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Gyanshala Project- Institutional

28th November 2012

Group No. 7 Amit Kumar I Mathilde Courtois I Sophie Khne I Martina Goldberger Ishwar Devdutta Saxena I Yogesh Shivani I Vishal Pratap Singh Rathore I Vivek Kumar Jha

Agenda

1 2 3 4 5

Project Objective
Background Research Design Data Analysis Recommendations

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Agenda

1 2 3 4 5

Project Objective
Background Research Design Data Analysis Recommendations

Page 3 | 28th November 2012

Project Objective

To assess whether there is a market at BOP for providing coaching classes to students Size of the market Marketing Mix of the service Product Place Promotion Process People Physical evidence Price Strategy to be adopted in order to tap the market

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Agenda

1 2 3 4 5

Project Objective
Background Research Design Data Analysis Recommendations

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Background: Education in India

Population( 5-19 years) 33.5% of total population 34.7% in rural areas 30.6% in urban areas Attendance in schools Primary Urban Rural 73.8 71.2 Secondary 60.5 47.2

Dropout rates varies between 40-49% depending on the area whether it is urban or rural. Rural area accounts for a higher dropout rate than urban area According to MHRD, another 100000 schools are needed Enrollment rates have increased over the years but attendance rates have not increased significantly by a huge margin Teacher to student ratio is 1:45 at present in India; Developed countries have 1:19

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Agenda

1 2 3 4 5

Project Objective
Background Research Design Data Analysis Recommendations

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Research Design
Interviews with various stakeholders Questionnaire designed with focus on the qualitative aspects Survey Sample: Stakeholders School Teachers running coaching centers Number of Respondents 8

Principals of schools
Parents Students

2
15 20

Teachers running only coaching centers 3 Visited 5 schools in Calcutta where students from our target segment only Visited a tribal area near Jamshedpur where 13 schools are run by Art of Living for the tribal students Assumptions: Families with income between INR 3000 to INR5000 Teachers/school management do not differentiate students on the basis of their family income or background
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Agenda

1 2 3 4 5

Project Objective
Background Research Design Data Analysis Recommendations

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Data Analysis: Market Potential

Number of students in school ( 6th to 12th standard) -98,368

Enrolled student distribution

26% 17% 14%

Distribution of students on the basis of family income in Kolkata Target market size- 25,575 students

23%
20%

Richest Second Middle Fourth Poorest

Out of School
4% 47% The drop out rate for each category 8% 15% 26% Richest Second Middle Fourth Poorest

Very high drop out rate in this category is the major cause of concern
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Data Analysis: Reasons for not attending school / coaching

Attendance Ratio in school : Attendance Ratio in Primary School is 71.9% Attendance Ratio in Middle & Higher Secondary School is 51.2%

Less number of students attending the classes in higher secondary schools Though number of students taking coaching classes increasing 6% 5% 13% 18% 36%

Reasons

Not interested

Cost too much

Required for work School too far Not necessary

Lack of awareness, high cost and family constraints are the 3 main reasons/inhibitors
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Primary Data Analysis: Is there really a market at BoP

Facts
Not many student prefer taking private tuition till 6th standard
6th to 8 standard- only 10% ( primarily very aspirational parents) 8th to 10th standard- 40-50% students (expects better marks/improved performance) Reasons

Parents decision makers, dont feel its required

Few parents with higher aspirations Expects better marks/improved performance of students

10th onwards- 50-60% students ( for at least 1 subject)

At least for 1 subject, feels the need, pressure of boards

So there is definitely a market at the bottom of pyramid

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Data Analysis: Price Points

Price Points
90 80 70 60 50 40 30

20
10 0 0-50 50-100 100-150 150-200 200-250 250-300 300-350 350-400 400+

The price that maximum students/families are willing to pay is INR 200-250/ month Market is very price sensitive, few students expect free education
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Agenda

1 2 3 4 5

Project Objective
Background Research Design Data Analysis Recommendations

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Recommendations
People at BoP also aspire for quality education for their children

Awareness about competitive examinations increasing gradually

High price sensitivity and Lack of quality education at affordable price major inhibitors To overcome these barriers, following recommendations are proposed: Eliminating price sensitivity Improving communication barriers Increasing awareness

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Eliminating Price Sensitivity

Cross Subsidized Model: Adopt a differential pricing mechanism for charging fees Subsidize the tuition cost of poor students from the surplus generated through well-off students Ensure that quality of education can be maintained even at low cost Successfully adopted in some small scale tuition centres

Fully Subsidized / Charity Model: Provide free education to students of BoP using the funds from donation Make use of Government policies for making it cost effective Involve the whole community into it through some program Use activity based learning and make sure quality is maintained

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Thank You!

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