Executive Summary

Brisbane Business School is a lean startup business school located in Brisbane, Australia. They offer mainly online courses that can be studied at a student’s own pace, completely online and from anywhere in the world. The main problem they face is student recruitment, as the market is already saturated with training providers. To overcome this, Brisbane Business School has set itself apart from the other providers by offering more highly qualified and experienced trainers.

The training provider conducted market research using SWOT Analysis, Market Segmentation Analysis and a Marketing Mix Strategy. They concluded that the markets they should target were rural and remote communities, corporations and international students planning on working or undertaking further studies in Australia.

The training provider also established an online presence and is in the process of forming partnerships with rural community colleges, rural neighbourhood centres, student recruitment agencies, international corporate training providers and online influencers.

Some of the strategies developed have proved more successful than others, but there has not yet been enough time to fully evaluate whether the strategies will be successful in the long term. However, research suggests that they are the best strategies for the target markets.

Introduction and Problem Statement

Brisbane Business School is a lean startup (Shepherd & Gruber, 2021) founded in 2023 in Brisbane. They provide online training in nationally recognised business courses, through a partnership with a Registered Training Organisation (RTO). They also provide Corporate Training, Business English courses and General English training.

There are several problems with being in a partnership. The major one is that only RTOs are eligible for federal or state government funding to subsidise the courses, not the organisations they subcontract to (DET, 2017). Another problem is that TAFE have first preference for many of these government funding arrangements, meaning that private colleges are at a disadvantage. TAFE can offer the courses cheaper or for free.

Another problem Brisbane Business School faces is competition. There are literally thousands of RTOs and business schools already in existence in Australia (IBIS World, 2023).

A third problem is student recruitment. With thousands of RTOs and business schools already in existence, students have difficulty knowing which one best suits their need and generally go for the cheapest or the best known (Pawar, 2021).

A fourth problem is that many international students want to come to Australia to study. Government regulations in Australia stipulate that students studying in Australia can only get a student visa if they are attending face to face classes. Students cannot get student visas for online classes (DET, 2017).

Situation Analysis

SWOT Analysis

Strengths
.
Accreditation and Recognition: Partnered with an RTO that can deliver nationally accredited courses.
Experienced Owner: Owner has 28 years’ experience in adult education and corporate training in Australia and China.
Quality Trainers: All trainers are degree qualified in adult education, business and TESOL.
Diverse Course Offerings: Offering a range of qualifications in business.
Modern Facilities and Technology: Up-to-date facilities and technology will improve the quality of education and enhance the learning experience.
No Geographic Constraints: Because all courses are delivered online there are no geographic constraints.
Flexible courses: Students have the opportunity to study at their own pace without deadlines for assignments.
.

Weaknesses
.
Compliance Challenges: Must adhere to rigorous regulatory and compliance requirements.
Limited Funding: As a partnership, not eligible for government funding or traineeships.
Limited capital: The organisation is a lean startup with limited seed capital.
Finance unavailable: The organisation is not able to access finance from financial institutions.
Not yet known: The organisation has not yet built a brand name.
.
.
.
.
.
.
.
.
.
.
.
.

Opportunities
.
Market Growth: The demand for education and training services is likely to continue growing in Australia, presenting opportunities to expand offerings.
Online Learning: The rise of online education and e-learning platforms offers opportunities to reach a broader audience and diversify revenue streams.
Industry Partnerships: Collaborating with businesses and industries to offer tailored training programs can be a valuable opportunity.
International Students: Attracting international students can provide additional revenue and promote cultural diversity.
.

Threats
.
Regulatory Changes: Frequent changes in education regulations and standards can pose a threat to compliance and stability.
Competition: Intense competition among RTOs and other providers may lead to price wars and reduced margins
Economic Downturn: Economic recessions can lead to reduced funding and a decline in student enrolment.
Technological Disruption: Advances in technology may disrupt traditional teaching methods, requiring adaptation and investment in new technologies.
.
.

A SWOT analysis is a strategic planning tool that helps organisations assess their internal strengths and weaknesses, as well as external opportunities and threats (Phadermrod, Crowder & Wills, 2019).

From the SWOT analysis there are more strengths than weaknesses. As example the owner is degree qualified in vocational education, management, and teaching English as a Second Language. The owner also has significant experience in corporate management, business management and the vocational education sector.

Additionally, the organisation will employ a higher standard of trainers than other registered training organisations currently offer. Most other RTOs only require a Certificate IV in Training and Assessment (DET, 2017), whereas Brisbane Business School will require all trainers to be degree qualified in Adult or Vocational Education. The Certificate IV in Training and Assessment only teaches trainers the government compliance requirements and does not address issues such as teaching methodologies, behavioural psychology and assisting students with problems or learning difficulties.

The main weakness is that the organisation does not yet have a public profile. There is an opportunity to increase the public profile by partnering with domestic and international organisations including student recruitment agencies and organisations that the owner has worked with in the past. Some of these organisations were Fortune 500 corporations where the owner trained Chinese managers for international transfers.

The biggest threat is that there are many RTOs and business schools already in existence in Australia (Pawar, 2021). This makes competition extremely difficult so the owner must develop strategies to place the organisation apart and above the existing registered training organisations and business schools.

The biggest opportunity is in attracting international students through student recruitment agencies and online influencers. Online influencers could be active on Instagram, TikTok or other online platforms.

Another major threat is the current economic downturn which means many students cannot afford the high costs of the training courses which are all in excess of $3000. As a partnership, Brisbane Business School is not eligible for government funding and so must rely on full fee students for all enrolments.

Additionally, a lot of government funding is going to TAFE and larger RTOs who can then offer free courses. These are obviously more attractive to students than having to pay full fee.

Objectives

The main objective for Brisbane Business School is to increase student enrolment (Pawar, 2021). This means developing strategies to attract more students. This can be achieved through targeted marketing strategies to reach potential learners including both domestic and international students.

A second objective is to increase the visibility and recognition of the organisation’s brand (Pawar, 2021). An enhanced brand reputation can lead to more trust and credibility in the vocational and adult education sector.

A third objective is to create more industry partnerships. These include with international corporate training organisations, student recruitment agencies and online influencers.

A fourth objective, which ties in with the third objective, is online promotion. Brisbane Business School already has a modest online presence, with 3,000 subscribers to their website, 9,000 followers on the owner’s Twitter account and several thousand followers on other Facebook and social media accounts the owner controls.

Market Segmentation Analysis

Market segmentation is a crucial aspect of marketing for training providers in Australia (Pawar, 2023). It involves dividing the target market into distinct groups based on various characteristics and needs. Segmenting the market allows training providers to tailor their marketing strategies and educational offerings to better meet the specific needs of different groups. Pawar (2023) has been used as a reference in all the segmentation categories.

Demographic segmentation (Nandy, Sondhi & Joshi, 2023):

Age: Targeting different age groups, such as school leavers, adults, or retirees, with relevant training programs.
Gender: Offering courses that cater to the specific needs and interests of men and women.
Educational Level: Providing courses for individuals with different educational backgrounds, such as high school graduates, undergraduates, or postgraduates.

Geographic Segmentation (Griva, Zampou, Stavrou, Papakiriakopoulos & Doukidis, 2023):

Location: Targeting specific geographic areas, whether within Australia or internationally, based on local demand and preferences.
Urban vs. Rural: Tailoring programs to the unique needs of urban and rural students.

Psychographic Segmentation (Pitt, Bal & Plangger, 2020):

Lifestyle: Aligning training programs with the lifestyles and aspirations of various segments, such as career-focused, hobby-oriented, or lifelong learners.
Interests and Values: Offering courses that align with the interests and values of specific groups, such as environmentally conscious individuals or those interested in specific industries.

Behavioural Segmentation (Sawang, Lee, Chou, Vighnesh & Chandrashekar, 2023):

Previous Education: Offering advanced or foundational courses based on the students’ prior educational background.
Learning Preferences: Segmenting based on preferences for in-person, online, or blended learning.
Usage Occasions: Creating programs for full-time students, part-time learners, or those seeking short-term certifications.
Loyalty: Developing programs to retain and engage existing students and alumni.

Industry or Occupation (Zhou, 2020):

Targeting specific industries or occupations by offering tailored training programs to meet the skill requirements in those sectors.

International vs. Domestic Students (Foroutan, 2023):

Differentiating between domestic and international students and offering services and support appropriate to each group, including visa assistance, language support, and cultural orientation.

Skill Level and Experience (Foroutan, 2023):

Offering beginner, intermediate, and advanced courses to cater to learners with varying levels of expertise.

Financial Capability (Bourke, Tascón, Vanderveken & Ecker, 2022):

Creating courses and flexible payment options for individuals with different financial resources, such as full-fee-paying students and those seeking financial assistance.

Government Initiatives (Foroutan, 2023):

Aligning with government funding and grant programs to target specific segments encouraged by government policies, such as apprenticeships or training for specific industries facing skill shortages.

Online vs. On-Campus Learners (Lewohl, 2023):

Segmenting students based on their preference for online or on-campus learning, and offering programs that cater to their chosen mode.

Career Goals (Ng, 2018):

Offering training pathways that cater to students with varying career objectives, such as career changers, those seeking promotions, or those wanting to enter a specific industry.

Language Proficiency (Hsieh, 2023):

Providing courses that accommodate individuals with different levels of English language proficiency, especially for international students.

Effective market segmentation for training providers involves thorough research and a deep understanding of the diverse needs and preferences of students. Once segments are identified, marketing strategies and educational programs can be customised to meet the unique demands of each group, ultimately increasing student enrolment and satisfaction.

Marketing Mix Strategy

Developing an effective marketing mix strategy for a training provider in Australia is crucial for attracting and retaining students (Anane-Donkor & Dei, 2021). The marketing mix, often referred to as the 4Ps (Product, Price, Place, and Promotion), should be tailored to the unique characteristics and needs of your target audience. For this report, we have also included People, Process and Physical Evidence (7Ps). Here’s a breakdown of how to apply the marketing mix to a training provider in Australia:

Product (Education and Training Programs) (Nguyen, Mai & Anh Do, 2020):

Course Offerings: Ensure the training programs align with industry needs and qualifications that are in demand.
Quality: Focus on delivering high-quality education and training that meets regulatory standards and provides value to students.
Innovation: Offer innovative courses that incorporate the latest technologies and teaching methods.
Flexibility: Offer a mix of on-campus and online courses to cater to students’ preferences for learning modes.
Support Services: Provide comprehensive student support services, including academic counselling, career guidance, and assistance for international students.

Price (Anane-Donkor & Dei, 2021):

Tuition Fees: Set competitive and transparent tuition fees that reflect the value of your courses and the resources provided.
Scholarships and Discounts: Offer scholarships, discounts, or flexible payment options to attract a wider range of students and accommodate varying financial capabilities.
Government Funding: Explore government funding opportunities and subsidies to provide more affordable training options.

Place (Distribution) (Nguyen, Mai & Anh Do, 2020):

Campus Locations: If there are multiple campuses, strategically choose locations that are accessible and convenient for the target market.
Online Platforms: Develop user-friendly online platforms for virtual learning, and ensure students have easy access to course materials and support services.
International Recruitment: Establish partnerships with agents or organisations to facilitate the recruitment of international students.

Promotion (Anane-Donkor & Dei, 2021):

Content Marketing: Create informative and engaging content that showcases courses, student success stories, and industry relevance.
Social Media: Use social media platforms to connect with potential students, share updates, and engage with audience.
Search Engine Optimisation (SEO): Optimise the website and online content for search engines to improve visibility and attract organic traffic.
Email Marketing: Implement targeted email marketing campaigns to nurture leads and keep students informed.
Open Days and Events: Organise open days, virtual tours, and industry events to showcase facilities and programs.
Testimonials and Reviews: Encourage satisfied students and alumni to share their positive experiences through reviews and testimonials.

People (McCall, Western & Petrakis 2020):

Qualified Trainers: Ensure that teaching staff are well-qualified and experienced in their respective fields.
Administrative Staff: Provide excellent customer service by training administrative staff to assist students with enrolment, inquiries, and support.
Student-Teacher Interactions: Foster a positive student-teacher relationship to enhance the learning experience.

Process (McCall, Western & Petrakis 2020):

Enrolment Process: Streamline the enrolment process, making it easy for students to apply, enrol, and access course materials.
Feedback Mechanisms: Implement feedback mechanisms to continuously improve course content, delivery, and overall student experience.
Compliance and Quality Assurance: Ensure compliance with regulatory standards and maintain quality assurance procedures.

Physical Evidence (Facilities and Technology) (McCall, Western & Petrakis 2020):

Modern Facilities: Maintain modern, well-equipped facilities for on-campus learning.
Online Learning Environment: Provide a robust online learning platform and technology for students engaged in virtual learning.

The marketing mix strategy should be continually reviewed and adjusted based on market trends, student feedback, and changes in the competitive landscape (Anane-Donkor & Dei, 2021). Regularly measure the effectiveness of the marketing efforts and adapt as needed to achieve the training provider’s goals and objectives in the Australian education and training sector.

Implementation and Evaluation

The first step was to establish an online presence (Etemadi, Hon, Murphy & Manley, 2020). The training provider created a website and social media accounts on Twitter, Facebook, Instagram, LinkedIn and Reddit. The owner already had an online social media presence with 9,000 followers on Twitter and several thousand followers on other social media platforms. The training provider’s website now has almost 3,000 subscribers after just six months.

Daily newsletters are sent out to all the website subscribers each morning highlighting the courses available and the projects the training provider is undertaking. The content of these newsletters is duplicated in daily blog posts on the website. SEO has been implemented in the daily blog posts to attract more web traffic.

It was also decided to offer weekly or monthly payment plans for students, given the high cost of the courses may make upfront payment difficult. There is also government financial assistance available for students on some Centrelink payments and all Department of Veteran Affairs payments.

The training provider has also established partnerships with several student recruitment agencies in Australia (Austin, 2021). A list of about 800 student recruitment agencies in Australia and internationally has been created, and direct contact with student recruiters in each of the agencies is being made.

Brisbane Business School has also created a list of non-accredited community colleges and neighbourhood centres in each state of Australia. The training provider is working through these lists making direct contact with the managers of each of these community colleges and neighbourhood centres to offer online courses to remote and rural communities that normally wouldn’t have access to vocational education courses (Turner, 2023).

The rationale here is that a student in these communities can get nationally accredited qualifications by studying online at the community colleges, neighbourhood centres or in the student’s own home. These non-accredited community colleges and neighbourhood centres often have access to government funding to offer courses outside the normal funding arrangements that are only available for RTOs.

Brisbane Business School has also created a list of corporate training providers in key markets such as India, China, Indonesia and several African countries. Brisbane Business School is working through these lists making direct contact with the training managers of each of these international organisations. The rationale is that the students in these international markets will be able to use the Australian qualifications to apply for visas to work or undertake further study in Australia.

More recently Brisbane Business School has created a partnership with another Australian-based training provider whose owner is a well-known influencer in China. This Chinese partnership organisation has attracted over 1,100 Chinese-based students during the past 12 months. They provide workshops explaining to Chinese students about living, working and studying in Australia.

Brisbane Business School will be designing and delivering these workshops and using them to promote their own accredited courses which the students can study online from China. These online courses can then be used for the student to work or undertake further study in Australia.

Brisbane Business School intends to continue with these strategies especially in forming partnerships with social media influencers. The partnership with the Chinese social media influencer who also owns a training organisation seems to be a strategy that has great potential. It is felt that this partnership can be leveraged to create more such partnerships.

The training provider has also managed to secure a number of students through the website and social media posts. It is felt that this strategy will attract more students in the future. However the number of students being recruited through the website and social media is currently only small.

It is also felt that creating more partnerships with student recruitment agencies in Australia and internationally will attract more students. This could be problematic however in that there are literally thousands of training providers also utilising the services of these student recruitment agencies.

Conclusion

Developing a marketing strategy for Brisbane Business School required a tailored approach that took into account the unique characteristics and challenges of the education and training sector. First, market research was conducted, and it was decided to target international students, rural and remote communities, and corporations. It was felt that these markets are not satisfactorily served by other training providers.

A SWOT Analysis, Market Segmentation Analysis and Marketing Mix Strategy were also developed to help identify the target market. From these, the best strategies were chosen and implemented. Some strategies have shown more success than others, but it is intended to continue with all strategies, as they have only been in place for a short time, and it is not yet possible to evaluate their long-term success.

Marketing for a training provider is an ongoing effort. It is essential to stay flexible, adapt to changing market conditions, and be responsive to the needs of the students and the industries being served.

References

Anane-Donkor, L., & Dei, D.-G. J. (2021). Marketing mix and students’ enrolment in institutions of higher learning. Journal of Management and Business Education, 4(2), 150–164. https://doi.org/10.35564/jmbe.2021.0009

Austin, K. (2021). Facing the pandemic: Considering partnerships for widening participation in higher education in Australia. European Journal of Education, 56(1), 98–101. https://doi.org/10.1111/ejed.12432

Bourke, A., Tascón, C., Vanderveken, J., & Ecker, E. (2022). Rethinking Post-secondary Access and Engagement for Low-income Adult Learners Through a Community Hub Partnership Approach. Canadian Journal for the Study of Adult Education, 34(2), 89–105. https://doi.org/10.56105/cjsae.v34i02.5669

Department of Education and Training (DET). (2017). Perceptions Are Not Reality: myths, realities & the critical role of vocational education & training in Australia. Canberra, Australia.

Etemadi, R., Hon, C. K. H., Murphy, G., & Manley, K. (2020). The use of social media for work-related knowledge sharing by construction professionals. Architectural Engineering and Design Management, 16(6), 426–440. https://doi.org/10.1080/17452007.2019.1688637

Foroutan, Y. (2023). Education’s economic return in multicultural Australia: Demographic analysis. Journal of Sociology (Melbourne, Vic.), 59(1), 120–141. https://doi.org/10.1177/14407833211049479

Griva, A., Zampou, E., Stavrou, V., Papakiriakopoulos, D., & Doukidis, G. (2023). A two-stage business analytics approach to perform behavioural and geographic customer segmentation using e-commerce delivery data. Journal of Decision Systems, 1–29. https://doi.org/10.1080/12460125.2022.2151071

Hsieh, Y.-J. T. (2023). Capital as vocational currency in refugee migrant education: intersection of language training, work experience and vocational qualifications. Journal of Vocational Education & Training, 75(5), 991–1012. https://doi.org/10.1080/13636820.2021.1989707

IBIS World. (2023). Technical and Vocational Education and Training in Australia – Market Research Report. https://www.ibisworld.com/au/industry/technical-vocational-education-and-training/601/

Lewohl, J. M. (2023). Exploring student perceptions and use of face-to-face classes, technology-enhanced active learning, and online resources. International Journal of Educational Technology in Higher Education, 20(1), 48–17. https://doi.org/10.1186/s41239-023-00416-3

McCall, D., Western, D., & Petrakis, M. (2020). Opportunities for change : What factors influence non-traditional students to enrol in higher education? Australian Journal of Adult Learning, 60(1), 89–112.

Nandy, S., Sondhi, N., & Joshi, H. (2023). Socio-Demographic and Loyalty Assessment of Brand Proud Consumers: A Segmentation Study. Journal of International Consumer Marketing, 1–17. https://doi.org/10.1080/08961530.2023.2195692

Ng, C. (2018). “I learn for a job promotion!”: the role of outcome-focused career goals in motivating distance learners to learn. Distance Education, 39(3), 390–410. https://doi.org/10.1080/01587919.2018.1476839

Nguyen, H. D., Mai, L. T., & Anh Do, D. (2020). Innovations in creative education for tertiary sector in Australia: present and future challenges. Educational Philosophy and Theory, 52(11), 1149–1161. https://doi.org/10.1080/00131857.2020.1752190

Pawar, S. K. (2023). Marketing education to international students: A systematic literature review and future research agenda. International Journal of Consumer Studies, 47(1), 42–58. https://doi.org/10.1111/ijcs.12883

Peters, S. (2021). Market conditions of international VET providers: a comparative analysis of Australia, UK, USA, and Germany. Empirical Research in Vocational Education and Training, 13(1), 23–23. https://doi.org/10.1186/s40461-021-00128-w

Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-Performance Analysis based SWOT analysis. International Journal of Information Management, 44, 194–203. https://doi.org/10.1016/j.ijinfomgt.2016.03.009

Pitt, C. S., Bal, A. S., & Plangger, K. (2020). New approaches to psychographic consumer segmentation. European Journal of Marketing, 54(2), 305–326. https://doi.org/10.1108/EJM-01-2019-0083

Sawang, S., Lee, C.-C., Chou, C. Y., Vighnesh, N. V., & Chandrashekar, D. (2023). Understanding post-pandemic market segmentation through perceived risk, behavioural intention, and emotional wellbeing of consumers. Journal of Retailing and Consumer Services, 75, 103482–. https://doi.org/10.1016/j.jretconser.2023.103482

Shepherd, D. A., & Gruber, M. (2021). The Lean Startup Framework: Closing the Academic–Practitioner Divide. Entrepreneurship Theory and Practice, 45(5), 967–998. https://doi.org/10.1177/1042258719899415

Turner, K. (2023). A digital career choice: rural students’ perceptions of the value of digital media learning based on their career aspirations. Australian Educational Researcher, 50(3), 625–641. https://doi.org/10.1007/s13384-022-00508-5

Zhao, X. (2020). Marketing Segmentation in Consumer Product Industry. E3S Web of Conferences, 218, 1027–. https://doi.org/10.1051/e3sconf/202021801027