Establishing as expert and broker of Australian educational services in Germany

Table of contents

LIST OF ABBREVIATIONS

LIST OF FIGURES

1 INTRODUCTION
1.1 BACKGROUND
1.2 PURPOSE OF THE THESIS
1.3 DELIMITATION
1.4 COURSE OF ACTION

2 THE EDUCATION SYSTEM IN AUSTRALIA
2.1 STRUCTURE OF THE AUSTRALIAN EDUCATION SYSTEM
2.2 THE ROLE OF LANGUAGE SCHOOLS
2.3 COMPARISON OF TUITION COSTS
2.4 ADDITIONAL AMENITIES OF AUSTRALIA
2.5 INTERMEDIATE RESULTS

3 RESEARCH IN AUSTRALIA
3.1 TRAINING AS “QUALIFIED EDUCATION AGENT”
3.2 CONTRACTS WITH LANGUAGE COLLEGES
3.3 EXCURSION: MARKETING CAMPAIGN FOR THE INTERNATIONAL HOUSE BRISBANE
3.4 PUBLISHING AN E-BOOK
3.5 PARTICIPATION IN A SEMINAR FOR EDUCATION AGENTS
3.6 INTERMEDIATE RESULTS

4 MARKETING PREPARATION
4.1 PLANNING THE MARKETING
4.2 BASIC QUESTIONS OF MARKETING
4.3 DETERMINING AND MEASURING THE MARKET
4.3.1 Analysis 1: Germans visiting Australia for a longer term
4.3.1.1 Student visa holders
4.3.1.2 Workingholiday visa holders
4.3.2 Analysis 2: Germans learning English by language travelling
4.3.3 Analysis 3: Germans completing an education in Australia
4.3.4 Analysis 4: Germans completing English courses in Australia
4.4 MARKET SEGMENTATION
4.4.1 Segmentation no. 1: German Student visa enrolments in 2009
4.4.2 Segmentation no. 2: Workingholiday visa holders
4.4.3 Segmentation no. 3: German language travellers
4.4.4 Analysis and mapping of market segments
4.4.5 Selecting a market segment
4.4.6 Customer profile
4.4.7 Effects on the product mix
4.5 EXTERNAL INFLUENCES ON THE MARKETING
4.5.1 Competition analysis
4.5.2 PEST Analysis
4.5.3 Market surveillance
4.6 INTERMEDIATE RESULTS

5 DEVELOPMENT OF A MARKETING MIX
5.1 PRODUCT
5.1.1 Analysis of the products:
5.1.2 Individual problems of the products
5.1.3 Marketing and advertising intangible products
5.1.3.1 Photographs
5.1.3.2 Brands
5.1.3.3 Advertising the brand: A Slogan
5.2 PRICE
5.2.1 Cost-oriented approach
5.2.2 Competition-oriented approach
5.2.3 Bundle Pricing
5.2.4 Applied price approach
5.3 PLACE
5.3.1 Logistic of the products
5.3.2 The distribution of the products
5.3.3 Selective distribution policy
5.4 PROMOTION
5.4.1 Personal selling
5.4.2 Referral marketing
5.4.3 Direct marketing
5.4.3.1 Email signature
5.4.3.2 Business network: Xing
5.4.4 Public Relations
5.4.4.1 Poster
5.4.4.2 e-book
5.5 INTERMEDIATE RESULTS

6 RESULTS, FUTURE APPROACHES AND CONCLUSION
6.1 RESULTS: THE MISSION OBJECTIVES
6.2 RESULTS: SPECIAL MARKETING OBJECTIVE
6.3 PROSPECTIVE MARKETING APPROACHES
6.3.1 Marketing-campaign for the e-book
6.3.2 Publication of the thesis
6.3.3 Extending the geographical range: New Zealand
6.3.4 Excursion: Profit through commissions:
6.3.5 Own Website
6.3.6 Search Engine Marketing
6.4 INTERMEDIATE RESULTS

7 CONCLUSION

ATTACHMENTS

LIST OF REFERENCES

List of abbreviations

illustration not visible in this excerpt

List of figures

FIGURE 1 - THE AUSTRALIAN EDUCATION SYSTEM

FIGURE 2 - ROLE OF ELICOS COLLEGES IN RELATION TO OTHER EDUCATIONAL INSTITUTIONS

FIGURE 3 - TOP 5 NATIONALITIES OF AUSTRALIA'S ENROLMENTS IN ALL SECTORS

FIGURE 4 - NUMBER OF GERMAN STUDENTS IN ELICOS COURSES 2007 - 2009

FIGURE 5 - PRICES FOR LANGUAGE COURSES IN LONDON

FIGURE 6 - PRICES FOR LANGUAGE COURSES ON MALTA

FIGURE 7 - PRICES FOR LANGUAGE COURSES IN AUSTRALIA

FIGURE 8 - COMPARISON OF TOTAL COSTS AND WEEKS

FIGURE 9 - CONTENTS OF THE TRAINING AS EDUCATION AGENT

FIGURE 10 - QUALIFIED EDUCATION AGENT COUNSELLORS IN GERMANY

FIGURE 11 - AGREEMENT WITH INTERNATIONAL HOUSE BRISBANE

FIGURE 12 - SLIDE OF THE AUTHOR'S MARKETING PRESENTATION FOR THE IH BRISBANE

FIGURE 13 - SEQUENCES OF THE IMPULSE STRATEGY

FIGURE 14 - MARKETING EMAIL FROM IH BRISBANE TO THE AUTHOR

FIGURE 15 - THE AUTHOR'S E-BOOK ON WWW.LULU.COM

FIGURE 16 - DESCRIPTION OF THE AUSTRALIAN SCHOOLS WORKSHOP 2010

FIGURE 17 - AGENT PROFILE OF THE AUTHOR

FIGURE 18 - PHOTOGRAPH OF THE AUTHOR AND REPRESENTATIVES OF THE SOUTHSIDE CHRISTIAN COLLEGE

FIGURE 19 - VISIONS

FIGURE 20 - THE AUTHOR'S INTENTIONS FROM A SELF-ORIENTED POINT OF VIEW

FIGURE 21 - THE AUTHOR'S INTENTIONS FROM A MARKETING-ORIENTED POINT OF VIEW

FIGURE 22 - THE PRODUCTS IN THREE DIMENSIONS

FIGURE 23 - PERSONAL STRENGTH AND LIMITATIONS OF THE AUTHOR

FIGURE 24 - QUESTIONS FOR A MARKET ANALYSIS

FIGURE 25 - ENROLMENTS AND COMMENCEMENTS OF GERMANS AT AUSTRALIAN EDUCATION INSTITUTIONS FROM JANUARY 2007 TO MAY 2010

FIGURE 26 - NUMBER OF GERMAN HOLDERS OF THE WORKINGHOLIDAY VISA DURING THE PROGRAM YEAR 2008 - 2009

FIGURE 27 - AMOUNT OF GERMANS WHO DECIDED FOR ANY LANGUAGE HOLIDAY IN 2009

FIGURE 28 - POSSIBLE CRITERIA FOR MARKET SEGMENTATIONS

FIGURE 29 - COMBINATION OF SEGMENTATION CRITERIA AND GERMAN STUDENT VISA ENROLMENTS IN 2009

FIGURE 30 - COMBINATION OF SEGMENTATION CRITERIA AND GERMAN LANGUAGE TRAVELLERS 2009

FIGURE 31 - COMPETITOR ANALYSIS

FIGURE 32 - PICTURE OF A SELF-CREATED MARKET SURVEILLANCE WITH GOOGLE

FIGURE 33 - PRODUCT ANALYSIS THROUGH CRITERIA

FIGURE 34 - PHOTOGRAPH OF THE AUTHOR AND A REPRESENTATIVE OF THE HHH INTERNATIONAL COLLEGE

FIGURE 35 - LOGO OF INTERNATIONAL HOUSE BRISBANE

FIGURE 36 - LOGO AS A REGISTERED EDUCATION AGENT FROM PIER

FIGURE 37 - PREPARATION SEMINAR FROM WWW.REISEBINE.DE

FIGURE 38 - EMAIL AS INSTRUMENT OF REFERRAL MARKETING

FIGURE 39 - EMAIL SIGNATURE AS A MARKETING TOOL

FIGURE 40 - CONTRACT WITH AA EDUCATION NETWORK

1 Introduction

The marketing of Australian educational services and the establishment of the author as an expert and broker of these services are the focus of this thesis. Therefore, a combination of marketing approaches will be used for the realisa- tion. The following introduction explains the elements of this work in detail.

1.1 Background

A temporary stay abroad in 2008 brought the author to Australia. There he attended a language school and came in contact with the Australian education system. Through conversations with language teachers, he was encouraged to become familiar with the job of “Education Agent”.

Back in Germany grew a desire to deal more deeply with the possibilities of Australian education. At the same time the author was told by friends and colleagues that they travel mostly to Great Britain or Malta in order to improve their English. The cost of such trips appeared very high.

The author decided to execute a deeper research about this issue. Moreover, the question should be clarified if and when it pays to take language courses in Australia instead of Great Britain.

As the author assumes that a language course in Australia could compete with British courses (in terms of cost), a marketing focus was chosen. A second visit to Australia was completed in order to do the practical research.

It was determined to produce a master’s thesis in English (corresponding to the topic of the work).

1.2 Purpose of the thesis

The following questions serve as motivation for this thesis:

- Are Australian language courses an alternative to European offers (especially offers from Great Britain)?
- Could marketing instruments support the author to sell Australian educational services in Germany?

The work is intended to show that language courses in Australia have at least the same value than courses in popular European destinations. In addition, it will be described what theoretical considerations are necessary for a proper marketing planning. The practical implementation of planned instruments will also be explained as well as results that were collected during the preparation time of this thesis.

1.3 Delimitation

The focus is on the marketing of Australian English courses in Germany and related products (like consultation, brochures etc.). Vacation and travel could be seen as connected topics. They are mentioned only very briefly and will not be discussed further. More educational opportunities than English courses are mentioned for reasons of completeness. They are not discussed.

The marketing planning and the practical application of the instruments suggests a kind of business establishment. Business issues (such as the choice of legal form) for se]lf-employment are not within the scope of this work.

The selected marketing tools are founded on a small budget. The author runs the marketing approaches in addition to his part-time job in a financial institution.

1.4 Course of action

The following chapter describes the structure of the Australian education system. It highlights the role of language schools and shows when it is worthwhile for a German to attend a language course in Australia. It also deals with the general motivations to travel Australia.

Chapter 3 focuses on the qualifications of the author. The provision of services (such as a consultation or the booking of a language course) requires special knowledge about the Australian education sector. The existing qualifications are described.

The 4th Chapter deals extensively with the marketing plan. Basic aspects of marketing are highlighted. The author’s vision and mission objectives form the beginning. Then, market research will be conducted to select target customers. After that, a competition analysis follows and a market surveillance is developed to monitor external influences.

In Chapter 5, a detailed marketing mix is created. The mix is based on the known model of the 4 P (the McCarthy model; product, price, place, promo- tion).

Chapter 6 demonstrates achieved marketing success. Then it describes marketing approaches that are useful for future activities.

The last chapter summarises this work and gives a conclusion.

The appendix provides evidence for the mentioned sources. An interview with Vicky Parkinson (Director of Studies of an Australian language school) enriches the end of this work.

2 The education system in Australia

This chapter provides a general survey of the educational system in Australia. After this it deals with the significant role of language schools and demonstrates the increasing interest of Germans within this system. It continuous with a comparison of tuition fees of famous language travel destinations for Germans. This supports Australia’s attractiveness as an education location (a key factor of the services the author intents to develop). At the end it stresses people’s main motives to travel to Australia.

2.1 Structure of the Australian education system

The structure of the Australian education system is similar to the German system. It starts with a differentiated school system (Primary and Secondary School) and continues either with a vocational or an academic education. The highest achievable education level is the doctoral degree (Doctor of Philosophy [PhD]). The Pyramid below shows all steps of the vocational and academic education and gives a simple overview of the system in general:

illustration not visible in this excerpt

Figure 1 - The Australian education system

Source: Own production (*ELICOS means English Language Intensive Courses for Overseas Students).

Figure 1 highlights important steps within the current Australian education system. It does not show every single detail¹ (e.g. a Registered Training Organisation [RTO] can offer a bachelor programme and not every university offers a Diploma programme).

It is not necessary to complete every single step of education to achieve the next step. For example, a student who successfully completed the 12th grade of senior secondary school can directly start a bachelor course at university. It is also possible to start a doctorate programme (PhD) after a bachelor degree (provided that the final marks are excellent).

2.2 The role of language schools

A database for Education Agents (www.pieronline.org: Attachment 2) explains that English language training usually takes place in dedicated colleges or centres. These English language colleges are solely focused on the needs of international students. This is in contrast to other educational sectors where the majority of students are Australian rather than international.

Language schools are part of the RTO sector (Registered Training Organisation) and are mentioned in figure 1 as ELICOS colleges (English Language Intensive Courses for Overseas Students). The following figure shows that ELICOS is as an important part within the education sector.

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Figure 2 - Role of ELICOS colleges in relation to other educational institutions

Source: Australian Government 2010 (https://aei.gov.au: Attachment 3)

With 38,675 enrolments in January 2010, ELICOS is the third biggest sector after “Higher Education” with 126,764 enrolments at universities or colleges and 122,142 enrolments at VET colleges (Vocational and Educational Train- ing). The total number of overseas ELICOS students in 2009 was 1,095,758 (https://aei.gov.au: Attachment 2). This amount clearly highlights the impor- tance of the sector and education in general (considering that Australia has a population of only 21m people [www.dfat.gov: Attachment 4]).

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Figure 3 - Top 5 nationalities of Australia's enrolments in all sectors

Source: Australian Government 2010 (https://aei.gov.au: Attachment 3)

The figure above shows the five largest customers within the ELICOS sector. Focussed are only the months January 2009 and January 2010. Remarkable amounts have students from China and India.

Throughout 2009, an amount of 2,079 students from Germany were enrolled. In 2008 there were 1,812, compared to 1,744 in 2007.

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Figure 4 - Number of German students in ELICOS courses 2007 - 2009

Source: Own creation, data based upon: Australian Government 2010: 2010 Pivot Tables.

The slight rise of 3.9% from 2007 to 2008 was followed by a remarkable increase of 14.7% from 2008 to 2009. The trend suggests that improving English skills in Australia becomes more and more attractive to Germans.

2.3 Comparison of tuition costs

This paragraph will prove the attractiveness of language courses in Australia. The German Association of Language Travel Providers (Fachverband Deutscher Sprachreise-Veranstalter e.V. [www.fdsv.de: Attachment 5]) pub- lished a study which identifies:

- 160,000 German language travellers every year.

The majority (47.47%) choose Great Britain as target country. The second largest group (18.65%) decide to go to Malta. Together, these 66.12% show that these destinations are the most relevant targets for German language travellers. Data was gathered from multiple sources to research the main costs for language courses in Great Britain and Malta as well as in Australia. The following subparagraphs present the comparison.

2.3.1 Prices for language courses in Great Britain

The following figure presents detailed costs for 3 language courses from different providers in Great Britain (London):

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Figure 5 - Prices for language courses in London

Source: Own creation, data based upon: Column 2: www.team-sprachreisen.de: Attachment 6. Column 3: www.cdc.de: Attachment 7. Column 4: www.studiosus.com: Attachment 8. Basis for the price of a return flight: www.lufthansa.de: Attachment 9 (prices can vary). Prices are rounded to the nearest Euro amount.

Although there are differences between single prices (e.g. accommodation prices), the hourly rate for education is similar. Also, the overall prices are not entirely different. The average price of all 3 offers comes to 2,590.00 EUR (for 4 weeks).

2.3.2 Prices for language courses on Malta

The next figure presents detailed costs for 3 similar language courses on Malta (different cities):

Figure 6 - Prices for language courses on Malta

illustration not visible in this excerpt

Source: Own creation, data based upon: Column 2: www.eurosprachreisen.de: Attachment 10. Column 3: www.alfa-sprachreisen.de: Attachment 11. Column 4: www.eurocentres.com: At- tachment 12. Basis for the price of a return flight: www.idealo.de: Attachment 13 (prices can vary). Prices are rounded to the nearest Euro amount.

Malta has higher prices for the return flight and accommodation. The actual hours of education per week are less than in Great Britain. The total amount of all offers is comparable. The average price (2,642.33 EUR) is also similar to the average price of the London offers.

2.3.3 Prices for language courses in Australia

Costs for 3 English courses in Australia were collected. The Prices are translated to Euro (EUR).

Figure 7 - Prices for language courses in Australia

illustration not visible in this excerpt

Source: Own creation, data based upon: Column 2: www.hhh.edu.au: Attachment 14. Column 3: www.sce.edu.au: Attachment 15. Column 4: www.clcaustralia.com: Attachment 16. Basis for the price of a return flight: www.hm-touristik.de: Attachment 17 (prices can vary). Prices are rounded to the nearest Euro amount. The original prices were denominated in Australian dollars and were translated at 1.65 AUD to 1.00 EUR.

The price for a return flight from Germany to Australia is high (1,000.00 EUR). Therefore, English courses from 1 to 3 weeks are very costly (compared to Great Britain and Malta). But due to lower tuition fees and accommodation cost, the price for a four week education seems to be competitive in relation to both other locations.

2.3.4 Comparison of average prices

The diagram below shows the 3 collected average total prices. After approximately 4 weeks, Australia’s price line cuts the others. It means that language courses in Australia start to become an attractive alternative to courses in Great Britain or Malta (after a period of 4 weeks).

Figure 8 - Comparison of total costs and weeks

illustration not visible in this excerpt

Source: Own calculation based on average prices of total costs in all three countries.

An extension of all lines would indicate that longer-lasting English courses in Australia (more than 4 weeks) would be cheaper than courses in Great Britain or Malta. Besides those monetary facts, Australia provides additional reasons to be visited.

2.4 Additional amenities of Australia

Beside the fact that Australia is an Anglophone country and therefore a reason- able place for English-learners, it is a big attraction for travellers from Europe and especially Germany (www.jugendreisenews.de: Attachment 18). Possible explanations for this are the warm climate, the connection to the ocean and the different mentality and hospitality. Those circumstances support a positive image for Australia. Many tourists decide to travel within Australia to visit different cities and explore more of the unique nature².

The route to Australia involves different flights which last around 24 hours altogether. The efforts for travellers are therefore much higher if the flying time is compared with a holiday trip within Europe. On the first hand, this could be seen as a disadvantage for Australia. On the other hand, the enormous efforts could be seen as a testimony of a high motivation that drives the people who decided to do such a trip.

2.5 Intermediate results

English Language courses in Australia start to become an attractive alternative after a period of 4 weeks. Longer-lasting English courses (more than 4 weeks) would be cheaper than courses in Great Britain or Malta. People have to invest high efforts to reach Australia. Figure 4 showed that more and more people are willing to do that. There has to be a high motivation to overcome the efforts. This could be another sign of a strong attractiveness.

3 Research in Australia

This chapter is intended to show that the author has the necessary training and the contacts to market Australian services.

3.1 Training as “Qualified Education Agent”

The author completed a training as a “Qualified Education Agent“. This train- ing was a web based education by PIER (Professional International Education Resources; www.pieronline.org: Attachment 19).

illustration not visible in this excerpt

Figure 9 - Contents of the training as Education Agent

Source: PIER (www.pieronline.org: Attachment 20)

The graphic above shows 4 chapters with different paragraphs. Australia's history (A1.0 - Australia) was also a part of the training as well as ethical principles (Section D - Ethics [ETH]). The main parts are:

- Understanding the Australian education system.
- Understanding regulations and legislation, especially visa legislation.
- Understanding and using statistical data for marketing.

The training was designed for six weeks self tutoring. Since finishing it suc- cessfully, the author is mentioned on PIER’s website as a Qualified Education Agent:

illustration not visible in this excerpt

Figure 10 - Qualified Education Agent Counsellors in Germany

Source: PIER (www.pieronline.org: Attachment 21)

3.2 Contracts with language colleges

After the training as Education Agent, the author contacted several language colleges in Australia. An agreement with a language college in Brisbane was achieved. The following figure shows an excerpt of this agreement:

illustration not visible in this excerpt

Figure 11 - Agreement with International House Brisbane

Source: Personal contract between the author and International House Brisbane (attachment 22).

The excerpt of the contract declares a commission of 25% of tuition fees. There are contacts to more language schools all over Australia (e.g. the HHH International College, see paragraph 5.1.3.1).

3.3 Excursion: Marketing campaign for the International House Brisbane

As part of the research for this thesis, there was close contact with the Interna- tional House Brisbane (IH Brisbane). This college considered hiring the author for a special marketing campaign. The aim was to increase the amount of cus- tomers from European countries. The amount is measured in “student weeks”. All 100 European Education Agents should be contacted. The author prepared a presentation with an individual marketing campaign. A slide with key factors of that presentation is shown below:

illustration not visible in this excerpt

Figure 12 - Slide of the author's marketing presentation for the IH Brisbane.

Source: Own creation. The contents of the slide are based on calculations for a separate elaboration. They are not further discussed.

For the administrators of IH Brisbane, the price of the campaign was important. Therefore, a detailed statement was made, how the price is put together.

The author named the campaign: “The impulse strategy”

The figure below provides a rough overview of its processes and content.

Figure 13 - Sequences of the impulse strategy

1. Creating a special „We care about Europe offer“:
- $270 weekly tuition fee and no enrolment fee.
- Offer lasts for 4 weeks.

2. Writing an newspaper article with attracting news about IH Brisbane (including the special offer).

3. Translation of the article (into German, Polish and Spanish).

4. Publication of the article in online media in Germany, Poland and Spain.

5. Creating an electronic press kit (epk) about IH Brisbane:

- Includes general information and advertising material.

6. Creating an email with an attracting headline:

- Contains an Internet address where the article can be accessed.
- Mentions the free epk.

7. Creating a second „exclusive care offer“:

- Offer includes a higher commission for agents.
- Offer is sent (via post) to Agents who replied on the email.

Source: Own creation.

At the moment of creating this thesis, the marketing campaign is not realised. The college decided against the execution.

3.4 Publishing an e-book

The author receives weekly promotion emails from language schools all over Australia (due to his name on the PIER website).

Those emails have to be criticised as they are not thought-out. The figure below presents such an email:

illustration not visible in this excerpt

Figure 14 - Marketing email from IH Brisbane to the author

Source: Received email from IH Brisbane. The name of the sender is blackened.

Besides problems in grammar and vocabulary choice, this email mixes different fonts. A personal greeting with the name of the receiver is missing as well. The address field of the email shows that the institution had addressed this as a mass email to many other agents.

These unprofessional activities motivated the author to write a booklet about the obvious problems. Due to personal experience and an interview with an expert (attachment 32), it is known that the majority of language schools in Australia are run by Asians. So, the text is aimed to Asian-owned language schools. The figure below shows the website where the e-book is available:

illustration not visible in this excerpt

Figure 15 - The author's e-book on www.lulu.com

Source: www.lulu.com (attachment 23).

3.5 Participation in a seminar for Education Agents

Due to the entry as Education Agent on the website of PIER (mentioned in 3.1), the author received an invitation to a workshop. The intention was to connect educational institutions with agents. The event’s name was:

Australian Schools Workshop.

The meeting was held in Sydney and connected 15 educational institutions with 20 agents.

illustration not visible in this excerpt

Figure 16 - Description of the Australian Schools Workshop 2010

Source: https://schoolworkshop.com.au (attachment 24).

The author got in contact with several language colleges from the entire coun- try. Therefore, the amount of contacts to language schools was increased. The figure below shows the author’s profile in the workshop’s companion book.

illustration not visible in this excerpt

Figure 17 - Agent profile of the author

Source: Australian Schools Workshop - Brochure (2010: 13).

It follows a photograph that was taken during the workshop. It shows two representatives from the Southside Christian College and the author.

illustration not visible in this excerpt

Figure 18 - Photograph of the author and representatives of the Southside Christian College

Source: Own picture.

3.6 Intermediate results

Through his training as an Education Agent, the author can demonstrate knowledge necessary to market Australian educational services. He has rele- vant contacts with different institutions and is able to design marketing plans.

[...]

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¹ The attachment contains a detailed and official overview of the Australian education system (www.aei.gov.au: Attachment 1)

² For example there are animals like kangaroos, crocodiles and koalas and natural phenomena like the red soil and Uluru (also known as “Ayers Rock”). These conditions are nowhere else to see.