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
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 Prospect
Strengths Weaknesses
1.Dedicated multilingual team 1.Net profit : -49% (costs out of control from 57% GPM)
2.Education Company Award 2.£1m acquisition of Dotnology Ltd
3.Strong copyright revenues 3.Lack of effective social media presence, loyalty scheme
4.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 prices
Opportunities Threats
1.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 Switzerland
5.Internet/WOM is predominant
6. UK independent schools Schools for Special Needs
Price list for two guides UK EU Other UK EU Other
Price policies and trade discounts
Cover price/RSP
Wholesale 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 £ 17.78
School 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
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.