educatis presentation

25.11.2013

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EDUCATIS A GLOBAL UNIVERSITY NETWORK

Ryan Bertoldi, Andrea Cardona, Hristiyana Noeva, Ziv Reichert, Lisa Rottmann, Andrew Smith

OUTLINE

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework

Marketing Strategies

Rollout Model

Financing & Budgets

OUTLOOK

Future Opportunities

26.11.2013 Global University Network Project

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We feel there is a need to provide online education solutions on a global scale – this is what our company aims to do.

INTRODUCTION

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


Life, Liberty and the Pursuit of an Education


Availability Affordability

0

200

400

600

800

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

% 1

98

4

Price increases in the US

edu

oil

health

Source: Bureau of Labour statistics Source: daily mail 11th Jan 2012

INTRODUCTION

Our mission is to build a globally connected network of esteemed and accredited universities to provide this service.


INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


Compile the best degrees from leading universities and make them globally available, thus …

Creating the online equivalent to a traditional

University education

Offering an easily accessible and highly

organized online-avenue to every aspiring student

around the world

Providing Affordable, discounted, assisted

education, for those that already have enough to

worry about.

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INTRODUCTION

In order to do this, our company has a unique functional positioning, acting both in the B2B and B2C markets.


INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


• Web 2.0 platform to take online degrees

Product

• Accredited degrees from renowned universities

• Complete a degree ‘in your own time’

• ‘Same for Less’

Key Benefits

• Those who want easy access to higher education at their convenience

Ideal Customer

• Accreditation

• Single interface

Differentiation

• Platform for admin of online degrees

Product

• Easy entry to attractive market

• Good ROI (‘More for Same’)

Key Benefits

• European Universities, that

• want to enter the market for O.E.

• have no online degrees of their own

Ideal Customer

• External focus

• Extra revenue

Differentiation

B2B &

B2C

MARKET EVALUATION

The market for online education has only recently begun to take off.


1960s: first virtual classroom (University of Illinois)

1970s: computer assisted classworks

1980s: first online courses emerge (corporations)

1990s: first full academic degree programs online (University of Pheonix)

Today: Over 20% (6.7 bn) UGs taking MOOCs, but only 4% taking online degrees

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


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MARKET EVALUATION

It promises continuous growth.

0%

5%

10%

15%

20%

25%

30%

35%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Online Enrolment [% Total]

Source: insidehighered.com


INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK



INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


MARKET EVALUATION

What are they paying for?

Who pays? Content Data Labour Services

Students Tuition Diagnostics Peer Assistance Certification Tutoring Group learning

Unis Module Networking Recruiting analytics Online Platform

Employers Custom Courses HR development

Recruiting analytics

States State subsidies

Sponsors Sponsored Courses Problem solving Access to Experts

Source: Communications of the ACM, August 2013, vol. 56 p.26 (adapted)

Currently, most MOOCs are for free, but we have identified several ways to outperform competitors and become profitable.

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There are already offerings in the market, which are however not in direct competition with our concept.


INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


Different Offering

Identical Offering

Large Offering

Small Offering

MARKET EVALUATION

BUSINESS PLAN

Our platform might look something like this …


INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


*detailed description in presentation

25.11.2013

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BUSINESS PLAN

Our platform might look something like this …


INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


BUSINESS PLAN

Our company will become the centre of a network of 10 universities with 12000 students in 5 Years.


INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


Network of 10 European Universities in 5 years

10K Students in 3 Years with 30% annual increase in Years

4&5

Become a Top 10 online degree institution (Unis and platforms) in

5 years

30% recognition at high schools in our B2C target area

Net profit from year 3

Breakeven after 3-4 Years

Introduce degrees in several languages

(dependant on partners F, ES)

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The Product that will enable us to achieve this goal is a mix of Substance, Service and Symbol.


BUSINESS PLAN

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


Symbol

Service

Substance

• Educatis-Brand

• Known & Liked

• Student support

• Admin provision

• Quality Education

• Full Accreditation

Market Perception Total Product Marketing Mix

Our aim is to posiption ourselves as a time-saving ‘more for less’ option with no obvious drawbacks.


BUSINESS PLAN

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


Geographic Reputation Existing Offer Language

European Mid-Range Online Offer English

Necessary gateway to additional revenue

Reputation-builder Good B2B

relationships

Regional Education Learning Behaviour

More for less Time-saving Convenience without

drawbacks

B2C Segment Target Position

B2B Segment Target Position

English speaking w/ internet connection

Without & looking for HE

Distance learners

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BUSINESS PLAN


In the B2B market, we will aim to achieve our required positioning by negotiating wisely with the target partners selected.

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


UNIVERSITY COUNTRY ONLINE OFFERING

Athens University of Economics and Business GR

Cardiff University UK

Erasmus University Rotterdam ND

ETH Zurich CH

Humboldt-Universität zu Berlin DE

Imperial College London UK ✔

Katholieke Universiteit Leuven BE

Lancaster University UK

London Business School UK

London School of Economics and Political Science UK

UNIVERSITY COUNTRY ONLINE OFFERING

Maastricht University ND

Stockholm School of Economics SE

The University of Manchester UK

The University of Warwick UK ✔

Trinity College Dublin IR

UCL (University College London) UK

Universitá Commerciale Luigi Bocconi IT

University of Amsterdam ND

University of Cambridge UK

University of Oxford UK ✔

BUSINESS PLAN



INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


Who Are we?

What Do we offer?

Where Are we?

When Is the right time for

you?

Why Should you

consider joining?

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BUSINESS PLAN



INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


What we want

• €2000 avg tuition per year

• 1 degree program per partner uni to begin

• Capacity for 1000 students pa

What we offer

• Good reach to potential students

• Clean process

• Quality Service

BUSINESS PLAN


In addition, we will also create revenue on a B2B basis by selling advertising spaces to selected companies, linking our students with industries relevant to their field of study.

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


25.11.2013

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BUSINESS PLAN


In order to achieve the required positioning in the B2C market, we will rely on various advertising campaigns.

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


Item Price*

Facebook -

FB Page Promotion 2400€

Facebook Ads 6300€

Youtube Ads 4200€

Google Ads 3100€

Twitter -

16000€

*sources: Facebook, Youtube, Google

Social Media

BUSINESS PLAN



INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


Item Price*

Posters (5K) 724,51€

Business Cards (5K) 105,91€

Flyers (10K) 223,17€

Stationery (10K) 480,77€

Folders (100) 244,90€

Distribution 2,3K€

4000€

*source: diedruckerei.de

Print & Other

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BUSINESS PLAN



INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


Item Price*

Offer reductions of 5% to students for the semesters during which they are working as our ambassadors

*neglected in Budgets

Ambassador Program

Recruit students

Recommend new ambassadors

Promote the Educatis brand to

peers

BUSINESS PLAN



INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


Item Price*

Most per invite only. To be included in budgets on an Ad hoc basis as and when relevant fairs occur.

*neglected in Budgets

Conferences & Fairs

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Year 1 Year 2 Year 3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J

Development α-Pilot phase β-Pilot Phase Launch

Basic Development

Beta

In-house Development >

Final Updates

MI & BPs

Recruit

Basic Ad campaigns Full Adverstising campaigns

Enrol α Enrol β Reenrol Enrol Enrol

There are several tasks which have to be carried out before we enter the market.


BUSINESS PLAN

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


*detailed description in presentation

Expenses Year 1 Year 2 Year 3 Year 4 Year 5

Web Development 100,000.00 € 160,000.00 € 160,000.00 € 192,000.00 € 230,400.00 €

Marketing 50,000.00 € 80,000.00 € 80,000.00 € 92,000.00 € 105,800.00 €

Network Setup 15,000.00 € 35,000.00 € - € 25,000.00 € 25,000.00 €

Overheads 13,000.00 € 13,000.00 € 13,000.00 € 7,000.00 € 7,000.00 €

Staff 21,000.00 € 96,000.00 € 96,000.00 € 156,000.00 € 216,000.00 €

inc costs 25,000.00 €

Total Expenses 224,000.00 € 384,000.00 € 349,000.00 € 472,000.00 € 584,200.00 €

Tuition income 1,500.00 € 300,000.00 € 700,000.00 € 910,000.00 € 1,183,000.00 €

Income from BP 6,000.00 € 24,000.00 € 26,400.00 € 6,600.00 € 6,600.00 €

Total Revenue 7,500.00 € 324,000.00 € 726,400.00 € 916,600.00 € 1,189,600.00 €

Profit (Loss) - 216,500.00 € - 60,000.00 € 377,400.00 € 444,600.00 € 605,400.00 €

Cumulative - 216,500.00 € - 276,500.00 € 100,900.00 € 545,500.00 € 1,150,900.00 €

BUSINESS PLAN


Our rollout will incur net losses in the first two years with steadily growing profits thereafter, breaking even after the first year of being fully operative.

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


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BUSINESS PLAN


Our rollout will incur net losses in the first two years with steadily growing profits thereafter, breaking even after the first year of being fully operative.

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


BEP could be brought further forward by giving

reductions on early payments -8

-6

-4

-2

0

2

4

6

8

10

12

14

1 2 3 4 5

[€ 0

0.0

00

's]

Expenses, Revenues & Profits

Annual Expenses

Annual Revenue

Annual Profit

Cumulative Profit

BUSINESS PLAN


Many venture capital firms have a track record of investments in the online and education sectors.

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


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OUTLOOK


Once the company is launched, we have identified many areas for possible future development.

INTRODUCTION

Vision & Mission

Market Positioning

MARKET EVALUATION

History & Trends

Competitor Analysis

BUSINESS PLAN

Strategic Goals

STP-Framework


Rollout Model

Financing & Budgets

OUTLOOK


Revenue-based focus

• Starbucks/ Student-run coffee shop

• WIFI cafe

• Referral system

Service and Marketing-based focus

• in-house „service and info“ centres at major partner Universities

• Testing centres /proctored exams

• Networking courses

• „Scholarship“ offerings and location assistance

• Case Study Competitions

THANKS FOR LISTENING

educatis presentation

Business

online courses

attractive market good

online equivalent

online enrolment

online education solutions

global scale

connected network of

unique functional positioning