This document provides examples of market segmentation analyses for three professional services organizations: MS1, MS2, and MS3. The analyses identify potential target markets and quantify market opportunity sizes. For MS1, the analysis identifies districts with 6-10 schools as the optimal target size and quantifies the potential opportunity in districts meeting this criteria. For MS2, the analysis segments the market by city, rural, suburb, and town districts and prioritizes target states based on current penetration and growth potential. For MS3, the analysis applies quantitative filters to identify target districts and states, estimates revenue potential, and provides indicative recommendations on priority markets.

1. Market Segmentation
Examples
Opportunity

2. Purpose
The purpose of this project is to provide a
market research study that will provide a
better understanding of the market
landscape opportunity of the professional
services offered

3. Market Research
Background

4. This market research is to provide a market
overview to inform the organizations product Lines
WHAT is the current
landscape and needs of
the program’s markets?
WHOM will the program’s
actively target within the
markets?
WHAT will be the program’s
product portfolio for
targeted clients? Why?
WHAT are the forces
(political, economic, social,
and technological) that
are affecting the market
presently and currently?

5. Market Research
To answer these questions, we developed a market research
plan with three key components and deliverables
Methodology
Value Proposition
• Internal and External
Interviews
Environmental Scan
• Emerging Trends
• Customer Needs
• Competitive Analysis
• Emerging Trends
• Customer Needs
• Competitive Analysis
• Market Sizing
• Market Segmentation
Market Segmentation
• Market Sizing
• Market Segmentation

6. For reference, the appendix
provides an overview and
examples of the other
components
This presentation
concentrates on the first
component –
Market
Segmentation

7. Market Segmentation
Main questions Purpose
We will look for three types of Market Segmentation Opportunities
The purpose is to understand the market landscape of the MS1
organization; evaluate where you are drawing clients; and identify and
prioritize attractive market segments.
INSIGHTS
POTENTIAL
OPPORTUNITY
EXISTING
OPPORTUNITY
Understand the market
landscape of your organization
and growth potential
How does opportunity
match with the
organizational goals and
strategy
What are the program and
services MS1 is currently selling
and to whom?
Where can MS1 grow? Evaluate where to leverage
growth based on criteria and
demographics
Identify & prioritize attractive
market segments

8. Market
Segmentation
Analysis
Three Examples

9. MS1
Program Services
Market Segmentation Example 1

10. MS1 is currently in 92 districts are, operating in 157 schools.
There are 5.2K totals schools in the districts
Opportunity Gap
Comparison of the total number of schools possible in districts partnering with EL Education
Data Sources:
MS1 District List 2015-16
U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD), "Local Education Agency (School District)
Universe Survey", 2012-13 v.1a; "Public Elementary/Secondary School Universe Survey", 2012-13 v.1a.

11. Market Segmentation – MS1 Schools
Key variables used and
yielded results:
US District mapping and
demographic data from NCES to
identify all districts with 40% or greater
Free and Reduced Lunch students
8,024 districts identified
MS1 target area list and filter of
districts having greater than 40% free
and reduced lunch students
1,216 districts identified
From interviews, MS1 staffing
identified districts with 6-10 schools as
a their “sweet spot”
445 districts identified in the targeted
areas
1,216
Districts
445
Districts
8,024
Districts
13,592
Districts
MS1 Target Areas
w/ 6-10 Schools
Total Schools 2,6K
Total Students 1,1M
MS1 Target Areas
> 40% FRL All Schools
Total Schools 11,7K
Total Students 6,3M
All States
> 40% FRL
Total Schools 63,4K
Total Students 32,5M
All States
Total Schools 92,5K
Total Students 47,5M
Data Sources:
U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD),
"Local Education Agency (School District) Universe Survey", 2012-13 v.1a; "Public
Elementary/Secondary School Universe Survey", 2012-13 v.1a.
A series of Quantitative Filters were used to identify MS1’s Target Market
opportunity

12. MS2
Program Services
Market Segmentation Example 2

13. MS2 is currently in 20% of their target districts. This indicates there is a MS2 presence
in the targets districts to leverage as well as also opportunity for growth
Geographic Number of Districts
Total
Students
FTE
Teachers
% Minority % FRL
US Overall
City 799 14,625,601 842,332 66.1% 62.3%
Rural 7,199 6,878,276 476,627 23.6% 49.7%
Suburb 3,100 20,636,212 1,228,145 44.9% 42.7%
Town 2,494 5,434,432 341,196 32.4% 53.7%
Grand Total 13,592 47,574,521 2,888,300 46.9% 51.0%
Target States and
Districts
City 117 5,481,348 312,218 77.4% 66.8%
Rural 11 247,116 15,743 36.8% 51.7%
Suburb 86 3,399,654 193,551 62.8% 51.7%
Town 2 38,263 2,617 63.0% 76.6%
Grand Total 216 9,166,381 524,129 70.8% 60.8%
MS2 Overall
City 74 3,379,248 185,522 82.7% 74.1%
Rural 8 18,202 1,247 70.4% 73.3%
Suburb 36 1,384,122 83,022 64.0% 56.1%
Town 6 20,248 1,341 51.6% 46.1%
Grand Total 124 4,801,820 271,132 77.1% 68.8%
MS2 in
Target Districts
City 36 2,258,720 121,927 84.1% 73.4%
Rural
Suburb 8 587,317 35,585 65.0% 52.6%
Town
Grand Total 44 2,846,037 157,511 80.1% 69.1%
20%
Penetration
Market Segmentation – MS2 Schools

14. 216 districts were identified as potential MS2 targets using the following criteria
State
Number of
Districts
Total
Students
Full-Time
Equivalent
% Minority % FRL % ELL
California 45 2,444,832 99,288 78.5% 63.0% 24.0%
Georgia 21 1,019,111 63,981 62.6% 57.7% 6.3%
New York 31 1,024,746 68,650 83.3% 73.6% 1.3%
North Carolina 24 938,512 60,289 48.7% 51.5% 7.0%
South Carolina 14 403,314 25,875 44.0% 52.2% 6.3%
Texas 73 3,100,969 193,908 75.9% 60.9% 18.7%
Washington 8 234,897 12,138 40.2% 47.8% 10.0%
Grand Total 216 9,166,381 524,129 70.8% 60.8% 14.8%
District Sizing > 15K Students
Number of Teachers > 1K
Target State: 7 states identified
Market Segmentation – MS2 Schools

15. In most cases the districts MS2 is currently in have
geographic proximity to possible target
State
# of
Districts
Total Students
(FTE)
Teachers
California 45 2,444,832 99,288
Georgia 21 1,019,111 63,981
New York 31 1,024,746 68,650
North Carolina 24 938,512 60,289
South Carolina 14 403,314 25,875
Texas 73 3,100,969 193,908
Washington 8 234,897 12,138
Grand Total 216 9,166,381 524,129

16. Prioritizing the MS2 Target States
Grow
MS2 is established
in state,
significant district
sizes, opportunity
to leverage
State
Current
MS2
presence
in Target
Districts
Total Students in
MS2 presence in
Target Districts
Total
Target
Districts
Total Students in
Target Districts
MS2
Penetration of
Target
Districts
MS2
Penetration
of Students in
Target
Districts
California 7 972,404 45 2,444,832 16% 40%
Georgia 4 424,514 21 1,019,111 19% 42%
New York 26 891,028 31 1,024,746 84% 87%
North Carolina 1 142,991 24 938,512 4% 15%
South Carolina 1 26,780 14 403,314 7% 7%
Texas 4 361,951 73 3,100,969 5% 12%
Washington 1 26,369 8 234,897 13% 11%
Grand Total 44 2,846,037 216 9,166,381 20.4% 31.0%
Expansion
Largest growth
opportunity
Develop
Growth potential is
there but current
penetration is low
Monitor/Analyze
Includes the largest
school district will
require deeper
analyses to
understand needs

17. MS3
Program Services
Market Segmentation Example 3

18. Segmentation Analysis – Quantitative Filters
District
Selection
Market Sizing
(Revenue &
Students)
Adoption
Status
State
“Attractiveness
"Criteria”
• Size: > 10K
• Locale: Urban/
Suburban
• Timing
• Centralized v
Decentralized
• MS3 Market
Penetration
Gap
• $ Spend per pupil
• Assessment
Performance
• State Market
ranked by
revenue
potential at
20% Market
Share

19. Target State and District
Indicative Recommendations
Eight States Recommended
as Tier One Targets
District
Selection
Market
Sizing
(Revenue
& Students)
Adoption
Status
State
Attractiven
ess Criteria
10.7M 342 4.6M $XXX
Total 6-12
Student
Population
Number of
Target
Districts
6-12 Students in
Target Districts
Growth
Potential

20. Target State and District Indicative Recommendations
District
Selection
Market
Sizing
(Revenue
& Students)
Adoption
Status
State
Attractiveness
Criteria
Total 6-12 Student
Population
Number of Target
Districts
6-12 Students in Target
Districts
Growth
Potential
Eight Tier 1 States 10,705,492 342 4,637,855 $69,190,283
Nine Tier 2 States 6,325,444 139 1,598,755 $45,744,608
All Tier 1 & 2 States 17,030,936 481 6,236,610 $114,934,891

21. Appendix
Market Research
Phase II
Given the project scope and needs
of the organization, the additional
components of an environmental
scan and value proposition
analysis will provide a
comprehensive view of your
opportunities with three key
elements
A robust, actionable plan
A fresh, independent, pragmatic view of
what needs to happen
Capability and flexibility to create your Go-
to-Market Plan as a project with clearly
defined objectives, metrics and deliverables

22. MS3
Program Services
Environmental Scan Sample

23. 23
Environmental Scan
Will synthesize and develop and assessment of the market using possibly the following
research, analysis, and methods
SWOT Analysis
• An organized list of your
business’s greatest
strengths, weaknesses,
opportunities, and threats.
• What are the
organizational strengths?
What are your
advantages? What do
you do well?
Market Trending
Utilize effective practices and
trends within the higher
education sector
Competitive
Analysis
• Who are your
competitors?
• What products or services
do they sell?
• What are each
competitor's strengths and
weaknesses?
Data/Financial
Analysis
• Employ both quantitative
and perceptive data to
guide in identifying priority
goals/strategies.
• hat financial and non-
financial measures will we
use to assess the viability of
the strategy?
PEST Analysis
PEST is an acronym for
Political, Economic, Social
and Technological factors.
This will provide an external
scan of your environment

24. Outline
Equity in
Education
Common
Core
Instruct
with Tech
Challenges in Education
impacting Professional
Development
Market
Size
Teacher
and
Admin
Views
Product
Needs
Product Development
Landscape Overview
MS3 - Market Scan

25. Summary – MS3 Program Services
Three trends continued to emerge in reviewing the current market trends
• Equity in Education - Many school districts nationwide are experiencing rapid growth in the number of students of
color, culturally and linguistically diverse students, and students from low-income families
• Common Core - As states evaluate their implementation efforts and begin to release results from the tests
administered to students, they are confronting new challenges and opportunities along the way
• Instruction and Technology - Technology has entered into classroom instruction in a variety of ways. More tools are
available, however whether or not they are effective aide in instruction is unclear.
In terms of the Instructional Coaching and School Leadership market:
• The size of the overall PD market continues to be dominated by internal (e.g., districts and state) providers. The
remaining external market is fragmented and dominated by independent consultants and geographically local by
nature
• In the changing landscape, both teachers and administrators have a disconnect with current state of professional
development, particularly given to issues listed above, but both have outlined the “wants” to make PD more
effective
• Both the Instructional Coaching and School Leadership professional development are aligned with the needs of
districts. However, Instructional Coaching takes priority, even by principals themselves, in terms of its implementation
in districts
• Of the $1 billion the federal government sends to districts annually for training programs, 91 percent goes to teachers,
leaving 9 percent for principals, according to that same 2014 report from the School Leaders Network

26. MS3 Program Services
All Other
Teachers,
40%
Struggling
Teachers,
25%
New
Teachers,
35%
Principals report that the majority of in-school
coaching is focused on new and struggling
teachers
27%
16%
33%
24% Weekly or multiple
times
Monthly or
multiple time per
month
Regularly bu less
than monthly
A few sessions, not
on a regular
schedule
Only half of teachers report receiving coaching in
the past 12 months, with high variance in frequency
Receive
Coaching,
49%

27. Barriers that impede MS3 Program Services adoption and
effectiveness
Building administrators
don't support the position
• If building administrators
are not on board with
instructional coaching, it
is at high risk of failing in
schools.
•Leaders set the tone for
their school building (click
here to read 6 Ways
Principals Can Support
Coaches).
Coaches have to walk a
delicate balance
•Coaches have to work
with the principal in order
to be supported.
•Meaning that the coach
needs a principal who will
talk about coaching in a
positive way, take time at
faculty meetings to talk
about how valuable the
position is to teacher
growth, and have private
conversations with
teachers to persuade
them to work with
coaches.
•However, coaches also
have to separate
themselves from principals
in order to prove to
teachers that they are not
working with the principal
to evaluate them.
Coach lacks credibility
•Very few teachers will
work with a coach who
seems inexperienced.
•The coach is seen as
someone who has a level
of expertise with an
understanding the
dynamics of a classroom,
how to engage students,
and the pressures of
accountability.
Coaches evaluate
teachers
• If teachers believe that
coaches are there to
evaluate them, it will
make it much harder to
foster a positive
relationship between
teachers and coaches.
•Coaches are supposed to
be working in partnership,
in a non-evaluative way,
with teachers.

28. MS3
Program Services
Value Proposition Sample

29. Value Proposition
Gather insight of the drivers effecting the constituents and overall market place by
interviewing both internally and externally.
Starting with answering these Guiding Questions:
What gaps are not being
addressed?
What market drivers impacting
your clients to date? In the next
three years?
How does you current
program and services
offerings compare to your
competition?
What unique advantage does
MS1 offerings have over other
options available to your
potential

30. MS3 Value Proposition
Balance Smart
Brand
Potential to continue to provide
systematic approach through
Product Lines
Addressing specific customer
need in terms of capability and
flexibility
.
216 Target districts covers 9M
students and 500K teachers
New rigorous standards will
continue to be a major driver in
professional learning needs
Advantage to leverage the
strength of Product A when
building B
ANALYSIS
Respected and recognized in
the field to provide leverage
“MS3 has identified innovative and effective ways to train
teachers, arguably the most important stakeholder in improving
educational outcomes, and they've been able to do this at scale.
Their staff is knowledgeable and committed, and their impact is
deep in the sector.”
- Customer Feedback
27