Where Kids Love To
Learn
A Strategy Proposal
by
Team Outliers
Sai Bharath Abhishek
Krishna Chaudhary
IIM Ranchi’24 DoMS, IIT Madras’24
sai.bharathkrishna22 abhishekchaudhary002
@iimranchi.ac.in @gmail.com
Company Overview
History
Started in 2020, La Petite is a part of 5+ centers spread across 2 cities and has nurtured over 1000+
children. La Petite also has a successful virtual learning program launched to adapt to the covid situation.
Unique Selling
Proposition
Reggio Emilia approach, which is a student centered and constructivist self-guided curriculum that
uses self-directed, experiential learning in relationship-driven environments.
Facilities
o Art studio, gymnasium, Library, Outdoor play areas, Music Studio, sports facility, Organic kitchen garden.
o Well-kept campus & spacious air-conditioned classrooms.
o Healthy balanced meal.
Programme o Parent - Toddler program (9 Month - 18 month) 2020- 2022+
o Play Group (8 Month - 2.5 Years)
s
Offered
o Nursery (2.5 Years - 3.5 Years) 125
o Total growth
in%
Kinder Garden (3.5 Years- 5.5 Years)
profits
Love – Empathy – Integrity – Excellence – Respect - Grit
Business Strategy
How should the pre-school be expanded to five tier-1 cities? What should be
the strategy? What will be the program plan of expansion for the next 12
months?
Problem Marketing & Branding
Statement What will be the marketing and branding strategies for the next one year after
launch and expansion.
Financial Projection
What will be the financial projection for the next one-year considering
expansion.
Market Analysis
The Indian education system is experiencing a rapid paradigm change with the introduction of
student centered self-guided curriculum and experiential learning approaches.
Rise in number
of nuclear families
12 $3480
% Increasing disposable Growth
Rise in number of
M
income Factors working women
Increasing parent Value of India Pre-School
Expected CAGR 2021-
awareness Market
2026
Post Covid
Impacts
33% parents expressed concern over the effectiveness of online learning
36% parents were worried about the long-term psychological impact of online learning on their children
Hybrid emerges as the most preferred learning model
Fragmented
Competitors Market
several players
Who are we
targeting?
The Quintessential Millennial Parent
Location
Personal Data
Age : 25 - 40
Education : Graduation
Marital Status : Married
Income Range : ₹70,000+
Parenting Style
o Focus on the child’s innate interests and strengths.
o Attempts to raise emotionally intelligent kids.
o Understands and tries to teach love, empathy and kindness
Business Expansion Approach
Company Owned Company Operated (COCO)
In COCO Model the company owns and operates the business at a location
The school Will be
expanded into five of better suited for expansion to major cities.
the top tier 1 cities.
Namely-
• Better success rate.
1. Bangalore • Provides a base for further expansion in the state.
2. Chennai
• Ensure consistency in operations.
3. Mumbai
4. Ahmedabad • Easier to training and innovation part.
5. New Delhi
• business decisions align with the goals and vision of the company.
July - Sep April - June Dec - Feb March - April
Expansion to Expansion to Admission
Mumbai & Expansion to
Bangalore & Process starts.
Ahmedabad Delhi
Chennai
Expansion process to a city in detail
1) Finding suitable areas using criteria defined in site selection. (slide 7).
2) Surveys to understand the need and wants of parents, demographic, Median wealth &
competition in the area.
3) Applying for licenses and permissions required.
4) Evaluating site for remodeling plan & repair.
5) Executing remodeling & repair plan & arranging water, sewage, and electricity.
6) local hiring of teachers for training and transfer of knowledge at head branch.
7) Assessing the supplies, equipment & furniture needed.
8) Furnishing the classes, library, labs & play area.
9) Final touch-up and starting parent-student session as part of marketing strategy.
*Expansion plan to Bangalore & Chennai. Expansion to rest of cities will follow same process.
Multiple factors are taken into consideration to identify
Existing buildings,
Location parking spaces and the site in a city. These factors will be fed into an
roads. evaluation sheet for an objective selection of the sites.
Site Selection Each of the factors are assigned a separate weightage
& depending upon importance in site selection.
Evaluation • Location : 50%
Flow of pedestrian Current competition in
• Flow of pedestrians : 15%
and traffic near the the area. • Flow of traffic : 15%
site. • Parking space : 10%
• Current competition in the area : 10%
Location Parking Space Flow of pedestrian Flow of traffic Competition Final Score
4 5 4 5 5 4.35 For example, site location in a city is
A
3 5 4 5 4 3.75
evaluated against the factors taken into
B
5 4 5 4 5 4.75
consideration. From the given evaluation
C
sheet, it is evident that site C is the best
D 4 4 4 3 4 3.85
choice.
E 4 4 3 5 4 4
*weighted score has been taken with minimum score of 5 for consideration of expansion.
*Assuming resources such as electricity, gas, water, sewage and internet facilities are available in tier-1 cities
Human Resources
Hiring local qualified
personnel from Hiring
expansion location.
Training and
Training socialization at
established branch..
Transferring
knowledge, skills, Transfer
culture & vision for the
future.
Incentivising
Incentive performance of
employees.
5 4
5 Principal 5 Vice Principal Teachers Other Staff
0 0
*Hiring for all 5 branches
Critical Success Factors
Quality of
Parent Curriculu Positive
education
satisfactio m Cash Flow
&
n Develop
Facilities
ment
Leaders Customer
Fostering
hip Acquisition
Employee
Effective
Commitment
ness
KPIs for Teachers
Designing Learning Knowledge and Understanding
Parent Reviews Teacher Attendance
Experiences for Children of Subject Matter
KPIs for Management
Customer Satisfaction and
Employee Satisfaction Rating Total Revenue Net Profit Margin
retention
Branding & Engagement Channels
Engagement Channels
Where Kids Love To
Learn
The improvised logo including the tag-line links to the business directly. Also, research supports
that introducing a brand mascot influences the decision making of the customers.
How to improve engagement with parents whose students
are enrolled
Create Facebook groups Host monthly open Personalised E-mails
for each class where days and events where tracking student
activities and photos of parents and students progress and activities
each day are shared can join sessions once in two weeks
together
How to ensure lead generation?
Website Redesign
• Optimize website and reduce response time to 200ms to 1 second
• Follow a mobile-first design approach incorporating parallax scrolling
• Admissions page and lead generation should not take more than 2-3 clicks from the homepage.
• Include social proofs as testimonials and videos
Search Engine Optimisation and Search Engine Marketing
• Front-load the main keyword in title tag, and keep the description and content unique.
• Cross link blogs to internal and external webpages to build authority of the website
• Focus on long-tail keywords like “nursery schools in Bangalore” rather than “nursery schools”
• Create separate Google Ads campaigns for each city incorporating city names in titles
Social Media
• Build a community of parents on social media platforms focusing on primary education and parenting
• Provide a 10 page E-book on the importance of experiential learning during early education as a content
offer to generate leads
• Content strategy should focus on video format and educational posts.
Social Media Strategy
Objective
To build a community of parents of children aged 9 months to 6 years old focused on education and parenting
Content Creation
The content will focus on educational content for parents on the topics of primary education and parenting. Two streams of content
creation is to be practiced – Video and Posters
1. Videos are to be created in a format where a narrator explains the topic for 5-10 minutes with the help of infographics in the
video. The same video can be split into sub-points and made into multiple short format videos ranging 15-20 seconds.
2. Posters are to be created on the relevant topic, with each topic consisting of 5 sub-points and each slide containing the
explanation of a topic.
Long and short format videos can be released on YouTube, Instagram and Facebook. Posters can be released on Instagram and
Facebook.
Separate content is to be created for targeted advertisements, inviting them to the website to understand how parents play an
important part in students education, that leads to a content offer within the website and thus lead generation.
Frequency
Content on social media channels will be posted with a frequency of 2 posts a week in the initial 6 months of launch.
Data shows an increase in interest on “school admissions” begin during the month of November until the first week of
April. An increase in budget on social media content creation (up to 4 posts/week) and targeted advertisements will be
pursued during this 6 months.
Examples of how the social media profile
would look like in 12 months compared to
competitors
Competitors La Petite in 12
months
Capital Expenditure (CapEx) & Means of Finance
CapEx Amortization Of Loan
Head Amount Loan Term in
Loan or Debt Amount
Leasehold Improvements 6,00,000 Rate Months
Equipment 82,00,000 Commercial Loan 2,18,10,000 10% 60
Furniture and Fixtures 70,00,000
Rent Deposits 5,60,000 Repayment Opening Loan Interest Capital
Utility Deposits 10,00,000 Number Balance Repayment Charged Repaid
Licenses 8,00,000 Year 1 1,84,98,697 54,30,386 18,15,291 36,15,094
Vehicles 30,00,000 Year 2 1,45,73,918 54,30,386 14,76,170 39,54,215
Other Fixed Asset Purchases 6,50,000 Year 3 1,02,80,967 54,30,386 11,05,238 43,25,148
2,18,10,000
Year 4 55,85,308 54,30,386 6,99,509 47,30,877
Means Of Finance Year 5 8,94,983 54,30,386 2,55,720 51,74,666
38%
Promoter Contribution 4 Cr 2.18 Cr 0.36 Cr
62% Commercial Loan 2.18 Cr
CapEx CPLTD
*Recurring expenses of salaries will be covered from admission & quarterly fees.
Academic Fee & Payroll
Operating Expenditure (OpEx) Academic Fee
*All 5 branches *Per Centre
Admission
Head OpEx Batch
Fee Annual Total
Service Other Fees
Rent 5,40,000 Tuition Fee Revenue
Strength (One Time)
Prepaid Expenses (Insurance, etc.) 1,20,000
Legal and Accounting Fees 2,30,000 Parent Toddler 100 2,000 2,00,000
Supplies 4,00,000 Play Group 60 12,000 55,200 12,000 47,52,000
Advertising and Promotions 2,00,000 Nursery 60 12,000 57,600 12,000 48,96,000
Kinder Garden 60 12,000 62,400 12,000 51,84,000
Other Start-Up Costs 2,42,000
Interest Payment 18,15,291
Admission Fee & 1st quarter fee will be used for
Salaries & Incentives 5,74,00,000 Salaries & Incentives.
6,09,47,291
2.73 Cr
Salaries & Incentives
*Per Centre
6 Cr 9 7 Cr 51
Employee Number of Monthly Benefits/ Estimated Estimated 10 Lakh
Types persons Pay Incentives Pay/Year (Total) Pay/Year (Total) Lakh Lakh
Teachers 10 55,000 10,000 6,70,000 67,00,000
Reven Working
Principal 1 72,000 15,000 8,79,000 8,79,000
OpEx Capital
Vice Principal 1 65,000
1 50,000
12,000 7,92,000 7,92,000 ue Loan
Administrator 6,00,000 6,00,000
* All 5 branches * All 5 branches * Contingency fund For Cash
Others 7 30,000 3,60,000 25,20,000 Flow Mismatch
Profitability
Profitability = Revenue – Expenditure – Current Portion of Long Term Debt (CPLTD) - Depreciation
7.51 6.09 0.17
0.36 Cr
Cr
Revenue
- Cr
Expenditu - - Cr
Depreciatio
re CPLTD n
*Depreciation on Fixed Assets @ 8%
89
Lakh
Profit
*Before Taxes
Future Projections (Year 2)
Academic Fee *20% Increase in Batch strength Operating Expenditure (OpEx)
Batch Admission Head OpEx
Fee Annual
Other Total Total Monthly Rent 5,40,000
Service Tuition
(One Fee
Fees Revenue Prepaid Expenses (Insurance, etc.) 1,20,000
Strength
Time) Legal and Accounting Fees 2,30,000
Supplies 4,00,000
Parent Toddler 100 2,000 2,00,000 Advertising and Promotions 2,00,000
Salaries & Incentives 6,30,00,000
Play Group 72 12,000 57,200 12,000 58,46,400
Interest Payment 14,76,170
Nursery 72 12,000 59,600 12,000 60,19,200 7,29,66,170
Kinder Garden 72 12,000 64,400 12,000 63,64,800
1,84,30,400
7.29 0.16
9.2 Cr 0.39 Cr
Revenue
- Cr
Expenditu - - Cr
Depreciatio
re CPLTD n
*Depreciation on Fixed Assets @ 8%
*24% increase in revenue * 19% increase in OpEx
1.36
Cr
Profit
*Before Taxes
References
• Indian Pre-School/Childcare Market Report, IMARC Group
• ‘Schooling in the time of pandemic’ survey by Centre for Innovation & Entrepreneurship at the Indian School of
Business
• Future of Learning Study 2022 : HP India
• Psychological Impact of a Brand Mascot in Customer’s Purchase Decision :Deepak Kochhar, Pavitar Parkash
Singh
• Google Trends
• Parent Engagement in Schools : American Psychological Association
