Globalisation and increased competition: using market intelligence to rise to the challenges

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Globalisation and increased competition using
market intelligence to rise to the challenges

• Kay RenfrewOakleigh Consulting

AUA Conference 2 April 2008
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Contents

• Globalisation
• Context
• Challenges
• Addressing the challenges
• Practical examples
• Benefits
• Conclusions
• Discussion points

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Globalisation
make worldwide in scope or application Webster
dictionary
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Context

• Pressure on HEIs to
• Increase student numbers while maintaining
  academic standards
• Actively engage in the widening participation
  agenda
• Effectively plan and manage responses to
  increased demand
• Satisfy a demanding and increasingly well
  informed student body

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Changing student body

• Next generation of students likely to be
• More demanding
• More sceptical
• More inclined to complain
• More experimental
• Less loyal
• More outcome focused
• More litigious
• Easily bored
• Better able to access information

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Challenges faced

• Growing mobility and global focus of student body
• Need to appeal to overseas student
• Combat competition for UK students from overseas
  institutions
• Sell expertise beyond national boundaries

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Challenges faced

• Research capacity and HE provision is expanding
  in countries such as China and India
• Countries such as Australia are actively
  recruiting the increasing numbers of potential
  students from these countries
• Costs of studying in the UK is high compared to
  other countries (except the US)
• More (non-English speaking) countries are
  offering courses taught in the English language

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Addressing the challenges

• Proactively recruit and retain the best students
  from wherever they are based
• Develop programmes of study that are attractive,
  relevant and reliable
• Have a recognisable and consistent market
  presence
• Be aware of what is offered by other institutions
  in the UK and overseas
• Understand current and potential student
  requirements
• Identify and develop strategic alliances with
  HEIs outside the UK

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Practical examples
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• International institution developing capacity
• in Middle East

• Issues faced
• Rapid expansion of HEIs in Middle East meant
  strong competition for a limited pool of suitably
  qualified applicants.
• Previously introduced new programmes not
  attracted expected numbers of applicants.
• Needed to ensure development of credible business
  cases for funding, and development of means for
  validating forecasts of predicted student
  numbers.
• Programmes needed to be academically and
  financially viable.

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(1) Contd

• Work undertaken
• Independent review of business plans and
  assessment of supply-side assumptions, through
• Information gathering (business cases and
  supporting data publicly available statistical
  data and contextual information)
• Review and clarification of data
• Development of forecasting model

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(1) Contd

• Information gathering
• Comprised competitor and statistical data on
  potential students from the following sources
• Internet sources data from Ministry of Higher
  Education on UAE nationals UAE census data
  IELTS data on national achievement in language
  proficiency information on programmes offered by
  other HEIs in UAE strategic priorities for
  development of the UAE economy
• British Council information on programmes offered
  by FE/HE Institutions in UAE, and high level
  overview of the HE market in the region
• Competitor institutions telephone interviews
  with staff of competitor institutions and
  collection of prospectuses
• Institutions own business plans, strategies, data
  on student population and candidates, interviews
  with Heads of Institutes and other key contacts

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(1) Contd

• Clarification of data
• Through discussion with HEI members of staff

• Development of the forecasting model
• Forecast population growth (based on estimated
  growth rate from historical census data)
• Forecast application numbers for UAE nationals
  (from historic data on applications to national
  universities)
• Forecast choice of study area by UAE nationals
  (based on historic data on choices made by
  applicants to national institutions)
• Forecast number of eligible candidates for each
  programme (based on ration of eligible candidates
  to applications received)
• Further refined eligibility figures by factoring
  in language proficiency data and level of
  academic achievement (based on data from the
  institution on its current student population and
  previous candidates)

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(1) Contd

• Constraints/issues
• Limited data for analysis
• New market, so limited data on existing students
• Lack of consolidated data at national level
• Lack of data on residents who are not nationals

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(1) Contd

• Outcomes
• Forecasting model providing proximate numbers and
  characteristics of applicants enabled
  prioritisation for introduction of programmes of
  study
• Scenarios for phased expansion of the HEI in the
  Middle East based on market demand
• Guidance on systematic collection of consistent,
  reliable and valid data to inform future
  reiterations of the model

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Questions?
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(2) UK Russell Group University

• Issues faced
• HEI wished to improve the recruitment of quality
  students to its own programmes in face of strong
  competition from geographically proximate
  institutions
• Needed to differentiate itself and its programmes
  from those of competitor institutions to attract
  the most capable students

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(2) Contd

• Work carried out
• Systematic analysis of recruitment activities of
  competitor institutions through use of UCAS
  statistics and national student survey data
• Critical review of institutions own recruitment
  activities at University, faculty and school
  level through use of UCAS data, HEIs own entry
  data and national and internal student surveys
• Comparison of policy with practice in perspective
  of key national/regional demographics

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(2) Contd

• Constraints/issues
• Lack of coordination in terms of marketing and
  recruitment activities at different levels in the
  University
• Internal communication issues
• Lack of systematic approach for collation and
  dissemination of management information
• Lack of consistency and synergy in branding of
  the University

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(2) Contd

• Outcomes
• Analysis of the data allowed
• Targeted and specific actions drawn from findings
  for recruitment activities rather than
  generalisations
• Critical review of existing processes enabling
  evidence based, prioritised recommendations on
  recruitment activities
• Comprehensive information on competitor
  recruitment activities for comparison

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(2) Contd
Questions?
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Conclusions

• Strategic and proactive use of business and
  market intelligence can help
• Differentiation from other institutions
• Reputation raising
• Attracting and retaining the most capable
  students
• Reaching new pools of potential students
• Sustainability of programmes of study
• Evaluating and measuring risk

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Questions / discussion

• Trends?
• Obstacles?
• Impact?

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Thank you
Kay Renfrew Oakleigh Consulting Telephone 0161
835 4100 Mobile [phone] Email
kayrenfrew_at_oakleigh.co.uk www.oakleigh.co.uk