The company will offer the owners experience and knowledge administrating educational institutes, to ensure that customers will focus on adding new clients, courses and programs, generating academic and business improvements which will impact their bottom line. The product will be a high technology workflow online platform that will make the clients´ life easier, leaving all the OTEC´s operational stuff to the company.

1. A Chilean educational industry example
December 2012
By:
Martin Meister

2. Value Proposition
 The company will offer the owners experience and knowledge administrating
educational institutes, to ensure that customers will focus on adding new clients, courses
and programs, generating academic and business improvements which will impact their
bottom line. The product will be a high technology workflow online platform that will
make the clients´ life easier, leaving all the OTEC´s operational stuff to the company.
The message is:
 “While you go for new businesses opportunities, new clients or academic improvements,
we will help you take care of the operational and administrative processes with quality,
ensuring reliability, security and information opportunity.”
 “You will operate your business from any part of the world, 24 hours a day.”
 We will help you with the documentation´s maintenance and storage to ensure quality
norm qualification and certification”.

3. Customers Profile
 Universities, Professional Institutes and Technical Training Centers that offer formation,
educational and training services for individual workers and companies in Chile.
 They are the Technical Training Agencies (Chilean OTECs).
 They are accredited and authorized by the government to provide courses and training
programs whose cost can be charged against the companies´ annual taxes expenditures.
 OTECs have to accomplish all the rules emanated by the ISO Quality Norms that involves
administration, logistics, infrastructure and staffing of the training activities, including the
potential students’ requirements.

4. Customers Needs
We have to distinguish that finally the target market consists in the OTEC´s owners or
managers that have the focus on the growth of their business, and sometimes only in their
survival.
With this in mind, mainly their needs are:
 Not waste much time administrating and operating the particularities of an OTEC.
 Have time to go for new clients, new products or academic improvements.
 Ensure the quality and continuity of their processes; to operate they have to maintain
the Norm certification.
 Operate in the simplest, friendliest and intuitive way as possible; remember that in
almost all the cases the user is a secretary or an administrative employee.
 Ubiquity, every partaker connected from any place.
 Reliability, security and opportunity of the data and information.
 Documentation storage and maintenance ready for inspection or certification.

5. 2% 3%
20%
44%
31%
OTEC´s size distribution according to
sales level, 2008
Large
Medium
Small
Micro
Without
sales
Source: SSI.cl & Sence.cl
Changes Between 2005-2010
Description 2005 2010 Diff
Investments (MM USD) 172 237 38%
Companies trained 48.131 22.405 -53%
Courses 165.047 172.119 4%
Training hours 20.021.617 27.711.298 38%
Participants 893.964 1.452.011 62%
100% tax exemption 81% 82% 1%
Hours/course 22 19 -15%
Participant/course 5 8 56%
Courses/company 3 8 124%
Source: Chilean Job and Training National Service (Sence.cl), 2012
 2,478 institutions
 67% concentrated in the capital Santiago
 5% are Large & Medium OTECs
 Large & Medium OTECs have the 45% of
the students
 Micro and Small OTECs have in between
3 & 4 employees
 Total OTEC´s sales from tax exemption
reached 237 million dollars in 2010
 38% of Market growth (2005/2010)
 22,000 companies trained
 172,000 courses given
 1,5 million participants
 28 million training hours

6. New Entrants
 Training educational industry lacks of professionalism, but
 Could attract big and established service providers.
 Vertical integration of OTECs and OTIC broker agencies.
Substitutes
 High inertia level of customers, having own “spreadsheets”
management systems.
 ERP Software providers .
Five Forces Analysis Model
Description Impact
Bargaining Power of Buyers MID-LOW
Bargaining Power of Supliers LOW
Existing Industrial Rivalry LOW
Threat from New Entrants HIGH
Threat from Substitutes HIGH
Source: Porter´s 5 forces from Mindtools.com

7. • Owners experience and knowledge of the educational industry
• Marketing, sales & process design experience, IT development savvy
• Product proved in the 5th OTEC of the market
Strengths
• Company is new to the market, competitor have more than 6 years
• Lack of legal and general Norms knowledge, like certification or firm creation
• Lack of technology backwards for hosting client´s information
Weaknesses
• Increasing Demand of OTEC´s quality improvements
• Low competition with few companies, not from de educational industry
• The government and companies are requesting more quality training programs
Opportunities
• Market concentration trends (OTECs and companies)
• High inertia level, OTECs have their own management systems
• Distrust in web bases software, some fear in cloud computing
Threats

8. Drive visits to the
website
Perform periodical
seminars &
meetings for
prospect customers
Make sales visits &
networking efforts
The Marketing Plan will be built on the basis of three
principal columns

9. • Sales efforts will be performed by two of the owners & a recruited salesperson
• Web based presentations with digital information, online demos and system access
• Networking will be a key for success, with attendance to seminars, association
events, government meeting, etc.
• The primary objective will be large and medium OTECs
• To support visits, there will be merchandising and folders with printed factsheets
1.- Direct Sales & Networking Efforts
• Webpage will be integrated with the online product
• Professional look with multimedia and social media capabilities
• Informative site, where customers will access white papers, demos, digital manuals,
catalogs and brochures
• Ability to capture prospects´ data through online application forms, capacity to
manage subscribers
2.- Webpage Development

10. • The main objective will be to drive visits to the website and promote the periodical
Informative Seminars
• Massive external e-mail marketing
• Segmented emails directed to OTEC´s owners, managers and employees
• Banner advertising in related sites like online magazines, supplier and trade portals
• Strong activity in social network sites like LinkedIn affinity groups
• Google Adwords (key word tools and banner advertising).
3.- Online Marketing Efforts
• Perform periodical seminars, chats and meeting for prospects and customers
• Topics will be related with the OTEC´s interests , besides showing the benefits of the
online coordinator system
• The owners and some guests will be the speakers
4.- Informative Seminars

11. • Partner with an educational industry supplier, an eLearning content developer. We
have the same customers, and we can make joint sales efforts and share some costs
• The other partnership will be made with some Training Agency Broker (OTIC), they
are very interested in improving the OTEC quality
• We can perform some seminars in the OTIC´s installations
5.- Business Partnerships
• Because of cost implications, the start-up will not make brochures , instead will use
folders with professional fact sheets and important information
• All the necessary information will be available for download on the website, prior
subscription
• The company will use a Marketing Agency to develop a logo and an initial image
6.- Sales Literature & Logo Design

12. Marketing Budget
Marketing Mix Unit Cost
(USD)
Quantity Total (USD)
Direct Sales Force 850,0 6 5.100
Merchandising 3,0 500 1.500
Image and Logo Design 1.000,0 1 1.000
Seminar costs 200,0 12 2.400
Webpage Develop 3.500,0 1 3.500
E-mail Marketing 100,0 25 2.500
Banner Advertising 1.000,0 3 3.000
Google Adwords Keyword Tool 1,0 3.000 3.000
Google Adwords Banner Ad 1,0 3.000 3.000
Total Cost 25.000
Source: From different quotations and self construction, 2012