Marketing Analysis of La Trobes Master of Management Online Program - Case Study Example

Critical Marketing Analysis of La Trobe’s Master of Management Online Program Student: Course: Task: Instructor: Date: Executive summary La Trobe is a leading Australian university that is ranked 351+ in Times Higher Education Rankings. Students consider such favourable ratings when choosing La Trobe programs among many other offerings in the market. La Trobe’s Master of Management Online is a newly launched product that targets the busy professionals who desire to improve their managerial and leadership skills and abilities. La Trobe ensures that students can take the program online and that the program is flexible enough to fit into their busy lives at work and with family. La Trobe has a strong brand that is associated with social inclusivity and high-quality research and academic activities that have made it a world-class university. La Trobe has adequate teaching and research facilities and staff that will ensure it is capable of offering the best quality to its Master of Management Online students. With a target of about 100 students in the first intake, La Trobe can potentially generate between AUD$4,946,000 and AUD$5,692,000 in revenue. La Trobe’s Master of Management online faces competition from almost similar products offered by Griffith University, Deakin University and Monash University. These close competitors offer online Masters in Business programs at relatively similar price point as La Trobe. However, La Trobe’s program is a fully dedicated online program that is priced favourably considering the University’s high rankings. La Trobe’s marketing communication should ideally emphasize its affordability, quality, brand reputation, flexibility and compatibility with the target market needs. Situation analysis Latrobe University is one of the leading higher education institutions in Australia that offer a diversified portfolio of undergraduate and postgraduate programs for domestic and international students. La Trobe operates in a highly competitive market comprising of a total of 43 universities offering almost similar programs in certain disciplines. Once students have graduated from la Trobe having successfully undertaken various degree courses, they have better chances of getting decent employment in their area of specialization. Australian universities have more than one million enrolled students. In 2016, a total of 322,014 applications were made by individuals applying for undergraduate placement [Dep]. This is a huge market considering the fact that only 43 institutions are accredited to offer degree programs. For the past 50 years, the Australian higher education industry has been posting positive growth in enrolments of both domestic and international students. Postgraduate course work has doubled its share of enrolment in the past 30 years to 22% of the total enrolments made [And14]. The University of Melbourne, Monash University and university of Sydney are some of the major players in the industry with a combined student population of about 180,000 (18% market share) as at 2016 [Tim161]. The 21st century has ushered in the information age that has led to loss of jobs and creation of new jobs, economies and industries thanks to the growth of internet ease of access to information and globalization. Tertiary institutions that adapt to the changing macro environment by offering digital learning platforms have better chances of retaining their market share and profitability in the long-term [Vel16]. This marketing plan is focused on critically analysing effectiveness of the marketing of La Trobe University’s newly launched Master of Management online given the existing competition and environmental factors in the Australian higher education industry. The internal environment Mission Since 1964, La Trobe has stayed true to its mission of broadening the participation of communities in regional Victoria in higher education. La Trobe also strives to excel in world class research that solves global problems. La Trobe’s vision is to be a place where inclusiveness and globally recognized excellence meet [LaT15]. La Trobe’s focus on social inclusivity and world class education and research programs will be crucial in differentiating its brand in the long-term. Resources As at 2013, La Trobe had a total of 3,192.9 full-time equivalent staff and 1,463.5 total academic teaching staff. La Trobe strives to ensure its staff reflects the diversity and inclusivity envisioned in its aspirations. La Trobe has continuously increased the numbers of indigenous and LGBTI staff and those with disability. La Trobe employs strategies such as research scholarships, funding and devolved decision-making to attract and retain a high calibre staff that shares in the institutions vision and objectives. With more than 36,000 yearly student enrolments, La Trobe has a fairly stable financial situation. La Trobe also plans to generate $84 million research income from more it research activities in its $94 million research centre that accommodates more than 400 researchers. La Trobe is a member of the six-member Innovative Research Universities (IRU) of Australia. The cooperation and brand positioning offered by IRU adds to La Trobe’s strong brand image. Current offerings La Trobe offers a comprehensive portfolio of undergraduate degree, Postgraduate course work, Research and Short courses programs. Master of Management Online is a postgraduate course work program that is offered fully online. The Master of Management Online is suited for busy professionals that want to improve their management and leadership skills but have limited time for full-time university-based learning. The master of management online is at the introductory stage of the product lifecycle stages. At this stage, there is minimal awareness of the product, meaning La Trobe will require extensive marketing and promotional efforts to popularize the program. La Trobe may also be open to consumer suggestion regarding modifications to suit their busy lifestyles and quality expectations. The Master of Management online fits into La Trobe’s mission of broadening the participation of communities in higher education. Master of Management online is a convenient program that can be accessed by students remotely and within their schedules. Target market segments Customer description La Trobe’s Master of Management online program is designed to fit with the busy schedules of professionals working in the business world, NGOs and government institutions. Such individuals usually have tight schedules at work and would prefer a program that is tailored to their unique requirements. Geo-demographically, the program also targets international students who want a postgraduate degree from a reputable institution such as La Trobe but cannot be able to attend traditional classroom program from their remote locations in other countries particularly in Asia-Pacific region. Customers’ motivation to enrol for La Trobe’s Master of Management Online La Trobe is among the top Australian universities that are recognized globally for its quality of education and research programs. The target market is likely to be influenced by the university rankings before making a decision to enrol into La Trobe’s programs. Currently, La Trobe is ranked 351+ in Times Higher Education Rankings [Tim26]. La Trobe is also among the top ten universities in Australia. Such a favourable rating will positively influence potential Masters of Management Online into enrolling into the program. It is also important to note that the Masters of Management Online will offer successful graduates an opportunity to get employed in a reputable organization and earn a high salary than a bachelor’s degree holder. Target market size In 2016, Tertiary Admissions Centres in Australia received more than 30,000 applications for management degrees. La Trobe’s target market comprises half of such a number. However, due to quality and resource limitations, the university can only admit not more than 100 into the program at many given time. However, the university may consider four intakes per year to accommodate any growth in demand for the program. Potential Target segment The growth in demand for Australian Master’s programs in South-east Asian means there is a potential market of non-English speakers mainly in china [Hoa14]. La Trobe can develop a strategy to partner with Chinese higher education institutions in offering the program. Such a program will overcome any potential language and cultural barrier and result in profitability for La Trobe. Market segment description The targeted market segment is 15,000 domestic students. La Trobe will aim to enrol at least 100 students for the Masters of Management Online program in the first intake. Given that the current annual fee for the program per student is AUD$49,460 and AUD$56,920 for local and international students respectively La Trobe can expect that the annual revenue from the program will be between AUD$4,946,000 and AUD$5,692,000. La Trobe can easily reach the target market via digital marketing channels; alumni outreach programs and local media such as Newspapers and TV. The market segment is sustainable and profitable in the long-term provided La Trobe maintains its favourable international ranking. The program is highly customized for the needs of the homogeneous market that requires flexible plans. La Trobe is one of the few institutions in Australia offering a Master of Management Online and thus it has a competitive edge in the market considering its favourable reputation in offering the program via traditional classroom approach. Competitiveness La Trobe’s faces stiff competition for its master of management online program from institutions that offer almost similar product as online or campus-based program. Griffith University offers a Master of Business Administration program that can be taken full-time or online. Griffith’s program costs AUD$48,000 for domestic students and AUD$52,500 for international students. Griffith has six intakes in a year [Gri16]. Griffith is ranked 251+ by Time Higher education [Tim16]. Deakin University’s Master of Business administration is also available online and costs $36,000 for domestic students. Deakin is ranked 301+ on the Times Higher Education ranking [Tim161]. Monash University Master of management program is available online and costs AUD$54,200 [Mon16]. Monash is ranked 73 by Times Higher Education [Tim161]. The online master of management programs industry is relatively competitive but the success of players is dependent on the brand image and the program design. La Trobe has differentiated its program by making more flexible to fit into student’s busy schedule. The drop-in-drop-out mode ensures that students can delay their studies and resume after they are available to go on. The industry has high entry barriers in terms of the strict regulatory framework for higher education in Australia. In addition, universities need adequate competent staff members and program coordinators to ensure the programs run successfully. Consumer buying power is quite high given that several universities in Australia offer postgraduate coursework in management. Consumers also have enhanced access to information such as rankings that is likely to influence their decision-making. Consumer are likely to perceive La Trobe’s program as high-quality but costly. Therefore, the program should exceed consumer expectations in order to sustain the strong brand image. Consumer Perceptual map for La Trobe’s Master of Management Online Marketing objectives La Trobe will aim to enrol at least 100 students for the Masters of Management Online program. Having not more than a hundred students will ensure the program does not comprise on the quality of teaching and supervision. Given that the current annual fee for the program per student is AUD$49,460 and AUD$56,920 for local and international students respectively La Trobe expected annual revenue from the program will be between AUD$4,946,000 and AUD$5,692,000. Marketing strategies Target markets: La Trobe’s marketing program will focus on full market coverage but will mainly target professional with busy schedules who will appreciate the convenience of a flexible online program that offers them a greater control over how they study. The product The master of management online program by la Trobe is designed to equip learners with the skills necessary to develop ideas, lead and manage activities in corporate world, Government and NGO sectors. The program comprises of online classes, course materials and student support. A student can chose a broad focus master of management or a specialisation in either entrepreneurship and innovation or project management. Upon graduation from the program, a student should be able to make better decision using complex problem-solving techniques and ideas. The brand Since its establishment in 1964, La Trobe University has strived to be different in its approach towards offering higher education to the community. La Trobe has consistently pursued an inclusivity strategy where it seeks to broaden the participation of its surrounding communities in higher education. La Trobe has also curved a niche in innovative research as is a member of the Innovative Research Universities (IRU) of Australia [LaT15]. La Trobe is among the top 20 universities in Australia according to Times Higher education rankings. La Trobe was also ranked 58 out of 100 universities established not more than 50 years ago [Tim26].Such a strong brand image will be highly beneficial in attracting potential students to enrol for the Master of Management Online at La Trobe. It is important to note that postgraduate students have access to better sources information regarding the quality of postgraduate programs and are likely to rely on industry rankings to make a decision [Che06]. Price The current annual fee for the Master of Management program per student at La Trobe is AUD$49,460 and AUD$56,920. Griffith’s program costs AUD$48,000 for domestic students and AUD$52,500 for international students. Deakin University’s Master of Business Administration and costs $36,000 for domestic students. Monash University Master of management program is available online and costs AUD$54,200. Clearly, La Trobe’s is employing a competitive pricing model as its prices for the masters program are within the industry range for similar programs. However, La Trobe is among prices are among the highest in the market. The high price is indicative of the strong its brand and quality standards. A rise in price may discourage potential students who may prefer affordable alternatives. A reduction in price may also indicate low quality and thus hurt the brand’s positioning in the market. Distribution La Trobe’s Master of Management Online will be offered to students via the internet. This means that students will interact directly with their instructors and supervisors through the online platform. This channel is highly efficient in serving the target market that has limited time during the normal working hours and may also be physically distant from the institution. However, an elaborate coordination mechanism is put in place to sustain high standards of training and supervision. Communication La Trobe’s Master in Management will be marketed through TV, newspapers, Google Ads, social media, YouTube and on the University’s website. These media channels have a greater reach of the target market that is likely to use digital media mostly to connect with friends and professional contacts. The media channels are also relatively affordable for La Trobe. The marketing message will be a rational call-to-action detailing briefly the benefits of the program such as flexibility and skills and competencies to be acquired such ability to make informed business decisions at higher levels of management. The message will also contain brand promotion texts that refer to La Trobe’s industry ranking. The promotion mix will include advertising, direct marketing to potential students including La Trobe’s alumni. Final points to consider The success of the marketing plan will be in achieving 70% of the set target of students to enrol for La Trobe’s Master in Management program. La Trobe’s positioning as a socially inclusive institution of higher learning will ensure the brand retains its loyal customer base in the long term. References Dep: , (Department of Education and Training: Australian Government, 2016), And14: , (Norton, 2014), Tim161: , (Times Higher Education , 2016), Vel16: , (Veletsianos, 2016), LaT15: , (La Trobe University, 2015), Tim26: , (Times Higher Education, 2016), Hoa14: , (Hoare, 2014), Gri16: , (Griffith University, 2016), Tim16: , (Times Higher Education, 2016), Mon16: , (Monash University , 2016), Che06: , (Chen & Zimitat, 2006), Read More