Retrospective strategic analysis of LNTU brand management

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Retrospective strategic analysis of LNTU brand management

Nataliia Vavdiiuk, Doctor of Economics Science, Professor Lutsk National Technical University

Nataliia Koretska, PhD in Economics, Associate Professor Lutsk National Technical University

Nadiia Kovalchuk, PhD in Economics, Associate Professor Lutsk National Technical University

Roksolana Gavrylyuk, student ONP «Management», Lutsk National Technical University

Universities carry out educational activities in competitive conditions, and the growth of the value of the HEI brand will depend on its reputation. The potential for growth in the value of the HEI brand will include a decrease in overall competition; enhancing image and prestige; increase in financial resources; achieving the mission; achievement of the development strategy. Nowadays, there are many universities and colleges that manage their own brands to gain a competitive advantage. The increase in the number of new educational products leads to increased competition in the market of educational services. This requires higher education institutions to form brand management tools for the purpose of developing higher education in accordance with consumer needs and requests and maintaining communication with the audience The article examines the problems of brand management in higher education institutions. The relationship between the volume of enrolled students for study, financial income received from payment for educational services and the value of the OP brand was determined. The sub-brands of EP LNTU were distributed and a matrix of their positioning was formed. It has been established that the brand management of higher education institutions depends on the chosen strategy, and the effectiveness of strategy implementation depends on the evaluation of brand perception and vice versa. Strategic alternatives for managing OP sub-rents at LNTU (selective brand; prestigious brand; affordable brand; dead-end brand) and brand management tactics are proposed.

Keywords: brand management, brand strategies, brand evaluation methods.

Вавдіюк Наталія, .д.е.н., професор Луцький національний технічний університет

Корецька Наталія, к.е.н., доцент Луцький національний технічний університет brand management strategy evaluation

Ковальчук Надія, к.е.н., доцент Луцький національний технічний університет

Гаврилюк Роксолана, здобувач ОНП «Менеджмент» Луцький національний технічний університет

РЕТРОСПЕКТИВНИЙ СТРАТЕГІЧНИЙ АНАЛІЗ БРЕНД-МЕНЕДЖМЕНТУ ЛНТУ

Університети здійснюють освітню діяльність у конкурентних умовах, а зростання вартості бренду ЗВО буде залежати від його репутації. Потенціал зростання вартості бренду ЗВО міститиме зменшення загальної конкуренції; посилення іміджу та престижу; збільшення фінансових ресурсів; досягнення місії; досягнення стратегії розвитку. Нині налічується багато університетів та коледжів, які управляють власними брендами, щоб отримати конкурентну перевагу. Зростання кількості нових освітніх продуктів призводить до посилення конкурентної боротьби на ринку освітніх послуг. Це вимагає від ЗВО формування інструментів управлінням брендом з метою розвитку вищої освіти відповідно до споживчих потреб та запитів та підтриманням комунікації з аудиторією.У статті розглянуто проблеми бренд-менеджменту в ЗВО. Визначено залежність між обсягом залучених студентів на навчання, отриманих фінансових находження від оплати за освітню послугу та вартістю бренду ОП. Розподілено суббренди ОПП ЛНТУ та сформовавно матрицю їх позиціонування. Встановлено, що бренд-менеджмент ЗВО залежить від обраної стратегії, а ефективність реалізації стратегії від оцінки сприйняття бренду і навпаки. Запропоновано стратегічні альтернативи управління субрендами ОП в Луцькому НТУ (вибірковий бренд; престижний бренд; доступний бренд; тупиковий бренд) та тактики бренд- менеджменту.

Ключові слова: бренд-менеджмент, стратегії бренду, методи оцінки бренду.

Statement of the problem in a general form and its connection with important scientific and practical tasks

Higher education belongs to the sphere of service provision, therefore, all principles of branding educational services can be applied to institutions of higher education (hereinafter, higher education institutions). At the same time, the consumers of educational services are students, and the beneficiaries are employers and public organizations.

HEI brand management is an innovative type of management that includes functions, methods for forming brand architecture and implementing brand strategies. It is the effective HEI brand management system that makes it possible to increase the level of brand capitalization, its value, increase self-financing reserves, and strengthen the image and prestige. And taking into account the fact that in Ukraine students choose their future institution of higher education based on prestige, evaluation and interpretation of information about it, the objectification and monetization of the academic reputation of higher education institutions as a brand are still relevant today.

Analysis of the latest studies, in which the solution to the problem was initiated. Research on branding issues was carried out by domestic and foreign scientists: D. Aaker, J. Alba, D. Amold, L. Arpan, S. Blain, L. Volkova, V. Domnin, G. Karl, K. Keller, D. Klyuchko, S. Levy, D. Ogilvy, A. Rainey, J. Ritchie, R. Rueckert, J. Sullivan, R. Srivastava, N. Tarasova, A. Chatopadhyay, A. Shocker, et al. Thus, scientists have formed the concept of a brand, defined the functions of a brand, and the main branding strategies. However, the issues of increasing the effectiveness of the implementation of the brand management strategy of the educational institution and the formation of metrics for evaluating its effectiveness remain unexplored.

Objectives of the article: to consider the theoretical foundations of the brand management of HEI; determine the impact on the value of the EP brand; to form a matrix of positioning of EP sub-brands in LNTU; to form strategic alternatives for managing EP subleases in LNTU.

The philosophy of the LNTU brand is based on the ideology of consumption: a clear understanding of the meaning of the brand in the market. HEI has a well-designed logo, which graphically depicts the central building of the university, the flag of Ukraine with the Latin inscription "Docendo discimus", which translates as "Teaching - let's learn". The university brand combines history, information about famous graduates, discoveries and achievements made within its walls, etc. Thus, the brand carries a certain promise to the target audience.

Among the target audience of LNTU, we will single out: students (existing and potential applicants); parents of students; university administration; professors and teaching staff and other employees (librarians, technical staff); employers; HEI-competitors; intermediary structures in the market of educational products and services (employment services, labor exchanges, associations of educational institutions, etc.); services for employment and population employment; authorities.

The university trains specialists at 7 faculties, to which 35 departments are subordinate. Educational activity is carried out under the valid license of the Ministry of Education and Science of Ukraine (series of AE No. 527292 dated 02.10.2014) at the first (bachelor's) level; second (master's) level; third (educational and scientific) level.

From October 31 to November 14, 2018, a survey was held at the LNTU, in which first- year students (those enrolled on the basis of the PZSO, on the basis of the diploma of a junior specialist and the first year of the master's degree) took part, regarding their motivation to study and the perception of the Lutsk brand NTU The general population of respondents was 1,521 people, the sample was 608 people (Fig. 1), which made up the percentage of the general population in the amount of 39.77%. The confidence probability is 0.99, the theoretical statistical error is 0.041, the confidence probability = 0.95, and the theoretical statistical error is 0.031. The sociopolis.ua service was used for the calculation.

Fig. 1. The share of surveyed first-year students Note. Formed based on survey results

Out of 1521 first-year students, 608 were interviewed, which is 40% of the total population.

Fig. 2. The share of surveyed first-year students by majors of LNTU Note. Formed based on survey results

The answer to the question about the beginning of the search for a university, a faculty for study allows you to get a judgment about how long applicants consider making a decision about entering a higher education institution (fig. 3).

Fig. 3. The share of answers regarding the search for a university, faculty for study Note. Formed based on survey results

From the data in figure 3, we can conclude that future students most often actively collect information about LNTU within a year - 22.5%, six months - 24.5%, and 2-3 months before the start of submitting documents - 35.2%, a long period studying the HEI brand as a place for learning. Based on the following answer, we will evaluate the relationship to the cost of the educational service and the priority of choosing sources of its financing (fig. 4).

Fig. 4. The value of the tuition fee

Note. Formed based on survey results

As we can see, more than 56% of the respondents study on a budget form of education, and for 24%, the amount of payment for education plays the main role, but not the key one. This shows that for students it is not so much the price that is important as the quality of education, which are also components of the LNTU brand.

Figure 5 shows the main sources of obtaining information about the university as a brand: the university website (41.8%), parents, relatives, friends (29.6%). 27.8% of students have parents who studied at LNTU, and 57.9% have friends.

Fig. 5. Sources of obtaining information about the university as a brand Note. Formed based on survey results

At the same time, half of the respondents (51.2%) noted that they made decisions together with their parents regarding the choice of university. This was especially observed when choosing a specialty and EP. The ability to work and receive funds, prestige and the opportunity to study on a budget - these factors most influenced the choice of a specialty as a sub-brand of LNTU.

A positive characteristic of the brand of LNTU is the expansion of the list of specialties - subbrands, because the majority of students (17.8%) noted that it was the presence of the desired specialty for them that became decisive when choosing a higher education institution. In addition, young people note the convenient geographical location of the university (13.9%), the availability of budget funding (12.3%), the quality of education (9%), the opportunity to obtain a promising education (8.5%), and the opportunity to study and train abroad (7.4%).

Let's determine the level of loyalty to the choice of HEI and sub-brands (fig.6).

Fig. 6. Evaluation of loyalty to the LNTU brand and sub-brands

Note. Formed based on survey results

When asked about re-entering the LNTU for the same specialty, 85.5% of respondents would choose the LNTU, and 74.5% would choose the same specialty or EP.

It has been proven that the higher the degree of prestige of the EP educational service, the higher the level of profitability will be. Table 8 shows the profitability indicators for EP sub-brands at the LNTU at the beginning of the 2018-2019 academic year.

It was established that the highest level of potential income from payment for educational services has: 192 Construction and civil engineering - 8.7%; 133 Industrial engineering - 7.2%; 076 Entrepreneurship, trade and exchange activity and 122 Computer science - 5.8%, respectively; 131 Applied mechanics - 5.5%; 141 Power engineering, electrical engineering and electromechanics and 073 Management - 5.2%, respectively; 071 Accounting and taxation - 4.7%; 275.03 Transport technologies (on road transport) - 4.6%; 123 Computer engineering - 4.3%. The lowest level of potential income from payment for educational services has: 113 Applied mathematics - 0.43%; 152 Metrology and information and measurement technology - 0.46%.

EP sub-brands have a slightly higher value of potential income in LNTU: 035.10 Philology (applied linguistics), 125 Cyber security, 205 Forestry, 232 Social security, 191 Architecture and urban planning. It is worth noting that the indicated specialties were opened recently at the LNTU and are not accredited for the first and second educational levels, but they demonstrate a positive trend in obtaining funds for the educational services provided.

To develop a brand positioning strategy, we will form a sub-brand positioning matrix of the LNTU according to the 2nd indicators (Fig. 7): the degree of prestige of the educational service in the market segment and the relative market share occupied by the EP sub-brand.

All points of one-dimensional space can be specified by one number at the selected origin. The matrix of positioning of EP sub-brands is possible according to the following distribution: (8; 8). A mandatory element of the coordinate system in the positioning matrix of EP subbrands is the origin of coordinates - the point from which distances are counted - 0. Another mandatory element is a unit of length, which allows you to calculate distances that will indicate that EP belongs to the squares of subbrand strategies. For a two-dimensional space that will characterize the quadrants:

- with the points x(0;2) and y(0;2) a situation of a dead end brand is possible;

- with the points x(0;2) and y(2;8), a selective brand situation is possible;

- with the points x(2;8) and y(0;2), the situation of the available brand is possible;

- with the points x(2;8) and y(2;8) the situation of a prestigious brand is possible.

So, the matrix provides four options for positioning strategies of EP sub-brands in LNTU: selective brand; prestigious brand; available brand; dead end brand. In the future, the analysis should also take into account the average level of growth of the contingent according to the EP (ROS): for a selective brand, it will be from 15 to 20%, for a prestigious brand - more than 20%, for an affordable brand - 5-10%, for a dead-end brand - less than 5%.

Fig. 7. Matrix of positioning of EP sub-brands in LNTU Note. Formed by the authors

According to the results of the distribution of EP sub-brands in LNTU, the largest number of them is concentrated in the dead-end and successful brand quadrants, several EPs belong to the quadrants of selective and affordable brands. With the increase in the number of students enrolled in studies and the financial income received from payment for the educational service, the value of the EP brand and the prestige of the educational service of higher educational institutions will increase, which will lead to an increase in the value of the higher education brand and vice versa.

Depending on the obtained results of the research on sub-brands to strengthen the corporate strategy of brand management of LNTU, we will form appropriate strategies (Fig. 8; 9):

- if the degree of prestige of the educational service is low, and the relative market share is high, then the LNTU sub-brand is available;

- if the degree of prestige of the educational service is high, and the relative market share is low, then the sub-brand of LNTU is selective;

- if the degree of prestige of the educational service and the relative market share are low, then the sub-brand of LNTU is a dead end;

- if the degree of prestige of the educational service and the relative market share are high, then the sub-brand of LNTU is prestigious.

Fig. 8. Matrix of positioning of EP sub-brands in LNTU Note. Formed by the authors

The relative share of the educational services market occupied by the EP sub-brand at LNTU affects the profitability of the educational service in different ways and depends on its prestige. The higher the degree of prestige of the educational service, the higher the level of profitability. Figure 9 shows four options for positioning strategies: selective brand strategy; prestige brand strategy; affordable brand strategy; a strategy for exiting a dead-end brand.

Fig. 9. Matrix of positioning of EP sub-brands in LNTU Note. Formed by the authors

The strategy of exiting a dead-end brand is focused on setting a low price for a small share of the consumer market. It contains alternative tactics: closing recruitment to the EP and exiting the market of educational services; low prices; repositioning or rebranding of the EP sub-brand.

The implementation of the selective brand strategy is expedient with the use of high price tactics; target marketing; innovative approaches in promotion. If the implementation of the selective sub-brand strategy of EP is focused on the high quality of the provision of educational services and a small market share, then the desire to increase the market share by reducing the price is dangerous. The best pricing strategy for such a brand is to follow the price leader and maintain a high price. In addition, it is necessary to constantly introduce innovations in combination with niche marketing: to attract a small number of students and work on maintaining a high degree of their loyalty in order to become a leader in the sub-segment. Important for such brands is their positioning as innovative educational products, for which applicants and students will be ready to pay a high price.

Strategies of a prestigious brand: innovative approaches in education; high market entry barriers; compliance with the "price-quality" ratio. Consumers of prestigious EP sub-brands are characterized by a high degree of loyalty and willingness to pay high prices, provided that innovations are aimed at improving the attributes of the educational service, which is the main source of value for them. Therefore, an important element for the implementation of the strategy of prestigious sub-brands is a justified price. Innovations become the main element that will help the EP sublease maintain a competitive position. The introduction of new EPs can help maintain the loyalty of existing students and attract new ones. Risks: the prestigious EP sub-brand may lose consumer loyalty if the price of the educational service rises without offering new value to the applicant or the innovation process slows down too much. In addition, the situation in the market of educational services may change, and a prestigious educational service with old educational and professional characteristics will not meet the expectations of consumers.

One of the important points is the price interval between the strategies of the prestigious and affordable brand. If the price gap between the brands is significant enough, then there is a high probability that another competitor with an average price will appear in this market. In such a situation, applicants and students will be more loyal to an expensive brand if its price does not exceed the price of an affordable brand too much.

The strategy of an affordable brand is implemented at an attractive price and is aimed at capturing a large part of the market. Such a strategy should be implemented with low price tactics; unprofitable leader. It is necessary to determine the target audience of applicants and implement niche marketing tools. The increase in the prestige of the educational service under the EP will make it possible to obtain significant income from the volume of services provided, increase profitability due to the increase in the value of the sub-brand for the target segment, brand management tactics of the LNTU (table 2).

Table 2. Brand management tactics of LNTU

Therefore, various tactics can be used to promote the brand of LNTU on the market of educational services, the choice of which will depend on the option of positioning strategies, as well as on the budget planned for the implementation of all these activities.

Conclusions

Therefore, the brand management of the HEI includes the activity of creating long-term commitment to the institution based on joint influence on the consumer in order to stimulate the rise of its prestige. At the same time, the attributes of the HEI brand are a set of sensory characteristics that allow to identify the brand, as well as influence the consumer who had contact with this brand, and their main feature is the ability to appeal not only to rational thinking, but also to subconscious ideas, associative connections connections, ensuring memorization and awareness of the main attributes of the HEI brand, expanding the field of influence of its archetypes.

It has been established that the value of the EP brand will increase with the increase in the number of students enrolled in studies and the financial income received from payment for the educational service, and vice versa. The relative share of the educational services market occupied by the EP sub-brand at LNTU will affect the profitability of the educational service in different ways and will depend on its prestige and demand among applicants. According to the results of the distribution of EP sub-brands in LNTU, the largest number of them is concentrated in the dead-end and successful brand quadrants, several EPs belong to the quadrants of selective and affordable brands.

HEI brand management depends on the chosen strategy, and the effectiveness of strategy implementation depends on the evaluation of brand perception and vice versa. The brand management strategy of LNTU is a corporate strategy combined with several individual sub-brands. Accordingly, it is advisable for LNTU to use a corporate brand in terms of brand width, and a classic brand in terms of brand length of LNTU, which will contribute to the formation of high trust in the brand. The depth of the brand for LNTU is a national brand, which will allow to reduce marketing costs, achieve significant savings while increasing the scope of providing educational services. Depending on the obtained results of the research on subleases, it is possible to form appropriate strategies to strengthen the corporate strategy of brand management of LNTU. Strategic alternatives for managing EP sub-rents at LNTU (selective brand; prestigious brand; affordable brand; deadend brand) and brand management tactics are proposed.

Reference:

1. Arnold D., (1992), The Handbook of Brand Management, Century Business, London.

2. Afanasyev A. Yu. Why are brands needed in education? Management in education. 2012, No. 1. P. 11-15.

3. Bock D.E., Poole S.M., & Joseph, M. (2014. Does branding impact student recruitment? A critical evaluation. Journal of Marketing for Higher Education, 24(1), 11-21.

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