mp week three - MKTG1001: Semester 1 Marketing Principles...

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Unformatted text preview: MKTG1001: Semester 1 Marketing Principles This week… • M ark etin g P lans (from last week) • T he M ark etin g E n vironm en t • M ark et R esearch & Inform ation • F irst G roup R ep ort • Chapters 3 & 4 MKTG1001: Semester 1 A M a r k e t in g C a s e S t u d y T he R ise and F all of A B C L earning C en tres MKTG1001: Semester 1 ABC Learning Centres P r o v i d e d c h i ld- c a r e f o r p r e s c h o o l c h i l d r e n Was publicly listed in 2001, with 43 centres. It was valued at $25m Grew dramatically, by 2008 they had over 2,000 centres They had also expanded into the USA, the UK and NZ They became the largest listed child-care centres in the world MKTG1001: Semester 1 But… Despite their successful growth period, by the end of 2008 they entered voluntary adm inistration T hey had sold off their international operations, but this w asn’t enough to save the com pany – they w ere $800m in debt MKTG1001: Semester 1 S ta rted a s a fa m ily b u sin ess in 1 9 8 8 The owner – Eddie Groves – was very ambitious, and already had a successful milk distribution business at the age of 19 (capital for first child-care centre) He had a high profile – including owning the Brisbane Bullets basketball team In 2006, he was listed as Australia’s richest person under 40 years H e w o u ld b e in v o lv e d w ith m a n y b u sin e ss e s o v e r th e n e x t 2 y e a r s His wife would eventually gain a PhD in education MKTG1001: Semester 1 Due to the growth of women in the work force, demand for child-care grew quickly A ‘b a b y b o n u s’ w a s a lso in tr o d u c e d in 2 4 , w ith th e g o a l o f in c r e a sin g b ir th r a te s in A u str a lia The stock market was booming from 2003 to 2007, with the index doubling (3,000 to 6,000) The governm ent introduced significant child-care subsidies in 2004 – first 30% , then 50% of fees This resulted in easy finance for growing companies This led to less price sensitivity and higher daily fees MKTG1001: Semester 1 Year Aust NZ US UK Total 2001 43--- 43 2002 97--- 97 2003 187--- 187 2004 327--- 327 2005 660--- 660 2006 905 28 324- 1,257 2007 1,084 104 1,015 35 2,238 2 % m a rk et sh a re in A u stra lia O nly 2% in U SA – saw huge potential there A very fragmented industry – chains this large are uncommon MKTG1001: Semester 1 Believed that growth would lead to efficiencies (lower cost ratio to sales) O ffe r e d m u ltip le b r a n d s in th e U S – w ith d iffe r e n t p r o g r a m s a n d fe e sc h e d u le s Big em phasis on differentiation through educational aspects Focus on reducing staff turnover – lowest in the industry MKTG1001: Semester 1 W ith th e U S e x p a n sio n , th e y n e e d e d to fin d n e w a u d ito r s T h ey d id n ’t view som e of th eir reported in com e as in com e 1. ABC would purchase the child-care business – not the land/buildings 2. The owner of the property would guarantee the income for the first three years 3. Often the owner (developer) would pay fees 3....
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This note was uploaded on 11/06/2011 for the course MARKETING 1001 taught by Professor Unknown during the Three '09 term at University of Sydney.

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mp week three - MKTG1001: Semester 1 Marketing Principles...

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