Marketing Study of a Tutorial Services Agency Essay Example

Marketing Study of a Tutorial Services Agency Essay Marketing study determines the reliability of the entire study. The chapter depicts the past and future demand and supply for the service and analyses to determine the market position of the proposed project. Marketing is defined as the area of management responsible for researching and satisfying customer needs. (University of Auckland Business School, n. d. ) Relevant questions for the study answered by the target market are presented in this chapter.All other aspects affecting the demand and supply are also discussed including accessibility of the location, the sources of marketing demand and supply and the probability of future income for the business. The market share of the proposed project will also be determined on this chapter. There is a need to take into consideration every susceptible aspect of the market because the success of the business greatly depends on satisfying the demand from the customers and the methods used by the business to capitalize on these.Target Market Description The business will be situated at 2nd floor, Tierra Linda Pampangas Best Building, along Jose Abad Santos Avenue, City of San Fernando, Pampanga. City of San Fernando is the capital of Pampanga where a number private schools and establishments are located. The target customers are the elementary students studying in private schools in the City of San Fernando nearest to the location of the office. These are the University of the Assumption, San Lorenzo Ruiz Center for Schools and Studies, Asian Montessori Center, Mary the Queen Academy of Pampanga and Mexico Ecumenical Development Center for Children, Inc.Parents looking for a trustworthy and tr ained tutor can come to the business and have one. Whiz will guarantee that only screened persons, particularly the licensed teachers, fit for the job will be deployed by the business. The trust of the parents to the establishment is the prospect of the proponents so that patronage is maintained all throughout the elementary years of the tutee. 29 University of the Assumption Department of Accountancy Feasibility Study Market Survey for Tutorial Agency Greetings! We are fourth year accountancy students from the University of the Assumption working on our feasibility tudy for agency offering tutorial services. Please help us through filling out this survey form. Kindly put a check mark on your answers. Thank you for your participation. Child’s Information Name: Address: School: Grade Level: Age: Gender: ___ Male ___ Female Questions Related to the Study 1. Do you believe in the improvement that tutorials can bring to your child’s studies? ___ Yes ___ No 2. How many time s in a week should a child take his/her tutoring session? ___ twice ___ weekdays ___ others, specify ___ thrice ___ weekends 30 3. How long should a child spend for each session? __ one hour ___ three hours ___ two hours ___ others, specify 4. How much do you think should be paid for a one hour tutorial session? ___ P200 – P250 ___ P250 – P300 ___P300 – P350 ___ P350 – P400 5. Do you know tutors who are hired through an agency? ___ Yes ___ No 6. Do you have a current tutor for your child? ___ Yes 7. If yes, is the current tutor a teacher? ___ Yes 8. ___ No ___ No If no, will you consider hiring a tutor from an agency for your child to improve his/her academic performance in school? ___ Yes ___ No 9. On summer vacation, will you consider hiring a tutor for your child to get him/her ready for the incoming school year? __ Yes ___ No 10. What summer courses would your child be interested in? ___ Math ___ Science ___ English Proficiency ___ others, specify 31 Survey Summary Survey questionnaires are given to 100 respondents to determine the demand and other information to be considered in the proposed business. The following graphs show the results and analyses of the survey. General Information 55% 45% Male Female Figure 3. 0 Gender Fifty-five (55) of the respondents are female and forty-five (45) are female. San Lorenzo Ruiz Center for Schools and Studies Mexico Ecumenical Development Center for Children, Inc.University of the Assumption Grade School Mary the Queen Academy of Pampanga Asian Montessori Center 5% 23% 11% 24% 37% Figure 4. 0 Schools Thirty-seven percent (37%) of the respondents are students from the University of the Assumption Grade School; twenty-four percent (24%) are from the Mexico Ecumenical Development Center for Children, Inc; twenty-three percent (23%) are from the Asian Montessori Center; eleven percent (11%) are from Mary the Queen Academy of Pampanga and five percent (5%) are from San Lorenzo Ruiz Center for S chools and 32 Studies.The number of respondents for each school are based on the population of their students. Grade I Grade II Grade III Grade IV Grade V Grade VI 11% 18% 6% 18% 25% 22% Figure 5. 0 Grade Level Twenty-five percent (25%) of the respondents are Grade I students, twenty-two percent (22%) are Grade II, both Grade III and Grade IV are eighteen percent (18%), eleven percent (11%) are Grade V and six percent (6%) are Grade VI students. Questions Related to the Study 1. Do you believe in the improvement that tutorials can bring to your child’s studies? 8% 92% Yes No Figure 6. Improvements through the Tutorials This question is asked to know the possible market of the business. Ninety-two percent (92%) of the respondents believe that tutorials bring improvements to the child’s studies and only eight percent (8%) answered no. 2. How many times in a week should a child take his/her tutoring session? 12% 8% 4% 2% 74% Weekdays Thrice Twice Weekends Others Figure 7. 0 Frequencies of Tutorial Sessions 33 The results of this question will be used to determine the number of times per week the business will provide for tutorial sessions.Seventy-four percent (74%) of the respondents choose to have tutorial sessions on weekdays, twelve percent (12%) prefer thrice a week, eight percent (8%) favors two tutorial sessions per week and four percent (4%) choose to have the tutorial sessions during weekends. Two percent of (2%) of the respondents prefer four times or every other day to have the tutorial sessions. 3. How long should a child spend for each session? 0% 18% 4% one hour two hours 78% three hours others Figure 8. 0 Hours per session This will determine the hours the business will provide for each tutorial session.Seventy-eight percent (78%) of the respondents prefers one hour for every session and eighteen percent (18%) choose to have two hours for every tutoring session. Four percent (4%) chooses to have it for thirty to forty-five minutes a se ssion. 4. How much do you think should be paid for a one hour tutorial session? 2% 4% 2% P200 P250 P250 P300 92% P300 P350 P350 P400 Figure 9. 0 Fee for One hour session The question asked will help the business to set the daily and monthly fee for the tutorial services.Ninety-two percent (92%) of the respondents are willing to pay a fee ranging from two hundred to two hundred fifty pesos for a one hour session. Two 34 percent (2%) prefers to pay a fee ranging from two hundred fifty to three hundred pesos, as well as for a fee ranging from three hundred fifty to four hundred pesos. Four percent (4%) are willing to pay three hundred to three hundred fifty pesos for one hour session. 5. Do you know tutors who are hired through an agency? 0% 100% Yes No Figure 10. Agencies for Tutors This question will provide information about existing business which is the same as the proposed business. All of the respondents have no knowledge of an agency that deploys tutors. 6. Do you have a cu rrent tutor for your child? 65% 35% Yes No Figure 11. 0 Current Tutor for Child This is to know the current status of the market. Only thirty-five percent (35%) of the respondents are engaged in tutorial services and the sixty-five percent (65%) who are not, represents a portion of the target market. 5 7. In relation to No. 6, if yes, is the current tutor a teacher? 21% 79% Yes No Figure 12. 0 Teachers as Tutors Seventy-nine percent (79%) of the tutors currently hired by respondents are teachers, the other twenty-one (21%) are not. 8. In relation to No. 6, if no, will you consider hiring a tutor from an agency for your child to improve his/her academic performance in school? 20% 80% Yes No Figure 13. 0 Hiring Tutors through an Agency This is important to determine the demand for the proposed business.Eighty percent (80%) of the respondents who are not engaged in tutorial services are willing to consider hiring tutors through an agency which provides a favorable demand. 9. On summer vacation, will you consider hiring a tutor for your child to get him/her ready for the incoming school year? 14% Yes 86% No Figure 14. 0 Summer Services This question will determine the demand of the business during summer. Out of all the respondents, eighty-six percent (86%) consider hiring a tutor during the summer. 36 10. What summer courses would your child be interested in? 7% 40% 40% 3% Math Science English Proficiency others Figure 15. 0 Courses for Summer The results of this question will be used to determine what courses should be offered during summer. Both Math and English Proficiency were selected by forty percent (40%) of the respondents and thirteen percent (13%) chose Science. Seven percent (7%) of the respondents chose courses like Arts and Sports and Filipino. Sources of Marketing Demand Base on the research made, the survey revealed that 52 out of 65 or 80% of the respondents who do not have a tutor consider hiring a tutor from an agency.The interest to avail of th e service was used in measuring the demand. Sources of Marketing Supply Base on the research made, the survey revealed that 50 out of 100 or 50% of the respondents, which are the licensed teachers in the City of San Fernando, Pampanga, are willing to work as a tutor to the agency with all the employment conditions laid out by the researchers. This data will be used by the researchers in measuring the supply and operating capacity of the business. Demand-Supply Analysis Demand Analysis Demand refers to customer’s need of the chosen service. 7 Table 6 Historical Demand School Year 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Historical Demand (Persons) 880** 900 920 941 962 984* * % of persons who are willing to have a tutor x Number of students in the selected private schools who do not have a tutor = 80% x 1229 = 984 (Refer to survey summary and see appendix for selected private elementary schools) **Base from the data obtained from the selected private element ary schools, there is an average increase of 2. 3% on the number of enrolled elementary students.Previous years= current year demand/ 102. 3% The equation to be used: Y= a + bx Where: ) 38 To compute the projected demand, the Linear Regression Method will be used. One of the applications of this method is the trend line which is used in business analytics to show changes in data over time. Table 7 Computations for Projected Demand School Year 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 X 1 2 3 4 5 ? x= 15 Y 880** 900 920 941 962 ? y=4, 603 xy 880 1800 2760 3764 4810 ? xy=14,014 b= 21 ? x 1 4 9 16 25 5 ) a= 816 Table 8 Projected Demand using the Linear Regression Method (Y) Projected Demand (Persons) 963 984 1, 005 1, 026 1, 047 School Year 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 X 7 8 9 10 11 39 Table 9 Target Market 2013 Number of students in the selected private schools who do not have a tutor 1,229 (x) those who want to avail of tutorial services 80% (x) the assum ed probability of the survey 50% (=) Target Market 2013 492 Refer to survey summary and see appendix for population.Supply Analysis The Whiz Tutorial Services Agency will be located at 2 nd floor of Tierra Linda Building, along Jose Abad Santos Avenue, City of San Fernando, Pampanga where a number of private schools are at nearby area. The researchers used an estimated rate of supply based on the average percentage increase of license teachers per year in the City of San Fernando. Table 10 Computation for 2013 Supply Total population of selected private elementary schools in San Fernando, Pampanga 1,891 (x) % of children who have tutors 35% Total Supply (persons) 662Table 11 Historical Supply School Year 2007-2008 2008-2009 2009-2010 2010-2011 2011-2102 40 Historical Supply (persons) 622* 630 638 646 654 2012-2013 662 *Based on the data obtained from Department of Education, there is an average 1. 3% increase in yearly supply. Previous years = current year demand/101. 3% The equatio n to be used: Y= a + bx Where: To compute for projected supply, the equation for Linear Regression Method will be used. Table 12 Computations for Projected Supply School Year 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 x 1 2 3 4 5 ? x= 15 Y 622 630 638 646 654 ? = 3,190 xy 622 1,260 1,914 2,584 3,270 ? xy= 9,650 x? 1 4 9 16 25 ? x? = 55 b= 8 a= 614 41 Table 13 Projected Supply Using Linear Regression Method School Year 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 X 7 8 9 10 11 (Y) Projected Supply (Persons) 670 678 686 694 702 Demand-Supply Gap Analysis Table 14 Variance between Historical Demand and Historical Supply Historical School Year Demand (a) 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 880** 900 920 941 962 Historical Supply (b) 622 630 638 646 654 Unsatisfied Demand (c) 258 270 282 295 308 Unsatisfied Percentages (d)=(c)/(a) 29. 2 30. 00 30. 65 31. 35 32. 02 In school year 2007-2008 to 2011-2012, the demand and supply has an average unsatisfied demand of 3 0. 62%. Whiz Tutorial Services Agency will then at least supplement this discrepancy for a certain percentage. 42 Table 15 Variance between Projected Demand and Projected Supply Projected School Year Demand (persons) (a) 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 963 984 1, 005 1, 026 1, 047 Projected Supply (persons) (b) 670 678 686 694 702 Unsatisfied Demand (persons) (c) 293 306 319 332 345 Unsatisfied Percentages (d)=(c)/(a) 30. 3 31. 10 31. 74 32. 36 32. 95 In school year 2013-2014 to 2017-2018, the demand and supply has an average unsatisfied demand of 31. 72%. 43 University of the Assumption Department of Accountancy Feasibility Study Availability of Supply Survey for Tutorial Agency Greetings! We are fourth year accountancy students from the University of the Assumption working on our feasibility study for agency offering tutorial services. Please help us through filling out this survey form. Kindly put a check mark on your answers. Thank you for your participation. G ender: Civil Status: Age:Questions Related to the Study Are you willing to work as a part-time tutor to an agency? ___ Yes ___ No Are you willing to be deployed on the residence of the student to be tutored? (Deployment will be based on the address of the tutee nearest to yours. ) ___ Yes ___ No Are you willing to tutor for one hour each, two grade-schoolers on weekdays (Monday to Friday) for a monthly salary of P5, 000. 00 plus transportation allowance? ___ Yes ___ No 44 Survey Summary Survey questionnaires are given to 100 respondents to determine the possible supply and other information to be considered in the proposed business.The following graph shows the results and analyses of the survey. 50% 50% Yes No Figure 16. 0 Teachers willing to be Hired as Tutors The questions are asked to know the percentage of licensed teachers who are willing to work as part-time tutors to an agency with the conditions of being deployed on the residence of the tutees and a monthly salary of P5, 00 0. 00 plus transportation allowance. Fifty percent of the respondents are willing to be hired as part-time tutor to an agency with the said employment conditions.Table 16 Availability of Supply *Population of licensed elementary teachers in City of San Fernando 671 (x) those who want to work as a part-time tutor to an agency (x) the assumed probability of the survey (=) Available Supply 50% 50% 168 *Data was obtained from the Department of Education City of San Fernando. 45 Table 17 Firm’s Annual Capacity in Person Year 1 Firm’s Maximum Operating Capacity Annual Maximum Capacity in Person (Operating Capacity x 2 tutees) The increase of the capacity is made by comparing the projected demand and availability of supply.The increase in operating capacity is within the availability of supply. Firm’s Market Share The firm’s market share refers to the percentage of total sales of service during a particular period in a geographical area. The equation for the com putation of the firm’s market share is as follows: Market Share = X 100% Table 18 Computation for the Firm’s Market Share Year 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 Computation x 100% x 100% x 100% x 100% x 100% Market Share 10. 7% 11. 72% 12. 72% 13. 68% 14. 60% 80 90 100 110 120 Year 2 Year 3 Year 4 Year 5 40 45 50 55 60 46 Based on the computation, the firm has an estimated average market share of 12. 68% within its five years of operation. Table 19 Projected Service Revenue (2013 – 2014) Services Offered Regular Services Summer Services Total Service Revenue Firm’s Capacity (in person) Price per month Number of Months Projected Service Revenue P4, 000, 000. 00 80 P5, 000. 00 10 80 P5, 000. 00 2 P800, 000. 0 P4, 800, 000. 00 Marketing Program and System Market Philosophies and Tasks The researchers will employ the marketing concept in conducting the marketing activities to entice the target market. Marketing concept (NetMBA, n. d. ) fo cuses on customers’ needs and wants and ends at creating long-term customer relationship by providing the desired satisfaction more effectively than competitors do. Thus, through the marketing concept, the organization will be benefited in the long run.Marketing Mix Strategies The business will attempt to generate a positive response from the target market by blending the marketing mix variables in an optimal manner. Product mix strategy- as a service business, the management will make sure that only quality service will be provided to the customers by effectively screening qualified tutors for the job. As such, only licensed teachers will be accepted as tutors. The kind of 47 service that the firm will provide shall determine the customer engagement with the business.Promotion mix strategy- long-term engagement of the customers’ with the business is the aim of the business. Market Timing and Scheduling Strategies †¢ Introduction stage- for the first year of the o peration, the business is expected to generate income, but on an unhurriedly trend or even operate with a loss because of pre-operating expenses, until the market becomes fully aware of the business. Extensive marketing will be employed in order increase market awareness of the services offered by the business as well as the benefits that can be derived there from. Growth stage- the second year up to third will be the growth stage of the business. The business will try to generate more revenues in order to cover up the losses, if any, during the first year of operation. Thus, the overall service that the business will provide shall keep the loyalty of the customers in order to realize the same. †¢ Maturity stage- from the start of the fourth year of operations, the business will mature with respect to loyal customers and the generation of income. It is said that during this stage, competitors begin to arise. †¢ Decline stage- depends ntil when the business will consistentl y earn income; but since education is necessary, opportunities are continuously seen by the proponents. However, remarketing is necessary in order to effectively lengthen the life to the business. Marketing Strategies To be successful in markets in which economic growth has leveled and in which there exist many competitors, a well-developed marketing strategy is required. Building the business around the profitable satisfaction of customer needs will help achieve success. The following strategies will be applied: 48 †¢Promotional devices such as streamers, banners, tarpaulins, leaflets, calling cards, and stickers will be distributed. †¢ Marketing advertisements on the social networking sites. Market Risk Factors that may affect the proposed project will be the current and future competitors. At present, there is no similar business in the area, but the teachers employed in the schools of the target market are perceived to be the competitors themselves, as well as the curr ent tutors of the students. On this matter, the proponents consider offering employment to the teachers.Through this, the business will be effectively advertised to the students, thus increasing the demand and earning a reasonable profit. The teachers will be attracted to the offer because it will only be a part-time job and they will have a source of income even during summer breaks. The business assumes its competitive edge of hiring only licensed teachers who are trustworthy and trained over the said competitors. Marketing Mix When marketing the services of the firm, the business needs to create a successful mix of the service, price, place, and promotion.These variables are the parameters that the business can control subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the said factors on the target market in order to create a perceived value and generate a positive response. Service Every parent would want the ir child to achieve a better academic performance. Setting aside genetic factors, supervision and tutorial play a big part in realizing the same. Education has always been given importance because it is believed that it will be the stepping stone to one’s success.By these, people will continue to value education, giving the business an opportunity to satisfy the customer’s needs. 49 Price Price is the one that creates revenue all the other marketing mix variables are costs. Research about the markets opinions on pricing is important as it will indicate how the service is valued and how much the market is willing to pay for it. In theory, price is really determined by the discovery of what customers perceive is the value of the service to be provided.The pricing strategy that the business will adopt will be one that can compete with the existing rates in the market. Promotion Promotion is the process of communicating to customers. It will provide information that will assist the market in making the decision of availing the service. Successful promotion will increase revenues and as such, advertising and other costs are spread over. Increased promotional activity will enable the business to develop and build-up a succession of messages and can be extremely cost-effective. 50 We will write a custom essay sample on Marketing Study of a Tutorial Services Agency specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Marketing Study of a Tutorial Services Agency specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Marketing Study of a Tutorial Services Agency specifically for you FOR ONLY $16.38 $13.9/page Hire Writer