promotion and
marketing barely exists outside of online banner advertising and third party vendor sources.

Financials
Over the next five years, this marketing plan will increase revenue by 20%. For the year
ending in 2012, Argosy Universitys total revenue was $397.5 million (EDMC, 2013). A growth
of 20% will add $79.5 million giving the fifth year a total revenue of $477 million. Marketing
and admissions expense represented approximately 23.2%...of net revenues in fiscal 2012
(EDMC, 2013). This means that in 2012, $92.22 million was spent on the marketing to
prospective students. By increasing the marketing budget to $100 million and placing that

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10

money into more effective marketing processes, the 20% increase in revenue will happen within
five years. Also, the new marketing campaign is foreseen to bring Argosy Universitys annual
enrollment from 27,500 students in 2012, to 33,000 by 2014.

Controls
Timeline
August 2013 Introduce radio advertisements
September 2013 Introduce online process
October 2013 Evaluate and update radio commercials
November 2013 Introduce television commercials
December 2013 Evaluate and update online advertising
January 2014 Evaluate television commercials
February 2014 Change radio advertisements
March 2014 Change online process
April 2014 Evaluate and update radio commercials
May 2014 Change television commercials

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11

June 2014 Evaluate and update online process

July 2014 Evaluate and update television commercials
The marketing timeline will be on a cycle starting with the introduction of radio
advertisements, web based advertising, and television commercials. These will then be evaluated
and updated depending on how they are affecting the quality of leads and enrollment rates. The
marketing plans will continually be evaluated and changed based on how well they are doing. If
a certain segment is failing, it will be dropped and replaced with another form of advertisement.
Moreover, other ways of getting the name, Argosy University, out there will be used throughout
the year, such as attending school fairs, and partnering with charities and organizations.

Summary
In the past year, Argosy University has seen a great decrease in enrolled students. This is
due to the poor marketing and high cost of attendance. Close competitor, University of Phoenix,
markets and advertises better, has a much cheaper cost, and enrolls a multitude of more students.
By effectively targeting a market with radio advertisements, television commercials, and
dedicated internet marketing, the goal of increasing annual revenue and student enrollments by
20% is possible within three to five years.

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12

As an organization, marketing correctly is critical to the success of the company. If

Argosy University does not re-align its marketing budget and costs, it will quickly go under and
out of business.

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13

References
Argosy University (2013). Mission Statement. Retrieved from http://www.argosy.edu/aboutus/mission-statement.aspx
Argosy university - slide show. (2013). Retrieved from http://www.argosy.edu/interview
Arizona state university - financial assistance. (2013). Retrieved from
https://students.asu.edu/financialaid/coa/undergraduate
Degree programs. (2013). Retrieved from http://www.phoenix.edu/programs/degreeprograms.html
Education Management Corporation. (2013). 2012 annual report. Retrieved from
http://phx.coporate-ir.net/phoenix.zhtml?c=87813&p=irol-irhome
Haskins, R., Holzer, H., & Lerman, R. (2009, May). Promoting economic mobility by increasing
postsecondary education. Economic Mobility Project - An Initiative of the Pew
Charitable Trusts, 7-10, 27-28. Retrieved from
http://www.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/Economic_Mobility/
PEW_EM_Haskins%207.pdf
University of phoenix - review tuition and expenses. (2013). Retrieved from
https://www.phoenix.edu/tuition_and_financial_options/estimate-tuition-andexpenses.html#url=summary