Pursuing An Online MBA Program Over An On-Site Program

Pursuing an Online MBA Program over an On-Site Program

0.1 Company Overview

Liberty University, the world's largest Christian university, is one of the leading academic institutions recognized for its valuable education. Centrally located in the state of Virginia, the quiet and serene surrounding makes it a suitable environment for learning. The university's main objective is to afford quality, relevant and affordable education with the vision of producing world class graduates who can perform in all the economics fronts of the world. To accomplish this, it offers a broad range of undergraduate and graduate programs to students to access from all over the world. Liberty is staffed with well-trained and highly skilled faculty. The university has an equipped library, laboratories and student centers halls; in addition the institution sits on an enormous land of more than 4000 acres. Moreover, it provides students with exposure to the practical working environment in the course of internship. Liberty is constantly introducing new concepts to its academic program to tap into the increasing needs of students in the world, for instance the introduction of online programs that will offer accepted degrees at affordable rates.

0.2 Executive Summary

This marketing plan is designed to implement the introduction of Liberty's University new concept of pursuing an online MBA program. The impeccable marketing strategies and valued education makes Liberty University one of the leading academic institutions in the world. The target market is America, Europe and Africa.

With the implementation of this plan, the university seeks to introduce the above amongst the competition from other leading universities offering the same degree. Several strategies have been designated to be used to remain or rise above the competition. It will also utilize several marketing strategies such as promotion and advertisement to attain the desired results. Also, a detailed marketing budget is attached and it will be used as the guideline to the financial aspect of the plan. Stages and defensive strategies to be used in the implementation of the program are also highlighted (Roberts, 2005).

1.0 Description of Target Market

First and foremost, the new online program would target people from all aspects of life who are eager to earn a MBA degree. This segment of people may consist of the working class members of the society, such as bankers and retail associates, who may not have the flexibility in time to attend classes due to the nature and times of their work.

Secondly, the hopes to attract recently recruited firm executives who may desire to increase their knowledge to assist their companies function and compete effectively. Financial analysis, management, and counseling and leadership skills are areas of knowledge which are considered to be important aspects to obtain. Another target would be the business employees that desire to perfect their abilities through the enhancement of learning new and innovative advertisement and promotion skills. Also, those individuals globally that desire and are able to pursue a MBA but cannot meet the high-priced costs of living in USA, the travel expenses and those who cannot meet the minimum VISA requirements.

Lastly, it would also target government officials or military members whom either work in the financial departments, who are in management or preparing to transition to the business or marketing sector (Armstrong & Kotler, 2006).

2.0 Description of Competitors

Liberty University is competing with other American and European universities that are currently offering the same programs. Although Liberty was the pioneer of offering this type of program, many other universities followers exist that have risen due to the advancement of technology. Main competitors are Harvard, University of Massachusetts, Oxford, Cambridge and the University of Mongolia; which has posed a great threat to the University of Mongolia since most of its students comes from Africa.

The competition setting in the market is stiff. The online programs market has been on the increase quickly in the last ten years. Even though the enrollment in online programs has elevated and still on the rise, the level of competition remains stiff with the existence of many institutions coming into play with subsidized costs. Some universities are offering subsidized education to segments of the society such as women, people with disability, active duty military and their spouses, veterans, or former students of the university to attract them to the university's graduate programs.

3.0 Description of Service (P)

The online MBA program is the main product that is being offered by the university. This is a program that evolved through onsite studies. The students interact with the lecturers via online, the lecturers post notes through the use of the internet to guide the students in gaining knowledge and understanding of the subject matter. Exams are conducted through timed sessions within the student's course and the earned grade is readily available to view. Students who go through the process successfully are awarded degrees (Young, 1995).

4.0 Marketing Budget

The marketing budget analysis and the forecast for the business for the next five years are predicted below.

4.1 Break-even Analysis

Fixed cost = $1,500,000

Variable unit cost = $0.54

Expected unit sales = 6.7 million units

Unit price = $1.0

Total variable cost (Expected unit sales * variable unit cost) = $3,641,500

Total cost (Fixed cost + Total Variable Cost) = $5,141,500

Total revenue (Expected unit sales * unit price) = $6,700,000 million

Profit (Total revenue - Total cost) = $1,558,500

4.2 Start-up Costs

Start-up costs in United States Dollars (USD)

Operating Capital 200000

Purchases 1500000

Salaries 2130000

Rent 600000

Fuel 130000

Water 20000

License 20000

Office Expenses 30000

Advertisement 20000