Indalytics brings to you a market entry strategy and feasibility report on preschool education in India — April 2012. The report discusses the various aspects to be considered, before starting your own preschool.
About the Report
The report is prepared with an objective of helping the new entrants in understanding the market dynamics, and strategizing their course of action accordingly.
The report focuses on the market entry strategy for setting up a preschool business in India. It discusses the characteristics of the sector, as well as the major factors that should be considered while entering the sector. The report further talks about the best practices by key players operating in the sector, which have helped them to attain competitive edge.
The report is prepared with the help of a study encompassing both the demand and the supply side of the business. On the demand side, a survey of 1,080 parents was conducted, with each parent belonging to different household. The survey was conducted with an objective to access the psychology of parents, which influences their decisions in choosing preschools. Similarly, on the supply side, business models of major preschools were studied to understand their operations. These business models were then compared against each other to understand the best practices that provide competitive advantage to these businesses.
Table of Contents
- Market size of preschool education sector in India (2011)
- Concentration of sector
- Factors leading to increasing attractiveness of preschool sector for investment
- Five forces analysis of the preschool sector in India
- Market entry strategy for preschools
- Key performance indicators of the business
- Positioning of business
- Value proposition to be delivered
- Marketing and branding of preschools
- Challenges that new preschools could face
- Growth options in preschool education sector
- Regulations impacting preschool education
- Profile of key players
- Apple Kids
- Kangaroo Kids
- Little Millennium
- Survey on psychology of parents, while selecting a preschool
- Survey Result
- How to conduct feasibility study before starting a preschool
- Step 1: Deciding on the geography
- Step 2: Understand the demographic profile
- Step 3: Estimate the client base
- Step 4: Estimate the costs
- Step 5: Estimate the revenue to get the minimum number of students and margins
- Step 6: Rectify and control
Definition of preschool education
Preschool education comprises of informal education, which is generally imparted to children in the age group 0–4 years, before they start the formal primary education.
In India, preschool education is not considered formal and necessary. As a result, it does not considered under government’s Ministry of Human Resource Development, educational expenditure under five–year plans, any educational board, or any educational act such as the Right to Education Act, 2009.
Market size is being defined as the total revenue generated by the preschool education providers. It is a product of total population of preschool students in urban areas, enrollment ratios in these areas, ratio of students in urban areas with affordable family income, and average preschool fee per student.
Other data, such as concentration of the sector and growth rates, was determined on the basis of rigorous primary and secondary research, industry databases, and our proprietary market research surveys.
Currency conversion rate is considered to be INR50 for US$1.
List of Figures and Tables
Figure 1: Market size of preschool education in India — 2011(E) — 2014 (F) (US$ million)
Figure 2: Concentration of preschool education in India — 2011
Figure 3: Survey question — How do you wish to see your child after completing the preschool?
Figure 4: Survey question — Which is the most important factor (other than reviews) that influences your perception for a preschool?
Figure 5: Survey question — What is the essential feature that you look in your child’s preschool?
Figure 6: Survey question — Which source of information do you rely upon which evaluating a preschool?
Figure 7: Survey question — Do you consider a branded preschool better than a non-branded one?
Figure 8: Flowchart on feasibility to open a preschool
Figure 9: Projected population of India — 0–4 years old — 2006–2016(F)
Table 1: MARKET SIZE OF PRESCHOOL EDUCATION IN INDIA — 2011(E) — 2014 (F)
Table 2: Gross enrollment ratio of classes I-V (6-10 years) — 2009–10
List of Preschools Mentioned in the Report
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