Group-2_pgdm(b)_business_plan_report.docx

Entrepreneurship Workshop

Project Report On: B-Plan of an MBA Test-Prep Coaching Center

Submitted to : Dr.Deepak Pandit

On : 30-Mar-2019

BUSINESS PLAN OUTLINE 1. Executive Summary 2. Business Description a. Product/Service description b. Value proposition of the offering 3. Marketing Potential and Marketing Strategy a. Market sizing & Target Market b. Competitor Analysis c. Pricing, Promotion and Distribution Strategies 4. Operations a. Technology and Operations requirements 5. Management Team a. Experience b. Organization Structure 6. Financial Plan a. Income statement, balance sheet and cash flows 7. Risks & Opportunities a. Key Risks b. Key Opportunities

1. Executive Summary (a)Market Overview Coaching class market in India is highly fragmented and regional in nature.  Coaching classes account for the major share of the informal education in the Indian Market.  Coaching classes are a prominenet feature in India that complement the mainstream education system.  Coaching classes have a high growth potential in the market.  Comprises of two segments: (i) Private Tuitions targeted primarily at students in Grade 5 - 12 (ii) Coaching Class Market Entrance Test Preparation Market targeted at: – Graduatelevel (engineering, medical, BBA etc) – Post-graduation level (MBA, GMAT, GRE etc)

(b)Drivers and challenges – Drivers :  Demographic drivers - Over the years, the transition of households from lower income to higher income bracket has also resulted in an increase in per capital spend on education, especially in the urban areas.  Growing number of nuclear families and the cultural change of both parents being employed has increased the dependence of parents and students on coaching classes for educational guidance and supervision.  Limited numbers of good quality educational institutes in the Indian education system have played a key role in the growth of the test preparation industry.

Challenges :  Person – centric business  Change in entrance test pattern every year.  Lack of government support .

(c)Key Trends –  Coaching institutes enter mainstream education.  Demand for correspondence coaching materials increasing.  Increasing demand for online tutoring in domestic market.

2. Business Description (a) Product/Service description –  Our Inspiration : We got this inspiration from the time when we were MBA aspirants ourselves.We came to an observation that various portals like HitBullseye.com,Studybuzz.com,Learn4Exam are offering a good number of paid video/pen-drive courses which is a profitable business idea.

 Our Objective : Opening up an education center(initially offline) at Delhi(since it is a hub)and then as we win trust and get credibility in the market we would expand it into offering online courses by creating our own educational website/portal.The courses would initially be offered for free->later paid).  Our Platforms: 1.Coaching Center-Test-Prep Institute 2. E-Learning-Website 3. E-learning-Mobile App

(b) Value proposition of the offering –

CUSTOMER PROFILE 1.CUSTOMER JOBS/EXPECTATIONS1. Return-on-Investment with their time being invested as an opportunity cost. 2.Syllabus based on latest examination pattern. 3.Low-cost pricing of course packages. 4. Reliabile course content. 5. Satisfaction/Improvement in student performance.

2.GAINS-

1. Flexibility-classes through internet system,therefore every class may be reviewed any number of times. 2. Convenience-feel of virtual class room. 3. Guidance-helpful in admissions and career guidance. 4. Individual attention-focus is on learning and development of students as per their requirement. 5. New learning styles-tips for getting a competitive advantage grip on subject develop quickly.

3.PAINS1. Additional expenditure on education-Not every student can afford extra expenses for education along with high graduation fee. 2. Developing stress in students due to competition-extensive preparation. 3. Time Consuming-travelling,batch attendance etc. at the coaching center.

VALUE MAP 1.PRODUCTS/SERVICESOUR PLATFORMS 1. Coaching Center-Test-Prep Institute 2. E-Learning-Website 3. E-learning-Mobile App

2.GAIN CREATORS Flexibility  Convenience  Guidance  Individual attention  New learning styles

3.PAIN RELIEVERSAs a company we wish to differentiate ourself by providing quality service at a low-cost pricing as compared to our competitors. For instance if our rival Studybuzz is offering LRDI package at Rs.3000 per member.We could offer it at Rs.1999 per member. “Low price attracts more customers”. Let’s say our promotinal offer is able to attract 40 customers per day & simultaneously Studybuzz gets 20 customers in their pool,then ultimately we at (40*1999=Rs.79,960) are able to grab a greater margin as compared to Studybuzz(20*3000=60,000) India is a price-sensitive market and our strategy is to attract huge potential students into enrolling for our courses.

3. Marketing Potential and Marketing Strategy (a)Market sizingThe Indian test preparation industry has been through a transitional phase during the past few decades.The Indian test preparation industry was estimated at approximately 245 billion (as of 2013-14) of which the graduate segment accounts for 68 per cent share while the post-graduate, job based and language proficiency segment account for the balance 32 per of the share in the total market size. While there are no key initiatives or regulations announced by the government, the segment is likely to be driven by the shift of the examination structure from Knowledge based testing to Aptitude based testing leading to higher market concentration and increased ability to rapidly scale up the operations.

Target market –

CUSTOMER SEGMENTATION GEOGRAPHIC

DEMOGRAPHIC

Delhi NCR-:Offline-Main center PAN India-: Online courses

Students-: pursuing graduation/graduated/those with work experience.

PSYCHOGRAPHIC

BEHAVORIAL

Believers Strivers Thinkers Aspirers

Usage rate-: Heavy/medium/light users of our courses. Loyalty status-: Hard-core loyals/softcore loyals/switchers of our brand. User status-: first time users/regular users/potential users/non-users/ex-users

( *Source-Self-analysis)

TAM: Total Available Market-Demand for the service is huge.Education is a never-ending business. SAM: Serviceable Available Market-Within our geographic reach we target Mba aspirants of Delhi-NCR region and welcome various candidates looking to enroll online from ther parts of India.

SOM: Serviceable Obtainable Market-Since competition exists,it would require us some years to establish ourself as a well-known center.

(b)Competitor AnalysisIndian test preparatory industry is dominated by private players, both large and small. Typically, the bigger players in this segment enjoy a better brand equity thanks to their vintage and promoter background. Such players are also able to scale up their operations, mostly via the franchising route. Consequently, the number of students coached annually is far higher for the larger players as they have a much stronger penetration across states and cities as compared to the regional or local players.

* (Source:CL Annual Report 2015)

Other than that various web portals and institutes such as HitBullseye.com,Studybuzz.com,Learn4Exam are doing great and offering a good number of paid video/pen-drive courses. HitBullseye.com Bulls Eye is known for its innovation in the education industry.  Their IT team is constantly working upon pushing the limits and breaking the clichés.  Their mobile app provides various multifarious features to the users, making their learning experience fun, accessible and innovative.  They have set benchmarks in terms of quality of video-lectures and the content put up.  Across North India,they are theone of the fastest growing online Test-Prep portal in India for aptitude-based entrance tests. StudyBuzz StudyBUZZ is an initiative to help students clear various aptitude based entrance exams for various MBA courses,focusing on CAT, IIFT, XAT, NMAT, SNAP, CMAT, TISS, MH-CET, GMAT, SRCC GBO & many more.  Founder, Saurabh Kothari is 5 times IIM call holder and having corporate experience with Ernst & Young.  Apart from classroom & online training, they provide one to one mentoring and detailed feedback sessions for each of their students. 

Learn4Exam The team at Learn4exam carries years of experience.They are young entrepreneurs and provide Mba Test-prep coaching on their website. (c) Pricing, Promotion and Distribution Strategies-

ACHIEVING THE FIT

STAGE -6 STAGE -5

STAGE -4

BUY

CONVICTION

PREFERENCE

STAGE -3 STAGE -2

STAGE -1

LIKING

KNOWLEDGE

AWARENESS

 Challenge of AwarenessAt the launch of a new coaching center & website/portal,the target market may not even be aware that the service exists.

 Challenge of KnowledgeThe audience may well be aware of the nature of service but still have either very little knowledge of what our company does,or possibly worse have the wrong impression of the quality of service.  Challenge of LikingKnowing about a company does not mean the audience will necessarily like it.Either they may well be ambivalent,have no feeling at all, or even dislike the service.An audience with knowledge of the service must therefore be moved to the stage of liking the product.If market research identifies a poor image in the market, promotion must seek to address these issues and develop a positive attitude of aspirers towards our new coaching center/website/online portal.  Challenge of PreferenceGiven the level of competition in markets today, it is often the case that the potential customer will like several other competing coaching centres.Promotion must now therefore seek to develop within the students a preference for our courses.  Challenge of ConvictionAn audience which prefers a particular service may still not buy that product based on pure preference.In fact many customers will purchase a competitors’ service which they did not prefer purely because they were convinced it was the right decision at that time.

 Challenge of PurchaseUnfortunately conviction to buy may still not result in actual purchase, this may for example be due to the individuals current financial situation. Many customers will need further persuasion to make the purchase. Promotion may offer Sales Promotional discounts, or Personal Selling through Sales Representatives, in order to convert preference and conviction into a sale.

4. Operations (a)Technology and Operations requirementsFor Offline Center-We need to first plan a layout design for our coaching center.It will have a reception where an attendee(counseler)would do the work of enrolling students in our programme/courses.It would require computer/pc with Microsoft Excel to enter data for(i)Student name (ii)Contact No. (iii)Current education status (iv)Courses opted (v)Batch No./Class No. Alloted (vi)Payment-Paid/Due Etc… Classrooms should be well equipped with basic requirements such as chairs,desks,whiteboard,tubelights,fans.Operational expenses would occur for the same.

   

For Online CenterOffice with well connected network of computers. X number of people of the team working on designing & developing the website’s graphics. X number of people of the team working on creating pool of content(questions and solutions) X number of people of the team working on getting prospects to sign up for our portal and promotion.

5. Management Team (a)ExperienceOur competitors come both from the background of IIM call holders as well as young entrepreneurs with no corporate work experience.We would start this business after some years of corporate exposure after our PGDM so that we can gain credibility in the market.Later on,as we grow and build up as a team we would define an organizational structure for our company.

(b)Organization StructureWhole-Time Director

Chairman of the Board

Vice-Chairman

Managing Director

Chief Financial Officer Stakeholders(Bankers-HDFC,Axis)

Members-Coaching guides/faculty

Customers-Parents

Consumers-Students

6. Financial Plan (a)Income statement, balance sheet and cash flowsSince we have not started the execution of our business plan yet we will make the use of estimates. The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the reported date and the reported amounts of revenues and expenses during the reporting period. Ultimate goal is to ensure that expenses would not exceed revenues. - Revenue from services(training & subscription) - Fixed assests  Furniture-Chairs,Desks  Computers/PCs+ DigitalMarkers  Fixtures-Whiteboard,Tubelights,Fans,Markers - Intangible Assets  Trademark  Software  Cat Online Module - Expenses  Infrastructure  Manpower  License Fee - Other expenses on existing fixed assets, including day to day repair and maintenance and cost of replacing parts.

7. Risks & Opportunities (a) Key RisksThe various risks associated would be High competition as many coaching centers are already well established brands.  Threat of substitutes as not all customers would be loyal.Many of them might be brand switchers.  Our team isn’t IIM qualified.  Failure of the company due to inadequate enrollment.

(b)Key Opportunities Education is a never ending service.  Once the content is created it is not very difficult to earn and make profit exponentially.  Very few coachings offer topic wise courses only.For example,if a student is weak only in Quant Section,we will provide him/her the opportunity to enroll only in that particular course at a low cost.  With years of hard-work and dedication we could grow into becoming India’s No.1 MBA Test-Prep coaching Center!

Thankyou!