V47 10 Step Marketing Plan Edgardo Basa

10 STEP Marketing Plan for University of Manila

Edgardo V. BasaFebruary, 2010

5 Steps for Part 1(PTM and positioning)

1.Identify your target (PTM)2.What do they need (NWE)3.What are they choices (competitors)4.Where is the opportunity (gap)5.How big is the market (3Cs)

UM- PTM : Class D Students

1.UM - PTM are Class D Public School High School graduates/ transferees and working-early breadwinner students2.“Very” affordable College education-offers flexible payments and provides programs for working students3.Can choose MLQU.

4.Gap: all other schools focus on rigid admission procedures, high cost retention/non-flexible payment schemes, no program for working students5.The Market size is P 7 B. UM covers P 312 M.

UM- PTM : Class D Students

5 Steps for Part 2(Marketing Mix & Strategy)

1.Product2.Price 3.Promo 4.Place 5.Generic Winning Strategy of Mix

UM’s 4 Marketing Mix & Winning Strategy

1.UM brand- Same quality education for Class D working and self-supporting students

2.Lowest cost per unit (300/unit)No miscellaneous fee, fixed tuitionfor four years

5 Steps for Part 2(Marketing Mix & Strategy)

3. Uses public school campaigns, grapevine, print ads

4. Limited to University Belt-Manila

5. Uses Low Cost Strategy and differentiation to win

Positioning to the Primary Target Market

Part 1:Steps 1 to 5

1.UM’s Primary Target Market

• Demographics (Age range, sex, social class, marital status)

• Lifestyle (what they do)• Behavior (when consume, how much,

how frequent, special concerns)

1.UM’s PTM: Class D Working Students

• Demographics 16-23, M/F , social class: D, single/married)

• Lifestyle (working students, self-supporting, young breadwinners, part time students)

• Behavior (schooling in the morning , work in the afternoon and evening

2. My PTM’s NWD

Needs from Maslow’s hierarchyWants determine choiceExpectations from the product

I want to be recognized as a graduate

I am complete when I earna degree and be eligible for

regular employment

2. My PTM’s NWD

THE NEED :To belong (social), To be recognized as a graduate andbe eligible to take the board exam/work,(Self-Esteem)

THE WANT:Students choose UM over other schools because of ….The same Quality Education, Accessibility, Prestige, Cost of tuition fee (price), flexible class schedule and payment scheme adaptive to under privileged students, credibility& awareness of the school, CHED and PACUCOA approval,

2. My PTM’s NWD

THE DEMAND

Students expect these when they enroll at UM :

Quality Education, Good instruction from competent Professors, a College life experience, To be trained equally with other Universities while working with less cost

3a. Direct and indirect products that address my PTM’s NWD

• List of Competitors products/ brands• Determine the variables that affect

choice of product, brand

3a. UM has many formidable competitors

• Direct: Private Colleges and Universities :NU, UE, MLQU, SAN BEDA,, CEU, LCC, HOLY SPIRIT, ARRELLANO UNIV., etc.

• Indirect : AMA Computer learning Centers, TESDA training centers, short time courses offered by small learning institutions

• Variables:Cost of tuition and subsequent increase , stringent rules for admission,reputation, pride, accessibility, success rate in board exams/employment

3b. Competitive Position Map

• Determine the 2 most critical variables • Make a position map plotting the

different competitors

2 Examples of Position Map

1.Tuition Cost vs. Student Status2.Brand vs. Positioning

Ensure size of bubbles= represent relative market shares of the brands

UM is #1 in niche: Low Tuition for under privileged- self supporting students

Tuition/ Student Status Matrix

Parent-supported Self-supporting

Scholar

High Tuition

Low Tuition

Tuition Cost vs. Student Status

UM

SBC

CEULCC

CHS UE

SSCNTC

SSC

UM unique positioning is shown in this competitive map

Many competitors focus on “ comfort ” and “quality” zone positioning

Positioning vs. Brand Matrix

UM SBC CEU LCC CHS UE FEU MLQU AU NU PSBA SSC TIP NTC

No Miscellaneous fees

Downpayment of Php 500

Guaranteed No increase in TF

Back accounts allowed up to 50 % of TF

No entrance Exam

Tutorial program for working studentsHigh Technology facilities

High Passing Rate in board exams

7 day schedule of classes

With branches or off-campus training facilityAirconditioned rooms

Majority of faculty having Doctorate degreesAll faculty members having Masteral degrees

4. Identify the gap between customers and competition

Where is the marketing opportunity?

What NWDs are not being addressed?

What can be the unique selling proposition for the new product (totally new or repositioned.)

4. UM USES DIFFERENTIATION AND LOW COST STRATEGY TO POSITION

UM is the only University • that accepts P 500 down payment-for

enrollment• No entrance examination• Fixed tuition fee until graduation

Example :2007- TF = Php 13,000 ( 21 units )2008- TF = Php 13,000 ( 21 units )2009- TF = Php 13,000 ( 21 units )2010- TF = Php 13,000 ( 21 units )

• Absolutely No Miscellaneous Fees

• Promissory notes admitted as long as proof of employment is presented

• Classes are held 7:30 am to 9:00 pm( 7 days a week ! )

• Tutotial Classes allowed (one on one with Professor – subject to validation exam by the office of the President )

4. UM USES DIFFERENTIATION AND LOW COST STRATEGY TO POSITION

4.UM USES DIFFERENTIATION AND LOW COST STRATEGY TO POSITION• Absolutely No Miscellaneous Fees

• Promissory notes admitted as long as proof of employment is presented

• Classes are held 7:30 am to 9:00 pm( 7 days a week ! )

• Tutotial Classes allowed (one on one with Professor – subject to validation exam by the office of the President )

5a. Based CHED/ industry data, total market for college students in Ubelt-Manila is P 8.3 BNAME OF SCHOOL LOCATION POPULATION

SAN BEDA COLLEGE MANILA 4,700 CEU MANILA 23,100

LACONSOLACION MANILA 2,477 COLLEGE OF THE HOLY SPIRIT MANILA 2,314 UNIVERSITY OF THE EAST MANILA 13,257 FAR EASTERN UNIVERSITY MANILA 28,285

MLQU MANILA 3,780 ARELLANO MANILA 4,671

NATIONAL UNIVERSITY MANILA 2,523 PSBA MANILA 11,021

SAN SEBASTIAN COLLEGE MANILA 4,841 TIP MANILA 13,340 NTC MANILA 3,940

UNIVERSITY OF MANILA MANILA 11,987 Total 130,236

Based on CHED Report on School profile – September,2009

5b. Based on UM data, where UM share is 4%, total market size is P 7.8 B

1.UM data ( Registrar’s office ): Enrolment receipt - P 312 M2. UM claims market share of 4 %3. Then Market for College students in University belt- Manila (market size) is P 312/ .04 = P 7.8 B

5c. College Enrolment data indicates a size of P 7 B

130,236 students enroll every sem. Average tuition fee is P 32 thou per semester125,036 x 2 x P35 thou = P 8.7 B

College Students’ enrolment in the Ubelt area

5. Concluded that College Student Market in the Ubelt area is P 8.3 B

1.CHED/Industry Data : P 8.3 B

2.Company Data : P 7.8 B

3. Usage Data : P 8.7 B

The mean is P 8.3 B ( This was used as the basis for estimating the size of the total college student market in the University Belt- Manila )

The Marketing Mix Strategy

Part 2:Steps 6 to 10

6a. Photo of product category

6a. The University Belt is dominated by Middle to Highend Colleges and University

6b. Product Description

• The University of Manila is a private educational institution that offers the following courses :

a. Business Ad/ Accountancy 4 years b. HRM 4 years c. Criminology 4 years d. Education 4 years e. ComSci 4 yearsf. Engineering 4 years

6b. Product Features

• The University of Manila produces high passing percentages for the following Colleges :

a. Accountancy 33 %b.Criminology 100 %c. Education 36 %d. Engineering 81 %

7. Price- UM offers the floor price of alltuition fee requirements in all Colleges and Universities in the University Belt

The classic pricing scheme beats all schemes provided by other schools :

1.No Miscellaneous fees• P 500 initial deposit-guaranteed

enrolment• No tuition fee increase- during the four

years of stay in the school• Flexible payment scheme

8a. Promo

Describe what you propose to do

• School campaign on high school graduating students• Grapevine utilizing current students• Print ads• Alumni contacts and referrals• 25 % discount is given to the third member of the siblings

enrolled in the school.• All students of UM are tagged then as “ SCHOLARS ”

8b. Competitor promo

Passive campaign to invite students to enroll

Alumni/ Alumna referral

Websites of respective Colleges and Universities

9. UM is situated at the University Belt- Manila

• Main Campus is located at the heart of Manila- Legarda st.

• Affililiate campus for the College of Criminology- Camp Crame

• Affiliate Campus for HRM:EMIRAMONA Hotel ( Tagaytay )Ermita Hotel ( Ermita Manila )Benguet Hotel ( Baguio )

10. What is the generic winning strategy?

Which of the 4 strategies are being used? (bold and underline to most dominant strategy)• Low Cost Producer• Supply and Distribution Leverage• Differentiation• Niche

10. UM Strategy :Differentiation and Low Cost Strategy

UM’s main strategies are to use low cost and differentiation strategy.UM offers the lowest tuition fee for College students in the University Belt Area.UM also differentiates itself as a University that primarily offers flexible programs for working and self-supporting students.

.

10. UM Strategy :Differentiation and Low Cost Strategy

Target Market benefits from the flexible – low cost and negotiable payment scheme for its students who are underprivileged /self-supporting/early breadwinners

Students enjoy the same quality training and meet desired results (graduating/passing the board exams) at a lesser cost and at their pace.

SUMMARY

10 STEP Marketing Plan for University of Manila

5 Steps for Part 1(PTM and positioning)

1.Identify your target (PTM)2.What do they need (NWE)3.What are they choices (competitors)4.Where is the opportunity (gap)5.How big is the market (3Cs)

UM- PTM : Class D Students

1.UM - PTM are Class D Public School High School graduates/ transferees and working-early breadwinner students2.“Very” affordable College education-offers flexible payments and provides programs for working students3.Can choose MLQU.

4.Gap: all other schools focus on rigid admission procedures, high cost retention/non-flexible payment schemes, no program for working students5.The Market size is P 8.3 B. UM covers P 312 M.

UM- PTM : Class D Students

5 Steps for Part 2(Marketing Mix & Strategy)

1.Product2.Price 3.Promo 4.Place 5.Generic Winning Strategy of Mix

UM’s 4 Marketing Mix & Winning Strategy

1.UM brand- Same quality education for Class D working and self-supporting students

2.Lowest cost per unit (300/unit)No miscellaneous fee, fixed tuitionfor four years

5 Steps for Part 2(Marketing Mix & Strategy)

3. Uses public school campaigns, grapevine, print ads

4. Limited to University Belt-Manila

5. Uses Low Cost Strategy and differentiation to win