Segmentation of Indian Education system

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The Indian Education System can be broadly divided into three segments; namely Schools, which include pre schools and the K12segment, Professional colleges imparting education in the field of medicine, engineering and management, and lastly, Vocational training institutes, which includes IT training and teacher training institutes.

1. Schools:
Pre-Schools are places where formal education is not imparted, but children are taught basic activities which help them get independent faster. While pre-school has been an old concept in the west, it is catching up in India, mainly because of working parents. Currently, there are no listed players in this segment in India. The largest pre-school player is Kid Zee, part of Essel Group (Zee Group). It has over 700 centers across 265 cities in India and abroad.

with classes being run even in residential premises. larger players like Chate Coaching Classes. following which. students go for professional education.. Private Tutoring for schools: Private tutoring has become a flourishing business in India with an estimated market size of almostUS$2 Bn. Dayan and Anglo Vedic (DAV) and Ramakrishna Mission Schools. which suffer from high rates of teacher absenteeism. who have a wide network. While the sector is very fragmented. have witnessed rapid growth in number of private unaided schools. in particular. recognized schools and unrecognized schools. It starts with lower kinder garten (LKG) till XIIstandard. Currently. most schools are run by non-profit charitable institutions. Private schools are divided into two types namely. . and generates good cash flows. The break even period is about 4-5 years per school. urban areas.K12 Segment: In the K12 segment. Setting up of schools involves huge initial investment to be made. This was mainly due to resource crunch in public schools. formal education is imparted to children. Initial investment for setting up the infrastructure is high but break even period is about 2 to 3 years. In the past few years. Some famous schools include Delhi Public School (DPS). Mahesh Tutorials etc. are benefiting from this growing market.

the governments¶ (both centre and state) have not been able to regulate the fee . most private colleges and universities in India are pursuing a profit motive. The resources and spending of government on higher education is not enough to tackle the rapid growth in the enrollment in higher education. imparting quality education in science. there are 10 private universities in Indian higher education. private sector initiatives in higher education have started making their presence felt The transition from private college to private deemed university is a new and growing trend. The economics of imparting higher education are such that. Today. medicine etc. only central and state government can open a new university and that too by legislation in parliament and state.2. all of which cannot be recovered through student fees. Higher Education: Currently. without making higher education inaccessible to a large section of students. Unlike many better-known private educational institutions in western countries that operate in the charity mode with tuition waivers and fellowships. apart from forced donations. technology. This is the basic reason for charging huge tuition fees. media interventions and many court cases. Despite huge public discontent. capitation fees and other charges. barring a few courses in arts and commerce. While free entry and exit of foreign institutes into India may take time due to political issues. both public and private institutions operate simultaneously. which India is currently witnessing. requires huge investments in infrastructure. engineering. But as far as universities are concerned.

this problem is likely to worsen. which provide coaching facilities in particular stream of higher education. without addressing the basic issue of fee structure. management quotas etc. Educomp trained 81. we have classified it separately. In FY08. Currently. Indian fee structure continues to be lower than most of the developed world.structure and donations in these institutions. TIME.. which will definitely benefit companies like NIIT and Aptech. IT Training. Vocational training This is the third segment in education services.. in India there are many privately owned institutes that are providing vocational training. while IMS provides coaching for MBA aspirants. Vocation is an occupational skill on which a person is specifically trained. by its very nature comes under vocation. So there is ample scope for growth of core IT training companies like NIIT and Apte. Educomp has a separate division for teacher training. but for the purpose of this report. 3. the IT industry is facing a shortage of employable professionals and going forward. . the requirement for skilled people in the sector continues to grow at a healthy rate. The Global IT training industry has grown a little over 3% in CY07 and stood at US$24 Bn. Private Tutoring for higher education The private tutors in higher education include Brilliant Tutorials. Even the courts have only played with the terms such as payment seats.000 teachers. Brilliant Tutorials is into engineering and medical segment coaching.6% from FY04 to FY07 (Source: NASSCOM) Thus. On the other side. IMS.7 MM people and has grown at a CAGR of 26. Career Launcher etc. More importantly. IT Training The IT sector currently employs around 1. NIIT's and Aptech's core IT training business falls under vocation Teacher Training Teacher training also comes within the aspect of vocational training.

middle income and higher income groups of people. or organization. Targeting of IIPM Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments. They are also targeting the people who are corporate employee and the student who are wanted to study the management education. What most will agree on is that Positioning is something (perception) that happens in the minds of the target market. They are targeting mainly management and its related educational course. Positioning of IIPM Positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product. reactive or passive about the on- . It is the aggregate perception the market has of a particular company. IIPM is also plan to go to target higher income groups of people. Target marketing provides a focus to all of your marketing activities. brand. IIPM is target only middle level income groups of people segment for providing the higher education segment. . pricing and distribution of your products and/or services easier and more cost-effective.IIPM: In Indian education system segmentation. the IIPM is serving or targeting the higher education segment and in the higher education segment. For. It will happen whether or not a company's management is proactive. They are make segment based on income are lower income. IIPM is also used income based groups of people for making the segment. The beauty of target marketing is that it makes the promotion. targeting these segments of people they are tried to introduce new type of the course. product or service in relation to their perceptions of the competitors in the same category. they are present in the many different categories but in this we are only seeing the IIPM management related segment.

IIPM is spending Crores and Crores of Rupees in their Humble Effort to Tell the World that they are better than IIMs? This Humble effort is anyway benefitting the IIMs .(and of course the Newspapers) as each advertisement of IIPM is giving more leverage to the IIMs than IIPM. IIPM is also contact with Shahrukh Khan for endorsing the IIPM. But a company can positively influence the perceptions through enlightened strategic actions. .going process of evolving a position. IIPM is also gives ad related to their faculty and also what types of facility they are providing to their student.

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