Snapdeal is proposing to offer online video coaching content from various coaching providers in India through a specialized interface on Snapdeal. This will allow coaching classes to reach a larger audience across India and allow students flexible access to quality education content. Key aspects of the proposal include developing an interface for coaching classes to list subscriptions of their video lectures, which would be marketed to Snapdeal's 40 million users. Financial projections estimate revenues of over 350 crore in the first year capturing 1% of the target market. An operations plan and situational analysis were also provided.
2. CONTENTS
1 Product : Online Video-Coaching content
Situational Analysis
Segmentation, Targeting and Positioning
Operations Plan
Financial Plan
Integration, Evaluation and Pre-Mortem Analysis
2
3
4
5
6
3. PRODUCT - Online Video-Coaching Content
Offering subscriptions for video-based educational content by a variety of competitive exam coaching providers in India on
Snapdeal through a specialized interface
Education sector in India
Formal Education Non-Formal Education
K-12
Graduation
Pre-School
Vocational Training
E-learning
Academic Publishing
Coaching Industry
Coaching Industry
Test Based Curriculum
Based
K-12
Graduation Courses
Graduation-Test
Preparatory courses
Post Graduation-test
Preparatory courses
Example: SAT, JEE, Science,
Commerce, AIIMS, AIPMT
Example: CAT, CMAT, GRE,
GMAT, CPT, CA, TOEFL, GATE
Masters
Classroom
Coaching
Viewing online videos
through web-interfaces
Tie-Up with various coaching class
providers
to list their online content on
Snapdeal’s portal on a subscription
basis
1 2
3
4. PRODUCT - Online Video-Coaching Content
Offering subscriptions for video-based educational content by a variety of competitive exam coaching providers in India on
Snapdeal through a specialized interface
NEED
(Problem Statement)
Although many coaching classes provide their content digitally via video lectures, they do so on their
personal websites and lack the reach to market their product across the country.
SOLUTION
Snapdeal is the ideal marketplace to bridge this gap between coaching providers and exam aspirants
offering customers a variety of digital educational video content to choose from.
VALUE ADD FOR STAKEHOLDERS
Coaching classes get a larger
reach and visibility across the
nation thereby boosting sales
Increased revenues through subscription commissions. It
would also draw a potential of 10 million youth yearly to their
portal capturing a loyal customer base.
To top it, Snapdeal would hold the distinction of being the
first to foray into educational digital goods market disrupting
the entire education industry.
Student customers are the biggest gainers
with access to top-quality education at the
click of a button while located in any
corner of the nation. There is no larger
impact than transforming the lives of
billions at a time when India desperately
requires leaders for its future.
5. CONTENTS
1 Product : Online Video-Coaching content
Situational Analysis
Segmentation, Targeting and Positioning
Operations Plan
Financial Plan
Integration, Evaluation and Pre-Mortem Analysis
2
3
4
5
6
7. External Environment (1/6)
SITUATIONAL ANALYSIS
Economic Perspective
The long-term growth prospective of the Indian economy is positive due to its young population, corresponding
low dependency ratio, healthy savings and investment rates, and increasing integration into the global
economy.
According to the IMF, the Indian economy is the "bright spot" in the global landscape. India also topped
the World Bank’s growth outlook for 2015-16 for the first time with the economy having grown 7.6% in 2015-16
and expected to grow 8.0%+ in 2016-17.
Retailing in India is one of the pillars of its economy and accounts for about 10 percent of its GDP. The
Indian retail market is estimated to be US$ 600 billion and one of the top five retail markets in the world by
economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people.
A report by the National Sample Survey Office (NSSO) revealed that 20% of Indians pursuing degree
courses and 13% pursuing post-graduate courses and above avail private tuition. Tutoring as an industry is
estimated to be $11 billion, growing 11–12 percent year-on-year and is expected to touch $16 billion by
2017.
Overall Economy
Coaching Industry
8. External Environment (2/6)
SITUATIONAL ANALYSIS
Social & Technological Perspective
As evidenced by the above data, the number of internet users is growing by 19% YoY. There is greater adoption of E-commerce and Digital
Devices. India is becoming more digitally literate and is willing to make purchases online.
All of the above, contributes to a conducive environment for providing digital content in the field of education
9. External Environment (3/6)
SITUATIONAL ANALYSIS
Political & Legal Perspective
• Digital India was launched by the Hon’ble Prime Minister of India, Shri. Narendra Modi on 2 July 2015 - with an objective of connecting
rural areas with high-speed Internet networks and improving digital literacy. The vision of Digital India programme is inclusive growth in
areas of electronic services, products, manufacturing and job opportunities etc. and it is centred on three key areas – Digital Infrastructure
as a Utility to Every Citizen, Governance & Services on Demand and Digital Empowerment of Citizens.
• The Government of India has undertaken an initiative namely Bharat Net, a high speed digital highway to connect all 2.5 lakh local village
bodies of country. This would be the world’s largest rural broadband connectivity project using optical fibre.
• Education was featured amongst the ‘9 pillars’ of the Union Budget 2016-17
• The Union Budget FY17 focused on providing entrepreneurship, education and training in 2,200 colleges, 500 government industrial
training institutes, 300 schools and 50 vocational training centres via MOOCs. Another major initiative proposed in the Budget was the
launch of digital literacy schemes to reach six crore rural households in the next three years. This indicates the government’s intentions to
uplift online education in India.
• At present, the VAT regimes in India are not equipped with provisions to tax Digital Goods. Although a few states are taxing them via
VAT. Once the GST Bill gets passed, the government might introduce steps to tax digital economy in the Parliament. This is essential to
bring in more clarity as far as investments in India’s digital economy are concerned. VAT will be taxed to the seller and not the
marketplace
11. External Environment (5/6)
SITUATIONAL ANALYSIS
Industry Structure: Barriers & Competition
Snapdeal Flipkart Amazon India
Founded 2010 2007 2013
Market Share 14-15% 37% 21-24%
Gross Merchandise Value 26% 45% 12%
Company Valuation $6.5 bil $10 bil -
Number of Sellers 3,00,000+ 90,000 85,000
Losses Rs 1328.01 cr Rs 2000 cr Rs 1723.6 cr
Possible Barriers to Entry Possible Barriers to Exit
Private coaching classes may not want to list their video-subscriptions on
Snapdeal because :
• Competing with other players on the same webpage of Snapdeal may
lead to a scenario of survival of the fittest
• A commission (5-30%) needs to be paid to Snapdeal for every
purchase/subscription by consumer
Might be difficult to pull the plug due to capital
employed for creating a separate user
interface/portal and support.
Exiting might send a negative message to consumers
and investors
• Snapdeal has been losing ground in
terms of market share to its 2 biggest
rivals, Amazon and Flipkart.
• This opportunity is unique for Snapdeal to
venture into an as yet unexplored space
and capture millions of loyal customers
12. External Environment (6/6)
SITUATIONAL ANALYSIS
Marketing Channels
Current marketing approach used by Coaching Industry are through the following channels:
Besides the above, coaching classes rely majorly on Word-of-Mouth publicity. All these media are effective in promoting the brand but it
is still restricted to a particular geography and is unable to make a wider presence.
Listing their video-lecture series online on Snapdeal’s platform opens up much larger markets. Snapdeal currently has over 40 million
users. The prospects for coaching classes to reach outside their geographic areas to these users is therefore extremely enticing.
Hoardings
Bus/Trains
Brochures
E-mails
Newspapers
Social Media/
Search Engines
14. Internal Environment (1/3)
SITUATIONAL ANALYSIS
Resources Required
• Negotiate with online coaching
content providers
• Strike deals with major players
of every competitive exam
coaching
TOP MANAGEMENT FINANCE TEAM
• Appropriate funds for development of
video-content platform
• Monitor Return on Investments on the
parameter of:
Capital Employed + Maintenance Cost
VS
Subscription + Ad Revenue
MARKETING TEAM OPERATIONS TEAM
• Continuously advertise and
increase outreach
• Analyse trends of purchase
and acquire new content
accordingly
• Design, develop, implement and
maintain the web-portal
• Offer support services to users
15. Internal Environment (2/3)
SITUATIONAL ANALYSIS
Brand Diagnosis
Positioning
India’s Ultimate Online Shopping Destination. Snapdeal’s vision is to create India’s most reliable and
frictionless commerce ecosystem that creates life-changing experiences for buyers and sellers
Pricing
Snapdeal lets sellers list their products on its website free of charge. However, the sellers agree on a
selling commission ranging from 5-30% of a product’s sale value to be paid to Snapdeal. Snapdeal also
earns revenue through selling ad-spaces on its marketplace.
Promotions
Snapdeal majorly focusses on offering discounts to customers. In addition, it has promoted its
marketplace by entering into unique partnerships with Samsung, Uber, ClearTrip, Housing.com, Windows,
Mahindra Commercial Vehicles etc
Place
Snapdeal does not operate on the Inventory-model like other marketplaces. Instead, it relies on a Market-
place model by letting over 300,000 sellers list more than 35 million products from over 125,000 brands
on its website and deliver these products to buyers from 6000+ cities and towns in India.
16. Internal Environment (3/3)
SITUATIONAL ANALYSIS
Strengthening & Weakening Factors
Strengthening factors within the organisation for proposal
Snapdeal is looking to enter digital goods as per its business strategy
Low capital to be employed
Interface to be developed would be fairly simple to code
Less development time
Hindering factors within the organisation for the proposal
Snapdeal may not be able to customise the interface to every coaching class’s video and allied
requirements
Snapdeal may not want to invest in a new interface for digital goods
17. CONTENTS
1 Product : Online Video-Coaching content
Situational Analysis
Segmentation, Targeting and Positioning
Operations Plan
Financial Plan
Integration, Evaluation and Pre-Mortem Analysis
2
3
4
5
6
19. MARKET SEGMENTATION
Who is the Market?
Geographic Segmentation
• Pan India Urban and Rural youth
• No access to physical classrooms
• Reliable access to mobile/PC’s &
Internet.
Income based Segmentation
Lower Middle Class to Rich
Demographic Segmentation
Behaviour Preference
based Segmentation
Psychographic
Segmentation
• Looking for a brands credibility
• Aspiring minds
• Passionate about learning
• Scan the market thoroughly
before choosing a product
• Require additional coaching
• Are comfortable with online
purchases
• Prefer to stream lectures than
attending a physical classroom
Youth between the age group of 14-25 years
20. MARKET SEGMENTATION
Market Analysis
What does the market buy?
• The market purchases physical as well as online content of coaching
classes
When does the market buy?
• The market buys as and when it demands
• More purchases are made during the start of an academic year
Where does the market buy?
• Currently the market buys from websites of individual coaching content
providers. It is now proposed to buy from Snapdeal’s interface
Why does the market buy?
The market buys because a) it does not have access to physical classrooms; b) It wants
flexibility in deciding its study sessions; c) It wants high-quality coaching; d) It can afford to
spend on education; e) It finds the interface simple to use; f) It can choose from multiple
options
22. MARKET TARGETING
According to Population Projection of Ministry of Human Resource and Development, Government of India, 2016:
Age Group Population Education
6-10 years 130 million Primary (I-IV)
11-13 years 73 million Upper Primary (V-VIII)
14-15 years 49 million Secondary (IX-X)
16-17 years 44 million Senior Secondary (XI-XII)
18-23 years 141 million Higher Education
• Therefore, our target group consists of youth between the age 14-25 i.e 235 million
• The Target group will be further filtered based on:
o Income (Lower middle class to rich)
o Access to PC/mobile and Internet
Target Group
24. MARKET POSITIONING
CURRENT POSITIONING
India’s Ultimate Online Shopping Destination. Snapdeal’s vision is to create India’s most reliable and frictionless commerce ecosystem that
creates life-changing experiences for buyers and sellers
Positioning of Proposal
Points of Difference Providing Education & a learning experience online
Points of Parity A Digital Goods Provider
Communication & Advertising Propaganda
“Unbox Dreams, Unbox Zindagi”
Aiding Snapdeal’s Positioning Not only creates life-changing experiences. It now changes lives
*Zindagi = Life (in Hindi)
25. CONTENTS
1 Product : Online Video-Coaching content
Situational Analysis
Segmentation, Targeting and Positioning
Operations Plan
Financial Plan
Integration, Evaluation and Pre-Mortem Analysis
2
3
4
5
6
26. OPERATIONS PLAN
Operational Diagram
Data Storage & Processing Servers Coaching Class Providers
Snapdeal Website
Internet Customer/ Student
• The core operations of the service will be delivering content directly to the consumer (B2C model) where the user visits Snapdeal and then
clicks on Education tab. User is redirected to the page : https:www.education.snapdeal.com. User now logs in his credentials and sees a
dashboard and his currently subscribed videos. This interface lets the user watch stored content as well as watch live lectures.
• Support operations would be required separately to handle customer queries as well as glitches and bugs if they arise
• The primary distribution channel for which the interface would need to be developed would be:
A) Computers B) Tablets C) Mobile Phones D) Smart Televisions
27. CONTENTS
1 Product : Online Video-Coaching content
Situational Analysis
Segmentation, Targeting and Positioning
Operations Plan
Financial Plan
Integration, Evaluation and Pre-Mortem Analysis
2
3
4
5
6
28. FINANCIAL PLAN
Financial Projections
Investments & Revenues
Initial Investment (In Rupees)
Development of Interface 50,00,000
Marketing Campaign 1,00,00,000
Workforce Training 10,00,000
Data Centre’s & Server Upgradation 20,00,000
TOTAL 1,80,00,000
Initial
Investments
(in Rupees) 2016 2017 2018
Market Size 23,50,00,000 270250000 310787500
Subscribers (1 %) 23,50,00,00 2702500 3107875
Price for Each Subscription (Average) 15,000 15,000 15,000
Revenue (10% of subscription amount) per subscription 1,500 1,500 1,500
TOTAL REVENUE (Subscribers x Revenue) 3,52,50,00,000 4053750000 4661812500
Initial Investment 1,80,00,000 1,00,00,000 1,00,00,000
EBTDA 350,70,00,000 404,37,50,000 465,18,12,500
The CAGR is taken to be 15% based on CRISIL (S&P) Report
We are just looking to capture 1% of
the market.
With such a projection, we are looking
at profits of Rs 1,72,50,000 or USD
25,825,078
29. CONTENTS
1 Product : Online Video-Coaching content
Situational Analysis
Segmentation, Targeting and Positioning
Operations Plan
Financial Plan
Integration, Evaluation and Pre-Mortem Analysis
2
3
4
5
6
30. INTEGRATION, EVALUATION AND PRE-MORTEM ANALYSIS
1 Time-Table of Activities
2 Evaluation of Project Success
3 Pre-Mortem Analysis
31. Time-Table of Activities
INTEGRATION, EVALUATION & PRE-MORTEM ANALYSIS
January February March April May
Research video-content coaching class providers I
Shortlist options for every segments II
Develop user interface and integrate with Snapdeal III
Negotiate and form alliances with each IV
Buy Data Servers. Import and Store video content V
Platform Testing VI
Workforce & Support Training VII
Project Launch VIII
32. INTEGRATION, EVALUATION AND PRE-MORTEM ANALYSIS
1 Time-Table of Activities
2 Evaluation of Project Success
3 Pre-Mortem Analysis
33. Evaluation of Project Success
INTEGRATION, EVALUATION & PRE-MORTEM ANALYSIS
• Search behaviour
• Demography (Age, Location)
• Increased page views, hits
• Number of new users registered onto Snapdeal which is attributed to this
project
Measures to Evaluate Success
• Number of subscriptions
• Return on Capital Employed
• Feedback, comments and ratings given to products
Based on the following:
Following Data:
ANALYZE
34. INTEGRATION, EVALUATION AND PRE-MORTEM ANALYSIS
1 Time-Table of Activities
2 Evaluation of Project Success
3 Pre-Mortem Analysis
35. Pre-Mortem Analysis
INTEGRATION, EVALUATION & PRE-MORTEM ANALYSIS
A managerial strategy in which a manager imagines that a project or organization has failed, and then works backward to
determine what potentially could lead to the failure of the project or organization. Management can then analyze the magnitude
and likelihood of each threat, and take preventative actions to protect the project or organization from suffering an untimely
"death"
THREAT MAGNITUDE
Private coaching classes may not want to list their video-subscriptions on Snapdeal
because they would not want to compete with other players on the same platform
Private coaching classes maybe reluctant to use this model as it may cannibalise their
physical classroom coaching business
Snapdeal creates a standard interface that restricts coaching classes to provide
customised audio/visual/text delivery of content thereby failing to attract customers
Low
Moderate
High