Education in slums: The Digital Way

Slum dwellers find education the best tool to bring change

in their life. This project aims at bringing the change in the

most effective way by the use of technology.

Submitted by:

Group 5

Senthilkumaar D (47)

Shatakshi Tripathi (48)

Shikha Suresh (49)

Varun Bhargava (61)

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Letter of Transmittal

5th September 2015

Prof. Sabita Mahapatra- Consumer Behaviour

IIM Indore

Dear Ma’am,

The report has been prepared in the partial fulfillment of the Consumer Behaviour course at Indian Institute of

Management, Indore-PGP Mumbai. The following pages contain the primary research data for and analysis of

the usage of digital platform for development. If there is any additional information that is required; we will be

available for the same at your convenience.

Yours sincerely,

Senthilkumaar D (47)

Shatakshi Tripathi (48)

Shikha Suresh (49)

Varun Bhargava (61)

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Contents

Summary ................................................................................................................................................................................. 5

1. Introduction ..................................................................................................................................................................... 6

2. Methodology ................................................................................................................................................................... 6

3. Results of the Survey ...................................................................................................................................................... 7

4. Conclusion of the Survey ................................................................................................................................................ 7

5. Service Description ......................................................................................................................................................... 8

6. Pricing Strategy for the Service .................................................................................................................................... 10

7. Promotion Strategy ....................................................................................................................................................... 11

8. Limitations .................................................................................................................................................................... 12

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List of Tables and Figures

Table Name and No. Page No.

Selected Areas and their Population: Table 1 06

General Data: Table 2 10

Variable Cost Calculation: Table 3 10

Fixed Cost Calculation: Table 4 11

Income Calculation: Table 5 11

Break Even Calculation: Table 6 11

Monthly Profit Calculation: Table 7 11

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Summary

A lot of literature is available which defines how the bottom of the pyramid is a potentially big and growing

market base. With even the basic products which define need for many being the aspiration for these bottom of

the pyramid people, there are a lot of opportunities to explore

One such survey was done by us to ascertain the needs of the slums in and around Mumbai. After interviewing

about 200 people, there are some conclusions that we have drawn. We found that the slum dwellers consider

education to be the strongest tool that can bring about change in their life.

A business model has thus been prepared based on the findings. Further details are given in the report.

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1. Introduction

India is a fast developing nation which once upon a time used to be agriculture dependant. However, with

increasing opportunities in urban areas and increasing seasonality and reduced agricultural productivity owing

to the climate change, people from villages have started shifting towards the cities in search of regular

employment.

This excess shifting coupled with less pay scales have given birth to slums. The people of this region are

characterized by high aspirations but lack of purchasing power. Education, as per our primary research is

something they look forward to having. However, due to high school fees, most of them cannot afford it.

Our business model tries to fill this gap between the wants and purchasing power of the slum dwellers.

Details have been discussed in the following sections.

2. Methodology

2.1. Areas chosen for Sampling:

Sl No. Name of the Area Population of the Region

1 Dharavi 1,300,000

2 Baiganwadi 200,000

3 Rabale 225,000

Table 1: Selected Areas and their Population

2.2. Sampling Method Used:

2.2.1. Random Sampling: Random samples were taken per locality. However, care was taken that not

more than 7 respondents belong to the same ward

2.3. Target Audience

2.3.1. Slum dwellers; population characteristics to be defined after the survey results

2.4. Procedure

2.4.1. A questionnaire was prepared to get answers to critical questions given as under:

2.4.1.1. The average penetration of telephones in the region

2.4.1.2. The average penetration of smartphones in the region

2.4.1.3. Internet penetration in the region

2.4.1.4. Inclination of the people towards education

2.4.1.5. Acceptance of internet based teaching methods

2.4.1.6. Assess the major problems faced by the people in the region

2.4.1.7. Probable price of the service in case it is launched

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2.4.2. A list of the slum areas in and around Mumbai was prepared

2.4.3. Out of these, three major slum areas were selected based on the population density of these

regions

2.4.4. By the means of random sampling, a survey was done in these regions to assess the response

the service will generate if it is launched

2.4.5. The questionnaire was administered by usage of personal interview mode whereby each

question was discussed with the respondent to know his/her view on the subject

2.4.6. The data was collated and conclusions were drawn

3. Results of the Survey

3.1. 88.5% of the respondents own a phone with 41% penetration of smartphones and a further 30%

planning to buy a smartphone in the next 2 years

3.2. The internet connectivity penetration is only 20%

3.3. 89.5% of the respondent population has the basic abilities to read, write and make simple

mathematical calculations with 83.5% ready to study further if given a chance

3.4. 90% of the respondent population has up to 4 children with 67% of these having more than 2 children

3.5. 78% of the respondents had more than 3 dependants in the family

3.6. 86% of the respondents want their children to get good education and 100% of the respondent

population finds the prospect of internet based education exciting

3.7. With 62% of the population earning less than 10,000 INR per month and the rest below 15000 INR

per month, the maximum people can afford to pay for a good education is around 100-150 INR

3.8. About 68.5% of the respondents said that sanitation and health care facilities in their areas need

improvement with the remaining laying more stress on education

3.9. With 90% people believing that education can improve the overall life style, 97.5% of the people

said that given an opportunity and proper resources, they would like to teach within their community

4. Conclusion of the Survey

4.1. Due to the excessively poor internet and smartphone penetration in the region, the feasibility of an

educational mobile app is almost negligible

4.2. However, due to the interest people showed in the internet based education, it is possible to have

computer centers across a locality and impart education accordingly

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4.3. Due to the less monthly income and accordingly less purchasing power, the price of the product has to

be kept below INR 150, our team has after calculation decided to keep the price at INR 145 per month

4.4. Due to the positive response shown by majority respondents and yet taking a conservative estimate, we

assume an enrollment of at least 2000 children per locality

4.5. The service modeled on the said premises in described further under the headings of Product, Price and

Promotion

5. Service Description

5.1. The idea is to have one computer centre with 10 computers for a population of 150 Students

5.2. The classes will be held in two shifts of 9:00 a.m. to 2:30 p.m. and 3:30 p.m. to 9:00 p.m. with half an

hour break in middle

5.3. To capture the expected population of 2000 students per locality, 12 centers will be required per

locality. (Note: The calculation states 14 but due to resource constraints, we have limited the number to

12)

5.4. Two faculties will be stationed at each computer center, such that the availability is of one faculty per

shift

5.5. The schedule will be classes for 5 days, 1 day of training on health and sanitation improvement and 1

day off

5.6. Tie ups with Government organizations and schemes like NSDC (National Skill Development

Corporation) and NEGS (National Employment Guarantee Scheme) respectively to be done to provide

for employment of the deserving candidates

5.7. The key factor of usage of computers to impart education will cut down drastically on the

variable cost component of buying course books for individuals

5.8. Interactive study material will help in better understanding of the subject. Two shifts of 6 hours each

will provide students with alternate shifts for practicing online

5.9. Courses Offered

5.9.1. Educational

5.9.1.1. Mathematics

5.9.1.2. English

5.9.1.3. Hindi

5.9.1.4. Science

5.9.1.5. Computer Literacy (one hour daily in the stipulated 6 day scheduled classes)

5.9.1.6. Courses for Higher education, if anyone is interested

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5.9.2. Training Courses

5.9.2.1. Hand-washing and Cleanliness maintenance in the household

5.9.2.2. First Aid usage

5.9.2.3. Waste Disposal

5.9.2.4. Rain water harvesting

5.9.2.5. Pot hole digging

5.9.2.6. Make shift road construction

5.9.2.7. Basic Sanitation improvements

5.9.3. Mode of Teaching

5.9.3.1. Educational Videos

5.9.3.2. Study material to be provided for home work

5.9.3.3. Interactions with volunteering teachers online- session timings to be fixed as per the

volunteer’s convenience

5.9.3.4. Trainings to be offered online first, followed by live practical in the region

5.9.3.5. Vocational training in “grah udyogs” or home based industries to be provided through

live video streaming

5.9.3.6. Motivational lectures inspiring people to study to be offered online

5.9.3.7. Examinations to be held weekly on any day as a surprise

5.10. Incentive Plan

5.10.1. Community wide recognition given to the top 10 scorers in the tests

5.10.2. The deserving candidates will be provided help in garnering good jobs through both public and

private organizations

5.10.3. Depending upon the interest, some of the candidates will be recruited as faculties for these

centers on a payable basis

5.11. Sanitation and Healthcare Focus

5.11.1. As mentioned above, the training classes held on Saturdays will focus on basic sanitation and

healthcare facilities

5.11.2. Live video streaming with doctors will also be done to communicate the importance of good

sanitation practices

5.11.3. If the model works well and adequate profits are realized, then adequate inventory of sanitary

napkins for women and toilet soaps can also be maintained by collaborating with the local

NGOs. Adequate yet nominal fees can then be charged for them

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6. Pricing Strategy for the Service

6.1. Assumptions

6.1.1. The monthly price for the service per person will be INR 145. The calculations for the same are

illustrated below

6.1.2. The following calculations are based on the conservative estimate of 2000 enrollments

6.1.3. For families with more than 2 enrollment, discounted pricing will be employed as and when

required

6.1.4. Due to monetary constraints, the internet package chosen is an inexpensive one. Hence for the

initial period, the plan will be used to download the material and upload it on the drive which

will be thus used.

6.2. The computers will be brought second hand as they are inexpensive. The price has been defined as the

average price of a used desktop

No. of Faculties/ center 2

No. of students per center 150

No. of Centers for 2000 students 12

Total Faculties required 24

Table 2: General Data

Variable Costs (monthly) INR

Salary of one Faculty 9,000

Salary of 24 Faculties 216000

Rent of one Facility (computer

center+ classroom) 3500

Rent of 12 centers 42000

Internet Charges/ month/center 1000

Internet Charges/ month for all

centers 12000

Miscellaneous 8,000

Total Variable Costs 278,000

Table 3: Variable Cost Calculation

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Fixed Costs INR

Cost of purchasing one computer

(Second Hand) 9,000

Cost of purchasing 100 computer 900000

Cost of projectors (Unic UC28 Mini

LED) 48000

Cost of laptop per center 288000

Total Fixed Cost 1236000

Table 4: Fixed Cost Calculation

Income INR

Cost of service per person 150

Cost of serving 2000 people 300000

Table 5: Income Calculation

Break Even Point (months) 56

Break Even Point (years) 4.7

Table 6: Break Even Point Calculation

Monthly Profit/Loss (INR) 22,000

Profit of INR 22000

Table 7: Monthly Profit Calculation

7. Promotion Strategy

7.1. The whole campaign needs to be built making education as an aspirational product which is actually a

necessity

7.2. The most important point to be considered is the poor literacy rate and lack of mass media in these

7.3. Thus, unconventional marketing strategies will have to be followed

7.4. Road shows will have to be organized based on “education” as the theme projecting how an educated

person can make change to the society. Some of the ideas are given below:

7.4.1. How by good education, you can read the newspaper/ road side advertisement pamphlets and

know about the various job opportunities

7.4.2. How by getting good knowledge, people know about the minimum wages that they need to get

7.4.3. How vocational training helped someone open a shop of their own

7.4.4. How, by getting good education, you can actually choose from the multiple plans available for

your mobile network and make a choice that suits you

7.4.5. The cliché but the most aspirational- how education changes a person’s life style

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7.5. To make the people interested in such shows, it would be better to involve local youths and children to

play the roles for some basic payment. These people, will thus bring the audience with them and will

send the message more effectively

7.6. Trust needs to be built up among these masses- this can be done by providing them demonstrations of

the total functionality and asking them to pay only after a free weekly class if they find it useful

7.7. Videos emphasizing the importance of education need to be shown in the vernacular language

7.8. Other ideas for PR campaigns include:

7.8.1. Emphasizing the importance of sanitary napkins for menstruating women by showing videos of

the diseases that happen

7.8.2. Showing video of the germs that our present on our hands and the way they can infect us if we

do not wash them

7.8.3. Showing videos of people who have benefitted from education in a story mode so as to engage

more people from slums

7.8.4. Short duration classes of around 10-15 minutes projected on big screens emphasizing on the

impact that education has on one’s life

8. Limitations

8.1. The sample size selected is very small as compared to the overall size of the population

8.2. Money and time constraints posed a great barrier for a further detailed research