Feasibility Report of Educational Institute

STUDIES
A LEARNING CLUB- MARKETING PLAN
Institute of Business Management(IoBM)
Contents
1.Executive Summary ................................................................................................................................ 5 2.Situation Analysis.................................................................................................................................... 6 2.1Customers ......................................................................................................................................... 6 2.2Competitors ...................................................................................................................................... 6 2.2.1Competitors targeting school/college students: ........................................................................... 6 2.2.2Competitors targeting professionals: ............................................................................................ 7 2.2.3Competitors targeting people learning for hobby or passion: ...................................................... 7 2.3Company ........................................................................................................................................... 8 2.3.1SWOT Analysis ............................................................................................................................... 8 Strengths: ............................................................................................................................................ 8 Weakness: ........................................................................................................................................... 8 Opportunities: ...................................................................................................................................... 9 Threats: ................................................................................................................................................. 9 3.Industry Analysis & Market Share: ......................................................................................................... 9 3.1 Matriculation & Intermediate section ............................................................................................. 9 3.1.1 Industry Analysis: Matriculation & Intermediate Students .......................................................... 9 3.1.2Market Analysis: Matriculation & Intermediate Students ............................................................. 9 3.1.3Projected Market: Matriculation & Intermediate Students......................................................... 10 3.2Professionals ................................................................................................................................... 10 3.2.1 Industry Analysis ......................................................................................................................... 10 3.3Creativity......................................................................................................................................... 11 3.3.1 Industry Analysis ......................................................................................................................... 11 4.Consumer Behavior .............................................................................................................................. 11 Marketing Plan for STUDIES- Boost Your Leaning Curve Page | 2
Institute of Business Management(IoBM) 4.1School/College students or consumers: ......................................................................................... 11 4.2Professional consumers: ................................................................................................................. 12 4.3Creativity Consumers:..................................................................................................................... 12 5.Market Opportunities & Issues............................................................................................................. 12 6.Objectives ............................................................................................................................................. 13 7.Marketing Strategy ............................................................................................................................... 13 Segmentation: ..................................................................................................................................... 13 8.Target Markets ..................................................................................................................................... 14 9.Positioning ............................................................................................................................................ 14 10.Marketing Mix .................................................................................................................................... 14 10.1Product ......................................................................................................................................... 14 Professionals segment: .................................................................................................................. 14 Creativity Segment: ........................................................................................................................ 16 10.2Price .............................................................................................................................................. 17 Pricing For Professionals segment: ................................................................................................. 17 Pricing for Creativity Segment: ........................................................................................................ 22 Fine Arts ......................................................................................................................................... 22 Languages Chinese: ..................................................................................................................... 26 Pricing for School/College segment ................................................................................................. 29 Pricing Method .................................................................................................................................... 33 10.3Place.............................................................................................................................................. 34 10.4Promotion ..................................................................................................................................... 35 10.5Process .......................................................................................................................................... 37 10.6Physical Evidence .......................................................................................................................... 39 10.7People: .......................................................................................................................................... 39 Marketing Plan for STUDIES- Boost Your Leaning Curve Page | 3
Institute of Business Management(IoBM) School/College Students ...................................................................................................................... 39 Professionals: ....................................................................................................................................... 39 Creativity:............................................................................................................................................. 40 11.Financials ............................................................................................................................................ 40 12.Future Plans: ....................................................................................................................................... 40
Marketing Plan for STUDIES- Boost Your Leaning Curve
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1. Executive Summary
Studies is a Learning Club which offers Customized Group Study Programs, Workshops and Seminars for people related to different walks of life. Studies aim in providing Quality yet affordable learning services to its customers by employing the best faculty, lead by group of proficient people belonging to different professional areas like technology, marketing, management, and modern teaching approach to boost their learning curve . This club has, at present, focused to cater the learning needs of three segments in the market - people related to the professional industry, people who want to enhance their creative skills and the students of secondary and higher secondary schools, with a rational expectation of becoming a profitable venture by covering the expenses and initial investments in the first 6 months, capturing 5 % of the existing market share in the first year of launch and having a mission of turning into a market leader in 3 years.
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2. Situation Analysis
Situation analysis has been done on 3Cs basis i.e. customers, competitors and company.
2.1 Customers
Learning is one of the essential needs in todays life and every one of us goes through a learning/studying phase in one way or the other, whether its a requirement of an academic career, professional career or even if learning is just for sake of hobby or passion. Target customer of our organization is people that belong to upper-middle class or any one above them, the reason being these people are well educated and mostly on job salaried persons who either want to polish their skills in short time or learn some for their free time or for their passion or even want their children to have good and more insight what are they learning in their schools/colleges to get good grades (as per mindset of current environment specially in Pakistan).
2.2 Competitors
After some analysis of segments that we are targeting (mentioned in relevant section), we found that there is lot of competition existing in market and we are not the new one with this idea even in country or city. Some of the renowned competitors in market according to our segments/target markets are:
2.2.1 Competitors targeting school/college students:

These are mostly tuition or coaching centers that are very common in our environment some these are our direct competitor in this segment as they are already providing service with identical setup what we are providing, name to few are: Adamjee, Aver (The House of excellence), Meritorious, Trueman coaching center, National collegiate, Noor Collegiate, The professional group. Indirect competitors in this case are private teachers or college/ universities that are offering teaching services.
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2.2.2 Competitors targeting professionals:

In this category we have direct competitors; these competitors are the ones who provide learning services to professionals for e.g. entry level officers, middle level managers or senior executives, who want to polish their skills to perform better in their job capacity, some of renowned competitors in this category are: Headways Timelenders: Deals in strategic management courses. Learning Minds: Interface: Providing teaching services for professionals with technical background and management. Xpediant: Providing teaching services for professionals with technical background and management. Zumbeel: Conducting seminars and sessions related to technology and management(e.g. Project management)
2.2.3 Competitors targeting people learning for hobby or passion:

In this section of Creativity STUDIES will be offering courses in Fine Arts and languages section so our competitors are as follows: Fine Arts: In Fine Arts most of the institutes (i.e. those in our knowledge) are providing either degree program or diploma courses, but STUDIES is offering such courses for those who want to pursue it as a hobby not a career, so in this case we have indirect competitors in form of Rangoonwala Academy HKB Institute Karachi School of Arts Indus Valley Karachi University Languages: In Languages currently we are offering course of Chinese language, some of our direct competitors are:
Marketing Plan for STUDIES- Boost Your Leaning Curve Page | 7
Chinese Language Tutorial Center (CLTC): Offering 16 months course. Central Library DHA: Basic level 2 months course.
Private tutors.
2.3 Company
A company being started as a partnership learning institution, with a limited budget of around Rs 900,000/- and by people that belong to different professionals of life such as technology, management and marketing. The combination best fits for a business as one of the member is good to take care of technological aspects of the company, one being having a good management background and to promote business of the company we have a Marketer belonging to reputable organization of the country. As per initial plan, our company will be targeting people of upper middle class and above and will be having an initial setup by acquiring some area on rent basis in some reputable locality of city(this is necessary to attract people and give them some evidence of our dedication to service).
2.3.1 SWOT Analysis Strengths:

An institutional organization that is being lead by group of energetic people belonging to different professional areas, such as technology, marketing & management. The competitive advantage that STUDIES have over others is that its a one stop solution to learning requirements of individuals, as we are offering services in multiple segments that others are dont.
Weakness:
We are a new learning organization that is being launched in market in competition to giants already in market, also at initial stage (i.e. current stage) we dont have any brand equity or neither value nor that much budget to leverage it with secondary associations, also with limit budget we will be limited to geographically one or two areas.
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Opportunities:
The business we have opted to launch has lot of potential in the segment that we have chosen and even in those that we are not targeting at this stage, such as courses for diploma holders, course to help students preparing for certifications or other short courses etc.
Threats:
Even though the opted business shows good opportunities but still keeping in view on-going issues of the country in general and Karachi (as we are first launching here) in particular that business may not run as it is expected or may take longer time to pay-off, also as we have limited budget and in services industry one of the most important thing is Physical Evidence so its also a threat that if our environment(working area, arrangement) doesnt suits the visiting customer it may go in negative favor of business.
3. Industry Analysis & Market Share:

3.1 Matriculation & Intermediate section 3.1.1 Industry Analysis: Matriculation & Intermediate Students
Though below figures dont reflect true picture of market size for school/college but as per some statistics found (claiming to be extracted from Board of intermediate education & Board of secondary education): following are numbers: Matriculation: Around 120,000 students register at BSEK (for both 9th & 10th class). Intermediate: Around 130,000 students register at BIEK (for both first year & second year).
3.1.2 Market Analysis: Matriculation & Intermediate Students

Following PIE chart shows market share analysis of big market player of this segment.
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Market Share
Adamjee Meritorious Trueman Others
3.1.3 Projected Market: Matriculation & Intermediate Students

After launch of STUDIES, project market share would be as follows, as our marketing objective we aim to get 5% of market share after lauch during 01 st year.
Market Share
Adamjee Meritorious Trueman Others STUDIES
3.2 Professionals 3.2.1 Industry Analysis

Market of courses that STUDIES is currently offering is not too much large and there are already quite a number of well established players already well established in market either in form of institution or individual. This is a market of hardly 7,000 to 8,000 professionals that are interested in learning these courses to expand their skills.
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3.3 Creativity 3.3.1 Industry Analysis

This market is even smaller in size as compared to professionals segment, as it depend on nature of people, passion, money(as these courses are expensive) and time(as usually people if we take of Karachi lives a busy life). On an average market size of this segment will 4,000 to 5,000 individuals.
4 Consumer Behavior
As studies have different segments in portfolio of services therefore consumer behavior varies from segment to segment.
4.1 School/College students or consumers:

Consumer behavior has changed for quite some time now as compared to 5 to 6 years or even earlier. In earlier days even when we (report writers) were at this stage, usually were not concerned about who actually the teacher is in coaching center it was usually like going to the nearest in town or to the ones where friends are going, we can say that it was Habitual Behavior. But now a days situation is changed, students are now more concerned who the teacher is, what is his/her demand in market, with which institution (school/college) is he/she associated with so it is now categorized as Complex Behavior.
Till 2003 or Earlier Complex Buying Behavior Habitual Buying Behavior Dissonance Buying Behavior Variety Seeking Buying Behavior
After 2003 Complex Buying Behavior Habitual Buying Behavior Dissonance Buying Behavior Variety Seeking Buying Behavior
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4.2 Professional consumers:

These people are usually that are on job/working people, so their behavior falls under category of Dissonance Behavior, also most of the courses that are for professionals either that are of technical in nature or management related if are of certification based needs to be attempted at selected bodies that are authorized to give certification. So these people come only for preparation or knowledge. Professionals Behavior Complex Buying Behavior Dissonance Buying Behavior Variety Seeking Buying Behavior
Habitual Buying Behavior
4.3 Creativity Consumers:

As per our findings this segment is Variety seeking, if they are offered different varieties at one place these people will never leave but they will quickly switch if they find more variety with competitor. Creativity Seeking Behavior Complex Buying Behavior Dissonance Buying Behavior Variety Seeking Buying Behavior
Habitual Buying Behavior
5 Market Opportunities & Issues

Even though there is lot of competition in market and there are number of institutes or individuals that are providing teaching services as we see around us everywhere, still this is the business we have observed thats ever growing and demand for those who provide better
services is always there, apart from segments that STUDIES is currently targeting there are still several segments that we are not touching in first phase of launch, but it could be tapped, provided there are no budget issues and macro environmental factors go in favor.
6 Objectives
Providing one stop solution to our valued customers by providing diversified and quality learning under one roof. Financial Objective: To cover expenses within 6 Months of Launch To earn profits within first year of Launch Grow by re investing the retained earning Marketing Objectives: To capture 5% of market share in the first year To grow 300% in the second year and acquire 15% of Market Share To become market leader in 3 years
7 Marketing Strategy
Segmentation:
STUDIES segmentation of market is based on demographic segmentation & Psychographic: Demographic segmentation: Segmentation is done on Age group, Occupation, hobby/passion. Psychographic Segmentation: Segmentation is done on basis of social class, we are aiming to target people having upper middle and upper class status.
Age Group
2-5years(Nursery, KG students) 6-12 years(Class 1- Class 6 students) 13-16 years (Class 7-Class 10 students) 17-19 years(Intermediate students) 20-24 years(Diploma/Graduation students) Marketing Plan for STUDIES- Boost Your Leaning Curve Page | 13
Institute of Business Management(IoBM) 25-27 years(Masters Students)
Occupation
Entry Level officers Middle Level Senior Executive
Hobby 8 Target Markets

As per our analysis we see following segments as most profitable in current environment and are target market for STUDIES.
Age Group
15-16 years (Class 9-Class 10 students) 17-19 years(Intermediate students)
Professionals
Entry Level officers Middle Level Senior Executive
Hobby/Passion
9 Positioning
Rather than playing on price as most of new entrant of any developed market do, STUDIES Position itself as providing Quality learning services with price being moderate(not too high nor too low then market) to retain competition and make profitable revenues.
10 Marketing Mix
10.1 Product Professionals segment:
Course Title: Project Management- Skills for success

Key Learning Benefits: Learn to plan a project to ensure successful delivery and stakeholder satisfaction
Apply best practices to plan and run projects using a 6-step project management process Implement risk management techniques and deploy mitigation strategies Estimate and schedule task work, duration and costs with confidence Implement monitoring tools and controls to keep you fully in command of the project Recognize and practice the leadership skills needed to run a motivated team.
Course Title: Leadership Skills - Building success through teamwork.

Key Learning Benefits:

Develop your teams to maximize their strengths and enhance productivity Optimize organization and work design for success in service delivery teams Motivate your team with effective performance measurement Integrate your leadership responsibilities, competencies and behaviors into your management role
Leverage the complementary skills and styles of your team Eliminate barriers and chokepoints that block teamwork
Course Title: Learning Management


Apply core management skills, tools and techniques to deliver results Develop a proactive customer-focused approach Enhance your leadership abilities by developing emotional intelligence Communicate with, motivate and empower your team Delegate work to individuals and teams Develop a management vision for success
Course Title: Learn To Manage IT.


Apply a proven management model for leading technical staff to excellence Identify key success criteria for leadership in an IT environment Leverage emotion to optimize communication and performance Motivate and empower technical professionals to achieve results Delegate proactively to focus the strengths of IT teams and build accountability Reinforce performance with a shared vision and effective coaching
Course Title: Introduction to Business Analysis - Defining Successful Projects.

Perform key functions of the business analyst by applying a solid business analysis framework
Conduct a business needs analysis to solidify stakeholder requirements Apply business analysis techniques to identify key problems and potential opportunities
Evaluate and prioritize the feasibility of business initiatives and present the business case
Document and deliver the requirements package Optimize organizational performance and realize benefits downstream
Creativity Segment:
Course Title: Fine Arts

Key Learning Benefits: This robust program leverages its strengths from half a century of irrefutable legacy based on leadership and excellence. It reflects exhilarating, new convergent practices and encourages dialogue among emerging and traditional genre.
Studies aim to provide a comprehensive understanding of visual art and overall analysis of formal values along with different theories in visual art and school of thoughts. The program
encourages students to develop independent learning, search and research for their own creative identity and acquire personal visual language while keeping their studio activity related to the bigger picture of social, political cultural and historical perspectives.
This program offers four major areas of specialization: Painting, Miniature, Sculpture and Print-making. Students are given initial understanding of all areas in the second year. During the program, students learn to develop essential skills of self-management and professional practices.
Course Title: Language - Chinese

Key Learning Benefits: The course is designed to enable students to speak and write in Chinese and those who wish to go to China for study, permanent business or career search. It will enable a person to speak, understand and write in Chinese. The course comprises six levels lasting for two months each.
School /College Segment:

This segment includes courses taught in matriculation and intermediate classes these include but not limited to Mathematics, Physics, Chemistry, Computer, Biology etc.
10.2 Price
We have distributed the total budget in three target segments namely Professionals, Creative & Metric/Intermediate as 40 %, 50 % & 10 % respectively. This distribution is
done after analyzing the market competitors price offerings and the per day revenue contribution from these segments. Please refer to the Financials section for further details.
Pricing For Professionals segment:

Pricing Objective
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Our pricing objective would be focused on maximizing the ROI .We will set the price which could attract the maximum number of target audiences. The reason behind using this approach is that the fixed costs associated with this service provisioning would remain intact within a certain capacity and would have to be distributed on the number of professionals, who get enrolled in a particular course. If in a given capacity, we succeed in attracting the maximum number of professionals then the fixed cost per individual will be minimized and we will be having a much bigger space for incurring the variable costs without affecting the target return on investment. This large portion of variable cost will allow us to increase the value proposition of the professionals entitled for a given course. Hence we would be able to provide the service better or equal to what our customers would expect and it would give us a potential advantage over our competitors.
Demand Analysis
Since the target segment comprises of working professionals (entry level employers, middle level managers & senior executives) who have suitable disposal income so this segment is not price sensitive or the demand of a particular course wont experience an immense increase if the course is stated to be offered at price e.g. 13000 PKR instead of 15000 PKR. However, this segment would seek for quality, experience and value. Hence different promotional packages would really be beneficial to introduce as: Premium Passes: Take 4 Courses within 24 months @ 10000 PKR per course Alumni Discount: Attend first course and get your Alumni Gold Card on which you can save 5000 PKR on each course you take within 12 months Government Discount: Discount to government employees. Cost Estimations The cost incurred would include Fixed Cost and Variable Cost. Fixed costs remain fixed within a certain range and decreases per unit as the demand increases. Variable costs vary in direct proportion with the number of units.
In our case of offering a given course to the professionals segment, Fixed Costs may include Venue rent Instructors charges who is going to conduct the session Utility expenses Equipment used in the session/workshop Marketing for the program via all possible available channels Administrative expenses However the Variable Costs may include The refreshments & lunch/dinner costs which will depend upon the number of enrollments Course material to be provided to each individual Certificate provisioning From the estimated financials Let us suppose we have a budget of PKR 200,000 for a given 4day program & the target number of enrollments for a professional workshop course is 20. The fixed cost per unit = (Venue Rent + Instructors fee+ Utility charges+ Admin costs +Equipment cost +Marketing)/ total no. of enrollments = (25,000*+40,000+14,000+4,000+4,000+10,000)/20 =4850 PKR / unit
Note:
In this segment we are offering two courses per month as are assumption. Hence 40 % of rent incurring is PKR 48,000/month, which is distributed in two courses.
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In teachers budget of PKR 600,000 /month, PKR 40,000 per course is considered the instructors fee for conducting the course. Utility expenses when taken for this segment comes as 0.4 x 70,000 /2 =14,000 PKR /month Equipment cost per course per month is .4x230, 000 /2 = 46,000 PKR / month. But since it is one time cost and will be depreciated over the period of its life. If it is taken to be 1 year then 46,000 /12 = 4,000 PKR /month. Similar process is done to evaluate other costs The variable cost per unit = (Refreshment & lunch/dinner + Course Material + Certificate Cost)/20 = (30,000+5,000+2,000)/20 = 1,850 PKR /unit The Cost per unit = F.C + V.C = 4,850+1,850 =6,700 PKR Note: Refreshment with lunch/dinner cost per person is taken to be PKR 1500.
Competitors Prices & Offers Different institutes offers regarding similar services are analyzed including IBA, LUMS, CBM, SZABIST, PIM, NED, SSUET, HUMDARD, NUST, TIMELENDERs etc. The price of offering management courses is observed to be varying in the range of 8000 PKR to 25000 PKR for a 3 or 4 day course. Usually the price is observed to be dependent upon the venue and the level of augmentation provided with the service to the customers.
Pricing Method
The pricing method suitable for use here is Target Return pricing as we have a clear understanding of what is our target demand and what investment/budget we have. As evaluated in the total cost per professional course which comes out to be 175,000 and also the Financials estimated budget, PKR 200,000 per month for a single course rests for the professional segment. Hence, for an investment of PKR 200,000 per course and expected return of 35%
Price of enrolment =Unit Cost + Return % X Investment/total units =Unit Cost + Unit Profit =6,700 + 0.35x 200,000/20 =6,700 + 3,500 = 10,200 PKR/ month
The Break Even for this case is given below Break Even Units = Fixed Cost / Contribution Margin = 4,850 x 20 / (unit price unit variable cost) =97,000/8350 = 12 enrolments Therefore minimum professionals required to be in a profit condition are more than 12 individuals.
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Setting of Final Price Hence, from above analysis it is observed that the price which can be offered for this segment for a 4 day course can be 10,500 PKR only. Also it should be noted that we are on the lower scale in the competing market with respect to price as the average range of the price offered by competitors vary in the range from 8,000 to 25,000 PKR, hence have an opportunity to increase the price to provide increased quality and a more better experience to the customers. Therefore, we can improve the budget available and so that we could incur more cost which would lead to increase in total customer value.
Pricing for Creativity Segment: Fine Arts

Objectives: There are degree programs already going on in Fine Arts. Market leaders Karachi University and Indus Valley both are targeting lower and upper class of students respectively. Our program is not a degree program and hence we are not competing with these two, we are offering a foundation course for those who are interested in learning painting, sculpture etc as their hobby. Our pricing objective would be focused on maximizing the ROI. The reason for this approach is that we are targeting upper class and focusing on quality program with decent price can attract bunch of students who are looking for short creative courses.
Demand Analysis: We are targeting professionals and upper class students, price is not an issue. However lowering price in summer vacation can attract middle class students as parents look for such opportunities for children. Cost Estimates: Fixed Costs may include Venue rent Instructors charges who is going to conduct the session
Utility expenses Equipment used in the session/workshop Marketing for the program via all possible available channels Administrative expenses However the Variable Costs may include Course material to be provided to each individual Certificate provisioning Painting kit and other stuff
Let us suppose we have a budget of PKR 2 Lac for a 2 months program & the target number of enrollments for a professional workshop course is 20. The fixed cost per unit = (Instructors fee+ Venue Rent + Utility charges+ Admin costs +Equipment cost +Marketing)/ total no. of enrollments = (40,000+ 30,000+17,500+5,000+4,792+12,500)/20 =5,500 PKR / unit
Note:
In this segment we are offering two courses per month as are assumption. Hence 50 % of rent incurring is PKR 30,000/month, which is distributed in two courses. In teachers budget of PKR 600,000 /month, PKR 40,000 is considered the instructors fee for conducting the course. Utility expenses when taken for this segment comes as 0.5 x 70,000 /2 =17,500 PKR /month Equipment cost per course per month is 0.5 x 230, 000 /2 = 57,500 PKR / month. But since it is one time cost and will be depreciated over the period of its life. If it is taken to be 1 year then 57,500 /12 = 4,792 PKR /month.
Similar process is done to evaluate other costs
The variable cost per unit = (Course Material + Certificate Cost)/20 = (80,000+ 10,000)/20 = 4,500 PKR /unit The Cost per unit = F.C + V.C = 5,500+4,500 =10,000 PKR Note: Course material includes painting kit and other stuff.
Competitors offers and price:
Karachi School of Art: Offering foundation + 3 year diploma program.
Entry Requirement: Matric/Olevels or above with at least 45% marks Admission Fee: Rs. 18,000/Monthly Tuition Fee: Rs. 5,500/-
Indus Valley: Offering 4 year degree program Application form with prospectus Processing Fee Rs. 1200.00 Rs 2500
Payable along with submission of application form Admission Fee Fee per semester Contribution to Endowment Fund (Per semester, payable on Registration) Rs. 3,500.00 Security Deposit Rs. 10,000.00 Rs 40,000.00 Rs. 97,500.00
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Karachi University: 4 years degree program Admission Fee: Rs. 1,500/Semester Fee: Rs. 15,000/-
Private tutors: 4 years degree program Course Fee: Rs. 10,000 to Rs. 20,000
Sadequain Institute of Art: 4 years degree program 2 months program: PKR 8000/-
Pricing Method: The pricing method suitable for use here is Target Return pricing as we have a clear understanding of what is our target demand and what investment/budget we have. For an investment of PKR 200,000 per course and expected return of 30 % Price of enrolment =Unit Cost + Return % X Investment/total units =Unit Cost + Unit Profit =10,000 + 0.35x 200,000/20 =10,000 + 3,500 = 13,500 PKR/ month
The Break Even for this case is given below Break Even Units = Fixed Cost / Contribution Margin = 5,500 x 20 / (unit price unit variable cost) =110,000/9,000
= 12 enrolments
Therefore minimum professionals required to be in a profit condition are more than 12 individuals. Setting of Final Price:
As shown in above analysis we will set monthly fees Rs 13,500 per month. Initially neither we are not operating on large scale nor are we competing directly with degree program. This is a foundation course for those who are interested in creativity and art of painting. As we succeed in grabbing attention of more students we will try to change our pricing strategy to be cost-quality leadership.
Languages Chinese:
Objectives: In Karachi there are not much trainers currently present and since Chinese language learning has now become an attractive skill for people wishing to work with Chinese companies or study in Chinese universities, this segment as potentials. Our pricing objective should be to get maximum ROI.
The reason for this approach is that all of the competitors are offering low price services if we manage to attract students of upper class or professionals companies who want to train their employees in Chinese language with slightly higher fees this can give maximum profitability. Once we position our program as a professional one we can move to towards to get maximum market share. Demand Analysis:
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We are targeting professionals and upper class students, price is not an issue. However lowering price in summer vacation can attract middle class students as parents look for such opportunities for children.
Cost Estimates: Let us suppose we have a budget of PKR 2 Lac for a 2 months program & the target number of enrollments for a professional workshop course is 20. The fixed cost per unit = (Instructors fee+ Venue Rent + Utility charges+ Admin costs +Equip0.ment cost +Marketing)/ total no. of enrollments = (35,000+ 30,000+17,500+5,000+4,792+12,500)/20 =5,300 PKR / unit
Note: In this segment we are offering two courses per month as are assumption. Hence 50 % of rent incurring is PKR 30,000/month, which is distributed in two courses. In teachers budget of PKR 600,000 /month, PKR 35,000 is considered the instructors fee for conducting the course. Utility expenses when taken for this segment comes as 0.5 x 70,000 /2 =17,500 PKR /month Equipment cost per course per month is 0.5 x 230, 000 /2 = 57,500 PKR / month. But since it is one time cost and will be depreciated over the period of its life. If it is taken to be 1 year then 57,500 /12 = 4,792 PKR /month. Similar process is done to evaluate other costs The variable cost per unit = (Course Material + Certificate Cost)/20 = (20,000+ 10,000)/20 = 1,500 PKR /unit The Cost per unit = F.C + V.C = 5,300+1,500
=6,800 PKR Competitors offers and price: Chinese Language Tutorial Center (CLTC): Offering 16 months course. Fees: Rs 38400 Central Library DHA: Basic level 2 months course Fees: Rs 10000
Private tutors: Offering 2 to 3 months courses to individuals/groups Fees: 4000/ month to 6000/month
Pricing Method: The pricing method suitable for use here is Target Return pricing as we have a clear understanding of what is our target demand and what investment/budget we have. For an investment of PKR 150,000 and expected return of 30 % Price of enrolment =Unit Cost + Return % X Investment/total units =Unit Cost + Unit Profit =6,800 + 0.35x 150,000/20 =6,800 + 2,625 = 10,000 PKR/ month The Break Even for this case is given below Break Even Units = Fixed Cost / Contribution Margin = 5,300 x 20 / (unit price unit variable cost)
=110,000/8500 = 13 enrolments
Therefore minimum professionals required to be in a profit condition are more than 13 individuals.
Setting of Final Price: As shown in above analysis we will set monthly fees 10,000 PKR per month. There are very few competitors in this market who are offering cheap services our basic aim is to capture the market and to untapped upper class customer segments and gradually shift our pricing objectives to cost-quality leadership.
Pricing for School/College segment

1 Pricing Objective Our pricing objective would be focused on maximizing market share. We will set the price which could attract the maximum number of target audiences. The reason behind using this approach is that the fixed costs associated with this service provisioning would remain intact within a certain capacity and would have to be distributed on the number of students, who get enrolled in a particular course. If in a given capacity, we succeed in attracting the maximum number of students then the fixed cost per individual will be minimized and we will be having a much bigger space for incurring the variable costs without affecting the target return on investment. This large portion of variable cost will allow us to increase the value proposition of the students entitled for a given course. Hence we would be able to provide the service better or equal to what our customers would expect and it would give us a potential advantage over our competitors. 2 .Demand Analysis Since the target segment comprises of working students of matriculation and intermediate level who have not that much disposable income so that this segment is price sensitive and is
price elastic demand .If demand of the course increases the cost will be decreases, we set the price according to the geographical segmentation. However, this segment would seek for value for money .Hence different attractive packages would really be beneficial to introduce as: Special Package : Take 4 Courses and add 1 course free @ 1500 PKR per month Budget Package: Take 3 Courses at only @ 1300 PKR per month 3. Cost Estimations The cost incurred would include Fixed Cost and Variable Cost. Fixed costs remain fixed within a certain range and decreases per unit as the demand increases. Variable costs vary in direct proportion with the number of units. In our case of offering a given course to this, Fixed Costs may include Venue rent Instructors charges who is going to conduct the session Utility expenses Equipment used in the session/workshop Marketing for the program via all possible available channels Administrative cost However the Variable Costs may include Course material to be provided to each individual As per the budget, PKR 100,000 Lac for investment is reserved & the target number of enrollments for each course is 20.
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Instructor Fees Chart
Per Course Instructor Cost = Total monthly Cost / no of courses 67600/26 = 2600 Monthly rent per course = monthly rent / no of courses 12000*/26 = 500 * 10% of rent = 12000 PKR Monthly Utility charges per course = Utility / no of courses 7000*/26 = 270 * 10% of utility expense = 7000 PKR Monthly Marketing Cost per course = Marketing / no of courses 5000*/26 = 385 * 10% of marketing budget Monthly Equipment Cost per course = Marketing / no of courses 23000/ (26x12) = 75*
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Institute of Business Management(IoBM) NOTE: Equipment cost per course per month is .1x230, 000 /26 = 884 PKR / month. But since it is one time cost and will be depreciated over the period of its life. If it is taken to be 1 year then comes out to be 884 /12 = 75 PKR /month. Monthly Administrative Cost per course = Administrative / no of courses = 2000 / 26 = 75
Fixed Cost The fixed cost per course = (Institute Rent + Instructors fee+ Utility charges+ Equipment cost +Marketing + Administrative Cost)/ students in each class Data: No of students in each course: Solution: Fixed cost per student in each course: = (500 +2,600 +270+ 385 + 75 + 75) / 20 = 200 PKR approx per month for 1 course each student Variable Cost The variable cost per student = (Refreshment + Course Material) / students in each class Data: Course material cost = 400 for each course Refreshment = 0 Solution: VC = 400/20 = 20 The Cost per for each course per student = F.C + V.C = 200 + 20 Unit cost = 220 PKR 20
4. Competitors Prices & Offers Different institutes offers regarding similar services are analyzed including Masterjee coaching centre, Adamjee, Mac Collegiate etc.
The price of offering each course is observed to be varying in the range of 500 PKR to 800 PKR per month for each course. 5. Pricing Method The pricing method suitable for use here is Target Return pricing as we have a clear understanding of what is our target demand and what investment/budget we have. If we expect 30 % return Price of enrolment =Unit Cost + Return % x ((Investment/total courses)/students) =Unit Cost + Unit Profit = 220 + 35 % x ((100000/26)/20) = 220 + 67 = 300 PKR per course per month 6. Setting of Final Price Hence, from above analysis it is observed that the price offered for this segment 300 PKR per month for each student per course. This price would allow us to recover the fixed expenses in 9 months. Also it should be noted that we are on the lower scale in the competing market with respect to price as the average range of the price offered by competitors vary in the range from 5,00 to 8,00 PKR, hence have an opportunity to increase the price to provide increased quality and a more better experience to the customers. Therefore, we can improve the budget available and so that we could incur more cost which would lead to increase in total customer value.
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10.3 Place
To position our self as professional trainers and to target upper class we should choose a place in some posh area of the city. The location should be in peaceful area, easy to reach, should be cost-effective and spacious. For the achievement of above mention objectives we selected 3 locations: Defence Clifton Shahra-e-Faisal We did some research to find offices available for rent in these areas. Following is the information we gathered: Defense: Phase 6 - D.H.A Karachi. 500 Yards bungalow is available for rent. Rent: 120000. Clifton: Schon Circle, at 5th Floor. It is fully decorated, lift, standby generator and free maintenance building. Rent 130,500 PKR. Shahra-e-Faisal: Semi Furnished Office with 1485 Square Feet area in Caesar Tower near Regent Plaza Hotel. Rental Price is 90,000 / month.
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10.4 Promotion
Online Promotional Tools Feedback Forms Bookmarking Content Daily Give-Away, Coupons, Contests Surveys Awards/Testimonials Online Chat Tours
Online and Offline Promotional Techniques

Article Submissions Newsletters Press Releases Banner Advertising Sponsorships Link Strategies News Groups Email Marketing Search Engine Optimization Affiliate Marketing
Social Marketing Facebook Twitter LinkedIn Blog
Web Site Promotion Services Collateral Material Trade Shows Launch Events
Following are promotion techniques/tools that we are aiming to use for this project:
Feedback
forms: Using customer feedback we can improve our site and provide better
service to your customers. Using feedback forms also shows to customers that how are we interested in what they have to say, and provides an opportunity to build relationships with them.
Bookmarking:
A good way to encourage customers to visit our site is to ask them to bookmark it. Through bookmarking, they have easy access to our site and do not have to remember sites exact URL to visit. Bookmarking a site is particularly beneficial for web surfers who like to follow links.
Email Marketing:
With people spending so much time on email, there is an enormous opportunity to market to them and build solid customer relationships. Email marketing has emerged to become one of the most profitable and economical ways to manage customer relationships, presenting marketers with many opportunities and benefits. Its benefits include the following: low cost vehicle; access to a targeted and qualified audience; fast, efficient and effective; offers personalized communication; easy to track and evaluate; increases sales, awareness, and traffic. Facebook: Facebook is an online social networking website that makes people close to each other virtually and can be good ground for us, a good place to showcase your products, services
and websites for free in the online world is a dream for everyone Facebook has made this a reality. With half a billion Facebook users and thousands of online communities to choose from, Facebook has brought potential customers much closer to you.
Twitter:
Connecting with the customer base through Twitter internet marketing helps to increase sales and push word of mouth advertising. The social media marketing is a way to reach out to many people at once and build a relationship. With this system, your business can connect with customers through short messages. Sales people will be the first to vouch for building relationships to ease the sales efforts.
LinkedIn:
LinkedIn is another way of online marketing just as Facebook and Twitter but LinkedIn will also help us to pose our company as corporate organization rather just a learning center and social learning place.
Blogging:
Blogging is the quickest and most effective way to get your words out there on the internet. It requires no special skills beyond the ability to read and write, and sometimes click the
mouse. You can blog about your experiences, ideas, and discuss news about your new product, and build trust with your readers. If you have products that will meet your readers needs and youve built up a rapport with them then theyre likely to be moved by what you say and want to try your products.
10.5 Process
Below is basic flow model (blue print) for users:
Basic Flow Model

Visit STUDIES Webpage
Registration with STUDIES before course selection
Login with registered credentials
User can select a category
Professionals
Creativity
Matriculation
Intermediate
Click on Register course
Enter Registration details e.g. name, contact, address, email, brief aim of doing course NO
Register an other course
Submit
YES Register another course or Logout
Logout
Home Page
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Basic Flow Model Administrator
Enter Admin Dashboard
Add a new Category
Add a new course
Fill in fields, eg, course name, duration, loacation, time, etc.
Enter course details, pictures etc.
Publish Course
END
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10.6 Physical Evidence

As we are a service related industry so there is nothing tangible thing that we can product and service can only be experienced when it is availed, but in order to attract customers we have following physical evidence to make them sure about our quality of service in advance. Enriched courses that show our commitment to service provision. Well- Qualified teachers and professionals that are EXPERTS in their area. Well developed campus built in posh locality. Timely intimation about new courses/sessions/seminars in area of customer interest through our well established database.
10.7 People: School/College Students

Keeping in view the consumer (Students) behavior we have to search for people that are well renowned in market, currently all these teachers are either providing services on individual basis or associated with some institutes, we may to get them on board as well:
Mr. Shabbir Hussain Mr. Naeemuddin Mr. Yousuf Feroze Mr. Kamil Sher Mr. Muhammad Ahmed
Professionals:
Some of the popular people of this field are: Mr. Assadullah Chaudhary Mr. Mansoor Khan Mr. Ayad Aftab Mr. Fahad Zeeshan
Creativity:
Qualified and best teachers of leading institutes such as Rangoonwala Academy, HKB institute, Chinese learning center etc.
11 Financials
As per the research and market trend we need to have a budget of Rs 850,000/- rupees this is estimated keeping in view the following: Budget for Professionals segment: Rs 200,000/ course(02 courses) Budget for Creativity segment : Rs200,000 for Fine Arts course Budget for creativity segment: Rs 150,000/- for Chinese Language course Budget for School/College segment: Rs 100,000/-
Total Budget : Rs 850,000/Projected ROI is set to be: 35% Projected Revenue will be: Rs 297,500/-
12 Future Plans:
Following are some of the future plan that STUDIES aim to accomplish.
Increase course variety in each segment. To identify new and more segments. Quality improvement and cost cutting. To convert STUDIES from an institute to a professional training brand nation-wide. More features in website like polling of courses, addition of trainer profiles and online feedback evaluation. To open new campuses in different areas. Installation of State-of-Art equipment.
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STUDIES

A LEARNING CLUB- MARKETING PLAN

Institute of Business Management(IoBM)

Marketing Plan for STUDIES- Boost Your Leaning Curve

Institute of Business Management(IoBM)

Marketing Plan for STUDIES- Boost Your Leaning Curve

Institute of Business Management(IoBM)

2.2.1 Competitors targeting school/college students:

Marketing Plan for STUDIES- Boost Your Leaning Curve

Institute of Business Management(IoBM)

2.2.2 Competitors targeting professionals:

2.2.3 Competitors targeting people learning for hobby or passion:

Institute of Business Management(IoBM)

2.3.1 SWOT Analysis Strengths:

Marketing Plan for STUDIES- Boost Your Leaning Curve

Institute of Business Management(IoBM)

3. Industry Analysis & Market Share:

3.1.2 Market Analysis: Matriculation & Intermediate Students

Marketing Plan for STUDIES- Boost Your Leaning Curve

Institute of Business Management(IoBM)

3.1.3 Projected Market: Matriculation & Intermediate Students

3.2 Professionals 3.2.1 Industry Analysis

Marketing Plan for STUDIES- Boost Your Leaning Curve

Institute of Business Management(IoBM)

3.3 Creativity 3.3.1 Industry Analysis

4.1 School/College students or consumers:

Marketing Plan for STUDIES- Boost Your Leaning Curve

Institute of Business Management(IoBM)

4.2 Professional consumers:

Habitual Buying Behavior

4.3 Creativity Consumers:

Habitual Buying Behavior

5 Market Opportunities & Issues

Institute of Business Management(IoBM)

Institute of Business Management(IoBM) 25-27 years(Masters Students)

Hobby 8 Target Markets

Course Title: Project Management- Skills for success

Institute of Business Management(IoBM)

Course Title: Leadership Skills - Building success through teamwork.

Course Title: Learning Management

Course Title: Learn To Manage IT.

Institute of Business Management(IoBM)

Key Learning Benefits:

Course Title: Introduction to Business Analysis - Defining Successful Projects.

Course Title: Fine Arts

Institute of Business Management(IoBM)

Course Title: Language - Chinese

School /College Segment:

Pricing For Professionals segment:

Marketing Plan for STUDIES- Boost Your Leaning Curve

Institute of Business Management(IoBM)

Institute of Business Management(IoBM)

Marketing Plan for STUDIES- Boost Your Leaning Curve

Institute of Business Management(IoBM)

Institute of Business Management(IoBM)

Marketing Plan for STUDIES- Boost Your Leaning Curve

Institute of Business Management(IoBM)

Pricing for Creativity Segment: Fine Arts

Institute of Business Management(IoBM)

Institute of Business Management(IoBM)

Similar process is done to evaluate other costs

Competitors offers and price:

Karachi School of Art: Offering foundation + 3 year diploma program.

Marketing Plan for STUDIES- Boost Your Leaning Curve