Feasibility Report of Educational Institute

STUDIES A LEARNING CLUB- MARKETING PLAN

Institute of Business Management(IoBM)

Marketing Plan for ‘STUDIES’- Boost Your Leaning Curve Page | 2

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



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



School/College Students ...................................................................................................................... 39

Professionals: ....................................................................................................................................... 39

Creativity: ............................................................................................................................................. 40

11.Financials ............................................................................................................................................ 40

12.Future Plans: ....................................................................................................................................... 40



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.



2. Situation Analysis

Situation analysis has been done on 3C’s basis i.e. customers, competitors and company.

2.1 Customers

Learning is one of the essential needs in today’s life and every one of us goes through a

learning/studying phase in one way or the other, whether it’s 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.



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:



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 it’s a one stop solution to learning

requirements of individuals, as we are offering services in multiple segments that others are

don’t.

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 don’t 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.



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 it’s also a threat that if our environment(working area, arrangement) doesn’t 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 don’t 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.



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 01st year.

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.

Market Share

Adamjee

Meritorious

Trueman

Others

Market Share

Adamjee

Meritorious

Trueman

Others

STUDIES



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 one’s where friends are going, we can say that it was

‘Habitual Behavior’. But now a day’s 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

After 2003

Complex Buying Behavior

Dissonance Buying Behavior

Complex Buying Behavior

Dissonance Buying Behavior

Habitual Buying Behavior

Variety Seeking Buying Behavior

Habitual Buying Behavior

Variety Seeking Buying Behavior



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

Habitual Buying Behavior Variety Seeking 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

Habitual Buying Behavior Variety Seeking 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 that’s 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)



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.


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


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


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



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

Instructor’s 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.



In teacher’s 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.

Competitor’s 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.



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




Utility expenses



Administrative expenses



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 teacher’s budget of PKR 600,000 /month, PKR 40,000 is considered the instructors’

fee for conducting the course.


/month

Equipment cost per course per month is 0.5 x 230, 000 /2 = 57,500 PKR / month. But






The variable cost per unit = (Course Material + Certificate Cost)/20

= (80,000+ 10,000)/20

= 4,500 PKR /unit


=10,000 PKR

Note:

Course material includes painting kit and other stuff.

Competitor’s offers and price:

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

Entry Requirement: Matric/O’levels 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 Rs. 1200.00

Processing Fee Rs 2500

Payable along with submission of application form

Admission Fee Rs 40,000.00

Fee per semester Rs. 97,500.00

Contribution to Endowment Fund

(Per semester, payable on Registration) Rs. 3,500.00

Security Deposit Rs. 10,000.00



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:



For an investment of PKR 200,000 per course and expected return of 30 %



=10,000 + 0.35x 200,000/20

=10,000 + 3,500

= 13,500 PKR/ month




=110,000/9,000



= 12 enrolments


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:



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 teacher’s budget of PKR 600,000 /month, PKR 35,000 is considered the instructors’

fee for conducting the course.


/month

Equipment cost per course per month is 0.5 x 230, 000 /2 = 57,500 PKR / month. But




The variable cost per unit = (Course Material + Certificate Cost)/20

= (20,000+ 10,000)/20

= 1,500 PKR /unit




=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:



For an investment of PKR 150,000 and expected return of 30 %



=6,800 + 0.35x 150,000/20

=6,800 + 2,625

= 10,000 PKR/ month






=110,000/8500

= 13 enrolments


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


Utility expenses



Administrative cost



As per the budget, PKR 100,000 Lac for investment is reserved & the target number of

enrollments for each course is 20.



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*



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: 20 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

4. Competitor’s 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



If we expect 30 % return

Price of enrolment =Unit Cost + Return % x ((Investment/total courses)/students)


= 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.



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.



10.4 Promotion

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 site’s exact

URL to visit. Bookmarking a site is particularly beneficial for web surfers who like to follow

links.

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

Web Site Promotion Services

Collateral Material

Trade Shows

Launch Events

Social Marketing

Facebook

Twitter

LinkedIn

Blog



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 you’ve built up a rapport with them then they’re 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:

Visit

STUDIES

Webpage

Login with

registered

credentials

Basic Flow Model

Registration

with

STUDIES

before course

selection

Professionals Matriculation IntermediateCreativity

Enter Registration details e.g. name,

contact, address, email, brief aim of

doing course

Click on Register

course

User can

select a

category

Submit

NO

Register

another

course or

Logout

YES

Home PageLogout

Register an other course



Enter Admin

Dashboard

Add a new

course

Basic Flow ModelAdministrator

Add a new

Category

Fill in fields, eg, course

name, duration, loacation,

time, etc.

Enter course

details,

pictures etc.

Publish Course

END



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.



Documents

Feasibility Report of Educational Institute