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Economics live projects

On
Coaching Centre

Submitted By:

GOPALA SINGHAL (18BSP4141)


MANISHA MEHTA (18BSP1709)
HARDIK BAJAJ (18BSP4023)
YATIN GUMBER (18BSP2165)
AYUSH JAIN (18BSP2264)

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INDEX
S

S.No. TOPIC Page No.

1. OBJECTIVE OF STUDY 3

2. OPERATIONS STRATEGY 3

3. MARKET POTENTIAL 4

4. DEMAND 5-8

5. MARKET DEMAND 8-9

6. DISTRIBUTION CHANNEL 10-11

7. PRICING STRUCTURE 11-13

8. COMPENSATION 14

9. SELLING STRUCTURE 15

10. TIME QUESTIONAIR 16-18

11. CAREER QUESTIONAIR 18-20

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WHO ARE WE ?
Career institute is an educational enterprise with multidimensional activities.
Established in 2009, Career is in the services of student community for making their dream into
reality through proper counseling and guidance step by step. Our only goal is to satisfy students by
helping them achieve success in life

Objectives of study

 Provide quality education for all


 To help the students climb the corporate ladder by applying theory into practice
 To increase the spectrum of education
 To be ranked as the number 1 educational institute in the city.

OPERATIONS STRATEGY

Companies and organizations making products and delivering, be it for profit or not for
profit rely on a handful of processes to get their products manufactured properly and
delivered on time. Each of the process acts as an operation for the company. To the company
this is essential. That is why managers find operations management more appealing.
Operations strategy is to provide an overall direction that serves the framework for carrying
out all the organization’s functions.

Steps:

 Selecting a location
 Coming out with new course imp. For students
 Selecting experienced teachers
 Institute performance.

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Corporate Strategy
It is said that during a gold rush, the biggest fortunes are made not by the gold-diggers, but by the
shovel and spade suppliers. Now take the business of competitive entrance exams for professional
courses, CAT, JEE and PMT, for example.

Here, the gold-diggers are the students, of whom only one in a few hundred is likely to hit pay dirt
and gain access into an IIT, an IIM or the AIIMS. The suppliers though, institutes like Apex Tutors ,
Career Institute , Crystal Coaching Center , Educomp Leap that are tutoring the gold diggers , are
raking it in and fast shedding the cotton industry-like tag of ‘ Coaching Classes’ .

The key strategies followed by Coaching centers now-a-days is as follows :

• To maintain cordial relationships with the schools and colleges


• They recruit students from premier management schools. One of the strategy is to get right
kind people who share the same dreams.
• Technology at their company focuses on two points i.e. to improve academics and help
business run efficiently.
• No compromises on the promise to deliver. The result : they have confident people with one
goal – improving the quality of education.

Market Potential

Overall

The rising middle class , the desire to stay ahead in the global economy, and the falling quality of
mainstream education system mean that examination-oriented coaching classes have taken over the
life of most school-going children in India and other countries.
According to the report Shadow Private Supplementary Tutoring and its Implications for policy
makers in Asia , released by the Asian development bank , in India is whopping 60 % of primary
school children and up to 83% students in high schools receive private tutoring.
Shadow Education is a widely used term for private tutoring , as it mimics the mainstream and
modifies itself according to the conventional system.
Talking about the private coaching industry in India, the report said “ Nationally 2017 market
survey of companies offering coaching estimated the size of the sector as 35.7 Million people and

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predicted an annual growth of 15% over the subsequent four years and the aim of Government is to
raise its current gross enrollment ratio to 30% by 2020.
The report notes that in year 2016-17 the student living in both rural and urban India paid an average
of Rs. 14566 to 23490 a year of private coaching classes.

Crash Course

Summer is not the time for vacations for the aspirants of higher education.
With increasing competition for admission in colleges and higher education institutions , students of
class 9th to 12th are spending their summer hitting the books with various Crash Course being
offered by Coaching Centers.
Parents are conscious of the fact that summer time is the best time for the student to learn new skills.
Many parents have even dropped their vacations plan to give time to their kids so that they do justice
to these summer program.
“ Students are keen to learn new things and masters the shortcuts and techniques in Verbal Aptitude .
Analytical Aptitude , Numerical Ability , Media , Art which in turn help them giving options in
career in future. They are also able to hone their skills in the form of communication skills ,
presentation skills , how to excel in group discussion/case studies , how to master interviews and
positive body language”.

Demand
In economics, demand is the quantities of a commodity or a service that people are willing and able
to buy at various prices, over a given period of time.
 Demand can be defined at the amount of a commodity that can be purchased at a particular
price during a particular period of time.
 Demand is a desire backed by willingness and ability to pay. For Example: a beggar’s desire
to travel by air is a pure desire because he possess neither the willingness nor the ability to
pay for it. On the contrary a businessman’s desire to travel by air is demand because he
possess both the willingness as well as the ability to pay for it.

Determinants of Demand :
 Price of the product and Price of the related product :

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There are 2 types of goods :
1. Complementary Goods
2. Substitute Goods

Substitute goods have positive cross price elasticity, while complementary goods have negative
cross price elasticity.
Complementary Goods: In economics, a complementary goods or complement is a goods with a
negative cross elasticity of demand, in contrast to a substitute goods. This means a good's demand is
increased when the price of another goods is decreased. Conversely, the demand for a goods is
decreased when the price of another goods is increased.
Examples: Pen and Paper, Bread and butter.
So in case of Coaching Centre’s, there are study materials, good experienced teachers, Computer
Labs.
Study Material: if price of study material is less and quality is good then the demand for that study
material and for enrollment for that particular institute will increases and vice versa

Substitute Goods : Substitutes are those goods which satisfy the same kind of demand, hence they
can be used in place of one another . Thus, when the prices of substitutes rise, the demand for the
commodity in question also rises and vice versa.

Examples: Tea and Coffee –Thus, the price of tea increases then demand of coffee increases.

In Case of Coaching Centre’s: Byju’s, home tutors, Online Sources,


People instead of going to these particular institutes they prefer these substitute. For example if price
of coaching centres increase then the demand of online sources will increases.
 Disposable Income of the consumer :
When the income increases, his demand increases , hence, there is a direct relationship
between income and demand. But this may not be always true.
What is 'Disposable Income'

Disposable income, also known as disposable personal income (DPI), is the amount of money that
households have available for spending and saving after income taxes have been accounted for.
Disposable personal income is often monitored as one of the many key economic indicators used to
gauge the overall state of the economy.

Disposable personal income= Personal Income- Personal Income Taxes Payments.

 Expectations related to future prices


If the prices are expected to fall in future ,demand will fall in the present but rise in future.
But if the prices are expectedto rise in future, demand will rise in present.

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In case of coaching centres , if there is rise in fees of T.I.M.E Institute then there will
increase in demand of Career Launcher.

 Individual Demand
Individual demand is the demand for a commodity by an individual consumer at a various
prices over a specific period of time. For e.g. Ramesh buys one kg. of mango when the price
is Rs 20/kg and his demand keeps on increasing to 2, 4 and 7 kgs. As the price falls to Rs
15,10 and 5. This is shown with the help of a demand schedule and demand curve.

Price Qty.
(Rs) (kg)
20 1
15 2
10 4
5 7

25

20

15
Price (Rs)

10 Qty. (kg)

0
1 2 3 4

7
Qty. (kg)
8
7
6
5
4
Qty. (kg)
3
2
1
0
1 2 3 4

Market Demand :
Market demand describes the demand for a given product and who wants to purchase it. This is
determined by how willing consumers are to spend a certain price on a particular good or service.
As market demand increases, so does price. When the demand decreases, price will go down as well.
Market Demand shows the quantities of a commodity which all consumers will buy at all possible
prices in a particular period of time. In order to understand the market demand, we need a market
demand schedule which shows the quantities of commodity which all consumers in a market will
buy at different price. When individual demand schedules are added together, we get a market
demand. In order to keep on exploration simple, we assume that the market comprises of 3
Consumers A, B, & C whose individual demand schedule are given below in a single tabular
presentation:

Price/ kg Demand of Demand of Demand of Market Demand of


(Mangoes) 'A' in kegs 'B' in Kegs C in Kegs A+B+C IN Kegs
15 1 2 3 6
14 2 3 4 9
13 3 4 5 12
12 4 5 6 15
11 5 6 7 18

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16

14

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10 Price/ kg (Mangoes)

8 Demand of 'A' in kgs


Demand of 'B' in Kgs
6
Demand of C in Kgs
4

0
1 2 3 4 5

Same in the case of Coaching Centres , as we have taken into consideration of 2 regions of Gurgaon
i.e. Old Gurgaon and New Gurgaon.
So we have observed that there is increase in demand and competition in old Gurgaon as there are
many coaching center’s like Career Launcher, T.I.M.E., Career Institute.

Fees Demand Demand Demand


(Russ) (Career (T.I.M.E) (Career
Launcher) Institute)
50000 280 350 329
30000 450 516 489
20000 520 625 645

Factors for Rise in Demand in Coaching Centres


 Expenditure on education, lucrative business opportunities.
 Rise in number of students opting for higher education and foreign education.
 Increase in Parents Disposable Income.
 Right to Educational Act.

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A shift to the right in the demand curve can occur for a number of reasons:

Increase in demand for higher education, foreign education: Increase in number of students
opting for higher education has also led to enhanced demand for these classes. With rising number of
students looking at foreign shores for higher education, cracking entrance tests at such universities,
translate into rise in demand.
Disposable Income : An increase in disposable income enabling consumers to be able to afford
more goods. Higher income could occur for a variety of reasons, such as higher wages and
lower taxes.

Quality: An increase in the quality of the good e.g. experience tutor has more demand of
customers than the new one.
Better quality digital cameras encourage people to buy one.

Region wise distribution of coaching Centres in Gurgaon.


Region is distributed as Old Gurgaon and new Gurgaon. Old Gurgaon consists of areas such as
Sector 7 ,Sector 7 extension ,Sector 10, Sector 8. New Gurgaon consists of area such as DLF Cyber
City, cyber hub, Udyog Vihar ,Maruti Vihar.
Coaching centres names in Old Gurgaon - motion coaching institute, Aryan Institute,Sunstar
coaching.
Coaching centres names in new Gurgaon - Career institute,Konark institute,Millennial Coaching
Center.
Subjects taken are similar for both regions- Math, Accounts,Physics, Chemistry.
Factors affecting the demand of coaching centres in old Gurgaon.
• Competition- There is cut throat competition between coaching centers in these regions due
to presence of them in large numbers. Demand is only subject to some preferred centers.consumers
have choice to choose.
• Experience - consumers want experience coaching centers for service, making it difficult for
weaker coaching centers to sustain.As supply of service is of different varieties, the demand by
consumer is of experienced centers.
• Budget - consumer usually have limited budget with them which affect their reach and
decrease the demand of coaching centers.
Factors affecting the demand of coaching centres in New Gurgaon.
• Lack of competition - There are less numbers of coaching centers in new gurgaon.
consumers have less choice to choose between the coaching centers. The demand of consumers for
coaching centers is high in the region.

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• Private coaching - consumers in the region also preferr private tutors for their child who can
come to their place to teach their child.Coaching Centers face indirect competition from them.There
demand is also hampered by the supply of private tutors.
• Disposable income - consumers in these region have more disposable income with them as
both the parent of child is employed.They want the best of service with best of quality.
Shift and movement along the demand curve
A change in demand refers to a shift in the demand curve, which occurs when a determinant other
than price changes.It occurs when consumers shift it's demand of coaching centers due to
inexperience of tutors, locality in which coaching center is situated.It will mostly occur in the
coaching centers ,in the New gurgaon.

A change in quantity demanded refers to a movement along a demand curve, which occurs when
there is change in price.Due to limited budget with consumers in old gurgaon, consumer will shift
there demand between coaching centers , if coaching centers increase there price.

Price structure of coaching centers


Coaching centers in old gurgaon had to consider certain factors such as income of consumer, number
of consumer in particular area,age group of students, number of competitors in particular
area,expenses of center such as rent,electricity bill,other expenses etc.

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Coaching centers in New gurgaon had to consider factors such as region in which it is situated(means
if coaching center is in the region where people have more disposable income with them, they can
charge more price for the service), competition in the area, if consumers rely more on private tutors
or not,expenses such as rent in dlf area is particularly higher as compared to areas in old gurgaon
so,price structure is higher in these areas.

PRICING
Pricing in old Gurgaon is around 900-1200 per subject.Range of price is subject to experience of
tutors.
Price in New Gurgaon is around 1100- 1500.Price may not be the issue for them as consumers are
ready to give as much as centers want only on condition of service provided by them.

PRICE ELASTICITY IN THE REGION.


Price in the old Gurgaon is elastic , due to presence of large number of coaching centers across the
area.They are substitute for each other .If any one coaching center increase its price, it would lead to
decrease in the demand by greater margin , than increase in price.Consumers have limited budget,
considering the experience of all tutors are same,the consumer would like to go to the center where it
cost less.
Price in new gurgaon is inelastic i.e,increase in price leads to decrease in quantity demanded by a
lesser percentage than a percentage increase in price. If coaching centers increases the price ,
consumers may only shift to other coaching centers for better service .Consumers are not affected
much by the increase in price because they have more disposable income with them. They only want
is quality of service.

INCOME ELASTICITY OF DEMAND


Income elastic of demand means percentage change in the quantity demanded to the percentage
change in the income of the consumer.For a normal good, IED>0 ,ie the quantity demanded increases
with income. Most goods are normal goods.For inferior goods, IED<0, ie the quantity demanded
decreases with income . Income elasticity of demand is higher in New gurgaon as compared to
coaching centers in Old gurgaon.As the income of consumer increase in New gurgaon , they look for
better service of coaching center. It increases the demand of better experienced coaching center in
the area.Consumer ,with the increase in income also look better private tutors who can come to their
house for coaching.

SALES REVENUE OF COACHING CENTERS


The total sales revenue earned from selling a particular good at a particular price is equal to price
times quantity,ie:

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TR = P * Q

Elasticity of demand and sales revenue


If PED >1, then an increase in price leads to a larger percentage fall in quantity demanded and total
revenue is reduced.For eg,if coaching centers increase there price, the quantity demanded will fall by
larger percentage thus leading to decrease in total revenue. This is the case of coaching centres in the
old Gurgaon region.As consumers have limited budget with them.
If PED <1, then an increase in price leads to smaller percentage falls in quantity demanded and so
total revenue is increased. For eg, if coaching centers increase price leads to smaller percentage fall
in quantity demanded , total revenue will increase.This is the case of coaching centers in New
gurgaon region.As consumers have high amount of disposable income with them.

Cross - price elasticity of demand (CPED)


The cross price elasticity of demand measures the sensitivity of the quantity demanded of one good
to a change in the price of another good.It is defined as:
=%change in quantity demanded of Good X
%change in price of Good Y
As substitute goods are alternatives to each other eg, coaching center X and coaching center Y, they
tend to have positive cross Price elasticity of demand.If Aryan institute increase it's price for service
as consumer have low budget, it would lead to increase in the demand of Sunstar coaching institute,
given the experience of tutors of both the institution are same.
As Complimentary goods are jointly consumed,eg coaching center service and tutors experience,
they tend to have negative cross Price elasticity of demand.If Konark institute tutors experience is
less as compared to the quality of service provided by the institute, it would lead to decrease in
demand of institute.As both goods are jointly consumed

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COMPENSATION

 On bringing new students for the institute the employees who are there in the marketing
department will get incentive based on it. For example: if a student pays 15,000 the employee
will get 5% of it i.e. 750 per student.

 For faculties on the basis of their performance we will give reward like best faculty of the
month to motivate them and to improve their performance.

 We will also give reward to the best employee of the year and along with that we will offer
him a free holiday trip.

 We will give our employees festive gifts like sweets and chocolates so that they feel that
they are an important part of our organization and that will encourage them to be more
responsible and committed towards their job .

 We will organize picnic or party once in a year for the teachers as well as for the students
because that will act some kind of refreshment for they and it will also help to bridge the gap
between the teachers as well as the students.

WHO ARE WE?

 Educational Enterprise

 Established in 2009

 Belongs to service sector

 Services given to students to achieve their success through proper counseling


And guidance

 Aimed at enhancing the quality of education

 Aimed of being among the top educational institutes

WHO ARE OUR CUSTOMERS?

 College students
 Working people

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 IT Professionals
 ITES
 Housewives

SELLING
For selling any good and services we should be knowing about our product and service. As we
basically deals with service so we know that if we don‘t sell our self or advertise or market, how are
we going to have a business? There are different types of selling which we will be Appling like:-
Personnel channel
 Face –to –face interactions:- we will be having face to face interacting and try to sell our
products
 Telephone conversations:- we will be doing calls or sms to our customer for selling our
service Communicating through E mail:- like now a days email are also being done so we
will be sending mails to our customers.

Non personal channel


All electronic media
 Television:-we will be giving ads on local channels as well as in news channels
 Radio:- we will be tying up FM channels like radio mirchi or big fm.
 Internet:-we will be promoting through Facebook or LinkedIn
 Print Media:-We will be giving ads in The Telegraph and Times of India Out door
advertisements
 Hoardings:- hoarding outside school, colleges, coffee shops, internet café
 Banners:- In front of colleges and offices.
 Sales promotion:- giving coupons, contests, early bird offer
 Events and experiences:-we will be tie up educational fairs and we can also organize
educational events at Kala mandir.
 Direct marketing and Interactive Marketing:-mail ,telephone ,emails

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T.I.M.E.

NAME:
ADREESS:

.What is the batch size of each class?


a) Less than 40
b) More than 40
c) Less than 100
d) More than 100

. Who is the best competitor in the education field?


a) Learn 4 exams
b) Frontier institute
c) Get success point
d) Career launcher

Do you have doubt remedial classes after the main classes are over?
a) Yes
b) No
c) On student demand
d) Sometimes not often

What is the fees structure for different classes?


a) For six months 55000
b) For one year 70000
c) For two years 60000
d) For three years 45000

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. What is the assistance that you give to the parents so that they get timely report of the
performance of their child’s
a) Intranet portal of parent’s students and faculty
b) Attendance report
c) Direct contact with parents
d) All of the above

Do you give scholarships to the deserving ones?


a) Yes
b) No

what are the revision strategies that you follow?


a) Extra classes are arranged
b) Mock test are been held
c) Hand outs are given
d) All of the above

What is the minimum qualification of the facilities who are there in the coaching centres?
a) Post graduate
b) Ph.D. Scholar
c) Having any good hold in a specific specialization
d) All of the above

What are the best things that you are offering that other coachings are not offering to the
students?
a) Scholarships
b) 100% selection
c) Better education
d) Best self-development skill
e) All of the above

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CAREER

NAME:
ADREESS:

.What is the batch size of each class?


a) Less than 40
b) More than 40
c) Less than 100
d) More than 100

. Who is the best competitor in the education field?


a) Learn 4 exams
b) Frontier institute
c) Get success point
d) T.I.M.E

Do you have doubt remedial classes after the main classes are over?
a) Yes
b) No
c) On student demand
d) Sometimes not often

What is the fees structure for different classes?


a) For six months 55000
b) For one year 70000
c) For two years 60000
d) For three years 45000

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. What is the assistance that you give to the parents so that they get timely report of the
performance of their child’s
a) Intranet portal of parent’s students and faculty
b) Attendance report
c) Direct contact with parents
d) All of the above

Do you give scholarships to the deserving ones?


a) Yes
b) No

what are the revision strategies that you follow?


a) Extra classes are arranged
b) Mock test are been held
c) Hand outs are given
d) All of the above

What is the minimum qualification of the facilities who are there in the coaching centres?
a) Post graduate
b) Ph.D. Scholar
c) Having any good hold in a specific specialization
d) All of the above

What are the best things that you are offering that other coachings are not offering to the
students?
a) Scholarships
b) 100% selection
c) Better education
d) Best self-development skill
e) All of the above

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