Question 3 MindChamps PreSchool has \"a 32 percent share of the premium early ch

Question

Question 3 MindChamps PreSchool has "a 32 percent share of the premium early childhood education market in Singapore (and has) no plans to move into the mass market'" (a) Assume MindChamps PreSchool is the market leader in the premium early childhood education market in Singapore. Describe at least two appropriate strategies that the company, as the market leader, can adopt to stay ahead of its competitors. (20 marks) (b) Although the company is performing well, Mr Chiem is nonetheless keen to improve awareness in their target market. Select any two of the five promotional mix tools and recommend how these two tools can be used to build awareness of MindChamps PreSchool. Please state any reasonable assumptions you have made. (20 marks) TOTAL: 40 marks)

Explanation / Answer

Answer:(a)The two strateies that can be adopted as a market leader to stay ahead of competition are as follows:

(1) MindChamps can modify the operating business model. Currently Mindchamps mostly operates through franchisees and some owned centres.For expansion to international markets Mindchamps can focus on establishing joint ventures with investors to set a tranche of funds for inorganic growth by means of acquisitions.This can be followed by organic growth by establishing more of their own centers.The future income stream would comprise of income from fund, franchisee and royalty fees.The JV would act as a strategic platform to expand the network of the school.MindChamps should also solidify and develop a strong pipeline of franchisee centres

(2) MindChamps should continue investing in enhancing the brand reputation and continuously update the curriculum designed scientifically so as to meet the contemporary needs of the students.They should ensure that the brand recall increases manifold through the use of social media , digital marketing techniques .

Answer(b) The promotional mix tools include advertising, public relations, sales promotions,direct marketing ,personal selling.The selection of the promotional mix depends on the identification of the target group,method to grab their attention, educate them about the services,brand and infeunce them to buy the services,brand.

In order to establish the promotional mix it is necessary to identify the target market,determining the objective,design the message(content and format) to be conveyed,select the most appropriate channel(s) to suit the need.

In the given context it is suggested to use the promotional mix advertising (including digital marketing) and public relations.

Advertising:

Advertisement through radio,TV, internet,newspapers,magazines,billiboards will have the following advantages:

-enhance customer's perception, establish credibility,legitimacy

-increase recall value by advertising the message repeatedly after regular intervals so that the chances of the target listening /viewing to the message is high

-It can help in establishing the brand recognition and help the target from distinguishing your brand from that of your competitors.

- It helps in establishing brand equity and is a source of goodwill

Web advertisement will also help in tapping the target group through ad banners,paid listings, pay per click links,email advertising etc.

Public relations:

This helps in leveraging the non paid media and helps in enhancing the image in the eyes of the public.

The various advantages include:

-publicity is perceived as more credible than paid media. It is assumed that since you have not paid for it , then it has already passed throught he skepticism of the media and only after due diligence positive reviews have been established.

-It would help in connecting with more people through various social events which would also provide an opportunity for employees to interact with the general public and establish necessary connect

-It would provide an opportunity to engage with general public through press releases and apprise them of the latest developments

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