The Pricing of CLCNCCU

102933047 Vivian Peralta102933053 Kay Jiravanichkul102933029 Victor Kuo101933027 Sam Hsieh99933021 Rick Hsiung

• Why learning Chinese? - China Market - Fashion - Cool

• Why learning Chinese in Taiwan? - Hospitality - Low living cost

• Net work effect

• Incentive scheme Doing business more easily if one can speak Chinese• Tipping effect Reform and open policy would increase the demand of

Chinese speakers and eventually make more demands on Chinese speakers

Growing China Large Market Benefit from

speking Chinese

How important Chinese is???

Foreign students in Chinese Center

Year 2012

• NCCU 922 people• NTNU 3392 people• NTU 952 people• CCU 1033 people

Data from: http://ois.moe.gov.tw/html/O00Statistics.html

Comparing CLCNCCU to Other Language Centers in Taipei

• Introduction of Courses, Pricing, and other information of NCCU, NTNU, NTU, and CCU

Course Introduction

• Compare the price of regular courses and intensive courses between the different language centers

Comparison • Make suggestions to CLCNCCU’s courses and pricing strategy in order to maximize its profit

Conclusion & Suggestions

Course and Price Comparison

• NCCU

• NTNU

• NTU

• CCU

General Information• Established: more than 20 Years ago• Staff: 3 Assistants, Around 30-40 teachers• Classrooms Available: 18• All CLC classes are divided into: Beginning 30-40%, Intermediate + High – Intermediate 50-60%, advanced

levels 0-10%

Course Provided - RegularCourse Provided – Part-time• Regular Mandarin Chinese courses four terms a year: Spring, Summer, and Fall terms - last 12 weeks with a

total of 180 teaching hours. (15 hr/week); Winter term – last 10-week with 150 teaching hours. (15 hr/week)

• Part-time class is offered for exchange students only 6 hr/week at a Basic Level

Information related to class size and other offerings• Number of students: 200 to 400 students per term – around 50% are exchange or degree

students from NCCU.• 7 to 10 students per class • With current resources, CLCC could be able to offer courses for up to 400 to 500 students per

term

Cost structure of course• 50% - teacher’s wage• 10% - administration fee to school • staff + overhead + others: 30%

• 20% off for staffs, 10% off for registered students.• 10 students could receive COC scholarship according to their

score, performance, teacher’s recommendation, etc.• The course prices are below industry average, therefore CLCC

is raising tuition fee up 10 TWD/hr (1,800 TWD/term) starting from fall semester 2014.

Course Total Hours(per Term)

Tuition(NTD/Term)

Tuition(NTD/hr)

Regular – Spring, Summer, and Fall 180 27,500150

Regular – Winter 150 23,000Part-time 60 10,200 170

General Information•The Mandarin Training Center was established in 1956•Largest and most well known Mandarin language center •around 1,700 students from more than 70 countries enrolled each academic quarter(three months.)

Courses Provided•provides month-long intensive language classes•two to six week intensive language and culture, culture and the arts•business Chinese instruction•Mandarin Summer Camps for children and teenagers

Information related to class size and other offerings•It has more than 100 teachers•Class size is between 6 to 10 students per class• wide variety of course offerings related to Chinese culture, as well as many extra-curricular activities (fee applies), including cuisine, calligraphy, Chinese painting, kung-fu

• The Mandarin Training Center offers individual courses and charge according to the hours per week.

• They have terms of three, two and one months.• Culture class: 4,500 NTD/2hrs, For a period of three months 2 hr/per class.• Chinese Teacher Training Class : 22,000 NTD/term

Course Total Hours(per Term)

Tuition(NTD/Term)

Tuition(NTD/hr)

Intensive (3 Months) 180 32,400180

Intensive (2 Months) 120 21,600Regular (3 Months) 120 25,200

210Regular (2 Months) 80 16,800One-on-one – 3 Month 30 ~ 150 16,800 ~ 84,000 560One-on-one – 2 Month 24 ~ 120 11,200 ~ 56,000 467

General Information•Established in Oct. 1984•Has about the 3rd larget number of foreign studetns among Taiwan’s universities•Around 200 students from about 30 countries enrolled each academic quarter (three months)

Courses Provided•Provides regular courses from basic through advanced levels•Assists with elective courses with special needed such as Learning Chinese from Chinese Songs, Business Chinese, Chinese Idioms, etc•Also provide cultural learning courses

Information related to class size and other offerings•Number of teachers remains around 30•Class size is between 4 to 6 students per class• The student body is around 200 each terms: 50% are from Asia, 18% are from America, 16% are from Europe, 10% are from Australia, 3% are from Africa, and 3% are from Oceania

• The regular courses are 15 hrs/week, 12 weeks/term; the price per hour is uniform in each level and each term

• Elective courses are provided with class size from 5 ~ 15 students. The courses last 2 hrs/week, either 4 or 6 weeks/term according to the content

• Cultural Courses: Dough Figurine Sculpture, Aboriginal Totem Sculpture, Calligraphy, Taiwan Cultures and Society: Multi-Ethnic Culture

• Special, small group courses also provided for specific needs: Pronunciation, Chinese characters reading/writing, Practical Audio-Visual Chinese I~IV, Far East Daily Chinese III, Mini Radio Play

Course Total Hours(per Term)

Tuition(NTD/Term)

Tuition(NTD/hr)

Regular – Spring, Summer, and Fall 180 35,000194

Regular – Winter 150 29,100Elective (4 weeks) 8 2,000

250Elective (6 weeks) 12 3,000Special Course (One-on-one) 600 600Special Course (2 students) 800 400

Special Course (3 students) 950 317

General Information•The Mandarin Learning Center was established in 1992•The 2nd largest language center among Taiwan’s universities•Around 1,100 students from more than 60 countries enrolled each academic quarter (three months)

Courses Provided•Various courses provided to fulfill a wide vairety of needs•Provides students with regular courses as well as intensive courses, covering from basic through advanced levels•Also provides courses for special needs such as cultural, business, Chinese teacher training, proficiency, and language & cultural camp

Information related to class size and other offerings•Full-time teacher: around 30; part-tme and project based falculty: around 50•Class size is between 6 to 12 students per class• Facilitiies: digital learning center including online learning area, multi-media center, digital artistic creation center, meeting rooms, etc•Two campus: Jianguo Head School and Zhongxiao School

Course Total Hours(per Term)

Tuition(NTD/Term)

Tuition(NTD/hr)

Regular – Beginner 180 19,800 110

Regular – Above Beginner 120 19,800 177

Part-time – Beginner 180 22,000 122

Part-time – Above Beginner 120 19,600 163

Small Group on Campus Course (One-on-one) 1,000 ~ 1,200 1,000 ~ 1,200

Small Group off Campus Course (One-on-one) 1,500 1,500

Small Group on Campus Course (2 ~ 4 students) 1,500 ~ 2,100 525 ~ 750

Small Group off Campus Course (2 ~ 4 students) 1,100 ~ 2,100 525 ~ 850

- Regular course: - Intense long-term Program, 5 levels – Basic, Intermediate, Intermediate-advanced, Advanced and Super-advanced, with 3

stages in each level, total up to 15 states - 6 ~ 12 students/class, 12 weeks - Beginner: 3hrs/day, Intermediate through advanced: 2hrs/day- Part-time course (for exchange students, short stop foreigners, etc): - 5 levels, 15 stages, 15 hrs/week- Individual Class and 2 to 4 persons small group class- Others: Business Mandarin Course, Skills Reinforcement, Chinese Culture, TCSL Chinese Teacher Training Class Series, Chinese

Business Seminar, Kid’s and Teenage Summer Mandarin Language Camp, HSK Chinese Profiency Test

NCCU

Course Total Hours(per Term)

Tuition(NTD/Term)

Tuition(NTD/hr)

Regular – Spring, Summer, and Fall 180 27,500150

Regular – Winter 150 23,000

Part-time 60 10,200 170

NTNU

Course Total Hours(per Term)

Tuition(NTD/Term)

Tuition(NTD/hr)

Intensive (3 Months) 180 32,400180

Intensive (2 Months) 120 21,600

Regular (3 Months) 120 25,200210

Regular (2 Months) 80 16,800

NTU

Course Total Hours(per Term)

Tuition(NTD/Term)

Tuition(NTD/hr)

Regular – Spring, Summer, and Fall 180 35,000194

Regular – Winter 150 29,100

Elective (4 weeks) 8 2,000250

Elective (6 weeks) 12 3,000

CCU

Course Total Hours(per Term)

Tuition(NTD/Term)

Tuition(NTD/hr)

Regular – Beginner 180 19,800 110

Regular – Above Beginner 120 19,800 177

Part-time – Beginner 180 22,000 122

Part-time – Above Beginner 120 19,600 163

Comparison

Findings & Suggestions

Findings• NCCU’s price of

the courses are among the cheapest ones in Taipei

• NTNU has the highest number of students (demand); NTU has about the same number of students (demand) to that of NCCU and it charges even more. From above it implies that there exist buyer surplus from NCCU’s pricing

Raise Price• NCCU should

revise its pricing (uniform pricing) and evaluate if it should use another type of pricing policy.

• For regular and part-time (intensive) courses, NCCU has the room to increase its seller surplus by raising the per hour price of the classes.

Increase Production• CLCNCCU

currently has 200 students taking classes and it has the capacity of offering courses to up to 500 students. This means it is not fully utilizing its capacity (MC < MB) and not reaching the Profit Maximizing condition (MC = MB). Therefore it should continuously try its best to attract more students (produce more)

Provide More Types of Product• There are

demands for small-group courses, cultural courses, business courses, Chinese teacher training courses…etc. CLCNCCU could consider entering the market to fulfill the potential customers and earn more profit. However, in that condition, CLCNCCU should consider leveraging its resources (cost) also

• Which kind of pricing strategy (uniform, direct/indirect segment discrimination, etc) should CLCNCCU implement to maximize its profit?

Q & A

Special Thanks To

• CLCNCCU Administrator Tai, Win-Whay (Carol)• Angels who help us see the shark: - Sabrina Lee

- Kim Manh Tuan - Noah Kercher - Jose Astorga

Finally Thank you all for your listening!