Roadmap for market

expansion and improved

internal management
strategy for an
education company
Darpan Jain | 19222
Mayank Chauhan | 19239
Shaurya Gupta | 19463
Soham Dutta | 19268
Sucharita Saha | 19270

Forum for Industry Interaction, Indian Institute of Management Ahmedabad

 The higher educational market has grown at a CAGR of 11% that sees
a way forward in the form of adopting a hybrid channel approach
Current Scenario Way forward: Hybrid Channel Approach

Market size of Indian higher education market

$3,100 Bn
Segments: Motivational factors to
§ Formal: Higher educational institutes $2,230 Bn 1 %
GR1 choose online education
§ Informal: Coaching classes, Vocational CA
institutes
Growth Drivers:
§ Rising purchasing power § Classroom learning methodology
2017 2020
§ Growth of services sector § Pricing and value for money
Key barriers to adoption
§ Increased willingness to spend on quality education § Familiarity with online education
of online methodology
§ Regulatory Framework
Informal Segment revisited
Vocational Institutes CAGR 13% Coaching Classes CAGR 13% CAGR 11%
Higher Secondary
Course Key Course
Key Players Pricing PAT % Business Model Pricing PAT % Business Model Key
Offerings players Offerings Course Offerings Pricing PAT % Business Model
players
Variable; Rs. 7.2k Recorded classes + live
Aldine CA CA- All levels 10%* School +
onwards classes Subsciption
College level Live classes + Live classes: Helix
Academy of Recorded classes + live TIME based: Rs. 80k 10%* K-12 curriculum, Variable; 80k
CA, CS, CPT No information 10%* competitive online exams Byju's 10%* Universal Server, Nimble
Commerce classes + online exams onwards IAS, CAT onwards
exams Streamer
Variable; Rs. 8k
EtenCA CA, CIA 10%* Live classes K-12 Live classes: Helix
onwards Variable; 80k
Byju's curriculum, 10%* Universal Server, Khan K-12 curriculum, Web and mobile based
CA, CMA, CS, Recorded classes + live onwards Free of charge -
IGP Institute Rs. 7k onwards 10%* IAS, CAT Nimble Streamer Academy SATs platform
B. Com classes
*Source:
CARE Ratings Report, KPMG Google Report, https://www.ambiguousit.com/blog/byju-business-model/

Forum for Industry Interaction, Indian Institute of Management Ahmedabad

Major Organizational Functions
Reporting Department Credentials/Skills Evaluation/Appraisal Criteria
Level

• Working knowledge of digital marketing tools • Digital marketing parameters (click per ad, converts per
Brand Marketing (business analytics/intelligence, SEO) ad, search engine visibility, website traffic volume)

• Recent graduates with relevant domain • Student feedback on content

Top Level
Content Creation knowledge • Parameters- relevance, concept clarity, concept depth

• Recent graduates with computers/coding • Number of bugs, outages and helpline calls
Technical Team
background • App rating and feedback

• Subject matter expertise, functional • Student feedback, batch performance

Faculty
communication skills

• Experienced faculty with strong communication • Number of counselling workshops, occupancy rate, city-
Counselling
skills wide enrolment
City Level • Experience in education sector • Number of faculty recruited with reviews above a
HR (Faculty) • Experience with pay-scale reviews, performance threshold
appraisals, documentation • Faculty churn rate, Employee Survey results

• Graduates/Experienced professionals well versed • Deviations from budget

Finance
in handling accounts, taxation • Cost of Funds
• Metric pass, strong communication skills • Number of institutions contacted, enrollment volume,
Sales
conversion rate
Centre Level • Basic graduation, coordination of center-wide • Peer review from other departments
Admin/Operations operations, scheduling, infrastructure
arrangement

Forum for Industry Interaction, Indian Institute of Management Ahmedabad

 Implementing an integrated strategy across customer lifestyle stages
would lead to successful customer attraction and retention
Customer Lifecycle
Discovery Subscription Engagement

Internet Search Study Material Quality Accessibility

Major Factors

Peers Parents Field Specialization Tutors Bundling Query Resolution

Advertisement Advertisement Downloadable Content

Existing Strategies

• Cross-selling products (course with

• Cold calling (Parent targeting) • Hire popular tutors
mock-test package)
• Referral Program (Peer-pressure) • Highlight star teachers
• Online doubt sessions
• Targeted ads, highlighting achievers • Comparative result reporting (e.g.-
• Buddy programs
• School tie-ups (PTMs) “Highest number of rank holders”)
• Pen-drives and tabs for on-the-go content
• Search Engine Optimization • Outsourcing study material curation
availability

• Provision of trail lectures (preferably for • Contract popular (YouTube celebs) on a • Seamless integration of testing and
difficult topics) for better feel lecture basis, for financial feasibility course material (sectional tests)
Suggestions

• Provide tangible benefit statistics (e.g.- • Leverage analytics to build on course • Leverage analytics to identify common
Commute time saved) content (e.g.- highlight important topics doubts. Create videos to address these
• Gamification of the course (peer effect) based on student interaction times) • Multi-platform user-friendly apps
• Highlight improvement in average • Predictive question paper (question • Mental health counselling for dealing
scores, not only extreme achievements types) feature using machine learning with stress

Traditional institutes employ these strategies in parts. Robust strategy implementation across the stages would lead to successful customer attraction and retention.

Forum for Industry Interaction, Indian Institute of Management Ahmedabad Most Imp. Least Imp.
 Among the several digital models that exist in the market, a Subscription-
based, Outsourced, Online Recorded Media model can be a good way to start
Digitization in the market Proposed way forward for the firm

Mkt Size (in USD millions)

Text based + Recorded Media (online)
1960
52
% Start by developing a website that has concise notes & downloadable mocks
GR Slowly transition to a recorded media based platform with pre recorded video
247 CA
lectures and mock solutions

2016 2021P

§ Online education market to grow @52% TO 1.96 billion USD by 2021 Subscription-based services
§ Online test prep market to grow at the fastest pace @64% to 515
million USD by 2021 The Revenue model can be subscription-based, where the user may have these options:
§ CA coaching to be the sub sector with largest movement to online Only Online packages: full course, selected courses, only doubt-solving, or only mocks
Online + Offline packages: Full online support with offline classes
Online models prevalent in the market
Basic website with Recorded audio Live lectures by
Outsource tech/Use Coaching class software
Recorded Media

Live Interaction
Text based

org. info and video lectures faculty

FAQs, Notes and Interactive, pre- Real time doubt Content to be developed in-house, technology to be outsourced or managed via
mocks (in PDF recorded solutions solving sessions coaching class software. This will save costs and give better results.
format), Q&A and for mocks Live, one to one A mobile app can be developed and maintained via outsourcing in the future, as it’ll
discussion forum guidance enable on-the-go learning
*Source:

Forum for Industry Interaction, Indian Institute of Management Ahmedabad

 The Team

Name Darpan Jain Mayank Chauhan Shaurya Gupta Soham Dutta Sucharita Saha
Bachelors of B.Tech
Educational B.Tech. (Chemical B.E. (Hons.)
Management Studies (Mechanical M.A. Economics
Background (Finance)
Engineering)
Engineering)
Computer Science

Shaheed Sukhdev
St. Stephen’s
College of Business Delhi Technological
Alma Mater IIT Kanpur BITS Pilani College, Delhi
Studies, Delhi University
School of Economics
University
Bain & Company, Accenture Strategy, Tata Administrative Bain & Company, Bank of America,
Internship firm
Consultant India Business Services Consultant Equity Research

Forum for Industry Interaction, Indian Institute of Management Ahmedabad