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PRINCIPLES OF MARKETING

BUSINESS PLAN
FINAL PROJECT

TUTHOME™ HOME TUTORS

HINAA MARYAM
SONIA MALIK
NAUFIL SIDIQUE

A detailed and concise business plan and action strategy on a hypothetical


business venture aimed at providing educational home services.
TABLE OF CONTENTS:

SR. NO. SECTION PAGE NO.


1 Executive Summary 1
2 Introduction 1
 Idea 1
 Inception 1
 Reason 1
3 Situational Analysis 2
 Market Review 2
 Service Review 3
 Competitor Review 3
4 Market Description 4
 Segmentation & Target Market 4
 Positioning Matrix 5
5 Service Application Preview 6
6 Service Development 6
Service Specifics 7
7 Platform Design 7
8 Service Analysis 8
 SWOT 8
 PEST 9
9 Service Particulars 10
 Objectives 10
 Customer Strategies 10
 Marketing mix 11
 Action Programs 12
10 Service Perception 13
 Image 13
 Promotions 13
 Advertisements 13
 Public Relations 13
11 Pricing & Budget Control 14
12 Appendix 15
Executive Summary:
This business plan is developed for an educational based tuition service that will securely
connect students and tutors across an online interactive real time platform and provide
convenience to its dedicated users.
This report will cover the service development stages from its inception to its proposed
benefits, marketing strategies, market requirements, customer demands, a marketing audit,
a plan of action and lastly a brief look at financials including breakeven.
As per the requirements of the marketing plan, a competitor review will be conducted to
evaluate a comparison of the idea we propose and how it is better than the services offered
by the competitors in the market.
Additionally, the presentation of the service image and the advertisements that go with it
will be developed as well. Public relations will form a major component in this business
idea’s implementation and commercialization.

Introduction:
Idea:
A platform designed to register students and teachers, verify their accounts, and use an
online medium to broadcast their requirements for tutoring, and meeting the needs of
these students by home tutoring services.

Inception:
The existing conveyance application Careem allows individuals to register with it through a
validation procedure and allows the end user to broadcast their location for pick and drop
services. The ride is charged by time travelled (as detected by the phone’s accelerometer) in
conveyance in real time and the charges are payable by cash, account and credit card.
This concept has been used to develop a new product/service that will help students across
a geographic domicile to broadcast their tuition requirements and tutors can respond to
these broadcasts, allowing students to select a tutor based on their available credentials
which the app will provide for the student’s benefit. For the tutor’s benefit, the student’s
educational information will be available to the tutor once the student’s request is
accepted.

Reason:
According to market research, major households are combined upper class families that
have a tradition of enrolling their children in tuition centers, the conveyance for which is
sometimes an issue as is the availability of capable home tutors. And many parents in
working class families often do not find time for pick and drop services for their children.
Often students have to manage their conveyance on their own which may be risky in a
socially unstable environment such as Karachi. Most of these students are within the junior
grades to intermediate range and after all collateral in the case of any mishaps.

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The dilemma is also for home tutors especially who have to manage conveyance to reach a
student of whom they have no idea until they meet and the tutor – student evaluation
begins. In case of a tutor being hassled by a student’s misdemeanor, there is rarely any
chance of refunds and capital is lost. Tutors at tuition centers are more progressive in their
teaching methods but how can they reach the student that may have some social
restrictions as to studying after hours.
On the topic of gender, male teachers have greater transparency in the conducting of their
tuition appointments than females, who prefer to teach from their homes in accordance
with societal norms and security issues. Only a niche percentage of women tutors were
found to be teaching after hours at tuition centers.
However, the biggest issue that still remains, the questions in the customer’s mind, are the
ones that we addressed:
• What are we buying?
• Is it verified by source?
• Is it reliable?
• What is the consumer benefit by what perception?

So, this service will provide a pre-existing service as a re-launched product made available
by online platform within the reach of your homes with verification and validity of the tutor
provided by registration.

Service name:
By unanimous agreement, the name decided for this service is ‘Tuthome™’. Pronounced as
‘tew-thome’ which is an amalgam of ‘tute’ (an abbreviation of tutorial according to Oxford
dictionary) and ‘home’, which is the objective of where we will be providing our service at.

Situational Analysis:
This section covers the current marketing environment in which our new service will be
operating, executing expansion and acquiring loyal customers, so it is essential that threats
be analyzed and appropriate measures be taken.

 Market Review:
Our service will be initializing in the Defence Housing Society region. This area of the city is
renowned for its institutions and hence students have a high demand for tuitions and
remedial supplements to assist them through their course work which on average ranges
from junior classes till intermediate, Edexcel, I.B. and A levels.
Currently the market review is on aggressive competition between tuition centers which
makes it easier for us to commercialize our operations because our service targets home
tuitions.

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The market perspective on home tuitions is considered too time consuming and it is
preferred for the tutors to attract students to centers so a wider range of students can be
taught. This leaves a small percentage of willing tutors of required competency to do home
tuitions. But this is a disadvantage to far living students who are not in the reach of a proper
coaching center or a competent tutor.
Our service will be providing to a market demand for home tutors who provide convenience
to student and their parents as well in terms of security and reach. Students will be provided
the services at their door step.

 Service Review:
The services provided by our potential competitors are no doubt very dominant in the
market, but the service we offer is unique as it ensures end to end security of user and end
customer. The services provided in the market are education assistance at reasonable prices
but the inconvenience is for far living students. Investment has to be made by the customer
to reach the premises on time and it is often hectic for the student to be on time. Often,
tutors are from respectable schools who tutor after hours in tuition centers and they use
unfair means of not teaching in schools and profit off at tuition centers.
An educational institution by the name of Nixor has therefore banned their teaching staff
from tutoring at any after school institutions so their teaching staff can focus on the
students on premises, and this is a good strategy to keep quality education and student
attention and development at school and college.
Our service will have none of these inconveniences as it is online based and tutors will be
signing up on their own free will and will be ranked accordingly for the student’s
convenience.

 Competitor Review:
Below is a list of rated based tuition centers spread throughout Karachi that are
reputationally available in the market and some even procure home tutors for students.

1. Anees Hussain
2. Home tutors
3. Edge Learning
4. Sir Wajahat Home Tutor Academy
5. Adam Jee Tution Centre
6. S.N.S. Tution Centre
7. Raheel Rajwani Tution Centre
8. Advance Collegiate
9. Evolve Tution Centre
10. Meritorious Education Centre
11. Maniya's Coaching Center

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The thing about these institutions is that they are dominating the market because other
alternatives are not sought too much. Home tuitions are usually expensive and our market
research revealed to us that customers have a lack of respect and seriousness towards
home tutors and are often uncooperative. Likewise tutors are not serious either and the end
user is not satisfied with the service quality provided.

Anees Hussain is our biggest competitor in this respect. Even though our idea is online
platform oriented but the crowd satidfaction, the customer loyalty, reputation and market
penetration of Anees Hussain is much far spread.

Our competitor has had time to build its worth and brand name in the market and has
generated immense customer satisfaction across Karachi by helping students attain
guaranteed grades. And this is their biggest strengths.

Market Description:
This section covers the particulars of how we at Tuthome™ will select and segment our
potential customer bases, target what types of customers that need catering to and how we
have to encourage tutors to sign up. Additionally, we will cover how our brand name needs
to be positioned so we can achieve optimal exposure.

Segmentation & Target Market:


The current segments that we have identified for targeting are:

 Geographic Segmentation:
Our potential customers are located across the urban areas of Karachi but our immediate
focus is Defence Housing Authority that comprises of a multitude of households that are
rated high as oriented with the quality education of their children.

 Demographic Segmentation:
Our demographic focus goes two ways, one is the middle class and upper class families with
sufficient income who have children studying, ranging from Grades 1 through Grades 10 and
higher as per the respective educational boards till FSc or Cambridge Examinations. Other is
qualified tutors with the proper authentic accreditations who can be recruited to provide
tuitions. It is necessary that these tutors be belonging to a social strata where they can
manage their own conveyance without inconvenience and we shall be looking into that as a
registration pre-requisite.

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 Behavioral Segmentation:
The aim of our service is to provide the user ultimate satisfaction and their money’s worth
and appropriate exposure. Seeing as we are acting middle men for both provider and client,
we have to focus on the tutor’s contentment with the revenue they earn, and the
satisfaction of the student’s guardians with the respective grades earned.
The environment of DHA is full of people eager to experiment new trends and ideas so there
is a high usage rate of newly introduced products and services. And the benefits we provide
as Tuthome™ are ultimate provider-customer user satisfaction.

 Psychographic Segmentation:
Our focus requires analysis of what kind of tutors and students we have to target as per
their psychological preferences. Our provider has to be motivated to teach and instill
educational concepts in aspiring students. And our customers are the students who aspire
to have stronger knowledge backgrounds and have the educational competency to pursue a
career.

Positioning Matrix:
Our service is a premium offering to the middle class and upper class clients on the end user
side. And for the tutors it is an opportunity to be officially recognized for their educational
worth in teaching students. As per the targeted market, we have to focus on procuring both
potential tutors as well as the two related variable of pricing and quality.

Stability
Achieved

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A: this is our initial stage of testing and commercialization. Our services will have to offer
quality at the usual market rates of tuition centers. Our major investment is in the tutors
and their credentials that will attract students. Market testing will prove fruitful.

B: the next stage will be an expansion of services as more users register onto our database.
A healthy ratio of student and tutors would be aimed for. Investment and revenue would
still not be enough for a breakeven balance but expansion will generate demand to acquire
revenue in the stabilization stage.

C: the stability stage is achieving breakeven. Our quality and relevant charges will go up and
so will the customer satisfaction and expansive customer acquisition.

Service Application Preview:


The service will be developed as an application for android platforms. A membership
registration and fee will be required as a part of our customer acquisition and retention
strategy for this premium service. Students and tutors sign up alike and submit their
educational credentials on a profile application form. Once the application is executed, the
interface will require GPS location to function and tutors can broadcast their location that
will show up on a vicinity map with respective tutor ratings for the student’s (end user)
convenience. The student has the ability to send a request to a suitable tutor in the
immediate vicinity, which when accepted by the tutor, will provide the tutor with the
student’s educational profile.
The student will be provided by the tutor’s contact number and then the student/client can
discuss the subject that needs tutoring, the days, timings and the rates that Tuthome™ has
designed in the financials section.
The tutor will then manage their conveyance to the student’s home and initiate lessons.
Upon completion of a tuition session, the student can rate a tutor and then upgrade their
educational grading status. Likewise the tutor can rate the student on their competency and
this will be confidential for our service’s response statistics in the Tuthome™ database.

Service Development:
Before commercializing it is important that Tuthome™ acquires credible tutors into their
data base as a service startup. The recruitment particulars will be further discussed in the
advertising section but tender notices, workshop conventions, sponsorship events, online
advertising and posters will be utilized to reach out to the public and encourage potential
tutors to apply for registration.

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Tutors registering to the service will have to provide their CV particulars and Tuthome™ will
check into their credentials and establish authenticity based on the qualifications, income,
language and competency by conducting house visits. This effort is to establish that
Tuthome™ is a fully secure service for students and tutors alike.
Additionally, an online portal will also be developed to further assist users in access to news
letters, promotions, and supplementary material for a reasonable membership fee.

Service Specifics:
 The premium service will be provided on an advance payment.
 The first two days are demo days for the tutor.
 The student can cancel the tuition if the tutor’s performance is not upto the quality
standards set by Tuthome™ by the end of the demo days.
 On cancellation of the tuition, proceeds will go to Tuthome™ as 15% of the advance pay,
as the tutor managed conveyance and effort on behalf of the service.
 The student can provide monthly payment in the form of cash, credit, or by check. Any
delay in payment will incite a further 5% penalty per day.
 Tutors have the option to negotiate whether they will be present at the client’s premises
or the client is willing to be present at the tutor’s premises. This clause has been
inducted for the benefit of female tutor applicants though it is optional.
 Registered Tuthome™ tutors can choose to broadcast their locations when they are
available for providing services.

Platform Design:
The platform is designed as a GPS location interface and Google Maps amalgamated
together to give a real time presentation of the tutors and students in the vicinity. The
application will be developed and available for download on Google Play Store as a priced
application but with registration fees once the user forms an account.
The accounts are password and privacy protected.
Tutor-student confidentiality will be maintained. However, high achievers tutored by
Tuthome™ will be offered a chance to represent themselves as the face of the brand and
discounts on services.
The feedback from students for tutor performance will be analyzed by the Tuthome™
operations staff and updated regularly on the tutor’s profile.

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Service Analysis:

SWOT Analysis:

Strengths:
 Specialization and focus on one subject area.
 Unique entry barrier, being a new service category in tuition center saturated
market.
 Minimum 12 years tutor experience in education industry, hence understanding of
customer value.
 High quality teaching staff with proven track records.
 Provision of service at reasonable rates with guaranteed quality of service.
 No need to acquire real estate until a later stage.

Weaknesses:
 Weak brand image, relatively unknown, in DHA area.
 Lack of student motivation, satisfaction, and discipline.
 Accreditation of tutors and content.
 Unanticipated legal issues resulting from tutor or client misconduct.
 Risk of client turnover.
 Risk of not finding willing sponsors due to fear of insufficient tutors and students.
 Cost of acquiring customers is high initially.
 High operating costs on start up.

Opportunities:
 Better and reasonably priced remedial education for a range of students.
 Private tuitions are a growing trend and Tuthome™ has added an extra security layer
for customer satisfaction.
 Expansion into other levels of students/subjects
 Connection to a pool of peers who are willing and capable of teaching tuition.
 Home tuitions ensure proper attention to a student’s weak areas and build
reputational confidence on Tuthome™ endorsement.
 Potential to leverage on technology.

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Threats:
 Competition from existing players like Anees Hussain and Inspire.
 Low entry risk.
 Pricing pressure from peer competitors.

PEST Analysis:

Political:
 Educational Policy of Pakistan (2017) promises adult literacy of 75% by 2020 and 86%
by 2025.
 Requirement to be self-financing and managing.
 Changes to curriculum with short lead times across different foreign education
boards.
 Changes to skills provided by a teacher/tutor.

Economic:
 Sponsorship or relevant funding may be subject to government policies and affect
finances.
 Cost of providing service in the form of technology, tutors and supplementary
materials, additionally keeping the online application in operation.
 Shortage of capable home tutors owing to lack of proper exposure.
 The risk of highly valued, key staff tutors moving on to perceived “better” tuition
centers.

Social:
 Local student demographics variance.
 Social networking as a means of promoting brand.
 Changed to qualifications criteria to be expected.
 Availability of relevant technology to society.

Technological:
 Changes to technology required with time. Upgrading application.
 Computers going out of date. Preference of using online app.
 Not everyone may be able to have an android. More application platforms required.

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Service Particulars:
This section will be covering the draft outlook of the Tuthome™ service and the image it
represents as a registered, guaranteed and dedicated provider of home tuition services at
the convenience of the client.

Objectives:
Our organizational objectives are to acquire enough credible tutors and dedicated students
and expand the respective exposure to obtain a worthy app rating. The objectives for
Tuthome™ as an operational service are:

‘To provide quality remedial education at your doorstep with student-tutor confidentiality
and security maintained, all the while delivering the parent with satisfaction, the student
with success, and the tutor with experience’.
The aim of our service is:

‘To attain a credible reputational status as a premium quality home tuition service provider
with strategic plan to dominate and monopolize the market on tuitions.’

Customer Strategies:
These are the initial strategies designed to induce customer interest and investment in our
service. The customer is both tutor and student in this context since Tuthome™ is the
mutual service provider.

 Acquisition:
Customer acquisition is inducted by public relations and advertising campaigns. We will
conduct introductory sessions at various schools and workshops open to public and
advertised across online (Facebook page) and print media (Dawn News) to attract potential
customers in the form of sponsors, teachers and students.

 Satisfaction:
Customer satisfaction on the initial commercialization stage will be provided by the
smoothly operating application which has adaptive interfaces for both student and tutor.
Parents will have the satisfaction of knowing their children are being securely taught in the
safe environments of their homes. The integral promise of good grades and positive
performance in student appraisal that Tuthome™ promises will be the apex feature of our
service.

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 Value:
Customer value is the backbone of Tuthome™. The user demands a product/service worth
their time and money. Our target audience is concerned parents from busy lifestyles and
our target market is the students of such parents. The greatest benefit of respecting
customer values and full filling expectations is the continued and expanding investment as
well as market penetration and probable interdiction to new markets as a validated brand.

 Loyalty:
Ensuring the customer gets what they signed up for in terms of satisfaction and
convenience. Customer loyalty will produce brand evangelists and induce word-of-mouth
promotions for the brand, leading to further attraction of customers on both ends.

 Dealing with Competitors:


Tuthome™ is currently a unique platform for a home tuition service provider. The major
drawback is lack of exposure but as mentioned earlier, our target segment is
psychograpically experimental with regards to new lifestyle conveniences and that may be
our major strength that we can provide secure and validated tutors at home to students
who require a dedicated service.

Marketing Mix:

 Product:
Home tuition service that provides an online platform for student and tutor
interaction and rendezvous for a reasonable fee and guaranteed positive
performance for weak students. Once a member of our service, you are the
Tuthome™ family.

 Price:
Determined by competition, service quality, and initial accreditation/reputation,
mode of education and location of client. Our services are a premium offering hence
there will be some higher costs incurred for the secure provision of tutors at home.
Additionally students can order Tuthome™ themed stationary online at promotional
discounted rates. Our pricing strategy is aimed to encourage tutors and students of
the long term benefits of hiring tutors from our service.

 Promotion:
Posters, promotional discount offer on registration to first few applicants whom can
be either students or tutors. Attractive tagline and enthusiastic theme of the

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application design interface. Speaker sessions and pamphlets distribution. Door to
door awareness advertising. Tuthome™ themed merchandise and stationary.

 Place:
Customers can easily frequent the facebook page of Tuthome™ or download the app
free from Google Play Store. Registration fees apply. We are working on a physical
location, a kind of help desk area franchised by appointed management but our
promotional events will be on institutional premises sponsoring our service.

Action Programs:

Tuhtome™ will be commercialized in January 2018 and has a few action plans and goals to
achieve when integrating its operations into service.

January We will be launching a service promotion campaign across schools and colleges.
Also we will generate a hype about the benefits of hiring home tutors. Our
target will be to attract at least registrations across all of defence and
numbering in thousands.

February We will begin an active internet and print media initiated medium for
advertising Tuthome™ benefits to our target audience of tutor professionals,
qualified tuition candidates and willing students ready to invest. Our main aim
will be to acquire as many customers as possible by spreading awareness of the
ease of usage of our application’s features.

March We plan on extending to TV adverts on local networks and radio channels


regarding our application to reach more audiences and increase the market
covered. Additionally, Tuthome™ will start arrange pick and drop services in
selected areas for the tutor’s conveyance. This benefit to the tutors will incite
their satisfaction and loyalty.

April We will arrange crash course packages for students aiming to excel their exams.
This will be a most beneficial moment for Tuthome™ as a service provider since
student turnover is immensely low.

May A most crucial period since most institutions have exams scheduled and the
demand for tutors for home tutoring is immense due to lacking capacity at over
stocked tuition centers.

June We plan on expansion of our services to other nearby areas of Karachi as


revenue generated allows us to invest in procurement of more qualified and
valuable tutors.

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Service Perception:

 Image:
The image that we have designed for the logo is simple, innovative and sparks with the
radiance of ideas and progress. The monotone colors of Tuthome™ symbolize the dullness
of studying with is then transformed to the brightness in the multi-faceted light bulb with
spells enlightenment, dedication, progress and warmth. The radiating rays of the light bulb
symbolize the propagation of knowledge.

 Promotions:
Offerings of discounts on initialization of business action plan. Incentives will be provided to
student customers to customize their study plans and make convenient arrangement of
premises. Promotions also include free stationary items give away on registration at events
at selected venues.

 Advertisements:
Our advertising department will design informative and seasonal TV adverts in the third
month of our action plan schedule. The adverts will depict application usage, platform,
features, packages, tutor accreditations and Tuthome™’s achieving students.

 Public Relations:
As part of our public relations program that will be further developed by the end of the first
year, our service will expand to accommodate university endorsed tuition personnel at
conventions and workshops. Registered users (students and tutors) will receive bi-yearly
newsletters by mail documenting Tuthome™ progress and results.

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Pricing & Control:

Estimated startup budget: 1 Crore*


*including sponsors and application development estimate

Pricing Strategy:

Classes Pricing Optional Packaging Subjects Board


(Compulsory)
1-5 PKR 6000 - Complete All
6-8 PKR 10,000 - Complete All
9-12 PKR 3000 PKR 5000 1 Subject Per KHI
Subject Board
O-levels PKR 6000 PKR 8,000 1 Subject Per CIE Board
Subject
A-levels PKR 8000 PKR 1 Subject Per subject CIE Board
10,000

For Client required to be present at Tutor’s Residence:

Classes Pricing Optional Packaging Subjects Board


(Compulsory)
1-5 PKR 5000 - Complete All
6-8 PKR 9,000 - Complete All
9-12 PKR 2500 PKR 4000 1 Subject Per KHI
Subject Board
O-levels PKR 5000 PKR 7,000 1 Subject Per CIE Board
Subject
A-levels PKR 7000 PKR 9,000 1 Subject Per subject CIE Board

For Applicant registrations:

Registrations Pricing Promotional Discount Discount Time


Period
Tutor PKR 1500 45% 6 months
Student PKR 500 Free 6 months

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Merchandise:
Items Price Promotional Discount Time
Discount (first Period
1000 students)
Notebooks PKR 250 Free 6 Months
Register PKR 350 Free 6 Months
Pens PKR 25 Free 6 Months
Bags PKR 450 PKR 200 6 Months

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APPENDIX:

 Tagline:

“Education Begins At Home”

 Initial pricing drafts:

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