MARKETING MANAGEMENT 1

ASSIGNMENT 2

TEAM: SIXTH SENSE

NAME ROLL NO.

Ayush Bansal 21PGP051
Abhishek Kumar Pandey 21PGP012
Amruta Nema 21PGP030
Nilisha Deshbhratar 21PGP064
Abhijeet Kumar Singh 21PGP005
Anand TM 21PGP031

WHY DO ORGANIZATIONS FAIL?

Every Organization in this world, be it an established brand or a new age start up, has the
affinity to change or more specifically eyeing growth opportunities through key transformations
and new ventures. However, not all such actions end up matching the very purpose of doing it
and instead, it has led to a huge downturn as well.
Now let us look into some of the basic reasons why organizations fail and some real time
instances of the same.
● Ignoring customer needs
● Premature Scaling
● Making changes for no reason
● Failure to innovate
● Poor Financial Planning
● Lack of Corporate governance
● Frauds/Scams
● Failure to use the resources at hand

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 ● Lack of passion for the business
● Not hiring the right people

The rapid change of the technology sector makes most of the technological companies suffer.
However, the biggest problem of Xerox Is Internal. Along with inefficient sales force
reorganization, huge short-term debts, Ineffective transition from selling high-tech products to
selling high-tech solutions and services, resulted in losing the direction of the company.
Managers were not able to commercialize new innovations. As a result, they have lagged in
developing digital products and by this time the Japanese companies have already taken over
their market share.

Right from having 85% market share in the camera business in the 1970s, Kodak went on to
declare bankruptcy in the next few decades. Lack of agility in transforming the business was a
major reason for the downfall. Having a model with high margins on the camera accessories like
films rather than cameras, with the advent of digital cameras, the sales on films started
decreasing. Kodak’s management failed to understand the disruption and ended up becoming a
victim to the aftershocks of a disruptive change. Despite creating the digital camera and pursuing
the digital business, the organization did not gear up to make revolutionary changes and the
competitors had superior digital cameras.

Yes bank makes a good example of premature expansion might lead to downfall. Yes bank had a
rapid growth in its initial years by massive expansion. To enable such a scaling, a huge number
of loans were issued. Ultimately a large portion of the loans were not recovered leading to bad
debts. The organization lacked the ability to raise enough capital to address the potential loan
losses which resulted in its downfall.

Satyam Computer’s downfall shows light on one of the biggest scams in history. The Satyam
scandal was a Rs 7,000-crore corporate scandal primarily on accounting in which chairman
Ramalinga Raju confessed that the company’s accounts had been falsified. Being from the 4th
largest IT services company in India back then, the scandal brought the company to dust. The
repercussions were faced by the entire IT industry.

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Being from an established mineral water giant, Bisleri tried exploring the soft drinks industry.
Bisleri launched soft drinks in various flavors such as Pina Colada, Limonata, Fonzo but failed to
see success due to lack of acceptance from the audience. The competitors’ market penetration
was unbreakable and the target market was not clear in this case.

Ed-Tech Market

The Ed-tech market has grown significantly in the last decade.

The important aspect of this sector is, how it is scattered in different areas , right from K12 to
Skill development to Test preparation.
Target Markets:
The major target of Edtech is the K-12 sector with 72 % share from 360 mn total learners.

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The Majority of players are trying to make their mark in K12 and Test Preparation Sector. We
have a lot of players here and initially it was indeed close to a perfect market where new startups
were coming and trying to provide value to their customers.

Who are the customers ??

The customers or consumers can be divided broadly in three categories.

Customer Segmentation

● Impressions: These are the users to whom the company has reached by its marketing
channels and they would be the one seeing the advertisement and posts or any article
about the product or company. Here the people who have seen the advertisement of
BYJUs or its competitors come under this category. The number of these users doesn't
give a clear understanding of how our marketing has yielded results.
● Engagement :These are the users who engage in any kind of activity by liking the posts
or taking a free test or taking a free trial of the course. These are the potential customers
who are interested in the product.
● Transactions: The users who take the subscription of the product and they are the one
who are going to provide revenue to the company. These are the most important and their
retention should be the priority.

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Major players in Edtech

CASE STUDY OF BYJU’S

BYJU’s TIMELINE

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Year Particular

2011 - Founded 2011 by Byju Raveendran and Divya GokulNath

2013 – Series A Funding ($9million) from Aarin Capital which is run by

Mohandas Pai and Ranjan Pai.

2015 – Series B round ($25million) from Sequoia Capital.

Launched Byju’s App

2016 – Raised 4 rounds of funding from Sequoia, Innoven Capital, Sofina

Group, Times Internet and the International Finance Corporation,

which is a World Bank Group.

Chan Zuckerberg initiative led a $50 million round and boost the

startup’s value to $462 million.

2017 – Signed Shahrukh Khan as brand Ambassador

2018 – Enters Unicorn Club ($1 billion + valuation)

2019 - Investment of $150 million from Qatar Investment Authority and

Owl Ventures.

2020 - Byju’s raised funds from General Atlantic, Tiger Global

Chan Zuckerberg initiative took home ₹167.7 crore through a partial.

Exit.

Current Valuation-$16.5 billion

Total funding till day : 2.7 Billions

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The financial health looks fine with a big bag of money with them, but it also raises a red flag
when all BYJU’S has done is acquisitions for other companies.
According to previous year data , 70% to 90% of acquisitions fail and this leads to the question
that whether the company is improving its operations or just paying money in good will to
acquire every other company.
The UNRELATED ACQUISITIONS is a major warning signal for BYJU’S.

Chart Title
300

250

200

150

100

50

0
BYJU’S Unacademy Vedantu Upgrad

Total funding(mn/10) Registered Users(mn) Active Subscriber(mn) Retention

Byju has acquired almost 13 companies (by spending 2.2 Billion)

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This only shows that they are more focused on acquisition rather than the OPERATION OF
BUSINESS.

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 WARNING SIGNALS:
The basics of marketing in the new era encompasses different terms which really didn't have
much value in the last era.
● People: It talks about how people of the firm create an impression about the firm.
The people can be categorized into two parts.
The employees of the company: It is about the importance of internal marketing – the
marketing activity reflects the value of the employees working at a particular company.
The customers: It's about seeing the present and future clients as people and realising the
importance of understanding the complexity of consumer behavior

● Process: This talks about the planning each activity as a process and that will give new
insights and creating unique products or services
● Programs: This involves all the traditional 4Ps of marketing ( Product, promotion,Price,
Place,)
● Performance: In this, we try to measure the impact of our marketing in both financial and
non financial aspects, like brand and customer equity and satisfaction, about its ethical
nature.

WARNING SIGNALS FOR BYJU’S

● Program:

PRODUCT

Though the material provided by Byju is good, Byju's has gotten a lot of negative attention
because of their Services.
Nobody recommends it because of the service they give.

ISSUES With Their Service:

a) Mentor:
In the aggressive advertisement strategy Byju is adopting they emphasize a lot on the one-on-one
interaction with the personal mentor they provide, however mentors provided to the students are
non-responsive in the sense they take days sometimes weeks to respond to a simple query of the

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student. Moreover, there are instances when students have been given a limit on the number of
doubts they can ask every month.

b) Teacher Interaction:
There are no live lectures. Most of the topics are recorded thus making it difficult for students to
clear their doubts when they arise. Also because of recorded lectures there is no personalized
teaching according to the pace or need of students.

c) They don’t have one Product for a segment where they are masters:
EVERYTHING FOR EVERYBODY APPROACH. Instead of focusing on one segment and
specialize in that they are going forward with every segment but not able to specialize in any one
segment.
They are in UPSC, CAT, JEE, k-12 , everything but not masters of any!

PROMOTION

a) Linkedin and social media backlash:

The company has come to create a feeling of FOMO inside people where they will think that, if
they don’t do it they will be left far behind in race.
This strategy is not ETHICAL for any Edteck company and Byju have made their whole
advertisement on this strategy.

Consumers are tired already from the bombardement from companies and they are somehow in
search of credible advice while purchasing anything. This is the reason for the rise in influence

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marketing as the consumer can relate to that person more and if they recommend something it
will create a powerful impression on their minds.
Also, Consumers are now more empowered to make decisions and will move to another brand if
they think there is something wrong with the company.
And in this era , Bujy’s stand is clearly on the wrong path with all its Negative brand image
about satisfying the customer needs.

b) Manipulative:
The company is in the business of FORCE SELLING .
The workers are asked to keep pushing for sales and for that it is by hook or crook because of
this though they achieve one tile sales group but can’t retain its costumes.

c) Too much spending on marketing :

Byju spends around 33% of their revenue in marketing . With this much marketing budget byju
is able to achieve its one time goals but not able to get real return from this . They are not able to
retain their customers thus every FY they have to build a new customer base which leads to extra
expenditure.

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 PRICE

The price of Byju’s products are quite extravagant as compared to their edtech companies.
The difference in price is also quite significant.
Moreover Byju;s Product are available only on yearly basis, one cannot purchase their product
for a shorter span of time say 1 or 2 month.Though instead of purchasing in the starting of year
one can purchase the product in the middle or at the end of session but that too have very less
impact on the price of the product.

● PERFORMANCE

Retention is low of existing customer:

Given the Resources Byju has, they should have made a proper system to retain their customers,
but instead Byju is having a very low retention rate as compared to its competitors which unlike
Byju don't hold such high resources.
This is quite a worrisome Situation for Byju's.

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 Consolidated Loss:

Though every year Byju’s revenue is growing substantially, we can't say that for its subsidiaries.
Because of this Byju’s is Incurring Consolidated losses.

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 ● PEOPLE

WORK CULTURE :
Work Culture is a basic requirement to sustain and Progress in a company.Companies like
google and tesla are known for their Chill Work Culture where an employee's mental health is
given a priority.While most companies are trying unconventional methods to make work hours
less intimidating, Byju’s is caught up in a row for having the worst work culture.Employees who
have quit have allegedly accused Byju’s for having horrible work culture.
The work culture is exhaustive : because everyone leaves
Unacademy has recently announced TSOP ( Teachers stock options) for its educators, this will
certainly give teachers a security about their job and will to work hard and many teachers will
shift to Unacademy from BYJU’S.

The reason for such a huge number of hiring is because of the attrition rate in this company.
People generally leave this sales job because it involves too much toxicity and pressure from
managers to make a sale and any cost. This cost involves humiliating the child in front of his
parents, by asking difficult questions deliberately and then pressuring parents to take the
admission for the bright future of their child.

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