CompuLanguage is a recently founded language tutoring business in the Philippines and the Indian market. Our primary services are provided in the Philippines, although the same services are also available in India. Owing to the wide development in call centre facilities and their ability to meet consumer loyalty, this venture is in reality a launching opportunity for an educational need. Due to the huge initiative to outsource customer care employment from the United States to countries such as the Philippines and India, the demand for call centres has increased. The maturity of consumers is growing, and the demand for outsourced call centres in the Philippines and India is raising the need for language skills growth and computer training to fulfil the demands of the diverse and highly competitive American market. Because of this exponential development, because of the language barrier from nation to country, Americans are finding themselves under par operation. It is our chance to train both countries’ citizens in attempts to minimise miscommunications. Our goals are those who are not functionally literate and others who use a language other than export (Diola, 2014). We should also expect that our services will be able to slow down the decline of call centres in India, when both countries are eager to expand.
CompuLanguage is approaching its first operating year. Our services have been rendered; nevertheless, in the advancement of our brand and services, marketing would be crucial as well as keeping our target market more conscious of our brand and services for our consumer base expansion. Tutors411 provides a variety of resources and topic lines to fulfil client and corporate specifications (Diola, 2014).
Market Competitive Analysis
The call centre sector is a lucrative company and it is taken advantage of by the Philippines. There are more than one hundred countries pursuing existing domination in the market, according to Monticello (2012). (p.3). The Philippines’ main rivals in the call centre industry are Malaysia, Singapore, and China. India has failed to maintain company. All Business Processing Outsourcing (BPO) companies would lose seventy percent or thirty billion dollars in valuation, particularly call centres (Diola, 2014). Due to acquisitions and up-selling tactics, India has restored market. Indian enterprises have also relocated to the Philippines, too. This is one of the major factors for the steady development of the Philippine call centre industry (Winn, 2014). There are a range of unique competitors that can be identified in India as competitors of CompuLanguage. In more precise words, this latest tutoring business would be expected to compete with language tutoring centres and services both online and on site. Two of the new center’s key rivals in the field of online language instruction would be Cengage Learning and Rosetta Stone. The proposed tutoring centre would contend against private language teaching franchises and public educational entities with respect to on-site or face-to-face language training (Learn4Good,2014).
Market Growth Potential
The Philippines growth can be attributed to low cost of services. Since costs cannot be cut anymore the focus is on productivity. India’s problem lies with English speaking skills. The issues are language fluency and the neutral accent, which are desired by most Americans. Philippinos have an advantage over Indians because they are better educated English speakers. Ten percent of the Indian population compared to thirty percent of Phillipinos is qualified for this industry. Also, India has not looked into other beneficial sectors of the market such as chat customer services (Arun, 2013).
India has a higher growth potential than the Philippines, so the growth model will focus on India. The demand for tutoring services in India is driven by lack of quality in the education system. According to Dhillon (2009), “…40 percent of all schoolteachers are absent at any given time in state-owned rural schools”. Parents compensate poor quality education by hiring private tutors.
The categories of segmentation are geographic, demographic, psychographic, and behavioral in nature. According to Kotler & Keller (2011), segmentation requires a marketer to “…identify the appropriate number and nature of market segments and decide which one(s) to target”. The explanation of each category of segmentation will be discussed from the perspective of the new tutoring services to be launched in India and the Phillipines.
Geographic segmentation refers to the categorization of target market according to their geographic location (Kotler & Keller, 2011). In relation to CompuLanguage such segmentation would see the compartmentalization by country. Consequently, the geographic market segmentation will lead to domestic and international market segmentation. The tutoring company’s primary goal is on providing computer and language services in India and the Phillipines.
The demographic market segmentation describes the segmentation of markets in terms of age, family size, gender, income, and education. With regard to CompuLanguage the market will be segmented along the lines of gender, income, education, and age. Age will represent a category of demographic segmentation. More specifically, the CompuLanguage will be characterized by a 20 to 35 age group in the Phillipines and a 20 – 30 age group in India. The other demographic variables are addressed in the target market description for each market.
The application of behavioral segmentation requires marketers to segment groups based on “…knowledge of , attitude toward, use of , or response to a product”( Kotler & Keller,2011,p.227). With regard to CompuLanguage, the tech-savvy behavior of the two target groups will definite influence their choice of tutoring services.
Under this category of segmentation, marketers focus on dividing up the market based on “…psychological/personality traits, lifestyle, or values” (Kotler & Keller, 2011, p.226). Therefore, the constant pursuit of an education and a better quality of life constitutes the foundation for this for this type of segmentation. In their desire to advance in the social and financial status members of the Indian and Phillipino target groups are “…motivated by ideals” (Kotler & Kelley, 2011, p.226).
Individual Target Group
In the development of an integrated marketing mix, it is critical to establish the profile of the specific groups being targeted by the integrated marketing channels. It is essential to determine these characteristics so that appropriate channels can be chosen to ensure effective communication.
The individual target groups are the same for both the Philippines and India. These groups fall into the categories of individual and organizational target audiences. In the individual category, the age of the target groups is between 17 and 64 years old. This age demographic reflects the working population’s average age in both the Philippines and India. The 20-35 demographic range is the age group which is most likely to visit the tutoring centre to develop their language proficiency.This age group has been identified as being dominant in the target group, which is the Phillipino call center workforce (del Rosario, 2014).In addition, the language of the target group is primarily English and Tagalog while their literacy rate is 96 percent (National Statistical Coordination Board, 2014).
Behavioral and Psychographic Characteristics
Apart from demography there are a number of other variables that will influence the target groups identified in this plan for the launch of the Tutoring services in India and the Phillipines. It is essential to note that members of this target group will be primarily influenced to use the tutoring services by their need to acquire and successfully perform in their call center jobs. According to Kotler & Keller (2011), “A need becomes a motive when I is aroused to a sufficient level of intensity to drive us to act”. The spending and technological behaviors of target groups in both launch countries manifest the foregoing desire.
At the individual level, the pursuit of language and computer skills training could be motivated by a desire to be marketable as the call center industry expands, and the need for qualified personnel develops. In India, potential users actively seek after and expend resources on private sector job training (Goswami, 2014). Members of this target market spend significant sums on new technology, education, and relevant job skills training.
Organizational Target Group
The target group at the organizational level will include large and medium sized call centers in the Philippines and India. Additionally, this marketing communication plan will target all of the call centers across India and the Philippines that accommodate 100 employees or more. Obviously, the call centers being targeted for the marketing of this English and Computer tutoring venture must be international or provide service to countries beyond its borders. In order to be included in this target group, targeted call centers will have to be providers of customer care and telemarketing services. According to VCare Corporation (2014), there are 345 such call centers on India’s call center directory (para.4). In the Philippines, there are 619 such call centers, which meet the aforementioned criteria (VCare Corporation, 2014).
Positioning refers to the strategy which seeks to ensure that a brand occupies a distinct position relative to competing brands in the market or industry in which it exists (Kotler& Keller, 2012). Following an analysis of CompuLanguage’s target market, market segmentation, and competitive analysis the following positioning statement was formulated for the new tutoring services. For young professionals CompuLanguage is the English Language learning tutoring service, which offers quality and relevant English language and computer skills training. Unlike its competitors, CompuLanguage provides the benefits of grammar, writing, and conversational skills that can be used in both computers mediated and face to face communication.
- English-speaking workforce
- Less expensive workforce
- Lower wearing down rates than in the West (Hames, 2007)
- Lack of labor
- Political resistance due to increased militant activities
- Philippine and Indian ITES organizations ought to work closely with Western governments (Johns et al, 2011)
- $69 billion ITES business by 2015
- $97.5 billion IT advertise by 2015
- The opposition to outsourcing enactment in the US condition of New Jersey (Hill & Westbrook, 2000).
- Potential enactment against outsourcing in Connecticut, Missouri, and Wisconsin
- Specialists in British Telecom have challenged outsourcing to Indian BPO organizations
According to “The global call center report: international perspectives on management and employment” (2007), the turnover rate in Indian call centers is 40 percent. The attrition rate of 40 percent shows that much of the work force moves from call center to call center. The products that CompuLanguage offers, looks good on a resume, which should increase the demand of the product. Companies will be more willing to hire individuals who have gone through formal training in the English language.
Sales Promo Budget
The annual operational budget for the company is $43,356. This number does not include the sales promotion budget. The sales promotion budget for year one should be an additional $30,000, which will be broken down as $15,000 in the first quarter to infuse some cash flow into advertising, and incorporating the success stories. Quarters two through four will each have a budget of $5,000 to keep the advertising going. In year two, the company will be looking to increase advertising and expand into new locations. The sales budget will increase to $45,000 in year two. Quarter one will have a budget of $15, 000 to expand the advertising. Quarter two will have a budget of $7,500 to keep the advertising going. Quarter three will have a budget of $15,000 to increase advertising in the new locations. Quarter four will have a budget of $7,500 to keep the advertising going. Year three will have a budget of $100,000. To maintain the new ads running, each quarter will have a budget of $25,000, but the organisation will host a work fair for the city every quarter.
Break Even Analysis
For every marketing dollar the company spends, it expects to receive two and a half in return. The operating budget the company expects is $43,356 per year, and over the next three years, the company expects to spend $175,000 in sales promotions. Over the next three years, the company plans to spend $305,068 in sales promotion and operations. With the return of two and a half to one in sales promotion dollars spent, the company plans to break even in the first quarter of year three.
In year one, CompuLanguage will be entering a new market. It is essential for the company to create a buzz around the company and the products it offers. The company will create a buzz by marketing success stories. A generic example of a success story is that there is a family where the parents are only able to qualify for low paying jobs. The family is suffering, because of lack of income. The family can barely afford a roof over their heads. The father decided to invest in himself by going through the CompuLanguage program to learn English. After completing the program, the father was able to get a good paying job in a call center. He can now afford to provide for his family. He can afford to send his children to school. CompuLanguage has given this family a chance to succeed. Success stories like these will give people hope and motivation to join the program. In year two, the company’s marketing objective is to increase advertisements, and expand into new areas of India and the Philippines. The increase in advertisements will help to ensure that CompuLanguage is a household name, and expanding into new areas will give more people the opportunity to enjoy the CompuLanguage products. In year three, the marketing objectives will be similar to year two.
Milestones in a marketing plan are the individual steps that a company will take to ensure success and implementation of clearly defined marketing goals. Hanks (2015), identifies marketing milestones as plans that directly connect marketing actions to their strategic targets. With the launch of language and computer based reporting services in the Philippines and India, there are several milestones that must be covered in a sequential order for the launch of a new product mix to be successfully designed and operated in both countries. These include identification of specific market needs, identifying the end user and the consumer of call center services, interactive website launch that integrates multiple language choices to accommodate menu of countries, the hiring of sales and educational forces and finally the marketing of the product to the individual consumer wishing to obtain or advance in the call center or job market and then to the companies that will be hiring them.
Table I.2 Presumed Salary Set for Operational Budget
|Presumed Salary Set||Yearly||Benefits (16% Base)||Total||Per Day|
|Information Technologies Manager||$56,000.00||$8,960.00||$64,960.00||$177.00|
|Human Resources Manager||$45,000.00||$7,200.00||$52,200.00||$143.00|
Control Metrics and Methodology to Measure Marketing and Product Performance
Controls are designed to ensure adequate performance, provide fiscal insight, and ensure that operational performance are on target goals. International companies need controls to address marketing and product performance that are specifically adapted to the markets for which the product exists and is being marketed, thus Risko & Wiwczaroski (2014). Control must address the cultural features, differences in markets and adapted goals to said markets to ensure that targets and trends are on point. Control metrics and methodology may be broken down into two categories for this company: Marketing Performance and Product/Product Mix Performance.
The primary objective of the various marketing strategies employed in marketing the tutoring center will be to present the center as the center of excellence, one that equips students with hands on experience in managing call centers and interacting with customers appropriately. The marketing strategies therefore seek to create adequate awareness on the uniqueness and quality of the tutoring services offered at the center. This way, the service appears favorably in the market a feature that will make it easy to build a profitable customer base. Advertisement is among the primary marketing strategies that will help raise the awareness of the target market on the existence of the new service (Shankar & Gregory, 2012).
The marketing program of the tutoring center just as any other marketing program will comprise of product, pricing, distribution, customer service and promotion (Blick, 2011).
Product in this context refers to the tutoring services. The tutoring center will strive to safeguard the quality of the services thereby attract customers based on the quality of the services.
Price is a core component of the marketing mix that influences consumers’ purchase habits. The tutoring center will strive to offer high quality services at an affordable price. Affordability in this context will safeguard the profitability of the company while making the services affordable (Hoffman & John, 2009).
Customer service is an effective marketing strategy that enhances the profitability of a product. The tutoring center will interact with its customers and strive to include the suggestions of the customers besides addressing their concerns prudently.
The company will run a series of adverts among other promotional messages with the view to raise awareness on the tutoring center and its new products.
The tutoring center enjoys an active and competitive market. The rise in the number of call centers in India creates a perfect environment for the operations of the tutoring center. The company will enjoy a pool of resources and a viable market. This creates a perfect platform for the company to carry out a series of market researches and analyses in order to safeguard the profitability of the company (Zarrella, 2010).
Contingency Planning Elements
It is essential CompuLanguage have contingency plans in place to counter any unplanned issues that may arise. CompuLanguage must continuously evaluate the success of the products in the current markets. According to Morello (2015), there are seven ways to evaluate a marketing plan. The first business subject to evaluate is the return on investment (ROI). Evaluating the ROI will show a business owner how much the company is making compared to how much the company is putting into the business. When the ROI is high, the market is profitable. The second business area to evaluate is the sales numbers. When management compares the actual sales number with the projected sales numbers, they are able to make strategic and budget adjustments. The third business area to evaluate is customer responses. The feedback from customers is invaluable information for a company. When CompuLanguage knows what works, and what does not work for customers, the company is able to make the necessary changes to improve customer service. The next business area is expansion. The sixth business area is the sales people. The sales people are on the front lines of the company’s marketing efforts. If the sales people are providing negative feedback, or that customers are not aware of the promotions available, then it is time to revamp the marketing efforts for the product. The seventh and final business area to evaluate is the competitor’s response. CompuLanguage must be flexible in its marketing and contingency plan to adjust with the market. Continuous evaluation of the seven business areas will be key in the company making the necessary adjustments to its marketing plan. CompuLanguage is focusing its marketing in the Philippines and India. If one market is more successful than the other is, the company will adjust focuses toward the more successful market. The company will also conduct research into other geographical locations that might have a demand for the product.
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