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1. MARKET RESEARCH IN PRIVATE EDUCATION
INSTITUTES IN DELHI
MT Consultants and Networks
Chandni Pama
DATE: 30TH MAY 2014

2. Education as a Service
1. Intangibility
Education is an intangible dominant
service – Impossible to touch, see or
feel
2. Perishability
· Production and consumption are
simultaneous activities
· No inventories can be made up eg. A
lecture scheduled cannot be stored
3. Inseparability
There is a need for the service
provider to be present when the
service is to be performed and
consumed
4. Others
· High fixed cost, Low variable cost
· Specialized and need based
· Competition
· Customer limitations
· Heterogeneity

3. High Fixed Cost and Low Variable Cost
• Fixed costs are costs that do not change when the quantity of output
changes. Unlike variable costs, which change with the amount of output,
fixed costs are not zero when production is zero. Some examples of fixed
costs include rent, insurance premiums, or loan payments.
• If a firm has a large amount of fixed costs, profit margins can really get
squeezed when sales fall. Conversely, the same high-fixed-costs
company will experience magnification of profits because
any revenue increases are applied across a constant cost level. Fixed costs
are an important part of profit projections.
• So whether there are 30 students in a class or 40, classroom will be
available, the infrastructure is being used, all the fans will be switched on
and the faculty will teach in the appointed hours.
• Therefore the electricity charges, the rent, salaries, etc are fixed and
always charged no matter how many students present, so marketing team
should not hesitate to spend a little extra if they have to and focus on
the revenue stream.

4. SWOT Analysis
SOURCE: Deloitte Oct 2012 Report, Indian Higher Education Sector

5. Gap Analysis of Educational Service
Provider Gap 1:
Educational institutions do not
know the expectations of the
students.
Provider Gap 2:
Institutions are not having the
desired service designs and
standards to meet the
requirements of the students.
Provider Gap 3:
Educational institutions are not
delivering service standards as
required to deliver
Provider Gap 4:
They are not matching
performance they are supposed
to show and promises
communicated to the students.
Provider Gap 5:
There are lot of differences
between expectations of the
students and their perceptions,
which is known as Customer Gap

6. OBSERVATIONS
• All institutions agree that they are marketing and advertising for their
education institute and using all media possible. 70% of the institutes said-
online as well as offline whereas others said traditional and digital media.
• Very few insisted that they use digital media only. One also talked about
ties with a PR agency.
• When asked about a marketing budget, it was treated a confidential,
sensitive matter. The only thing the respondents were willing to say was
that their budget is always variable. It may even depend on their
competitors. It was also pointed out by many respondents that the budget
is always overshot.
• For rating the marketing channels in terms of ROI, almost all respondents
said digital ‘seems’ to be best. It was almost like that had not given it
much thought.
• The occupancy rate when asked the marketing heads were generally not
comfortable giving a number.