Interpret market trends and developments

BSBMKG507 – Task 2
Student Name:
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Market Analysis Report

Introduction
Provide an overview of the business, including its business/strategic objectives, as well as its marketing
and overall business performance.

The purpose of this report is to do an overall marketing analysis of King Edward VII College a
Registered Training Organization (RTO) that provides training to students in business and management.
The main objectives are:
 Lead the category of vocational education and training
 Gain notoriety to establish and maintain high quality infrastructure supporting clients and staff
 To be well led, high performing, profitable and accountable
 To develop our people and resources
The organization marketing has their decisions based on extensive and continuous market
research, targeting market segments and clients within industry. They include offering attractive fee
structures and improvement of the website. The business has been performing adequately over the last
years

Information sources
Identify sources of information to use to assist you in identifying market trends and development for
the industry area in which the business operates. This will include information and data about:
Technological developments, Demographic trends, Economic trends, Government regulations and
legislation, Environmental trends, Social and cultural factors, Existing and potential competitors.

Technological developments

The Technology has become an integral part of Australian Education, it is inside of all classes
and types of education.
Now, Teachers need to develop new skills and they should expect to see changes in the ways they
learn throughout these new years to attend the new generations.
After Corona, Virtual classrooms and online modules, already so useful to students in rural areas
and those studying languages, will become more commonplace for a wider range of students.

Demographic trends
The Australian population are having receive people around the world because of Education, this
is connected straight with the education and workforces that the country is needing at the moment. Part of
this workforce is connected with different age structures and sectors.

Economic Trends
 The smaller universities are growing at a much slower pace than larger universities. The
Australian larger universities (top quartile for income in 2014) have grown by 5.5% p/a over the last 5
years (CAGR). Our smaller universities (bottom quartile in 2014) have grown by 3% p/a over the
same period.

- Expenses are growing faster than income.

Across the public higher education sector, expenses increased by 5.9% p/a from 2014 to 2018, while
income increased by only 5.1% p/a. Correlating with this, the sector's total operating surplus in 2018 was
24% less than in 2014.
If this trend continues there is obviously a point where expenses will be higher than income, and for some
universities, this is a more present issue than for others. Some smaller universities, in particular, are
already reporting operating deficits more frequently.

- International students have become increasingly important.

With per-student funding for domestic students having largely flatlined, many universities have
increased their focus on international student numbers. International student numbers have grown, and
now make up 30% of total students across the sector. This growth has been disparate. For larger (top
quartile income) universities, international student numbers have grown to be 37% of their students, while
for smaller (bottom quartile income) universities this has decreased to 19%.

Government regulations and legislation

The current law, have an Act directed to all regulations for schools with VET a Training
courses called: National Vocational Education and Training Regulator Act 2011

Environmental trends
The good of this industry is have a good environmental to explore, as a modern with a big
space for students, good location and easy access to students and staff.
The Australian Government, state and territory governments, and local governments
jointly administer environmental protection.
Australian Government legislation governs the process of assessment and approval of
national environmental and cultural concerns.
State and territory environmental protection legislation apply to specific business
activities.

Social and cultural factors

EDUCATION AND LANGUAGE: One of the factors of social and cultural marketing trends is
the education and language inside of the company, the trained staff is prepared to evolve and receive any
student around the world. The Spoken language is a decisive factor on the labeling and advertising of the
product. With the foreign language skill into the advertising you are ready to promote your company into
brochures around the world.
SOCIAL ORGANIZATION: Be part of the culture and into society organization is very import to
have status and social interest on different groups. The main interest group into the education area must
be taken into a relevant as a new influence. The marketing of a small business can be successful by
building its advertising strategy to have influence around different groups.
 REFERENCE AND FAMILY GROUP: Because people are social beings, each person has
people around him who influence his decisions in some way. Reference groups comprise people with
whom individuals compare themselves. Family members, relatives, neighbors, friends, co-workers and
seniors at workplace can form reference groups. Well-known and respected idols in society serve as
examples in lifestyle, values and buying habits.

Existing and potential competitors.

The Biggest Companies in the Technical and VET Industry in Australia.
The companies holding the largest market share in the Technical and Vocational Education and
Training in Australia industry include Department of Education and Training Victoria, Technical and
Further Education Commission and TAFE Queensland.
 Department of Education and Training Victoria
 Technical and Further Education Commission
 TAFE Queensland
 Department of Training and Workforce Development
 Navitas Limited
 TAFE SA

Statistical analysis
Use statistical analysis of market data that you have found to interpret market trends and
developments.
Analyze the market trends and developments for their potential impact on the business

An analysis of the King Edward VII College data shows the following trends:

- A lot of students came from around the world, the focus on Asia and South America Countries is
connected straight to the marketing that could have potential to new enrolment. As the new public
is coming overseas. Students from China is the bigger number in the School.
- The environment of KEVII is completely modern as indicate the trends and have the perfect
location close to metro station with easy access to all students. It is very satisfied of all students.
- The Staff is very happy and supportive for all students, this means not just teachers as the
administrative office part.
- Don’t have any Australian students. This could be a problem to the college as they do not work
on Australian marketing or do not concentrate on this. Should have a strategy around this.
- The contain on the subjects are not enough.

Quantitative interpretation
Use measures of central tendency or dispersion and correlations between the sets of data that you have
to give a quantitative interpretation of comparative market data
 First, we need to pay attention about some products of King Edward VII College. The vet course
is very focused on the administrative courses as Bookkeeping and accounting, business administration,
project management, marketing, Human Resources and Leadership and Management. The main focus on
the Education Trends is the Mental Health and Assistance Health courses, Technology and Digital
courses and Trade courses.

The school should pay attention on this because have a lot of that the competitors is investing
right now and growing more than normal as these courses is an advantage for the future.

Courses that should be included (connecting with the trends) are:

Cert. IV of Mental Health

Diploma of Mental Health

Cert. III of Cert. IV of Information Technology

Cert. IV of Information Technology

Diploma of Information Technology

Advanced Diploma of Information Technology

Diploma of Nursering

Diploma of Community Services

Diploma of Ageing Support

Diploma of Social Media Marketing

Qualitative analysis
Perform qualitative analysis of the comparative market information that you have sourced as a basis
for reviewing the College’s business performance

On basis on the Ratings analysis from the all students that were ask to give their feedback on their experience at
King Edward Vii College.

We can notice a big disappointment on the following rates:

The courses offered are adequate for my needs 74 82 72

% % %
The course content is challenging and satisfying 68 72 72
% % %

In other way, the other parts of the feedback are growing year by year and explore a sensation of
competitivity. Besides, is very important study the competitors and understand what is significant: What
is the important on the work market to supply what you need? Knowledge and content. The TAFE is the
college from the Australian government and they are considered one of the best in a lot of categories
exactly because of this and they supply a lot of content and you can gain skills for this.
Checking the ombudsman, you can notice the very important questions about how is the
development and feedback of the schools, included you can complain it about them in the same website.

Competitor analysis
Identify at least three competitors to the case study organization. Document the name of the
competitor’s business, the products and services they offer and available information about their
market share.
Identify and discuss at least two opportunities arising from the presence of competitors and at least two
threats.

COMPETITOR: THE GORDON (TAFE)

PRODUCTS: Courses of technology, health and care, cookery, screen and media, creative and fashion,
aviation and maritime, tourism, hospitality, events, community services, automotive trades, hairdresser
and beauty, fitness, animal and agriculture environmental studies, finances etc.
OFFERS: Interstate Campus, Good Rates, Excellent feedbacks
COMMENTS: The variety of products on TAFE is very attractive for all the students overseas and
potential customers, besides they have one of the best feedbacks of country which is important to take a
decision.

COMPETITOR: NAVITAS
PRODUCTS: General English, Academic English, Academic Pathways, TESTS preparation.
OFFERS: Interstate Campus, Homestay, Free flights, Gym Membership
Comments: NAVITAS not just have quality of their product and they have a lot of marketing into the
school, as the partnership with the Anytime fitness and can get free flights for their students, which is
very attractive for the marketing.

COMPETITOR: DTWA (TAFE)

PRODUCTS: Courses of technology, health and care, cookery, screen and media, creative and fashion,
aviation and maritime, tourism, hospitality, events, community services, automotive trades, hairdresser
and beauty, fitness, animal and agriculture environmental studies, finances etc.
OFFERS: Interstate Campus, Good Rates, Excellent feedbacks
COMMENTS: The variety of products on TAFE is very attractive for all the students overseas and
potential customers, besides they have one of the best feedbacks of country which is important to take a
decision.

Two opportunities of having competitors in King Edward VII College’s market could be:

 Invest to offer new courses

 Have new campus in others cities

Two threats posed by competitors in King Edward VII College’s market could be:

 That they take students from the College.

 That they lure valuable teaching staff from the College.

Marketing performance
Analyze the performance data from all areas of the business to determine whether the current
marketing activities have been successful.
Identify over-performing and under-performing products and services that could be considered for
development or cancellation.

Currently, the financial and the administration office of the company shows that they have good
savings and the organization have healthy financially. The enrolments still increasing every month. All
the public target can choose the specific date and the marketing is doing a great job doing some
advertising and activities to movement the attraction of students to the college.
The College have a lot of courses available and they are listed in product and services data in the
Student Analysis, soma lines must be revised and could be considered for cancellation. The college are
having some problem with courses as: The Project Management and the Human Resources because they
are poorly attended, remove them could be an option to saving and start concentrate the marketing efforts
on popular courses such as bookkeeping and accounting, business administration, or leadership and
management. Would be very interested have a new potential course, as marketing and digital marketing.

Business needs forecast

Analyse the existing and emerging market needs based on the information that you have collected
using forecasting techniques.
BUSINESS FORECAST SALES

Sales 2019 2020 2021

Income from courses $2.640.000 $5.088.000 $7.500.000
 Net Sales $2.640.000 $5.088.000 $7.500.000

EXPENSES
Electricity and gas $7.260 $11.620 $15.000
Internet $2.660 $4.260 $6.000
Office supplies $3.190 $5.100 $7.000
Rent $440.000 $704.000 $1.000.000
Stationary $2.860 $4.580 $6.000
Wages and salaries $880.000 $1.408.000 $1.600.000
Superannuation $83.600 $133.760 $155.830
Travel and $12.000
accommodation $6.770 $10.830
Water $6.410 $10.260 $13.000
Work cover insurance $4.840 $7.740 $9.000

TOTAL EXPENSES $1.437.590 $2.300.150 $2.823.830

Profit or Loss before Tax $1.202.410 $2.787.850 $4.676.170

BUSINESS FORECAST COURSES

Course 2018 2019 2020

Certificate IV in Bookkeeping and Accounting 84 120 160
Diploma of Accounting 38 55 85
Advanced Diploma of Accounting 22 40 65
Certificate III in Business Administration 96 150 180
Certificate IV in Business Administration 68 80 120
Diploma of Business 38 60 100
Certificate IV in Human Resources 0 - -
Diploma of Human Resource Management 12 - -
Certificate IV in Leadership and Management 32 60 100
Diploma of Leadership and Management 36 60 100
Certificate IV in Marketing and Communication 26 60 100
Diploma of Marketing and Communication 19 50 90
Certificate IV in Project Management 12 - -
Diploma of Project Management 0 - -
Cert. Screen and Media - 80 120
Diploma Social Media Marketing - 80 120
Total 485 895 1340

BUSINESS FORECAST OBJECTIVES

The following identifies the operational objectives we plan to achieve in pursuit of our strategic
objectives.

2019 Priorities Key performance indicators

July Improve web site information to attract 10% increase in students by June 2019
more students Improve market share by 5%
September Conduct annual internal audit Audit conducted, and continuous
improvement identified
October Develop and implement a cultural All staff trained in cultural awareness
sensitivity and awareness program for staff
December Staff performance reviews All staff performance reviews conducted
2020
January Provide information sessions showcasing Identify at least 50 potential sign ups
the College (existing campuses)
March Develop online learning for all courses All courses offered online by end 2019.
April Fit out new campus ready for intake in July. New campuses ready for operation
July Conduct annual internal audit Audit conducted, and continuous
improvement identified
Increase student numbers by 12% by June
2020
November Staff performance reviews All staff performance reviews conducted
2021
February Undertake scoping study for possible Scoping study completed by June 20 and
offshore campus decision made as to whether to proceed
July Conduct annual internal audit Audit conducted, and continuous
improvement identified
Nov 20 Staff performance reviews All staff performance reviews conducted

BUSINESS FORECAST OFFERS

 Establishing a new campus in Brisbane and one in Adelaide (NEW CAMPUS)

 Offering online blended learning (ONLINE PLATFORMS)
 Providing face to face information sessions (PRESENTIAL SESSIONS)
 Continually improving the quality of service given to clients pre-enrolment, during course
delivery and through the provision of support services while remaining price competitive
(QUALITY)
 Focusing on the provision of courses required by industry (NEW COURSES)
 Offering attractive fee structures to our clients (ATTRACTED ENVIROLMENT)
 Continually improving the skills, knowledge and effectiveness of King Edward VII College
through our commitment to training and development (NEW SYSTEM OF TEACHING)
 Regularly reviewing the effectiveness of all our operations and making improvements when and
where necessary. (IMPROVEMENT)
EMAIL TO ACESSOR

From: Robert@KcollegeIV.com.au
To: Responsable@KCollegeIV.com.au

Dear Mr. X,

Hope this e-mail finds you well.

I am attached the presentation of our marketing analysis and the current document of study to us. I am
glad that we have great ideas and targets that we can achieve and a good forecast to show.
the following to this email you can find:
 Market Analysis Report

 Market Analysis Presentation

 Completed Presentation Evaluation Checklist

Reviewed Market Analysis Presentation

If you have any doubts or problems please do not hesitate to contact me

Regards
Robert, Marketing Manager
REFERENCES

http://www.navitasenglish.edu.au/
https://www.training.com.au/rto/
https://pestleanalysis.com/social-factors-affecting-business/
https://www.ncver.edu.au/__data/assets/pdf_file/0017/60722/Trends-in-VET.pdf
https://www.training.com.au/rto/
https://www.cisco.com/c/dam/global/en_au/solutions/strategy/content/training.pdf
https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-business/Understanding-
Australian-business-regulation/Australian-business-and-environment-laws
https://www.grantthornton.com.au/insights/blogs/four-financial-trends-for-higher-education-in-2020/
https://www.smh.com.au/education/what-will-education-in-australia-look-like-in-2019-20190125-
p50tml.html
https://www.ombudsman.qld.gov.au/about-us/contact-us