AIA 2020-2025 Marketing Plan

Introduction

This strategy document uses a strategic marketing approach and involves three key concepts.

• Brand – may be defined as the outcome of engaging with the customer.

• Marketing channels – refers to the methods or mediums to communicate the brand to the

consumer.

• Target market segments – are sub-sets of the consumer group that have similar attributes.

These concepts can be presented graphically below

Executive Summary

Situational Analysis

Narrative Rationale

The Higher Education market in Australia has grown to over 170 institutions, and in metropolitan areas such as Melbourne is now a saturated and competitive market. Of these 170 institutions, 79 are private and many of these have been established to meet the demand from international students. While this segment has grown strongly over the last decade, with the uncertainty of COVID-19 and the unknown impact this will have on the future study habits of international students, any new entrant needs to launch a product firmly on the right side of the demand curve.

The AIA proposition identifies and meets two market opportunities. Firstly, as data and analytics and the digitalization of information becomes central to how we do business in the future, there is a need for Higher Education to respond and provide courses that prepare students for a business world based on platforms driven by data and analytics. While AIA is not a first mover in this segment, these courses are only several years old and there is still only a small number of institutions offering these programs.

Research by Manpower Group (see below) shows that over 40% of employers in the developed world still struggle to find skilled workers and with the change in workforce requirements brought about by AI and bug data the shortage is worsening. Given the small number of providers offering programs that address data translation and decision making, this trend is likely to continue for the foreseeable future as more companies move to business operating platforms that require students who can understand, control and interpret data. These business translators are already in high demand in a data analytics driven world, and the AIA course provision is well placed to develop the types of graduates sought after in businesses across Australia and the world.

Manpower Group Employment Outlook Survey 2018

Secondly, there are very few reasonably priced quality offerings in Australia/Melbourne in data analytics. The closest to a “value” price point is MIT - and only at the postgraduate level as their undergraduate provision does not currently include analytics, or business transformation. This has led to a lack of choice for students who are unable to pay a princely sum.

With the introduction of degrees in Analytics and Business Transformation in Melbourne, AIA plans to provide solutions to both problems.

Mission, Vision & Proposition

As outlined in the AIA Prospectus: “The AIA mission is to help people create value from data. We educate people in the technical skills and knowledge of analytics, but our niche focus is on the creative and ethical use of data and statistics in business, particularly in transformation contexts where business and operating models are changing radically. Key themes in our mission are creativity, value and ethics. We prioritise how to generate creative insights from validly collected data rather than the simple collation of it. Creative insights are where value will lie, for business, government and individuals in the future. We want all our students to graduate with a highly developed sense of what is ethically appropriate and legal, and to exercise good judgement in decision-making about data. The Institute will imbue graduates with the knowledge and technical

skills that set them up for success in a disruptive world where human and artificial intelligence increasingly come together to create, visualise and use data.”

“The AIA vision is to create a high quality, sustainable, boutique higher education provider which future-proofs graduates in a fast-changing world where theoretical knowledge alone is not enough and where practical skills, creativity and mastery of data are essential.”

AIA will offer, initially, three degrees in Melbourne as follows:

Bachelor of Analytics

Bachelor of Business Transformation

Master of Business Transformation, Analytics & Design

These degrees are designed to meet the transformation in the world of work predicted by the World

Economic Forum, EOCD etc. The global giants of the 4th Industrial Revolution and the new

experience economy are platform and service-based companies whose business models depend

upon creative insights from data and statistics. AIA degrees will develop graduates who can

understand, synthesise and visualise data and then use that data to transform and create disruption

in an ethical way. In addition, AIA degrees will be different to much of the Higher Education sector

through:

a. A highly practical focus through integrated work experience throughout their studies

b. A highly technological focus through the best use of educational technologies including

mixed reality technologies in modelling and simulation

c. Self-directed learning focus to create self-starting employees

d. A focus on graduating “business translators” who occupy the gap between producing

analytics and practically applying them within businesses.

Market Analysis

International HE Trends

At a macro level, international students represent an integral part of the Higher Education system in

Australia, and often the dominant part of the education system in the private providers segment within

Higher Education. The internationalisation of Australian education has delivered significant and far

reaching benefits to universities, students and local communities.

International education is recognised for its economic value – injecting over $32 billion per annum in the

Australian economy – making it one of the highest growth, and most dynamic export industries in

Australia.

On the back of a decade of robust 4%+ annual growth, the Australian Higher Education market was

predicted by Deloitte Access Economics to grow to 425,000 enrolments by 2025. As the table below

shows, that forecast was met and exceeded in 2019.

Enrolments

Commencements

Year 2016 2017 2018 2019 2016 2017 2018 2019

Higher Education

305,322 349,120 398,140 442,219 130,990 148,723 165,593 178,744

*Source: Department of Education, Skills and Employment 2020

In addition, as shown in the table below, the growth since 2007 of the international Higher Education

sector has outstripped all other education sectors and is forecast to continue growing through to 2025,

although these projections will undoubtedly take several years to recover due to COVID-19.

While Higher education enrolments and commencements of overseas students have grown strongly

since 2013 (see table xx below), that growth has predominantly been from 5 markets, and from

India and China in particular, which together accounted for 70% and 58% respectively of higher

education enrolments in 2019. Even before COVID-19 this left Australia vulnerable to major market

disruption, and the risk that providers with “vanilla” courses that meet traditional business needs

would be the first to lose international students in the event of changing market requirements.

Consequently, AIA market selection will focus initially on Australian based international students

and will ultimately diversify to include markets outside of the “big 5” with a strong bias towards the

value driven and business focused markets of South Asia, Middle East and Latin America.

Table 1: Higher education enrolments, overseas students, top five source countries, 2013–2019

2013 2014 2015 2016 2017 2018 2019

Nepal Enrolments 8,005 10,144 12,176 15,123 21,339 28,120 34,403

% total 3.5% 4.1% 4.5% 5.0% 6.1% 7.1% 7.8%

Indonesia Enrolments 8,717 8,469 8,470 8,733 9,272 9,883 10,614

% total 3.8% 3.4% 3.1% 2.9% 2.7% 2.5% 2.4%

Malaysia Enrolments 14,962 14,348 14,395 14,586 14,647 13,982 13,080

% total 6.5% 5.8% 5.3% 4.8% 4.2% 3.5% 3.0%

India Enrolments 16,653 26,237 35,135 44,311 54,012 71,668 90,333

% total 7.2% 10.5% 12.9% 14.5% 15.5% 18.0% 20.5%

China Enrolments 85,724 89,087 96,768 112,505 133,542 152,534 164,458

% total 37.2% 35.7% 35.6% 36.8% 38.3% 38.3% 37.3%

All other countries

Enrolments 96,658 101,065 104,697 110,048 116,271 121,936 128,107

% total 41.9% 40.5% 38.5% 36.0% 33.3% 30.6% 29.0%

Total Enrolments 230,719 249,350 271,641 305,306 349,083 398,123 440,995

Source: Department of Education, Skills and Employment (DESE), Basic pivot table 2002 onwards

COVID-19

COVID-19 has disrupted international education in ways that we are still struggling to understand.

How countries respond to COVID-19 will determine whether growth in students travelling overseas

continues as predicted, or whether students move to other forms of delivery such as on-line and

distance learning or, indeed, as many commentators believe there will be a permanent shift to

mixed mode delivery with on-line playing a greater role .

What the future will look like, is still educated guess work. On the one hand many providers have

successfully switched to an on-line focused provision which some believe is the future. On the other

hand, market sentiment is positive with most international students stating they have postponed

their travel rather than cancelled or moved on-line permanently. The AIA provision successfully

hedges against this uncertainty over future delivery methods through a model of mixed delivery and

self-directed learning which can be easily converted to full on-line delivery if required.

However, it is worth considering the impacts of COVID-19 to date. Visa data provides some

indication of the impact of border closures on the sector. Prior to the impact of COVID-19, student

visa grants and numbers of students in Australia in recent years were trending upwards. Visa

granting was put on hold in line with travel restrictions, so student visa grant numbers for all

nationalities, but particularly Chinese students, began falling in February and have dropped

significantly since, as shown in Figure 1.

Figure 1: Primary visa grants by month, higher education and postgraduate research sectors, 2018­–19

and 2019–20

Source: Department of Home Affairs, Student visas granted pivot table updated 30/07/2020.

While there have been fewer student visa grants to applicants outside Australia since March 2020,

grants to applicants already in Australia, which account for about a third of higher education and

postgraduate sector student visas (33% in 2018–19), have continued. For these sectors, grants in

Australia are down slightly on the previous year. In addition, 80% of current higher education student

visa holders were in Australia as at the end of March.

As shown in the table below, enrolments have grown by 1% compared to May last year. However,

commencements have declined by 14%.

In an ordinary year (2017 to 2019 in Table 3), around 20% of total enrolments, and 45% of

commencements, occur after May. To equal 2019 numbers, a further 80,640 enrolments would be

needed in the remaining months of 2020. This seems highly unlikely and it is therefore clear that the

market is likely to have contracted back to somewhere between 2017/2018 levels.

Table 3: Higher education enrolments and commencements, international students, full year 2017–

2019 and year to May 2017–2020

Total enrolments Commencements

2017 2018 2019 2020 2017 2018 2019 2020

Total at May

279,943

319,255

360,355

362,992

79,545

86,683

96,833

82,847

Growth on previous year at May

14.6% 14.0% 12.9% 0.7% 13.6% 9.0% 11.7% -14.4%

Full year 349,083 398,123 440,995 148,685 165,551 177,473

Proportion of full year at May

80.2% 80.2% 81.7% 53.5% 52.4% 54.6%

Source: DESE, Basic pivot table 2002 onwards

In the first three years of operation, AIA, expects to recruit at least 80% of its international students

from within Australia. While the declining number of commencements will be a challenge to all

providers, including AIA, we expect to mitigate this through the provision of a curriculum that is

attractive to students who have previously studied a course in Australia. We therefore anticipate that

we are relatively well positioned to manage the changes driven by COVID-19 and the changing business

world through modern delivery methods and a curriculum that focuses on the creative management of

data and analytics through the new and growing requirement for business “translators”.

Key Growth Markets & Disciplines

Despite the growth of other subject areas, Management & Commerce remains popular with

international students, largely due to the continued growth in China and the Indian sub-

Source: Department of Education, Skills and Employment

In the first half of 2019, international student commencements (new student enrolments) grew by a

highly aggressive nine per cent, with nearly half of all commencements coming from China, India and

Nepal. Commencements from India and Nepal continued to grow strongly (47% and 25% respectively),

compensating for a one per cent fall in commencements from China.

China, India and Nepal remain the largest markets within Higher Education and as these nationalities

heavily favour management and commerce and bachelor and taught masters there is likely to be

significant demand growth within this discipline over the medium term

It should be noted that recent growth trends outside of the big three markets, as shown below, heavily

favour engineering, taught masters, and postgraduate research. If these trends continue, AIA should

consider expanding its postgraduate provision to satisfy changing market demand as the international

market continues to move towards taught masters and beyond.

Source: Department of Education, Skills and Employment

Overview of Private Providers

There are 179 HEP’s in Australia of which 136 are private. Of these private providers, four offer degrees

that compete directly with AIA. Bond University, SP Jain, Holmes Institute and Melbourne Institute of

Technology (postgraduate level only). Kaplan is entering the postgraduate market in 2021.

Competitive Set

Bachelor Degree

Bachelor Degree Analytics or Equivalent Duration Intake Dates

Price per

Annum Price per Course

AIA Analytics 2 years $21,000 $42,000

Holmes Information Systems 2 years Feb/Jul $9,200 $55,200

RMIT N/A - Domestic Stud. only (Analytics) 3 years Feb/Jul $29,000 $58,000

SP Jain Data Analytics/Science 3 years Sep $30,000 $90,000

ANU Applied Data Analytics 3 years Feb/Jul $48,384 $145,152

Adelaide Applied Data Analytics 3 years Feb/Jul $41,500 $124,500

UTS Bachelor Science Analytics 3 years Feb/Jul

Monash Applied Data Science 3 years Feb $46,000 $138,000

UNE Analytics & Informatics 3 years Feb/Jul $28,216 $84,648

Swinburne Data Analytics/Science 3 years Mar/Jul/Nov $19,040 $57,120

South Australia n/a

MIT N/A - Computing Degree 2 years Feb/Jul $25,461 $50,922

La Trobe Business Analytics 3 years July/Sep/Nov $33,800 $101,400

Masters Degree

SWOT Analysis

Strengths

Clear focus and alignment around the fastest growing area of business - data, analytics and business transformation

Accelerated 2-year undergraduate provision

Employer links in curriculum and delivery

Future proofed curriculum

Future proofed delivery methods

Compelling ROI - Graduates attractive to employers

Clean slate provision enabling a nimble & market driven product. ( E.g. ability to set up academic structures that support a trimester system without disrupting an established curriculum).

Fees at an attractive price point

Weaknesses

Start-up institution

Low brand awareness in market

Limited curriculum breadth

Study Centre rather than a campus

Opportunities

Early Mover in Higher Education Sector

Expansion to Tasmania

Competition in Tasmania is conservatively minded and focused on other areas

Strong pipeline across Australia of graduates seeking courses that will make them attractive to Australian employers

Bond offers only two-year degree and is overpriced.

Threats

Bond University offers a two-year bachelors in Analytics

Holmes Institute offers a two-year bachelors in Analytics

Travel restrictions from COVID-19

Changes in overseas student travel culture due to success of on-line delivery during COVID-19

Masters Degree Business Analytics Duration Intake Dates

Price per

Annum Total Cost

RMIT Data science 2 Y Feb/ Jul $36,480 $72,960

Holmes Institute Information Systems 2Y (4tri-sem) $9,600 $38,400

SP Jain AI in Business

Victoria University Business Analytics 1.5 y Mar/Jul/Nov $29,700 $59,400

ANU Applied Data Analytics 1.5 Y Jul $48,384 $96,768

UTS Business Analytics 1.5 y Jul $41,110 $82,220

South Australia Business Analytics 2 Y Feb/Aug $30,000 $30,000

MIT Enterprise Systems and Business Analytics 2 Y (4 tri-sem) Mar/Jul/Nov $45,320

La Trobe Business Analytics 2 Y Jul/ Sep/Nov $34,400 $68,800

Changes in government legislation for student in Melbourne

The competitive set is dominated by a small number of public universities and private providers offering

degrees at high price points with compulsory fees at $35k+ per annum.

AIA Strengths: With a focus on business transformation and data translation, the AIA programs have a

synergy between the institution and its delivery that should accelerate the development of market

credibility. AIA can draw on an academic and industry board that is focused and has expertise in using

data to enable business transformation. The two-year bachelor's degree structure is highly innovative in

this segment and will allow students to enter post study work more quickly without penalty, while

saving on living costs due to a shorter duration. While two-year degrees are relatively uncommon, they

are now much better understood by the market and are attractive to international students with strong

English language skills and the ambition to enter the workforce quickly.

AIA Weaknesses: AIA comes to delivery of Analytics later than much of the competition. SP Jain have

been offering their degree in Analytics since 2017 and AIA has missed first mover advantage. In addition,

the AIA brand is unknown and commencing with a two-year degree will be seen by the more

conventional as challenging rather than enabling.

AIA Opportunities: Other than taking advantage of the trend towards analytics platforms and their use

in business decision making, AIA is entering a market where there is a clear gap. Firstly, the numbers of

competitors are low but also the competition is generally expensive, does not cater to middle income

international students and takes a more traditional approach to delivery and employer engagement. and

is high level of expertise and credibility.

AIA Threats: COVID-19 and the impact this will have on future study patterns, is a key and unknown

threat that will require AIA to launch in such a way that a move to on-line provision is practical. It is

likely that competitor such as MIT will move into the Bachelor of Analytics space, and that more

providers will offer Analytics as the 4th industrial revolution becomes more prevalent. How governments

react the deep recession that will surely follow in 2021/22 will also play a role. If Victoria restricts the

student migration route in response to fears over job losses amongst Australian voters then the market

will be smaller. Given this and the potential for more travel disruption, lockdowns etc. Online delivery

would seem a prudent measure.

SWOT Analysis Competitor Set Bachelor of Data Analytics

Strengths SP Jain - private provider with strong business brand, contemporary curriculum, employer links and embedded in key south Asian markets.

Weaknesses

SP Jain - expensive at around $90k tuition

fees for completion of bachelor degree.

Holmes – private provider with strong brand & Trimesters and mid-range fees MIT - strong brand and value fees Bond - strongest reputation and best facilities

Holmes Institute - business translation

focus weaker than SP Jain and AIA

RMIT & MIT - BA Analytics not available

to international students

Competitors have expensive fees.

Holmes, SP Jain at around $30k p.a.

public uni’s, $30k plus. GO8 $40k+ & high

entry requirements

Opportunities

SP Jain - opportunities to target their

feeder institutions and agents

Holmes - opportunities to target their

feeder institutions and agents

Swinburne -

Bond – Very expensive and can be

targeted

Threats

MIT is the only institution at the lower

price range of $7,000 per trimester or

around $43,000 for completion of an

undergraduate degree

MIT is seeking university college status

The Brand

Audience Analysis

AIA will deliver three different programs each targeted at slightly different customer or market

segments. These programs are:

• Program 1: Bachelor of Business Transformation

• Program 2: Bachelor of Analytics

• Program 3: Master of Business Transformation, Analytics & Design

Each of these programs delivers a different set of value or benefits (the ‘brand’) to the target consumer

groups. Importantly, these values or benefits will closely leverage from the broader Australian education

brand and the brand of AIA.

Who are the target consumer groups?

In each of the target countries (see Section 3), there are generally two different consumer groups for

any given program: students and parents.

Market research into consumer behaviour in international education reinforces that parents are a

significant influencer of the student’s choice of destination country, and institution – particularly at the

undergraduate level. In some countries, friends or peers will also influence the student’s decision.

Given the key differences between students and parents, the marketing channels adopted will vary

significantly to target each of these groups.

Consumer Profile Bachelor of Business Transformation

Student Parent

Completed final high school exams Aged late 40s to early 50s

Average academic performance Educated and in a professional career or owns a business

From a solid middle-class family who are value conscious and have sacrificed to send their children for overseas study

Likely to have relatives in Australia

Seeking post study working rights and is open to

permanent residency in the future

Likely to need to sell a property to send their child overseas

Has relatives in Australia, most likely in

Melbourne, less likely in Sydney or Brisbane, and

unlikely elsewhere

Joined a VET program directly in Australia

Is seeking a future proof bachelor's degree that

will enhance employment prospects further in a

rapidly changing world

Time and money are important and is keen to get

into the workforce as quickly as possible without

losing PSW rights

Consumer Profile: Bachelor of Analytics

Student Parent

Completed final high school exams

Aged late 40s to early 50s

Good academic background

Middle or upper class, quality conscious

Understands the move towards data and analytics in business decision making

Educated and in a professional career (or business)

Analytics courses not available in-home country Likely to have studied in Australia or have family

in Australia

Unable to afford public university and is looking to join the workforce quickly

Likely to be in the private school system

From value conscious middle-class family

Consumer Profile: Master of Business Transformation, Analytics & Design

Student Parent

Student Completed undergraduate degree in

Melbourne, Sydney or Brisbane

Solid academic background

Seeking an advantage in the workplace

From cost-conscious middle-class family

Parents supported students on bachelor's degree. Student needs to re-pay loan/use own savings for master's degree

Primary Audience Tier 1 (Must have their support and ear.)

Secondary Audience Tier 2 (Important, but not primary)

Other Tier 3 (Nice to have)

Agents Professional Bodies

Feeder Institutions Employers

Future Students

Parents of Future Students

Audience Description

Desired Behaviours

Current Mindset/ Routine

Barriers

Where they Access

Information

Agents Send students to AIA

Send students to Holmes Institute, SP Jain & MIT

Commission Rates, Lower Tuition Fees, Untried Proposition

Directly from AIA and from Students

Feeder Institutions Sign Progression Agreements with AIA

Send students to Holmes Institute, SP Jain & MIT

No incentive until AIA brand established

Students, Agents

Future Students Choose AIA over Holmes, SP Jain and MIT.

Look for opportunities to achieve permanent residency

No incentive until AIA brand established

Students, Agents

Parents of Future Students/Relatives in Australia

Choose AIA

Look for opportunities to achieve permanent residency

No incentive until AIA brand established

Students, Agents

Professional Bodies

Accredit AIA programs

Require their conditions to be met

No track record TEQSA, curriculum, faculty and students

Employers

Take AIA students for placements and WBT

Unsure Time and resources to establish relationships

Directly from AIA

Overarching Value Propositions

Student:

“AIA provided me with the best pathway to a career in analytics and business decision making. My

employer values me because I understand data and analytics and how to translate data into effective

decision making”

“A degree in Analytics with AIA was the right decision for me. It future proofed the investment my family

made in my education”

“A degree in Analytics helped me to build on my work experience both back home and here in Australia

to enable me to return home and add value to the growing family business”

“A masters with AIA enabled me to understand how to support business transformation through data

analytics. This allowed me to apply for and secure highly competitive Executive level roles and drive

effective change in my organisation”.

What is the Value Proposition for Primary Audiences?

Accessibility: AIA programs are both academically and financially accessible. They are degrees for the

real world and consequently focus on practical real-life skills. They can be undertaken successfully by all

students who have the motivation and the equivalent of an ATAR of 60 or an Australian bachelor’s

degree.

Flexibility: AIA programs are delivered through mixed mode delivery. Our teachers support and enable

students to direct their own learning. We know everyone’s circumstances are different and our degrees

are flexible enough to cater to that.

Efficiency: AIA programs are delivered through tri-semesters making for more efficient study completion

times of two academic years for the bachelors and 16 months for the masters. This allows students to

study more intensively, in ways more akin to the real world of work, and to enter employment sooner.

Target Markets

In order to have maximum market impact and to achieve recruitment targets, it is necessary for AIA to

focus its recruitment and marketing efforts on a select group of target markets.

In identifying the target markets, three factors need to be considered:

Historical performance: What are the largest current source markets? Which source markets have

had the highest growth?

Future growth potential: What source markets will generate the largest source of students for the AIA

products? What source markets will be the future growth drivers?

Market accessibility & profitability: What are the current barriers to market entry? How might these

change in the future? What are the costs per student of recruiting from the market?

Identifying the target markets requires both quantitative and qualitative analyses. This section presents

a quantitative analysis of the potential source markets for the undergraduate and postgraduate

provision.

Market Environment

As I don’t have access to Austrade MITS I am lacking data cross tabulated by study level and market for

this section.

Given the hiatus is 2020 that has seen a 6% fall in international students in Victoria the table below

shows the top sending markets for the calendar year 2019 for all levels of study. While it is anticipated

that South Asia will be a key offshore market it is expected that diversity in nationality will be achieved

in the first three years through on shore recruitment of students studying at other universities, ELICOS,

and in the VET system.

Source: Department of Education, Skills and Employment

The table below shows the share of international students who are enrolled in postgraduate studies—

both coursework and research—have increased since 2001, from 35 per cent in 2001 to 45 per cent in

2017. Between 2001 and 2017, average annual enrolment growth in Bachelor degrees was 4.3 per cent,

compared to 8.1 per cent for postgraduate research and seven per cent for postgraduate coursework. In

2020.

While the proportion of international students studying a Bachelor degree has declined from 56.1 per

cent in 2008 to 49.2 per cent in 2017, and the share of international students enrolling in postgraduate

degrees has increased from 37.5 per cent to 44.7 per cent over the same period, the undergraduate

market has grown by 20% since 2007.

Undergraduate Target Markets

Will add more in these sections when I have the data

Key offshore undergraduate markets for AIA are:

India, Sri Lanka, China, Hong Kong, South Korea and Nepal.

Postgraduate Target Markets

Will add more in these sections when I have the data

Key offshore postgraduate markets for AIA are:

India, Sri Lanka, China, Nepal, Vietnam, Colombia and Thailand

Marketing Channels

Marketing channels are the tools by which the brand is communicated to the key audiences in the target

markets. There are many different types of marketing channels. Institutions are increasingly becoming

more sophisticated in the use of diverse and creative marketing channels. The specific channels adopted

will largely depend on the target market segment and product and will vary by country (see over page).

Given the central role of agents as a marketing channel, the following section highlights AIA’s proposed

agent relationship strategy.

Examples of various marketing channels include:

• Advertising – mass market and targeted using various media

• Alumni profiling and events

• School visits and liaison with careers advisers

• Exhibitions and promotions

• Distribution networks – Agents

- Relationship management (familiarisation)

- Performance management

- Onshore and Offshore agencies

• Publications – collateral

• Public relations – editorial and advertorial

• Onshore Australian recruitment activities, particularly targeted at:

- English language or foundation students seeking undergraduate or postgraduate qualifications

- VET students seeking undergraduate or postgraduate qualifications

- Undergraduate students seeking further postgraduate qualifications

• Outdoor advertising and poster campaigns

Priorities

Key priorities for AIA in the first three years will be to establish strong onshore recruitment activities and

an effective agent network.

Agent Relationship Strategy

Education representatives or agents are a central and integral part of a successful in-country

recruitment strategy. Agents understand the local markets and, through their own marketing initiatives,

have access to the target markets and segments. Once a lead is generated, the agents role shifts to a

customer service and sales function to convert the lead into a finalised application.

Selecting Quality Agents

Given the central importance of the agent, it is essential that AIA attracts quality agents.

Over the last five years, the numbers of agents operating in the major source markets has exploded and

Higher Education now receives almost 75% of its international student intake via agents from 65% in

2014. This % is likely to be even higher for private providers.

Source: Department of Education, Skills and Employment

Agents vary considerably in terms of size and quality. As a result, some agents deliver higher levels of

service and produce good quality students. Through its connections and experienced staff, AIA has

extensive experience in managing agent relationships. A key factor in our success will be to select

agents across a diverse range of nationalities who can prioritise AIA recruitment, but also understand

our ideal student profile.

Box 1 outlines how AIA will identify a potential list of agents while Box 2 provides an outline of the key

criteria AIA will use in assessing the appropriateness of a potential agent.

Box 1 Four Steps to Identify Potential Agents Step 1. Identify agents currently used by private providers with competitor courses Step 2. Identify agents currently used by public and private providers in Melbourne Step 3. Assess whether these agents can deliver our ideal student profile and have experience within AIA key target markets

Step 4. Undertake due diligence process with short-listed agents

Box 2 Criteria for Identifying Quality Agents Years of operation Quality of current university clients Number & quality of current students Depth of market knowledge Quality of marketing campaigns Satisfaction of students British Council certification Other local quality standards Financially robust

Managing the Agent Relationship

Given that most quality agents represent multiple institutions, it is essential that AIA closely manage the

relationship. There are four key factors underpinning a successful agent relationship:

1. Strong performance incentives that include bonuses associated with both the number of students as

well as the quality of those students;

2. Close management of the relationship to ensure that the agent has an in-depth knowledge of the

products and delivers accurate and consistent selling messages; and

3. Investment in specific marketing initiatives to differentiate the products in the market and to drive

enquiries to the agent.

4. Delivering responsive support services for agents to ensure students receive timely information.

Through its staffing experience, AIA understands the strategies required to deliver on each of these key

factors. An outline of AIA's strategies in each of these areas is outlined below.

Performance Incentives

Success payment: This is often paid as a commission or percentage of first year’s tuition fees.

Percentages can range significantly depending on the market and cost of the program. Average

commission rates for higher education are around 10%-20% of first year tuition fees. As a private

provider we will be expected to be towards the higher end of this range. This approach provides an

incentive for the agent to sell higher value courses. In some cases, Australian institutions are moving

towards flat fees. To ensure agents deliver quality students, agent commissions are structured around

smaller follow-on commission payments when the student proceeds to subsequent years.

Retainers: In some countries, particularly higher cost markets such as Australia or China, some of the

leading agents require a retainer or upfront fee. This is normally only paid to reputable agents and goes

towards the marketing of the university in the market.

AIA Approach: While the specific remuneration or incentive schemes will vary by country and agent, in

general AIA would seek an aggressive remuneration scheme to ensure agents are focused on delivering

mutually agreed recruitment targets for the first year (as part of individual country marketing plans).

This will be necessary as AIA is late to the market and for the first 12 months at least will not be able to

leverage its brand and reputation. This may involve higher percentages for higher student numbers as

well as performance bonuses. AIA would review the relationships regularly and would renegotiate the

performance incentives for subsequent intakes.

Product Knowledge & Brand Protection

Ensuring the agents understand the AIA products and their unique selling points is critical. Furthermore,

as part of building and protecting the brand, it is essential that AIA actively manages the relationship to

ensure accurate and consistent selling messages are presented in the market.

To achieve these results, the AIA team will adopt a relationship management approach to agents.

This approach will include:

Developing a joint marketing plan: By developing a joint marketing plan for the agent/region, AIA will

work with the agent to establish clear quarterly performance targets for the agent. This will also set

expectations in terms of ongoing communication and reporting.

Regular communication, visits and reporting: Integrated as part of the overall marketing campaign,

regular market visits will demonstrate AIA's commitment to the market and the agent. Weekly or

fortnightly communication on the performance of recruitment initiatives will form an important part of

this communication.

Agent Familiarisation Visits & Workshops: Bringing key agents to AIA and Melbourne will provide them

with a hands-on experience of the product. These visits are recognised as an invaluable tool in ensuring

students receive accurate and consistent advice regarding the programs. Furthermore, these visits are

often structured as part of the agents or individual counsellors’ remuneration program.

Targeted Collateral for Agents: AIA will develop specific marketing collateral targeted specifically at

agents. AIA’s staff experience would indicate that developing specific training tools for counselling staff

is essential in leveraging the greatest value from the agent relationship. In addition, AIA will also develop

Agent guidelines and manuals which will include details on the admissions guidelines.

Integrated Marketing and Admissions: AIA admissions and marketing staff would also have the

authority to make offers to students. Integrating the marketing and admissions functions will maximise

the value from marketing visits and enable the agent to quickly close the sale.

Investment in In-Country Marketing

As a new entrant into the market, investing in in-country marketing to build the awareness of the

products and brand is essential. In many cases, quality agents will provide education institutions with

customised marketing services. This may include:

- The design and placement of advertisements in a range of media – from small targeted publications

to mass media advertising.

- The organisation of specialised seminars and interview programs normally combined with a local

advertising campaign.

- Marketing visits to potential supply channels – such as private local high schools.

- Networking events targeted at affluent parents within the target groups.

- Public relations and media profiling as well as a media monitoring service.

These marketing activities would also link with other in country marketing initiatives – such as the

exhibitions organised by the Austrade.

Unlike traditional advertising firms, agents have a direct incentive in ensuring that the marketing

activities generate the highest returns in terms of student enrolments. As outlined earlier, AIA would

work closely with the identified agents to develop a Country Marketing and Recruitment Plan. These

plans will highlight the proposed in-country marketing activities and provided a detailed budget for

these activities along with the anticipated returns. Where AIA either chooses not to use an agent in a

particular country or where the identified agent does not have the capability or expertise to undertake a

local marketing campaign, AIA will develop the Country Marketing Plan using its internal expertise and

other advertising partnerships.

Delivering quality service

It is important to note that a key element to a successful agent relationship is the provision of quick

responses to an agent’s request for information or offer letters on behalf of prospective students. AIA

would set internal service standards to ensure that agents requests are responded to as a matter of

urgency. AIA will use specific responsiveness performance metrics with its dedicated Admissions Team

to ensure the service standards are being achieved.

Top Line Implementation Time Frame

Priorities

Targets

Messaging

Brand Strategy

Target Markets

Marketing Channel

Sales Forecast

Given the unprecedented uncertainty of the times, I have provided 3 sales forecasts. All sales forecasts assume the following:

- A launch date of September 2021 - Study Centre fitted out to a high specification - A well-managed experiential learning programme - The opening of the Tasmanian border with Victoria and the rest of Australia without quarantine

by 1st January 2021 - The opening of International Borders without quarantine by end of July 2021 - An agent incentive scheme in year one

The forecasts assume a special introductory price of $7,995 dollars per tri-semester in year one at undergraduate level (6 tri-semester to complete the course), and $9,995 per tri semester at postgraduate level (4 tri-semesters to complete the course). Annual prices increase above inflation thereafter (and aggressively in year three). I have suggested we end our prices with a “95” wherever the opportunity arises as these are perceived as better value than rounded up amounts.