Strategic Marketing

Dr. Rajesh Verma

Case Study: The Career College

1. Introduction

You have been appointed to a position as a trainee consultant for Ace Strategies
(Manchester). You receive a contract with your base salary and benefits, and an expense
account.

Arriving at 8.00am on your second day at Ace Strategies, you learn that your first job is to
develop a speculative pitch for strategic development of "The Career College." The account
is worth £300,000.

2. Market Overview

The Career College is a private institution and very content with themselves as one of the
few which offers quality training with strong benefit to industry (but note that the overall
private business training sector has a poor image). The price of tuition (£1,300 to £5,100
with the average being £3,000) places them into an entirely different category to the state
sector. Such private colleges generally appeal to students requiring quicker results and/or
speciality training.

The Career College employs about 100 people and enrols approximately 2,000 students
annually in Leeds and Manchester. They staff 4 full time placement people delivering an
average placement of graduates of 87%. The Career College offers a unique service in
that, once you have graduated from the college, their placement officers continue to assist
graduates in finding suitable upgrade positions as the students feel they have outgrown
their positions. They also employ career counsellors who assist students in deciding which
course would be most beneficial. The Career College takes pride in not placing a student
into a course which they are not likely to succeed or find work.

3. Target Market

Currently female students represent roughly 80% of current Career College students.
There are 3 primary groups of targets:

• Students fresh out of school with no or minimal work experience.

• People who have completed or have not completed GCSEs to O or A level, but have a
number of years of work experience and are seeking to upgrade skills.
• Individuals who have been away from the work force and are seeking a means of getting
re-employed.

4. Target Market's Problems

a. School Students with No or Minimal Work Experience:

Many students graduate or leave school without much work experience and have little idea
of what they are going to do for a living. Those interested in College or University often find
that they do not have the appropriate prerequisites for the course that interest them.
 Strategic Marketing
Dr. Rajesh Verma

b. Individuals Requiring Upgrading:

Many individuals find they are stagnating in their current position and it may be that they
seek more fulfilment, greater career opportunities and/or more money. Often upgrading
may be required to prosper within their existing employ, whether it is to keep up with
technology or their peers.

c. Re-entering the Work Force:

Most often this category consists of mainly women who have been away from work for
some time due to family considerations. As a result of the family growing up, boredom,
divorce, or need for income and/or self-improvement, they will often look for a refresher,
upgrade, or basic skill course as a tool to enter/re-enter the work force.

For someone who has been away for some time and lacks self-confidence, this can be a
difficult first step. The entire process of seeking a school and/or work, can be very
intimidating, especially after several turn downs. Regulations on most courses stipulate that
individuals must have certain prerequisites or they must take entry exams. Applicants have
been known to break down and cry or excuse themselves during such tests to go to the
toilet and never return.

4. Potential Positioning

a. School Market:

Capitalize on the Career College course benefits, which include shorter courses that provide
students with the essential skills to obtain immediate employment in their area of interest.
Emphasize that the Career College offers counselling on courses best suited to the
applicant and that the course components resemble what the student is likely to encounter
within the new work environment. Communicate that classes are small allowing for
personal attention when necessary and that each class is designed to be self-paced. In
addition, it should be very clear to prospective students that the Career College has a
placement service with a very good record of performance. Concentrate on courses (see
Product Chart) that are likely to appeal to young graduates, with no or minimal experience.

b. Upgrade Market:

Once again, capitalize on the immediacy of Career College course benefits. In this prospect
category, day and night course flexibility should be communicated.

Address the 'Achilles heel' of people who are frustrated with their current situation and who
want to make a change but believe that they would have to invest several years in extended
education to obtain the necessary tools to do so.

Appeal to individuals wanting to grow within their current field (i.e. the secretary wanting
greater income, could look at the Legal Secretary or Medical Secretarial course). A Legal
Secretary could look at a Professional Legal Assistant. A business-person may want to
take an IT skills course to keep up with their peers and/or technology. An Accounting Clerk
may want to take Advanced Accounting and so forth.
 Strategic Marketing
Dr. Rajesh Verma

The placement service/record and individual counselling should not be ignored with this
prospect.

c. Re-entry Market:

The positioning strategy for this prospect should be designed to appeal to individuals who
are lacking self confidence and are not likely to respond to prospect group 2 strategies.
These individuals likely don't know where to start despite a gnawing need to do something.

The positioning should combine Career College's image and performance benefits,
providing the prospect with a sense of hope and confidence. This prospect group should be
viewed as a new product introduction.

PRODUCT
Male Female No Exp. Upgrade Re-
Grad. or (Work entering
Drop- Exp) Work
out Force
Travel & Tourism 26 Weeks 20% 80% 20% 40% 20%
Admin. Secretary 18 Weeks 5% 95% - 60% 40%
Legal Secretary 20 Weeks - 100% 40% - 60%
Medical Secretary 20 Weeks - 100% - 100% -
Prof. Legal Asst. 44 Weeks 25% 75% - 100% -
IT Skills Days
5 Weeks 25% 75% 30% 70% -
Evenings 50% 50% 30% 70% -
Accounting
& IT 13 Weeks 35% 65% 25% - 75%

NEW COURSES BEING CONSIDERED:

Personal Assistant
- 100% 25% 75% -
Law Office Mgmt. 50% 50% 50% - 50%
Advanced Acct. 13 weeks 35% 65% 70% 30% -

Question:

How should the Career College position itself in its market and why?