Rowen Bedeau Managing Marketing Assignment-A

Rowen Bedeau-Student Id (2096042) IATR Henley Management College-Managing Marketing Correctional Education Programme-CEP

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Managing Marketing In the

The CORRECTIONAL EDUCATION PROGRAMME DEPARTMENT

TRINIDAD AND TOBAGO PRISON SERVICE WORD COUNT: 5946

(EXCLUDING APPENDICES)


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Table of Contents A. Executive Summary...……………………………………………………………………....3B. The Assignment…………………………………………………………….………………4

B.1. Structure of the assignment……………………………………………………………4B.2. Learning Objectives for the assignment……………………………………………….4B.3. Assignment research methodology…………………………………………………….4

Part 1- Where We Are1.1Introduction …………………………………………………………………………..…...6 1.1.1. Brief outline of CEP…………………………………………………...………........…6 1.1.2. The Organisation……………………………………………………………..……..…9 1.1.3. VMOST Analysis………………………………………………..…………….……....9 1.1.4. CEP’s Core Values………………………………………………………..………..….9 1.1.5. Conclusion………………………………………………………………..……………9 1.2 Marketing Audit………..……………………………….………..…………………….…9 1.2.1 The Business Environment……………………………………………………………..9 1.2.2 Macro Environmental Scan……………………………………………………………10 1.2.3 Micro Environmental Scan…………………………………………………………….11 1.2.4 Market size……………………………………………………………..…………...…14 1.2.5 Customer Analysis…………………………….…………………………………...….14 1.2.6 Segmentation………………………………….………………………………….……16 1.2.7 Competitor Analysis…………………………………………………………….……..16 1.2.8 Company Analysis……………………………………………………………….…….17 1.2.9 Collaborator Analysis……………………………………………………………..……18 1.2.10 CEP Internal Audit…………………………..……………………………………....…18 1.2.11 Marketing System Audit……………………………………………………………….22 1.2.12 Conclusion SWOT Analysis……………………………………………………….…..23

Part 2- Where We Want To Be2.1 Marketing Assumptions, Risk and Forecast………………………..…………………...25 2.1.1 CEP’s Marketing Objectives………………………………………..…………………25 2.1.2 Segmentation, targeting and positioning……………………………………………….27 2.1.3 Positioning statement…………………………………………………………………..29 2.1.4 Internal marketing initiatives………………………………………..…………………29 2.1.5 Competitive role in the marketing place……………………………………………….29 2.1.6 Marketing mix strategies………………………………………………………………30 2.1.7 Beyond the marketing mix……………………………………….……………………31

Part 3- How Do We Get There3.1 Promotional Campaign.......................................................................................................34 3.1.1 Communications Objectives………………………………………………………..…34 3.1.2 Budgeting and Justification for Implementation……………………….……………...35 3.1.3 Implementation…………………………………………………….…………………..36 3.1.4 Monitoring, Control and Evaluations…………………………………………….……38 3.1.5 Contingency Plan………………………………………………………………………39 3.1.6 Conclusion…………………………………………………………………………..…39 Bibliography…………………………………………………………………………………...40


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A. Executive Summary This assignment in managing marketing will set up a marketing plan for the Correctional

Education Programme (CEP) of the Trinidad and Tobago Prison Service, a division of the

Ministry of National Security. This will be initiated through a situational analysis that

describes the present state and by defining the future marketing strategy, focusing on

relevant segments and a proper marketing mix for them. Finally the future strategy will

be transformed into a tactical marketing programme.

Part one (1) reviews the business strategy context with specific emphasis on the

organisation’s role, structure, vision, mission, objectives and core values. It also

examines the internal and external environment in which operates within with a view on

developing a SWOT on its findings.

Part two (2) examines the assumptions, risk, objectives and strategies to be considered in

the development of the marketing plan.

Part three (3) identifies the marketing programme required to market ’s products and

services together with a contingency plan which will be applied in the event that the

desired objectives are not realized through the implementation of the ’s chosen initiatives.


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B. The Assignment

Select one of your organisation’s product, services or a business unit then, with reference

to the Managing Marketing study materials and associated readings, present your

recommendations for an integrated marketing plan for the future development of your

chosen product or service.

B.1 Structure of the assignment

Figure 1: Assignment Structure

B.2 Learning Objectives for the Assignment

At the conclusion of this assignment report, one will be able to recognize the need to

analyze markets and to articulate the strategic direction of their organization to seek an

advantage. Though the organization under review is a not for profit (nfp), it does pose

some challenges in equating it to the corporate ones. It will bring a better appreciation for

the identification of customer needs through the application of segmentation, targeting

and positioning for organization similar to these.

B.3 Research Methodology

In developing CEP’s integrated marketing plan a survey questionnaire was used to solicit

customer information and formal interviews were conducted with the staff (civilian

volunteer, contract, inmate and officer).


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PART 1: WHERE WE ARE NOW


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1.1 Introduction to CEP

1.1.1. Brief outline of CEP A Cabinet appointed Task Force was set up in 2000 and proposed that the Prison Service

of Trinidad and Tobago should commit itself to the effective rehabilitation and

reintegration services. It was suggested that in order to so they must adopt a Reintegrative

Penal Policy, utilizing a shared responsibility model of rehabilitation. These approaches

features a correctional intervention process that ensures that inmates (customers) are

methodically assessed in relation to their needs, personality, competences and risks, and

assigned to habilitative activities in a planned and coherent manner. This intervention

strategy maps out a direction for the Trinidad and Tobago Prison Service development

and transformation.

1.1.2. The Organisation With regards to marketing, the core business of CEP is the core business of the Prison

Service. It is the central coordinating body with the responsibility of marketing all plans,

incentives and schemes with respect to corrective programmes.

The organization consists of 26 employees (see organisational structure, figure 12 page

31) superintendents of each Prison are excluded in the staffing but included within the

organisational structure. CEP operates within a framework of both internal (I) and

external stakeholders (E) (see figure 2).

Programmes offered to the (customers) are designed to change the philosophy of the

Prison from one of retributive to restorative holding on strongly to the newly formed

core values (see core values on page 9). In that context the department has analysed the

need for change and has broken the programme offerings into five distinct categories,

which are the tactical arms of CEP’s VMOST.


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Table 1: CEP’s VMOST

Vision CEP will be regarded as a model of outstanding Correctional Administration and as the best value provider of efficient and humane correctional services and programmes in the Caribbean.

Mission To function within the Judicial System, communicating effectively and accurately

in assisting in the dispensation of justice. To promote the rehabilitation of

probationers, offenders, victims and dysfunctional families through education,

research and advocacy. To plan and implement projects and programmes which

would prevent or at least to minimize those at risk of re-offending.

Objectives � Increase the provision of accreditation treatment and training

programmes by 50% by 2008

� Increase constructive regimes by 25%

� Reduce re-offending

Strategies Provide opportunities and constructive regimes, which addresses offending

behaviour in and out of prison, the creation of citizens that can contribute to the

holistic development of the nation

Tactics The tactics employed are carried out using the five (5) departments.

Culture- A structured syllabus of activities was developed so as to encourage participation and from both unique populations of the Prisons; the participants and the non-participants.

Education- The tactics employed here is clearly outlined in the business model. Each programme is geared towards quality delivery, customer satisfaction, and equal opportunity.

Life-skills: - In keeping with the department’s mission statement, the focus of this unit is on the holistic development of the customer and they are basically two (2) areas, society life-skills and work community life-skills.

Religion: - This aspect of the programmes ensures the spiritual approach is included and helps to maintain control and foster a spirit of integrity. The availability of all denominations possible is crucial in maintaining the objectives of its vision. Sports: - Programmes offered here are geared towards fostering teamwork and tolerance.


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Figure 2: Stakeholder Map of CEP

Business Model of CEP: The business model of CEP is based on a SIPOC diagram.

Figure 3: Business of CEP Supplier Input Processes Output

Customers

All Stakeholders

Request for quality programmes

Quality programmes

Receipt of programmes


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1.1.3. VMOST Analysis Since the incorporation of CEP in August 4, 2000, the department has created its own

VMOST end ensuring alignment to the Prison Services’ VMOST and the parent ministry,

the Ministry of National Security. The objectives are SMART1 because it deals with the

specific nature of the customer, measurable because progress can be monitored. It is

agreeable because of the mission and its sync with that of the parent ministry. It is

relevant because it deals with the specific nature of the customer one of the key

stakeholders. Time-bound due to the fact that the customers are incarcerated for a specific

period. The VMOST structure for the Correctional Education Programme Department is

in alignment with the VMOST of the Trinidad and Tobago Prison Service and further the

parent ministry, the Ministry of National Security2.

1.1.4. CEP’s Core Values Based on the VMOST analysis CEP has developed its core values with a strong customer

focus in mind. The core values are the acronym HEIGHTS.

H Humanity; E Equality; I Integrity; G Gusto; H Humanity;

T Tolerance; S Hospitality 1.1.5. Conclusion In order to achieve these objectives as stated above it is obvious that a marketing

approach must be taken. No longer can the Prison Service coerce its customers into

structured/unstructured programmes. The customers are evolving and with the strong

awareness of their external environment and its ongoing dynamism. They are now

demanding quality delivery for their time incarcerated, they must be convinced.

1.2 Marketing Audit

1.2.1 The Business Environment Through an analysis of the external frameworks (macro environment forces) and

microenvironment factors in which CEP operates in, it is possible to assess the future

1 SMART- Specific, Measurable, Achievable, Relevant, and Time-Bound 2

Mission of the Ministry of National Security is “To create an environment which ensures public safety and security through the

maintenance of law and order and the commitment of all available resources to the protection of life and property?


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marketing opportunities in order to enhance revenues (customer enrollment into

programmes), and also to assess threats that may be a hindrance for the successful roll out

of new marketing activities. 1.2.2 Macro Environmental Scan A PESTL analysis indicates the macroeconomic factors of importance to CEP. The key

drivers of change identified in the PESTLE analysis outlined in red in the table below.

Table 2: PESTL Analysis of CEP external environment

Influ

ence

ondi

visio

n

Impa

cton

Dep

artm

ent

Scor

eA

*B

Driver of Change A B A*B

Opportunity Threat

P- The Government’s drive for achieving Vision 2020.

10 10 100 CEP can develop strategic plans with relevant KPIs

Competitors can do the same

P- The upcoming general elections 4 7 28

If ruling part wins, initiatives continue

New government focus on anti-crime can stymie progress

E- Higher demand for productivity 6 9 54

Good marketing incentive for job placement

Frustrations can develop if customers cannot get enrolled

E-Low unemployment level of 5.46% 4 8 32

Numerous opportunities for sustainable employment

No threat

S-Government’s commitment to providing a safer society

9 9 81 Focus on restorative programme can attract support

No threat

S-Government granting of free tertiary education 5 8 40

To increase accreditation, a marketing incentive.

More of the citizenry becomes eligible competition for space increases.

T- Advancement in broadband and its ease of availability

3 5 15 Online distance education can be provided

No threat

L- The UN standard minimum rules of the treatment of inmates 7 9 63

CEP can establish itself as market leader due to provision of programmes and its availability

Any untowards incidents can damage reputation.

L- The establishment of a parole board 9 10 90

Marketing of programmes will have a greater benefit

Improper monitoring and evaluation for determination


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Political: The Government’s drive for achieving Vision 2020- This driver is a unique one as it

allows the department to restructure, monitor and evaluate its strategic plans with the

emphasis on change.

Legal: The Establishment of a Parole Board- This driver is a unique one as it conforms to

international standards; it presents a lot of opportunities for the department, the Prison

service and the government and the reputation of the country. A parole system would

mean that the institution’s population could be reduced; the effectiveness of the life-skills

section can become fully functional as parolees are sanctioned. The threat is minimal and

could only occur if monitoring systems fail. It can also be used as a marketing strategy as

the customers can be rewarded for enrollment and successful completion of programmes. 1.2.3 Micro Environmental Scan After the formation of the task force report, CEP was formed and it became the absolute

market leader of the facilitation of rehabilitative programmes. As the market leader, the

organisation is changing the focus from a department just dealing with simple non

accredited, unstandardized programmes to an industry dealing with accredited, structured

programmes with a strategic vision as mentioned in the VMOST.

The micro-environment is used to describe the factors in the external environment

influencing competition in the industry and the more narrow issues to be aware of in

daily operations addressing opportunities and threats. Where changes or fluctuations in

the PESTL-environment may have a direct impact on the entire industry, the factors in

the micro-environment must be monitored as they may have an instant impact on our

daily business environment. The perspective of CEP is mainly a customers` perspective

where one of the main ideas in the department’s concept is to manage as many of the

customers` peripheral duties (work) as possible so they can concentrate on their core

activity (meaningful participation in programmes).The target market of the department is

the non-participant of programmes.


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Determining the threats

Porter’s 5-forces is used to determine whether there are immediate or future threats to

consider in relation to the future marketing strategy.

Bargaining Power of Supplier – Here the power is high, suppliers of raw material is

short listed to three (3) with little price variation, to counteract that some items (e.g.

consumables) can be sourced from the general stores of the Prison. Government funding

is not always on time and so the supplier raises their cost price in an attempt to recover

expenditure; in severe cases supply is withheld until some form of contractual

arrangements can be made to guarantee payment.

There is another case where the supplier a Non-Governmental Organisation (NGO) is

also a stakeholder; there is now a shift with them now having high interest high power.

These agencies also compete for funding allocated in the transformational vote for

provision of services.

Bargaining power of customer- Here the power is low, the department is a government

agency and equating it to a cash business is a bit tough. The main customer here is the

inmate, in a stakeholder analysis he has a high interest and little power. CEP is a provider

of specialized services tailored to the needs of the targeted customer, there is really little

or no bargaining here.

Competitive Rivalry- Here the threat is high because of the nature of the business CEP

provides. There are a lot of external agencies that do the same business. As stated before

NGO’s are now competing for allocated funding in the transformation vote, using their

bargaining powers as suppliers they build a case showing mutually assured benefits.

Threat of substitutes- High threat level. The Non Governmental Organisations, other

providers of similar services is direct threats. In two of the tactical areas; education and

life-skills, the presence of Faith Based Organisations (FBO’s) poses some concerns. They

put up good cases to the Ministry of National Security on how they can provide similar

services at little or no cost. The problem with that type of arrangement is that, they are


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not accredited and follow no regulatory authority for provision of such, quality is

sufficed. The VMOST is scarified in order to cut on cost.

Threat of New Entrants- Very low-level threat. The Prison has a distinct advantage and

that is security. It is costly in terms of manpower resources to send inmates for services

provided by another entry.

Life Cycle Analysis of CEP

Programmes offered by CEP to its customers are products. To consider what stage the

department has reached in terms of its lifecycle analysis, one has to equate products

offered to those on the external markets. Benchmarking and quality control are tools that

can be considered in assessing its stage. In terms of accreditation of programmes, all

programmes are in their growth stage because of programmatic accreditation. CEP as an

institution is in its growth stage according to the indicators of institutional accreditation.

Figure 4: Life Cycle Analysis of Programmes in CEP

The characteristics regarding the growth stage is the number of customers (inmates)

trying the product offerings and the entry of competitors trying to fight for a share of the

growing undifferentiated market. CEP encounters a fast growing competition from


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especially NGOs, where some Unique Selling Propositions are similar to those offered by

other accredited institutions to mention a few.

1.2.4 Market size The present market consists of one thousand six hundred and seventy-seven (1677)

inmates that make up the non-participatory group. The current enrollment in programmes

on all stations is seven hundred and seventy-five (775). The market size was further

analysed using the following

• Overall market share- CEP enjoys the facts that there are no direct external pull

factors that will take customers outside the prison’s compounds.

• Segment share that in the specific, targeted segment-The non-participatory targeted

customers makes up a 68% of the prison’s convicted population.

• Relative share -in relation to the market leaders- There are no market leaders in this

industry.

Market share analysis

CEP Sales may still be increasing as shown in figure 6 in an expanding market, while

share is actually decreasing due to competition from the two main competitor groups

(NGOs and FBOs). Where such market share is tracked, there may be a number of

aspects which will be followed:

• Overall market share CEP has a market share of 2452 customers and the endless

possibilities of programme combinations offered.

• Segment share - that is the specific targeted segment which is the non-participants

of programmes which represents a total of 1677 targeted customers.

• Relative share in relation to the market leaders, CEP enjoys the current position as

market leader.

1.2.5 Customer Analysis CEP uses Customer analysis to develop a scheme for market segmentation, breaking

down the market into various constituent groups of customers, which are called customer

segments or market segments. CEP management work to develop detailed profiles of


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each segment, focusing on any number of variables that may differ among the segments:

demographic, psychographic, geographic, behavioral, needs-benefit, and other factors

may all be examined. They attempt to track these segments' perceptions of the various

products in the market using tools such as perceptual mapping. The introduction of an

Inmate Information System (IIS) was developed by the CEP department which is a

comprehensive database that tracks from inmate interest to enrollment in programmes.

Table 3: Customer Analysis

Who are the customers? Participants of the rehabilitative programmes

What are their key characteristics? They are all inmates who are convicted

What differentiates them from other

members of the population?

They are convicted and committed others are

committed and not convicted.

What are their needs and wants? Rehabilitative programmes that can enable

them some decent sustainable living after

incarceration.

What do they expect the `product' to do? They expect to be certified. Earn life time

value.

What are their special requirements and

perceptions?

Response from the members of the citizenry of

Trinidad and Tobago will be more acceptable.

What do they think of the organization

and its products or services?

They dislike the organisation but like the

product offerings.

What are their attitudes? One of caution.

What are their buying intentions? To enroll in as much programmes possible.

Customer Loyalty

An analysis of customer loyalty was done using the Customer Loyalty matrix below

(figure 5) to determine loyalty. Enhancing loyalty in target customers can lead to

sustainable and profitable sales growth.


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Figure 5: Customer Loyalty Matrix H

igh

Mercenary

o Customers enrolled in religious programmes held by FBOs. They switch from programme to programme.

Loyal/Apostle

o Customers that have acquired certification through examinations. They normally advocate on behalf of the programmes for CEP.

Satis

fact

ion

Low

Defector/Terrorist

o First-timers, those with behavioural problems. They are usually enrolled in Life-Skills programmes.

Hostage

o Those with behavioural problems, hold authorities to ransom because of rules and regulations. They are normally those serving a life-time sentence.

Low High

Loyalty Source: Adapted from Jones and Sasser (1995)

1.2.6 Segmentation Analyzing customer intelligence, using a combination of secondary and primary research,

from CEP’s database and conducted surveys, revealed that 93% of customers are male,

unskilled and literate.

1.2.7 Competitor Analysis Competitor analysis is done by CEP marketing department that builds detailed profiles of

each competitor in the market, focusing especially on their relative competitive strengths

and weaknesses using a SWOT analysis. There are two distinct groups of competitors for

CEP. Table 4 below shows how the competitors are analysed.

Table 4: CEP’s Competitor Analysis

Competitors Areas of Analysis Faith Based Organisation

(FBO)

Non-Governmental Organizations

(NGO)

Cost Structure The economic cost (opportunity cost) here is high. Variable cost are low due to nature of the firm, funding is a subsidee.

The economic cost (opportunity cost) here is high. Variable cost are low due to nature of the firm, funding is a subsidee.

Sources of Profit Donations from the private Donations from the private


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Competitors Areas of Analysis Faith Based Organisation

(FBO)

Non-Governmental Organizations

(NGO)

sector here is high, well over

TT$3.5, 000,000.00 per annum.

sector here is high, well over

TT$ 7,000,000.00 per annum.

Resources and

Competencies

These organisations possess

personnel that are willing but not

that much competent to deliver.

More qualified and competent

personnel than the FBOs

Positioning The organisation can make

themselves specialized by

becoming small and flexible.

Operating on low cost low

quality. Unique benefits for

after-care services. Appeal to

emotional side of customers

The organisation can make

themselves specialized by

becoming small and flexible.

Operating on low cost,

medium quality. Unique

benefits for after-care

services. Appeal to emotional

side of customers.

Product

Differentiation

Tend to follow niche marketing Tend to follow niche

marketing

Degree of Vertical

Integration

No degree of vertical integration. Ability to vertically integrate

by networking.

Historical response to historical development

Acceptance to change Understands change but slow to accept.

1.2.8 Company Analysis CEP marketers focus on understanding the company's cost structure and cost position

relative to competitors (see table 4), as well as working to identify their core

competencies and other competitively distinct department resources. The company may

also conduct periodic brand audits to assess the strength of its brands and sources of

brand equity.


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1.2.9 CEP’s Collaborators Analysis

CEP collaborators are also profiled, which include various suppliers, distributors and

other channel partners, joint venture partners, and others. An analysis of complementary

products may also be performed if such products exist.

Table 5: Analysis of CEP’s collaborators

Collaboration Collaborators Contributions Suppliers Internal- Prison Service (officers)

operational shifts. Book suppliers, office suppliers NGO’s and FBO’s

Management

Consumables Consumables

Distributors Volunteer group, Inmates, peer counselling, officers.

Tutoring rehabilitative programmes.

Joint Venture Ministry of Education, Ministry of Science, Technology and Tertiary Education Ministry of National Security.

Accredited programmes, Accreditation standards. Audits

1.2.10 CEP Internal Audit Analyzing CEP’s using applicable sections of Foreman et al, 2000; Internal Marketing

Audit checklist reveals the following:

a) Innovation

b) Strategy

c) People and Relationships

d) Performance

e) Execution

f) Portfolio Analysis

• Innovation

o Management is highly responsive to customers’ suggestions for improvement,

especially in customer grievances.

o Surveys are now continuously being conducted to align the department to the

needs and expectations of customers.


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• Strategy Audit

o CEP’s main strategy at present, aims to direct the organisation away from that of

mismanaged programmes without the presence of accreditation and monitoring

and evaluation.

• People and Relationships

o Efficient and committed staff, operational and administrative staff

o Harmonious working environment. Tense at times

o Shared values: honesty, customer minded, respectful.

o Functional, flexibility amongst staff.

o Formal and informal communication via one on one meeting, internal memos,

performance evaluations, resolution of customer queries/complaints.

• Performance

The most important elements of marketing performance, which CEP normally

tracks, are: Sales analysis: CEP being non-profit organisation sales results are calculated

by the number of customers enrolled in programmes. Figures 6,7 and 8 shows customer

programme enrollment for the period 2000-2006, customer participation in programmes

for the year 2006 and customer enrollment per station for year 2006, respectively.

Programme Enrollment

167 267 315 395 499625

775

0

200

400

600

800

1000

YearProgramme Enrollment 167 267 315 395 499 625 775

2000 2001 2002 2003 2004 2005 2006


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Programme Participation

Participants, 775, 32%

Non-Participants, 1677, 68%

Customer Enrollmentfor 2006

POSP, 24, 3%YTC, 80, 10%

MSP, 415, 54%

WP, 50, 6%

TP, 15, 2% CCP, 97, 13%

GGP, 94, 12%

o Execution

The analysis of the present marketing mix is defined in the table 6 below.

Table 6: Present Marketing Mix

# Marketing

Mix

Participants Non-Participants

1 Product Unstructured curriculum, few

programmatic accreditations.

no product

2 Price No emphasis on cost per

customer, alignment to assessment

No emphasis


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# Marketing

Mix


results not adhered to

3 Place Programmes offered in the same

location

Few programmes offered at place

of habitation (yards and blocks).

No emphasis on monitoring.

4 Promotion Word of mouth and coercion by

staff.

Word of mouth

5 Process See business model, figure 3. none

6 People CEP has an adhoc method of

recruiting staff. Big emphasis on

training and development.

Inmate staff is used as peer tutors.

7 Physical

Evidence

Reports from the media houses,

testimonies from customers. No

internal reporting available.

Enrolment and programme

participation.

Portfolio Analysis

The product portfolio analysis below was used to examine the relative competitiveness of

CEP’s programme offerings. This analysis indicates that a number of technical vocational

programmes are positioned within the “Stars” quadrant. This shows that these products,

data has shown these products are like Fads, however the objective of CEP is not to just

provide this type of skill training but empowering the customer and giving them the

ability to survive without becoming recidivist.

The product/service within the “Question Mark’ quadrant indicates that the strategy has

to be changed and a new focus be taken up. The ‘Cash cows’ remains the main core of

programme offerings and programme enrolment.


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Figure 9 - Boston box adapted to CEP

1.2.11 Marketing Systems Audit Table 6: Marketing Systems Audit

Marketing Systems Audit Response

Marketing information systems

Is the marketing intelligence system producing accurate, sufficient and timely information about marketplace developments with respect to customers, prospects, distributors, competitors, suppliers and various publics?

No

Are departmental decision makers asking for enough marketing research, and are they using the results?

No

Is CEP employing the best methods for market measurement and sales forecasting?

No

Marketing planning systems Is the marketing planning system well conceived and effectively used? No Do marketers have decision support systems available? No Does the planning system result in acceptable sales targets and quotas? Yes

S ta rs

R e la tiv e M a rk e t S h a re

Mar

ketG

row

thR

ate

Cas

hU

sage

C a s h G e n e ra t io n

H ig h L o w

Low

Hig

h

D o g s

N a tio n a l E x a m in a t io n C o u n c il-L e v e l 1 T e c h n ic a l/V o c a t io n a l P ro g ra m m e s

M in is try o f S c ie n c e a n d T e c h n o lo g y a n d T e r t ia ry E d c a t io n - T e c h n ic a l V o c a t io n a l

P ro g ra m m e

In fo rm a t io n T e c h n o lo g y (M ic ro so f t O f f ic e U se r S p e c ia l is t L e v e l 1 )

B ib le p ro g ra m m e s

A d v a n c e d L e v e l P ro g ra m m e s

H o b b y C la sse s

D ru g R e h a b il i ta t io n P ro g ra m m e s

P r im a ry S c h o o l L e a v in g E x a m in a t io n

A rt C la sse s

C a r ib b e a n E x a m in a t io n C o u n c il

C a s h C o w s

Q u e s tio n M a rk s ?


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Marketing Systems Audit Response

Marketing control systems Are control procedures adequate to ensure that the annual plan objectives are being achieved?

Yes

Does management periodically analyse the profitability of products, markets, territories and channels of distribution?

No

Are marketing costs and productivity periodically examined? No New product development systems Is the company well organised to gather, generate and screen new product ideas?

Yes

Does CEP do adequate concept research and business analysis before investing in new ideas?

No

Does the CEP carry out adequate product and market testing before launching new products?

Yes

1.2.12 Conclusion The conclusion of the marketing audits which is comprised of both an external and

internal market audits is summarized in the SWOT matrix in figure 10 below.

Figure 10: SWOT Analysis

Strengths Weakness Alignment of CEP VMOST with the VMOST of the Prison service

Physical evidence is not communicated effectively to stakeholders to accentuate influence.

Upgradeable Inmate information system Committed officer staff not established Emphasis on training Access to two sources of funding Entire market within confines of prison Effective scheduling to maximize contact hours and optimize limited carrying capacity

Opportunities Threat To offer same package to the public Presence of NGO’s and FBO’s replicating

system (market followers). Effective marketing can gain sway the public’s perception of the prison

Dependence on inmate tutoring, services can be withheld at anytime. Customers categorized as mercenary have access to media’s appetite


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PART 2: WHERE WE WANT TO BE


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2.1 Marketing Assumptions, Risk and Forecast Even if it does not seem to be a significant threat right now, one of the assumptions in the

following sections will be that there can be a change in the political directorate due to the

upcoming general elections. This assumption is made to plan for a “worst” case scenario

in the future and to evaluate what marketing initiatives can do to help prevent this.

The objectives and strategies to be presented are underpinned by the following

assumptions in Table 7:

Table 7: Marketing Assumption, Risk and Forecast

Marketing Assumptions Risk Forecast The Government’s drive for achieving

Vision 2020 will continue

Low To date the government has pursued

rigorously Vision 2020 and there are

no reasons to suggest that this will change

in the near future.

Change in Political directorate High To appease the public there may be a

reversal from re-integrative to

rehabilitative

Low unemployment level of 5.46% Low Good economic stability provides good

turnover for CEP customers.

The establishment of a parole board High This may not be well received by the

public, success depends on the marketing

strategy to the external stakeholders

Government granting of free tertiary

education

medium This can change dependant upon

economic situation.

2.1.1 CEP’s Marketing Objectives As assessed in the marketing audit, the strategy of differentiating the programme

products in CEP will enable increased sales, and ease competition from low cost

providers offering an undifferentiated product range. It is therefore assumed, that by

differentiating the programme package products to a more exclusive level and a more

narrow focus on marketing towards the high yield segments, it will be possible to

increase both turnover and revenues within the existing infrastructural capacity.


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The marketing objectives are listed below

1) Improve customer relationship management – increasing the satisfaction and

customer loyalty by December 2007.

2) To retain and increase the participant group up to 50% by September 2007.

3) To provide excellent service, second to none, all the time and every time.

Strategy to be adopted

Regarding the undifferentiated stage of the entire product portfolio in the prisons and the

objectives, the strategy will have to go from the existing standard product to a more

exclusive product portfolio regarding both content and image, as described in Mathur’s

merchandise matrix (figure 11).

Figure 11: Mathur’s Merchandising Matrix

The objective of moving from a standard undifferentiated product to a differentiated

product portfolio is the advantage of being able to charge a premium price (customer

enrollment); the exclusive product distinguishes itself from competitors’ products both

regarding content and image. This strategy is viable especially due to the limited

infrastructure and carrying capacity of CEP. CEP shall attempt a strategy of product

leadership in the examinable programme areas and seek adequate level of operational

excellence in services and customer intimacy for other programme areas.


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2.1.2 Segmentation, targeting and positioning Segmentation According to Jobber 2000 and Kotler 2003 ‘A market segment consists of group of

customers who share a similar set of wants.’ CEP has gone has analysed their customers

based on the information queried from the database and formal interviews. The data here

in the table below was not restricted to the present/current circumstances of the customers

but an overall (life outside the prison) data was collected. Reasons for adopting that

approach was in keeping with the new strategy, which is preparing them for the outside

world and sticking to its positioning statement.

This segmentation process generally showed that prospective customers were focused on

attaining certification with the aim of gaining sustainable employment. Employment

which would afford them a better way of life. The segmentation process also indicated

that all of the segments were within the high crime areas of Trinidad. Table 8 shows the

bases of segmentation for CEP customers.

.Table 8: STP Matrix

Base Variable Description Justification

Geographic Region East-West and South Trinidad

it is assumed that most customers reside in these regions

size City areas Town areas, drug use.

Density urban, suburban Population must be large enough market to be sustainable

Demographic Age 14 - 55 years assumed typical age range for customers

Sex males and females Both sexes, however more male involvement

Family lifecycle

single or young married

92% unmarried parents and are dependants themselves.

Occupation

Labourers, unskilled, functionally illiterate

Mostly school drop outs, victims of dysfunctional homes.


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Base Variable Description Justification

Psychographic Lifestyle Inactive, outdoor, unhealthy

They typically have an outdoor active lifestyle one that supports drug use.

Behavioural Purchase occasion

Not to interested in programmes Have no genuine interest

Benefits sought

Placement in other less stressed sections, qualifications.

Both functionally illiterate and unskilled want a quality product that satisfies their needs

User status/rate

Participants and non-participants

focus on both participants and non-participants

Loyalty status

loyal, brand conscious

Customers who benefited before are usually brand loyal and would not need to be persuaded to adopt new product.

Attitude enthusiastic, positive and indifferent

Participants-good attitude toward product and brand required for adoption. Non-participants people could be persuaded.

Targeting The segments identified were further assessed to validate their attractiveness to CEP

potential customers. The findings showed that all the segments are accessible,

identifiable, profitable, actionable and effective to CEP present resources in terms of

facilitators and infrastructure that supports the inadequate carrying capacity. As a

consequence the targeted approach that CEP will utilise is one of differentiated

marketing, making the product more exclusive and enhancing the benefits.

Positioning According to Ries and Trout (1993) “Positioning is not what you do to the product,

Positioning is what you do to the mind of the prospect”.

Programmes offered at CEP are no different from programmes offered on the outside

especially in the area of structure. However what CEP does differently is to apply the

restorative approach that will enable their customers on release to be productive citizens


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that will contribute to the continuous development of Trinidad and Tobago (see

marketing objectives) 2.1.3 Positioning statement In order to attract the target market identified, CEP’s brand positioning statement will be

as follows:

“To those waiting to make the next best step to attain a better way of life our

accredited programmes offered at CEP will do just that for you”

CEP highly trained staff is committed to your transformation by employing the best

techniques, whilst fostering an environment of integrity and equality.

2.1.4 Internal marketing initiatives A policy decision by senior management to adopt a full customer relationship focused

approach in anticipating and meeting customer needs is recommended. Staff (officer,

volunteer, contract and inmate) commitment to customer retention by introducing an

internal service marketing initiative, whereby each CEP staff member is a marketer and a

customer, in terms of internal and external information dissemination is crucial. Staff

commitment and the existing harmonious environment are conducive to this. Therefore,

in analyzing CEP’s Internal Service Quality is the only in-house aspect that may need

developing to introduce a market orientation approach to the delivery of excellent service

and customer retention.

2.1.5 Competitive role in the market place As stated before, CEP has become the absolute market leader in the Correctional

Education industry. It is also observed in the BCG matrix that programmes in the Life-

Skills and Religious areas are loosing market share at the moment, which means that the

division has to defend its market position. By making the product exclusive and

incorporating it in the entire curriculum, CEP can regain market share. 2.1.6 Marketing mix strategies


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Referring to the strategy of market penetration and the product portfolio in order to attract

the non-participants the following marketing mix is recommended using the 7P’s, taking

into consideration the participant group to retain them.

Table 9: Marketing Mix # Marketing

Mix


1 Product Restructured curriculum, programmatic accreditation.

Same product applies

2 Price Cost reduction (modified value chain) allowing increased programme participation per enrollee.

Programme offered in packages based on assessment and personal needs

3 Place Programmes will be offered in the same location with a new curriculum

Programmes will be offered at place of habitation (yards and blocks). Distance education style using inmates that are loyal (see table 6)

4 Promotion Posting up the new curriculum and the benefits attached

The use of the print media for building family support. The use of collaborators, NGO s and FBOs. Religious and sporting functions. Campaign launch

5 Process A more detailed curriculum with strong emphasis on contact hours

Even more emphasis on contact hours.

6 People CEP will employ the best HR practices in the areas of staff recruitment and selection, training and development.

Same applies

7 Physical

Evidence

Reports from the media houses, testimonies

Enrolment and programme participation with customer satisfaction.

2.1.7 Beyond the Marketing Mix

o Resources: CEP having a greater number of resources than their competitors will

have an easier time competing in the marketplace.


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o Financial resources- Having access to the transformational vote for corrective

activity which is directly under the “development programmes vote”

o Plant-Having adequate facilities and modern equipment to carry out and

match providers on the outside who are not in direct competition.

o Human- The CEP staffs have all gone through training such as process

mapping and management strategies, team dynamics, curriculum development

and other necessaries for proper delivery. CEP also enjoys the specialization

placed on their job descriptions, which them takes away from the overly

burdened operational activities.

o Legal- Application to marketing here is the presence of the equal opportunity

act, which enables all customers to have access to programmes. Exceptions

will be made in the area of education where one’s ability to enroll into

programme of choice depends on the evaluation assessment.

o Organisational structure- A hierarchal system which is lead by the

superintendent and managed by officers of CEP. See figure 12 below

Figure 12: Organisational Structure of CEP

o Informational knowledge- Knowledge of the customers and competitors is a

key resource.

o Relationships


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CEP’s business success, as in life, is based on the relationships they have with

people (stakeholders, see stakeholder map). Marketers must aggressively build

relationships with customers, distributors, collaborators, partners and even

competitors if they want to have success in the competitive marketplace.

There are four type of relationships the department recognizes; (1) win-win

(2) win-lose (3) lose-lose (4) lose-win (customer-vendor). Acknowledgement

of these helps determine the strategies adopted.

Small competitors, NGO’s and FBO’s usually have a harder time competing

with CEP because of their disadvantage in resource allocation.

o Offerings – These are the ongoing promotional incentives and after-care services

and favours the department offers as a bonus for its customers to improve loyalty.

o Business Models- CEP’s concept long ago of programme vs. programme in

competitive marketing especially in the area of spiritual programmes are dying.

It's slowly becoming business model vs. business model. CEP recognizes that

Business model innovation can make the competition's programme superiority

irrelevant. Business model innovation allows the management to change the game

instead of competing on a level playing field.


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PART 3: HOW ARE WE GOING TO GET THERE?


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3.1 Promotional Campaign

According to Parasuraman et al 1985, customer expectations exist at two levels: what are

customers’ desire and what they want. Based upon informal surveys conducted, the

following was revealed:

Table 10: CEP Customers wants and needs

Wants Desires Programme enrollment Acceptance in programme signed up for

Family support Family interaction

Less Supervision Segregation from non-participants

Privileges accrued unto them Reduction in sentence/acceptance by tertiary

institution

All of the above wants and desires will be addressed in the proposed plan, to ensure that

service delivery meets the above criteria. According to Kotler (2003), “Marketers need to

assess which experiences and impressions will have the most influence at each stage of

the buying process.”

3.1.1 Communications Objectives

o Maintain demand for well-known programmes

o Introduce new and unknown programmes

o Increase demand for well-known programmes

The desired response of the design is to create awareness and desire for the full customer

focused appreciation/relationship that CEP aims to solidify with its intended audience,

while inviting all audiences into participation.

According to Kotler ‘the message should gain attention, hold interest, arouse desire and

elicit action.’


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3.1.2 Budgeting and Justification for Implementation

The budget for the marketing plan was developed using the Porter’s Value Chain so that

a more detailed activity based costing can be established.

Figure 13: Budget for CEP marketing plan using Porter’s Value Chain

Cost Benefit Analysis

This plan has a life cycle of one academic year (10 months). The pay back period was

determined for that period. Below a rough analysis was done to justify cost. No of Prisoners released by 2008 enrolled in programmes

Basic Salary(based on minimum wage)

Taxes applied on B (V.A.T) of

15%

No of Months

Total

A B C D A x C x D48 $2340.00 $351.00 10 TT$168,480.00


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3.1.3 Implementation

The following GANTT chart identifies the marketing process with their time lines clearly

established. The task owners are informed and they are on board with implementation.

The Henley MBA consultant will be tracking plan vs actual results

Figure 14: Gantt chart for Marketing Implementation Plan

The Porter’s value chain was adopted and incorporated with a Process mapping approach

which attempts to give a clearer understanding of marketing implementation as an

activity (see figure X) below.


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Figure 15: CEP Marketing Implementation Plan

Source: Own Creation Adaptation of Process mapping and Porter’s Value Chain


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3.1.4 Monitoring, Control and Evaluations

After initial implementation, monitoring is still an ongoing process, whereby the

marketing department of CEP will be responsible for the control and flow of the desired

message design, communication programmes and utilization of media mixes. The

relationship between audience awareness, exposure reach and its frequency must be

monitored through consumer feedback and advertising portfolio test on the way forward.

Initial control of the procedures and processes will be overseen by the Prison Programme

Coordinator, who determines the necessary burst of promotions according to seasonal,

cultural, customer satisfaction evaluation programmes or surveys. All findings will be

reported to the Senior Superintendent of Programmes who has the final input. Tracking

the plan against actual results will involve monthly meetings, to discuss some of the

following, see table below.

Table 11: Table of indicators

Key Performance Indicator Determination

Increase in customer awareness Word of mouth and surveys

Adoption rate Movement from non-participatory to participatory

Database expansion The actual increase of the number of customers

Number of new customers The actual increase of the number of customers

Sales increases Number of additional programmes enrolled for.

Market growth rate Reduction in non-participatory group.

Turnover rate increases Using the Benchmark Portal calculation for turnover which is the percentage derived from dividing: (Total number of customers leaving the center) / (Total number of customers at the beginning of the period). Usually, the time period is one year.

Internal service quality Less complaints lodged, customer satisfaction

Customer-loyalty rate/process Attrition rate using the loyalty matrix

Organisational image Stakeholder new interest

Availability of feedback Active participation in forums, seminars etc.

These meetings will allow CEP to evaluate actual results against forecast and, if

necessary, to adjust its strategy to arrive at focused targets while maintaining and


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enhancing organisational image, customer relationship development and increased

customer satisfaction. A four month milestone survey/census should be undertaken to

determine the ‘winback’/return rate of lost or exit customers, and the satisfaction levels of

all participating customers. This mile stone coincides with the Christmas season where

programmes are usually closed down.

3.1.5 Contingency Plan

The present marketing strategy is aimed at ensuring that the marketing objectives are met.

However, this may not be achieved because of actions by competitors and internal

problems. An entry into the Correctional Education sector by another competitor should

any of the above occur, contingency measures would be exercised to minimize loss,

protect CEP’s goodwill and help keep market share at the present level while rebuilding

is being undertaken. These contingencies are:

a) Forming Strategic Alliances: with NGOs and FBOs.

b) Forming Promotional Alliances: with collaborators to reduce advertising costs

while publicizing the product portfolio

c) Reacting to Existing Competitors Strategies: attacking challengers directly by

increased promotional activity and increasing reward/return (points of

difference) percentages in the short-term.

Contingency planning would enable CEP to continue operations in the event of a

‘political scenario’, thus the reason for allocating 10% of the marketing budget to

contingencies.

3.1.6 Conclusion

Based on the SWOT analysis in part 1 it became clear that CEP had some important

advantages in the industry, but it is also obvious that the lack of marketing experiences

and a management information system support is weaknesses and that a number of new

entrants in the industry is to be expected, which means that also present stakeholders

should be prioritized and incorporated in the marketing plan.


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The strategic goals of CEP are linked to a growth strategy and by focusing on the

exclusivity of the product offerings; there is a good chance of success, especially with the

attention paid to the two distinct groups.

The marketing plan describes concrete actions in the months of July 2007 and August

2007 that should be initiated to implement the marketing strategy and the related

marketing budget of TT$168,289.00 is assessed to be balanced compared to the action

plans specified and the present financial goals (customer enrollment) for September 2007.

BIBLIOGRAPHY:

1. Henley Management College (2005.) Managing Marketing Workbook.

2. Kotler, P., & Keller, K. L., (2006). Marketing Management 12th edition. United

States of America: Prentice Hall

3. Lancaster, G & Massingham, L (1998) Marketing Management (2nd ed.) Mc

Graw-Hill International editions.

Documents

Rowen Bedeau Managing Marketing Assignment-A