Pannasastra University of Cambodia

1.0 Introduction We are having a wonderfully productive year at Allendale. We have 360 students enrolled which is a larger number than we have had for many years. Each month we are delighted to see new students finding Allendale as their new school home. Our students are involved in Regular, German Bilingual, Cogito or Interactions programming and are working hard to do their best possible work. Our students are doing very well academically and involved in many, many diverse activities. During our first academic reporting period, 230 of our students were on the Honour Roll, achieving either Honours with Distinction, Honours or Honourable Mention. Athletically we are having a very successful year as each of our teams has come home with a medal -- Boys' Soccer: Gold; Girls' Soccer: Silver; Junior Boys' Volleyball: Gold; Junior Girls' Volleyball: Bronze; Senior Boys' Volleyball: Silver; and Senior Girls' Volleyball: Bronze. Presently we have a large Cheer Team, four Basketball Teams and three Curling Rinks participating in leagues and activities. The Fine Arts are flourishing at Allendale School through Art, Drama and Music. Throughout the school and beyond, our students' artistic talents are on display through creative, well executed pieces of art. There is excitement within our Drama Program through both our improve Teams and our 30 plus students involved twice a week practicing for our school play to be performed in May 2012. Over a third of our students are involved in our growing Music Program participating in Concert Bands, Jazz Bands, Guitar Classes or Glee Club. Our community celebrated a magnificent evening of music in early December as our students performed to a full house and most appreciative audience. During our Results Review this fall, we had the opportunity to celebrate the achievements of our students during the 2010-2011 school year. Academically, our students achieved very well. Whether they were in Cogito, German Bilingual, Regular or Interactions programming, our students took on the challenge of doing the best work they could do. Provincial Achievement Test results showed our students were consistently performing substantially above provincial averages. Between 87% and 95% of our grade nine students writing Provincial Achievement Tests in Mathematics, Language Arts, Science, and Social Studies achieved the acceptable standard and between 29% and 44% achieved the standard of excellence on these tests.

Pannasastra University of Cambodia

We are very proud of the students of Allendale School who each day work together and ensure that this is a good place to work and learn together. Please feel free to contact us at anytime. Our contacts are Allendale@epsb.ca or 780-434-6756. We would love to hear from you. 1.1 Marketing Vision The Allendale Language School marketing plan has been created at a crucial juncture for the business. Its past success has been with hundreds of students and a handful of teachers. Over the coming three years, the business can and will expand to reach thousands of students with dozens of teachers. It will do this through rebranding and redevelopment of some basic marketing materials, a systematic referral program for customers and businesses, care with customer satisfaction, and a focus on marketing training for all employees. Marketing will be a total activity and not just one area of what the company does. 1.1.2 Goals Personal goals: CEO achieve 5 speaking engagements per year CEO attend 3 language learning conferences per year CEO devote more than 5 hours per workweek to marketing Business goals: Total annual revenue to exceed $2.2 million in 2012 Total class enrollments to exceed 2,800 in 2012 Lead conversion rate to reach 25% in 2012 Tactical goals: Achieve over 140 customer testimonials in 2012 Achieve 75 PR mentions in 2012 Hire total of 8 new full-time staff over next three years Strategic goals: Maintain greater than 98% customer satisfaction with students completing classes Keep dropouts under 2% Raise $500,000 capital funds in 2012 to fund expansion to two new areas in 2013

Pannasastra University of Cambodia

1.1.2 Purpose The Allendale Language School marketing plan is designed to give focus to the CEO and the core staff (sales representative and customer service representative) as the company expands over the next three years. Its primary purpose is to enable the school to reach many more students with affordable language classes which set them up to achieve real breakthroughs in language learning. The business believes that communication through language learning is important for many to have successful, happy lives and careers, and to achieve their greatest potential, whether the student is an immigrant learning English or an American hoping to travel. 1.1.3 Picture A student joining the Allendale Language School should hear of its remarkable promise - that he will achieve real breakthroughs in understanding and communication over a three month period taking classes after work for an affordable rate. Allendale Language School will deliver on this promise through its careful, systematic teaching process, careful qualification of students and checkpoints for student learning, and engaging, interactive classroom activities that transcend rote learning. The success that the school has achieved with its method in the past will be brought to a far greater number of students who will be happy to sing the praises of the company by recording video testimonials about their progress.

Pannasastra University of Cambodia

1.1.4 Gap Dashboard The Gap Dashboard reflects the numerical representation of the company's primary personal goals for the CEO, business goals, tactical goals, and strategic goals over the next three years. On a monthly basis, the CEO will review the Gap Dashboard actual versus planned results and identify any shortfalls. With the full-time staff, he will devise a plan to rectify the shortfall. Gap Dashboard Year 1 Personal CEO Speaking Engagements CEO language learning conferences CEO hours on marketing Business Total revenue Class Enrollments Lead Conversion Rate Tactical Customer Testimonials PR Mentions New Full-Time Staff Strategic Customer Satisfaction Rate Dropout Rate Capital Raised 98.00% 2.00% $0 98.00% 2.00% $0 98.00% 2.00% $500,000 0 27 90 113 60 2 141 75 3 $1,427,375 1,800 20.00% $1,784,219 2,250 22.00% $2,230,273 2,813 25.00% 3 470 3 300 3 240 3 4 5 Year 2 Year 3

1.1.5 Ideal Customer The ideal customer for the Allendale Language School's foreign language programs falls into one of two categories. The first is a middle class working person who feels the need to learn a foreign language either for a pressing work-related need, a desire to have more options in career, or a wish

Pannasastra University of Cambodia

to travel to a foreign country and enjoy the experience more. These individuals, however, feel they cannot afford one-on-one tutoring, but are too social to be able to be content with a book, online program, or software to learn the language. They desire a classroom experience both as a structured approach to force them to make a commitment to the language learning and as a means to have extensive social interaction through the process. The ideal customer for Allendale Language School's ESL program is a low-income worker whose lack of English language skills reduces his or her earning potential. Again, this individual feels he or she cannot afford one-on-one tutoring, and may not have a computer to make use of language software or an online program. 1.1.6 Remarkable Difference Allendale Language School's remarkable difference is its guarantee that students who apply themselves in any of its classes will complete it with a breakthrough in understanding or are entitled to repeat the class for 75% off. The School is certain that a student who attends all classes, completes all homework, and participates in class discussions and activities will be ready to "graduate" to the next class after 12 weeks because of the tested approach to language learning it takes, incorporating multiple modes of learning. 1.1.7 Differentiators Allendale Language School differentiates itself through a combination of its unique method and unique guarantee. The method uses a standard length of class (12 weeks, 3 class meetings per week of 2 hours each for 72 class hours), activity-based curriculum focused on group and whole class activities and discussion, and extensive homework requirements which will average to an additional 72 hours of work. The method has been tested to work with both visual and auditory learners. The goals of each class are a small breakthrough in understanding and communication which will open up new options for the student. The school's guarantee is that a student who misses no more than one class meeting, completes all homework, and actively participates in class activities and discussion will pass the end of class test and be ready to move up to the next class level should they choose to continue. If they do not, the student is entitled to repeat the class for a significantly reduced fee - only 25% of tuition. This guarantee is put into use less than 2% of the time (2 out of 100 students or fewer repeat a class).

Pannasastra University of Cambodia

2.0 Situation Analysis 2.1 Marketing Need 2.1.1 Marketing Materials Key marketing materials for Allendale Language School currently consist of:

ESL program Spanish brochure Foreign language program brochure Business cards for Founder/CEO Newspaper ads Promotional flyers Website Pay-per-click ads

In addition to revising these marketing materials based on the company rebranding, new marketing materials will be developed, including:

Generic business cards for teachers Business cards for sales representative Marketing kit for businesses focused on ESL program Marketing kit for businesses focused on foreign language program Direct mail pieces focused on area businesses Direct mail to students focused on customer referral program

2.2 Marketing Calendar On a daily basis, Monday to Friday, the CEO of Allendale Business School will devote 8 - 9 AM to review of and implementation of marketing activities. During 2010, the first year of this plan's implementation, additional time beyond this hour per day will be required to manage the activities described on the Milestones chart. After this year of redevelopment, the monthly marketing themes on the Monthly chart will be used to focus each month's marketing. At least 10 hours per month should be spent on the month's marketing theme. On a weekly basis, the CEO will review a lead and conversion report created by the sales representative to identify what marketing activities are leading to success. After the third year, there may be a need to hire a Marketing Director to continue the company's marketing growth as

Pannasastra University of Cambodia

the company moves into new markets. At that point this management will be taken on by the Marketing Director, and the CEO will further limit the time she spends on marketing management. 2.2.1 Monthly Month s 1 2 3 4 5 6 7 8 9 10 11 12 Marketing Theme Website Advertising Customer Referral Program Customer Satisfaction Surveys and Analysis Newsletters Seminars PR efforts Business Referral Program Marketing Training Facebook Page Testimonials Annual Reviews and Planning

2.2.2 Milestones Start Advertising New Flyer Campaign Brand Relaunch Print Ads Online Ad Campaign Revise Total Advertising Budget Start Referral Programs Design Marketing Kits Print Marketing Kits Identify Business Targets Send Direct Mail to Date 5/1/2010 5/15/201 0 5/1/2010 6/1/2010 End Date 5/15/20 10 5/31/20 10 5/15/20 10 6/15/20 Budget $2,000 $1,000 $250 $500 Manager CEO CEO CEO CEO Date 4/1/2010 5/1/2010 3/1/2010 End Date 5/31/20 10 5/31/20 10 5/1/201 0 Budget $1,000 $2,000 $0 $3,000 Implemented By Marketing firm Marketing firm Sales Rep Sales Rep Manager CEO CEO CEO Implemented By Marketing firm Marketing firm Sales Rep

Pannasastra University of Cambodia

Businesses Set Appointments with 6/15/201 Businesses Total Referral Programs Budget Start Branding Logo and Brand Development Slogan Development Marketing Material Redesign Marketing Material Reprint Create Teacher Jackets Total Branding Budget Web Development Website Form Redesign and Launch Date 1/1/2010 2/1/2010 3/1/2010 5/1/2010 5/1/2010 Start Date 5/1/2010 End Date 3/1/201 0 3/1/201 0 5/1/201 0 5/31/20 10 5/31/20 10 End Date 5/31/20 10 6/30/20 10 Budget $10,00 0 $0 $10,00 0 Start Customer Satisfaction Write Satisfaction Surveys Develop Database Administer First Survey 7/1/2010 Date 2/1/2010 3/1/2010 End Date 3/1/201 0 5/1/201 0 7/7/201 0 7/15/20 Analyze Survey Data Total Customer Satisfaction Budget 7/7/2010 10 $0 $5,100 $100 Budget $0 $5,000 Manager CEO CEO Custome r Serive Rep Custome r Service Rep Teachers Customer Service Rep Implemented By Customer Service Rep Programmer Manager CEO CEO Budget $2,000 $500 $1,000 $2,000 $1,000 $6,500 Manager CEO CEO CEO CEO CEO 0 10 7/15/20 10 $0 $3,750 Implemented By Marketing firm Marketing firm Marketing firm Marketing firm Marketing firm Implemented By Marketing firm Sales Rep CEO Sales Rep

Facebook Page Design 6/1/2010 Total Web Development Budget

Pannasastra University of Cambodia

$28,35 Totals 2.3 The school 2.3.1 Foreign Language Program: (levels for each language include intro, basic 1, basic 2, intermediate 1, intermediate 2, advanced 1, advanced 2)

French Spanish Italian German Japanese Cantonese Mandarin Portuguese

The cost of each class is $900 per student. Classes are 20-25 students. Some classes are held three times per year or more, while others are only held once a year. Classes are held in three "seasons" - Spring (January - May), Summer (June -August), Fall (September - December) with appropriate breaks for holidays. Each class has 36 class meetings. Periodically, special "For Travelers" and "For Business" classes will be held when there is the demand shown. 2.3.2 English Language Program: (also offered in intro, basic 1, basic 2, intermediate 1, intermediate 2, advanced 1, and advanced 2 levels) - English for Spanish Speakers - English for Non-Spanish Speakers The cost of ESL classes are $540 per student. Classes are the same size and schedule as the foreign language program. English for Spanish Speakers is taught by an English-Spanish bilingual teacher. Allendale Language School will offer the following services to encourage new students: Suspects: Newsletter

Pannasastra University of Cambodia

Prospects: Open house class nights (where classes in session can be observed by a small number of visiting prospects) and Language Seminars (90 minute talks by a master teacher or the founder of Allendale Language School about language learning tips and the Allendale method). Open house nights are free to attend and Language Seminars are $20 for foreign language program seminars and $10 for ESL program seminars. 2.4 Competition 2.4.1 Price Rationale The pricing for Allendale Language School is based both on competitive research and on the cost modeling of the school. Competitors offering one-on-one and small class experiences cannot beat Allendale on price. Spread over three months, the price is very affordable for most students. However, the pricing allows Allendale to cover its costs and earn a profits after a certain volume. By hiring good (but not necessarily great) teachers and training them well with a strong method, Allendale reduces the cost of teacher wages. Allendale holds ESL classes in space provided by partnerships with area schools and businesses to maintain lower overhead and allow those classes to be priced lower. The special language seminars are priced to be very affordable for anyone to get a taste of what Allendale Language School is all about. However, they are not provided for free as a means of qualifying prospects who are willing to spend money on improving their language skills.

3.0 Marketing Strategy 3.1 Core Strategy The positioning goal for Allendale Language School is to be the best language learning option for residents in the Allendale, New Jersey area who need both a social, structured atmosphere and an affordable price. The external marketing message stresses both the social, interactive aspect and

10

Pannasastra University of Cambodia

the price of $25 per class for foreign language learners and $15 per class for English as a second language learners. Measurable results from the marketing should include:

- Classes run at at least 75% capacity and an average of 90% capacity. - Expanding the number of classes per year by 25% each year over the next three years.
3.2 Core Branding Elements Core branding elements for Allendale Language School must be revisited to support this plan and move the language school into the future. The current marketing focuses only on the affordable cost of classes and does not speak of the social aspect of the school. To accomplish this change will mean the redeveloping the following elements: Logo - to incorporate the idea of two people in conversation

Colors - less garish and more professional and subdued than current colors (colors must support the idea of the school as a professional school with excellence and not a fly-by-night operation) a history of

Images - should primarily use photos of actual students in discussion with each other and the teachers Slogan - current slogan of "Breakthroughs in language you can afford!" should be redeveloped to focus on the interactive aspect of class (i.e "Interact, Speak, and Succeed" or something along those lines)

With the redevelopment of these core branding elements, the company's printed materials, website, advertising, business cards, and more must be redesigned and reprinted over the next year. The school will also introduce a uniform requirement for teachers including a branded jacket and name tag which must be worn during all classes.

3.3 Critical Numbers The Allendale Language School must monitor its sales, unit costs, expenses, and key marketing metrics closely to determine if marketing is having the proper effect and the company is on target with its goal of 25% growth per year over the next three years. The growth in sales will be driven

11

Pannasastra University of Cambodia

by an increase in leads (in part from a large increase in the number of referrals from students and businesses, as well as from good PR mentions and the persuasive effect of testimonials) and an increase in lead conversion rate (brought about by a better website and a more systematic sales approach with the company sales representative). Marketing metrics will be tracked through Salesforce.com, making use of its Web-to-lead function and dashboard reporting. Expenses and sales will be tracked in QuickBooks, both through automatic entry from credit card transactions on the internet and manual entry of some sales and expenses by the company sales representative and bookkeeper. The CEO will look at reports from these programs on at least a weekly basis. 4.0 Marketing Mix 4.1 Product Marketing & Distribution Marketing physical products requires consideration of packaging, distribution channels, and frontend retail display. Get tips and food for thought in marketing your products in these helpful articles. 4.1.1 Product marketing Successful companies dont market products, they market offerings. An offering encompasses the benefits or satisfaction provided to your target markets, tangible and intangible. To successfully market your product, you must understand its benefits from the buyers perspective. This approach allows you to think beyond the tangible product entity and consider what the consumer is actually buying.

4.1.2 Product bundling Product bundling is combining two or more products or services together, creating differentiation, greater value and therefore enhancing the offering to the customer. Bundling is based on the idea that consumers value the grouped package more than the individual items. Bundling can enhance an organizations offering mix while minimizing costs. This is attractive to consumers.

12

Pannasastra University of Cambodia

4.1.3 Packaging and Labeling Product Product packaging must be appealing in order to attract and hold the consumers eye and attention, and serve as an efficient and functional shipping container. Most physical products require packaging. This involves the design of a box or wrapper that contains the product. In addition to the function it performsto hold and protect the product. 4.1.4 Product and brand failures: a marketing perspective Overview Product and brand failures occur on an ongoing basis to varying degrees within most product-based organizations. This is the negative aspect of the development and marketing process. In most cases, this failure rate syndrome ends up being a numbers game. There must be some ratio of successful products to each one that ends up. 4.1.5 How to market an innovative product First, start with the benefit of innovation. Innovation works in business only when it creates a benefit. That benefit could be a cost savings or efficiency that benefits the producer or distributor, or a cost savings or anything else that benefits the customer. So your first step is to understand and demonstrate the benefit.

13

Pannasastra University of Cambodia

4.2 Promotion Create a marketing plan that gets results #1 bestselling software now with even more tools!

Why should you choose Sales and Marketing Pro? Focus on action and results! Packed with advice and examples Easy forecasts and budgets Present your plan with style Instant download! Sales and Marketing Pro includes the newly updated, best-selling Marketing Plan Pro. A $179 value, it's just one of the great tools included. DOWNLOAD $179.95 $129.95 60-day money-back guarantee Everything you need to be a sales and marketing pro! Easy-to-use software with detailed instructions Develop a sales strategy Organize contact information for clients and leads Manage your pipeline with a robust CRM tool Create a bulletproof marketing strategy Launch website Learn the ins and outs of social media Become a master email marketer Get press for your business Discover the secrets on online advertising and internet marketing Respond to leads and customer emails in record time

14

Pannasastra University of Cambodia

Easy-to-use software with detailed instructions

Sale and Marketing Promotion Software Email Center Promotion, the easiest way to manage

Business Plan Pro: The most popular business plan software for 10 years and counting. Find out more

Sales and Marketing Pro : Create an action-oriented marketing plan to grow your business. Find out more

Email Center Pro : Because better email management leads to happier customers. Find out more

Limited Time Savings! : Save $130 when you buy Business Plan Pro Premier and Sales Marketing Pro. Find out more

and

$40 off Premier : Save a bundle on the most popular edition of Business Plan Pro. Save today

Business Planning Software 500+ sample business plans, step-by-step guidance, lender-ready documents Learn more

15

Pannasastra University of Cambodia

Starting a Business Startup Guides : Industry specific guidance to help with business planning. Learn more Small Business Marketing

Marketing Software

4.2.1 Advertising Media Tracking Kits Requested Contact #DistributionCost/AdTotal CPMAdvertising Medium

Contact Name
Google Adwords removed removed removed removedremovedremovedremovedBergen Record removedremovedremovedremovedNJ Star Ledgerremoved removedremovedremovedremovedLocal Flyersremoved removed 4.2.2 Public Relations Public relations often referred to as PR helps an organization gain exposure to potential customers, using topics of public interest and news items, and can help build rapport with customers or the general public. Read these articles and see examples of how good PR can help your business. - Publicity Temperature: How hot is your campaign? When it comes to your business or product, the amount of heat you apply to your publicity campaign can be the difference between success and failure. Too much publicity heat and youll get burned; not enough publicity heat and your campaign wont be well done (I know, enough of the heat references already.). Believe it. - Product Publicity & PR Success and How You Can Do It Too The Client: New Deal Playing Card Company Making the best of the hand you are dealt. Several months ago I took a phone call from an executive at The New Deal Playing Card Company. Her removed removed

16

Pannasastra University of Cambodia

husband had just invented, patented and launched a unique line of ergonomically correct playing cards designed to fit the natural. - Product Publicity & Business Publicity Market to the Media First When starting a successful business venture or launching a new product, most entrepreneurs or business owners conduct some type of marketing research to determine the extent of their prospective customer base. And when getting the word out to that customer base, many entrepreneurs may turn to the media to help generate a buzz for them. - Generating Publicity Will the Media be Interested in my Product or Business? When it comes to launching a new business or product, some marketing consultants might say that EVERY product is appropriate for a publicity or media exposure campaign. That is true to a degree, but as a PR/publicity professional and former media person, I would qualify that statement by saying that although new products would benefit. 4.3 Web Plan The Allendale Language School website must be revised to reflect the rebranding and new marketing initiatives of the company. The purpose of the website is to provide the majority of information that potential students need to decide to enroll in a class by meeting the following objectives:

Proving the expertise of Allendale Language School in the area of language training Displaying testimonial proof from past students and businesses of the quality of Allendale Providing information on all upcoming scheduled classes, class requirements, and fees Providing class materials, times, locations, and details for enrolled students To this end, the website includes the following pages: Homepage and school overview The School's Guarantee The School's Method Foreign language resources on the Web ESL resources on the Web Founder profile School History Testimonials of past students Testimonials of business partners

Language School's education

17

Pannasastra University of Cambodia

Frequently Asked Questions (not answered elsewhere) Enrolled student portal with details on the class(es) the student is enrolled in, downloadable class materials, additional resources, class times and schedule, location, and announcements from the teacher

Enrollment page (series of forms to complete to enroll and set up an account) Contact page for additional questions

All pages relevant to ESL courses also have a Spanish-language version. The website's enrollment page and forms will be redesigned to be 3 simple steps. Also, a page describing the customer referral program and a page focused on the business referral program will be added. 4.4 Social Media Plan In the next six months, a Facebook page for Allendale Language School will be launched to allow current students to interact with prospective students and further promote the school. The page will be a forum for questions and comments from past, current, and prospective students, as well as a discussion area based on discussion questions posed by the school and by users. The Facebook page will be monitored by the newly hired sales representative of the company. 4.5 Lead Generation Plan: Allendale Language School generates leads from the following sources:

Customer referrals Business referrals Pay-per-click advertising on Google Adwords Print ads in the Bergen Record and New Jersey Star Ledger Strategically placed promotional flyers in area businesses serving prospects for ESL and foreign language programs (i.e. businesses serving the town's Hispanic population, immigration law offices, travel agencies, community centers, restaurants and stores with community information boards)

4.6 Referrals

18

Pannasastra University of Cambodia

Allendale Language School will develop a systematic referral program to capitalize on the success it has had to date in earning referrals from its students. Approximately 30% of new students are currently referred by a current or past student. To encourage student referrals, Allendale Language School will offer a discount on the next class taken by the referring student. The discount will be equal to 25% of the cost of the class taken by the referred student. A referring student who brings in multiple referrals can end up with a free class. Allendale Language School will also seek out professional referrals from likely business contacts. These include the following:

Locally-based businesses serving non-English speaking populations Locally-based businesses whose employees are largely foreign-born Locally-based businesses with an international element

To earn these referrals, Allendale Language School will market directly to these businesses with direct mail letters, focused marketing kits to those who express interest, and sales meetings to discuss details. The goal is for businesses to either offer to pay for these classes for their employees, offer to pay for part of the class, or promote the classes to their employees without paying. 4.7 Lead Conversion Plan To convert the leads generated through marketing activities into customers, Allendale Language School implements the following:

Print and e-mailed newsletter (both Spanish and English versions), sent every other month Improve online registration form so that it can be done in three easy steps (course selection, scheduling, payment). Provide frequently asked questions on the website to reduce the need to answer additional email questions. Hire a sales representative to answer questions by email and phone that go beyond information the website provides (currently, the company founder and CEO provides all sales service). The sales rep will be entitled to commissions based on sales generated by his or her sales efforts.

19

Pannasastra University of Cambodia

4.8 Service Experience The Allendale Language School service experience rests on the teacher/student relationship at its base. However, systematic measures can and will be taken to improve the relationship. A customer satisfaction database will be created to begin tracking customer satisfaction levels based on three checkpoints - 4 weeks into a class, 8 weeks into a class, and at the completion of a class. These checkpoints and the resulting tactics to work with students and teachers having trouble is the company's "WOW Process". Loyal students will, in turn, become ambassadors for the company through testimonials and the company Facebook page. 4.8.1 Loyalty Product/Service Offerings Loyal students of Allendale Language School can be an asset in helping to convert additional leads. In the past, the school has sought written testimonials by emailing past students. The school will seek to record video testimonials from satisfied students through video chat sessions or through videotaping their comments at class graduations. These graduations are held periodically on the completion of Basic 2, Intermediate 2, and Advanced 2 classes. Graduations are parties featuring a short ceremony and food relevant to the language being studied. Each passing student receives a certificate of completion signed by their teacher and the school CEO. Loyal and successful past students will be encouraged to become Fans of the company Facebook page and contribute to conversations there. The possible interaction between these successful students and prospective students will help to sell the company's classes. 4.8.2 WOW Process Customer satisfaction is based on setting expectations carefully and then ensuring that those expectations are met. To set expectations correctly, the website and teachers describe the intended results of each class in the same terms, emphasize the amount of homework required, and speak of the importance of classroom interaction, discussion, and attendance. Student satisfaction is measured at three points:

After 4 weeks, one third of the way through the class via a confidential survey which is sealed and delivered to the Allendale Language School office After 8 weeks, two thirds of the way through the class via another confidential survey

20

Pannasastra University of Cambodia

After the class is completed with a follow-up survey via mail or email

Between the results of the survey and teacher observations, students who are having specific problems learning within the class are pinpointed at 4 weeks and 8 weeks so that additional attention can be paid, and alternate activities chosen. If the student simply does not seem a fit for an interactive mode of learning, the student is approached by the company's customer service representative to discuss this. If they are not enjoying the class or succeeding in learning, they may be offered to receive a prorated refund for the classes not completed so that they can put that money towards an alternate learning method. Having a student leave a class early is preferable to seeing the student fail to succeed and not wish to repeat the class. Although the surveys will collect qualitative information, they will also ask students to rate their satisfaction with their learning, the materials, and the teacher on a numerical scale so that the numbers can be totaled and averaged. Teachers who fall below average will be pinpointed to receive additional training and asked to observe lessons by teachers with above average satisfaction levels. The results of satisfaction surveys will be entered into a database by the company customer service representative so that this kind of analysis can be done. 5.0 Financial 5.1 Break-even Analysis Break Even Analysis is an expected component of most business plans, especially for start-up companies. This calculator shows how much revenue you need to cover both fixed and variable costs. 5.2 Market Research and Analysis Developing a winning marketing strategy begins with a clear understanding of your target audience. Market and industry research can help. These articles explain what market research is, how you can find research data to help define and segment your target market, and what part research data should play in an effective marketing plan. 5.2.1 Market analysis for your online business Every Web plan should include a clear explanation of the market segmentation, target market focus, and a market forecast. It should include detailed information about each of the target market

21

Pannasastra University of Cambodia

segments. To develop an effective plan based on your customers needs and nature, you should be able to answer these questions: Who are they?

5.2.2 Market research Most every organization will benefit from even the most elementary market research. If it does not provide new information, it will confirm what is known. Market research is the process of gaining information about your market. Preferably, this is specific information about your target market and the key factors that influence their buying decisions. 5.2.3 International market research Market Data for Other Countries As the power of the Internet spreads throughout the world, demographic and economic statistics are becoming more available. If youre working on market data for your own country, check with your local business development agencies, business schools, and industry trade associations for help in finding the information you need. 5.2.4 Sources for market forecast data Relatively few marketing plans are blessed with budgets for professional market research. When you cant pass the problem to professionals, then you have to make some intelligent estimates. Get comfortable with the idea of making good educated guesses. Many people think there is something magic about this, some technique they dont know that the experts. 5.2.5 Knowing your customers lets you target marketing efforts Unless you are a new business without a customer base at all, your market research should begin with learning as much as possible about your present customers. Who are they? How did they find you? What do they like about you? What dont they like? Use customer surveys, random interviews, feedback sheets, and a lot. 5.3 Sales Forecast

22

Pannasastra University of Cambodia

Sales are projected to increase by 25% per year based on the systematic marketing activities, the untapped market in the Allendale area, and the availability of teaching talent. Foreign language classes are more numerous than ESL and make up twice as many enrollments. Seminars are primarily promotional events which offer an overview.

Sales Forecast

Year 2Year 3
Unit SalesYear 1 1,5001,875Foreign Language Enrollments

750938ESL Enrollments1,200 1,0631,328Foreign Language Seminars Attendees600 797996ESL Seminars Attendees850 4,1095,137Total Unit Sales638

3,288
Year 2Year 3Unit Prices $900.00 $900.00 Foreign Language EnrollmentsYear 1 $540.00 $540.00 ESL Enrollments$900.00 $20.00 $20.00 Foreign Language Seminars Attendees$540.00 $10.00 $10.00 ESL Seminars Attendees$20.00

$10.00
Sales

$1,350,000 $1,687,500 Foreign Language Enrollments $405,000 $506,250 ESL Enrollments$1,080,000 $21,250 $26,563 Foreign Language Seminars Attendees$324,000 $7,969 $9,961 ESL Seminars Attendees$17,000 $1,784,219 $2,230,273 Total Sales$6,375

$1,427,375 Year 2Year 3Direct Unit Costs Year 1 Foreign Language Enrollments
ESL Enrollments

$90.00 $81.00

$90.00 $81.00

$90.00 $81.00

23

Pannasastra University of Cambodia

Foreign Language Seminars Attendees ESL Seminars Attendees $10.00 $7.50 $10.00 $7.50 $10.00 $7.50

Direct Cost of Sales Foreign Language Enrollments ESL Enrollments $108,000 $48,600 $135,000 $60,750 $168,750 $75,938

$10,625 $13,281 Foreign Language Seminars Attendees $5,977 $7,471 ESL Seminars Attendees$8,500 $4,781 Subtotal Direct Cost of Sales $169,881 $212,352

$265,439

5.4 Marketing Expense Budget The marketing expense budget includes the cost of achieving all initial plan milestones and the ongoing operational cost of marketing activities over the next three years. Marketing expenses are somewhat seasonal, as there is a push to advertise each new season of classes in the month preceding the start of that season (December, May, and August). Some costs are spread through the year, such as satisfaction surveys, which will be administered every four weeks once they start. Expenses for 2010 will include some one-time rebranding and website redevelopment costs which will not have to be repeated in 2011 and 2012.

Marketing Expense Budget

24

Pannasastra University of Cambodia

Year 1 Print Advertising Flyers Branding Online Advertising Website and Facebook Print Collateral Uniforms Customer Satisfaction Referral Marketing $6,000 $3,000 $2,500 $7,500 $11,60 0 $6,000 $1,400 $5,600 $1,250 ----------Total Sales and Marketing Expenses Percent of Sales $44,85 0 3.14% Year 2 $8,000 $4,000 $0 $9,000 $2,880 $4,000 $1,000 $1,500 $1,500 Year 3 $10,000 $5,000 $0 $11,000 $3,500 $6,000 $1,400 $2,000 $1,750

----------- ----------$31,88 0 1.79% $40,650 1.82%

5.5 Key Marketing Metrics Leads must be generated in great volume to yield sales as the school receives a high number of leads (including referrals, website inquiries, seminar attendees, and calls) which do not convert. The conversion rate is currently 20% but expected to rise to 25% over the next three years with the improvement in the school's reputation and Web resources. The average customer yields .15 transactions per month (1.8 per year), as a number of customers will take two classes in a year and some will take three. This is expected to rise in the coming years. The average $/customer is based on the weighted class enrollment average between the foreign language and ESL classes. Referrals are currently 20% of leads and this is expected to increase as a percentage of total leads over the next year and in the following two years. Referrals will include both customer referrals and professional referrals from businesses. PR mentions will increase as the company builds a reputation in Allendale and begins to send more press releases about its work. We expect to garner strong testimonials from 5% of customers. This rate isn't expected to increase, but the nature of the

25

Pannasastra University of Cambodia

testimonials will change as the school begins to seek video testimonials instead of written testimonials. Key Marketing Metrics

Year 2Year 3
$1,784,219 $2,230,273 RevenueYear 1 10,22711,252Leads$1,427,375 22.00%25.00%Leads Conv9,000

erted
0.20.25Avg. Transactions/Customer20.00% $780 $780 Avg. $/Customer0.15 3,5803,938Referrals$780 PR Mentions2,734 27 60 113141Testimonials 00Other90

75

5.6 Marketing Training Game Marketing training is an important component of the initial and continued training of every Allendale Language School teacher. Initial training occurs over a one month period (in December, May, and August, just prior to the beginning of each new class "season") and includes training in the Allendale Language School method and textbooks, as well as observation of current teachers in the classroom. Marketing training occurring during this time period includes 10 hours of sessions with the CEO, covering the following:

The customer guarantee Customer survey process Customer referral program Current advertising and promotional efforts The teacher's responsibility to market (business cards, attire, etc.) Company brand promise Website and Web resources

Ongoing training for teachers includes attendance of at least one prospect information seminar per year and one workshop per quarter lead by the CEO or a master teacher for his or her language. These workshops will review teaching techniques as well as spend at least half an hour reviewing the company's marketing activities, with a focus on new developments.

26

Pannasastra University of Cambodia

27

Pannasastra University of Cambodia

Sales Forecast Month1MonthM 3M 4M 5M 6M 7M 8M 9M 10M 11M 12Unit Sales Foreign Language Enrollments 200001001502005015025000100ESL Enrollments 10000507510025751250050Foreign Language Seminars Attendees 10050505010010050100100505050ESL Seminars Attendees 753838387575387575383838Total Unit Sales 47588882384004751634005508888238Unit Prices Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12Foreign Language Enrollments $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 ESL Enrollments $540.00 $540.00 $540.00 $540.00 $540.00 $540.00 $540.00 $540.00 $540.00 $540.00 $540.00 $540.00 Foreign Language Seminars Attendees $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 ESL Seminars Attendees $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 Sales Foreign Language Enrollments $180,000 $0 $0 $90,000 $135,000 $180,000 $45,000 $135,000 $225,000 $0 $0 $90,000 ESL Enrollments $54,000 $0 $0 $27,000 $40,500 $54,000 $13,500 $40,500 $67,500 $0 $0 $27,000 Foreign Language Seminars Attendees $2,000 $1,000 $1,000 $1,000 $2,000 $2,000 $1,000 $2,000 $2,000 $1,000 $1,000 $1,000 ESL Seminars Attendees $750 $375 $375 $375 $750 $750 $375 $750 $750 $375 $375 $375 Total Sales $236,750 $1,375 $1,375 $118,375 $178,250 $236,750 $59,875 $178,250 $295,250 $1,375 $1,375 $118,375 Direct Unit Costs Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12Foreign Language Enrollments10.00%$90.00 $90.00 $90.00 $90.00 $90.00 $90.00 $90.00 $90.00 $90.00 $90.00 $90.00 $90.00 ESL Enrollments15.00%$81.00 $81.00 $81.00 $81.00 $81.00 $81.00 $81.00 $81.00 $81.00 $81.00 $81.00 $81.00 Foreign Language Seminars Attendees50.00% $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 ESL Seminars Attendees75.00%$7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50 Direct Cost of Sales Foreign Language Enrollments $18,000 $0 $0 $9,000 $13,500 $18,000 $4,500 $13,500 $22,500 $0 $0 $9,000 ESL Enrollments $8,100 $0 $0 $4,050 $6,075 $8,100 $2,025 $6,075 $10,125 $0 $0 $4,050 Foreign Language Seminars Attendees $1,000 $500 $500 $500 $1,000 $1,000 $500 $1,000 $1,000 $500 $500 $500 ESL Seminars Attendees $563 $281 $281 $281 $563 $563 $281 $563 $563 $281 $281 $281 Subtotal Direct Cost of Sales $27,663 $781 $781 $13,831 $21,138 $27,663 $7,306 $21,138 $34,188 $781 $781 $13,831 Marketing Expense Budget Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12Print Advertising $0 $0 $0 $0 $2,000 $0 $0 $2,000 $0 $0 $0 $2,000 Flyers $0 $0 $0 $1,000 $0 $0 $0 $1,000 $0 $0 $0 $1,000 Branding $1,000 $1,000 $500 $0 $0 $0 $0 $0 $0 $0 $0 $0 Online Advertising $500 $500 $500 $500 $1,000 $500 $500 $1,000 $500 $500 $500 $1,000 Website and Facebook $50 $50 $50 $50 $10,000 $200 $200 $200 $200 $200 $200 $200 Print Collateral $0 $0 $500 $500 $5,000 $0 $0 $0 $0 $0 $0 $0 Uniforms $0 $0 $0 $0 $1,000 $0 $0 $200 $0 $0 $0 $200 Customer Satisfaction $0 $0 $0 $2,500 $2,500 $0 $100 $100 $100 $100 $100 $100 Referral Marketing $0 $0 $0 $0 $250 $500 $0 $0 $500 $0 $0 $0 Total Sales and Marketing Expenses $1,550 $1,550 $1,550 $4,550 $21,750 $1,200 $800 $4,500 $1,300 $800 $800 $4,500 Percent of Sales 0.65%112.73%112.73% 3.84%12.20%0.51%1.34%2.52%0.44%58.18%58.18%3.80%Key Marketing Metrics Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12Revenue $236,750 $1,375 $1,375 $118,375 $178,250 $236,750 $59,875 $178,250 $295,250 $1,375 $1,375 $118,375 Leads 3753755257507507507507507509751,1251,125Leads Converted 20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%Avg. Transactions/Customer 0.150.150.150.150.150.150.150.150.150.150.150.15Avg. $/Customer $780 $780 $780 $780 $780 $780 $780 $780 $780 $780 $780

28

Pannasastra University of Cambodia

$780 Referrals 7575105150225225225263263341394394PR Mentions 111122233344Testimonials 445888888101111Other 000000000000Gap Dashboard M 1M 2M 3M 4M 5M 6M 7M 8M 9M 10M 11M 12Personal CEO Speaking Engagements 000001001001CEO language learning conferences 000010001100CEO hours on marketing 505050505040303030303030Business Total revenue $236,750 $1,375 $1,375 $118,375 $178,250 $236,750 $59,875 $178,250 $295,250 $1,375 $1,375 $118,375 Class Enrollments 300001502253007522537500150Lead Conversion Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%20.00%Tactical Customer Testimonials 000000000000PR Mentions 111122233344New Full-Time Staff 445888888101111Strategic Customer Satisfaction Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%98.00%Dropout Rate 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%2.00%Capital Raised $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

29