The Westwood Review - Lab to Market Class


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The Westwood Review - Lab to Market Class

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  2. 2. Value Proposition<br />“The Westwood Review provides high school studentswith more focused tutoring guaranteed to get them into at least one major university; it does this by focusing primarily on subjects designated by University of California, as necessary to get into at least one campus.”<br />Eligibility in the Local Context<br />UC-calculated GPA of 3.0 or higher <br />Complete 11 UC-approved “a-g” courses<br />Rank in top 4 percent of the expected graduating class<br />
  3. 3. No Child Left Behind Act of 2001<br />Creates a system for academic accountability<br />Responsibility on the states (California uses API system)<br />Base API (800 in California) and Growth API (usually 5 API points)<br />Scores based on STAR and CAHSEE<br />Only 36% meet Base API; only 53% meet Growth API<br />384 schools identified for improvement<br />Some of poorest performers are in the targeted region (Coachella Valley Unified School District)<br />
  4. 4. Company Website is being developed<br />Research continues on markets<br />In process of developing survey to gauge consumer preferences<br />
  5. 5. Parents want children to succeed academically<br />Dissatisfaction with public schools<br />Dependence on private tutoring<br />Increased competition for college and jobs<br />They will pay because of the long-term benefit<br />$30-$70per session (in-home); $20-$80 (in-class)<br />Benefit of self-sufficiency &gt; Cost of tutoring<br />High quality service increases prospect of attending college, becoming self-sufficient<br />Willing to pay higher rate for higher quality<br />The Westwood Review has a concrete goal<br />
  6. 6. In-home tutoring for subjects according to “a-g” requirement of the University of California<br />In-class tutoring for general reading/writing/science courses<br />These courses usually are those in the “a-g” requirement anyway<br />Match competitor guarantees to ensure quality<br />Big company with small company feel (strong tutor-student bond)<br />Advanced intranet and Internet site, for communicationwith (and between) tutors and with customers<br />
  7. 7. Approximately $4 billion market in total<br />Fragmented market (test prep, subjects, in-home, in-class)<br />Market Size<br />Overall Market Size: 5140 to 9388 students<br />Southern California Market: 2570 to 4700 students<br />In-Class (NCLB) Market Size: 79,000 students<br />San Diego Unified: 10,000 students (83% &lt; Base API)<br />Los Angeles Unified: 55,000 students (83% &lt; Base API)<br />Long Beach Unified: 7000 students <br />Santa Ana Unified: 4500 students (52% &lt; Base API)<br />Riverside Unified: 3400 students (2% &lt; Base API)<br />Only 20% of high schools in these counties meet Growth API(80% face penalties, which includes mandatory tutoring)<br />
  8. 8. Size of market (those between 2.8 and 3.2 GPA) is 9,388 students<br />Only 53% of ELC applicants were accepted to UC Berkeley or UCLA<br />42% of applicants who apply to UC Berkeley or UCLA might not be qualified at all<br />Applied to total number of applicants (ELC and non-ELC) gives market of 5140 students<br />Size of target market: 2570 to 4700 students<br />Revenue expected: $5.2 million (3635 students)<br />
  9. 9. Size of target market: 79,000 students<br />Revenue expected: $5.2 million (3635 students)<br />Approximately 15% of each school district’s students qualify for tutoring under NCLB<br />San Diego Unified: 10,000 students (83% &lt; Base API)<br />Los Angeles Unified: 55,000 students (83% &lt; Base API)<br />Long Beach Unified: 7000 students <br />Santa Ana Unified: 4500 students (52% &lt; Base API)<br />Riverside Unified: 3400 students (2% &lt; Base API)<br />
  10. 10. Can help achieve guaranteed admission to college<br />Can focus resources on training students in only a handful of subjects (University of California a-g requirement)<br />No property investment required (savings reinvested in company)<br />Target market attracted by:<br />Quality and experience of tutors<br />Prospect of guaranteed admission to college<br />Convenience of in-home tutoring<br />Ability to meet API growth requirements<br />
  11. 11. Direct: Private academic tutoring firms<br />Indirect: Schools and public-tutoring firms<br />Market split between national firms and smaller firms<br />National firms: Educate, Kaplan, The Princeton Review, Club Z!<br />The Westwood Review targets market that is underserved<br />In-home, academic subjects tutoring<br />More professional than largest competitor<br />Focused on short-term and long-term results (guaranteed admission)<br />Will honor competitor guarantees<br />
  12. 12. Kaplan: has two divisions which provide test prep and academic tutoring for students K-10. Tutoring is done at a learning center<br />The Princeton Review: provides test prep and academic tutoring for K-12 students; Tutoring is done in classrooms<br />Educate: provides tutoring for K-12 students at learning center and at home. Test prep primarily done at home, and academic tutoring done at a learning center<br />Club Z!: provides only in-home tutoring in many subjects; but appears rather too informal with no long-term goal.<br />
  13. 13. Target customers:<br />High school students between range of 2.8 and 3.2 GPA<br />School districts below state performance requirements<br />Customers can enroll online<br />Customers learn through word-of-mouth, and traditional channels (radio, television, print advertisements)<br />Price: $40 per session (in-home); $45 per session (in-class)<br />Marketing targets students, parents, and school districts<br />Detailing: school districts receive materials that eventually go home<br />Incentives for referrals<br />Parents ultimately decide with in-home and in-class tutoring<br />
  14. 14. Each divisionwill:<br /><ul><li>Have its own marketing budget
  15. 15. Be in charge of managing its own hiring and expansion
  16. 16. Haveadministrative staff responsible for building and maintaining relationships with the unique target audience</li></li></ul><li>Most communication is done on company Internet website and intranet<br />Central location should be close to all districts, because of heavy involvement in each<br />Commuting required to hire tutors; training done at central headquarters<br />As company grows, it can setup satellite offices in each county (near University of California campuses)<br />55,000 students (5,500 tutors)<br />3400 students (340 tutors)<br />4500 students (450 tutors)<br />10,000 students (1000 tutors)<br />
  17. 17. Break-even expected in the third quarter of the first year<br />Bulk of costs: Tutoring and Administrative Expense<br />Administration necessary to install tutors in the field<br />Funding primarily used to pay tutors and support administration<br />
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  20. 20. Oshin Aivazian, MBA (‘09)<br />Founder and President<br />Platrasha (2008)<br />Marketing – Strategy Intern<br />Revolution Test Prep (2007-2008)<br />Proctor and Subjects Tutor<br />Educate Inc (2002-2005)<br /> SAT Mathematics and Subjects Tutor<br />Private Tutor (2003-2004)<br />Aivazian Process Servers (2006-2007)<br />Founder and President<br />
  21. 21. Seeking $2 million Dollars (to cover mostly tutoring and administrative expenses)<br />This is one-time amount, company will be self-supportive<br />Used mainly to fund expenses while accounts are receivable<br />Cash from operating activities will be positive, during the third year.<br />
  22. 22. Strengths<br />Differentiating Factors (Tangible long-term benefit, experience/market knowledge)<br />Takeaway Points<br />Opening in market for in-home academic tutoring, by a national or regional brand<br />Increased competition, parents’ dissatisfaction, federal government policies will expand market<br />The market for tutoring continues to grow significantly in a poor economy<br />Most regional companies are eventually purchased by national firms<br />