Market Segment of Higher Education in India - Assignment Example

Introduction Company profile of the company Kaplan Nature of activity It is an accredited online Providing higher education Year of inception : 1937 Facility for providing education : Onsite class room training 70 campus based schools in 22 states Online software business education Providing private tutoring and advising Consultancy service. Vast library Recourses, Interactive mechanism With advisers and fellow students Financial aids and scholarships Programs offered: Arts and science – Graduation in various disciplines like communication, science, skill development in various areas etc. Business - Graduation in various business disciplines, MBA with various specialties etc. Health science - Medical transcription medical assistance etc. Information system and technology - Graduation and certification program in various IT related courses. They also provide various courses in legal studies, Nursing, Criminal justice etc. Problem definition Kaplan University is look to market their online education programs as a part of their efforts to expand its global presence. Since online education has not become popular in India and also distance education programs offered from Government and private institutes have strong presence in the market, Kaplan University is looking to identify a new market segment to ensure their market share. Also they want to set short term goal and develop marketing plan to achieve short term goal. Market analysis Higher education in Indian market – an history Higher education system in India had been renowned with institutions like Nalanda and Taxila existed centuries back. Since independence so as to reach primary education to all levels of the population Governments from time to time have been making sustained efforts. As a result of it some parts of the country became 100% literate and in many other areas literary rate have been improved. Another result of the improved primary education is the population increasingly became aware of the importance of higher education another aspect of Indian education. Even though primary education is received in local languages, English is a popular medium for higher education in majority of areas. Higher education – Modern India The advent of information technology has changed the face of higher education in India also like in many other countries. Globalization and liberalization of Indian economy has its effects on the higher education area also. Unlike the period just after independence, now many private universities and education institutions are dominant in the higher education market. And for more than a decade distance education is gaining importance and recognized as good as that of campus education Online education in India Online education system has not yet become popular in India. The mind set of the people are still lenient towards campus studies. Distance education is given second preference among the youth as it is not offering campus placements. Online education has not been given recognition as other systems of higher education. Market segment for higher education in India 1. Students looking to get higher education just after their graduation or diploma 2. Students with part time jobs 3. Students with serious employment 4. Professionals and Academicians looking to improve their skills 5. Employed women and housewives 6. Students looking to go abroad so as to get foreign degrees A Comparative study of market segment Students come under first category are serious job aspirants and they look institutions which offer campus placements as their choice. Students with part time jobs look either campus education or distance education as their choice according to their capabilities. Students with serious employment are usually managerial or supervisory cadre employees and they preferred higher education for their carrier promotions. They prefer distance education. Employed woman usually prefer spend their time indoors for the sake of the family after their office hours. Only a small percentage is opting for higher education as even distance education system is not convenient for them to engage in studies as distance education system need contact classes to be attended and examinations are to be attended at various centers. There are a very small percentage of students look for foreign degrees they belong to affluent class and are able to meet the high cost of higher education. Suggested new Market segments for Kaplan University in Indian Market Kaplan University can target students with part time employment, serious employees looking to get higher education, employed woman located in urban areas and students look towards foreign degrees as potential market segments Out of various market segments suggested above Kaplan University may find employed woman in urban area, students look to get foreign degrees at a lesser cost will be the most potential segment SWOT analysis for Kaplan University Strength Kaplan University has been in the market since 1937 Kaplan University has a Global presence and leaders in the online education system. Weakness The name of Kaplan University is not popular in India as few other foreign universities. Opportunities India is the second largest populated country with population more than 1000 millions India has high population with knowledge in English Information technology is popular in India as households are getting internet connection at a higher rate Threat Many of the distance education universities are dominant in the market place Online degrees are not recognized by the employers especially when they look for campus recruitment at the entry level From the SWOT analysis it can be seen that distance education providers are the immediate competitors for Kaplan University. A potential market segment lying among the employed woman class and students look ward foreign degree at a lesser cost. Target market segment for Kaplan The characteristics of Indian economy in the modern era is its middle income group in the economy is expanding among the middle income people they tend to get education up to a graduation level. Most of them will be forced to look for employment after that. A minority of them go for higher education. Girls are get married by their parents most of the cases after their graduation. In the urban areas girls are seriously engaged in the employment even after the marriage. In the rural areas girls after their marriage remain as house wives. Apart from cost factor convenience factor also deter many employed people to go for higher education. That is why distance education is gaining momentum. However it is not just good enough to meet the demands of the employed women they are not able to attend contact classes as a part of distance education curriculum. They can be made as immediate targeted prospects for Kaplan University. Also there are many students who are higher education aspirants from foreign university. Many are not opting for foreign degrees because of cost. This segment also looks potential for online education. Short term target or first year target for Kaplan University In order to succeed to Indian operation Kaplan university as to target women employees portion of employees engaged in serious employment and look towards higher degrees and students look to get foreign degrees at a lesser cost as their prospective clients. Kaplan University can think 4000 students as their first year target. Kaplan University should be able to cover the major metros like Delhi, Mumbai, Calcutta, Chennai Hydrabad, Banglore, Kochhi, etc in the first year of operation Action plan Pre launch actions 1. Recruiting counselors and marketing personnel 2. Setting up counseling centers at major towns 3. Training of counselors and marketing staff Launch 1. Marketting personal in major towns can conduct seminars as a part of awareness program and enquiry generation 2. Follow up actions with respect to the enquiries generated 3. Publicity via Various media like TV and news paper. Descriptive ads are suggested as online education is still in its introductory stage After Launch actions for one year period 1. Ensure customer satisfaction through proper customer service 2. Expand the activities from major metros to other urban areas 3. Sponsoring of major cultural and sports events as a part of awareness programs Conclusion Kaplan University can positively look towards marketing their online education programs in India. Distance education system is not fully satisfactory as many employed people find it to attend contact classes and spare days to write exams. Also there are a large number of career aspirants look towards foreign degree at cheaper rate. With sustained awareness programs and systematic expansion through urban areas, it is possible for Kaplan University to achieve their organizational goals in India Assumptions made with respect to this study Kaplan is only at its launching stage in India Market survey and test marketing already done The target for first year is also fixed in consultation with finance department so as to ensure the break even sales achieved in the first year of operation itself. Read More