Saturday, October 17, 2015

How to write business marketing research ?

Hello dear users. To understand better how to write business marketing researches, I decided to put a small case study done by me. This case study is about a school, its marketing strategies and etc.

Commentary on:
 


How effective is European School International Baccalaureate IB DP (11-12 grades) current marketing in order to compete well against competitors in Tbilisi, Georgia?

Introduction

   In 2007, LLC European School, owned by GIG group, entered Georgian education market. In 2010 European School got authorization of International Baccalaureate Diploma Program so student got education in English. When European School entered market of international education, market was already penetrated by other competitors, GZAAT (Guivy Zaldastanishvili American Academy In Tbilisi) and QSI (Quality Schools International). GZAAT and QSI held a great market power (They were considered as a market leaders), because after collapse of Soviet Union (1991), first school which could held non-Georgian students in Georgia, was QSI (opened in 1995), and GZAAT which was founded in 2001 and board of trustees included : TBC Group, Samgori 94 Group and Ernst&Young. GZAAT trustees were very famous and trustful Groups, so after GZAAT two students from first graduates were accepted in Harvard University, GZAAT reputation grew much quicker and it started penetrating in a market of international education.  To compete against competitors, European School offered Diploma recognized by many universities around the world and lower price. European School created action plan for board of directors which includes marketing strategy, SWOT analysis, school process design and occurred needs, human and finance resources, school mission and vision statements and priorities. European School marketing strategy is more concentrated on improving internal needs like product, staff, teacher’s quality , to fulfill student needs and physical environment (From marketing mix) (Supporting document 1)
However as competitors were already penetrated in the market, European School couldn’t attract students. In First graduate, European School IB DP had only 41 students. By word of mouth (which is very effective marketing trick), school could retained number of students for some time, but it was decreased slightly in 2014-15 (supporting document 4). So it is worth to investigate how effective European School current marketing is for competing with competitors and attracting new students in IB DP as on every student cost is same (because teacher’s salary is not variable cost it`s fixed cost) but revenue is bigger.
To understand better how can European School penetrated in the market, it`s good to use:

Primary research:
1) Interview with European School IB DP coordinator
2) Survey 2015
           
Secondary research:
3) Schools comparison (Number of students, Price, area and etc.)
4) Analyzing number of students in European School per year
5) Number of students graduate in university.


People

As any service, moreover schools rely on goodwill of employees,( Hoang, 448 ) European School administration pays big attention on IB DP teachers.
European school IB DP has teachers who are passionate about their subjects and can deliver good education to students. It has conformable human resources to educational process. There are 16 teachers in IB DP. Their educational qualification is adequate to requirements and gives IB opportunity to fully realize educational process. Among qualified staff (PHD holders), there are teachers who are authors of text-books: K.Maghlakelidze (English), P.babilua (Math), N.Pirtskhalava (History). School staff includes: qualified doctor, psychologist, administrational technical and assistant staffs.(European School)
Appearance and body language – Teachers have dress code (formal clothing) to give more professional image and studying mood to students. All teachers are experienced and know how to attract attention of students.
Aptitudes and attitudes – Teachers have sufficient knowledge to teach (as they are experienced), also they are attentive to the needs of students (additional lessons are held in case of student’s need).
Efficiency – Results (If graduates were accepted in universities) of students show that teachers are quite effective. (Supporting document 5)


Processes

Before student can move to European School IB DP, first of all he/she should take DP admission test. DP admission test helps school to understand if student is able to take DP program. If student pass the exam school fee is paid and student can attend lessons on school days. European school also provides bus for every student (who needs) to deliver to school. Also the school fee contains free lunch on every school day for every student. During lunch time students can go to canteen and eat various type of meal. One benefit of school is that if student can not afford to pay school fee on one payment, he/she can ask the school and he/she can pay fee partly.

Physical Environment
            School territory is 8125 meter squared while building is located on 4329 meter squared. Every class room is equipped with required equipments like individual bench (table) for every student, whiteboards and chairs as well.
There are 52 class rooms in total, from which 9 is occupied by IB DP (Science and geography rooms are shared with whole school, 2 room belongs to officials DP Coordinator, and IB Principle). In every class room there is book-case and 5 classes from IB DP are equipped with computer and projector. Also corridor and one class room is equipped with TV. All computers have access to internet. Also on 2nd floor school has school hall, where is located grand piano. School has its own cable TV which is good for promotion inside the school (about important news) and IB DP students can shoot film (annually school conducts film festival “golden butterfly”). Library belongs to whole IB (not whole school) which is equipped with 10 Desktop computers, books and bench and chairs, which creates ideal environment for studying. Every room has good design and is clean because IB DP has office cleaner. Every student who wants to participate in school activities and fulfill CAS requirements, school has football, tennis and basketball stadium.

Product
European School has product line (collection of related products). All the products are services. European School has 3 types of educational service: Georgian Section, where students are studying by Georgian Educational Plan, American High School and IB. It offers best price products for different segments depended on their wants (Students who wants to continue studying in Georgian university study in Georgian Section, who wants to continue studying in USA study in AHS and students who want to have internationally recognized diploma studies in IB).
            As it has been identified European School IB DP hold undesirable position. To analyze current situation, market map has been constructed based on number of student in different schools. Graph shows that the lowest price has European School IB DP, but price and number of children have positive correlation.

                                                (Supporting document 3)

            Also to evaluate which service was better, new data has been gathered, which shows how effective product is. (Supporting document 5).

Price
European School IB DP uses penetration pricing to take over competitors’ students and increase market share. It has equilibrium price, because its price is appropriate for the service which student gets. Also for the loyal customers of European School (students who studied in MYP or Georgian section before 11 grades) there is sale of almost 17 % if moved to DP. In 2010 European School IB DP market share was significantly higher than now. Graph below shows decline after IB DP was created.

                                     
Decline of number of students in IB (Supporting document 4)

To compete well against QSI and GZAAT European School IB DP has much lower price (Over 30 %) than competitors.


European School IB DP
14128 GEL (6000 Euro ) 1 euro =2,35 GEL  (National Bank of Georgia)
American Academy (GZAAT)
19000 GEL
QSI Tbilisi
22000 GEL
The table above shows price difference between schools (Supporting document 3)





The number of students’ comparison (Supporting document 3) tells us that despite the fact that European School IB DP has high quality service and lowest price, it has undesirable position in market and lowest number of students.





Place


European School has chosen good place which is located in Tbilisi, Saburtalo, Aleksandre Yazbegi District, which is considered to be near center of Tbilisi and the Area is bigger than GZAAT and QSI (Supporting document 3). Also there is bus stop near school and school location is easily accessible. In front of school, there is goods and stationary shop. With a place European School is in the best position compared to their competitors QSI and GZAAT.



Promotion

Promotion for European School is very important to attract more students. But it is school`s weakness that it doesn`t invest a lot in a promotion. Techniques which are used to promote European School are only advertising by banners in the street. Only banner which is located on airport`s exit is a good way to attract more international students. As they come from different countries by plane, banner could attract their attention and they maybe visit school for more information. Also airport is mainly accessed by audiences (who have financial resources to pay the school fee) which could appear very beneficial for school. Survey (Supporting document 2) shows us how effective technique is.


Conclusion
            To sum up as European School marketing is more concentrated on internal affairs (People, Physical environment) it`s marketing is not quite effective to compete against competitors and penetrate in market. As European School IB DP has high quality service and possibility to hold more students, marketing would be more effective if European School invested more in promotion. I suppose that if European School will invest more in above the line promotion like TV advertisements and in below the line promotion like holding student conferences it can attract more students and increase awareness about school in society. TV advertisement is quite effective as it has big audience and it`s researched several times and access to researches is public (which channel has what kind of audience, which is most popular channel and etc.)   ( Eurasia Partnership Foundation) holding conferences is also good way for promoting the school, as targeted audience (students) will get know to school physical environment, people and other features while attending conferences.
            As we see from the commentary, European School IB DP lower price marketing is not yet effective as with only low price it can`t compete well against competitors as students number does not increase (Supporting document 3). If school wants to compete with competitors by choosing best price in educational market, it should also promote the fact that high quality service is for low price. So to invest in promotion is necessary, or else as trend shows (Supporting document 3), number of student will decrease and school can face cash flow problems, so school will be forced to increase price.
            Obviously school marketing, to improve student`s needs (Internal affairs) is quite effective, because European School competes very well with competitors in features (Supporting document 3) and from research many students chose European School IB DP because of unique features (Supporting document 2). So on the other hand marketing is effective.
            All things considered, European School IB DP marketing is effective in a way, but as research shows it is not enough to compete well against competitors in terms of increasing number of students, so it still needs to be improved.

Bibliography

Hoang, Paul. International Baccalaureate Business and Management. 2nd ed. Victoria: IBID,     2011. Print.

"National Bank Of Georgia." National Bank Of Georgia. N.p., n.d. Web. 29 Jan. 2015. <https://www.nbg.gov.ge/index.php?m=582>.

"Graduates." European School. N.p., n.d. Web. 29 Jan. 2015. <http://www.europeanschool.ge/pages/kd/)>.

European School. "Teachers." European School. N.p., n.d. Web. 29 Jan. 2015. <http://www.europeanschool.ge/en/pages/about/teachers/>.

"FAQ." European School FAQ. European School, n.d. Web. 29 Jan. 2015
<http://www.europeanschool.ge/ib/pages/ib/faq/>.

"Gzaat." Gzaat. American Academy in Tbilisi, n.d. Web. 29 Jan. 2015.

<http://www.gzaat.org/#!program/cfvg>.

"QSI." QSI. Quality Schools International In Tbilisi, n.d. Web. 29 Jan. 2015.
<http://qsi-tbilisi.weebly.com/academics.html>.

 Eurasia Partnership Foundation. "The Georgian Media: Popular Assessments and  development Perspectives." The Georgian Media: Popular Assessments and Development Perspectives Report (n.d.): n. pag.Epfound.ge. 2012. Web. 7 Jan. 2015. <http://www.epfound.ge/files/media_report_final_eng_print_1.pdf>.

 


Appendices

Supporting document 1

Interview’s Date: January 15, 2015
Interviewee’s Information: Tamar Lomidze, European School IB DP class teacher

Summary of the interview:  The interview has been conducted face to face with European School IB DP class teacher, Tamar Lomidze, at the European School. The interview lasted approximately for an hour. For the accuracy the interview was recorded and then summarized in the written form.

The purpose of the interview: To learn more about European School features, quality of service and how well it competes against competitors . The information gathered from this interview will primarily be used for the research purpose in order to build up and strengthen the commentary paper.

-------------------------------------------------------------------------------------------------------------------------

1. From our previous conversation, you have identified that European School IB DP, faced many problems, since it was opened. Can you please elaborate more on this issue?

Before European School IB DP entered the market, there was an oligopoly power held by QSI Tbilisi and American Academy in Tbilisi. They held the price level approximately the same. They offered high quality service of international education. Georgia obtained independence only in 1991 (after collapse of Soviet Union) and QSI Tbilisi was opened in 1995 (First international school). After 6 years, in 2001, American Academy in Tbilisi was opened. At that time there were only two schools in Georgia, where you could get education in English and opportunity to graduate abroad. So, till now, they had quite big time to increase fame and reputation in people. Only in 2007 European School was created.  But in 2007, QSI Tbilisi and American Academy in Tbilisi were not considered as competitors for European School, as it only offered education in native language. In 2010 European School introduced a new, different educational system, International Baccalaureate Diploma Program (DP, 11-12 grades.), which gives student an opportunity to get more than education, to become an independent learner, critical thinker, and challenging. Also International Baccalaureate (IB) DP was different and better from competitors by strong partnership between universities and recognized diploma. It is obvious that IB should have gained popularity and fame in people but people were not interested in IB, as competitors were already penetrated in a market. For attracting students, IB offered lower price than competitors (over 30 % lower) with a high quality of service. So the problem European School IB DP faced problems of penetrating in the market.

2. What kind of marketing strategies did European School IB DP chose in order to compete well against competitors?

To compete well against competitors, European School tried to improve the interior and exterior of the school. School strategy was to improve internal needs and invested a big amount of money in an attractive design and equipment like computers, scanners, printers and etc. Every class is equipped with tables, chairs, computer, projector, 2 whiteboards (one for chock and second for marker) and book case. Also IB DP was located on the 6th floor of the school and whole floor belonged to it. Also all stakeholders of IB DP were considered and elevator was built for only IB (it goes from 1st floor to 6th only). Also 6th floor design was different from other. In the middle of corridor there was built a small rest-room with a comfortable arm-chairs. For IB DP students there was created library on the 6th floor, which is equipped with computers and books. Also school marketing strategy was to create a fully-secured school, which was done by hiring security (6 security collaborator a day, 15 - total). Security makes sure that students’ will be secured in a school and students’ will not miss the lessons and leave school earlier. For more security, school is equipped with cameras inside and outside of school territory.

3. Did European School IB DP face problems while hiring the teachers?

As IB DP was a different type of education, it was hard for school to make decision which teachers to hire. So for this reason, new professional team of HR was created, which took responsibility of holding job interviews and hiring new teachers. I want to mention that every newly hired teacher, was send to a trainings of IB abroad, so administration was sure that teacher’s could give best education to students. There are 16 teachers in IB DP which are all qualified in their subjects.

4. For what reason students should move in IB DP?

If students want to get high quality education, become an independent learner, thinker, and if he/she is ready to undertake new challenges, IB DP is the best choice. We offer the best quality education by qualified teachers, in a best, educational aura. All students’ needs are considered, so they will not face any problem. We also offer the easiest process of paying the school fee: fully or partly, monthly, quarterly. We offer the best service and an internationally recognized diploma. Also European School IB DP offers the lowest price, compared to the competitors. It should be considered that European School is located in the best place : near to center, near to stationary and shop, easy accessible place, 30 meters till bus stop.

5. Is school administration satisfied with number of students in IB DP?

 As European School IB DP has possibility to hold more students than it has right now, it should have more students, because it is operating in educational market for over 4 years, administration and staff have sufficient experience and knowledge and it can give to students’ best education in Tbilisi, Georgia. Also from the resources which were invested in creating European School IB DP, administration had more expectation, so school administration is not satisfied with the number of students.

Supporting document 2

Survey 2015 to determine how effective and perfect service is provided by European School IB DP

I want to thank you for taking time to fill out this survey. Your responses will be kept confidential and will be used only for research purposes.
-------------------------------------------------------------------------------------------------------------------------
20 IB DP students participated in a survey

  Rate European School IB DP aspects:

1.Academic personnel (teachers)

 bad
 satisfactory
 excellent

2. Easy organizational structure

bad
satisfactory
excellent


3. Teacher’s accessibility (After classes)

bad
satisfactory
excellent

4.Faculty/Student ratio

bad
satisfactory
excellent

5. Library effectiveness

bad
satisfactory
excellent

6. Equipment accessibility 

bad
satisfactory
excellent

7. International staff ratio

bad
satisfactory
excellent

8)How did you know about the European School IB DP?

9)What was the main in your decision-making process when moving to European School IB DP ?


Survey Findings:

            Randomly chosen 20 IB DP students rated 7 precisely chosen aspects and answered 2 asked questions. The survey showed that the teacher’s are qualified and professional so they can give best service to student. Also easy organizational structure is ideal - administration is ready any time to answer student’s question and consider students needs. To give best service teacher’s accessibility is also ideal: Every teacher is ready to stay. Faculty/student ratio (how many student’s are in class) is excellent as maximum is 1:15 on Native Language Classes. Despite the equipment accessibility, which is on highest level, school should improve their library, as there is low number of books and increase number of international staffs (as in international school, there should be not only non-Georgian student’s but staff’s as well). Certainly most students know about school by word of mouth, but at the same time promotion banner near airport is also quite effective. Notably the most students’ were persuaded to move in European School IB DP, because of Physical Environment and a good service on a second place.

1) Rate academic personnel (teachers)


Bad
Satisfactory
Excellent
0 %
10 %
90 %



2) Easy organizational structure (communication between administration and students)


Bad
Satisfactory
Excellent
0 %
0 %
100 %




3)
Teacher’s accessibility (After classes)

Bad
Satisfactory
Excellent
5 %
10 %
85 %




4) Faculty/Student ratio


Bad
Satisfactory
Excellent
5 %
0 %
95 %




5)
Library effectiveness



Bad
Satisfactory
Excellent
20 %
65 %
15 %



6)
Equipment accessibility (printer, scanner, photocopy)


Bad
Satisfactory
Excellent
0 %
0 %
100 %




7)
International staff ratio




Bad
Satisfactory
Excellent
65 %
25 %
10 %



8)
How did you know about the European School IB DP?


Word of mouth
Promotion
Other
45 %
35 %
20 %




9) What was the main reason in your decision-making process when moving to European School IB DP ?



Physical Environment
People
Process
Place
Product
Price
35 %
20 %
0 %
10 %
25 %
10 %




Supporting document 3
             Schools comparison


Market Map





The graph below reflects the number of students in each school in 11-12 grade. It shows us that despite the fact that European School IB DP has high quality service and lowest price, it has undesirable position in market and lowest number of students.




Price comparison 2014-2015 academic year


European School IB DP
14128 GEL (6000 Euro ) (https://www.nbg.gov.ge/index.php?m=582) 1 euro =2,35 GEL retrieved 29.01.2015 19:40
American Academy (GZAAT)
19000 GEL
QSI Tbilisi
22000 GEL
(Information from European School Marketing Manager)

Distance from Center of Tbilisi


European School
2 Kilometers
QSI Tbilisi
9 Kilometers
American Academy (GZAAT)
7 Kilometers

European School
Building : 4329
Yard : 3796
Total : 8125
American Academy (GZAAT)
Building : 2327
Yard : 2473
Total : 4800
QSI Tbilisi
Building : 3323
Yard : 3661
Total : 6984



Area (Current asset)



Features
Scholarship
Athletics
Creativity
Cable TV
Concert hall
European School
N/A
Soccer, Basketball , Tennis , Table tennis, Karate,
Music, Art
Yes
Yes
American Academy (GZAAT)
Yes
Soccer, Aerobic, Swimming, Dance
N/A
N/A
N/A
QSI Tbilisi
Yes
Soccer, Volleyball, Basketball
Music
N/A
N/A

Features


Features
Library
International staff
Faculty/student ratio (1:15)
Qualified teachers
Access to technology(Xerox, Printer, Scanner)
European School
2
Yes
Average 1:10
Yes
Computer, Printer, Xerox, Scanner
American Academy (GZAAT)
1
Yes
Average 1:30
Yes
Only computer
QSI Tbilisi
1
Yes
Average 1:32
Yes
Only computer



Supporting document 4

Number of students per year in European School from 2011

Summary of the graph
            As we see from the graph, number of students were retained in 2011-2013 years but in 2014 it started declining.









Supporting document 5

University Admissions of IB DP graduates 2014

#
Name
Universities where they got admitted
1
Abbas Nejad Susan
Utrecht University, The Netherlands
2
Alavidze Mariam
Szeged Medical School, Hungary
3
Asatiani Manana
New York University, USA
4
Gigauri Eka
SKEMA Business School, France
5
Gutsaev Michael
Wagner College, USA
6
Kharshiladze Nikoloz
Royal Holloway, UK
7
Kvaratskheliya Alexander
Queens University Belfast, UK
8
Mamatelashvili George
Glasgow Caledonian University, UK
9
Mdivani Natia
Toulouse Business School, Barcelona, Spain
10
Meskhi Maria
Wagner College, USA
11
Mirianashvili Lizi
Exeter University, UK
12
Adeishvili Nikoloz
Kingston University London
13
Samushia Rezo
Tallinn University of Technology, Estonia
14
Shengelia Ana
European University, Germany
15
Takaishvili Sandro
ISM University of Management and Economics, Lithuania
16
Tavassolian Mohammad
Tallinn University of Technology, Estonia
17
Tevzadze Tornike
London South Bank
18
Tutarashvili Luka
University Exeter University, UK
19
Zhvania Anna
Bocconi  University, Italy


University Admissions of IB DP graduates 2013

#
Name
Universities where they got admitted
1
Abulashvili Ilia
BES La Salle University – Barcelona, Spain
2
Aduashvili Ana
Frederick University – Cyprus
3
Antidze Tamar
University of New York in Prague, Czech Republic
4
Chelidze Mariam
Anglo-American University, Prague, Czech Republic
5
Kacharava Guranda
Erasmus University Rotterdam – Rotterdam, Netherlands
6
Katamadze Vakhtang
SciencesPo. University - Le Havre, France
7
Katsanashvili Mariam
IE University – Segovia, Spain
8
Khoshtaria Lasha
National Medicine University name A. A. Bogomolec, Ukraine
9
Kikoria Tamar
IE University – Segovia, Spain
10
Kipiani Levan
University of Birmingham - Birmingham, UK
11
Korchilava Tamar
Erasmus University Rotterdam – Rotterdam, Netherlands
12
Morchiladze Nata
Erasmus University Rotterdam – Rotterdam, Netherlands
13
Orjonikidze Mariam
Univerzita Karlova (Charles University) – Prague, Czech Republic
14
Phkhovelishvili Tornike
University of Tartu – Tartu, Estonia
15
Seskuria Nika
Herriot-Watt University – London, UK
16
Sharangia Lorenzo
Erasmus University Rotterdam – Rotterdam, Netherlands
17
Sikharulidze Niko
University of Wuerzburg – Wuerzburg, Germany


University Admissions of IB DP graduates 2012

#
Name
Universities where they got admitted
1
Bejuashvili Giorgi
Glion University – Montreux, Switzerland
2
Cheishvili Vakhtang
Lindenwood University – St. Louis, USA
3
Chkhaidze George
Jacobs University – Bremen, Germany
4
Gogichashvili Nino
Lazarski University – Warsaw, Poland
5
Guchmazova Vilena
British High School for Design, Moscow, Russia
6
Guchmazova Violetta
Marlston College – Adelaide, Australia
7
Kakhetelidze Jaba
Toulouse Business School – Toulouse, France
8
Karseladze Elene
John Cabot University, Rome – Italy
9
Kldeiseli Tamar
Lazarski University – Warsaw, Poland
10
Liparteliani Natia
Erasmus University Rotterdam – Rotterdam, Netherlands
11
Nakeuri Elene
University of Buckingham – UK
12
Razmadze Tornike
University of Tartu – Tartu, Estonia
13
Sekhniashvili Salome
Kingston University – Kingston, UK
14
Sharangia Mariam
University college London UCL– London, UK
15
Sichinava Mariam
National Medicine University name A. A. Bogomolec, Ukraine
16
Sinjiashvili Anastasia
Kingston University – Kingston, UK
17
Vacheishvili Salome
Bard College – Berlin, Germany
18
Zhgenti Nino
Lindenwood University – St. Louis, USA
(European School)






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