Marketing management assignment report on: Accommodation services for international students

Marketing management assignment report on: Accommodation services for international students

Intend of this paper is to discuss about a company that provides accommodation services for international students. Report starts with the introduction of the organization including its objectives, marketing plans, competitive and marketing strategies in brief. Introduction part also describes key aim of the report while defining company’s key services. Next segment describes mission and values of the company. Afterward, report would make situational analysis of organization’s core competencies taking SWOT analysis into account. Further section of the report would demonstrate PESTEL analysis of the company. This particular analysis would seek both micro and macro environmental factors that may create issue for the organization.Consequently, a complete market analysis including business plan, market size, target market growth and market trends for company’s services would also be explained in further section of the report. Subsequent part of the report would make an analysis of competitors and potential customers of the company. Additionally, following the key aspects of strengths, weaknesses, opportunities and threats would be used to identify some major issues that organization faces. Marketing goals, objectives, strategies and marketing mix would be part of the overall discussion. Description of marketing mix would involve activities of each elements of the mix. Afterward, physical evidence, forecasts, budgets and evaluation of marketing plan would be explained in depth. At the end, some decisive points would be drawn out of allover discussion as a part of conclusion.

Introduction:The main objective behind using a marketing plan helps a company in introducing new products. Marketing plans can be used by the companies to introduce a new and specific service or a complete new line of products/services. In simple words, a marketing plan is prepared to help the organization establish and accomplish goals. Marketing plan encompasses entire information about the company, its products/services and the percentage at what the products would be featured in supporting the company achieving these goals. Therefore, marketing plans are meant to set, express and organize company’s overall sales and marketing efforts. Organization taken for this particular report is ‘Paradise housing international students (PHIS)’. This company provides accommodation and support services in Sydney for international students who wish to study in Australia.Furthermore, they provide good experience and quality service to their tenants. It is a small organization, but paradise is one of the largest and special providers of reasonable housing to overseas students in Sydney. PHIS offer exclusive services to the international students which include:

• Content insurance policy of tenants
• Saucepan packs
• Single & double beds’ linen packs
• Easy connection supply of electricity
• Access to internet via Wi-Fi
• Privacy, confidentiality and security of the students
• Rent $220-$350 per week

Organization mission:Paradise housing international is well-known for its high quality accommodation services and reasonable rent for the international students. In doing so, it contributes remarkably to the international students’ potential development in safe, supportive and secure environmental system of the Sydney. In this regard, company’s mission is to offer first-class quality residential community, where respect, reliability and integrity for every international student would be valued and promoted consistently (Management innovations, 2008). Paradise housing international students have some key values through which it serve well to its international students.

• Safety: Paradise always attempts to maintain an environment where all the international students and their dependants feel both psychologically and physically safe.
• Learning: This organization widens a community that would be supportive of new, unique ideas, higher learning and hence foster personal development.
• Collaboration: It also engages with associations and take active participations with universities, residents, staff and others
• Community: Paradise fosters individuality while motivating positive approaches to cultural diversity and equality. Additionally, it endorses a great sense of connection with foreign countries and international collegiality at the greatest extent.
• Service: Along with all such great facilities to the international students, Paradise offers excellent and efficient customer service to them (Jubel, 2007).

Hence, experienced team of paradise international housing students’ professionals look forward to welcome the international students on their arrival and wish them a relaxed and pleasant stay throughout their study residency.

Situational analysis:

Paradise’ core competencies:

Core competencies of an organization are some particular factors that the company looks as being central to the employees, their work and way of working. It basically performs these following main criteria:

• It is not that simple for competitors to replicate
• It must be able to contribute to the experienced benefits of the end consumers. The service’s importance to its consumers.
• It can be use again broadly for many other products/services and markets (Prahalad & Hamel, 1990).

Every international student and their parents are intense to secure a modern and safe environment. Concerning this, Paradise has located its property close to the universities and colleges the international students are attending in Sydney. Paradise has made this their core competency and therefore delivers a good range of services that are required to make sure an effective outcome for the landlords, students and developers throughout Sydney in Australia. Paradise, in this context, has maintained its five key core competencies:Affordability

• First-class quality
• Security & Safety
• Community
• Support

Moreover, Paradise ensures that all its consultants, residents, contractors and the staff are being provided equal service, freedom from harassment and fair treatment. Thus, Paradise aims to acknowledge the individuals’ needs in carrying out its roles as a service provider and seeks to take care of every student’s needs wherever possible and treats everyone with full respect and self-respect (Cullen Coates & Associates, 2008).

Environmental analysis:

PESTEL analysis will define environmental factors successfully that may have effects on the organization.

PESTEL analysis stands for determining external factors affecting business of the company. It includes all political, economical, social, technological, environmental and legal factors (Pestel-analysis, n.d).

Political factors: These factors include tax policy, trade restrictions, political stability, tariffs, environmental law and labor laws. In case of Paradise international housing students in Sydney, the level of consumer protection, market lobbying pressure groups or political parties in Sydney, risk of military incursion and international pressure groups may create issues in developing the business.

Economical factors: Such factors contain interest rates, inflations rates, exchange rates, and economic growth. These economical factors affect the decision making of a business. Sydney’s economic growth in general, level of taxation, government spending, minimum wage rates, Australian dollar exchange rates would be some disturbing factors in Paradise’s business. Since trade is always been a critical constituent in economic prosperity of Australia, tax is levied in terms of doing business of providing accommodation for international students. Moreover, Paradise in Sydney can have some major partners for fostering its business that include UK, the United States, China, New Zealand, India and Japan, as good number of students from these countries move to Australia in order to continue their studies (Alacra, 2013).

Social factors: Cultural characteristics, health consciousness, age distribution, population growth rate, emphasis on safety and career attitudes are some social factors that impact company’s business. In case of Sydney, people have followed changes in their lifestyle patterns which would also affect international students residing in Paradise. Apart from it, consumer demographics, attitudes, opinions, level of education of the society, preferences of the consumers in international housing industry would also affect its overall business (RAPIDBI, 2007).

Technological factors: These factors encompass some aspects like R&D activities, technology incentives, automation and rate of technological change. In this context, technological factors in Australia estimate least effective production level, barriers to entry and thereby influence outsourcing decision of country’s business. In case of Paradise housing, advanced technological facilities, potential costs associated, use of innovative technologies in this industry may create big issues for the company.

Environmental factors: These involve factors such as climate change, weather that may affect the growth of a company’s business. In this case, regulatory framework related to ecological and environment in Australia would affect Paradise international housing’s business. Some international students might not be able to survive in Australian climate and then seek for accommodations in other places.

Legal factors: These factors consist of laws related to discrimination, consumer, employment, antitrust, health and safety. In this regard, such laws affect company’s operations, demand for the service and costs incurred. Australia is considered to have practical framework of financial institutions and regulations that provides openness to the investments without any undue delay. Therefore, both consumer and corporate taxation legislation in Sydney may affect the business of Paradise and increase the competition for the company (Jamie, 2012).

Product/Market analysis:It studies the market’s dynamics and attractiveness within that particular industry. Market analysis also identified as market’s documented investigation that is basically used to inform planning activities of the organization, specifically around workforce contraction or expansion, inventory, purchase, facility development, promotional activities, purchases of capital apparatuses and company’s other related aspects (CRM Trends, 2013). It involved analysis of market segmentation, target market growth, market trends, growth rate, market profitability, success factors and market opportunities (Market analysis, 2012). Analysis demonstrates that more than around 600,000 international students come to Australia for their studies. Out of total market size Chinese and Indian are at the top that usually get themselves enrolled for studies in Australia. Segmented market for this particular service target both men and women aged between 7and over 45. Apart from this international students studying in Australia were more likely to be men as compared to women (Australian bureau of statistics, 2012).

Furthermore, Australian market offers apartments for the international students and hence tries to provide safe accommodation closely to the colleges and the universities around Sydney. Market trend also involve service providers also offering benefits in terms of transport, cost of living, insurance for belongings, internet service, food and other important facilities.

Customer analysis:

International students studying in Australia are from various different countries are aged between less than 15 and over 35. Best idea to analyze the customers is market segmentation of the company and their target market. Customer analysis refers to a well-designed process of assessing customer segmentation; purchasing behavior patterns and attitudes so that effective target marketing can be done and sale can be increased for company’s business (Grow Think, Inc, 2013).

Market segmentation: It encompasses dividing a wide target market into consumers’ subsets that have common requirements and applications for the relevant services as well. Paradise’s market segmentation is as follows;

• Both male and female students of various foreign countries
• Students aged less than 15 and over 35 years
• International students seeking studies in Australian universities, schools, colleges, etc (Studies in Australia, 2012).

Competitor analysis:

Most companies think that it is best to get on with their effective marketing plans and simply ignore competition. But, it is an important and challenging task to identify the major competitors that may play big parts in creating issues in company’s strategy formulation (Research partner of the global intelligence alliance, 2012). Therefore, some competitors have been identified that may create strong competition for paradise international housing students in Sydney. There are good companies such as student housing Australia, University of South Australia, etc that are offering successful accommodation services to the international students with more benefits (University of South Australia, 2012). Hence, it is necessary to make competitor analysis in order to generate a good understanding of competitor’s past and present strategies, products/services and benefits they are offering to the customers.

 SWOT analysis:

It is the most useful technique that helps understanding the strengths, weaknesses, opportunities and threats. Strengths and weaknesses further help company develop strong points and eliminate weak points during strategy formulation. Similarly, opportunities provide company a basis for accepting something new and threats alert company in advance (Australian Trade Commission, 2012).

Critical issues:

First main issue would be great competition from universities and colleges that are providing safe accommodation to the international students. In this case, universities will not be ready to advertise the company’s services. Company can make it its objective as they provide some extra facilities than university offers.

Second biggest issue may be regarding possible lack of suitable rentals. It has been noticed that there is a lack of proper charges in some areas of Australia due to the economy. Therefore, this would become an issue for Paradise international housing students in the future and hence company will lose potential customers.

Third, already existing accommodations for international students like student housing Australia would be a great threat for Paradise as it is a new start-up and will take time in establishing its reputation in the market. Pre-existing accommodations have their broad marketing plans in place and practices and are well-set in the industry, particularly with international students.

 Market goals and objectives:

Paradise’s main objective is to gain competitive advantage over its competitors by offering better-quality accommodations to the international students. In this regard, it continues to offer safe, secure, modern and supportive environment to the customers and want to make significant contribution to the company. It needs to develop its marketing goals as there are a good number of competitors offering world-class facilities and attracting international students from various different countries.

Target market:

Company’s major target market is both men and women aged between less than 15 years and over 35 years.