Report shruti singh

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The project deals with learning of Business environment of education sector with prime focus on Business development of the organization & its products. It is followed by understanding consumer behavior & Competitor analysis which will benefit the organization by increasing its market share in the future. Thorough analysis of marketing strategies used by different organizations in the sector has been done.

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Report shruti singh

  1. 1. A REPORT ONBUSINESS DEVELOPMENT &COMPETITOR ANALYSIS OF CAREER LAUNCHER By:- Shruti Singh 10BSP1255CAREER LAUNCHER INDIA PVT. LTD 1
  2. 2. A REPORT ON BUSINESS DEVELOPMENT & COMPETITOR ANALYSIS OF CAREER LAUNCHER By:- Shruti Singh 10BSP1255 CAREER LAUNCHER INDIA PVT. LTD.A report submitted in partial fulfillment of the requirements Of PGPM program of IBS GURGAON Distribution List: Prof. Ranjita Gupta Tushar Goyal 2
  3. 3. AuthorizationThis is to certify that this report is submitted in partial fulfillment of the requirements of PGPMprogram of ICFAI Business School (IBS), Gurgaon. This report document titled: “Businessdevelopment and competitor analysis” is done by Shruti Singh as part of the completion of thestudy at Career Launcher during her Internship program under the guidance of Mr. Tushar Goyal,Operations head, Smart Careers a division of Career Launcher. 3
  4. 4. AcknowledgementsWith great pleasure, I express my heartiest thanks to Prof. Ranjita Gupta for giving me anopportunity to work under her guidance. She gave me the guidelines that helped me a lot in thepreparation of my research report.I am also extremely grateful to Mr. Tushar Goyal, Operations Head, Smart Careers forhelping me and providing me with the useful information. By regularly interacting with him, Ilearnt few facets of Educational Industry and I am sure the knowledge imparted will go long wayin enriching my career.The project could not be completed without their support and guidance. Thanking them is a smallgesture for the generosity shown.I express my thanks to all the respondents to whom I visited, for their support and valuableinformation, which has helped me in the completion of my research project work. I express mysincere gratitude to my parents, friends and all those who have directly or indirectly inspired andhelped me to complete my project with unremitting zeal and enthusiasm. 4
  5. 5. TABLE OF CONTENTS1. ABSTRACT ................................................................................................................................... . 82. INTRODUCTION ........................................................................................................................... 113. UNDERSTANDING THE PRODUCT AT SMART CAREERS ............................................. ….18 3.a.1. PRODUCT CLASSIFICATION ……………………………………………………..19 3.a.2. PRODUCTS & PRICES……………………………………………………………...21 3.a.3. PRODUCT FEATURES ……………………………………………………………. 224. IDENTIFYING COMPETITORS: .................................................................................................. 23 4.b.1.COMPETITOR ANALYSIS: ....................................................................................... 24 4.b.2.COMPETITORS PRODUCTS & REACH: ................................................................ 25 4. b.3. MARKET SHARE ANALYSIS……..………………………………………………265. MARKET LEADER ANALYSIS:................................................................................................... 28 5.1. I.M.S................................................................................................................................ 29 5.2. EDUMENTOR …………………………………………………………………………316. PROMOTIONAL STRATEGY FOR SMART CAREERS:………………………………………33 6.1. INTRODUCTION:……………………………………………………………………..34 6.2. SEGMENTING , TARGETING & POSITIONING …………………………………..37 6.3. ANALYZING COMPETITOR PROMOTIONAL STRATEGIES ……………………39 6.4. ANALYZING COMPANYS LIMITATION……………………………………….….40 6.5 METHODS SUGGESTED…………………………………….………………..41 6.6. SALES FLOW CHART…………………………………………………………….......437. BUSINESS DEVELOPMENT:…………………………………………………………………….44 7.1. BUSINESS DEVELOPMENT AT CENTRAL DELHI CENTRE ……………………45 7.2. MEASURING EFFECTIVENESS OF PROMOTIONAL TOOLS ……………………46 5
  6. 6. 8. CUSTOMER SATISFACTION SURVEY:……………………………………………………….47 8.1 FINDINGS ……………………………………………………………………………….569. LEARNING FROM THE PROJECT:……………………………………………………………..5810. CONCLUSION & SUGGESTIONS:…………………………………………………………….6111.ATTACHEMENTS ……………………………………………………………………………….6312. REFRENCES ……………………………………………………………………………………..6813. GLOSSARY ……………………………………………………………………………………...69 6
  7. 7. LIST OF ILLUSTRATIONSA) List of figuresS no. Title 1. Growth of major players in the market……………………………………20 2. Types of sales promotion………………………………………………….28 3. Sales flowchart ……………………………………………………………36 4. Effectiveness of marketing tools …………………………………………39 5. Appendices ……………………………………………………………….57B) List of tablesS no. Title 1. Programs & prices at Smart Careers ………………………………………14 2. Product Features ………………………….……………………………….15 3. Competitors products & reach ……………………………………………18 7
  8. 8. ABSTRACT 8
  9. 9. The project deals with learning of Business environment of education sector with prime focus onBusiness development of the organization & its products. It is followed by understandingconsumer behavior & Competitor analysis which will benefit the organization by increasing itsmarket share in the future. Thorough analysis of marketing strategies used by differentorganizations in the sector has been done.Project implementation is in the following order: 1. Studying the education industries & understanding their trends. 2. Understanding the functions & operations of different departments of the organization & identifying their products in the market. 3. Identifying the market leaders. 4. Sales & Marketing of the existing products by studying consumer buying behavior. 5. Understanding the promotional strategies used by market leaders & identifying the strategy best suited for the organization. 6. Critical Competitor analysis to make peer comparisons of the companies strategies. 7. Managing activities of a full fledged operational centre ( Connaught Place ) 8. Qualitative survey so as to understand consumer’s needs & expectations.Work executed at different stages of the project has been mentioned below:To have an insight of the industry, I first started understanding the services & products of theorganization during my initial training days (8th – 12th Feb. 2011).Promotion & marketing started after the training & continued till the end of the project work.As a beginner initially I gathered all the information about the industry and the organization.During the training period of 5 days I got a chance to interact with the top executives and chiefmentors of the organization, who introduced me to their products and briefed me about theirservices. Identification of market leaders was done by analyzing previous year’s statistics. 9
  10. 10. Segmenting & profiling of potential customers was done. Segmentation was done on differentparameters. Understanding consumer behavior, their buying pattern and marketing the productsto them was done.In the middle I studied the market leaders, competitors, their evolution & comparativecomparison of their marketing & promotional techniques with that of the organization.Handling the operation of the Cannaught place centre was given to me after this. This operationalso continued till the end of the project. Issues of renovation work were there in the beginningbut now the centre is operating well.In the final stage learning of each stage of the project work was used for a qualitative survey.Latest up to date information of the organizations & effective tools of marketing research likeghost shopping, questionnaire research, customer feedback, etc. have been used. 10
  11. 11. Chapter 1INTRODUCTION 11
  12. 12. With dramatic increase in demand for professionals in almost all spheres and good qualityeducation becoming an avenue to success, private coaching institutes have mushroomed acrossthe country in recent years, becoming an industry worth thousands of crores of rupees. The trendof group tuition is also becoming popular. In fact, some classes and group tutors have tie-up withcolleges, as a result of which these colleges recommend only particular institutesIndia’s youth, often referred to as its demographic dividend, accounts for over 50 per cent of itstotal population, with 367 universities and 18,000 colleges with half-a-million teachers and about11 million students on the rolls, India could reap huge returns off its demographic dividend.Industry experts say coaching institutions imparting only engineering education to make waysfor Indian Institutes of Technology (IITs) in lead metropolis collectively earn an annual turnoverof Rs 10,000 crore per annum from nearly six lakh aspirants that appear for these exams.It is believed that based on the current and future manpower requirements of the various sectors;there is a huge demand-supply gap in the education space. This has attracted many players toinvest in education and training institutions with the aim of building valuable franchises that canbe rapidly scaled up.Company’s Profile: Career Launcher India Pvt. Ltd.Career Launcher India Limited (CL) is Asia’s leading education service provider withpresence in over 130 locations across India, Middle East and the United States. CL provides test-prep education to enable school and college students gain admission to professional courses. It isalso actively involved in the field of mainstream education, mainly through its growing networkof play schools and secondary schools. Today over 400+ academicians and professionals around theworld work with CL to counsel and groom over 50,000+ students across the globe . It is aleading education corporate providing world class education services in South Asia with annualturnover touching Rs 150 crores. With over 15 years of experience in the education sector, the organization has movedfrom being a purely test prep based company, to three distinct areas of education services- testprep, mainstream education and employability training. The education industry is estimated to becurrently in excess of 150,000 crores & is growing at a steady 16%+ every year. It continues tobe the highest non -food expense pan South Asia. As part of their growth and expansion plans,they are looking for partners in the MENA (Middle East and North Africa) regions 12
  13. 13. Smart Careers: (A Career Launcher division)Smart Careers which became a division of Career Launcher India Limited in 2009 wasstarted in the year 1990. It was started by chief mentor of the company Mr. Virendra Khanna(V.K), who was ex-H.O.D of Shaheed Sukhdev College of Business Studies (CBS) for past 20years. A coaching institute which initially started as a small classroom on terrace today has totalof 21 locations all across Delhi and N.C.R with the head office being located at Cannaught Place.They have been responsible for training several thousands of students in the last 20 years byexpanding their domain knowledge & by introducing varied preparation modules for media, law,hospitality & IT entrances after 10+2.The company has more than 60 MBA graduates (full time & interns) (called as Mentors of thecompany) working with them.As a result of VK’s continued association with CBS; faculty, content & pedagogy at SmartCareers was especially tuned to be suitable to 17 year olds’ learning needsattention for all its students.Company vision:Smart Career is the only specialised BBA/BBS/BBE Entrance Coaching Institute with anexpertise of more than two decades. A lot of things are constantly changing at Smart Careers tokeep pace with the changing times. But one thing that has not changed is our compassionatefocus on how a 17 year – fresh –out–of–school student is different (almost fragile) as comparedto his graduate counterpart & how he can be trained to crack the toughest entrances in thecountry. 13
  14. 14. Scope of the project: SMART CAREERS has been in the existence for as long as 20 years. It has nice grip over the market as compared to its counterparts but threats of new entrants like Edumentor, Pratham Educational services and old players like I.M.S & T.I.M.E is present there. The project has been undertaken by keeping business development of the organizations as the prime focus. The project report will give the organization a view of the current market trends. The fact and information provided in the report would give the company opportunities to expand their business & counter the threats of its competitors. It will help the organization increase its efficiency by learning effective promotional strategies implementing them & shelving old ones. Product development at the organization meeting the changing requirements of the customers will be taken into consideration during the course of the project. As during the project I will b involved in selling & marketing of the organization products, it will also help me to understand the consumer buying behavior. S.T.P analysis would be done to explore new segments thereby providing the company with an opportunity of business development and hence increasing their market share. Surveys conducted towards the end would help us to know customer satisfaction level, and effectiveness of current promotional tools used by the company. Apart from this, it will also help me in shaping my knowledge about the education sector. Methods or Tools used: The methodology followed comprises of a brief study of the evolution of undergraduate management entrance test preparation markets and its growth in India. 14
  15. 15. Business development strategies As a part of business development strategy various activities like Board center activity, public relations, would be conducted throughout Delhi/N.C.R in order to reach the target audience. Collection of information from all possible sources to understand the organization products, competitor offerings would be done. Promotional techniques used by them would be studied. Profiling Collection of primary & secondary data, its analysis & profiling of the potential customers would be done by telecalling. Ghost shopping In order to gain insights of the strategies of competitors a study would be conducted to gain knowledge about the business model of various competitors like T.IME, I.M.S, Edumentor, etc. On its basis competitive promotional strategy for Smart Careers would be developed. Ghost calls would be made to understand the products of competitors and their unique selling point. Relation building Interacting with class XII students and their parents in order to get an idea of what all they expect from an institute preparing for BBA/BBS/BBE entrance exam and also to brief them about various options one has after XII.This will be done by:a) Conducting counseling at all centers.b) Counseling parents & students over phone by telecalling.c) On the day of the Board exams, interacting with the parents, do short term counseling and give them brief knowledge of our product and services we offer. 15
  16. 16. Marketing research: The help of questionnaire & surveys would be taken to conduct this operation. This would be done towards the end of the project as the company feels it would hinder the operations if conducted during the peak sales season. Direct Sales : Individual counseling of parents & students would be done to brief them about the product & services offered by the company & ultimately make the enrollments by convincing them about the products. This will benefit the company financially. Project Limitations:The major constraints or limitation of the project is given below: Primarily the project requires a lot of secondary data & the availability of this data forms the limitation also the precision of the data collected cannot be measured. The results and conclusions of the project cannot be generalized as my area of work is restricted to central zone. Exact information about no. of products sold by the competitors would be out only after end of the sales season. ( i.e. ; June end ) 16
  17. 17. Values added to the organization: Finding out new products & courses in the industry. Business development of company Finding out loopholes in the organization structure Finding products of the competitor & their promotional strategies Finding customer perception about the industry, products & factors affecting their selection. Helping out the company in knowing the latest tools being used by market leader to survive in the market. 17
  18. 18. CHAPTER 2UNDERSTANDING PRODUCT AT SMART CAREERS 18
  19. 19. CLASSIFICATION:The main business of Smart Career is of providing specialized coaching to students preparing forundergraduate exams. The organization represents itself as a career development institute bymentoring young class 12th passed out students. Its core competency lies in counseling &mentoring young students to choose the right career path for themselves. Their products cater to most of the undergraduate streams. Thecompany basically deals in the following undergraduate streams: I. Management II. LawIII. MediaIV. Hospitality V. Information technology All the above degrees are three year full – time course for which coaching is provided in a classroom format. Providing coaching in the above streams forms the products for Smart Careers. Coaching for each of the courses above is itself a product of the organization. All the streams in detail are discussed below: I. Management – This stream deals with all the management courses at the undergraduate level. Courses which fall under this stream are BBS, BBA, BFIA & BBE. BBS is the management degree provided by Delhi University (D.U). The same management degree provided by Indraprastha University is known as BBA. One major difference between both these courses is that for writing a BBS exam a student compulsorily needs to have mathematics as one of his subject in class 12th. A BBS/BBA provides students with knowledge of business environment & managerial skills required 19
  20. 20. to survive in the business world. BBE degree is the study of business economics. It is the learning of product & services of the country & gives an idea of economy. BFIA degree stands for Bachelors in Finance & Investment Analysis. This course was designed by the chief mentor Mr. Virendra Khanna himself. It is more towards financial learning of management. All the above courses are professional degree courses having more weightage in the market as compared to other traditional degree courses. A professional degree course guarantees a job, while a traditional degree course has to be completed by undertaking a professional course to find a job. Being a professional course it ensures a healthy balance between theoretical foundation and practical exposure to the present day business world. It transforms a student into a corporate personality. II. Law - Law preparation is for students who plan to become a legal advisor, corporate lawyer, Magistrate, Judge, Litigation expert etc. Degrees which fall under this course are LLB, BALLB, and BBALLB. For law preparation there are separate modules for legal aptitude which is added to the syllabus. For this module separate workshops are arranged in the middle of the course for the students.III. Media - This course is widely popular among youngsters. A student opting for this course can land of become a TV reporter , Journalist , Film editor , Radio jockey , script writer , wildlife photographer ,etc. Degrees falling under this course are BMMMC, BJMC. This stream mostly attracts the female customers.IV. Hospitality – career options in hospitality industry are Front desk executive , food connoisseur , PR executive , Chef , etc . Special 10 workshops are arranged for this course. 20
  21. 21. V. Information Technology – Students with interest in computer & those with computers as optional subject in class 12th can opt for this course. With the increasing popularity of software and computers among the students this course also sells itself good.Products & Prices: PRODUCT PRICE (Rs.) BBA/BBS/BFIA/BBE 9,900 LAW 11,900 MEDIA 11,900 B.C.A 11,900 HOSPITALITY 11,900 BBS GRILL 13,900The Management product (i.e., BBA/BBS/BFIA/BBE) is priced at Rs. 9,900 at all its 19centers. A customer buying it can prepare for any or all of the four courses together at the sameprice.Law, Media, B.C.A & Hospitality packages are each priced at Rs. 11’900 if purchased alone.A customer buying two of these courses together can get it at a discounted price of Rs. 13,900i.e. for each additional course on the package he needs to pay Rs. 2,000 extra.BBA Grill one of the exclusive products of Smart Careers is aimed at the premium customers.This product priced at Rs. 13,900 has added benefits of extra 25 hrs. of teaching along withspecial G.D/P.I sessions for the customers. This product is currently offered at only one of the 21
  22. 22. centers i.e. Connaught Place. Since I was the centre manager for this C.P, I was mostlyinvolved in marketing & selling this product. The main reason of selling it at C.P centre was toattract the premium class crowd as C.P is known as hub of shoppers and buyers.Product Features: FEATURES STUDY KIT , BOOKS REFERENCE MATERIAL WORKSHEETS CLASS ASSESMENT TESTS 57 MOCK TESTS G.D/P.I TRAINING SIMULATED TESTSThe reference materials, books, study kit is provided to the customer at the time of enrollment.Worksheets are distributed everyday. Mock tests, simulated and assessment test are conductedat regular interval. A G.D/P.I session come only with the BBS GRILL product and is giventowards the end of the course. All the products are complete classroom programme. The advantage of having Mr. Virendra Khanna, CBS ex- H.O.D as the chiefmentor of the company provides it with extensive knowledge of the product and process. Ithelps the company to gather the best in town faculty for teaching the above mentioned course. 22
  23. 23. CHAPTER 3IDENTIFYING COMPETITORS 23
  24. 24. COMPETITOR ANALYSISCompetitor analysis is a critical part of a firms activities. It is an assessment of the strengths andweaknesses of current and potential competitors, which may encompass firms not only in theirown sectors but also in other sectors. Directly or indirectly, competitor analysis is a driver of afirms strategy and impacts on how firms act or react in their sectors. Analysis is an essentialcomponent of corporate strategy; most firms do not conduct competitor analysis. They operateon what is called “informal impressions, conjectures, and intuition gained through the tidbits ofinformation about competitors every manager continually receives.” As a result, it places manyfirms at risk of dangerous competitive blind spots due to a lack of a complete competitoranalysis.In utilizing competitor analysis as part of strategy formulation, firms are able to adapt or buildtheir own strategies and be able to compete effectively, improve performance and gain marketshare in their businesses. In a large number of instances, firms are able to tap new markets orbuild new niches. In any business the main motive is to offer something better than thecompetitor.Competitor analysis framework focuses on four key aspects: Competitors objectives, Competitors assumptions, Competitors strategy, Competitor’s resources and capabilities.List of competitors according to their ranks is given below:- Rank 1: IMS Rank 2: SMART CAREERS Rank 3: EDUMENTOR Rank 4: T.I.M.E Rank 5: CAREER LAUNCHER Rank 6: P.T. EDUCATIONS Rank 7: PRATHAM Rank 8: CAREER POINT 24
  25. 25. Competitors Products: IMS CAT , Management , LAW , MEDIA , B.C.A , etc. EDUMENTOR Management , Law , Media , Mass comm., CA-CPT , etc T.I.M.E CAT , Management , LAW , H.M P.T EDUCATION CAT , Management , LAW , H.M , etc CAREER LAUNCHER CAT , LAW , H.M ,Management , etc PRATHAM Management, B.Ed., H.M, etc.Competitors Reach: I.M.S NATIONAL EDUMENTOR DELHI/NCR T.I.M.E NATIONAL P.T EDUCATION NATIONAL CAREER LAUNCHER NATIONAL PRATHAM WEST DELHI/GURGAON SOURCE: author compilation from various sources 25
  26. 26. Market shares of major players in the market for last year: COMPANY PRODUCTS SOLD I.M.S 3700 SMART CAREERS 1600 EDUMENTOR 1800 T.I.M.E 1250 P.T EDUCATION 850 PRATHAM 900 Source: author compilation of various secondary sources Market share of major players for the current year: COMPANY PRODUCTS SOLD I.M.S 3900 SMART CAREERS 1450 EDUMENTOR 1700 T.I.M.E 1300 P.T EDUCATION 800 PRATHAM 500 Source: author compilation of various secondary sources 26
  27. 27. 4000 3500 3000 2500 IMS 2000 SMART CAREERS 1500 EDUMENTOR TIME 1000 500 0 2010 2011Source: Author compilation of various secondary sources 27
  28. 28. CHAPTER 4MARKET LEADER ANALYSIS 28
  29. 29. From the facts & information collected from various primary & secondary sources, it is quiteclear that I.M.S, Edumentor & T.I.M.E are the top competitors of Smart Careers. Profiles ofthe following institutes have been given below:IMS- 1. An institute with over 34 years of experience in shaping success stories. 2. Leader in Management Entrance training. The institute has been ranked 4th in the education sector and 44th amongst the Top 50 Most Trusted Service Brands across India 3. IMS has spread its wings across India with more than 140 centers and over 50,000 students, successfully making it to some of the most prestigious institutes in India and abroad. 4. People get into the best colleges after completing their classes in IMS. It is an institute with maximum no. of enrollments in consecutive years 5. For a normal management package there are total of 46 sessions : 1 Preliminary Test, 1 Goal Setting Session, 12 sessions for Quantitative Aptitude, 8 of English, 12of Reasoning, 8 sessions for General Awareness & 8 sessions Business Awareness and 4 sessions for Assessment Their marketing mix: PRODUCT – It has product for both for both undergraduate level and post graduate level. PRICING – The pricing of I.M.S products are slightly high as compared to other players in the market. Major factors influencing I.M.S pricing is its brand value & quality service. Its pricing strategy is mainly dependent on Demographic factors (mainly income). Price of their basic product is around 11,500. 29
  30. 30. PROMOTION – IMS unique selling point is its brand image all over the country. During their promotions they make sure that masses get to know about the fact that they are the market leader. Their previous year results reflect the quality service offered by them. Being a major player of the industry it enjoys Brand Reorganization, high financial resource back up. Capital intensive promotion is employed by them. They use the following above the line promotional strategies: I. Media promotions such as Radio Ads - Their belief is that a radio add reaches the houses in cities as well as towns. II. News papers – One of the most effective promotion tools of all the time .Vastly used for promotions in education industry. III. Telemarketing – Both in form of calls and SMS’s IV. Internet Ads – Social networking sites, blogs, paid ads, etc. V. Banners – Putting logos & banners outside schools , colleges , metro stationsBelow the line marketing strategies used are: I. Sales promotion – Which boasts up the morals of employees and fosters a competition among them to perform better. II. Outdoor publicity On the whole I.M.S uses more of capital intensive strategies. With a good financial backup the company focuses well on above the line promotions and not on below the line promotions. PLACE – The scale of operation is nationally. With a good reach in all the major cities of the country I.M.S has its network in all the four zones of Delhi & NCR. 30
  31. 31. Edumentor-1. Edumentor is a specialized self funded institute for BBS / BBA / BBE entrance exam preparation. With the highest success ratio in Shaheed Sukhdev College of Business Studies (SSCBS), 91.7% got final offer from renowned BBA institutes and 72.7% got multiple offers from various BBA colleges2. Course material and the creative teaching tools are developed by the team of SSCBS and IIT, Delhi based on the latest trends in entrance test3. Although it is a small firm but it is fastest growing coaching centre ever (according to data provided by them). Edumentor is just six years old and is now threatening the business of Smart Careers.Being new to the field of education and coaching, Edumentor has grown a lot in the last sixyears. Established in 2006 with only 1 branch in East Delhi and 35 students, it has grown to17 centers across Delhi and NCR and more than 1800 students .In 2010 it has obtained thesecond spot in BBA coaching institutes across Delhi and NCR. Customer base growth for Edumentor – YEAR STUDENTS 2006 35 2009 900 2010 1800 Source: author compilation from various secondary sources This organization has shown a customer growth rate of over 300 % compared to previous year. 31
  32. 32. Their marketing mix: PRODUCT - It serves undergraduate level products. It has stretched its network with providing coaching for accountancy & CA-CPT class & Bank P.O exams preparation. Starting in the year 2006 with just one product in the market, they are serving for most of the undergraduate level courses. PRICING – Its products are priced quite high as compared to its counter associates. Price variation is based on demographic factors ( income , education) A basic product at edumentor costs Rs.12, 500 +Rs.1000 (for add on). PROMOTIONS – Their promotion strategy is a mix of both above the line & below the line strategies .Since being a new player in the market & lack of financial support majority of promotions is labor intensive. Using only few but effective capital intensive tools have moved Edumentor top in the charts. Few of the promotion techniques used by Edumentor are: I. Radio ads II. Internet adsIII. Posters , bulletin boardsIV. Board centre activity ( Different from Smart Careers ) V. Bank centre activityVI. Telemarketing Young & Fresh minds in the company have experimented with the right promotional strategies which has brought Edumentor to such heights. PLACE - The company had a single centre in east Delhi in the year 2006. It has good network today with total of 19 centers across Delhi & NCR. 32
  33. 33. CHAPTER 5PROMOTIONAL STRATEGY FOR SMART CAREERS 33
  34. 34. INTRODUCTIONThe major work that I was assigned was to understand the company objectives, its customers,company limitation and then to decide a marketing strategy for the organization which wouldincrease its brand awareness and ultimately lead to its business development.There are basically two categories of sales promotion:Above the line sales promotionAbove the line is a type of advertising through media such as TV, cinema, radio, print, bannersand search engines to promote brands. Major uses include television and radio advertising, weband Internet banner ads. This type of communication is conventional in nature and is consideredimpersonal to customers. It differs from Below the line advertising, which believes inunconventional brand-building strategies, such as direct mail and printed media (and usuallyinvolve no motion graphics).These strategies require huge amount of investments and aremajorly Capital intensive.Below the line sales promotionsThese are short-term incentives, largely aimed at consumers. With the increasing pressure on themarketing team to achieve communication objectives more efficiently in a limited budget, therehas been a need to find out more effective and cost efficient ways to communicate with the targetmarkets. This has led to a shift from the regular media based advertising. These strategiesinvolve high level of ground work involving manpower and hence are more of Labor intensive. 34
  35. 35. MOBILE PHONENEWSPAPER RADIO Above the line promotionsINTERNET TELEVISION BANNERS, ADS Endorsement Product Public placement relation Below the Sponsorship line Trade show promotion Personal Direct mail selling Sales promotion 35
  36. 36. Before starting promotions, sales forecast is done to decide the amount to be spent on thepromotions based on the revenue expected from the product. Successful advertising depends onknowing the preferred methods and styles of communications of the target markets that has to bereached with the ads.STEPS FOR DEVELOPING PROMOTIONAL STRATEGYThe steps involved in developing strategies for SMART CAREERS can be enumerated as:-  1:Understanding company objective  2: STP of the organization  3:Analysing competitor promotional strategy  4:Analyzing organization limitation  5 : Selecting effective methodsUNDERSTANDING COMPANY OBJECTIVEMajor objective of Smart Careers for conducting promotions are:-  Understanding consumer buying behavior & their needs  Hit the target audience in cost effective manner  Create Brand Awareness for the company nationally.  Create competitive advantage  Increase in the customer base  Positioning for company in the mind of target audience  Generating sales 36
  37. 37. SEGMENTING TARGETING POSITIONING OF THE ORGANIZATIONSEGMENTATIONA segment is a group sharing one or more characteristics that cause them to have similar productand/or service needs.A true market segment meets all of the following criteria: It is distinct from other segments (different segments have different needs) It is homogeneous within the segment (exhibits common needs) It responds similarly to a market stimulus It can be reached by a market interventionBASIS OF SEGMENTATIONSegmentation of an organization can be done depending on many variables: Demographic age ,gender , family life cycle, education , income, occupation socioeconomic, religion, nationality , language Geographic Region ,country , Climate Psychographic Attitude , personality ,life style Behavioral product usage rate, brand loyalty, product end use readiness-to-buy , profitability, income status 37
  38. 38. SEGMENTATIONSmart Career defines its segment on the basis of Demographic Variables, i.e. age, educationand income. The management coaching is provided at undergraduate level, so students arerequired to be segmented on their age i.e.; 17-18 age group, their educational specialization i.e.Science, Commerce, and Arts etc. Income of family helps to segment the students and thusfacilitates Smart Careers to plan its target audience more accurately.TARGETTINGFor any organization serving all the segments is not possible , so specific segments have to betargeted which can be most beneficial for the organization .Smart Careers decides its targetaudience to be students of Class 12th which comprises of commerce students who are interestedin management courses, that is, mainly students who do not expect a percentage beyond 95%.Apart from this, students with specific interest in Law, Media, Hospitality, etc. are also targeted.The parents of these students act as the Opinion leaders and Decision makers & at a later stagein the season as target audience too.POSITIONINGIt is the process by which marketers try to create an image or identity in the minds of their targetmarket for its product, brand, or organization. Most of the competitors serve more than onesegment, with no clear positioning of a specialist management coaching institute. Many playershave positioning in terms of Quality-Prices model, others on basis of faculty and so on, but noplayer in the market specifically focuses on management coaching at undergraduate level. Thisforms as the core advantage of the product and the service provided at Smart Careers. So, thecompany decided to position itself as the “Only specialist institute for management coaching atundergraduate level”. 38
  39. 39. ANALYZING COMPETITOR PROMOTIONAL STRATEGIESAfter conducting S.T.P of the organization it is required to analyze the strategies used bycompetitors, considering both old and new players in the competition.Strategies adopted by competitors are:Most of the players are national level player enjoying high brand awareness in Delhi and NCRregion. One or two players like Edumentor, Pratham operate at local level & are growing at analarming rate. They can be threat for the organization in the future. Being a major player of theindustry it enjoys high financial resource back up and the study of their promotional strategiesportray that they conduct Capital intensive promotions. Few of above the line marketingstrategies used by the competitors are: 1. News paper ( used throughout the season, with varying intensity and updated offerings with respect to change in market conditions ) 2. Mobile ads (bulk SMS , to create buzz among the masses ) 3. Telemarketing ( most common tool used by any organization ) 4. Internet ( requires high investments , mainly used by old players ) 5. Banner ads ( used by both old & new players ) 6. Television ( used by I.M.S , tying up with local cable operators ) 7. Radio ads ( during start of the season )The local players in the market are restricted to use Labor intensive strategies but its drawbacksare that it gives relatively a cheap image of the organization. 39
  40. 40. Few of the labor intensive strategies are: 1. Direct sales 2. Sales promotion 3. Endorsements 4. Public relations 5. Trade show 6. Person sellingANALYZING COMPANY LIMITATIONSCompany’s limitation has been: Time Constraint: The first challenge which was there before devising the business development strategy was the time constraint. The target market i.e. the class XII commerce student is busy with their board examination in the month of March. This the time when the promotional activity is at a full swing because after the completion of the board examination, students opt for different institute for their entrance exam preparation. So the effective time of promotion is around two months in which we have to build the brand name and adopt different strategies to make a strong brand recall. H.R.: The next major constraint for the promotional campaign was the insufficient Human Resource availability as the majority of the people were inexperienced and had to be trained in the limited span of time. TRADITIONAL METHODS: In the age of internet media and TV ads, company still follows the old traditional methods; this is one major drawback in the organization. 40
  41. 41. STEP 5: Methods suggestedAnalyzing all the above factors , right mix of both above and below the line marketing strategieshas to be used to generate positive leads .Few of the methods which can be introduced orcontinued further are : Direct mail: Mails were sent directly to the customers(children giving board examinations) highly customized, giving them tips regarding boards and information about form details of entrance exams with an immediate calling helpline to generate response. Educational newspaper (booklet distribution) Newspaper distribution in form of sample papers and informational booklets formed the basic and the most important promotional activity for the company. The distribution was done in the main promotional activities of the company:  Board Centre activity:- The board center activity is one of the major business development and promotional activity of Smart Careers. The activity was designed in such a way that maximum number of target audience can be covered in the limited span of time. It was a four day activity in which we were supposed to cover maximum number of schools in our assigned zones (Central Zone in my case), which were the centers of class XII board examination. The work schedule of the activity includes: Information newspaper & Booklet distribution to students and parents Database collection of both parents The same activity is conducted by Edumentor too. But they are more focused on counseling of students during this phase while Smart Careers focuses on inviting customers to an educational seminar, where the can later counsel parents. This activity reflects good image of the organization to the masses. 41
  42. 42. Telemarketing: The use of telemarketing is on the rise as the response rate incomparison to other promotional tools is very high. This activity is carried throughout theoperation phase. All the work done during the outdoor publicity lead to collection of hugestudent data, the dedicated quality managers managed to ensure that the data is real andnot fake. The telecallers were planned to convert this data into the final sales enrolment.Counseling script with all basic information were designed so to make the work modeaccurate and accountable.Bank Centre Activity: Started by Edumentor, one of the most effective strategies ofhitting the right customers at the right time. In this the organization tie – ups with majorbanks where forms of entrance exams are available. Customers are counseled on the spot.Internet: One of the most effective tools used in the modern world. Blogs, paid ads,social networking sites are big hit and generates good no. of positive response from thecustomers. 42
  43. 43. Sales Flowchart : Checking of the Collection of database by quality Database managers Walk-in(student or Outgoing Calls made his/her parents) to generate a WALK- attend counselling IN session Student gets enrolledDuring my term, I was involved in each of the activity of the sales flowchart. Collection ofdatabase was done by me during the board centre activity, checking of database was done in theinitial months to track potential customers. Telemarketing, counseling & enrollments were donetill the end. 43
  44. 44. Chapter 6BUSINESS DEVELOPMENT AT CENTRAL DELHI CENTRE 44
  45. 45. After completing major part of promotions for the company, in the mid of March I was assignedthe responsibilities of Connaught Place centre. I was designated here as the Centre Manager.Smart Careers have had maximum enrollments at this centre thus to continue this record for thecompany was a great challenge for me. Since, product price at this centre is quite high ascompared to other centers; it is ensured that this centre has maximum product satisfaction fromthe customers. Batches at this centre have been given the name of Grill Batches. At thiscentre special batches of BBS preparation named Grill Batches are conducted , which offercustomers with extra teaching time & exclusive group discussion & personal interview sessionsby Mr. Virendra Khanna.The main activities at the centre were: Responsibility for exclusive Grill Batches product. Promotion of the center Training of associates Database checking Meeting target of enrollments for C.P centre Handling customer grievances Generating revenues by counseling & selling Account maintenance , inventory check Conducting classes & tests Communicating with other centre managers Finance handling for the centre To generate references from enrolled students by Snowball technique.Throughout this I learned the various entrepreneurial activities involving comprehensive learningof the business environment. The basic target for the central zone was to increase the enrollmentsor the selling. 45
  46. 46. Measuring effectiveness of promotion tools of Smart Career:The company has restricted us from conducting surveys within the organization during theoperational period. A rough estimate of effectiveness of promotional tools can be measures byconsidering the enrollments forms filled by the students during their enrollments. Thisenrollment form has a section which gives us the information as to how the customer got toknow about the company. Results of 400 forms collected from C.P centre & other centers were examined and the resultsare tabulated below: How the students got to know about Smart Careers Sample educational 0.4 0.1 newspapers Seminars 2.9 Telecalling 5.1 Counselling 1.5 OthersSource: author compilation from various secondary source 46
  47. 47. CHAPTER 7CUSTOMER SATISFACTION SURVEY 47
  48. 48. Customer satisfaction surveys provide the tools to improve organizational performance &profitability. Customer loyalty & satisfaction levels can be determined by analyzing the datagathered from our survey questions. It can help the organization with the following: Discover new product & service development ideas Determine what makes your customers loyal Understand customer issues & relationship to your employees Achieve a competitive edge with satisfied customersFor the research, a survey of 15 questions was formed and 40 respondents (Smart Careers’students & parents) were surveyed. The analysis below shows the findings of the questions thatwere asked in the questionnaireQ1. Which course did you enroll for? BBA/BBS LAW MEDIA H.M B.C.AThe survey shows that 83% of the students joined Smart Careers for the preparation ofBBA/BBS entrance exams while 1% each for the preparation of B.C.A & MEDIA while 2% forHospitality entrance exam & 13% for LAW. 48
  49. 49. Q2. What do you like most about smart Careers?48% of the students liked test series, 28% liked the faculty of Smart Careers while 14% liked thestudy material.Q3. Did you get proper motivation from teachers?71% of the students were satisfied with the motivation from the faculty. 49
  50. 50. Q4. Did the center manager communicate important information timely?90% of the students were satisfied with the information provided by the centre managers whereas only 2% was dissatisfied.Q5. Was syllabus of all the subjects finished on time? 50
  51. 51. 74% of the students were not satisfied with time taken for the completion of the syllabus ofvarious subjects whereas 26 % were satisfied.Q6. Did the faculties helped in solving the doubts?94% of the students were satisfied with the faculty in solving their doubts.Q7. Do you think that sufficient numbers of classes were allotted for all the subjects?73% of the students were not satisfied with the number of classes allotted to the various subjects. 51
  52. 52. Q8. Were classes held on time?86% of the students were satisfied with the scheduling of the classes.Q9. How do you rate overall faculty?43% of the students rated the faculty as good and only 14% rated them as poor. 52
  53. 53. Q10. How do u rate study material?71% of the student rated study material as good.Q11. How do you rate test series?86% of the students rated the test series as good and very good. 53
  54. 54. Q12. How do you rate infrastructure?The infrastructure was rated as poor by 57% of the students.Q13. Were your problems/ issues taken seriously? 54
  55. 55. The students were moderately satisfied with issues handling by Smart Careers with 57% of thestudents being satisfied.Q14. Did you like the management at smart careers?71% of the students were satisfied with Smart Careers’ managementQ15. Will you refer Smart Careers to your friends/relatives in future?71% of the students were not satisfied with Smart Careers as a whole and would not refer it totheir friends and relatives. 55
  56. 56. FINDINGS - 1. Research shows that majority of students enrolled opted for BBS/BBA (Management) course .Development of this particular product stream can be thought of as it accounts for almost 80% revenue generation. 2. Since Media & B.C.A products did not get enough public response, new streams such as fashion designing, M.B.A, B.Eled. , Bank P.O, etc. courses can be considered for inclusion in the product range. 3. After interviewing parents it was found that the major factors which influence their decision of choosing a coaching institutes are : Quality of education ( past records , brand image ) Product price Infrastructure Course features Faculty qualification After sales service 4. It can be seen by the customer satisfaction survey that most of the students were not happy with the infrastructure conditions at the various centers. It is because Smart Careers doesn’t have any infrastructure of their own, they are using the facilities of the local tuition centers in various areas without checking the facilities there. Therefore, there should be certain parameters which every centre should satisfy before getting a brand name of Smart Careers. 5. Tools like sponsoring events, conducting school counseling and conduction of carries counseling seminars may increase the interaction of students with the organization. 6. As Smart Careers is active only for 5 months from January – May and rest of the seven months are enough to forget a brand name that’s why every year they start from scratch. So if rest of the year they conduct programs like Language course or PDP course it would 56
  57. 57. be better to run the business for a year and people will be connected to the company and the extra expense that company invest for marketing, it won’t be there.7. According to the students, the syllabus of most of the subjects was not completed on time and sufficient number of classes was also not allocated to most of the subjects. This has led to students not referring Smart Careers to their friends and relatives; this is a very serious issue on which Smart Careers has to pay much heed on. 57
  58. 58. CHAPTER 8LEARNING FROM THE PROJECT 58
  59. 59. By far the project has given me immense exposure of the marketing environment & theeducation sector. There has been learning at each stage of the project. Lot of responsibilitiesduring the project has helped me to explore the industry completely.Few of my learning at the organization have been listed below:From BUSINESS: I. Understanding education industry and their trends. II. Competition in Education industryIII. Understanding organizational structure & their responsibilities.IV. Employer & Employee relationship V. Business development activitiesVI. Flexibility for learning different skillsFrom INDUSTRY: I. A little variation in the pricing strategy of the competitors may divert lot of customers. So, a continuous check over competitor’s products & prices should be kept. II. In an education industry which has a seasonal operation, promotional strategies are needed to be updated almost every other day to have an edge over the competitors.III. Advertising in the form of educational newspapers is the best marketing tool in the education industry.IV. A good mix of capital intensive & labor intensive techniques should be used in the promotional activity & it should be influenced by the demographic factors. V. Quality of service should be the last resort of any organization.VI. While deciding on promotional strategies or distribution material, nothing should be left on the customer to comprehend; a simple language creates a greater amount of response rather than using bombardic words. 59
  60. 60. VII. Temporary workforce has very low accountability; back up of H.R. should always be present so as to ensure the successful completion of the activity even in case of crisis and back outs.VIII. In outdoor publicity activity is always mentally and physically tiring, hence rotation of workforce to different centers is important to reduce monotony in work. IX. Promotional activities are all about response generation. During this, the masses should get a strong reason to respond. From CUSTOMERS: I. Customer relationship management with new, existing & also with those customers who reject the product. II. Understanding customer needs & dealing with them differently. III. Profiling of potential customers. Other Learning: I. Grooming personality II. Time management III. Team management skills IV. Team player & leadership skills V. Communication & interpersonal skills VI. Conflicts & grievances handling 60
  61. 61. CHAPTER 9CONCLUSION & RECOMMENDATIONS 61
  62. 62. The research work is still incomplete but at this stage following conclusions & recommendationscan be drawn from the findings. o The company is operational on seasonal basis. All the selling, marketing & distribution activities are conducted only for five months (January - June). This intern has restricted the revenue growth of the company for limited period. Hence, the company can bring educational packages that provide the coaching for a year or two year comprehensive test preparation, by which the company will be operational throughout the year resulting in increase of its market share. o Currently there’s only one segment of the audience that has been tapped by the company i.e., students preparing for undergraduate programs. Because of this products offered by the company is also less as compared to its competitors I.M.S, T.I.M.E & Edumentor. Undergraduate courses like CA-CPT, Fashion industry preparation can be added to its product range to increase customer base and for diversifying its operations. o Majority (say, 80 %) of the workforce in the organization is part time or full time interns. Recruitment of the workforce is done on a random basis as the company doesn’t have a responsible H.R division. With permanent employees in the organization cost of training the new employees can be saved. o Employee transfers in the organization during the operational period results in employee demotivation. It should be minimized to boost up employee confidence level. o Incentive based sales will ensure quality work & hard work from the workforce. 62
  63. 63. ATTACHEMENTS 63
  64. 64. APPENDICES Customer Satisfaction Survey1. Which course you were enrolled in? BBS/BBA HM Media Law BCA2. What do you like most about Smart Careers? Faculty Study Material Test Series Others________________3. Did you get proper motivation from the teachers at Smart Careers? Yes No4. Did the centre manager communicate important information timely? Always Only when asked Never 64
  65. 65. 5. Was syllabus of all the subjects finished on time? Yes No6. Did your faculty help you in solving the doubts? Yes No7. Do you think that sufficient number of classes was allotted for all the subjects? Yes No8. Were classes held on time? Yes No9. How do you rate overall faculty? Excellent Very Good Good Average Poor10. How do you rate study material? Excellent Very Good Good 65
  66. 66. Average Poor11. How do you rate test series? Excellent Very Good Good Average Poor12. How do you rate infrastructure? Excellent Very Good Good Average Poor13. Were your problems/issues taken seriously? Yes No14. Did you like the management at Smart Careers? Yes No15. Will you refer Smart Careers to your friends/relatives in future? Yes No 66
  67. 67. 16. Please share your experiences and tell us how we can serve better?Name: _____________________ Address: ______________________ 67
  68. 68. REFERENCES Smart Careers, 2011. Information booklet. IMS, 2011. Information booklet. T.I.M.E, 2011. Information booklet. EduMENTOR, 2011. Information booklet Times of India, 2011. [Advertisement], New Delhi, Bennett, Coleman & Co Ltd. Career & Education Times [2011] , New Delhi Hindustan Times, 2011. [Advertisement], New Delhi, Birla Group. Kotler Philip, 2007.MARKETING MANAGEMENT, New Delhi: Dorling Kindersley (India) Pvt. Ltd. licensees of Pearson Education in South Asia. SPSS Conjoint 14.0PDF file, copyright 2005 by SPSS Inc., Printed in the United State of America. SPSS Conjoint 8.0PDF file, copyright 1997 by SPSS Inc., Printed in the U.S.A Websites :  http://www.imsindia.com [accessed 2 March 2011].  http://www.edumentor.co.in [accessed 2 April 2011]  http://www.en.wikipedia.org [accessed 13 March 2011].  www.businessworld.in[accessed 6 April 2011].  www.smartcareers.co.in[accessed 2 March 2011].  www.careerlauncherindia.com[accessed 2 March 2011]  www.expressindia.com[accessed 6 April 2011]. 68
  69. 69. GLOSSARY BBS:- BACHELOR OF BUSINESS STUDIES BCA: BACHELOR OF BUSINESS APPLICATION BBA:- BACHELOR OF BUSINESS ADMINISTRATION BBE:- BACHELOR OF BUSINESS ECONOMICS BElEd :- BACHELOR OF ELEMENTARY EDUCATION HM:- Hotel Management IMS:- INSTITUTE OF MANAGEMENT STUDIES CL:- Carrier Launcher T.I.M.E:- Triumphant Institute of Management Studies 69
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