The competition in the early childhood education industry is getting tougher with new preschools with various types and innovations on offer. This exploratory research reviews the situation and condition of preschools in Indonesia with a qualitative approach based on case studies. Secondary data collection and interviews with millennial mothers were carried out to support the existing data to analyze the gaps in the marketing strategies used by preschools with expectations in the community. The results of this study indicate that preschools must understand the current needs of their prospective customers, especially millennial mothers who currently have great potential to become their primary target market. The strategy used can depart from the marketing mix analysis, such as optimizing the school's website and social media as a reference communication medium for parents in choosing a preschool for their children.
Early Childhood Education is the first formal educational experience for children so that this phase is extraordinary and essential in their lives. There are many things to consider in the selection of preschool by parents for their children. Cost-benefit is one of the factors of consideration in planning school selection decisions [1]. Several studies indicate that communities can save as much as nine times as much in future costs [2]. One interesting case occurred in neighboring Indonesia, Malaysia. The Malaysian Ministry of Education in 2013 implemented regulations for learning mathematics in English.
Along with this policy, the popularity of preschool in Malaysia is increasing. Parents started to take the initiative to send their children to early childhood in PAUD, which provides English language learning. The existence of private schools with the latest education programs makes preschool a quality education service provider even though the school's image is labeled with high costs. Often consumers believe that the higher the price, the better the quality of a product or service. Some parents also want their children to be and socialize in the same group regarding social status [3]. Some preschools even invest in advertising to attract the attention of potential parents as potential users of their services.
Reporting from expat.or.id, in big cities in Indonesia, there are many choices of preschools for children. From informal playgroups to international standard preschools with children from different countries. There is also a Moms and Tots program for children aged 1-2 years preparing to enter the preschool program. Preschools also provide extracurricular activities, including physical play, music, art, and other social opportunities for children.
One of the main concerns in preschool education in Indonesia is the language of instruction. Meanwhile, the majority of international preschools claim to carry out their activities in English or a mixture of other languages according to the students' nationality at the school. To enter preschool in Indonesia, parents will pay fees ranging from hundreds of thousands to millions of rupiah per month. As for international preschools, parents are required to pay starting from 6,000 USD per year or around 7 million rupiahs per month as the minimum price [4].
The development of the type of preschool in Indonesia makes the competition in this industry very tight. Preschools must plan the right strategy to ensure the quota is filled every year. Suitable marketing activities will help preschools survive amid fierce competition between preschools in Indonesia. However, research and reviews on preschool marketing strategies are still rarely discussed in the scientific scope. Most studies on preschool in Indonesia are still limited to curriculum and pedagogy development. This study discusses the analysis of marketing strategies for preschools in Indonesia.
Literature Review
Dybina [5] states that several preschool marketing activities need attention. The objects of these marketing activities include developing children's personalities, the quality of educational programs, pedagogical technology, and the latest types or innovations regarding educational services. In the school industry, such as preschool, the school should also prepare a marketing mix plan that will be used. The marketing mix is a strategy to combine marketing activities to bring maximum satisfaction to customers [6].
Research conducted by Ishmuradova et al. [7] stated that Education services are more focused on service fees related to advertising. Most Educational institutions want to provide information on the high-quality teaching staff. This study also considers that future promotional activities for Education services are highly dependent on social networks. Some school advertisements emphasize their competitive advantage in advertisements that inform about training programs, fees, HR qualifications, and other unique offers. Meanwhile, from the customer side, the higher the satisfaction, both from parents and students to the school depending on the school's location, school schedule, children's developmental results after attending class, and the teacher's behavior towards students.
With the development of technology, preschools must also accept the challenge of bringing a new product to market. According to the preferences of young parents, the new products here must be displayed on the internet because their generation is very close to technology. The presence of reviews and comments from real users plays a vital role because it influences parents' decision to choose preschool [7]. As a means of promotion and communication, preschools should have an official website as their primary resource [5]. Analysis of school websites usually finds several weaknesses, including:
No feedback from the school to website visitors,
A low number of website visitors,
Web design that is too old-fashioned and unattractive
As potential customers for school services, preschools must consider the decision factors made by families. Families will develop varying perspectives on program quality and use various indicators to assess how good a program is Barbarin et al. [8]. Families believe that the quality referred to here is the role of schools as principal caregivers and the first educators for their children [9]. Jalongo et al. [10] defined seven dimensions of the quality of children's education based on the Association for Childhood Education International, namely, (a) the philosophy and objectives of the program; (b) high-quality physical environment; (c) pedagogy and curriculum with appropriate and effective development; (d) good attention to primary and special needs; (e) respecting family and community; (f) professionally prepared teachers and staff; and (g) rigorous program evaluation.
As exploratory research, this paper develops a marketing strategy based on observations and case studies at preschool institutions in Indonesia. Rather than formal hypothesis testing, the remainder of the paper examines the marketing strategy in developing countries. The author uses a qualitative approach by conducting a case study. Qualitative case study methodology enables researchers to explore phenomena in-depth with specific contexts [11]. We make contact and interact with several preschool institutions in Indonesia. To support the report of this case study, the author also collects secondary data via the internet and interviews with ten millennial mothers as potential preschool customers. Interviews were conducted to understand the decisions of millennial mothers in choosing preschool so that the needs of these mothers could be matched with field conditions observed by researchers during the field study.
If categorized from existing trends, the types of preschools in Indonesia are divided into international preschools and Indonesian preschools. Non-profit organizations or individuals generally own international preschools as businesses. Although not all preschools have an immediately recognizable branding, this school's curriculum, facilities, and training are of international standard. International preschools entering Indonesia are also often under the franchise business of preschools in other countries. Several preschools with international franchise status follow American, British, Australian, or other international standards of education philosophy. Their prices are generally higher than local schools because they have to pay a foreign currency franchise fee.
Although they have the advantage of a defined curriculum and assistance in selecting educational toys, materials, and facilities, this category of schools still has to find the best qualified human resources. Parents decide to choose this type of school because it pursues the advantages of increasing children's opportunities to understand other people and cultures. Although the regulations of the Ministry of Education of the Republic of Indonesia do not allow the use of the word 'international' in naming, it does not mean that the standards of this school are not able to compete globally.
Unlike international preschool, Indonesian preschool is early childhood education that has permission from the Ministry of Education and Culture to follow the standard curriculum that the Ministry sets. These schools are attended mainly by Indonesian children, and teaching is conducted in Indonesian. Due to the limited facilities available and the need to follow the official curriculum, there is little time or emphasis on creative play and freedom of exploration for children.
Preschool Issues in Indonesia
The Number of PAUD in Indonesia Reaches 160,000 Units: Coordinating Minister for Human Development and Culture Muhadjir Effendy said that during President Joko Widodo (Jokowi), the number of early childhood education schools has increased. Now, the number of preschools in Indonesia is more than 160 thousand. President Jokowi has made a policy so that every village should have a preschool. This policy is important to implement because many children in Indonesia can not reach their early childhood education. To encourage the growth of PAUD schools, the government has provided PAUD Operational Assistance (BOP) for teacher salaries of Rp. 6 trillion per year [12].
Indonesian people's participation in education starting from early childhood to higher education is decreasing
Chairman of HIMPAUDI Netty Herawati told CNNIndonesia.com, Information on new student admissions at PAUD is shallow. Based on the results of the Research on Improving System of Education (RISE) research, it is known that until the end of 2021, the trend of education participation at all levels of education, from Early Childhood Education to Higher Education, experienced a decline in participation rates during the pandemic. Even those who have become students do not continue until they ask for leave [13].
School Fees Are Getting More Expensive For Preschool
Education observer and founder of the Cikal School, Najelaa Shihab, said that it could be adjusted to the ability of parents to send children to kindergarten or preschool. According to her, as an institution that provides educational services, it should prioritize the quality of the people who provide services. Much money is also needed to produce competent resources [14].
Parents' enthusiasm for homeschooling will increase
During the pandemic, many schools carried out their online teaching and learning activities. Many parents were overwhelmed by the procedures and learning systems. This phenomenon increases parents' enthusiasm for homeschooling, as stated by psychologists and several education experts [15].
The release of free preschool
To achieve equal access to education services for all children, the Merdeka Pupils School (SMM) released a Free preschool that provides quality education services equally to children in Indonesia. The forms of services in this free facility include Independent Learning, Learning Outcomes Reports, Live Learning Recordings, and Interactive Games with the 2013 Curriculum (K-13) in the Indonesian education system [16].
The Reggio Emilia Approach method is suitable for preschool
Education practitioner from Semarang, Central Java, Krista Endinda, explained that the method that parents are interested in now is Montessori. This educational approach gives children the freedom to learn through play. According to her, not only Montessori but also other educational philosophies that parents should consider, namely the Reggio Emilia Approach. This approach gives children the opportunity to explore more deeply so that children are much more critical, creative, and independent [16].
Preschool Becomes the Basic Place for Children's Character Education
Building character education for children must begin at the Early Childhood Education (PAUD) level. One of the mothers whose child is in preschool, Elly Farida, conveyed this fact when she was a speaker at the Depok City Education Office's Work Plan (Renja) Forum [17].
The Center Method Helps Develop Children's Multiple Intelligences
There are six principles of early childhood education in the center method [18]. First, education is oriented to the needs of children. Every learning activity must always refer to the goal of meeting the development needs of individual children because each child has differences in both abilities and interests, so teachers and parents must be able to detect and provide the proper support.
Second, the world of children is the world of play. The concept of education for early childhood should be designed in the form of play. For example, children do not have to be taught directly but by playing with the center of the block to learn to count.
Third, learning activities are carefully designed to build work systematics. Here the child is taught to make choices from a series of activities, focus on what is being done and try to finish the work he has started thoroughly.
Fourth, learning activities are oriented to developing children's life skills, namely helping children become independent, disciplined, able to socialize, and have basic skills useful for later life.
Fifth, education is carried out in stages and repeatedly refers to the principles of child development. This principle is beneficial for training children to understand the importance of learning procedures. At a more advanced level, children learn about work procedures.
The sixth principle, in playing activities, children will learn more when they get a foothold (scaffolding) from the teacher. There are four steps to play: the footing in the form of structuring the playing environment, the initial footing for playing, the individual footing gave when children play, and the footing after playing. The center method works to provide stimulation so that students can develop their multiple intelligences well.
Table 1: The Summary Result of Interview with Millennial Moms
Service Attribute | Interview Result |
Distance | "Look for one near the house, so that it is easy to access and the child does not get tired either" -informant 4- |
Class capacity | "In my opinion, class capacity is important as compared to the ratio. I do not know what the ideal is. Only if one teacher can handle children who are capable of being supervised" -informant 5- |
Curriculum | "If it is for preschool, I do not want an academic one" -informant 9- |
Facility | "One of my considerations is whether there are toys or not. Some schools do not exist. I mean, here is a physical toy like a slide, and we will see if the toy is old or still worth it" -informant 8- |
Safety | "Security is a critical consideration. Both the playground and the environment, if possible, all schools consider the presence of a security guard" -informant 7- |
Cleanliness | "The first one has to be clean, especially when it is a pandemic, right?" -informant 3- |
School duration | "I do not prefer a full day. We talk about preschool. It should be enough just playing around" -informant 9- |
Case Study: Field Study on Preschool in Indonesia
The field study conducted by the researcher was conducted at Qurrata Aini, Pertiwi, and Tunas Bangsa. The three preschools are located in Sooko District, Mojokerto Regency, Indonesia. Sooko District itself has a unique geographical character. The location directly adjacent to the City of Mojokerto makes this sub-district has many residential neighborhoods, both old housing and the emergence of dozens of new housings. Sooko Subdistrict is also known to be a reference for excellent schools in Mojokerto Regency. This subdistrict has its stereotype for residents of Mojokerto Regency and its surroundings as a subdistrict with a superior education system. Nevertheless, several new preschools, especially those formed by private foundations, make several preschools in Sooko Subdistrict continue to struggle to maintain their existence as the first education service provider for the children there.
Qurrata Aini, Tunas Bangsa, and Pertiwi also get a few benefits because of their location in the Sooko sub-district area. Qurrata Aini is located in a residential area. Around the school's location, other housing estates are well known to the people in the city. These houses also have a large enough area so that many households live there. Although it is classified as an old housing estate, there are also a lot of young couples living in that location, so the existence of preschool is very much needed as a place for education for children. Pertiwi is not far from the location of Qurrata Aini so that the school can feel some of the benefits of its strategic location. Qurrata Aini is under the auspices of the private Nur Rachman Foundation. However, this Foundation was formed by the former Regent of Mojokerto so that the district government often reviews the activities of Qurrata Aini. Meanwhile, Pertiwi is a preschool directly under the district government, especially the Dharma Wanita Foundation in Sooko sub-district.
Unlike the previous two preschools, Tunas Bangsa is located in the Greater residential area, namely Japan Raya. Japan Raya housing itself is also an old housing estate and has a large enough area. The presence of several new housing estates in the vicinity makes this area a densely populated area; therefore, preschool is also very much needed in that location. Similar to Qurrata Aini, Tunas Bangsa was also established under a private foundation, namely the Al-Muhajirin Islamic Foundation. However, this preschool is also frequently reviewed by the district government.
Even though they are located in a strategic area, this does not make the three preschool places for field studies to be carried out apart from problems. Eka Yuliana, as the Principal of Qurrata Aini School, said that there were several problems faced by PRESCHOOL. These problems include:
Curriculum
Curriculum development is not too much from year to year. This makes many educators at preschool worried about not getting students every year. Not to mention the emergence of preschool with international curriculum embellishments such as Little Camel and Kiddoz, which are located not far from Sooko sub-district, making choices more diverse.
Facilities and infrastructure
the infrastructure in the three preschools are also quite limited. This limited facility is due to limited funds. The fees at these three schools are arguably much cheaper than other preschools such as Little Camel and Kiddoz. Even the Qurrata Aini Foundation founder stated that the preschool was built partly based on charity worship. The monthly tuition paid to PRESCHOOL is often used up for outings outside of school.
Finance
As previously explained, because the monthly fees charged to parents are relatively cheap, these preschools often experience limited funds, so that teachers have to rack their brains so that the facilities and all kinds of activities at preschool can still meet their needs. students and parents
Educators
Because they are often faced with uncertainties in the number of applicants, many educators resign from preschool. With the decision to quit, the remaining teachers find it very difficult to find a replacement. Many prospective educators prefer schools with higher salary offers. Some educators even admit that working as a preschool teacher is part of a hobby and worship. Consequently, a sense of ownership and a desire to develop a better school is still lacking.
The strategic location in the middle of a residential area does not make preschool teachers and administrators feel in their comfort zone every year. Approaching the new school year is always stressful for them because of the uncertainty in the number of prospective students. The uncertainty is based on the number of registrants that fluctuates every year. Sometimes preschool accepts many applicants, but not infrequently, only a handful of applicants, even less than ten prospective students. Suhartono, Secretary of the Mojokerto Regency Village Community Empowerment Service (PMD) and the Foundation's advisory board that oversees Tunas Bangsa argued. He said that many teachers in Tunas Bangsa express their desire to quit every year because they feel desperate not to get students.
Results of interviews with millennial mothers
Researchers also conducted interviews with ten millennial mothers. A residential area is a place to live that has a middle-class to upper-middle-class population. Although some housing in the Sooko sub-district area is old, this does not prevent many young couples from living there. Sooko sub-district is also considered to have a strategic geographical location and good access to education so that not a few young couples choose to build a household there. Millennial mothers dominate young couples. Millennial mothers are mothers born between 1980 and 2002 [19,20]. This year's figures show that in 2021, the millennial generation will be at the age range of 19-41 years, where at that age, many women already have children, even some of their children are already and approaching school age. Thus, these millennial mothers will become the primary potential consumers for schools.
From the interviews with millennial mothers, several factors are the primary considerations in choosing a preschool. These factors are (1) distance, (2) class capacity, (3) curriculum, (4) facilities (included toys variety), (5) safety, (6) cleanliness, and (7) school duration. Table 1 shows the service attributes sought by millennial mothers when choosing a preschool.
One of the exciting findings from this interview is related to price considerations. Although most of the informants did not want the price to be too high for the monthly fee at the preschool level, these millennial mothers did not mind spending some money to get good facilities at their child's school. They still categorize the monthly fee as reasonable if it does not exceed 1 million rupiahs.
"maybe a maximum of 4 to 5 million for the annual fee, but if it is monthly, it is a maximum of 400,000 rupiahs" -informant 3-
"In my opinion, the maximum monthly fee is 200,000 and the base fee, if possible, is a maximum of 2 million" -informant 4-
Case study reporting
Based on the analysis of issues, trends, field studies, and the results of interviews, there are several gaps between the condition of preschool, which is the object of the case study, and the results of other studies. An example is related to one of the marketing mixes, namely price. When we made observations in the field, the school administrators said they were not too brave to charge a monthly fee too high. As a result, the existing facilities and infrastructure in schools are not sufficient for the needs of parents and children. On the other hand, parents do not have a problem paying a certain amount of fees within a specific maximum limit as long as they get the facilities they want for their children. Thus, preschoolers should start considering setting the right pricing strategy. As stated by the informants in the interview results, the price must be reasonably priced, not exceeding 1 million rupiahs for the monthly fee. With the determination of these costs, schools can allocate them to build better facilities and infrastructure.
Although preschools with international standards continue to increase every year, this is, in fact, not taken into consideration by some mothers in Indonesia. There are still many mothers who want their children to play and socialize at the preschool level. However, millennial mothers still hope for an explicit, structured curriculum in preschool. Therefore, related to products in the marketing mix, the institution must prepare carefully and thoroughly.
Another issue is much consideration of service attributes expected by millennial mothers and the uncertainty of the number of students each year faced by preschools. The institution that oversees this preschool should start to create a forum for communicating with their customers, both customers who have used the services or potential customers in the future. One of the media that can be used is to create a website and social media. The school should optimize the website and social media. Therefore, the information to be conveyed can be reached by the public, especially parents, in making decisions.
Globalization makes the competition in the school industry increasingly fierce. This paper aims to analyze marketing strategies that preschools can use in Indonesia from the point of view of problems in the field, secondary data from the internet, and the results of interviews with millennial mothers as potential customers. This study indicates that there is still a gap between the implementation of marketing strategies carried out by preschools and the demands of customer needs. Regardless of the location, preschool must start thinking about a good marketing strategy, such as determining each factor in the marketing mix to attract its target customer in the future.
Acknowledgment
This research is a research grant from the Faculty of Economics, State University of Malang. All funding, from observation activities, literature collection, paper preparation, to the publication process has used the funds from the grant. The authors gratefully thank the Faculty of Economics, Universitas Negeri Malang for financial support.
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