Marketing Management Final Project Submission

Topic: Analysing the PRODUCT STRATEGY implemented in the Education

Technology Sector

Brand: BYJU’S

Division : G

Core MBA, 2020-2022

Submitted by, Group-4

Poorva Mangal - G018

Karan Tulsian - G025
Nishtha Negi - G040
Vivek Rai - G056
Sudeep Bhaskar - G063
Harshil Shah - G066
Ed Tech is the practice of integrating IT into classroom learning to create a more inclusive,
engaging and individualized learning experience.
Ed Tech market of India:
The EdTech Industry of India is worth $700 million at present, which comprises. It is expected to
see a growth of 8X-10X in the next 5 years.One of the major growth influences is Covid-19,
there has been an increase in the inflow of investments, upgradation in offerings and acquisition
and more players quickly shifting and adding students thanks to a historical drop in Internet data
charges. According to Red Seer Forecasts we can expect a $3.5 Billion market by 2022. A
market of $1.7 Billion below K12 and $1.8 Billion after K12.
Byju’s:
Byju Raveendran founded the company Byju, which is currently the world's most valued EdTech
company worth $11.1 Billion in value. It currently has a network of 3 million students strong
with nearly 20,000 classes per day on their platform. It currently has 5000 teachers, it recruits
teachers at nearly a 0.1% acceptance rate. Byju has also shown interest in acquiring tech
companies and incorporating them into its network. Companies like Whitehat Jr (a 2 year old
start up) that designs proprietary coding training for kids was acquired by Byju’s at $ 300
million. LabInApp, a startup that offers lab-like simulations for science students on a mobile app,
was acquired by Byju’s in Sept 2020.

Product Strategy:
In this section we are going to focus on two major products of Byju in the K12 segment.

1. Easy Learn - A Byju-Disney tool

● This product is characterized under an ​Educ-ainment​ service. Combining aspects
of education with entertainment.
● Disney offers the storytelling and character building aspect, whereas Byju builds the
educational foundation for this product.
● It is an efficient way of converting passing learning into active learning by applying game
design theories.
● Apart from interactivity it works on a hidden aspect that game designers have considered for
years. ​‘The theory of flow’​. The theory of flow defines the humans to be in a state of
relentless focus, while performing some activities to achieve a goal, having lost the
perspective of time. E.g. A gamer playing for hours not realising how long it's been. This
feature addresses the problem of children having low attention spans hindering their learning.
● Another key offering is offline support through OSLO sheets. Which are puzzle, map, riddle
templates that students can use to practice offline to stay revised after the completion of their
course.

2. Byju Classes : ​Byju classes offer the benefit of choosing an ed tech product for a
particular grade instead of long term plans.
The following diagram illustrates the core product offerings of Byju classes.

Segmentation:
After having noted a few important characteristics that determine the customer’s buying behavior,
we identified some major segments that Byju’s would consider before proceeding further with the
promotional and product strategies. These segments have also been formed after having consulted
few people who are working/ have worked in the sales department at Byju’s.
1. Urban literates: ​Parents belonging to the affluent group with a formal education background,
these people inherently encourage the use of technology in education. As the name suggests,
these people are found more in Tier 1 cities. Less sensitive to price differences in educational
packages offered by companies, this segment gives importance to the quality of education
being delivered from the Edtech companies.
2. Value seeking group: ​While having had an education background like the urban literates, the
value seeking group is relatively more sensitive to the price differences in the packages
offered by different companies. This segment is usually on the lookout for finding a balance
between the quality of educational content and its price. The value seeking group would prefer
availing the services of companies offering easy payment options like low cost EMI, low
interest educational loans, discounts, etc. The value seeking group belongs to the middle and
upper middle income class of population and are densely populated in Tier 2 regions of the
country. The distinguishing factor of this group is that they will thoroughly analyse all the
options available in the market and make a highly informed decision.
3. Freeloaders: ​Given an option, these parents would prefer having additional education like
classes outside of school enrolled for free. These parents belong to the middle income group
and comprise the biggest lot of customers in the market. Freeloader parents don’t have a
 secondary education. They live in Tier 2 and 3 regions and most of them don’t have enough
knowledge about the Edtech system and its benefits.
4. Self Motivated individuals: ​Working in corporates, expecting a change in job or promotions,
these people are on a lookout for courses to upskill themselves and stay relevant in the
evolving market. We find self-actualising people in this segment. Living in Tier 1 and 2 cities,
these individuals are insensitive to price. They also prefer opting for courses that offer
flexibility in completion of the course over weekends.
5. Old School: ​These parents are strongly opinionated about the perks of traditional physical
classroom lectures outweighing the benefits of online classes. These people are highly
reluctant in adopting Edtech services and are densely populated in Tier 3 regions.
6. Outliers: ​Outliers are the families residing in rural areas of India with poor channels of
internet connectivity. Despite facing financial challenges, a scattered population makes quality
education in traditional schooling inaccessible to these people and hence in a need for Edtech
services. Needless to say, the outliers prefer free educational services.

Targeting:
Due to time constraints on delivery of the presentation and in order to elaborate well on the
positioning strategies, the document describes the STP and product strategy for K-12 educational
packages offered by Byju’s. The targeting segments identified for the same are urban lierates,
value seeking groups, freeloaders, and the old school.

Positioning:
Byju’s positions itself as the fun learning application. It aims to make the customers think of it as
the brand that makes learning enjoyable. We can see the teacher explaining concepts with the
help of visuals and graphics that make understanding complex concepts very easy. To educate
the customers about their deep penetration in the Indian market, their ads display father-son
conversations in diverse languages and cultural settings. Further, Byju’s communicates the
quality of their services by emphasizing on classes being delivered by the best teachers of the
country. Their sales pitches to customers give special emphasis on customised learning for the
students. With pace of learning being subjective for every student, the course is customised
according to the comfort and pace of individual student’s learning. Attaching the goodwill and
brand value of Shah Rukh Khan casting in their ads, Byju’s has established a high brand recall in
the customers’ minds. This has also been done by airing advertisements during cricket matches.
The sense of togetherness that viewers of a cricket match have resonates with the collaboration
that Byju’s aims to establish with their customers. Association with sports like cricket helps them
re emphasise the perception of learning being fun and game like. Their ads also highlight the
existing gaps between Gen Z students and their parents by displaying that education need not
solely be delivered through books and classroom teaching, and that students can have a fun
experience in their learning process.