The Australian higher education industry is among the best education systems in the world. This is because; it develops the student’s capabilities that are relevant to the workplace environment. The country benefits from the education exports, as this has become the fourth largest export in Australia. It continues to generate about $140 billion annually (Hall, 2014). In the last five years, the Australian universities earned $18.5 billion from the international students. These learning institutions have invested massively in the fund research, employing support and teaching staff, and educational infrastructures and new buildings. Based on these earnings, it appears that the foreign students have established the greatest economic footprint in the universities than accommodation and tuition fees. For instance, the international students continue to facilitate the domestic participation leading to the spill over benefits like increased tourism and job creation.
Despite the country being the most attractive destination for many foreign students, the education in this country has proved expensive for international students (Hall, 2014). According to Hall (2014), the international student spends about $42,000 on fees and personal effects annually. The amount is far much beyond the international average that stands at $3,000 and $6,000 in Singapore and the United States respectively as indicated in the chat below.
The Australian Universities are contributing significantly towards the country’s social wellbeing and economic prosperity. Based on the 2014 data, the universities across Australia have enrolled over one million students and over 120,000 staff (Robinson, 2017). The international students have become the largest service export in the country’s history. Interestingly, the Universities contribute to the local communities through sporting grants, industry collaboration, research, local employment opportunities, and building strong infrastructure. Therefore, the Australian universities seemed to support the regional economies. For example, through the university research, it has been possible to stimulate innovations thus deliver solutions to the demographic, social, and economic challenges these countries experience (Universities Australia, 2017). According to Osborne (2015), the universities have over 1.3 million students. The universities have registered 1,346,835 domestic students and 650,000 international students as presented in the chart below.
The above chart confirms that the Australian universities are home to both domestic and foreign students. The onshore international education industry is likely to grow at an annual rate of 3.8 percent to become 940,000 by 2025 (Robinson, 2017). The country has earmarked its source markets for the foreign students to be China, South Korea, India, Brazil, Malaysia, Nepal, Vietnam, and Thailand. Australia anticipates that its onshore education growth rate will depend on the Asian countries like China, Thailand, Vietnam, India, and Nepal. Nonetheless, China remains the largest source of onshore learners as its students occupy the largest number of schooling enrolments and higher education enrolments (Austrade Education, 2017).
This university has remained to be a force to reckon because it has continuously taken a growth trajectory since 2009. This has been evident in the remarkable growth in new courses, student enrolment, infrastructure, new campuses, and reputation. The university has incessantly social innovation and research thus making it a great university. CQUniversity was founded in 20 years ago in Rockhampton (Robinson, 2017). Since its inception, it has recorded growth in student enrolment that has reached 30,000 students in all its 24 campuses in different locations countrywide. It has become the most inclusive higher education institution in Australia. Recently, the university opened an engineering precinct worth $16.6 million at its Mackay Ooralea campus. The university’s Chancellor is John Abbott who succeeded Rennie Fritschy AM who retired. The CQUniversity is ranked among the top 100 universities in the world. This has made the exclusive global social innovation group Ashoka to name it the change maker campus in Australia (CQUniversity, n.d).
CQUniversity is the largest higher learning institution in the region and the most accessible and engaged universities in the region. The strength of the university is based on the training options and degree courses it offers in the market (Azarcon Jr, Gallardo, Anacin, & Velasco, 2014). It also operates Partner Study Hubs and Study Centres for the distance students. Preferred University offering long-distance learning thus makes the most these learners to access support and facilities in all its campuses. Interestingly, studies have indicated that its degree graduate students access full-time work within months (CQUniversity Australia, n.d). Despite this achievements and outstanding performance in the education industry, CQUniversity has opted to continue intensifying its marketing strategies to beat its rivals as covered in this business plan.
Target market analysis
The university has set its focus on the Asian countries where most of its onshore learners come from. Indeed, China is the largest nation that sends many students to Australia for further studies (Rothaermel, 2015). Currently, the Chinese students studying in the Australian universities stands at 36 percent compared to other international students. China is followed by India (nineteen percent), Malaysia (nine percent), and other countries form the source market for the universities. It is thus important for CQUniversity to move with speed to intensify its marketing strategies to meet the expectations of a wider range of students across the world. It targets China, Vietnam, India, Malaysia, Singapore, and European countries for more students. As a leading learning institution in Australia, it should optimize its strengths to expand its market share beyond the current market.
With the demand for education increasing locally and abroad, CQUniversity has to strategize to make a difference in the region. Wilson and McDonald (2001) have pointed out that the higher learning institutions have to be responsive to the needs of the market. Since the drivers of education economy are the international students, the leading higher learning institution stands a better chance to transform the students’ skills and knowledge. A recent study conducted by Hildenbrand in 2014 indicated that the courses offered the Australian universities are attractive and readily prepare students for job markets. Many students across the world have developed a significance preference for higher education, and they have sought solace in the Australian Universities. The Australian demand-driven education system has proved critical (Moodie & Norton, 2016). This continues to benefit the universities that use the opportunity to attract foreign students.
Apart from pursuing higher education from universities, the country has diversified its education industry. It has established vocational training institutes and middle-level colleges to absorb the large number of students locally and abroad. Currently, the number of international students has reached 650,000 and stands to be 950,000 by 2025. This growth prospects gives the Australian education market the best destination in the Asian region. This can be presented as indicated in the chart below.
Source: ICEF Monitor, 2017
The demand for education is growing in every country. To this effect, Australia has had to accommodate the growing demand to serve its students who have developed a great thirst for quality education. CQUniversity is never exceptional as the pressure for educational services continues to be felt. This has pushed the university to open more campuses to accommodate the new escalating demand (Peteraf, Gamble, & Thompson Jr, 2014). Throughout Australia, the university operates in at least twenty locations across the major regional centres and cities across Australia. Importantly, the university has encouraged its students to maximize its industry-aligned courses to fit in the local and global industries. It has further personalized learning and established collaborative partnerships with various stakeholders including the award-winning staff thus ensure the students succeed.
The university also responded to the growing demand by opening up to accommodate the distance-learning program. It operates the distance education through Partner Study and Study Centres Hubs where the foreign students or long-distance learners can access the needed support and facilities. The main learning hubs are located in Adelaide, Charters Towers, Cannonvale, Cairns, Brisbane, Sydney, and Perth. It also operates the study centres in Geralton, Emarald, Townsville, Melbourne, and Karratha. CQUniversity also offers different learning options for both international and local students. Besides, the learning institution offers on-campus training at various campuses including Mackay, Gladstone, Emarald, Bundaberg, Brisbane, Biloela, Adelaide, and Noosa. It has also expanded the on-campus training in Melbourne, Yeppoon, and Rockhampton (CQUniversity Australia, n.d).
CQUniversity has emerged to be an echelon of research because it focuses on excellence research trainings. In fact, it has been rated the best research institution in the region in various fields, such as health sciences, medical sciences, nursing, applied mathematics, and agriculture. With high employment rates, the graduate of the university have proved their worth in the labour market. Based on the university’s findings, the driving force behind its growing demand include quality education, employability of its graduates, offering industry-aligned course, and personalized learning support. The university has also established collaborative services and partnerships with different stakeholders to make the university the best learning destination for all.
Targeting and segmentation focuses on designing or dividing the potential market based on the unique features. CQUniversity has identified its market target with the highest priority given to international students, especially the Chinese students. The university has segmented its market based on behavioural, demographic, psychographic, and geographic factors as exclaimed by Hollensen (2015). Hollensen (2015) has also highlighted the demographic factors that have been determining the segmentations based on the income, gender, and age factors. The university targets the upper class member of the society who can easily afford the costs of education. Although the age is not a big factor, but the CQUniversity as values, it focuses on the youthful population aged 18-35 years. The psychological factors are also evident because the youthful student population have a high lifestyle (Azarcon Jr, et al., 2014). The university has thus provided relevant facilities and services that befit their lifestyle on-campus. On gender, the university has no preferred choice but anybody with relevant entry qualification is free apply and join the industry-based courses (Peteraf, Gamble, and Thompson Jr, 2014).
Political:
The environment in Australia is incomparable to many countries. This is because; the country has ridden on stable political situation for decades to sustain its growth. The students would prefer to seek for education in countries that value human rights, equity, and peace and harmony. These are the credentials of Australia, which have made the local universities to attracted international students as explained by Culley, Graham, Kay, and Norberry, Wilson (2017).
Australia has enjoyed a strong economic growth for decades as evident in its steady GDP growth rate. The country attributes it economic position to qualified students and graduates. To this effect, the universities have attracted more students from abroad.
Education is unique across the world, because all students pursue courses that they perceive to be industry-based. This factor is shared across the world thus define the social background of the students (Kizil, Eddy, Clary, & Crowell, 2013). Similarly, the learning environment and quality of staff justifies the demand for entry.
The institution has invested in new technology to accommodate the needs of the students. For instance, students can apply for course online and they can undertake distance-learning program.
Australia has established proper educational legislations to guide the higher education programs. With the Commonwealth support program, the government has put in place laws that ensure the universities charge the local students fair tuition fees. According to Cascio (2008), the country uses legal means to monitor the educational standards in Australia. For instance, it has a guideline on the registration of higher learning institutions. It has further established the procedure that universities must follow to prescribe their syllabus. Therefore, the course and learning materials are designed as per the laid down standards. Without adhering to these provisions, the university would face charges. The Queensland government has introduced legislation that compel the university to apply the fees as provided by the schedule, especially for the VET students
The environment concern experienced across the world is a challenge in the higher education sector. The Australian government expects the universities and other educational institutions to use the green technology in its operations (Anderson & Coughlan, 2007).
CQUniversity faces stiff competition from various universities across Australia. Most of these universities offer similar courses and serve similar market segment that would give students a wide range of options (Kasumawati, 2011)
This is one of the greatest universities in Australia and the region. Globally, it is among the respected learning institutions and aims at “creating a brighter future for life in the tropics worldwide, through graduates and discoveries that make a difference” (JCU, 2017, par. 2).
The university offers courses by-campus undergraduate and post-graduate studies. It also offers distance/flexible course that the students can apply online. It remains focused on research and teaching in different areas including tropical health, biosecurity, and medicine. It also focuses on tropical environment and ecosystems, peoples and societies and economies and industries in the tropics. Since the students is at the university’s heart, it intends to continue inspiring them to achieve the best outcome in the communities and fields by delivering exemplary teaching and learning programs,
Product life-cycle
The courses offered at the company are unique and relevant to the market environment. This shows that its courses are at the growth and maturity stages. It has also invested in new courses depending on the market environment.
The university study expects the students to incur range of expenses such as the study and living costs. However, the students should note that living in capital city is costly compared to Townsville and Cairns. The main expenses of the international students are the tuition fees. However, the university charges extra costs on workshops, field trips, and equipment. The university charges each program such as undergraduate, postgraduate, study abroad fees differently as explained by Amir, Auzair, Maelah, and Ahmad (2016). The additional costs the student must put into considerations include student amenities and services fees, overseas student health cover, living costs (JCU, 2017). The university charges its courses based on scheming pricing methods.
Place
The university also offers student mentor programs, counselling, academic support, info Help, and sporting facilities. The company needs to use websites to increase its market position and competitive edge. It has also opened university campuses in Singapore, Australia and China. These new developments are meant to cater for the increasing demand for education.
The university uses different media to promote and market its courses. Importantly, it offers scholarships and financial aids. The university helps the students to access financial aid and scholarship programs. For instance, Canada, USA, and Europe are some countries offering students loans and financial aids. The flexible and distance courses have also helped the university to attract more international students. The university also offers student mentor programs, counselling, academic support, infoHelp, and sporting facilities.
According to the university, spends $8,637,000 on advertising, marketing, and promotional expenses (JCU, 2016). This shows that the learning institution has recognized the significance of advertising and promoting its products and services to gain competitive edge. In 2012, the JCU introduced a demand-driven model that ensured its marketing and branding strategies remain flexible.
Strengths
CQUniversity has strong brand reputation and image that has seen attract many students locally and abroad. The institution has the capacity to maximize its image to improve its stakes in the industry. This has seen the university earn accolades and awards in the international fronts. In fact, it is largest university in the region. Currently, it boasts of economies of scale that has seen it offer programs to both international and national students. For instance, apart from the on-campus training programs, the institution also offers distance-learning programs.
The university vulnerable to the security situations, especially with the increasing number of international students, the possibility of terror attack is high. Unfortunately, the university may not have enough expertise to handle as explained by Constantinides (2004). The institution has also made bad acquisitions that have put at loggerheads with stakeholders.
The CQUniversity has an opportunity to grow in the region as it targets the international market. Indeed, with the introduction of the new products ort courses, the learning institution stands a better chance to grow (Kaplan & Haenlein, 2010).
The quality education has defined the public debate across Australia. As explained by Akar and Topçu (2011), fierce competition is a threat to the learning institutions. For example, CQUniversity faces rivalry with Monash University, Curtin University, Federation University, and Murdoch University. The Charles Sturt University and RMIT University also face off with CQUniversity. Volatile revenue is another threat that the university must address. This is because; the international students are worried over the increasing fees.
The university values are founded on five pillars that in intends to utilize and remain the leading university in the country and the region. The university values engagement and has opted to intensify its connection with the stakeholders and communities. This will allow the organization to have strong relationships thus create productive partnerships to deliver beneficial and mutual outcomes. The university also values leadership as it demonstrates excellence in teaching, learning, governance, research, and engagement (Tiago & Veríssimo, 2014). The company also focuses on the ‘can-do’ approach shows that the university intends to continue and achieve its goals by thinking big, applying innovation, and aspiring to greatness in everything. Transparency and openness are the foundation of the university. It intends to use processes, decision-making, and procedures transparently. It further stresses fairness, consistency, and probity to define its relationships with stakeholders (Chae & Hill, 2000. Finally, inclusiveness is a motto of the university as it seeks and respects full participation from its stakeholders. It invests in engagement with staff, community, and students without discrimination.
The CQUniversity has earned a brand identity that is incomparable to any other company in the market. It has offered quality courses at different levels that make students ready for the job market. According the university, 90 percent of its graduate secures jobs immediately. This is because; the teaching staffs offer the best and industry-related contents to the graduates. A service-branding strategy has made it appealing to many students.
CQUniversity has opened up various campuses across Australia to accommodate the growing demand in the market. These campuses are strategically located to accommodate the interests of the targeted market. As a result, it has opened up the distance-learning program to accommodate the increasing students in the market (Armstrong, Adam, Denize, & Kotler, 2012). Without a doubt, the institution intends to double its investments in 2018 to meet the expectations of the potential students. The company will have to introduce new campuses and courses that are responsive to the modern market (Eden & Ackermann, 2013). Therefore, it stands to benefit from its aggressive promotional strategies thus remains the leading institution in the region.
|
Marketing aim |
Achieve 20% increase in the number of international and local students in 2018 |
|
|
Promotional objectives |
Media |
|
|
Public relations |
Establish a new customer service desk that will operate 24/7 to address the students and stakeholders’ concerns |
Online chat platform, website, on-campuses |
|
Advertising |
Intensify the use of different marketing platforms and channels to increase the market base by 30 percent |
Print media, social media, Television |
|
Sales promotion |
Increase the scholarship programs for the needy and bright students |
Online applications |
|
Personal selling |
Introduce new industrial-based courses to attract students across the world in 2018 |
Student support programs, Quality courses, trained and professional staff |
Product:
CQUniversity offers industry-based courses that are valued in the modern job market. The institution believes it can serve the needs of the society by offering the best courses and learning skills required in the corporate world. For instance, its mathematics course, public and clinical health, and social sciences are among the most sought courses in the market. Sittimalakorn and Hart (2004) held that with the courses that have instilled employability skills in students, it has managed to attract students within and without the boundary.
Apart from the on-campus training programs, the institution will be offering long-distance training programs to the students. This will give the students the opportunity to access the learning materials and facilities from their home countries. The students will also have the opportunity to pursue different programs including undergraduate degree, PhD program, and Vocational Education Training among other programs as approved by the government. Unlike its competitors, JCU, CQUniversity is at its growth stage of the PLC. With the introduction of new courses at both undergraduate and post-graduate levels, the firm stands a better chance to proper in 2018.
CQUniversity uses differential pricing strategy such that the international students pay more than the domestic students whose tuition is offered through the commonwealth support programs. Despite the high charges on the courses, the university remains strategically placed to remain relevant to the society. For instance, it will guarantee its students the employability in various fields because of the industry-based courses it offers. Therefore, the institution offers value for money. It will continue to use value pricing because its courses are valuable in the market. The fee per course approach has been applied by the university since its inceptions. In appendix 1, the paper indicates the university’s tuition and fees schedule, especially for the international students.
For VET students, the Queensland Government has set schedule that CQUniversity has to apply. However, the government allows the university to charge protective tools and clothing and print materials.
The CQUniversity remains strategic in the distribution of its products and services (Wilson & McDonald, 2001). For instance, it has over thirty university campuses across Australia. It has thus spread its 30,000 students across these campuses to avoid congestion. For the international students, especially those who prefer distance learning, the learning institution has established facilities and centres, where they can access the needed learning materials and pursue their education without hitches. In 2018, the university will improve is website infrastructure to make it available for many customers.
The University values its students and it intends to use robust marketing campaigns. It will establish a strong website where it informs the potential students and current learners regarding the diverse study options its offers. It will continue to articulate its study options through online chats sessions, open days at the university campuses.
It opts to maximize the education export program to remain relevant and counter the competitive pressure through comprehensive marketing strategies. As explained by Khan (2014), universities that can no longer promote their products will cease to be. CQUniversity will use personal sales program, where its courses will be ranked among the top course in the world. In fact, it has received accolades and awards in mathematics, social sciences, public health, agriculture, and medical course. The teaching and support staff will treat student’s professional and offer relevant assistance. This will help to improve the reputation of the organization. It further will use print media, digital platforms, billboards, and television to promote its products (Huang and Benyoucef, 2013). The CQUniversity’s per course pricing strategy will make this university the market leader.
Based on the 2016 financial report of CQUniversity, its expenditure on advertising, marketing and promotional expenses stood at $5,515,000 (CQU, 2016). In 2018, the university intends to spend $5.5 million to cover its robust marketing and advertising campaigns on different platforms as indicated below.
|
Media |
Costs ($’000) |
|
Website campaigns |
1000 |
|
Television advertising |
800 |
|
Billboards |
1400 |
|
Magazine and print media |
400 |
|
Sporting and events |
1000 |
|
Social media |
400 |
|
Radio advertising |
500 |
|
Total |
5500 |
The CQUniversity expects to increase its student population by 20 percent in 2018 by intensifying the advertising and marketing efforts. Despite the budgetary constraints, it is possible the university will beat its rival, JCU in expanding to new areas and introducing new courses to accommodate the emerging market needs. The university will take advantage of its industry-based courses to attract potential students across the region and the world. This will help the university to remain the market leader in the region regarding its student base, quality of courses, and the number of campuses.
References
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