The Under-served

After a long tenure serving as a Director in a management schools and Marketing Prof.
Subhash Sharma retired.
Before he could get to his long-cherished idea of writing a book on “Are management
schools magic academy”, Subramaniam, a promoter of a reputed private B-School invited
him for dinner. As the conversation progressed Subramaniam popped the question
“Subhash, I want retain you as an adviser and tell me what fundamental changes we need to
make to transform our business qualitatively and quantitatively”
Subhash asked “So what do you have in mind”
Subramaniam asked “Subhash, we need to re-imagine management education by looking at
the customer segments from a different perspective. Is management education just a
passport to a job? Is it accessible to everyone as an opportunity? For whom is it
unaffordable? Why is it that such a large number of our arts and science graduates and even
engineering graduates are seen as ‘not employable?”
“Subhash, one is the larger societal issue of why quality education should be rationed or
deprived to those who seek it. The second is the marketing or business question of “What
are the customer segments and which segments are being served now. What
product/strategy is required to address other segments. Can we apply different filters to
redefine customer segments?”
The discussion continued for another hour and eventually Subhash asked for a week to turn
the problem in his mind and
Subhash’s mind started wrestling with the rush of idea but one though stood out “Which are
the under-served segments in management education and why is it so”

Before we get to that key question can we first look at

 What are the bases for segmenting the market?

 With each base what segment emerge?
 How are management schools segmenting the market now?

Case prepared by Prof.Surya Mahadevan for class discussion

 The Under-served- Answer Key
How are management schools segmenting now?

 Demographic basis is the frequently used basis

o Work status--- Fresher/ < 4 years’ experience/ 4 to 8 years’ experience
 Product offered
o PGDM for fresher and < 4 years’ experience
o Executive program for 4 to 8 years experience
 Is PGDM HR and PGDM MSM segmentation? (No they are product offering
Some reflection
Education is for employment?

 Problem statement: A large number of arts/science and even engineering graduates

are not able to sell themselves due to lack of job-skills. Further hampered by
communication and personality
 There is huge demand for management education at undergraduate level. Not many
good brands.
o Opportunity for UG management program/Integrated 5-year management
program with 2 or 3 internship segments
Education is for self-growth, learn what you like

 Why should education be a scarce/shortage commodity

What are the customer segments? (My recommendation)

 Work status & Age (or life stage)

o UG level (Big opportunity considering the need gap)
o Fresher, 2 to 9 years, 10 to 15 years, > 15 years, Work + study?
 Management education that is job integrated
o Offer to those working in an organization with minimum 3 years work Exp.
weekend/evening thru a combination of virtual + campus segments
 Management education for SME and MSME
o Design content and learning relevant for
 Management education for start ups
 Enterprise as customer
o Work integrated/Custom management program
o Sector integrated management program
 Psychographic
o Motivation
 Self-growth
 Any Job
 Career growth
 Become an entrepreneur

Case prepared by Prof.Surya Mahadevan for class discussion