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Marketing*Strategy*Plan*
Joe*Carty*|*Morgan*Holzberger*|*Becca*Mulhill*|*Bre*Murray*|*Zach*Rudio*
S p r i n g * 2 0 1 5 *
******
Table of Contents
Executive Summary……………………………………………………………………………….3
Background & Introduction……………………………………………………….………………4
Situation Analysis…………………………………………………………………………………4
Macro-Environment……………………………………………………………………….4
Market Assessment………………………………………………………………………..7
Customers…………………………………………………………………………………7
Competitive Analysis……………………………………………………………………..7
Internal Situation Analysis……………………………………………………………….10
Organization……………………………………………………………………...10
Current Marketing Strategy……………………………………………………...11
SWOT Analysis…………………………………………………………………….……11
Marketing Objectives………………………………………………………………………...….12
Target Markets & Positioning……………………………………………………………………13
Marketing Plan…………………………………………………………………………………...14
Conclusion……………………………………………………………………………………….20
Appendix…………………………………………………………………………………………20
References………………………………………………………………………………………..25
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Executive Summary
LOI English was established in 2009 in Whitefish, Montana to teach English one-on-one over
Skype. They customize in personalized lesson plans, focusing on students by guaranteeing 80
percent of each class is the student speaking and practicing their English. With large markets in
Brazil, Spain and a recent loss of market share in Russia, LOI English is hoping to substitute
losses by entering the South Korean market. With an established presence in 124 countries, it is
imperative that LOI English strengthens and expands these relationships.
LOI English’s current focus is to find new markets, South Korea specifically, boost sales in
current markets and pursue non-traditional avenues due to a limited marketing budget. To boost
current sales in the United States market, LOI English will target business professionals by using
non-traditional avenues, including partnerships. With three main customer categories of
professional adults, students and children, it is crucial to reach each market in a specific, unique
way. Increasing the professional adults market will primarily take place in the United States,
with hopes of expanding into South Korea to expand both the student and children customer
base.
To reinvigorate LOI English’s brand presence, this plan will establish key partnerships to enter
into, key ways to enter the market in South Korea and a fiercer social media and branding
strategy. With a limited budget and human resources, it is recommended that LOI English
provide an internship opportunity, for credit, for a University of Montana School of Business
Administration student. Hiring a student as a social media intern will provide LOI English with
fresh ideas for social media strategy and allow key human resources to focus on other areas of
business.
Through four key recommendations and a full in-depth analysis of current practices, this plan
will highlight areas to focus on moving forward. Establishing a perception of LOI English in
relation to its competition was also an important factor in moving forward to hone in on the
competitive advantage LOI English has to offer.
Background & Introduction
With an attachment to teaching language after living in Argentina in 2009, Teauna Brosseau-
Peters wasn’t ready to stop upon arrival back in the United States. Wanting to keep in touch with
private students from Argentina and keep teaching, Teauna knew she needed a solution. This was
when Paul Peters built their first website with Teauna as the teacher; she could now continue
teaching and remain in contact with her previous students. LOI English took off from there and it
quickly needed a second teacher; Teauna recruited a teacher she knew from Argentina and she
remains one of its best teachers today.
Once LOI English continued growing with no slowing in sight, Paul quit his job to focus on LOI
English and take the business to its full potential; in October of 2010, LOI English has
incorporated as an LLC in the United States. Its logo, best described as a red circle with a small
orange circle on the upper edge, is a logo to which Teauna has grown rather attached. When she
would walk the streets in Buenos Aires, she noticed circle tiles encompassing a smaller tile in the
middle were rather common and she always became fascinated with them and take pictures. She
mentioned there has been discussion about a logo change, but her attachment for its current logo
and the memory of Buenos Aires is not fading anytime soon.
Situation Analysis
Macro-Environment
Current Situation
LOI English is currently active in 124 different countries around the globe. This means that there
are a tremendous amount of external factors and trends to consider when analyzing the external
factors affecting LOI English. Due to the short scope of this project and for the purpose of this
document we will only focus on the most pressing issues facing the company at the moment.
Some of the recent political actions taking place around the world, specifically concerning
Russia and other European powers, have put a large enrollment strain on the company. Students
hoping to take classes remotely have seen increased prices anywhere from 15 percent up to 100
percent depending on which area of the world they are trying to access content (Brosseau-Peters,
2015). These increases in price have been largely due to fluctuations in their local currency value
5*
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compared to the value of the US dollar. LOI English is hoping to counter these recent shifts
through increased marketing aimed at highlighting the many benefits its service provides. As we
discuss in the Competition section of this document, LOI English has distinct advantages over
much of its competition, but those advantages need to be properly voiced to LOI English’s target
markets.
Summary of Crucial Trends
The largest external factor facing LOI English is the fall of the Ruble in Russia. According to
LOI English, Russia was the company’s second largest market. Due to the recent political actions
taken by Russian officials, the value of its national currency sharply declined in 2014. LOI
English hopes to make up for this shrinking market through expansion into South Korea and
another few select countries. The company is seeing similar enrollment dips in its largest market,
Brazil, due to its falling national currency. The key short-term challenge we will help solve is
where LOI English should look instead to replace those lost customers. Looking into the future,
the company would like to be able to provide cheaper services to customers who are now unable
to access English classes due to the decisions of their governing body. LOI English is also
hoping to attract more customers within the US, primarily in undergraduate student programs.
(Brosseau-Peters, 2015)
Cultural Domain
Luckily, LOI English has made its service easy to access, regardless of the lifestyle of its
potential customer. If a potential customer has heard of the company, they can access its
offerings. Requiring only connection to the Internet and the Skype application, LOI English
maintains an advantage over competitors who require software downloads. Culturally, almost
every country in the world now values the ability to speak English. For better or worse, English
is becoming the global language. LOI English is poised to help the world achieve that goal.
Demographic Domain
The ability to articulate ideas and share experiences through a common language is becoming
increasingly important. LOI English’s target client can range anywhere from a young child to an
experienced international business professional to an elderly person hoping to expand their
knowledge through technology. We expect the target market to include students and
professionals with some expendable income and the desire to either travel or earn more money
based on international markets. The country of origin for the ideal customer is, for all intents and
purposes, irrelevant.
Economic Domain
The largest economic factor LOI English must recognize is the constant changes in foreign
currencies. When a foreign currency experiences a dip in value, LOI English’s customers see an
increase in the cost of the company’s services and offerings. With its top two markets currently
seeing dips in currency value, this is easily the most important external factor affecting LOI
English. In order to counter this trend, LOI English will need to find ways to increase awareness
and customer volume in all other markets to even the blow. It can be assumed that there will
always be an issue of this type - but hopefully not magnitude - affecting LOI English due to its
presence in many varying global economies.
Legal/Political Domain
The recent and future political actions taken by Russia are the most concerning legal and
political factors for LOI English. Potential sanctions, embargos, and the (hopefully small) threat
of war within the country makes Russia a nightmare with which to conduct business. As
previously stated, finding other markets with which LOI English can replace the lost Russian
market is critical.
Technological Domain
LOI English has distinct advantages over its competitors in a few key areas - class size, the
amount of potential instructors seeking employment with the company, and usability. The use of
simple, accessible technology gives LOI English a leg-up by providing customers with one of the
most widely known communication applications, Skype. By providing clients with one-on-one
classes and an online platform for course materials, LOI English can provide all of its essential
services from one place. Skype is a global company providing one of the best free
communication platforms available to anyone regardless of income, age, or geographic location.
7*
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These two factors, coupled with the overwhelming demand by global English teachers to work
for the company, give LOI English a tremendous advantage.
Market Assessment
Customers
LOI English has three types of customers: professionals, students and children; what binds them
together is their need to learn the English language. These professionals, between the ages of 26-
50, are university educated and need the flexibility of class times LOI English provides.
Professionals want to improve their English for work, travel, or schooling opportunities. Students
are often graduate students preparing for TOEFL or IELTS tests. Children, making up the final
target market, fall between the ages of 4 to 18 whose parents purchase classes. These parents are
often bilingual and purchase these classes to offer their children the same advantage. (Brosseau-
Peters, T. LOI English. [PowerPoint]. 2015)
Competitive Analysis
The top competitors for LOI English are Open English, English First. According to LOI, Open
English holds the largest market share in Central and South America. From our online findings,
it appears that English First holds a large share of the market in the U.S. and Japan. LOI English
has emphasized a greater focus on expanding its U.S. market and discovering or expanding a
new international market.
Currently, LOI English is priced higher than most of its competitors, but maintains a competitive
advantage in the quality of lessons and teachers available. All English classes are taught one-on-
one and personalized to the students needs. Each professor takes detailed notes and homework is
individually assigned. Other competitors focus mainly on group classes with English First being
the only other one to offer a few private classes. Open English emphasizes smaller groups than
its competition while English First struggles with enough teachers to fulfill its demand and
therefore teaches in large groups.
With a focus on the U.S. market, specifically business professionals, LOI English has a unique
opportunity to gain traction and expand its market share in this growing industry. No other
competitor offers the quality of teaching and student attention. Even though its prices are
significantly higher, it will be able to reach markets that its competitors cannot, especially within
today’s globalized corporate economy.
Open English
The main webpage for Open English appears in Spanish. It is a very professional looking
website, but does not include any pricing information. This is a tactic used to make customers fill
out an information request form to learn more. Open English can then use their information to
send out marketing materials. LOI's website is fairly basic and includes and promotional video
on the homepage and a similar menu. LOI, however, makes all pricing information available.
Open English has the advantage of being a larger company, owning the largest market share in
Latin America as well as being endorsed by several major media outlets. This may be an
opportunity for LOI to seek some of these media endorsements. This would add accreditation to
its services.
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English First: Englishtown
The main webpage for English First shows a few promotions and an entry form for consumers to
receive more information. This is similar to Open English except the form is immediately
available. It's pricing structure is a bit confusing because it is not clear exactly what is available
at each price. English first holds a large market share in several Asian countries. It maintains a
competitive advantage by offering 41 language centers around the world. This provides a
physical location for many students to be able to learn in person or online, giving them more
flexibility and options than its competitors. They offer both group and private classes whereas
LOI English only offers private classes, maintaining a competitive advantage through
personalized instruction.
Competitor Pricing Promotion Method Quality
LOI English
1 class: $24.99*
5 classes: $22.99*
10 classes: $21.99*
40 classes: $19.99*
*Cost per class
First class free;
occasional sales
One-on-one
Skype lessons;
after hours;
detailed notes
Personalized
lesson plan
Open English Not available online N/a
Small group
classes; live
24/7; native
English
teachers
Easy-to-use
website;
personal
advisors
English First:
Englishtown
$99 for 9 months
unlimited, 1 group
class, 1 private class
$1 for 14 days,
$69 after for
unlimited and
20 group
classes
Group and
private classes;
online study
materials
Personalized
lesson plan; on-
site language
centers
Competitor
Target
Market Customers Channels
Competitive
Advantage
LOI English
U.S., Brazil,
Spain, Japan,
Germany,
Italy, South
Korea
Professional
adults,
students and
children
Facebook, VK,
Twitter, Blog,
email, Google
search, Naver,
Viva Mundo,
website
High-end market
segment; one-on-
one lessons, high
quality; 80%
student speaking
Open English
U.S., Latin
America
(currently
250,000
students)
Corporations
and business
professionals
Word-of-mouth,
YouTube,
Facebook,
Twitter
Endorsed by many
large media outlets
English First:
Englishtown
Worldwide;
larger market
share in Asia
Children,
students and
professional
adults
Website,
Facebook,
Twitter, YouTube
41 language
centers worldwide,
opportunities for
students to study
English abroad
Internal Situation Analysis
Organization
Even with rapid growth, it has remained small in numbers with three official employees; Paul
Peters, CEO or GM; Luke Peters, Social Media and Marketing; and Teauna Brosseau-Peters,
business development, education, human resources and bookkeeper. Additional employees
include, Kate, educational director, curriculum development, hiring and teachers manager;
Daniel, programmer; Hugo, financial advisor and 30 contract employees working as teachers.
With a company valuing employee empowerment and mutual respect, a lot of autonomy and
trust exists; Teauna puts it simply by saying “we only hire people that we would like to hang out
with;” (email) their management style and business philosophy fall hand-in-hand. Contract
teachers of LOI English are offered good pay, respect and a flexible work environment allowing
them to work from home, during personal travels or while raising children. LOI English has big
aspirations for growth, hoping to be the best-integrated method for learning a language on a
worldwide scale, all based from here at home, Montana.
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Although its current market share is unknown, an estimated ⅔ of the global population are
English language learners with an online market of 1.3 billion people. LOI English currently has
500 students with 2014 sales around $550,000 and their current marketing budget is around
$1,900 monthly, or $22,800 on a yearly scale. Although it has allocated its budget on a month to
month basis, and are hoping to reallocate certain funds, rather than increase spending for new
initiatives.
Current Marketing Strategy
LOI English uses a combination of channels
including: Facebook, Twitter, VK, blog, Naver, Viva
Mundo and Google search. VK, Naver and Viva
Mundo all serve specific international markets.
LOI English is currently working to release a new
promotional video hoping for viral attraction, using
Twitter targeted campaigns and using MixPanel to
track its marketing efforts. Additionally, it is
working on a new homepage and calendar, as well as experimenting with new email
segmentation software.
Using current channels, while potentially implementing new methods, we plan to reinvigorate
these channels and use digital media to the full potential. Increasing awareness through digital
media campaigns and methods will allow LOI English to successfully reach its target market of
business professionals within the United States who may need to sharpen their business English.
SWOT Analysis
Strengths
LOI English has many strengths in it’s offerings. The first class a student takes is free, allowing
the student to try the program out without having to make a long-term commitment. Five
different types of classes are taught on a one-on-one basis, allowing teachers to create
individualized lesson plans based on what each student already knows and what they still need to
learn. These teachers are also available 24/7, allowing for students to take classes whenever is
most convenient for them. In addition, there is always study materials available online. LOI
English also has had an influx of teacher applications, making it easy for them to provide quality
instructors for their students.
Weaknesses
One of the biggest weaknesses LOI English faces is a small marketing budget. There are also
barriers when marketing internationally, including differences in marketing channels; the
controls placed on them, and language differences. There is also a lack of information regarding
valuable international markets.
Opportunities
There are multiple opportunities for LOI English to expand within the United States and
internationally. They can attract both young professionals and graduate students within the US,
as well as immigrants and international students planning on moving to the US. These
opportunities are accompanied by a massive growth in the e-Learning market. There are also
multiple opportunities for partnership with companies and universities to become the official
English language-learning provider. In addition, LOI English has a massive opportunity in the
Chinese and South Korean markets as a whole due to lack of competition.
Threats
A change in currency, and the effect of that on LOI English’s profitability is one major threat.
The company also faces a threat due to growth of the e-Learning market. Not only will LOI have
to hire, manage, and pay more employees, but there will also be an increase in competition. It is
also likely the company will face many hurdles while entering new international markets.
Marketing Objectives
Objective one: Increase customer base within the United States higher education market by 10
percent by creating partnerships universities and companies.
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Objective two: Increase demand within South Korea by 200% to substitute losses in Russia by
using Korean private schools and consulting firms.
Objective three: Increase business professional customer base within the United States through
partnerships and contracts with willing companies and educational institutions within a year of
plan implementation.
Target Markets & Positioning
Markets with high growth potential and a wide consumer base are essential to LOI English’s
ability to replace lost customers in their Russian market. By aiming at the following markets, the
company can gain access into segments with both high future growth potential and disposable
income to spend on furthering their English proficiency.
Primary: International high school students with intentions to study abroad, whose English is
not proficient for university acceptance - specifically concerning South Korea and South
America.
LOI English should target these sub-segments because they have the highest growth potential
compared to other markets. LOI English’s ability to provide teachers at all hours contributes to
increasing profits in these sub-segments. Today, the South Korean and South American
economies are developing. Although their economies are growing, LOI English must be aware of
the threat of changing currency values. Another threat, increasing awareness in a market, can
also create more competition.
Positioning: To international high school students who plan to study abroad but lack English
proficiency, LOI English offers online, flexible classes that allow these students to prepare for
the TOEFL in order to study in the United States. Students must meet a minimum TOEFL
requirement prior to enrolling at the collegiate level within the United States. By preparing for
the TOEFL test while still in high school, students eliminate the potential of having to take
summer English courses at their university. Students who do not meet the TOEFL requirement
prior to arrival are required to pay additional tuition dollars for these classes, which they could
save by using LOI English throughout their high school career.
Secondary: Non-proficient English speakers within the United States -- specifically including
(1) business professionals and (2) international students studying within the university system.
Targeting the sub-segment of business professionals, who are not proficient in English, opens an
opportunity for LOI English to help these professionals advance in their careers. Companies of
these business professionals would find this useful to help educate their employees. The second
sub-segment of international students studying within the university system provides a large
opportunity for LOI English. Some students hoping to enter the American university system are
not proficient enough to start taking extensive English courses. LOI English’s ability to provide
one-on-one classes would improve the international student's ability to learn.
Positioning: To non-proficient English speakers living within the United States, LOI English
provides online, flexible English classes that will increase students’ English proficiency and
allow them to better communicate within the workplace and university setting. Many U.S.-based
multinational corporations have overseas subsidiaries that hire local managers/employees who
may not be completely proficient in English. Examples of such needs may include call centers,
managers, or employees looking to move up within a company or travel/transfer to the U.S.
The international student population has increased by 8.4 percent over the previous academic
year. Many universities do not currently offer English programs but expect a certain level of
proficiency before admission. This justifies the need within these universities with growing
international student populations for on-site or third party English providers.
Marketing Plan
Recommendation one: Partner with U.S. universities and U.S. companies to improve English of
employees and students.
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Educational Institutions
By seeking out Universities with growing international student populations, LOI English can
attempt to partner with said institutions to provide English proficiency courses. Many campus
English learning programs require a certain level of English proficiency before a student is
permitted to join the ELI program. English USA is a national organization which contracts with
universities to provide English proficiency courses to students, often without academic credit
attached. (Englishusa.org, 2015)
A search in the English USA database for programs offering ‘General English, English for
Academic Purposes, and TOEFL Preparation’ yields 107 results, including: The University of
Florida, Washington, Montana, Oregon, Montana State University, Texas Christian University,
etc.
Although the list of English USA partner institutions offering the above services is quite vast, the
number dwindles by half when you add ‘Private Instruction’ to the search parameters. This
leaves a number of institutions that would gain a distinct advantage over their current partnership
by teaming up with LOI English to supplement at least the first stages of international student
English proficiency.
Below is a cost breakdown (excluding meals plans, insurance, and residence costs) retrieved
from the University of Montana’s ELI Program webpage as well as a table comparing LOI’s
prices per class. U of M has partnered with English USA to provide the campus’ English
proficiency courses. (English Language Institute, 2015)
Spring 2015 Summer 2015 Fall 2015 Spring 2016
Tuition
(Full-Time)
$3850 (18
hours/week)
$3850 (24
hours/week)
$3850 (18
hours/week)
$3850 (18
hours/week)
Tuition
(One Course)
$400 (2 hour
elective)
$400 (2 hour
elective)
$400 (2 hour
elective)
$400 (2 hour
elective)
Student Fees $900 $900 $900 $900
Supplies $150-$200 $150-$200 $150-$200 $150-$200
U.S. Companies
Right Now Technologies
Right Now Technologies is a cloud based customer service provider out of Bozeman, Montana.
Right Now was bought by Oracle in 2011, and continues to provide customer service through
call centers, the web, and social media (Oracle and Right Now, 2015). Many of the jobs at Right
Now require proficiency in English. For example, one position has a knowledge requirement of
“Strong written and verbal communication skills to coordinate with local and English oriented
teams” (Oracle Recruiting, 2015). According to their Professional Development opportunities
listed on their site, there are currently none relating to language expertise (Oracle Professional
Development, 2015). When hiring from outside of the United States, or hiring non-native
English speakers, Right Now could offer LOI English courses to incoming employees that may
need assistance in perfecting their language skills, allowing them to have stronger
communications with both colleagues and with customers. In order to create this partnership,
LOI English can make the following connections:
*See appendix for more information on Right Now Technologies
Recommendation two: Hire a social media intern
Another recommendation we have for LOI English is to hire a social media intern from the U of
M School of Business. Time is extremely valuable for small businesses. Spending an hour or two
each day updating social media leaves less time to expand its operations. Adding an intern to the
LOI English team would relieve pressure from its main employees, giving them more time to
focus on the big picture instead of these tedious tasks. The internship would normally be unpaid
with an opportunity for employment at the end or some kind of benefits/compensation if
employment is unavailable. Adding an intern would have little to no cost to LOI English. Some
compensation benefits might include reimbursement for travel expenses, a small bonus upon
completion of the program, or a recommendation to future employers. The intern would be a
Marketing or International Business major at U of M and have a passion for social media and
seeking to gain experience in these fields.
LOI Course Options and Prices Avg. Student
1 Class 10 Classes 20 Classes 40 Classes 12-15 Classes/month
$24.99 $22.99/class $21.99/class $19.99/class $289/month
17*
*
*See appendix for more information on hiring an intern
Recommendation three: Recruit students from private schools and consulting firms within
South Korea.
“11.2% of international students are from South Korea. Therefore, recruiting South Korean
students can be an effective marketing strategy” (Kim, 2014). Since South Korean students are a
large part of the international market it is imperative that LOI English capitalizes on that. To
increase demand in South Korea LOI needs to target students who are searching for international
schools. This will be done by building relationships with their high schools and working with a
consulting firm.
Many students from the following
high schools apply to colleges
abroad: Ewha Girl’s Foreign
Language High School, Daewon
Foreign Language High School,
Daeil Foreign Language High
School, Myungduk Foreign
Language High School, Soul Foreign
Language High School, Hanyoung
Foreign Language High School,
Korean Minjok Leadership
Academy, Chungsim International
High School, and Soul Global High
School (Kim, 2014). To effectively
reach this segment LOI English
needs to build a relationship with these schools. Ways to reach out to these schools would be
email or phone. “When colleges hold their own college fairs, briefing sessions or presentations at
high schools, students and their parents definitely attend them” (Kim, 2014). Just as colleges
recruit students at these schools, LOI would do the same. Once the relationship is established
(Potential*Ad)*
with a counselor or someone with a similar role in the school they could have information at
college fairs, have skype presentations, and/or send over marketing materials. To further
strengthen the relationship with these schools LOI English could run special promotions on their
classes for students attending these schools. The students would get a certain number of classes
at a discounted rate which will lead to increased enrollment.
When researching information about international schools students are constantly turning to the
Internet. An important online tool in South Korea for these students is consulting firms. Students
use these online consulting firms to search for schools, apply for schools, and search for multiple
international resources relating to education. A consulting firm that stands out from the rest
would be Uhak. Uhak is an online service for students who wish to study internationally. This
online firm not only works with universities, but they also cooperate with various educational
services (Kim, 2014). To work with this company, LOI English would need to purchase
advertising space on their website. Advertising on Uhak is an excellent idea, because of how
popular the site is. “[…]Uhak is one of South Korea’s largest agencies and has good brand
recognition[…]” (McAdam, 2014). The students who will be looking for schools online will
need resources to increase their English proficiency. This is where LOI English can tap into that
market. With a high traffic count on Uhak, many future students would gain exposure to LOI
English through online advertising. Referring to table 1, the cost of advertising on the website
varies on the size of the ad and the duration it will be on the site. For LOI to get a start on Uhak
it would be best to purchase the Classic Ad for $2,500 for 6 months.
AD Options AD Cost (US $)
1
month
3
months
6
months
12
months
Classic Ad C-1 - - 2,500 3,800
Premier
Special
P-1 Leader board 4,000 6,000 9,800 14,800
P-2 Floating Banner 3,500 4,200 6,200 9,800
P-3 Sliding Banner 3,300 3,700 5,200 8,800
19*
*
Country
Premier
CP-1 Left on Country Main
Page
- 3,400 4,700 8,100
CP-2 Right on Country
Main Page
- 2,400 3,400 5,800
Recommendation four: Re-branding and Social Media Strategy
Although LOI English is not in a place to go through a re-branding, these recommendations are
vital as they could have large future impacts. Implementing a re-branding and analyzing the
overall social media strategy will increase customer retention and company credibility.
Website:*Our*first*recommendation*regarding*a*reIbrand*is*a*new*website*design*that*sets*
the*tone*for*the*overall*brand*presence.*Upgrading*the*LOI*English*website*and*ensuring*
the*website*URL*matches*the*name*of*the*company*will*establish*credibility*and*minimize*
customer*confusion.**
*See*appendix*for*more*information**
*
Twitter:!Based*on*LOI*English’s*current*Twitter*strategy*and*activity,*it*seems*followers*of*
LOI*English*lack*interaction*with*the*posted*content.*Scott*Levy*discusses*retweeting*and*
states,*“Retweeting*is*one*marvelous*way*to*utilize*existing*content*to*build*your*following*
and*grow*your*brand,”*(Entrepreneur,*Levy,*2014).*He*further*explains*the*importance*of*
establishing*a*strategy*to*decide*how*often*Twitter*content*will*be*produced*within*the*
company*and*how*often*the*company*will*retweet*information*from*followers*and*friends.*
Levy*goes*on*to*say,*“some*people*recommend*that*only*20*percent*of*tweets*be*about*your*
product*or*service...I*prefer*a*50/50*split”*(Levy,*2014).*
*See*appendix*for*more*information*
*
Facebook:*Currently,*LOI*English*is*listed*as*“skypeenglishclasses.com”*on*Facebook,*which*
makes*it*difficult*for*users*searching*LOI*English.*Simply*changing*the*name*on*Facebook*
will*ensure*consumers*are*able*to*find*LOI*English*on*Facebook*and*view*content.**
Conclusion
Implementation of these recommendations over the next year will increase LOI English’s brand
presence and strengthen overall brand image. With a constantly evolving market and ever-
changing marketing practices, LOI English should re-visit its strategy often to re-structure
budget and best use its resources. Establishing a strong social media presence is rather important
because it is one of the few, free ways for LOI English to maintain an online presence.
Through building key partnerships, entering the South Korean market, hiring an intern and
continually evolving social media and brand strategy, LOI English will succeed in finding new
markets, boosting sales in current markets and pursuing non-traditional avenues.
Appendix
Marketing Budget
Monthly-Marketing-Budget-Breakdown- Monthly-Expense-
Uhak%Ad%(C*1)% $416%
Marketing%Intern% $100%
Facebook%Promotion% $500%
Other*%(Varying%by%month)% $900%
Total%Monthly%Spend% $1,916%
*Other%could%include%social%media%promotion,%
Google%Ad%campaign,%etc.%
%
21*
*
Survey
Due to unforeseen events, we were unable to distribute the survey and gather information. We
developed a survey that will best gather the information LOI English is seeking if desired in the
future.
23*
*
Other Material
Recommendation one: Right Now Technologies
Contact: Greg Gianforte, Founder of Right Now Technologies
Website: http://bozeman.com/contact-greg/
Twitter: @gianforte
LinkedIn: https://www.linkedin.com/pub/greg-gianforte/0/aa/794
Phone: (406) 522-4200
Address: 136 Enterprise Blvd, Bozeman, MT
Once a connection is made, the following points should be made during the pitch:
- LOI English provides one-on-one lessons specifically for business professionals, taught by a
native English speaker. These classes are easily tailored to the student’s language needs, whether
they need to start with the basics or brush up on some of the more advanced materials.
- Classes are available 24/7, which allows students to take their classes whenever works best for
their schedule, allowing the student to not worry about their classes overlapping with their work
schedule.
- LOI English is a Montana company. Working with the company would support local business
and in turn, the local economy. This will stimulate growth within Montana as a whole, creating a
greater range of both technological and non-technological opportunities throughout the state.
When partnering with Right Now, a wholesaling pricing strategy should be considered. This
strategy could be based around the number of students or the number of classes they can take.
This could have the same cost structure as when partnering with a university.
Recommendation two: Hiring an intern
Contact: Kathleen Tarkalson, Internship Director at University of Montana School of Business
Administration
Phone: (406) 243-6771
Email: kathleen.tarkalson@business.umt.edu
Office: Gallagher Business Building 328
Intern Responsibilities
• Maintain all social media outlets (Facebook, Twitter, VK, Blog, etc.)
• Learn LOI’s marketing strategy and adapt new strategies
• Work closely with all LOI’s employees
• Help create promotional videos/posters/ads
• Part-time (10-20 hours/week)
• Help implement the recommendations from this paper
Recommendation four: Rebranding and Social Media
• The*website*URL*(skypeenglishclasses.com)*does*not*match*the*company*name,*
which*can*be*confusing*and*unclear*to*customers.
• On*the*website*there*is*a*button*for*“Click*here*to*try*a*free*class,”*which*only*
appears*on*English*even*when*switching*the*website*into*other*languages.*Missing*
minor*details*like*this,*especially*as*an*educational*institution,*degrades*LOI*
English’s*credibility*and*depletes*brand*image.*
Twitter Recommendations
• Seek*out*influencers*or*invested*parties*within*the*English*learning*industry*who*
tweet*information*that*is*relevant*and*valuable*to*the*followers*of*LOI*English.*After*
research*and*identifying*these*influencers,*LOI*English*should*ensure*25%*of*its*
Twitter*content*is*retweets*from*these*influencers.
o Potential*influencers
! Learn*English*I*@englishpix
! SpeakIEnglish.org*I*@speak_english
• When*tweeting*content*directly*from*the*LOI*English*account,*be*sure*to*use*
multiple*types*of*content*including:*videos,*photos*and*short*phrases,*tips*or*quotes.*
Include*quick,*easy*to*read*content*that*does*not*require*your*follower*to*leave*
Twitter*and*view*an*external*link*to*a*video*or*article.
25*
*
References
(2015). Uhak. Retrieved from http://english.uhak.com/english/index.asp
Brosseau-Peters, T. (2015, February 10). LOI English - company situation [Online Interview &
PowerPoint].
Duncan, K. (2014, Nov 28). Korean agency Uhak.com acquired by Loyalist Group. Retrieved
from http://thepienews.com/news/korean-agency-uhak-com-acquired-by-loyalist-group/
English Language Institute. (n.d.). Retrieved April 14, 2015, from
http://www.umt.edu/international-programs/english-language-institute/program-dates.php
(n.d.). Retrieved April 6, 2015, from http://www.englishusa.org/study-english
Oracle and RightNow. (n.d.). Retrieved April 17, 2015, from
http://www.oracle.com/us/corporate/acquisitions/rightnow/index.html
Oracle Professional Development. (n.d.). Retrieved April 17, 2015, from
https://www.oracle.com/corporate/careers/work-at-oracle/professional-development.html
Oracle Recruiting. (n.d.). Retrieved April 17, 2015, from
https://oracle.taleo.net/careersection/2/jobdetail.ftl
Y Kim. (2014, Aug 26). Suggestions on Marketing to Korean Students. Retrieved from
http://services.intead.com/blog/suggestions-on-marketing-to-korean-students

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LOI English Final Paper

  • 2. Table of Contents Executive Summary……………………………………………………………………………….3 Background & Introduction……………………………………………………….………………4 Situation Analysis…………………………………………………………………………………4 Macro-Environment……………………………………………………………………….4 Market Assessment………………………………………………………………………..7 Customers…………………………………………………………………………………7 Competitive Analysis……………………………………………………………………..7 Internal Situation Analysis……………………………………………………………….10 Organization……………………………………………………………………...10 Current Marketing Strategy……………………………………………………...11 SWOT Analysis…………………………………………………………………….……11 Marketing Objectives………………………………………………………………………...….12 Target Markets & Positioning……………………………………………………………………13 Marketing Plan…………………………………………………………………………………...14 Conclusion……………………………………………………………………………………….20 Appendix…………………………………………………………………………………………20 References………………………………………………………………………………………..25
  • 3. 3* * Executive Summary LOI English was established in 2009 in Whitefish, Montana to teach English one-on-one over Skype. They customize in personalized lesson plans, focusing on students by guaranteeing 80 percent of each class is the student speaking and practicing their English. With large markets in Brazil, Spain and a recent loss of market share in Russia, LOI English is hoping to substitute losses by entering the South Korean market. With an established presence in 124 countries, it is imperative that LOI English strengthens and expands these relationships. LOI English’s current focus is to find new markets, South Korea specifically, boost sales in current markets and pursue non-traditional avenues due to a limited marketing budget. To boost current sales in the United States market, LOI English will target business professionals by using non-traditional avenues, including partnerships. With three main customer categories of professional adults, students and children, it is crucial to reach each market in a specific, unique way. Increasing the professional adults market will primarily take place in the United States, with hopes of expanding into South Korea to expand both the student and children customer base. To reinvigorate LOI English’s brand presence, this plan will establish key partnerships to enter into, key ways to enter the market in South Korea and a fiercer social media and branding strategy. With a limited budget and human resources, it is recommended that LOI English provide an internship opportunity, for credit, for a University of Montana School of Business Administration student. Hiring a student as a social media intern will provide LOI English with fresh ideas for social media strategy and allow key human resources to focus on other areas of business. Through four key recommendations and a full in-depth analysis of current practices, this plan will highlight areas to focus on moving forward. Establishing a perception of LOI English in relation to its competition was also an important factor in moving forward to hone in on the competitive advantage LOI English has to offer.
  • 4. Background & Introduction With an attachment to teaching language after living in Argentina in 2009, Teauna Brosseau- Peters wasn’t ready to stop upon arrival back in the United States. Wanting to keep in touch with private students from Argentina and keep teaching, Teauna knew she needed a solution. This was when Paul Peters built their first website with Teauna as the teacher; she could now continue teaching and remain in contact with her previous students. LOI English took off from there and it quickly needed a second teacher; Teauna recruited a teacher she knew from Argentina and she remains one of its best teachers today. Once LOI English continued growing with no slowing in sight, Paul quit his job to focus on LOI English and take the business to its full potential; in October of 2010, LOI English has incorporated as an LLC in the United States. Its logo, best described as a red circle with a small orange circle on the upper edge, is a logo to which Teauna has grown rather attached. When she would walk the streets in Buenos Aires, she noticed circle tiles encompassing a smaller tile in the middle were rather common and she always became fascinated with them and take pictures. She mentioned there has been discussion about a logo change, but her attachment for its current logo and the memory of Buenos Aires is not fading anytime soon. Situation Analysis Macro-Environment Current Situation LOI English is currently active in 124 different countries around the globe. This means that there are a tremendous amount of external factors and trends to consider when analyzing the external factors affecting LOI English. Due to the short scope of this project and for the purpose of this document we will only focus on the most pressing issues facing the company at the moment. Some of the recent political actions taking place around the world, specifically concerning Russia and other European powers, have put a large enrollment strain on the company. Students hoping to take classes remotely have seen increased prices anywhere from 15 percent up to 100 percent depending on which area of the world they are trying to access content (Brosseau-Peters, 2015). These increases in price have been largely due to fluctuations in their local currency value
  • 5. 5* * compared to the value of the US dollar. LOI English is hoping to counter these recent shifts through increased marketing aimed at highlighting the many benefits its service provides. As we discuss in the Competition section of this document, LOI English has distinct advantages over much of its competition, but those advantages need to be properly voiced to LOI English’s target markets. Summary of Crucial Trends The largest external factor facing LOI English is the fall of the Ruble in Russia. According to LOI English, Russia was the company’s second largest market. Due to the recent political actions taken by Russian officials, the value of its national currency sharply declined in 2014. LOI English hopes to make up for this shrinking market through expansion into South Korea and another few select countries. The company is seeing similar enrollment dips in its largest market, Brazil, due to its falling national currency. The key short-term challenge we will help solve is where LOI English should look instead to replace those lost customers. Looking into the future, the company would like to be able to provide cheaper services to customers who are now unable to access English classes due to the decisions of their governing body. LOI English is also hoping to attract more customers within the US, primarily in undergraduate student programs. (Brosseau-Peters, 2015) Cultural Domain Luckily, LOI English has made its service easy to access, regardless of the lifestyle of its potential customer. If a potential customer has heard of the company, they can access its offerings. Requiring only connection to the Internet and the Skype application, LOI English maintains an advantage over competitors who require software downloads. Culturally, almost every country in the world now values the ability to speak English. For better or worse, English is becoming the global language. LOI English is poised to help the world achieve that goal. Demographic Domain The ability to articulate ideas and share experiences through a common language is becoming increasingly important. LOI English’s target client can range anywhere from a young child to an experienced international business professional to an elderly person hoping to expand their
  • 6. knowledge through technology. We expect the target market to include students and professionals with some expendable income and the desire to either travel or earn more money based on international markets. The country of origin for the ideal customer is, for all intents and purposes, irrelevant. Economic Domain The largest economic factor LOI English must recognize is the constant changes in foreign currencies. When a foreign currency experiences a dip in value, LOI English’s customers see an increase in the cost of the company’s services and offerings. With its top two markets currently seeing dips in currency value, this is easily the most important external factor affecting LOI English. In order to counter this trend, LOI English will need to find ways to increase awareness and customer volume in all other markets to even the blow. It can be assumed that there will always be an issue of this type - but hopefully not magnitude - affecting LOI English due to its presence in many varying global economies. Legal/Political Domain The recent and future political actions taken by Russia are the most concerning legal and political factors for LOI English. Potential sanctions, embargos, and the (hopefully small) threat of war within the country makes Russia a nightmare with which to conduct business. As previously stated, finding other markets with which LOI English can replace the lost Russian market is critical. Technological Domain LOI English has distinct advantages over its competitors in a few key areas - class size, the amount of potential instructors seeking employment with the company, and usability. The use of simple, accessible technology gives LOI English a leg-up by providing customers with one of the most widely known communication applications, Skype. By providing clients with one-on-one classes and an online platform for course materials, LOI English can provide all of its essential services from one place. Skype is a global company providing one of the best free communication platforms available to anyone regardless of income, age, or geographic location.
  • 7. 7* * These two factors, coupled with the overwhelming demand by global English teachers to work for the company, give LOI English a tremendous advantage. Market Assessment Customers LOI English has three types of customers: professionals, students and children; what binds them together is their need to learn the English language. These professionals, between the ages of 26- 50, are university educated and need the flexibility of class times LOI English provides. Professionals want to improve their English for work, travel, or schooling opportunities. Students are often graduate students preparing for TOEFL or IELTS tests. Children, making up the final target market, fall between the ages of 4 to 18 whose parents purchase classes. These parents are often bilingual and purchase these classes to offer their children the same advantage. (Brosseau- Peters, T. LOI English. [PowerPoint]. 2015) Competitive Analysis The top competitors for LOI English are Open English, English First. According to LOI, Open English holds the largest market share in Central and South America. From our online findings, it appears that English First holds a large share of the market in the U.S. and Japan. LOI English has emphasized a greater focus on expanding its U.S. market and discovering or expanding a new international market. Currently, LOI English is priced higher than most of its competitors, but maintains a competitive advantage in the quality of lessons and teachers available. All English classes are taught one-on- one and personalized to the students needs. Each professor takes detailed notes and homework is individually assigned. Other competitors focus mainly on group classes with English First being the only other one to offer a few private classes. Open English emphasizes smaller groups than its competition while English First struggles with enough teachers to fulfill its demand and therefore teaches in large groups. With a focus on the U.S. market, specifically business professionals, LOI English has a unique opportunity to gain traction and expand its market share in this growing industry. No other competitor offers the quality of teaching and student attention. Even though its prices are
  • 8. significantly higher, it will be able to reach markets that its competitors cannot, especially within today’s globalized corporate economy. Open English The main webpage for Open English appears in Spanish. It is a very professional looking website, but does not include any pricing information. This is a tactic used to make customers fill out an information request form to learn more. Open English can then use their information to send out marketing materials. LOI's website is fairly basic and includes and promotional video on the homepage and a similar menu. LOI, however, makes all pricing information available. Open English has the advantage of being a larger company, owning the largest market share in Latin America as well as being endorsed by several major media outlets. This may be an opportunity for LOI to seek some of these media endorsements. This would add accreditation to its services.
  • 9. 9* * English First: Englishtown The main webpage for English First shows a few promotions and an entry form for consumers to receive more information. This is similar to Open English except the form is immediately available. It's pricing structure is a bit confusing because it is not clear exactly what is available at each price. English first holds a large market share in several Asian countries. It maintains a competitive advantage by offering 41 language centers around the world. This provides a physical location for many students to be able to learn in person or online, giving them more flexibility and options than its competitors. They offer both group and private classes whereas LOI English only offers private classes, maintaining a competitive advantage through personalized instruction. Competitor Pricing Promotion Method Quality LOI English 1 class: $24.99* 5 classes: $22.99* 10 classes: $21.99* 40 classes: $19.99* *Cost per class First class free; occasional sales One-on-one Skype lessons; after hours; detailed notes Personalized lesson plan Open English Not available online N/a Small group classes; live 24/7; native English teachers Easy-to-use website; personal advisors English First: Englishtown $99 for 9 months unlimited, 1 group class, 1 private class $1 for 14 days, $69 after for unlimited and 20 group classes Group and private classes; online study materials Personalized lesson plan; on- site language centers
  • 10. Competitor Target Market Customers Channels Competitive Advantage LOI English U.S., Brazil, Spain, Japan, Germany, Italy, South Korea Professional adults, students and children Facebook, VK, Twitter, Blog, email, Google search, Naver, Viva Mundo, website High-end market segment; one-on- one lessons, high quality; 80% student speaking Open English U.S., Latin America (currently 250,000 students) Corporations and business professionals Word-of-mouth, YouTube, Facebook, Twitter Endorsed by many large media outlets English First: Englishtown Worldwide; larger market share in Asia Children, students and professional adults Website, Facebook, Twitter, YouTube 41 language centers worldwide, opportunities for students to study English abroad Internal Situation Analysis Organization Even with rapid growth, it has remained small in numbers with three official employees; Paul Peters, CEO or GM; Luke Peters, Social Media and Marketing; and Teauna Brosseau-Peters, business development, education, human resources and bookkeeper. Additional employees include, Kate, educational director, curriculum development, hiring and teachers manager; Daniel, programmer; Hugo, financial advisor and 30 contract employees working as teachers. With a company valuing employee empowerment and mutual respect, a lot of autonomy and trust exists; Teauna puts it simply by saying “we only hire people that we would like to hang out with;” (email) their management style and business philosophy fall hand-in-hand. Contract teachers of LOI English are offered good pay, respect and a flexible work environment allowing them to work from home, during personal travels or while raising children. LOI English has big aspirations for growth, hoping to be the best-integrated method for learning a language on a worldwide scale, all based from here at home, Montana.
  • 11. 11* * Although its current market share is unknown, an estimated ⅔ of the global population are English language learners with an online market of 1.3 billion people. LOI English currently has 500 students with 2014 sales around $550,000 and their current marketing budget is around $1,900 monthly, or $22,800 on a yearly scale. Although it has allocated its budget on a month to month basis, and are hoping to reallocate certain funds, rather than increase spending for new initiatives. Current Marketing Strategy LOI English uses a combination of channels including: Facebook, Twitter, VK, blog, Naver, Viva Mundo and Google search. VK, Naver and Viva Mundo all serve specific international markets. LOI English is currently working to release a new promotional video hoping for viral attraction, using Twitter targeted campaigns and using MixPanel to track its marketing efforts. Additionally, it is working on a new homepage and calendar, as well as experimenting with new email segmentation software. Using current channels, while potentially implementing new methods, we plan to reinvigorate these channels and use digital media to the full potential. Increasing awareness through digital media campaigns and methods will allow LOI English to successfully reach its target market of business professionals within the United States who may need to sharpen their business English. SWOT Analysis Strengths LOI English has many strengths in it’s offerings. The first class a student takes is free, allowing the student to try the program out without having to make a long-term commitment. Five different types of classes are taught on a one-on-one basis, allowing teachers to create individualized lesson plans based on what each student already knows and what they still need to
  • 12. learn. These teachers are also available 24/7, allowing for students to take classes whenever is most convenient for them. In addition, there is always study materials available online. LOI English also has had an influx of teacher applications, making it easy for them to provide quality instructors for their students. Weaknesses One of the biggest weaknesses LOI English faces is a small marketing budget. There are also barriers when marketing internationally, including differences in marketing channels; the controls placed on them, and language differences. There is also a lack of information regarding valuable international markets. Opportunities There are multiple opportunities for LOI English to expand within the United States and internationally. They can attract both young professionals and graduate students within the US, as well as immigrants and international students planning on moving to the US. These opportunities are accompanied by a massive growth in the e-Learning market. There are also multiple opportunities for partnership with companies and universities to become the official English language-learning provider. In addition, LOI English has a massive opportunity in the Chinese and South Korean markets as a whole due to lack of competition. Threats A change in currency, and the effect of that on LOI English’s profitability is one major threat. The company also faces a threat due to growth of the e-Learning market. Not only will LOI have to hire, manage, and pay more employees, but there will also be an increase in competition. It is also likely the company will face many hurdles while entering new international markets. Marketing Objectives Objective one: Increase customer base within the United States higher education market by 10 percent by creating partnerships universities and companies.
  • 13. 13* * Objective two: Increase demand within South Korea by 200% to substitute losses in Russia by using Korean private schools and consulting firms. Objective three: Increase business professional customer base within the United States through partnerships and contracts with willing companies and educational institutions within a year of plan implementation. Target Markets & Positioning Markets with high growth potential and a wide consumer base are essential to LOI English’s ability to replace lost customers in their Russian market. By aiming at the following markets, the company can gain access into segments with both high future growth potential and disposable income to spend on furthering their English proficiency. Primary: International high school students with intentions to study abroad, whose English is not proficient for university acceptance - specifically concerning South Korea and South America. LOI English should target these sub-segments because they have the highest growth potential compared to other markets. LOI English’s ability to provide teachers at all hours contributes to increasing profits in these sub-segments. Today, the South Korean and South American economies are developing. Although their economies are growing, LOI English must be aware of the threat of changing currency values. Another threat, increasing awareness in a market, can also create more competition. Positioning: To international high school students who plan to study abroad but lack English proficiency, LOI English offers online, flexible classes that allow these students to prepare for the TOEFL in order to study in the United States. Students must meet a minimum TOEFL requirement prior to enrolling at the collegiate level within the United States. By preparing for the TOEFL test while still in high school, students eliminate the potential of having to take summer English courses at their university. Students who do not meet the TOEFL requirement
  • 14. prior to arrival are required to pay additional tuition dollars for these classes, which they could save by using LOI English throughout their high school career. Secondary: Non-proficient English speakers within the United States -- specifically including (1) business professionals and (2) international students studying within the university system. Targeting the sub-segment of business professionals, who are not proficient in English, opens an opportunity for LOI English to help these professionals advance in their careers. Companies of these business professionals would find this useful to help educate their employees. The second sub-segment of international students studying within the university system provides a large opportunity for LOI English. Some students hoping to enter the American university system are not proficient enough to start taking extensive English courses. LOI English’s ability to provide one-on-one classes would improve the international student's ability to learn. Positioning: To non-proficient English speakers living within the United States, LOI English provides online, flexible English classes that will increase students’ English proficiency and allow them to better communicate within the workplace and university setting. Many U.S.-based multinational corporations have overseas subsidiaries that hire local managers/employees who may not be completely proficient in English. Examples of such needs may include call centers, managers, or employees looking to move up within a company or travel/transfer to the U.S. The international student population has increased by 8.4 percent over the previous academic year. Many universities do not currently offer English programs but expect a certain level of proficiency before admission. This justifies the need within these universities with growing international student populations for on-site or third party English providers. Marketing Plan Recommendation one: Partner with U.S. universities and U.S. companies to improve English of employees and students.
  • 15. 15* * Educational Institutions By seeking out Universities with growing international student populations, LOI English can attempt to partner with said institutions to provide English proficiency courses. Many campus English learning programs require a certain level of English proficiency before a student is permitted to join the ELI program. English USA is a national organization which contracts with universities to provide English proficiency courses to students, often without academic credit attached. (Englishusa.org, 2015) A search in the English USA database for programs offering ‘General English, English for Academic Purposes, and TOEFL Preparation’ yields 107 results, including: The University of Florida, Washington, Montana, Oregon, Montana State University, Texas Christian University, etc. Although the list of English USA partner institutions offering the above services is quite vast, the number dwindles by half when you add ‘Private Instruction’ to the search parameters. This leaves a number of institutions that would gain a distinct advantage over their current partnership by teaming up with LOI English to supplement at least the first stages of international student English proficiency. Below is a cost breakdown (excluding meals plans, insurance, and residence costs) retrieved from the University of Montana’s ELI Program webpage as well as a table comparing LOI’s prices per class. U of M has partnered with English USA to provide the campus’ English proficiency courses. (English Language Institute, 2015) Spring 2015 Summer 2015 Fall 2015 Spring 2016 Tuition (Full-Time) $3850 (18 hours/week) $3850 (24 hours/week) $3850 (18 hours/week) $3850 (18 hours/week) Tuition (One Course) $400 (2 hour elective) $400 (2 hour elective) $400 (2 hour elective) $400 (2 hour elective) Student Fees $900 $900 $900 $900 Supplies $150-$200 $150-$200 $150-$200 $150-$200
  • 16. U.S. Companies Right Now Technologies Right Now Technologies is a cloud based customer service provider out of Bozeman, Montana. Right Now was bought by Oracle in 2011, and continues to provide customer service through call centers, the web, and social media (Oracle and Right Now, 2015). Many of the jobs at Right Now require proficiency in English. For example, one position has a knowledge requirement of “Strong written and verbal communication skills to coordinate with local and English oriented teams” (Oracle Recruiting, 2015). According to their Professional Development opportunities listed on their site, there are currently none relating to language expertise (Oracle Professional Development, 2015). When hiring from outside of the United States, or hiring non-native English speakers, Right Now could offer LOI English courses to incoming employees that may need assistance in perfecting their language skills, allowing them to have stronger communications with both colleagues and with customers. In order to create this partnership, LOI English can make the following connections: *See appendix for more information on Right Now Technologies Recommendation two: Hire a social media intern Another recommendation we have for LOI English is to hire a social media intern from the U of M School of Business. Time is extremely valuable for small businesses. Spending an hour or two each day updating social media leaves less time to expand its operations. Adding an intern to the LOI English team would relieve pressure from its main employees, giving them more time to focus on the big picture instead of these tedious tasks. The internship would normally be unpaid with an opportunity for employment at the end or some kind of benefits/compensation if employment is unavailable. Adding an intern would have little to no cost to LOI English. Some compensation benefits might include reimbursement for travel expenses, a small bonus upon completion of the program, or a recommendation to future employers. The intern would be a Marketing or International Business major at U of M and have a passion for social media and seeking to gain experience in these fields. LOI Course Options and Prices Avg. Student 1 Class 10 Classes 20 Classes 40 Classes 12-15 Classes/month $24.99 $22.99/class $21.99/class $19.99/class $289/month
  • 17. 17* * *See appendix for more information on hiring an intern Recommendation three: Recruit students from private schools and consulting firms within South Korea. “11.2% of international students are from South Korea. Therefore, recruiting South Korean students can be an effective marketing strategy” (Kim, 2014). Since South Korean students are a large part of the international market it is imperative that LOI English capitalizes on that. To increase demand in South Korea LOI needs to target students who are searching for international schools. This will be done by building relationships with their high schools and working with a consulting firm. Many students from the following high schools apply to colleges abroad: Ewha Girl’s Foreign Language High School, Daewon Foreign Language High School, Daeil Foreign Language High School, Myungduk Foreign Language High School, Soul Foreign Language High School, Hanyoung Foreign Language High School, Korean Minjok Leadership Academy, Chungsim International High School, and Soul Global High School (Kim, 2014). To effectively reach this segment LOI English needs to build a relationship with these schools. Ways to reach out to these schools would be email or phone. “When colleges hold their own college fairs, briefing sessions or presentations at high schools, students and their parents definitely attend them” (Kim, 2014). Just as colleges recruit students at these schools, LOI would do the same. Once the relationship is established (Potential*Ad)*
  • 18. with a counselor or someone with a similar role in the school they could have information at college fairs, have skype presentations, and/or send over marketing materials. To further strengthen the relationship with these schools LOI English could run special promotions on their classes for students attending these schools. The students would get a certain number of classes at a discounted rate which will lead to increased enrollment. When researching information about international schools students are constantly turning to the Internet. An important online tool in South Korea for these students is consulting firms. Students use these online consulting firms to search for schools, apply for schools, and search for multiple international resources relating to education. A consulting firm that stands out from the rest would be Uhak. Uhak is an online service for students who wish to study internationally. This online firm not only works with universities, but they also cooperate with various educational services (Kim, 2014). To work with this company, LOI English would need to purchase advertising space on their website. Advertising on Uhak is an excellent idea, because of how popular the site is. “[…]Uhak is one of South Korea’s largest agencies and has good brand recognition[…]” (McAdam, 2014). The students who will be looking for schools online will need resources to increase their English proficiency. This is where LOI English can tap into that market. With a high traffic count on Uhak, many future students would gain exposure to LOI English through online advertising. Referring to table 1, the cost of advertising on the website varies on the size of the ad and the duration it will be on the site. For LOI to get a start on Uhak it would be best to purchase the Classic Ad for $2,500 for 6 months. AD Options AD Cost (US $) 1 month 3 months 6 months 12 months Classic Ad C-1 - - 2,500 3,800 Premier Special P-1 Leader board 4,000 6,000 9,800 14,800 P-2 Floating Banner 3,500 4,200 6,200 9,800 P-3 Sliding Banner 3,300 3,700 5,200 8,800
  • 19. 19* * Country Premier CP-1 Left on Country Main Page - 3,400 4,700 8,100 CP-2 Right on Country Main Page - 2,400 3,400 5,800 Recommendation four: Re-branding and Social Media Strategy Although LOI English is not in a place to go through a re-branding, these recommendations are vital as they could have large future impacts. Implementing a re-branding and analyzing the overall social media strategy will increase customer retention and company credibility. Website:*Our*first*recommendation*regarding*a*reIbrand*is*a*new*website*design*that*sets* the*tone*for*the*overall*brand*presence.*Upgrading*the*LOI*English*website*and*ensuring* the*website*URL*matches*the*name*of*the*company*will*establish*credibility*and*minimize* customer*confusion.** *See*appendix*for*more*information** * Twitter:!Based*on*LOI*English’s*current*Twitter*strategy*and*activity,*it*seems*followers*of* LOI*English*lack*interaction*with*the*posted*content.*Scott*Levy*discusses*retweeting*and* states,*“Retweeting*is*one*marvelous*way*to*utilize*existing*content*to*build*your*following* and*grow*your*brand,”*(Entrepreneur,*Levy,*2014).*He*further*explains*the*importance*of* establishing*a*strategy*to*decide*how*often*Twitter*content*will*be*produced*within*the* company*and*how*often*the*company*will*retweet*information*from*followers*and*friends.* Levy*goes*on*to*say,*“some*people*recommend*that*only*20*percent*of*tweets*be*about*your* product*or*service...I*prefer*a*50/50*split”*(Levy,*2014).* *See*appendix*for*more*information* * Facebook:*Currently,*LOI*English*is*listed*as*“skypeenglishclasses.com”*on*Facebook,*which* makes*it*difficult*for*users*searching*LOI*English.*Simply*changing*the*name*on*Facebook* will*ensure*consumers*are*able*to*find*LOI*English*on*Facebook*and*view*content.**
  • 20. Conclusion Implementation of these recommendations over the next year will increase LOI English’s brand presence and strengthen overall brand image. With a constantly evolving market and ever- changing marketing practices, LOI English should re-visit its strategy often to re-structure budget and best use its resources. Establishing a strong social media presence is rather important because it is one of the few, free ways for LOI English to maintain an online presence. Through building key partnerships, entering the South Korean market, hiring an intern and continually evolving social media and brand strategy, LOI English will succeed in finding new markets, boosting sales in current markets and pursuing non-traditional avenues. Appendix Marketing Budget Monthly-Marketing-Budget-Breakdown- Monthly-Expense- Uhak%Ad%(C*1)% $416% Marketing%Intern% $100% Facebook%Promotion% $500% Other*%(Varying%by%month)% $900% Total%Monthly%Spend% $1,916% *Other%could%include%social%media%promotion,% Google%Ad%campaign,%etc.% %
  • 21. 21* * Survey Due to unforeseen events, we were unable to distribute the survey and gather information. We developed a survey that will best gather the information LOI English is seeking if desired in the future.
  • 22.
  • 23. 23* * Other Material Recommendation one: Right Now Technologies Contact: Greg Gianforte, Founder of Right Now Technologies Website: http://bozeman.com/contact-greg/ Twitter: @gianforte LinkedIn: https://www.linkedin.com/pub/greg-gianforte/0/aa/794 Phone: (406) 522-4200 Address: 136 Enterprise Blvd, Bozeman, MT Once a connection is made, the following points should be made during the pitch: - LOI English provides one-on-one lessons specifically for business professionals, taught by a native English speaker. These classes are easily tailored to the student’s language needs, whether they need to start with the basics or brush up on some of the more advanced materials. - Classes are available 24/7, which allows students to take their classes whenever works best for their schedule, allowing the student to not worry about their classes overlapping with their work schedule. - LOI English is a Montana company. Working with the company would support local business and in turn, the local economy. This will stimulate growth within Montana as a whole, creating a greater range of both technological and non-technological opportunities throughout the state. When partnering with Right Now, a wholesaling pricing strategy should be considered. This strategy could be based around the number of students or the number of classes they can take. This could have the same cost structure as when partnering with a university. Recommendation two: Hiring an intern Contact: Kathleen Tarkalson, Internship Director at University of Montana School of Business Administration Phone: (406) 243-6771 Email: kathleen.tarkalson@business.umt.edu Office: Gallagher Business Building 328 Intern Responsibilities • Maintain all social media outlets (Facebook, Twitter, VK, Blog, etc.) • Learn LOI’s marketing strategy and adapt new strategies • Work closely with all LOI’s employees • Help create promotional videos/posters/ads • Part-time (10-20 hours/week) • Help implement the recommendations from this paper Recommendation four: Rebranding and Social Media • The*website*URL*(skypeenglishclasses.com)*does*not*match*the*company*name,* which*can*be*confusing*and*unclear*to*customers.
  • 24. • On*the*website*there*is*a*button*for*“Click*here*to*try*a*free*class,”*which*only* appears*on*English*even*when*switching*the*website*into*other*languages.*Missing* minor*details*like*this,*especially*as*an*educational*institution,*degrades*LOI* English’s*credibility*and*depletes*brand*image.* Twitter Recommendations • Seek*out*influencers*or*invested*parties*within*the*English*learning*industry*who* tweet*information*that*is*relevant*and*valuable*to*the*followers*of*LOI*English.*After* research*and*identifying*these*influencers,*LOI*English*should*ensure*25%*of*its* Twitter*content*is*retweets*from*these*influencers. o Potential*influencers ! Learn*English*I*@englishpix ! SpeakIEnglish.org*I*@speak_english • When*tweeting*content*directly*from*the*LOI*English*account,*be*sure*to*use* multiple*types*of*content*including:*videos,*photos*and*short*phrases,*tips*or*quotes.* Include*quick,*easy*to*read*content*that*does*not*require*your*follower*to*leave* Twitter*and*view*an*external*link*to*a*video*or*article.
  • 25. 25* * References (2015). Uhak. Retrieved from http://english.uhak.com/english/index.asp Brosseau-Peters, T. (2015, February 10). LOI English - company situation [Online Interview & PowerPoint]. Duncan, K. (2014, Nov 28). Korean agency Uhak.com acquired by Loyalist Group. Retrieved from http://thepienews.com/news/korean-agency-uhak-com-acquired-by-loyalist-group/ English Language Institute. (n.d.). Retrieved April 14, 2015, from http://www.umt.edu/international-programs/english-language-institute/program-dates.php (n.d.). Retrieved April 6, 2015, from http://www.englishusa.org/study-english Oracle and RightNow. (n.d.). Retrieved April 17, 2015, from http://www.oracle.com/us/corporate/acquisitions/rightnow/index.html Oracle Professional Development. (n.d.). Retrieved April 17, 2015, from https://www.oracle.com/corporate/careers/work-at-oracle/professional-development.html Oracle Recruiting. (n.d.). Retrieved April 17, 2015, from https://oracle.taleo.net/careersection/2/jobdetail.ftl Y Kim. (2014, Aug 26). Suggestions on Marketing to Korean Students. Retrieved from http://services.intead.com/blog/suggestions-on-marketing-to-korean-students