Market Analysis for International Students and Foreigners

KeyStay “To create an easy life for international students and also foreigners” “Marketing Foundation” Assignment 1 Introduction to the company 2 Introduction Description 2 Market Situation 3 Market Overview 3 Macro Environment Analysis 3 Micro Environment Analysis 7 Competitive Market Summary 7 Consumers in marketplace 96.7% Collaborator Analysis 10 Swot Analysis 11 Marketing Initiative and Goals 11 Reference lists 12 Introduction to the company Introduction Description In recent years, the number of international students has increased quickly in Australian higher education institutions and education service has developed in order to

KeyStay
“To create an easy life for international students and also foreigners”
“Marketing Foundation”
Assignment 1
1

Table of Contents
Introduction to the company......................................................................................................2
Introduction Description......................................................................................................................2
Market Situation.........................................................................................................................3
Market Overview.................................................................................................................................3
Macro Environment Analysis....................................................................................................3
Micro Environment Analysis.....................................................................................................7
Competitive Market Summary............................................................................................................7
Consumers in marketplace..................................................................................................................9
Collaborator Analysis........................................................................................................................10
Swot Analysis....................................................................................................................................11
Marketing Initiative and Goals................................................................................................11
Reference lists..........................................................................................................................12
2

Introduction to the company
Introduction Description
In recent years, the number of international students has increased quickly in Australian
higher education institutions and education service has developed in order to support overseas
students. Although studying overseas offers benefits to international students, it is a challenge
to leave the home country and move to a new environment and culture. One of the difficulties
when adapting to a new place is finding suitable accommodation.
Therefore, Keystay is an Application designed to comply with Android and IOS. It will aid
and support international students in finding accommodation in all parts of Australia.
For the company’s mission, we want “to create an easy life for international students and also
expatriates”. We provide a broad range of support services to help international students to
easily find convenient and safe accommodation in Australia and ensure comfort while living
overseas. With wsing the Keystay app, users can get many benefits from basic features of
service such as easily searching houses located nearby the university desired, obtaining full
details and information on all the houses, safe payment of deposit and privacy of personal
details, and easily connecting with house owner by live chat.
To get started, Keystay has challenge with service launch marketing which involves using the
right platform to reach our customers. Thurs, we analyse about macro and micro environment
and present marketing objectives in this assignment.
Market Situation
Market Overview
According to the figure 1 in 7003MKT survey response, I figure out the accommodation tips
is really high demand of international students. It is approximate 70% on the demand for
student accommodation in Australia (URBIS, 2018). Moreover, Kendal (2018) claimed many
students are not able to afford accommodation because of having overcrowded and unsafe
room shares and also some students even sleep in the library. Hence, Keystay is one of the
key to make international student life is better with convenience and safety.
3

Figure 1: Demanding of international student (7003MKT Survey Response, 2019)
Macro Environment Analysis
POLITICAL ANALYSIS
Government policy Major policy changes are highly unlikely
within the next six months.
Legislating tax cuts Government legislates tax cuts for small and
medium businesses which are able to
survive the Senate last year and a rate slice
from 30% to 27.5% came into effect last
July (Elmas, 2019).
Labour’s payment Labour’s industrial relations policies have
many businesses worried because its pledge
restore penalty rate cuts and change the
rules guiding the Fair Work Commission to
deliver bigger minimum wage increases
(Elmas, 2019)
Business loan It is difficult to get a business loan in
Australia.
ECONOMIC ANALYSIS
Interest rates Interest rates are very low and a number of
central banks have eased monetary policy in
response to the persistent downside risks
and subdued inflation. However, financial
market sentiment has improved a little.
4

Exchange rate The Australian dollar is at the lower end of
its range over recent times.
Consumer confidence Although it is extremely low inflation and
low interest rates, customer confidence and
spending are still low. Household debt
levels are at a record high that is one of the
reason of low spending of consumers (Kaye,
2019).
SOCIAL ANALYSIS
Culture Australia is multicultural and multiracial.
Also, international student is growth.
Interstate migration People move from one location to another
for various reasons, such as family,
studying, employment or retirement.
Population in the future Australia’s population can be predicted to
continue to grow and there is no doubt that
migration will play a significant role in that
growth. Hence, population growth will
remain a challenge for policy makers at all
levels of government, particularly in relation
to housing, transport, service delivery,
infrastructure and environmental
sustainability.
TECHNOLOCICAL ANALYSIS
Growing Australia social medial usage Danno (2019) demonstrates that the number
of active social media users has continued to
growth by +5.9% and the number of mobile
social media users has increased by +6.7%
from 2018 to 2019.
Focusing on customers by technology Technology must create exceptional
customer experiences to generate better
conversions and loyalty.
Social media Facebook is still the highest percentage of
the social media platforms with 16 million
users. Instagram has continued a steady
increase of +2.1%. However, the two losers
during the past quarter have been Twitter
and Snapchat; down respectively -2.3% and
a whopping -14% in quarter-on-quarter
growth in advertising reach respectively
(Danno, 2019)
Online shopping Online shoppers have seen a big growth
5

since 2018 because of saving time and
money.
ENVIRONMENTAL ANALYSIS
Energy/Electricity The use and cost of purchased energy
should be identified in order to maintain and
provide lower bill payments that still
provide profit regardless of consumer use.
Water Water provides quarterly statements to the
owner. Thus, water use should also be
monitored by encouraging consumers to
recycle water or be water smart as much as
possible during their time of use of the
goods and services.
LEGAL ANALYSIS
Consumer Laws The Australian Consumer Laws (ACL)
issues regulations to maintain product
quality, safety of use, and durability of the
product. These regulations provide
prevention of unfair contract terms,
consumer rights, product safety laws,
unsolicited consumer agreements, lay-by
agreements and penalties (Australia
Government, 2019).
Product Reliability Regulation Products within Australia are under national
statutory framework to regulate the safety
and information standards. These standards
are developed to prevent unsafe products
that are not marketed within Australia. The
standards used to reinforce and regulate
these products is called the Australian
Competition and Consumer Commission
(Australia Government, 2019).
Privacy Laws Privacy Act 1988 is imperative to protect
the personal information collected and
stored from the consumers in the business’
database system. These laws strictly
regulate and control what a business can and
cannot do with personal information such as
credit cards, tax file numbers, and
confidential medical and health information
(Australia Government, 2019).
6

Political Analysis
The political analysis controls the workings of a business to avoid unfair trading and sales.
Through the political factors, the government is allowed to control and affect how a business
is operated. These factors can include government policy, political stability or instability,
corruption, foreign trade, tax policy, labour law, environmental law and trade restrictions
(B2U, 2016).
As political policies are highly controlled and regulated by the government, Keystay will
need to be flexible and adapt with any changes that any government officials change with
running a business. With this adaptation, Keystay will maintain its status and be protected
under the government’s acts and legislations and remain stable while running.
Another example of this is foreign or international trading. Since Keystay works with
international students, international banking will be applied in exchange for goods such as
accommodation.
Economic Analysis
The economic analysis focuses on issues that affect the business and their performance.
These factors include growth, exchange rates, inflation rates, interest rates, disposable
income of consumers and unemployment rates (B2U, 2016).
Economic Analysis is applied through obtaining trends and growth of international students
migrating to Australia to attend tertiary institutions. It can also record fluctuations of housing,
rent and accommodations that is being temporarily traded (E.g. Rent) to these students and
expatriates. With these trends and rates of changes, it can encourage property owners to
advertise their homes to be rented out to international students, thus affecting the amount of
different opportunities and varieties that will be displayed on Keystay.
Another example that is applicable to Keystay’s economic analysis, is if the rates of change
alter excessively or insufficiently in Australia, it will help to alter the amount of earnings or
profit of the company and the affordability of these student accommodations.
Social Analysis
Social factors consider the demographics, customs and culture from where the business is
being managed. These results and information track the trends of specific items and collect
tracking of any growth and changes to any patterns that may affect the company and the
rates, sales and profit.
7

Keystay’s social analysis is affect through following the data of what particular groups or
countries the international students are mainly from. Studies in Australia has shown that in
2017, the top three countries that international students come from to study in Australia are
China, India and Brazil. Social analysis can help with ensuring and considering different
customs and cultures of the international students by creating an appropriate home for them
to stay in Australia.
Nationality
International
Student Enrolments
2017
China 231,191
India 87,615
Brazil 36,496
Nepal 35,423
Malaysia 32,899
Republic of Korea 31,112
Thailand 30,730
Vietnam 30,536
Colombia 21,628
Indonesia 20,028
All Nationalities 799,371
Studies in Australia, 2017. Table of International Students in Australia in 2017
Technological Analysis
This analysis is a component that requires solutions in technology that create precision in
requirements, specification and validate technical designs (Spacey, 2017). This analysis is
designed to recognise risks and problems and create a solution using technology skills to
improve quality of the marketing and products.
The fact that Keystay is accessible through website and a phone application, technological
analysis is applicable as online records are tracked between trading and communication
between host or homeowner, student, and Keystay online control staff. Money transfers and
refunds or any other exchanges can also be tracked precisely within the banking within
Keystay.
Legal Analysis
This applies broadly to all legal factors in order to prevent criminal, civil or corporate
offenses that may potentially affect the privacy and confidentiality of the business, buyers or
any other organisations in compliance or cooperation to the business.
8

Legal analysis can be practiced within Keystay to help protect personal information of the
homeowner, such as home address and contact details. Students are also protected with
payments and conversational exchanges to secure accommodation and contracts within
Keystay and homeowners.
Micro Environment Analysis
Competitive Market Summary
9

Competitor Target Market Product Kind of
product
Promotional Distribution Strength/ Weakness
Gumtree.com.au
(Direct)
Everyone
Targeting for
buyers and sellers
Searching for new
or used products
Free local marketplace that provides a
variety of goods and services such as:
- Home & Garden
- Baby & Children
- Sport & Fitness
- Clothing & Jewellery
- Accommodation
- Cars
- Jobs
This website lets users to see desired
products from all around the country.
Application and
computer and
phone user-
friendly Website
Online and Social
media campaigning.
Website to
advertising.
Search Ads.
Online throughout
different types of
social media outlets.
Strengths:
- Diversity products and
services
- Free to list and no
transaction fees
- Directly communicate
with house owner
Weakness:
- Not showing references o
bad rental history.
Flatmates.com.au
(Direct)
Students, Workers,
Single
accommodators
looking for
potential
roommates/share
house
Guides users to find possible places to
accommodate with other single
accommodators without having to
visit multiple sites and releasing the
stress of finding people to live with.
Users of this site are mainly people
inviting others to live and share a
house together.
This website lets users see desired
products/places from all around the
country.
Website –
computer and
phone user
friendly.
Online and Social
media campaigning.
Website to
advertising.
Search Ads.
Online throughout
different types of
social media outlets.
Strengths:
- Clear pictures
information about the
property and room.
Weakness:
- Inconvenient
communication
Airbnb.com
(Indirect)
Travellers Provides hosts to advertise their
accommodation to consumers that are
searching for places to stay during
vacations.
Accommodations come in a wide
variety from common homes to very
luxury vacation resorts.
Application
Website
Online and Social
Media
Giving promotional
code
Online throughout
different types of
social media outlets.
Strengths:
- Wide selection
- Protection for guests and
hosts
Weakness:
- Staying long term will be
expensive cost fo
students
- Added fee
10

11

Keystay, Gumtree, Flatmates and Airbnb are online marketplace that connects people who
want to rent out their homes with people who are looking for accommodations. However,
each business has different purpose and strategy. While those competitors focus on diversity
consumers or travellers, Keystay concentrates on helping international students and also
expatriate to find accommodation in Australia. With our strengths, users can easily search
accommodation near their university located and get in touch with house owners by using
application, see the personal listing, review and feedback. Basing on Parliament of Australia
(2019), China, India, Nepal and Vietnam are top ten of nationalities of higher education
enrolments in Australia. Therefore, Keystay set multiple languages such Chinese, Indian,
Nepali and Vietnamese in order that international student and their parents can easily use our
application.
Consumers in marketplace
WHO - International student
- Expatriate
- Student’s parents
WHAT - Finding accommodation in Australia in
short-term or long-term
WHERE/HOW - Consumers can find Keystay in
website, social media advertising such
as Facebook, Instagram and also home
country agent and universities. And
then, user download Keystay mobile
application in Android or IOS
WHEN - Downloading Keystay application
anytime in smartphone
WHY - Finding safe accommodation
- Rental agreement with security of
bond deposit.
12

Figure 2: Percentage of international student organise accommodation before arriving in
Australia (7003MKT Survey Response, 2019)
Keystay only concentrates on specific kind of consumers as international students, their
parents and also expatriates. Based on figure 2, it presents the most of overseas students has
53.2 percent with organising short-time accommodation before arriving to Australia. Perhaps
they have lack of connection and network. Actually, it’s too hard to find right
accommodation in the first moving to new country because of difficulties in unknown people
and lack of information about local area. Some students found their accommodation in long-
term before they arrive with 32.3 percent. With our results from our survey, it shows that 14.5
percent of overseas students have been unsuccessful with accommodation bookings, due to
language barriers and lack of knowledge of booking apps, websites and other alternatives.
Therefore, international students are able to know Keystay by agency guidance and
advertising in website and social media. And then, they can download Keystay application
anytime in Android or IOS by their smartphone.
One of the international student's primary concerns after moving to Australia is finding the
right accommodation with safe and convenient located with their university or workplace.
Keystay will ensure safe accommodation for international students and rental agreement
through requiring signing a contract to protect both the tenant and the landlord. When tenant
enter a private rental contract, the bond is a security deposit held over the accommodation.
13

Collaborator Analysis
Collaborators are entities that allow or enhance a company to provide its particular good or
service to make the business more productive or efficient (Andrea, 2019). According to Tran
and Vu (2017), they claimed that international student agency is affecting and is affected by
international students’ lived realities in studying abroad. Additionally, educational agents are
playing an increasingly bigger role in the international student sector and education providers
by helping to secure 75% of enrolments in Australia’s schools and universities in 2018 (ICEF
Monitor, 2019). Therefore, i connect with main education agency in each country to present
Keystay and its benefits with advertised purposing. International student agency has the
potential to directly introduce the product to overseas students. Hence, Keystay will become
popular by the growth of using of international students. In another word, international
agencies will receive trustworthy and reputation when they help overseas students to find safe
accommodation.
Swot Analysis
STRENGTHS OPPORTUNITIES
- Great communication with house
owner and service assistance.
- Convenient using by apps
- Uploading photos and information
quickly.
- Better support for online transactions
including payments integration as
deposit renting.
- Better reporting by review and feedback
WEAKNESSS THREATS
- Long subscription progress
- Exclusive social media engagement
- Existing players like Gumtree,
Flatmates
- Proliferation of scams and reduce
consumer trust in platform.
Marketing Initiative and Goals
Mobile application is opportunity for the business and also great development of demand
because people pretty much all use at least one mobile app a day. Crook (2018) indicated that
the app has kept growing and growing with the AppStore and Google Play now serving
millions of people around the world. Consequently, I decided to create mobile app for my
company to increase long-term user engagement and make the content compelling. Apps
14

serve many functions such as providing general information, prices, booking forms, searching
features, user accounts, messengers, news feeds, and much more (Haselmayr, 2014). Besides,
mobile app can stand out from the competition and take a big leap ahead of Keystay’s
competitor as Flatmates.
Target market is international students as Chinese, Indian, Nepali and Vietnamese students
and foreigners who want to find accommodation and stay short-term or long-term in
Australia.
To accomplish business success, SMART goals is necessary part of business. Keystay
attempt to achieve awareness of 2,000 users of download apps in 6 months in Australia,
China, India, Nepal and Vietnam. Specific, measure, timely are main goals because it
analyses customer’s demands, help daily reminder to keep company focused on the target
results and manage time bound.
15

Reference lists:
Andrea, K. (2019). Volusion: How to Conduct A 5c Analysis: Templates, Exmaples, and
What to Ask. Retrieved from https://www.volusion.com/blog/situation-analysis-the-5-
cs/
Australian Government. (2019). Australian Trade and Investment Commission: Guide to
Investing: Australian Business and Environment Laws. Retrieved from
https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-
business/Understanding-Australian-business-regulation/Australian-business-and-
environment-laws
Crook, I. (2019, March 5). When did mobile apps become so popular? Retrieved from
https://appinstitute.com/mobile-apps-become-popular/.
Danno, M. (2019). We Are Social: Digital 2019: Australia Social Media Usage Is Growing.
Retreived from https://wearesocial.com/au/blog/2019/02/digital-report-australia
Elmas, M. (2019). Smart Company: Election 2019: All Small Businesses Need To Know
About What Policies Affect Them. Retrieved from
https://www.smartcompany.com.au/business-advice/politics/election-2019-small-
business-policies
Ferguson, H., & Sherrell, H. (2019). Parliament of Australia: Overseas Students In
Australian High Education: A QuickGuide. Retrieved from
https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/
Parliamentary_Library/pubs/rp/rp1819/Quick_Guides/OverseasStudents
Haselmeyr, M. (2014). Forbes: Here’s Why Your Business Needs Its Own Mobile App.
Retrieved from https://www.forbes.com/sites/allbusiness/2014/11/17/heres-why-your-
business-needs-its-own-mobile-app/#48409e05327f
16

ICEF Monitor. (2019). Education Agents Refer 75% of Australia’s International Students.
Retrieved from https://monitor.icef.com/2019/10/education-agents-refer-75-of-
australias-international-students/
Kaye, T. (2019). In The Black: Why Is Australia Consumer Confidence Low?. Retrieved from
https://www.intheblack.com/articles/2019/09/01/why-is-consumer-confidence-so-low
Kendal, L. (2018). Study International: Student Accommodation in Australia – Everything
You Need To Know. Retrieved from
https://www.studyinternational.com/news/student-accommodation-australia-
everything-need-know/
Laws. (NA). Legal Analysis Explained. Retrieved from
https://paralegal.laws.com/introduction/legal-analysis
Ostwald, C. (2018). Regional Student Accommodation Assessment. (Final). Retrieved from
https://docs.education.gov.au/system/files/doc/other/regional_student_accommodatio
n_analysis_report_final.pdf
Spacey, J. (2017). Simplicable: Technology Analysis Guide. Retrieved from
https://simplicable.com/new/technology-analysis
Studies in Australia. (2019). International Students in Australia: Where are Australia’s
International Students From?. Retrieved from
https://www.studiesinaustralia.com/studying-in-australia/why-study-in-australia/
international-students-in-australia
Tran, T, L., & Vu, T. (2018) ‘Agency in mobility’: towards a conceptualisation of
international student agency in transnational mobility, Educational Review, 70:2, 167-
187, DOI: 10.1080/00131911.2017.1293615
17