5 C’s Marketing Analysis of BYJU’S The Learning App

The 5Cs of Marketing Analysis are -

1 - Company,
2 - Customers,
3 - Competitors,
4 - Collaborators, and
5 - Context.

Byju's App faces 4 major types of risk exposures – risk corresponding to technological
innovations, demand risks, production or delivery risks, and international risks.

Company Analysis - 5C of Marketing

Key Question Answered – What are the strengths and weaknesses of the company and
how marketing can improve the effectiveness of its core strength and alleviate the
impact of its weaknesses.

Marketing managers at Byju's App needs to analyze the internal strengths and
weaknesses of the company before making marketing decisions. Each organization
has different marketing budget, different skill sets to execute marketing strategies and
promotional campaigns. The company analysis will help the Byju's App to optimize the
use of the marketing resources. In terms of the four risks mentioned above
–Marketing managers at Byju's App needs to focus on risks corresponding to
production and delivery risks. If the company fails to match the consumer
expectations then no amount of smart marketing can build a sustainable competitive
advantage.

Company Factors

Ability to scale production – Byju's App has a robust and flexible supply chain so it can
meet the challenges of managing success arising from highly successful marketing
efforts that lead to surge in consumer demands for its products.
Financial position and availability of resources for marketing – The financial position of
Byju's App is strong and it can afford to spend significant amount of resources on
marketing for – launching new products and to better position existing brands.

Research and Development spending – As a leader in various product segments, Byju's

App spends significant amount of resources on research and innovation in field of –
product design, process optimization, marketing strategies, and building IT network to
support all the promotion and distribution strategies.

Culture of the Byju's App – As the BYJU's The Learning App explains the firm has a
strong culture of product and process innovations.

Customers - 5C Marketing Analysis

Key question answered - How Byju's App can identify attractive market segments and
choose a market targeting strategy.

Marketing strategy of Byju's App needs to meet two broad objectives – carefully
selecting target market and designing marketing activities to achieve desired
positioning in hearts and minds of the target market. Customer analysis by marketing
managers of Byju's App can include – growth rate of the industry, potential market size
of both the overall market and target segment, tangible and intangible product
features desired by consumers in the industry, core purpose of buying the products,
frequency of purchase, recent purchases, industry trends, income levels etc.

Based on our 4 broad risk framework for 5C analysis – marketing managers should
focus on demand risk and technology risk in customer analysis section.

Marketing strategy of Byju's App needs to meet two broad objectives – carefully
selecting target market and designing marketing activities to achieve desired
positioning in hearts and minds of the target market. Customer analysis by marketing
managers of Byju's App can include – growth rate of the industry, potential market size
of both the overall market and target segment, tangible and intangible product features
desired by consumers in the industry, core purpose of buying the products, frequency of
purchase, recent purchases, industry trends, income levels etc.
Based on our 4 broad risk framework for 5C analysis – marketing managers should
focus on demand risk and technology risk in customer analysis section.

Customers Factors

Who the target customer is – Should Byju's App go for a broader segment or position its
product in niche segment. My suggestion is that it should focus on the niche segment
as it is highly profitable.

How to grow share of customers purchase basket – The decision marketing

department at Byju's App needs to take – How it can grow the customer purchase
basket share with Byju's App products.

What is market size of the segment that Byju's App wants to target – I believe the
market size will grow at a steady pace and it will present various opportunities to
expand into adjacent segments.

What is the level of brand awareness among target segment and general population –
The brand awareness among the target segment and among wider population is high.
Byju's App can leverage on it to build sub brands for niche segments within the target
market and adjacent segments.

What type of product Byju's App is selling – High involvement product or low
involvement product require different marketing strategies. High involvement products
often have higher brand loyalty and less price sensitivity compare to low involvement
products where industry players often compete on prices.

Competitors - 5C Marketing Analysis

Key Question Answered – Who the competitors are, what their marketing strategy is,
and how Byju's App can design its marketing strategy in view of competitive pressures
and limited marketing resources.

The core function of marketing strategists and marketing managers is to design

marketing activities that can help Byju's App to thwart competitive pressures from
established players as well as potential entrants. Marketing managers of Byju's App
has to make decisions regarding –
Where to position the brands respective to Byju's App own brands portfolio and
competing brands

What are the marketing strategies of competitors.

Should Byju's App competes directly with the competitors or find niche positions
within the segments.

What type of competition there is in the industry that Byju's App operates in.

Based on our four risks exposure framework – In competitors analysis marketing

managers of Byju's App should closely analyze – demand risks and technology
innovation risks.

Competitors Factors

Intensity of rivalry among existing players – if the intensity is high then the profitability
is usually low in any industry. Thus it requires Byju's App to spend higher resources on
marketing efforts.

What will drive future growth and how competitors will try to take share of that future
growth – technology innovations can result in making present positioning less profitable
so Byju's App needs to continuously innovate and look for new opportunities.

Countering Marketing Campaigns of Competitors – Often one competitor campaign has

to be matched with a counter campaign to stop the product trial of the competitor’s
product by the firm loyal customers. It has to be done to control the churn of customers.

Product Line Breath Decisions – This not only pertains to Byju's App product strategy
but also its distribution and supply chain management strategy. Broader line requires
more positioning strategies and higher marketing spending.

Product Line Depth Decisions for Byju's App – Depth involves targeting different
segments within the same product range. Higher the depth, the more the company
needs to spend on individual brands without putting too much focus on the parent
company.
Threats of substitutes to Byju's App – The threats of substitutes often arise either from
economic cycle or technological innovation. It may require repositioning of certain
brands on part of Byju's App in certain markets.

Threats of new entrants to profits of Byju's App – Marketing efforts are often barriers to
entry in the industry and new entrants not only have to have huge marketing resources
to compete with the incumbents but also need high level of marketing know how.

Positioning strategy vis a vis competitors – The critical marketing decisions for
managers at Byju's App is what strategic position to choose which at same time is –
different from competitors and relevant to the customers.

Collaborators - 5C Marketing Analysis

Key Question Answered – How flexible & robust Byju's App supply chain is and how
much bargaining power the collaborators in the value chain have.

Collaborators include the supply chain partners both upstream and downstream of the
value chain. For doing Collaborators analysis Byju's App needs to critically evaluate the
supply chain based on numerous factors such as – bargaining power, what suppliers
bring to table, flexibility & agility of supply chain, revenue sharing at each step of the
value chain.

Based on risk exposure parameters under the collaborators analysis Byju's App
marketing managers should focus on risk exposure to international risks (because
Byju's App has international operations), and production and delivery risks. For example
if the collaborators effectively able to meet the demand increased by effective
advertising of Byju's App marketing department then it will go a long way in enabling the
company to thwart new competition and devise premium pricing strategy.

Collaborators Factors
Number of suppliers and abilities of the suppliers – If there are too many suppliers then
it will become expensive for Byju's App to manage them but if the number of suppliers is
too few then it will expose the company to supply chain disruption risks.
Managing delivery and services in times of uncertainty – Most global organizations
such as Byju's App are diversifying rapidly to reduce delivery and supply chain risks.
Byju's App should also focus on it.

Flexibility of supply chain and international risks – In international markets the critical
question in front of Byju's App is how much localize based on local preferences. Rest of
the decisions from production to marketing is based on this critical decision.
Opportunities to localize the production and other processes to reduce risk of
organization wide supply chain risk in international market.

Risks to intellectual property rights and patents – Operating in international markets can
expose Byju's App to theft of Patents, Copyrights and other Intellectual Property Rights.
Any marketing and diversification decision should be taken after evaluating these risks.

Position and bargaining power in the value chain – If the collaborators have strong
bargaining power then Byju's App will not able to sustain higher margins even with
higher marketing expenditure.

Context - 5C Marketing Analysis

Key Question Answered – Which are the macro economic factors that will significantly
impact both the business model and the marketing strategy.

Context Analysis encompass the diligent analysis of macro environment factors such
as – political and social environment, regulatory environment, economic conditions in
the markets that the Byju's App operates in, rate of technology innovations in the
industry, legal environment, environmental standards in the industry etc.

Two main forms of risk exposure in the context analysis are – International risks, and
technology & innovation risks exposure.

Context Factors
Political Risks to Byju's App – Geo-political risk have increased over the last three to
four years with developments such as US-China trade situation, Brexit, and rise of yellow
vests in France.
Regulatory Framework – It not only impacts the type of the advertising and marketing
campaign a company can run but also the type of products Byju's App can sell. For
example the standards & regulations for Byju's App products in US and European Union
are vastly different.

Foreign Exchange Exposure – International operations not only bring risks of marketing
strategies that are not relevant to specific market but also risk of foreign exchange
exposure. In last 10 years most US organizations have lost money because of FX
exposure in countries such as Venezuela, Argentina, Turkey, Russia & Indonesia.

Employment – Given the employment crisis in Western Europe and emergence of Gig
economy and employment in US and all the major western economies – employment
has become a critical factor in designing marketing strategy. Employment not only
impacts the purchasing power of the customer but also impacts the self esteem and
brands she can associate with.

Inflation & Diversification – Inflation impacts the pricing strategy of Byju's App as high
inflation can result in lower income from the present sales.

Economic – The consumer behavior during boom time and recession time is often
totally different so marketing managers at Byju's App has to decide how the consumers
will behave in the present economic situation.