Gabbitas Education - Sales and Marcom Strategy

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Sales and marketing planning for Gabbitas Education, the UK’s leading educational consultancy and guide publisher.
1 - How to implement an integrated strategy that meets teachers, parents and students’ needs across multiple marketing channels
2 - How to maintain a competitive position

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  • My name is Samuel Chatelain and I am going to present to you the sales and marketing plan for Gabbitas Education, the UK’s leading educational consultancy and guide publisher. I will explain how to implement an integrated strategy that meets teachers, parents and students’ needs across multiple marketing channels and how Gabbitas Education can maintain a competitive position.
  • The findings of the SWOT analysis enables me to identify internal strengths and weaknesses as well as to be aware of potential threats and take advantage of market opportunities. Strategic planning calls for regular marketing audit to identify new business and new product development opportunities. Key findings include the following: - Internal costs have been out of control for the last couple of years but assets invested were effective in generating gross profit and sales revenues- Pupils with special needs usually come from less privileged backgrounds, subject to price elasticity- Marketing to parents is more commonly accepted since they are encouraged to get involved in education by governments- Spending on school books is down and promotions rely on mailing and representatives
  • Improving branding and increasing share of voice on social media and networks are two key routes to achieve differentiation and greater marketing mix performance. Another one could be to rise quicker ROI and productivity while starting an upscale strategy and develop greater business relationships with key partners and players. Gabbitas Education would revitalise, reposition and update itself or even innovate with new products and services to lead or follow customer trends. Yet, priority target segments will favour a unique and holistic selling proposition. These strategic recommendations will lead into budgeting campaigns across online and offline channels with above and below the line advertising and marketing activities.
  • Depending on the level of interest and the level of influence of some of the external stakeholders, I will keep satisfied and informed some of them, monitor and manage closely others. Key to implementing a strategy is the people behind it and the leadership skills to set short and long term goals. I will make a priority to develop good working relationships with key stakeholders, the team and external agencies.Conducting regular marketing reports won’t replace the necessary consultation of local representatives on the marketing mix strategy.Ultimately, I will attempt to offer customers with attractive, easy-to-read, easy-to-understand marketing materials that inspire them to use Gabbitas Education services and provide intermediaries with the information and tools required to promote the Gabbitas’ brand.
  • What are the barriers and triggers of educational audiences? There is a number of factors to take into consideration such as:1- The graduation rates. For instance, girls outperformed boys – except in Switzerland; even in Japan or Korea 2- The tuition fees paid are in average of £2,500 up to seven times this.3- The class size is ordinary of 24 students per classWhat are the key country market opportunities? There are the following:a) Eastern European countries are best placed but out of reach in a competitive marketa) Iceland, Japan, Korea and Norway are key differential markets with high tuition fees and high class sizesb) Ireland and Mexico are difficult markets due to a low class size but above UK norms of 19 pupils per class and lower pass rates c) Australia and the USA are highly competitive markets to British offering of educational services.
  • The pricing strategy for the consultancy and membership business of Gabbitas Education aims to stabilise as quickly as possible the cost structure, raise productivity, upscale consultancy fees and introductory commissions but keep membership fees worthy at a steady rate. For the publication and subscription business of Gabbitas Education, acting as a publisher and author of two annual guides, prices offered would vary within the chain of intermediaries. Normally, various trade discounts are offered to libraries and college bookstores (15%-20%), independent bookstores (40%) and large chains and distributors (50%-55%). Giabbitasmay offer volume discounts for representative agents who buy more than 5 or more than 10 copies of any of the two guides, at a fraction of the cost to receive advisory or guidance services. Examples of book distributors include: WH Smith, Ebay, Pickabook, Open-Uni, Blackweel, Amazon,Ingham.
  • The advertising and acquisition campaigns will need to be planned across a period of three years per category of products and services (see colour code). It will aim to avoid reiteration but make sure that a prime customer experience is promoted on a quarterly basis and monitored monthly. The retention activities are then organised in line with the advertising in main media. Each stream will follow a distinct story line with individual key messages tailored to specific targeted audiences and value propositions.Examples of key messages- The motto for the brand advertising could be: “Gabbitas Education: the global experts in British independent education”. - The value proposition for customer retention could be: “Gabbitas can offer a specialist service and individual guidance to you”.PR and advertising are key drivers to increase share of voice. There is an opportunity to see the campaign more often by linking editorial opportunities and featured articles in the press. But choosing media, in combination with attempting to generate synergistic effects is far from easy. The strong points and flaws of each media and the characteristics of the targeted audiences need to be considered when deciding the optimum media mix.
  • Parents, students, schools and teachers can be reached through a number of channels, both online and offline. The value chain of intermediaries will convey messages, increase visibility to customers and raise backing of key players in the education industry. Marketing communications activities for Gabbitas Education can comprise onsite and online promotion with an emphasis on brand experience and display advertising. Field marketing, organic search, email and mobile marketing are key channels for targeting pupils. The marketing strategy, along with its media buying plan, would need to be integrated across several channels to connect better with prospective customers. The delivery of an integrated marketing strategy will require the use of project management techniques to deliver each element of the promotional mix across various channels: direct and digital marketing; relationship management and social media; advertising, PR and media partnerships; dynamic web content, link-building and viral marketing.
  • Everyone talks about it because leads from social media concentrate on quality not quantity. So let’s discuss about the costs and benefits to embrace social media. Two statistics: 80% of purchases usually start by a search if not a referral; 93% of buyers expect companies to have social media presence.Social media builds online learning communities. It boots organic search and increases lead conversions. Most importantly it develops students’ learning experience. The costs of social media originate usually from wasted resources for knowledge management or customer services. But when the benefits surpass the costs, a brand like Gabbitas Education, gains in closeness with its students, schools and teachers: they won’t easily switch to the competition. The most active user will become an ‘ambassador’, at no extra cost, and produce terrific word-of-mouth effects.
  • The use of the balanced scorecard framework leverages linkage between performances at different stages: (1) financial levels, (2) customer perspective, (3) internal business process, and(4) innovation & learning angles. I can then look at evaluating pipeline performance in order to optimise each marketing channel. Therefore it simplifies new planning, forecasting and budgeting when and where necessary. - To survive: ensure revenue goals per category and geographical zone are achieved;- To succeed: repeat business, build brand equity and enhance marketing channel reach;- To prosper: augment customer experience and grab new business opportunities.Beyond setting and planning the strategy, leadership and managerial challenges would need to be addressed through regular meetings and monitoring of sales levels and marketing activities. Most importantly good communication would be a central point to ensure colleagues are fully briefed and familiar with campaign timelines and budgets which are monitored all the way through to the management team using KPIs that could include boosting qualified web traffic, number of books sold and conversion rates.
  • To sum-up, my priorities will be:Develop the overall marketing planning and budgeting;Buildgood working relationships with stakeholders;Agree on Sales and Marketing objectives, price policies and cost structure;Design and distribute all marketing deliverables on time;Evaluate pipeline performance and report to management team.Thank you for listening. And please feel free to ask questions.
  • Gabbitas Education - Sales and Marcom Strategy

    1. 1. Sales and Marketing Strategy UKs leading educational consultancy and guide publisheroffering advice and support in all aspects of independent education Presented by Samuel Chatelain 16 March 2012 S.P. Chatelain © 2012
    2. 2. Gabbitas’ marketing audit (SWOT analysis) Undertake market research and develop overall marketing planning and budgeting to support a £1.4 million turnover education services company with 28 employees part of ProspectStrengths Weaknesses1.Dedicated multilingual team 1.Net profit : -49% (costs out of control from 57% GPM)2.Education Company Award 2.£1m acquisition of Dotnology Ltd3.Strong copyright revenues 3.Lack of effective social media presence, loyalty scheme4.Effective in generating 4.Static website and low PR• profits from every assets (0.62, 2011;0.40, 2010) and 5.Traditionally steady branding• sales (£50K per staff) by using its assets (ROE: 2.54) 6.Books must be sold at low pricesOpportunities Threats1.AAB grades "likely filled by most privileged 1.Spending on school books is down backgrounds“ less subject to price elasticity. 2.Little centralised selling – promo rely on mailing and reps.2.Private schools are relying more on foreign students 3.Five schools send more to Oxbridge than 2,000 others‘3.Marketing to parents, who are encouraged by the 4.Buyers are ‘buying clever’, postpone spending until late government to get more involved in education 5.0.3% fewer pupils in 2015.4.Weak British pound and Government’s online 6.Seasonal business (holidays ) learning with resources free on the BBC website 7.Girls outperformed boys except in Switzerland5.Internet/WOM is predominant
    3. 3. Five routes to strategic advantages Business/Product Offering Old/Existing – improve the way of strategic decision New/Creative – change the direction of strategic thinking Route 1 – Key Factor Success Route 4 – Aggressive initiativesCompete wisely allocate resources where they will be most effective in relation to KFS Direct competition with new business or new products Intensify functional Improve branding Encourage New tech, sector trends differentiation valued by users Increase share of Reduce class size Enhance services with competitor’s clients to voice on social media Increase user loyalty CfA advices switch brands with 1- Open a Nordic rep. for Cost of remaining Create a sense of differentiated Image issues 2-3 TutoringTM School’s membership Norway and Iceland community Route 2 - Relative superiority Route 5 – Strategic degrees of freedomAvoid head-on competition Exploit competitors relative weakness using price or cost leadership Embrace innovations in products or markets where no competitors exists Price advantage, scaling Cost structure leadership Maximise user benefits Maximise customer Better price/value Pricing decision flexibility Enhance tutor or satisfaction/intimacy communication in all Rise ROI/fees/ prod guardian relationship New web enabled distribution channels Start upscale strategy Launching new FEdS support services and by getting talents business partnership e-newsletters membership Route 3 – Focus or Niche Development of unique product features (but imitation may come onto the market) Determine a specific competitive advantage that may be gained within a particular market segment Where can we become more experienced than competitors? By publishing guides? S.P. Chatelain © 2012
    4. 4. Stakeholder analysis and process flow Build strong relationships with stakeholders support initiatives and liaise with group marketing teamExternal stakeholders Internal support networkBuild good and effective working relationships Implement effective processes Interest in the project • Allocation of campaign responsibilities and workloads, daily management of the team, and Low High weekly liaison with management. High Keep satisfied Manage closely • Provide staff and intermediaries with the Press/PR Competitors information and tools required with print andPower to deliver the project Journalists Interest groups electronic media. education magazines Social Media • Provide strategic and quantitative feedback Pupils/Student platforms in English and meaningful reports to management team Families Online communities on marketing activities’ performance Intender and existing and networks • Implementation of efficient systems across the clients board and strategic development of marketing activities Monitor Keep informed • Adapt existing material to the needs of the Associations, clubs and Suppliers local market through consultation on other bodies, Schools, higher pricing, service specification and media Institutional, regulatory education strategy and develop appropriate tools and supervisory bodies; universities • Colleagues are fully briefed and familiar with Partners: British Council, Marketing agencies campaign timescales. Low TDA, DfE S.P. Chatelain © 2012
    5. 5. Audience characteristics: Teacher pay, tuition fees paid by120 families, pass rates for male or female students in different class sizes worldwide100 80 60 40 20 0 Men Female Class size£40,000 Graduation rates£35,000£30,000£25,000£20,000£15,000£10,000 £5,000 £- Source: OECD Estimated tuition fee Teacher pay S.P. Chatelain © 2012
    6. 6. UK independent schools Schools for Special NeedsPrice list for two guides UK EU Other UK EU Other Price policies and trade discountsCover price/RSPWholesale price SRP £ 19.49 £ 22.49 £ 29.49 £ 29.50 £ 32.50 £ 39.50 55% £ 8.77 £ 10.12 £ 13.27 £ 13.28 £ 14.63 £ 17.78School price 20% £ 15.59 £ 17.99 £ 23.59 £ 23.60 £ 26.00 £ 31.60 Price policies on the fees Trade discounts for the guides Stabilise cost structure, raise productivity, upscale consultancy fees and introductory commissions, keep membership fees worthy Price Promotion Price Price skimming Pricing penetration customised Well- Growing Loyalty Frequent selling audience clients services Ref/cing USA High High- value season clients Kindle Europe China Summer Early Japan Korea schools birds
    7. 7. Acquisition and retention programmes Quarterly Gabbitas ‘ brand advertising and customer development Apr-June 2012 July-Sept 2012 Oct-Dec 2012 Jan-Mar 2013Brand Advertising “Gabbitas Education: the global experts in British independent education” 1. Choosing GCSE 1. higher 1. Become a 1. Educational or A Level education and Residential or Assessment subjects careers Private Tutor 2. Interview 2. Search for guidance 2. Gold, PlatinumProduct/Service Techniques and Schools in The 2. Services for or DiamondPromotions Practice Independent Teachers Guardianship 3. School’s Schools Guide 3. Annual Schools services for membership 3. Stowe Summer for Special overseas and mgmt. School Needs studentsTactical Provide students and Supply premium families with Offer incentives Recruitment ofAcquisition reminders to meet consultancy service for bi-annual two teachers, tutors andMessages for independent deadlines for taking guides publication guardians schools up servicesCustomer Essence “Gabbitas can offer a specialist service and individual guidance to you” Ensure users are Develop customers to Present users with Entice members inCustomer confortable with purchase the latest information and advertising on theRetention their dedicated client annual guides in reasons to use Schools Directory andMessages relationship co- hardcopy or for further education by attending the ordinators kindles consultancy services Education Expo S.P. Chatelain © 2012
    8. 8. Integrated and Directories and link building Meta search iSEEK, bloggers RS infotechMulti-Channel Online marketing sites Social media e-Learning MentorsStrategy Internet and online communities E-tools and Tips for EducatorsMake readily available all marketing Virtual App Marketingcollaterals, branded promotional aids and sales Brochures Newsstandtools for targeted audiences in all channels Digital Marketing Pay Per Click Display Advertising Advertising SEO Affiliate Marketing DM and EM Newsletters overseas Live brand Direct and Experiential and experience Digital Marketing field Marketing Touring Road aims for direct Direct selling Onsite Shows response multichannel promotion Leaflet Face to Face distribution Relationship Marketing Poster display Management and Social Telephone 24/7 customer and lean graffiti Media builds booking/advice service Advertising, P user intimacy R, media SEO optimises partnerships Associations ATL, IATEFL organic Societal bring search; PPC, Partnerships Exchange awareness link-building The Teacher and increase increase viral Channel schemes share of voice Marketing Press kits intermediaries Education Education Magazines Marketplace Trade discounts Outlets, wholesa TSL Education,SOURCE: direct2education.com, insight.thestudentroom.co.uk, linkcommunication.co.uk lers TES S.P. Chatelain © 2012
    9. 9. Why embrace Social Media now?1. Provide a casual place Employees Customers of learning • Enhance students2. The new PR and • Social CRM Revenue Side learning experiences important SEO tool • Insight • Build on online generation from3. Produce very high Social Media learning community • Offer immersion in a conversion on leads (FaceBook, foreign language4. Significant marketing Twiter) environment data and consumer feedback • Encourage5. Provide effective • Knowledge students/pupils to Management Cost Side collaboration and express their own Communities thoughts communication • Employee • Customer service suggestion support brainstorms communities S.P. Chatelain © 2012
    10. 10. Measure performance: balanced scorecardKey strategic Financial Customer Goals Measures Goals Measuresissues Survive Cash flow Brand image Competitors user1.Daily Credit rating switchingmanagement ofpersonnel Succeed Revenue growth Satisfaction Customer2.Develop experience ratingsindividual Prosper Repeat businessmarketing Retention Membership andplans/budgets to subscriptionachieve targets renewal3.Monitor activities Internal Business Innovation & learningthroughout the Goals Measures Goals Measuresteam (setting of Excellence Quality of service Learning curve Time to excellenceregular targets) and delivery4.Provide feedback Training 360 appraisalson performance tomanagement team Alliances Quality of Improvement Time to market5.Implement strategic alliancesefficient systemsacross the board S.P. Chatelain © 2012
    11. 11. Thank you for listening To sum-up Here are my top priorities for Gabbitas Education’s sales and marketing strategy: 1 • Undertake market research and develop overall marketing planning 2 • Build strong relationships with external and internal stakeholders 3 • Determine communications objectives, derive pricing policies 4 • Make readily available all collateral and branded promotional tools 5 • Evaluate channel performance and report to management S.P. Chatelain © 2012

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