THE DEVINE INSTITUTE

BUSINESS PLAN 2014

Document Reference
Revision Status

:
:

BUS PLAN/01

01

Date of Issue

October 2013

Approved Date for Issue

October 2013

Names

Title

Signature

Date

Table of Contents
1. EXECUTIVE SUMMARY
5
1.1 Objectives:..........................................................................................5
1.2 The products.......................................................................................5
1.3 Sales Forecast.....................................................................................6
2.0 SUMMARY OF THE DEVINE INSTITUTE
.7
3.0 BUSINESS OWNERSHIP AND MANAGEMENT
.8
3.1 BEE Status..........................................................................................8
3.2 Governance and Management............................................................9
3.3 Roles and Responsibilities.................................................................10
4.0 INSTITUTE LOCATIONS AND FACILITIES
.12
4.1 Locations..........................................................................................12
4.2 FACILITES.........................................................................................12
5.0 VISION, MISSION AND VALUES
.13
5.1 VISION STATEMENT...........................................................................13
5.2 MISSION STATEMENT........................................................................13
5.3 VALUES that bind us.........................................................................13
6.0 BUSINESS OBJECTIVES
13
7.0 KEYS TO SUCCESS
..14
7.1

Internal Factors..............................................................................15

7.2 External (Business Environment) Factors.........................................17

8.0 SERVICES

..18
8.1 Description of Services.....................................................................19
8.2 Education Services...........................................................................19
2

8.3 On-site training workshops...............................................................20

8.4 Learnerships provision......................................................................20
8.5 Recognition of Prior Learning............................................................20
8.6 Community Development Projects...................................................20
9.0 MARKET ANALYSIS SUMMARY
..21
9.1 Market Segmentation.......................................................................21
9.2 Market Needs....................................................................................21
10.0 COMPETITION AND BUYING PATTERNS
22
10.1 Main competitors............................................................................22
10.2 Competitive Edge..........................................................................23
11.0 MARKET
STRATEGY.
23
11.1

Positioning Statement.................................................................24

11.2

Pricing Strategy..........................................................................24

11.3

Promotion Strategy.....................................................................24

12.0 SALES STRATEGY

25
12.1

Sales Forecast.............................................................................25

13.0 IMPORTANT
ASSUMPTIONS
Contents
1. EXECUTIVE SUMMARY
.5
1.1 Objectives:..........................................................................................5
1.2 The products.......................................................................................5
1.3 Sales Forecast.....................................................................................6
2.0 SUMMARY OF THE DEVINE INSTITUTE
7
3.0 BUSINESS OWNERSHIP AND MANAGEMENT
.8

3.1 BEE Status..........................................................................................8

3.2 Governance and Management............................................................9
3.3 Roles and Responsibilities.................................................................10
4.0 INSTITUTE LOCATIONS AND FACILITIES

12

4.1 Locations..........................................................................................12
4.2 FACILITES.........................................................................................12
5.0 VISION, MISSION AND VALUES
.13
5.1 VISION STATEMENT...........................................................................13
5.2 MISSION STATEMENT........................................................................13
5.3 VALUES that bind us.........................................................................13
6.0 BUSINESS OBJECTIVES
..13
7.0 KEYS TO SUCCESS
14
7.1

Internal Factors..............................................................................15

7.2 External (Business Environment) Factors.........................................17

8.0 SERVICES

18

8.1 Description of Services.....................................................................19

8.2 Education Services...........................................................................19
8.3 On-site training workshops...............................................................20
8.4 Learnerships provision......................................................................20
8.5 Recognition of Prior Learning............................................................20
8.6 Community Development Projects...................................................20
9.0 MARKET ANALYSIS SUMMARY
..21
9.1 Market Segmentation.......................................................................21
9.2 Market Needs....................................................................................21
10.0 COMPETITION AND BUYING
PATTERNS22
10.1 Main competitors............................................................................22
10.2 Competitive Edge..........................................................................23

11.0 MARKET STRATEGY

.23
11.1

Positioning Statement.................................................................24

11.2

Pricing Strategy..........................................................................24

11.3

Promotion Strategy.....................................................................24

12.0 SALES STRATEGY

..25
12.1

Sales Forecast.............................................................................25

13.0 IMPORTANT ASSUMPTIONS

..26

29

1. EXECUTIVE SUMMARY
The Devine Institute is a college which provides skills development services to corporate,
government SMMEs and individuals. The college is also in the business of providing
education and training services. The college is wholly black owned and provides
education and training services.
1.1 Objectives:
Profit To generate sufficient profits to finance future growth and to provide the
resources needed to achieve the other objectives of the Institute and its owners.
Growth - To grow the business at a rate that is both challenging and manageable,
leading the market with innovation and adaptability.
Citizenship - To be an intellectual and social asset to the community and the
environment.
There are a few key factors that spell success or failure for a skills development provider,
most of which stem from the importance of reputation of the level of training provided
and how the newly acquired skills of the learners will be applied in the work place.
The content of the learning material should be extensive and complete to provide
learners with well rounded skills and education. The Devine Institute will use the learning
materials that have been fully approved by the SETAs.
The facilitators should be experienced in the said field which they are teaching.
Learners need to be assessed fairly in order to create a level of trust and competency in
the industry.
Feedback needs to be obtained on a continuous basis from private companies in the
industry of what they deem important knowledge skills requirements in their industry.
The feedback and improvement should then be incorporated into the learning framework.
The training materials should be of quality in order for learners to use the materials as
future reference in practice.
1.2 The products
In our range of products, the following services are included:
* Academic Training
- Full-time day-to-day contact sessions at our contact centres.
- Block release (part-time) programmes 3 hours once a week session
either on
Tuesday or Saturdays.
- Correspondence plus correspondence training with once a month
contact session.
* On-site training workshops.
* Learnership provision
* Recognition of Prior Learning (RPL)
*Community Development Projects

1.3 Sales Forecast

Course Enrolled for

2014

2015

2016

2017

Full-Time Tuition

40

60

150

250

Part-Time Tuition

15

25

30

50

Total

55

85

180

300

Full-Time Tuition

20

50

60

80

Part-Time Tuition

10

15

30

50

Total

30

65

90

130

85

150

270

430

FULL QUALIFICATIONS

SKILLS PROGRAMMES

GRAND TOTAL

Estimated number of registered students per course in a year

The college is expecting to start with a moderate number of learners in 2014 and to
increase enrollment modestly in 2015 and 2016, with enrollment growth accelerating in
2016. It is the expectation that the Institute will double its starting enrolment figures
within five years.

2014

2015

2016

2017

Full-Time Tuition

R7000

R7840

R8780

R9840

Part-Time Tuition

R6500

R7280

R8155

R9135

Full-Time Tuition

R3500

R3920

R4390

R4920

Part-Time Tuition

R3000

R3360

R3765

R4215

FULL QUALIFICATIONS

SKILLS PROGRAMMES

Estimated courses fees chargeable with 12% annual increase

Course Fees

Course Fees Collectable

2014

2015

2016

2017

1. FULL
QUALIFICATIONS
Full-Time Tuition

R 280,000

R 470,400

R 1,318,350

R 2,460,000

Part-Time Tuition

R 97,500

R 182,000

R 244,650

R 456,750

Total

R 377,500

R 652,400

R 1,563,000

R 2,916,750

Full-Time Tuition

R 70,000

R 196,000

R 263,400

R 393,600

Part-Time Tuition

R 30,000

R 50,400

R 112,950

R 210,750

TOTAL

R 100,000

R 246,400

R 376,350

R 604,350

R 477,500

R 898,800

R 1,939,350

R 3,521,100

2. SKILLS
PROGRAMMES

GRAND TOTAL

2.0 SUMMARY OF THE DEVINE INSTITUTE

8

Projected sales per course per year

Projected Course Fee Collectable

The college was incorporated this year (2013). The founders of the institute are
experienced in the field of education and training. The institute specializes in offering
Information Technology related skills development programmes. To ensure profitability
the Institutes mode of programme delivery is customized to the needs of the clientele
and is not limited to a specific geographical area.
The programmes offered by the business, with their strong occupational orientation will
contribute to the development of a workforce able to meet the challenges and skills
requirements of South African economy.
The cornerstone of the colleges programmes is the Outcome Based Education (OBE).
OBE is an educational system which emphases the outcomes, learning and
demonstration of those competencies related to the outcomes skills, knowledge and
attitudes that are central to a given career, activity or task. Among the features that
distinguish OBE is the identification of skills by industry and learners evaluations based
on performance of these skills.

3.0 BUSINESS OWNERSHIP AND MANAGEMENT

3.1 BEE Status
We are a qualifying small enterprise on the present vision of the BEE score card and a
Broad Based Black Economic Empowerment enterprise.
Our BBBEE score is due to the following direct and indirect empowerment:
Black ownership: The College Institute is wholly owned by black people;
Management
: As a qualifying small enterprise, we have some control
of our enterprise vested in black women.
Procurement
: The College furthers the vision of BBBEE by using the
business owned by individuals from previously disadvantaged people in the
majority of its procurement.

3.2 Governance and Management

ORGANOGRAM

PRINCIPAL
PRINCIPAL

MARKETING
MARKETING
ASSISTANT
ASSISTANT

Academic Administrator
Academic Administrator

HoD IT
HoD IT

EDUCATORS1
EDUCATORS1

HoD BUSINESS
HoD BUSINESS
STUDIES
STUDIES

ASSESSOR
ASSESSOR

EDUCATORS
EDUCATORS

RECEPTIONI
RECEPTIONI
ST
ST
Cleaner
Cleaner

LEARNERS
LEARNERS

Security
Security

LEARNERS
LEARNERS

MODERATO
MODERATO
RS
RS

LEARNERS
LEARNERS

10

3.3 Roles and Responsibilities

3.3.1 The Directors
The Directors of the college are the first instance of guidance by the constitution (Act No.
108 of 2006) that compels institutions operating in South Africa to adhere to principles of
good governance.
Corporate governance in South Africa has been tightened up significantly with the
publication of the Kings Commission report that outlines processes and systems by
which institutions are directed, managed and held accountable. The Kings report
promotes the highest standards of corporate governance in South Africa.
The Code outlines the following principles of good governance which will be adhered to
by the Directors, and members of the college:
Accountability,
Transparency,
Discipline,
Responsibility,
Fairness, and
Social responsibility.
The following diagram summaries the responsibilities of the directors:

1
DEVELOP

5
DIRECTORS

MONITOR

i.

APPROVE

FINANCE

COMPLY

Development Function

While the word develop is used, it does not imply the directors themselves must
actively develop the required plans, policies and structures. Instead, the Directors;
Must ensure that the development has taken place according to set criteria and set
processes.
The following responsibilities are in fact shared by the Directors and the staff:
Monitoring Role
The essence of monitoring is to watch, observe, keep an eye on, keep track of, follow,
note, oversee, and supervise, check, survey. The Directors need to ensure that the
progress or lack of progress in these areas is observed, noted and continually tracked in

order to ensure the delivery of quality provision and the continuous improvement of the
institution. The Directors are required to monitor the implementation of:
(i)
The policies and procedures (QMS);
(ii)
Strategic plan;
(iii)
Management of operational and environmental risks; and fixed assets
(buildings, furniture, etc)
ii.

Approve

Approval implies endorsement, support and agreement.

In the approval role, the Directors must at all times understand the operational areas that
they must approve and must ensure insight into each of these areas:
(i)
Policies;
(ii)
Procedures;
(iii)
Activities (including institute projects);
(iv)
Business decisions (such as student numbers, enrolments, additional
staffing); and
(v)
The establishment of committees and reports from them
In terms of students numbers, enrolments and additional staff, a clear strategy needs to
be articulated prior to the Directors approval.
iii.

Ensure Compliance

The college as an institution of learning operates within a framework of legislation which

is critical for the success of the institution. It is required to comply with different sets of
legislation (e.g. accreditation, registration, employment, etc).
The directors of the college must ensure that the strategic and operational activities of
the institute comply with legislation and reporting on compliance is done.
iv.

Provide Financial Oversight

The Directors are required to report on the overall governance of the institution. The
Directors must ensure that the institution operates within the approved budgets, and
must further ensure that the institution complies with the Generally Accepted Accounting
Practices (GAAP)
3.3.2 Principal
The Principal is subject to the responsibilities of the Directors and, is responsible for the
overall leadership of the institution.
The principal must provide the Directors with the required support and advice that the
directors need to perform their duties effectively and efficiently. Whilst the Directors
duties are very different from those of the principal, there is an important relationship
between them. To create good working relations between senior management and the
Directors, it is vital that both parties have the same understanding of the boundaries and
the expectations of governance and management. The Directors chairperson and the
institute principal play an active role in providing such understanding.
3.3.3 Academic Committee
The Directors need to be informed and updated about the nature, scope and quality of
the institutions academic provision while leaving the details to the principal and the

12

academic team. The principal informs and consults with the Directors regarding the
activities and plans of the academic board.

4.0 INSTITUTE LOCATIONS AND FACILITIES

4.1 Locations

The head office is located in one of the strategic location in the heart of
the Johannesburg Business area at the corner of Loveday/Plein Streets.
The Devine Institute has leased approximately 425 m2 of space.
4.2 FACILITES

The Institute possesses the following resources/facilities at its premises:

No
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Item Description
Computer
Digital Camera
Filing Cabinets
Fire extinguisher
Office Chairs
Office Desks
Photocopying Machine
Printers
Projectors
Reception Desk
Student Desks
Students Chairs
Telephone Sets
Television Sets
White Boards

Quantity
10
2
5
3
26
8
1
2
3
1
50
120
3
1
8

5.0 VISION, MISSION AND VALUES

The education and training services of The Devine Institute are
underpinned by our vision, mission and values. The Devine Institute has:
5.1 VISION STATEMENT

The Devine Institute commits to maintaining high skills development

standards, to fostering and inspiring learner success, and to creating
diverse opportunities for life-long learning. By attracting strong leadership
and distinguished staff/personnel to the institute of excellence, we create
an enriched learning environment that empowers learners to transform
their lives
5.2 MISSION STATEMENT

The Devine Institute promotes intellectual discovery, physical

development, social and ethical awareness, and economic opportunities
for all through an education that transforms lives, builds communities, and
improves society.
5.3 VALUES that bind us

To perform our services with:

Vigour
Integrity
Creativity
Innovative
Customer orientation
6.0 BUSINESS OBJECTIVES
PROFIT To generate sufficient profits to finance future growth
and to provide the resources needed to achieve the other objectives
of the institute and its owners.
GROWTH To grow the business at a rate that is both
challenging and manageable, leading the market with innovation
and adaptability.
CITIZENSHIP To be an intellectual and social asset to the
community and environment.
14

7.0 KEYS TO SUCCESS

There are two keys to success that The Devine Institute is focused on.
These are broadly characterized as internal and external factors, and are
explained in more details in the following two sections.

7.1

Internal Factors

The Devine Institute feels that it owns success through some basic
internal factors. These are:
Excellence in fulfilling the promise
It is critical for the success of The Devine Institute to ensure that for
every claim/promise, there are corresponding actions to fulfill it, and
proof must be presented.
Developing visibility to generate new business leads
Participation by The Devine Institute in business affiliations with
reputable organisations within the skills development sector is a
necessity. The major role players in the industry are the
Department of Higher Education and Training, Umalusi (General and
Further Education and Training Quality Assurance body), Sector
Education and Training Authorities (SETAs) and Association of
Private Providers of Education and Training (APPED). By far The
Devine Institute will be affiliating with the above institutions.
Strategic relationships must also be made with companies,
government institutions, regional (provincial) government offices,
and NGOs, as well as with individual customers. Our experience in
the industry for the past two years ensures that we have solid
foundation in the brand loyalty and customer satisfaction, thus
providing us with a great advantage of increasing our share in the
education and training market.
High quality service and customer satisfaction
Everything The Devine Institute sells is guaranteed; therefore, the
services have to do what the customer wants and does it well. Longterm customer satisfaction is critical to the survival of the business.
To this effect The Devine Institute has developed a Quality
Management System (QMS) according to ISO 9001-2000 standards
and accreditation will be sought with the South African Bureau of
Standards (SABS). By far, our quality system has been approved by
Umalusi (quality assurance body).
Key management team
16

The right management team is integral, and must have a strong

foundation in marketing, management, finance, education and
training services development. The Devine Institute is confident in
its team, and where necessary close collaboration with other
businesses will be made to ensure that the skills of the management
team are supplemented. For example, collaboration with accounting
and auditing firms will strengthen the financial accountability aspect
to the business.

Marketing
Differentiating The Devine Institutes skills development services
from traditional college operation and management through
dedicated contact centres national wide. The The Devine Institute
marketing plan is developed to ensure value for money to our
customers that create brand loyalty.
Profitability
The Devine Institute is based on three business units; skills
development, academic training and learnerships which will at all
time complement each other in ensuring profitability and growth.
Controlling costs and managing budgets in accordance with Institutional
goals, adhering to strategic business plans for growth and expansion and
reinvesting in the business and its employees.

7.2 External (Business Environment) Factors

The Devine Institute feels that the following basic external factors
contribute to its own success. These are:
Legislation:
The Devine Institute expands its scope of education and training in an
interesting era; the era of scarce and critical skills lacking in the South
Africa followed by the government promulgation of the Skills Development
Act and Skills Development Levies Act to enable skills development to
take place. The era in which The Devine Institute expands itself is a
conducive environment for the provision of skills development services.
The Skills Development Act makes it compulsory for employers to
develop the skills of its employees and, Skills Development Levies
Act makes development possible by providing funding. The Devine
Institute as a skills development services provider is a beneficiary of
skills development funds.
Socio-Economic Factors
Crime rate: - South Africa has been classified as having the highest
level of crime. The companies, government institutions, regional
(provincial) government offices, NGOs, communities, individual
18

households etc are looking at measures to intensify the fight against

crime. Skills development services will always be critical for fighting
against crime.
Government Focus:- Focus such as poverty alleviation, human
resources development, crime eradication, migration of skills,
agenizing etc are crucial influencing factors that need to be
considered in bridging the gap.

Composition
The education and training landscape is populated by traditional
education and training providers. They do pose a threat by the mere
fact that they have long standing reputation of providing broad
range of educational programmes. The Devine Institute counters
this by bringing in the Ozone Concepts as a strategic partner. Ozone
Concepts have been the forefront of education and training and with
this experience and reputation, our partnership with Ozone
Concepts will ensure that The Devine Institute enjoy the same
reputation and quality standards.

To further counter competition The Devine Institute will introduce an

innovative way of bringing education to the community by creating
contact centres in every major university, public college and major cities
in reputable conference centres. The contact sessions will be attended at
the learners convenience thus ensuring that the learner study while
he/she still remain economically active by holding a full time or part-time
job. Our close engagement with the Sector Education and Training
Authorities (SETAs) will ensure that The Devine Institute becomes one of
the leading suppliers of government in academic and skills development
programmes.
8.0 SERVICES
In our range of products, the following services are included:
Academic Training
Full Time Tuition day-to-day contact sessions at a contact center;

Block Release (part-time) programmes 3 hours once a week

session either on Tuesday or Saturday;
Correspondence plus correspondence training with once a month
contact session at a contact centre at the nearest university, college
or conference facility.
On-site training workshops;
Learnership provision;
Recognition of prior learning;
Community development projects

8.1 Description of Services

Our services are tailored to target the following markets;

Academic market: - learners seeking to enter or advance in a
career from Certificate, - for this learner, training is specially tailored
to suit, affordability, availability and convenience without
compromising quality.
Corporate Organisations: - given their mandatory requirements
for skills development, The Devine Institute work hand in hand with
the clients to help develop training programmes that meet a clients
corporate needs while still maintaining the set SAQA standards with
regards to unit standards and qualifications.
Government: - through SETAs, The Devine Institute positions itself
as one of the leading service providers in skills development and
learnerships.
Community: our community development drive seeks to address
such skills necessary in keeping communities skilled while creating
employment.
Our services target a wide spectrum of users ranging from out of school
learners, employees wishing to further their studies and experience but do
not have formal qualifications.

8.2 Education Services

Contact Tuition: The Devine Institute will offer a broad range of
vocational and occupationally focused programmes at certificates,
20

skills programmes and short courses. Learners who enroll for

contact tuition will attend classes on a day-to-day basis according to
the schedule of the institute. This kind of tuition is targeted at those
learners who are beginning their careers.
Part-time Tuition: This kind of tuition is targeted at those learners
who are within the reach of the institute and can only be able to
attend classes after office hours or on Saturdays (weekends).
Correspondence plus: This kind of tuition is targeted at those
learners who are not within the reach of the institute. This includes
learners outside Gauteng; an interactive e-learning system will be
used for the delivery of programmes.
8.3 On-site training workshops
The Skills Development Act makes it compulsory for employers to train
their staff. Some employers have training facilities and would prefer to
procure the services of a skills development provider to provide services
at their workplace. The Devine Institute will provide on-site training
workshops to cater for the needs of the employers.
8.4 Learnerships provision
SETAs are funded by means of a Skills levy, which is deducted from each
employer registered with the respective SETA. In terms of this Skills
Development Levy Act, levy revenues collected by the South African
Revenue Services (SARS) must be deposited in the National Revenue Fund
and 80% thereof must be distributed to each SETA in proportion to the
amounts paid by every employer to each SETA. The other 20% of levies
must be paid out from the National Skills Fund (NSF).
Of the 80% of the funds distributed to the SETAs, 20% of that amount is
used to fund learnerships. The Devine Institute will partner as a skills
development services provider with employer companies that want to
implement learnerships for their employees.
8.5 Recognition of Prior Learning
The Devine Institute acknowledges that people have in various ways
throughout life learned skills such as in jobs, hobbies or by attending
courses. In the process people have gained knowledge, skills and

competencies in a number of fields of study or subject areas in both

formal and informal learning settings.
The Devine Institute will provide RPL services to recognise the skills and
knowledge that people have as a result of learning through work
experience, life experience, informal study, short courses and formal
study.
The Devine Institute will therefore compare the competencies that people
have already learned from experience, education and life experience with
the learning outcomes that a study programme would teach you.
8.6 Community Development Projects
The 20% of levies allocated to the National Skills Fund (NSF) can be
accessed through the provision of meaningful and sizeable skills
development projects. The Devine Institute will implement projects that
qualify for funding at the NSF.
9.0 MARKET ANALYSIS SUMMARY
The market analysis of The Devine Institute is informed by Sector Skills
Plan (SSP) of the MICT SETA. An SSP is a record of research findings, and
the information contained in the SSP is guided by stakeholder needs. The
SSP reflects the details on scare and critical skills within respective
workplaces. A clear identification of scarcer and critical skills and
occupations means that the SETA can be focused in addressing skills and
occupations that are in short supply. The supply of skills by the SETAs is
done through skills development providers such as The Devine Institute.
The Devine Institute has a unique offering of service that appeal to a large
customer base. The business concept of The Devine Institute allows it to
target country wide market through contact nationwide. The following
sections outline key information regarding the target markets.
9.1 Market Segmentation

The Devine Institute has a focus of meeting the South African community
need for skill development services. Learners will be taken on flexibly on
full-time, part-time or correspondence plus basis.

22

Contact Tuition: The institute will establish a significantly large fulltime

regular client base in order to establish the healthy, consistent revenue
base which will ensure stability of the business.
Part-time Tuition: Another large segment of the institutes business will
be in the after hours part time market. This market would largely consist
of employed people who want to further their studies. This client base will
provide a higher profit for the institute since most of them are employed
and would be in a better position to afford tuition fees within the required
time frame. Some may have utilized study support available at their
places of employment.
Correspondence plus: another large segment of the institutes business
will be in the correspondence plus market. This market would largely
consist of both the employed and unemployed individuals who are not
within the convenient reach of the institute.
Employers: Another large segment of the institutes business will be the
employer market.
9.2 Market Needs

The sector which The Devine Institute targets express their skills
development needs in the Workplace Skills Plans (WSP) that are submitted
at the SETAs. Based on the information analysed from the WSPs the SETAs
will then develop a Sector Skills Plan. As stated above, the SSP reflects the
details on scarce and critical skills within respective workplaces. A clear
identification of scarce and critical skills and occupations means that the
SETA can be focused in addressing skills and occupations that are in short
supply. The supply of skills by the SETAs is done through skills
development providers such as The Devine Institute.
10.0 COMPETITION AND BUYING PATTERNS
Price, customer service, certification and reputation are critical success
factors in the skills development services industry. The Devine Institute
will compete well in our market by offering competitive prices, highquality skills development services, and leading-edge educational
programmes through highly qualified facilitators who have solid field
experience in their fields, and by maintaining an excellent reputation with
parents and the community in which we serve.

The Skills Development Act and Skills Development Levies Act are the two
(2) pieces of legislation that makes skills development possible.
Employers are required to submit Workplace Skills Plans to the respective
SETA and implement the planned training in order to receive portion of
skills development levy. It is factors like these, including Employment
Equity Act that drive the potential customers of The Devine Institutes to
spend.

10.1 Main competitors

PC Training
Strength:
Large institution, already established in market;
Weakness: traditional distance education tuition which leads to
High drop out rate, and not preferable by customers.
10.1.2 Damelin
Strength: Extensive advertising drive
Weakness: Too many of their programmes are not accredited
10.1.3 Intec College
Strength: Their association with SETAs
Weakness: Traditional distances education tuition which leads to
high drop out rate, and not preferable by customers.
10.1.4 Boston City Campus
Strength: Large institution, already established in the market
Weakness: their prices are too high and cannot be afforded by the
majority of the target market.

Before 2006 the Private FET college sector was not regulated and this has
resulted in the mushrooming of colleges offering poor quality learning
programmes that do not lead to credible certification. This plethora of
colleges in the vicinity of The Devine Institute offers indirect competition;
however, our pricing, customer service, certification and reputation are
critical in making us successful. The recent implementation of the Further
Education and Training College Act of 2006 by the Department of
Education will clear the unscrupulous colleges which will be advantageous
for The Devine Institute.

10.2 Competitive Edge

24

We start with a critical competitive edge; there are a few competitors in

our market that are offering our concept, i.e. provision of quality
education and training programmes through full time contact sessions,
block release sessions, term workshops and e-learning combined offered
by experience and highly qualified industry experts.
The Devine Institute combines unparalleled quality with a cost-effective
package to create a skills development service with many competitive
advantages. The right management team is integral, and must have a
strong foundation in marketing, management, finance, and education and
training services development. The Devine Institute is confident in its
team, and where necessary close collaboration with other businesses will
be made to ensure that the skills of the management team are
supplemented. We provide this range of services to anyone from a large
corporation to an individual on the street. Clients can always count on
quick, accurate services from The Devine Institute.
11.0 MARKET STRATEGY
Marketing in the skills development industry depends on reputation and
referral. The Devine Institute has established itself as a brand associated
with quality tuition for Information Technology (IT) related learning
programmes. The Devine Institute will establish a client base from the
nine (9) provinces of South Africa. It is on this premise that The Devine
Institute will in future seek to expand its scope of education and training
provision to include a broad range of IT programmes.

11.1 Positioning Statement

For individuals who value the importance of further education, The Devine
Institute offers a great alternative to tradition education and training
tuition. Unlike those programmes, The Devine Institute combines a
diversity of tuition methods to suit every individual.

11.2 Pricing Strategy

The Devine Institute must charge appropriately for the high-end, highquality educational and skills development services we offer. Our revenue
structure has to support our cost structure, so the salaries we pay to
assure quality services must be balanced by the revenue we charge.
We will be price competitive in the market we serve; however, we will not
subscribe to the low price leader concept. The quality of our service will
support the price we charge.

11.3 Promotion Strategy

We will continue to depend on client referrals, community exposure and

direct mail campaigns as our main way to reach new clients. As we
change strategies, however, we need to change the way we promote
ourselves.

Advertising - We will be using direct mail campaigns, preenrollment drives, and local community newspapers advertising to
launch our initial campaign.
Sales Brochure Our programmes are classified as scarce by the
SETAs, and accreditation of our programmes will help sell the
institute to prospective clients.
Direct Approach - We will approach the Human Resources
personnel of the target market to alert them of our programmes and
register ourselves as potential service providers on their databases.
Community involvement - We will be active in the communities
that we supporting selected community uplifting projects.
Provisional Representatives - The Devine Institute will recruit a
representative on a short term contract basis to distribute
advertising materials in their respective provinces to ensure that
brand awareness of The Devine Institute remains revived to the
target market.
12.0 SALES STRATEGY

26

The Devine Institute will sell its services and offerings, separating itself
from tradition college-only offerings. We will be a one-stop shop for skills
development services, advanced learning and specialized programme
offerings. We will also be active in the community, building a solid
reputation with community through our community development projects.

12.1 Sales Forecast

Course Enrolled for

2014

2015

2016

2017

Full-Time Tuition

40

60

150

250

Part-Time Tuition

15

25

30

50

Total

55

85

180

300

Full-Time Tuition

20

50

60

80

Part-Time Tuition

10

15

30

50

Total

30

65

90

130

85

150

270

430

FULL QUALIFICATIONS

SKILLS
PROGRAMMES

GRAND TOTAL

Estimated number of registered students per course in a year

The annual sales projections are included here in the following table

2014

2015

2016

2017

Full-Time Tuition

R7000

R7840

R8780

R9840

Part-Time Tuition

R6500

R7280

R8155

R9135

Full-Time Tuition

R3500

R3920

R4390

R4920

Part-Time Tuition

R3000

R3360

R3765

R4215

FULL QUALIFICATIONS

SKILLS PROGRAMMES

Estimated courses chargeable with 12% annual increase

Course Fees

Course Fees
Collectable

2014

2015

2016

2017

Full-Time Tuition

R 280,000

R 470,400

R 1,318,350

R
2,460,000

Part-Time Tuition

R 97,500

R 182,000

R 244,650

R 456,750

Total

R 377,500

R 652,400

R 1,563,000

R
2,916,750

Full-Time Tuition

R 70,000

R 196,000

R 263,400

R 393,600

Part-Time Tuition

R 30,000

R 50,400

R 112,950

R 210,750

TOTAL

R 100,000

R 246,400

R 376,350

R 604,350

R 477,500

R 898,800

R 1,939,350

R
3,521,100

1. FULL
QUALIFICATIONS

2. SKILLS
PROGRAMMES

GRAND TOTAL

28

Projected sales per course per year

Projected Course Fee Collectable

The Devine Institute is expecting to increase sales modestly in 2015 and

2016, with sales growth accelerating in 2017 and 2018. It is the
expectation that the institute will double its starting sales within five
years.

Note an assumption is made that full installments are paid by all learners
for 12 months (i.e. R650 x 12) excluding the first deposit payment at an
average figure of R1500.00 per learner.

13.0 IMPORTANT ASSUMPTIONS

Taxation has been estimated at the current rate of 29% of taxable
earnings. However, the institute will qualify as a Small Business
Enterprise as defined in the Companies Act of South Africa, which will see
the institute paying 0% tax on the first R43 000.00 taxable income, 10%
on the next R257 000.00 and 29% of any income above R300 000.00