1. The Pricing of CLCNCCU The Pricing of CLCNCCU 102933047 Vivian Peralta 102933053 Kay Jiravanichkul 102933029 Victor Kuo 101933027 Sam Hsieh 99933021 Rick Hsiung

2. Why learning Chinese? Why learning Chinese? - China Market - Fashion - Cool Why learning Chinese in Taiwan? Why learning Chinese in Taiwan? - Hospitality - Low living cost

3. Net work effect Net work effect Incentive scheme Incentive scheme Doing business more easily if one can speak Chinese Tipping effect 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???

4. Foreign students in Chinese Center Year 2012 NCCU NCCU922people NTNU NTNU3392 people NTU NTU952people CCU CCU1033 people Data from: http://ois.moe.gov.tw/html/O00Statistics.html

5. 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

6. Course and Price Comparison NCCU NCCU NTNU NTNU NTU NTU CCU CCU

7. 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%

8. 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 Fall18027,500 150 Regular – Winter15023,000 Part-time6010,200170

9. 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

10. 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)18032,400 180 Intensive (2 Months)12021,600 Regular (3 Months)12025,200 210 Regular (2 Months)8016,800 One-on-one – 3 Month30 ~ 15016,800 ~ 84,000560 One-on-one – 2 Month24 ~ 12011,200 ~ 56,000467

11. 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

12. 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 Fall18035,000 194 Regular – Winter15029,100 Elective (4 weeks)82,000 250 Elective (6 weeks)123,000 Special Course (One-on-one)600 Special Course (2 students)800400 Special Course (3 students)950317

13. 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

14. Course Total Hours (per Term) Tuition (NTD/Term) Tuition (NTD/hr) Regular – Beginner18019,800110 Regular – Above Beginner12019,800177 Part-time – Beginner18022,000122 Part-time – Above Beginner12019,600163 Small Group on Campus Course (One-on-one)1,000 ~ 1,200 Small Group off Campus Course (One-on-one)1,500 Small Group on Campus Course (2 ~ 4 students)1,500 ~ 2,100525 ~ 750 Small Group off Campus Course (2 ~ 4 students)1,100 ~ 2,100525 ~ 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

15. NCCU Course Total Hours (per Term) Tuition (NTD/Term) Tuition (NTD/hr) Regular – Spring, Summer, and Fall18027,500 150 Regular – Winter15023,000 Part-time6010,200170 NTNU Course Total Hours (per Term) Tuition (NTD/Term) Tuition (NTD/hr) Intensive (3 Months)18032,400 180 Intensive (2 Months)12021,600 Regular (3 Months)12025,200 210 Regular (2 Months)8016,800 NTU Course Total Hours (per Term) Tuition (NTD/Term) Tuition (NTD/hr) Regular – Spring, Summer, and Fall18035,000 194 Regular – Winter15029,100 Elective (4 weeks)82,000 250 Elective (6 weeks)123,000 CCU Course Total Hours (per Term) Tuition (NTD/Term) Tuition (NTD/hr) Regular – Beginner18019,800110 Regular – Above Beginner12019,800177 Part-time – Beginner18022,000122 Part-time – Above Beginner12019,600163 Comparison

16. 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

17. Which kind of pricing strategy (uniform, direct/indirect segment discrimination, etc) should CLCNCCU implement to maximize its profit? Which kind of pricing strategy (uniform, direct/indirect segment discrimination, etc) should CLCNCCU implement to maximize its profit? Q & A

18. 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!