Post on 19-Dec-2015
The Concept
Key elements of our offering: • Expertise in University Placement • Talented, Pan-African Student Body• Rigorous Academic and Extracurricular Preparation• A Moral Foundation• Entrepreneurial Training • Extensive Use of Technology
African Leadership AcademyThe African Leadership Academy (ALA) is a private, co-educational school located in the outskirts of Cape
Town, South Africa. The school brings top students from around Africa to spend two years preparing for entry into the world’s top universities via a rigorous International Baccalaureate Diploma program (similar to the
A’level.) In the process, ALA creates a community of African scholars that will support one another in becoming the next generation of African leaders.
ALA’s Offering
ALA
Expertise in University Placement
•cultivate strong relationships with the admissions offices of top universities
•provide students with expert guidance in navigating through the admissions process
Talented, Pan-African Student Body
•Admissions based on ability and potential, not family wealth
•Students come away with appreciation for diverse cultures and powerful network of
friends
A Moral Foundation
•Emphasis on honesty, fairness, and integrity
•Students participate in public service projects
Rigorous Academics and Extracurricular Program
•IB Program
•High Quality Teachers
Extensive Use of Technology
•Technology enhanced classrooms with wireless connections
•Networked dormitories
Entrepreneurial Training
•Opportunities to run student organizations (store, restaurants, performances)
•Annual business plan competition
Value PropositionEducation is an Investment
FINANCIAL
NONFINANCIALChoose ALA
Greater Chance of C
hild
Getting In
to Top University
with Scholarship
Greater Job Prospects for Child
Greater Financial Security in Old Age
Greater Educational
Experience for ChildGreater Job Options/Satisfaction for Child
Preliminary Bottom Up Estimate: Market Size
At least 115 Schools across the African Continent serving the top end of the market
• Average School Size:356 Students
• Average number of Secondary Students:221 Students(of schools that reported)
• Initial Bottom-Up Estimate:
40,940 Students
Legae Academy * Maru A Pula School * Westwood International School * The American School of Kinshasa * International Christian Academy * International Community School of Abidjan * American International School in Egypt * Cairo American College * El Alsson and the English Academy International School * International Arab Egyptian School * International School of Choueifat – Cairo * New Cairo British International School * Schutz American School * The British International School, Cairo * The Modern English School, Cairo * International Community School, Addis Ababa * Sandford International School * American International School Libreville * Ghana International School * Lincoln Community School * SOS-Hermann Gmeiner International College * Aga Khan Academy, Mombasa * Brookhouse School * Hillcrest Secondary School * Imani School * International School of Kenya * Nairobi Academy Secondary School * Pembroke House * Peponi School * Rosslyn Academy * Tigoni Academy * Machabeng College/International School of Lesotho * Bishop Mackenzie International SchoolsKamuzu Academy * St Andrew's International High School * Le Bocage International School * American School of Tangier * Casablanca American School * Rabat American School * Maputo International School * St Paul's College * Windhoek International School * American School of Niamey * British International School, Victoria Island * Hillcrest School * Dakar Academy * International School Seychelles * American International School of JohannesburgInternational School of Cape Town * International School of South Africa * Khartoum American School * Sifundzani School * Waterford Kamhlaba UWC of Southern Africa * Aga Khan School * International School Moshi * International School of Tanganyika * International School of Zanzibar * The British School of Lomé * American Cooperative School of Tunis * Lincoln International School of Uganda * American International School, Lusaka * The International School of Lusaka * Falcon College * Harare International School * Peterhouse *
Source: European Council of International Schools, http:/www.ecis.org, US State Department, Team Research
Growth Characteristics-Kenya Example
Growth in Private School Student Enrollment from 1980-96
0
1000
2000
3000
4000
5000
6000
1980 1985 1990 1996
Year
Number of Students
Female
Male
Source: Private School Survey, August 1996. Business of Education in Kenya.
Growth: 576%-Female 919%-Male
Wait List Data for a Sample of Kenyan Private Schools
Wait List
0
100
200
300
400
500
600
700
Arya GirlsSecondary
CavinaSchoolLoretoConventMateri Girls
CentreRavalsSecondary
St. LucieKiriri Girls
Source: Private School Survey, August 1996. Business of Education in Kenya.
0
50
100
150
200
250
300
350
Arya GirlsSecondary
CavinaSchool LoretoConvent
Materi GirlsCentre Ravals
SecondarySt. LucieKiriri Girls
School
Percentage (%)
Source: Private School Survey, August 1996. Business of Education in Kenya.
Wait List as % of Enrollment: Kenyan Private Schools example
Average % Waitlist:
57.8%
Transitions in the African Educational System
Primary
Age 5-11/12
Early Secondary
Age 11/12-15/16
University
Age 17/18-21/22
Late Secondary
Age 15/16-17/18
Transition #1
After the Common
Entrance Exam
Transition #2
After the “O” Level for Anglo Schools; Breve for Franco
Schools
Transition #3
After the “A” Level (IB)
Switching SchoolsIs it common for students to switch schools between early
and late secondary schools?
• While it is difficult to find macro statistics, our interviews suggest that many families do, or are willing, to switch.
• One example: the percentage of international students shifts dramatically at St. John’s School in South Africa…
Total students
Percent International
Early Secondary
Late Secondary
…this suggests that families outside of South Africa are sending their children to boarding schools like St. John’s for only the last two years.
Demographics Who can afford to send their children away to school?
Primary Early Secondary UniversityLate Secondary
Only the very
wealthy
Most wealthy and upper middle
class
Most wealthy and upper middle
class
Competitor Offerings
Source: ECIS, http:/www.ecis.org and individual school websitesNote 1: Data collected from a sample of 80 private schools offering secondary education in AfricaNote 2: All schools offer a full secondary education (US or IB 4 years, British 5years)
Educational Offering and School Setting
48
5
10
14
0
10
20
30
40
50
60
70
Primary and Secondary Secondary Only
Educational Offering
Number of Students
Boarding
Day Only
17%
74%
Competitive Landscape
0.5
1.5
2.5
3.5
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000
Total Annual Fees
Entrance Requirements
Ability to Pay
Entrance Exam
Entrance Examand
Ability to Pay
United World College, SwazilandSOS, Ghana
Int'l Arab Egyptian School
Ghana Int'l School
St. Andrew's College, South Africa
Casablanca American School
American School of Tangier
Source: ECIS, http:/www.ecis.org and individual school websites
Positioning within the Competitive Landscape
0.5
1.5
2.5
3.5
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000
Total Annual Fees
Entrance Requirements
Ability to Pay
Entrance Exam
Entrance Examand
Ability to Pay
Boarding SchoolPan African Student BodyLate Secondary (IB Diploma Program)Intense College Preparatory ProgramApprox. $15,000
African Leadership Academy
Customer Overview
Market Research to Date
Key Learnings from Market Research
Additional Market Research
Customer Acquisition Plan
Customer OverviewoPrimarily Black African from countries outside of South AfricaoHighly educated, usually with advanced degree from overseasoProfessional, often self employed or senior executive o‘Earned’ wealth (did not inherit it)o2-3 children, currently in private elementary/high schoolsoTotal Family Income >$80,000/year
oFoundations interested in Education/in AfricaoCompanies with interests in Africa (e.g Microsoft, Citigroup)oWealthy individuals who have an interest in Africa/development
oEmployees of Multinational CompaniesoDiplomatsoEmployees of Multilateral Organizations (IFC, UN, etc.)
Wealthy African Parents
Donors
•Expatriate Parents
Market Research: Progress To Date
Customer Interviews Expert Interviews Web Survey
23 Total
•14 done by team
•9 Outsourced
7 Total
•All done by team
Sent to over 50 parents, 5 responses so far
Customer Interviews: Geographies Covered
•Nigeria•Ghana•Ivory Coast•Senegal
* Botswana•South Africa•Zambia•DRC
•Kenya•Ethiopia
•Malawi•Burundi
* Tunisia
Key Learnings
• Reputation of School (opinion of other parents matters b/c word of mouth is main marketing tool)
• College Placement record • Extracurricular Activities• Single Sex vs Co-ed• Diversity of student body• Moral/Religious Education• “Rural” setting vs Urban setting• Facilities: “Wow” factor• Is this a “Finishing school” for rich kids vs “training school” for kids of
professionals?
Non-Important Factors
• For-profit vs non-profit nature of school
• Cost….parents so far not very price sensitive (currently paying $25-35,000/yr/child for schools in UK)
• Luxury of student accommodations
Parent Responses to ALA
Exciting Points• University Placement• Bringing children from
52 African countries to one location
• Majority black student body
• Cape Town Location
Concerns• Sending their children
far away before the age of 15
• Co-ed nature of school (for kids <15)
• Our ability to teach leadership/emphasis on “creating” leaders
• Lack of African language instruction
Implications for Business Model
Primary Early Secondary UniversityLate Secondary
Original Focus New Focus
Shifting to Later in the System
Change in ALA FocusWe now intend to focus on the second transition
RationaleWhy did we shift our focus?
• It’s easier to sell to parents
– Our pool of prospective customers is larger, since more parents can afford to pay for two years of boarding school
– Parents only have to wait two years, instead of six, to see their ROI (children getting into university)
– Parents are more focused on university placement at this later stage– Parents are more comfortable sending their children to boarding school when they are 15 or
16– Parents are more comfortable with co-ed schools when their children are 15-16
• We can develop a reputation more quickly• We can focus on our most important distinguishing characteristic—our
expertise in college placement• No other schools are focused solely on the final two years• Students are more mature so there are fewer operational challenges• We can charge higher tuition while lowering capital expenses
25
Plan for Continued Market Research
• Finish Parent Interviews– 3-4 parents
• Continue Web Survey• University Interviews• Assess Donor Demand
– Interview 2-3 Donors
• Analyze Results• Synthesize Key
Learnings
Area of Work
Feb 29 Mar 7 Mar14
Week ending
Customer Acquisition
Groups to target
Parents
Corporations, Embassies & Ngo’s
Students (High Schools)
Donors (for scholarships)
Customer AcquisitionHOW TO TARGET?
PHASE I PHASE IIIPHASE II
Media (Magazines, Newspapers) Advertisements
Brochures
Alliances with high Schools - Students, Parents, Teachers, etc.
Alliances with Corporations & NGO’s (extend special offers to employees)
Annual Presentations in cities.
Video Brochure
Arrange visits by prospective parents, high-school heads, students, etc.
Risks and Plan to Mitigate
• Parents will be reluctant to enroll their children in a new school that lacks a reputation
• Recruit principal and initial teachers with a track record; Focus on differentiating characteristics
Risk.. Plan..
• Parents will not switch schools
• Difficulty accessing customers
• Regulatory risk
• Venture will unable to raise sufficient funding
• Venture will be unable to become IB certified immediately
• Zoning regulations will prevent development
• Market to families early on so they plan on switching
• Location of school in South Africa will minimize regulatory risk
• Hold cocktail parties outside of school to inform parents; market to large companies
• Leverage network of contacts within development-minded sector; find group of private investors.
• Hire a high percentage of IB trained teachers and appeal to get certification earlier
• Buy land that is already zoned as “non-agricultural use”