培養年輕世代的數位運用能力 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 sit. y. Nat. 培養年輕世代的數位運用能力 n. al. er. io. Digital Literacy for the Young Generation. Ch. engchi. i n U. v. Student: Melissa Alvarado Advisor: Professor Jason Tsai. 中華民國 107 年 5 月 May 2018. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(2) 培養年輕世代的數位運用能力 Digital Literacy for the Young Generation. 研究生：梅莉莎. Student: Melissa Alvarado. 指導教授：蔡政憲. 政治大國立政治大學. 學. ‧ 國. 立. Advisor: Jason Tsai. 商學院國際經營管理英語碩士學位學程. ‧. 碩士論文. sit. y. Nat. io. er. A Thesis. Submitted to International MBA Program. n. a. iv. l C Chengchi University National n. hengchi U. in partial fulfillment of the Requirements for the degree of Master in Business Administration 中華民國 107 年 5 月 May 2018. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(3) Acknowledgements I would first like to thank God for providing me with the opportunity of studying my Master’s Program in Taiwan and I would also like to express my gratitude towards Professor Tsai, my thesis advisor, for his feedback and guidance throughout the whole process. I am also thankful to the Taiwan government and this university for offering me resources to improve my higher education studies. And last but not least, acknowledge the support of my. 政治大. family, friends, classmates and working colleagues in every aspect of the research for this thesis.. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. i. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(4) Abstract Digital Literacy for the Young Generation By Melissa Alvarado This thesis is based on a business plan for the setup of a digital academy in El Salvador open to further expansion in Latin America.. 治政 The education environment in Latin America is subject to大 proper curriculum updates performed 立 by the government and private schools, which has so far proven to lag with the fast pace of the ‧ 國. 學. industry. These institutes educate young people with basic concepts based on a traditional. ‧. perspective which are proven to be effective but not enough to equip students with trending skills the industry is requiring, therefore leaving a huge group of unemployed young talents that. y. Nat. io. sit. require to further invest time and money to equip themselves with such skills. This academy. n. al. er. intends to decrease the potential percentage of unemployable young talents in the future by. Ch. i n U. v. anticipating required digital, technological, and soft skills to equip young talents with. It is. engchi. intended for this academy to be a pioneer in El Salvador and offer children, teenagers and young adults a proper exposure to technological, digital and business courses along with hands-on project opportunities with our partners. To properly design this business plan, the authors relied on deep industry and market studies which set the base for a detailed execution plan. Based on these studies and plan, a financial analysis was applied proving and demonstrating the feasibility and profitability of this business plan.. ii. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(5) TABLE OF CONTENTS 1. COMPANY SUMMARY...................................................................................................... 1 1.1. MISSION ............................................................................................................................ 1 1.2. VISION AND MOTIVATION.................................................................................................. 1 1.2.1. Vision ...................................................................................................................... 1. 政治大. 1.2.2. Motivation............................................................................................................... 1. 立. ‧ 國. 學. 1.3. LEGAL STRUCTURE ........................................................................................................... 2 1.4. VALUE PROPOSITION ......................................................................................................... 2. ‧. 1.4.1. Service Roadmap .................................................................................................... 2. sit. y. Nat. n. al. er. io. 2. MARKET ANALYSIS.......................................................................................................... 5. Ch. i n U. v. 2.1. METHODOLOGY ................................................................................................................ 5. engchi. 2.2. INDUSTRY OVERVIEW ....................................................................................................... 5 2.2.1. Global Education Industry ..................................................................................... 5 2.2.2. Latin American Industry ......................................................................................... 7 2.2.3. El Salvador Industry ............................................................................................... 9 2.3. SCREENING ..................................................................................................................... 12 2.3.1. Age Group ............................................................................................................. 12. iii. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(6) 2.3.2. Household Affordability........................................................................................ 14 2.4. CONSUMER ANALYSIS .................................................................................................... 15 2.4.1. Survey Design ....................................................................................................... 15 2.4.2. Survey Results ....................................................................................................... 16 2.4.3. Consumer Behavior .............................................................................................. 23. 政治大. 3. MARKETING AND IMPLEMENTATION STRATEGY .............................................. 25. 立. ‧ 國. 學. 3.1. SERVICE MARKETING 7 PS .............................................................................................. 25 3.1.1. Product ................................................................................................................. 25. ‧. 3.1.2. Place ..................................................................................................................... 29. sit. y. Nat. io. n. al. er. 3.1.3. Promotion ............................................................................................................. 31. i n U. v. 3.1.4. Pricing .................................................................................................................. 34. Ch. engchi. 3.1.5. People ................................................................................................................... 35 3.1.6. Process .................................................................................................................. 38 3.1.7. Physical Evidence ................................................................................................. 39 3.2. SWOT ANALYSIS ........................................................................................................... 40 3.2.1. Strengths ............................................................................................................... 40 3.2.2. Weaknesses ........................................................................................................... 40. iv. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(7) 3.2.3. Opportunities ........................................................................................................ 41 3.2.4. Threats .................................................................................................................. 41 3.3. KEY PARTNERS ............................................................................................................... 42 4. LONG TERM PLAN.......................................................................................................... 44 5. FINANCIAL PLAN ............................................................................................................ 45 5.1. INITIAL INVESTMENT. 政治大 ...................................................................................................... 45 立. ‧ 國. 學. 5.2. REVENUE FORECAST....................................................................................................... 46 5.3. PROJECTED PROFIT AND LOSS .......................................................................................... 47. ‧. sit. y. Nat. 5.4. SENSITIVITY ANALYSIS ................................................................................................... 51. n. al. er. io. 5.5. CASH FLOW PROJECTION ................................................................................................ 53. i n U. v. 5.6. BREAK-EVEN AND PROFITABILITY ANALYSIS .................................................................. 54. Ch. engchi. REFERENCES ....................................................................................................................... 56 APPENDIX ............................................................................................................................. 58. v. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(8) List of Tables TABLE 1: CURRICULUM ............................................................................................................... 3 TABLE 2 : AGE STRUCTURE ......................................................................................................... 9 TABLE 3: POPULATION BACKGROUND ....................................................................................... 10 TABLE 4: TARGET AGE GROUP BY DEPARTMENT....................................................................... 13. 政治大. TABLE 5: SCREENING 1 .............................................................................................................. 13. 立. TABLE 6: SCREENING 2 .............................................................................................................. 14. ‧ 國. 學. TABLE 7: SOCIO-ECONOMIC CLASS DISTRIBUTION IN URBAN AREAS OF SAN SALVADOR .......... 15. ‧. TABLE 8: TARGET MARKET DEMOGRAPHICS............................................................................. 24. y. Nat. er. io. sit. TABLE 9: TARGET MARKET PSYCHOGRAPHICS.......................................................................... 24 TABLE 10: SEGMENTED VALUE PROPOSITION ........................................................................... 27. n. al. Ch. engchi. i n U. v. TABLE 11: PROMOTION PROGRAM DESIGN ................................................................................ 33 TABLE 12: PRICING PACKAGES .................................................................................................. 34 TABLE 13: TEAM RESPONSIBILITIES .......................................................................................... 36 TABLE 14: LONG TERM ROADMAP ............................................................................................. 44 TABLE 15: INCOME STATEMENT FORECAST ............................................................................... 50 TABLE 16: WORST CASE SCENARIO .......................................................................................... 51 TABLE 17: BEST CASE SCENARIO .............................................................................................. 52 vi. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(9) TABLE 18: CASH FLOW STATEMENTS ......................................................................................... 53 TABLE 19: BREAK-EVEN ANALYSIS ........................................................................................... 54 TABLE 20: PROFITABILITY ANALYSIS ........................................................................................ 54. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. vii. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(10) List of Figures FIGURE 1: POPULATION PYRAMID .............................................................................................. 10 FIGURE 2: WAGE RANGE............................................................................................................ 16 FIGURE 3: PRICING .................................................................................................................... 17 FIGURE 4: SCHEDULE DESIGN.................................................................................................... 18. 政治大. FIGURE 5: INSTRUCTION LANGUAGE ......................................................................................... 18. 立. FIGURE 6: INSTRUCTOR GENDER ............................................................................................... 19. ‧ 國. 學. FIGURE 7: TEACHING METHOD .................................................................................................. 19. ‧. FIGURE 8: MATERIAL AFFORDABILITY ...................................................................................... 20. y. Nat. er. io. sit. FIGURE 9: PREFERRED CONTENT................................................................................................ 20 FIGURE 10: PREFERRED WAY TO REACH CUSTOMERS............................................................... 21. n. al. Ch. engchi. i n U. v. FIGURE 11: INTEREST IN FUTURE PARTNERSHIPS ........................................................................ 22 FIGURE 12: OPEN FEEDBACK ..................................................................................................... 22 FIGURE 13: ORGANIZATIONAL STRUCTURE ............................................................................... 36 FIGURE 14: SERVICE PROCESS OVERFLOW ................................................................................ 38 FIGURE 15: INITIAL INVESTMENT .............................................................................................. 45 FIGURE 16: SALES FORECAST .................................................................................................... 47 FIGURE 17: FIRST STAGE COSTS ................................................................................................ 48 viii. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(11) FIGURE 18: SECOND STAGE COSTS ............................................................................................ 49. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. ix. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(12) 1. Company Summary 1.1. Mission The company’s mission is to equip and train the new generation with the digital and technological literacy required to unleash their maximum potential.. 1.2. Vision and Motivation 1.2.1. Vision. 治政 “To become a talent incubator that provides coaching to 大 the future generation for them to better 立 develop their skills to match the future world’s needs.” ‧ 國. 學 ‧. 1.2.2. Motivation. To gain a deeper understanding of the personal objectives behind this company’s vision, it is. y. Nat. io. sit. relevant to mention that the interest in education was mainly gained after working as a business. n. al. er. consultant and coach to young aspiring entrepreneurs for a tech conference in San Salvador, El. Ch. i n U. v. Salvador. Considering a digital era we currently live in, where competition is already fierce,. engchi. digital literacy is becoming more relevant professionally. It is not a surprise that for the future generations digital literacy will not be an option but a must if they are to succeed.. The ultimate. objective is to be able to potentially reduce the percentage of unemployable young people in the future within the Latin American region by providing training on trending skills to the young generations. Given the fact that the education system in Latin America lags to adapt to current trends, the motivation behind this company is to bridge the gap by providing specialized focused training for the areas that are not met in school. During the founder’s master’s program studies, she. 1. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(13) joined a company from Hong Kong that specializes in offering tech education to children and teenagers in Asia. From this working experience, she learned main operation skills and marketing strategies to adapt this concept as a new business venture in Latin America.. 1.3. Legal Structure Establish a legal limited liability entity formed by three shareholders, who will invest a capital amount of 20,000 USD, 10,000 USD and 10,000 USD. The total invested shareholder’s capital. 政治大 37,113.87 USD, completing a seed investment of 77,113.87 USD for this venture. The legal 立. is of 40,000 USD. In addition to this, the company will apply for a bank loan for the amount of. ‧ 國. 學. nature of this venture will allow the entity to behave as a legal body to engage in partnerships. with governmental and non-governmental entities as well as to offer and receive financial. ‧. funding from sponsors.. sit. y. Nat. io. er. 1.4. Value proposition. This company is a space where kids, teenagers and young adults come to learn how to develop. al. n. v i n C h creators with technology critical thinking and skills to become with an entrepreneurial focus. engchi U Through our partnerships with external companies, our company sets the platform where it becomes easy to put the learned skills into real practice.. 1.4.1. Service Roadmap The following teaching curriculum was thought of through information gathered from different coding schools across the globe, especially a combination of curriculum of Asian and Latin American coding schools, as well as from information collected from the marketing survey performed in our market research section. The curriculum will be divided into age groups from 6 to 23 years old, from which there will. 2. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(14) be a list of course options where students can enroll in. The way the service will work is that any potential client and final user will have an interview for an assessment based on the user’s age, knowledge, and interest. The teaching curriculum is to be divided as follows. Table 1: Curriculum ROADMAP Category. Ages. Junior. 6–9. Core Mission and Activities. 立. ‧ 國. 學. with kid-friendly tools. This phase content will consist mostly of the open source MIT based program of Scratch Jr. ,. ‧. Robotics, and Minecraft; which focus on developing basic understanding of coding exploration.. a lA. n. 10-14. er. io. sit. y. Nat Elementary. 政治大. Establishing basic tech concepts and practical experimenting. i n U. v. special focus on technology experimentation will be. Ch. engchi. emphasized in this phase. The offered courses will include MIT AppInventor, Arduino, and Robotics. These courses will give a basic sense of coding and robotics, combining handson experience with software and hardware concepts and tools. Teen Creator. 15-18. This phase will mostly consist of cultivating creativity through the use of programming, design, and entrepreneurial. 3. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(15) tools to build apps and websites. The offered courses will be Web Programming, AppInventor, Creative Photo and Video Production, Arduino and Business for teens. 18+. This phase will focus on specialized coaching to properly. Entrepreneur. unleash users’ individual and team player potential. We will. 政治大. achieve this by giving them a challenge from one of our. 立external partners where they will team up to make use of their. ‧ 國. 學. technology, design and business skills to address such. ‧. Nat. y. problem in a creative way along with the proper consulting of. io. n. al. sit. the company’s instructors.. er. Pro. Ch. engchi. i n U. v. 4. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(16) 2. Market Analysis 2.1. Methodology For the purposes of properly identifying the best market segment location within the society in El Salvador, the market research is divided into two broad sections: Industry overview followed by a Screening Process. The industry overview aims at the identification of opportunities within the intended target market along with expansion opportunities in the region, followed by information such as. 治政 market values, market sizes, and industry trends. To大 further identify the best and ideal 立 geographical location opportunity of the intended target market, a screening process involving ‧ 國. 學. two main variables was conducted. The variables worked with in this market research are Age. ‧. Group, to identify the best locations where our target final users are concentrated and Household Affordability, to identify the location of our ideal target clients.. y. Nat. io. sit. After narrowing down our target clients, we further relied on a survey through the use of google. n. al. er. forms to properly identify relevant factors to consider in our niche market for a proper marketing execution plan.. Ch. engchi. i n U. v. 2.2. Industry Overview 2.2.1. Global Education Industry As an overall global view of the education industry, it is important to understand that this industry is sub-divided into several layers such as public and private K-12 education, postsecondary education, personal tutoring, after-school education, and online education; all of which may compete within one same niche market regardless of the nature. There has been a huge interest within the different layers of this industry as investment in the education industry. 5. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(17) is not only a matter of importance for governments to look into but also for groups of private businesses who have seen a great opportunity to capitalize on the offering of high quality education services. Population concentration and birth rate are variables that play important roles in the geographical location attractiveness as if the populations in many developing and developed countries continue to rise, this then offers a higher opportunity for education service companies to tap into the market opportunities and have several expansion possibilities.. 政治大. Take China as. an example, where the market size of school education will double within the next five years. 立. according to ChinaDaily Statistics.1. ‧ 國. 學. Furthermore, to talk about figures within the education industry, the vast majority of revenue in this industry comes from tuition or program fees, where gross profits tend to range from 60 –. ‧. 90 % and net profits tend to range from 2%-10% based on the geographical location.. Nat. sit. y. As of 2017, the global market size of the education industry was valued in $4.4 Trillion,. al. n. percent of the pie chart.2. er. io. including segments such as K-12, post-secondary studies, and others; others account for eight. Ch. engchi. i n U. v. After the general overview of the education industry, there is clearly a potential opportunity given the exponential growth within the education industry and the after-school segment which is included within the eight percent of the industry but is expected to increase as education paradigms are shifting towards a more informal and holistic approach. In addition to this, it is important to study the trends in this industry, especially within the sub-segment and geographical location that the venture is targeting. There has been a common factor among the trends within the whole industry, which is the increasing awareness about the importance of STEAM (Science, Technology, Engineering, Arts, Mathematics) education. Most developed countries include government and non-government 6. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(18) organizations making efforts in the strengthening of STEAM education to empower and position their future labor force at the edge. During the Obama term, for instance, the campaign “Educate to Innovate” was announced in partnership with the STEAM committee, where the administration made an investment of $3.1 billion specifically in federal programs for STEAM education.3 Both Sweden and Taiwan focus on the T of STEAM education, where education departments are seriously discussing about the incorporation of programming as a mandatory and highly important course to give training in. 政治大. computational thinking for children in primary schools.. 立. During the past years, there have been more after-school academies opening around the world. ‧ 國. 學. serving for the purpose of teaching additional skills to keep newer generations competitive in the future. It is particularly this segment of after-school academies where this venture intends. ‧. to penetrate since parents around the world are rapidly valuing more these kinds of services.. er. io. sit. y. Nat 2.2.2. Latin American Industry. n. al. Ch. i n U. v. As the venture intends to penetrate the Latin American region, it is important to study the status. engchi. of the education industry along with the market size and trends. To further understand the spectrum of the potential market in the region where expansion opportunities might exist, there are two key areas to be analyzed. One is the trend of increased interest from government offices and organizations in the promotion of tech education and the second one is the market size that exists in this particular region. The first area is of great relevance as it serves as an existing strength that can be leveraged to promote our company services through potential partnerships and sponsorships. It is not a surprise that in a globalized world we live in, industry needs and tools are spread. 7. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(19) easily all around the world. Neither does it come to surprise that governments in the LATAM (Latin American) region are also trying to promote STEAM education across the young generations. The promotion is usually done through partnerships with NGOs and empowerment committees. As an example, there has been an increasingly popular initiative from Microsoft Latin America called “Yo Puedo Programar”, which translates to “I can code”, where Microsoft offers open source material for kids and teenagers to attend workshops designed to teach programming through their interactive tools. These workshops are usually organized by. 政治大. volunteers with the intention of promoting tech education in young people, as the case of. 立. Colombia and Mexico when in 2017 many volunteers joined workshops set up by education. ‧ 國. 學. and young talent committees sponsored and promoted by the government. However, the main challenge are how to give a formal continuity to these workshops.4. ‧. Similarly, countries such as Argentina and Chile have been making efforts in the. Nat. sit. y. implementation of the MIT interactive platform Scratch, to teach programming in primary. n. al. er. io. schools.5 These trends serve as examples of the potential existence of key partnerships with. i n U. v. different private companies, government offices and organizations.. Ch. engchi. Furthermore, for analyzing the second key it is important to mention how the population in LATAM as of 2018, according to the United Nations Statistics is of 650,335,482, (UN) of which 80.2% is urban and with a population growth rate of approximately 1%. 6 Based in current statistics, the tech education market size in the region is valued in 2.4 Billion USD.7 Additionally, the target market trends also show promising opportunities as tech education has been growing exponentially lately. Coursera, an education platform just duplicated the number of signed up users in the region after they launched the Spanish version of the platform, and identifies how more than 22 percent of their users are based in Latin America.8 8. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(20) This study demonstrates that there is a clear expansion opportunity within the region. However, the potential increase of competitors along with the increasing interest trends in programming becomes predictable as well. Just within the Latin American region there are already a few competitors, mostly concentrated in Mexico and Argentina. They offer a curriculum targeting ages between six to nineteen years old including Programming, Robotics, AppDevelopment, Becoming a Youtuber, and Entrepreneurship courses. The industry is still in its inception stage as it is still gaining. 政治大. customer’s approval and awareness, but it is clear it is growing faster in the bigger and more. 立. developed countries of the region. It is now crucial to narrow down the market research. ‧. ‧ 國. 學. specifically to our intended target country.. 2.2.3. El Salvador Industry. Nat. sit. y. To give a short outlook on the demographics of El Salvador, the population of the country is of. n. al. er. io. 6,172,011 distributed in 14 different departments. The total population of El Salvador can be. i n U. v. subdivided into age groups in order to best be able to identify the potential market size of the intended target market.. Ch. engchi. To further assess the attractiveness and potential feasibility of the venture, there are a few population data criteria that we deem relevant to include in this research study. Table 2 : Age Structure Age Group. Population Percentage. 0-14. 25.92%. 15-24. 20.23%. 9. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(21) 25-54. 39.23%. 55-64. 7.14%. 65+. 7.48% (Source: CIA, 2016). Figure 1: Population Pyramid. 政治大. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. (Source: CIA, 2016). Table 3: Population Background Data criteria Birth Rate:. 16.2 births/1,000 population. Population Growth Rate. 0.25%. Internet Penetration Rate. 38.3% (Source: CIA, 2016 / World Bank, 2017). 10. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(22) Following the tables and figure above it is important to describe how the education industry includes two different types of clients: parents and children. We need to mention that both targets are relevant; the first being the main marketing focused target and the latter being the final user of the service. This is crucial to explain because from our previous tables we can assess the potential market size of our final users whose parents will be our main marketing target. Our final user population falls within the range of 0-24 accounting for more than 40% of the total population.. 政治大. As a general overview of the industry, El Salvador does not have a properly implemented tech. 立. education plan. In spite of the efforts of the government along with international organizations. ‧ 國. 學. funding and support to update the technological area of public education, main systematic and urgent challenges remain such as basic physiological and safety needs which ultimately end up. ‧. influencing the budget allocation. These challenges hinder the speed of innovative updates in. Nat. sit. y. the education sector.9 As this is already perceived as common knowledge, families who already. n. al. er. io. have access to basic needs become aware of the extra needed skills in education that is not being. i n U. v. met, making them aware of the value offered by after-school academies. During the past years,. Ch. engchi. there has been a huge rise of organizations targeting education in the areas of technology, business and design in El Salvador, mostly targeting high school and college students. Currently, there is no company offering this focused and specialized service yet. Given the fact that our intended target market is identified as families whose income range level is adequate to cover basic needs it is important to take a look into the curriculum offered by the private and international schools where our intended target market enrolls their children in, to properly identify similar courses offered and either complement or supplement with different curriculum suitable courses.. 11. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(23) After a careful research on different teaching curriculum material at some of the best private schools in El Salvador, we find that some already offer coding and tech related material to elementary and high school students but they cover basic concepts only. This offers a potential opportunity to create strategic partnerships with schools that already show an interest in strengthening their STEAM curriculum.10. 2.3. Screening For the second part of the market analysis we apply a screening methodology with the purpose. 政治大. of identifying where our intended target market is located. As mentioned in the previous process,. 立. our intended target market are parents who are already able to cover basic household needs and. ‧ 國. 學. aim to offer their children the best education and set of opportunities. Therefore, to properly identify the location of our target we make use of two variables: Age. ‧. group, and affordability.. n. al. er. io. sit. y. Nat. 2.3.1. Age Group. i n U. v. This screening criterion will help us segment the population by age group and locations to. Ch. engchi. properly narrow down the locations with the highest concentration of our targeted final users, who should be between 5 to 24 years old.. 12. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(24) Table 4: Target Age Group by Department. 立. 政治大 (Source: Censos.gov.sv, 2016). ‧ 國. 學. Table 5: Screening 1. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. (Source: Censos.gov.sv, 2016). From Table 4, we can screen the five highest concentrated departments as shown in Table 5. This first screening process already narrows down to five potential locations we can find our target final users in.11. 13. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(25) 2.3.2. Household Affordability El Salvador is still considered an underdeveloped country with high levels of poverty. El Salvador has a GNI per capita 3,920USD per year12 which matches the statistics of the average salary per person in El Salvador of 350USD per month (4,223USD per year). According to the Statistics Economics Bureau the basic living cost to cover a goods basket is of 142.39 USD per month as of 2018.13 However, to define a middle class, we considered the assumption of households who can at. 政治大. least afford five times the basic living basket of 142.39 as of 2018, according to the Statistics. 立. Economics Bureau, accounting for an income of at least 711.95USD per month.14. ‧ 國. 學. To further define upper middle to high level class cost we made the assumptions of living costs from 1500USD per month and above per household. Stating that our target market will be. ‧. groups of middle to high level class, we defined that our ideal target group would be the groups. Nat. sit. y. of households located in the regions with the lowest levels of poverty. Based on data of the. n. al. er. io. Ministry of Economy of El Salvador, poverty is measured in a multidimensional way involving. i n U. v. indicators such as education levels, living conditions, social security, as well as access to health. Ch. engchi. and basic market basket. From government reports we were able to access data regarding percentages of households living in poverty. As for this criterion, we narrowed down this second screening process to the locations with the lowest percentages of poverty. Table 6: Screening 2. (Source: Secretaria.gov.sv, 2014). 14. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(26) Based on our screening process results, our ideal target market would be ideally found in San Salvador, followed by San Miguel and La Libertad as potential expansion locations.. 2.4. Consumer Analysis After determining the geographical location for our business based on the previous market analysis, we have to identify our target market of middle to upper level class. Defining social. 政治大. classes involves a variety of subjective factors including wage, education, culture and lifestyle.. 立. For simplicity, we will focus on the wage factor.. ‧ 國. 學. Lower Class. Middle Class. ‧. Upper Class. Percentage. 41.7 %. 41.1%. 16.8%. sit. n. al. er. io. Source: PNUD El Salvador14. Nat. Socio-economic Class. y. Table 7: Socio-economic Class Distribution in Urban areas of San Salvador. Ch. i n U. v. Based on the table above we know our specific target market size is 57.9 percentage of the population of San Salvador.. engchi. 2.4.1. Survey Design To further understand our potential consumers, we designed a survey to research potential customers, their needs, feedback and perception of our service offering. The survey was performed by google forms and designed in a way to filter our interviewees into either potential target customers or potential key partners. To properly determine the filters to screen down our targets, the survey starts with three basic 15. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(27) questions to filter interviewees: 1. Interviewee’s living location 2. Whether interviewee is a parent, company-owner or other 3. Interviewee’s income range per month After properly identifying our target percentage of interviewees we put into the survey a variety of questions relating the following key factors: . Pricing.        . Class Schedule Design Instruction language Preferred content offered Teaching method Preferred way to reach them Interest in future partnerships Affordability to equip kids Open feedback. 學 ‧. ‧ 國. 立. 政治大. y. Nat. er. io. sit. 2.4.2. Survey Results. Number of responses: 81 responses. n. al. Ch. Figure 2: Wage range Please select the range of your monthly income. engchi. i n U. v. 16. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(28) By this question we segmented our target market. According to our previous market study, we defined middle to upper level class as household who earn at least five times the basic living cost of goods, which translates to an earning per household of 700USD at least but we will assume a salary of 1000USD at least for our target market given the fact that the service we provide is not a basic need. From our survey we got the results of at least 62% belong to our. . 1,000 – 1,500 USD  41.4%. . 1,500 – 2,000 USD  3.4%. . 2,000 – 3,000 USD  6.9%. . ‧ 國. target market, distributed in the following way:. 學. Figure 3: Pricing. 立. 政治大. 3,000 USD +  10.3%. ‧. What price would you be willing to pay for this service?. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. With this question we aimed at having a clearer awareness of what range of prices our interviewees perceive as reasonable for this service. From our results, 45.8% expressed would pay from 100 to 150 USD, 31.3% expressed would not be willing to pay more than 100 USD and 14.6% expressed would pay from 150 to 200 USD, with a minority percentage expressing would pay either price higher than 200USD.. 17. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(29) Figure 4: Schedule Design What is your preferred schedule design?. 政治大. 立. With this question, we would like to know what would the best combination of schedules to be. ‧ 國. 學. offered taking into consideration day, time, and season of the year. The first pie chart shows how 50% prefer Saturday mornings, 20.8% prefer Saturday afternoons, and 29.2% prefer. ‧. weekdays. The second pie chart shows that 65.2% prefer semester-like classes and 34.8% prefer. Nat. n. al. Ch. Figure 5: Instruction Language. engchi. er. io. including both weekdays and Saturday classes.. sit. y. intensive summer courses. Based on the results, we decided to offer semester-like schedules. i n U. v. Which language do you prefer for teaching?. By our results, we could identify that 64.6% prefer Spanish classes, 33.3% prefer Englishtaught courses and only a small percentage of people prefer a combination of both languages. 18. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(30) Figure 6: Instructor Gender Would you prefer male, female instructors or are you indifferent?. 政治大. Our results show that 75.5% are indifferent about the instructors gender. Merely 16.3% prefer. 立. 學. ‧ 國. women and 8.2% prefer men. Figure 7: Teaching Method. Would you like a more formal and traditional approach or a game-based teaching method?. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Based on our results, 77.1% prefer a more friendly and game-based teaching approach which is the vision we are trying to sell and only 20.8% prefer a formal and traditional approach and a small 2.1% preferring a combination of both.. 19. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(31) Figure 8: Material Affordability Would you be able and willing to provide your children with equipment such as a tablet, laptop and/or camera?. 立. 政治大. Based on our results, 87.2% are both willing and able to provide their children with equipment. ‧. ‧ 國. 學. and only 12.8% are not able to do so.. n. al. er. io. sit. y. Nat. Figure 9: Preferred content Which content are you more interested in?. Ch. engchi. 4.2%. Build videogames. 8.3%. Build apps. 2.1%. Build and design websites. 8.3%. Robotics programming. 12.5%. Creative Design (photography and video). 12.5%. Building my own business. 2.1%. Social solutions with the use of technology. 50%. I’m interested in all of the above. i n U. v. 20. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(32) Based on our results, half of our respondents agreed to be interested in all of the curriculum offered with a few indicating specific preferences including entrepreneurship and design as preferences.. Figure 10: Preferred Way To Reach Customers What in your opinion is the most effective way to communicate our services to parents?. 立. ‧ 國. (*This is a screenshot of just some of the feedback). ‧. Nat. y. Through schools. 學. Social Media. 政治大. er. al. n. Social Media, e-mail. io. Social Media, ads. sit. Social Media, School and tutors partnerships, brands. Conferences e-mail. Ch. Informing and sending links. engchi. i n U. v. Through internet Through education institutions Social Media, direct e-mail marketing, SMS Showing parents what you do. (*This is a literal translation of the screenshot above). We designed this question as an open question to hear feedback for an effective promotion and marketing plan. Based on the respondents’ answers, more than eighty percent agree on social 21. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(33) media and e-mail as a way to reach them. A few responses include other ways such as through schools, press, TV, and info-sessions.. Figure 11: Interest in future partnerships Would your company or the company you work for be willing to offer projects collaboration opportunities for our older students (18-23)?. 政治大. 立. ‧. ‧ 國. 學. With this question we started assessing the willingness of established companies to offer hands-. Nat. sit. y. on projects to our oldest students. Based on our survey results 80% of respondents are willing. n. al. er. io. to engage in collaborative partnerships. Figure 12: Open Feedback. Ch. What do you think of our service?. engchi. i n U. v. (*This is a screenshot of just some of the feedback). Aligned with global trends Excellent. 22. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(34) Very good Excellent Any program that teaches logic and programming concepts is beneficial not only for technical abilities but it also has an effect in the problem-solving skills It is what young people need to be busy Programming is something fundamental nowadays, anyone should be digitally literate not only the people who pursue it as a career Interesting, it should encourage the support to the young talent generation in our country It is excellent It would help kids to develop their skills. 政治大. Innovative, with a possibility of supporting talents. 立. (*This is a literal translation of the screenshot above). ‧ 國. 學. We can summarize the results of our open feedback in the following opinions: Innovative and beneficial for our country’s young people. -. I don’t know of any other service like this. -. Necessary and important for our current world. -. I would have to know more about the content, price and location. -. Looks good as long as it is properly executed. ‧. -. n. Ch. engchi. er. io. sit. y. Nat. al. i n U. v. 2.4.3. Consumer Behavior When we refer to clients in the following, we mean the targeted parents whose children will eventually become the final users of our service. To further explain our marketing approach we compiled certain demographics and psychographics traits and characteristics present in our target clients. Based on the previous market research, survey results and personal experiences the characteristics can be defined as follows:. 23. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(35) Table 8: Target Market Demographics Age. 26-65. Location. Urban areas. Income Level. Above 1000USD per month as minimum. Education Level. Bachelor and/or Master level education. 政治大 Likes and understands social media and is interested in education 立. Table 9: Target Market Psychographics Interests. and tech trends.. ‧ 國. 學. Is an achiever and thinker who makes decisions based on. Attitudes. ‧. y. sit. Likes to enjoy the newest and innovative products and services. io. Lifestyle. Values high quality, effectiveness and results over price.. al. er. Nat. Values. information and well-known validation.. v. n. within the society where he/she lives.. Ch. engchi. i n U. 24. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(36) 3. Marketing and Implementation Strategy Based on our market analysis, we know our target market is composed by households including parents who live in urban areas, have proper technology affordability, enroll their children in private schools and are highly digitally literate. Therefore, the marketing and implementation strategy will be composed of the proper combinations of online and offline marketing plans to best generate new leads to attract new customers, recruit previous customers, and create a proper brand image that potential clients can be able to trust. For this to happen it is essential. 治政 to properly position our brand in the minds of our target大 market, which will be achieved by the 立 proper set of marketing mix for services, an internal and external analysis, along with some key ‧ 國. 學. partners and factors for a properly sustainable success.. ‧. 3.1. Service Marketing 7 Ps. This section serves as the blueprint of our whole business, how it operates, and how we will. y. Nat. io. sit. make our company known to our target segment. It includes seven different sections that are. n. al. er. crucial to properly define and explain in order to achieve an optimum service delivery.. 3.1.1. Product. Ch. engchi. i n U. v. As described in section one, our value proposition is to offer and provide training to the younger generations to exploit their potential skills through the use of the combination of a coaching style plus updated content. Based on the results of our market survey we designed a curriculum roadmap and schedule as follows. The detailed value proposition is composed by 13 initial courses divided into four different range groups. The schedule will be afternoon classes from Tuesday to Friday, and Saturday morning and afternoon classes. As we understand our target users are kids, we are knowledgeable about their short attention span after a long day which is why our afternoon. 25. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(37) classes from Tuesday to Friday will be limited to one and a half hour. The courses will consist of eight classes with a 90 minutes length. We will offer the following schedule options: Full Weekday Semester: Limited to one weekly class of 90 minutes per student,. combining a total of two months. for the full semester offered in the following schedules: . 1:00 pm - 2:30pm. . 3:00 pm – 4:30pm. . 5:00 pm – 6:30 pm. 立. 政治大. ‧ 國. 學. Saturday Classes:. Limited to one weekly class of 180 minutes per student combining a span of one month.. ‧. This schedule option will be mostly recommended to older students due to their higher. Nat. sit. n. al. er. io. follows:. y. capacity of concentration for a longer amount of time. The offered time slots will be as. . 9:00am – 12:00pm. . 1:00pm – 3:00 pm. Ch. engchi. i n U. v. The detailed value proposition is further explained in the following table. (The teaching material described below is flexible upon the amount of students, course updates, and miscellaneous circumstances and situations). 26. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(38) Table 10: Segmented Value Proposition Category. Ages. Courses offered. Junior. 6–9. Scratch Jr.. Teaching Material. Robotics Introduction. 立. 政治大. Tablets Osmoblocks White Board Projection System.  . Dash and Dot robots Bee-bot.   . Tablets Anki Cozmo Scratch Software.   . Laptop White Board Projection System.    . Minecraft game JAVA development kit MCreator Software Whiteboard. ‧ 國. 學. ‧. Minecraft Modding. sit. n. al. AppInventor. Ch. engchi. i n U. Scratch. Hardware Introduction. Teen Creator 15-18. . Projection System.     . Xiaomi smartphones AppInventor program Laptops Whiteboard Projection System.    . Laptop Scratch Program Whiteboard Projection System. . Arduino Kit.  . Anki Cozmo Robot Laptop and tablet.  . Python tools HTML, CSS, Javascript tools. er. io. 10-14. y. Nat Elementary.    . Website Development. v. + and. 27. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(39) libraries. Apps Design. Creative Production. 立. ‧ 國. . Flask tools and libraries.   . AppInventor Program Testing smartphones Swift Program tools.  . Adobe Photoshop Adobe Illustrator.   . Adobe After Effects Adobe Premiere Pro Professional Cameras. . Studio equipment.  . Notebook Laptop.  . Arduino Kit Laptop.  . Student’s own equipment In-house tools and equipment. tools. and. ‧. Arduino. sit. y. 18+. My start-up. n. al. er. io. Entrepreneur. HTML5 libraries. 學. Business for teens. Nat. Pro. 政治大. . Ch. Social Entrepreneurship. engchi. i n U. v. The previous table gives a deeper insight of the materials used for each class with the presumption that parents will provide the previous teaching material to their children, such as notebooks, laptops or their own personal cameras. The company will complement with the additional equipment such as software licenses, studio recording equipment and robots. It is also important to mention that during our initial stage we will count with a limit amount of. 28. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(40) equipment and based on our initial amount of students, we will adjust inventory accordingly based on projections and curriculum updates.. 3.1.2. Place For our initial stage, our company will be based in a co-working office called DESKRITORIO which is a space located in a central place. Our initial stage location will be accessible to parents who pick up their kids from school in the afternoons. The reason why this location is strategic is not only because it is already close to many international schools, but it is also close to many. 政治大. private residential areas who are potential customers that can be easily reached by any offline. 立. promotion. The space is also located close to leisure areas with a variety of cafés and restaurants. ‧ 國. 學. where parents can hang out while their children are in class.. DESKRITORIO offers amenities such as lockers to keep valuable items, parking space,. ‧. workshops spaces, lounge, studio recording equipment and space including sound and video,. Nat. sit. y. kitchen and on-site café. After browsing through several co-working spaces in different. n. al. er. io. locations, DESKRITORIO offers amenities that suit our needs for our initial stage.. i n U. v. The co-working space offers two types of fees including daily and monthly fees. We will opt. Ch. engchi. for a monthly fee due to our business activities from Monday to Saturday. For visually representing the meeting rooms and office spaces, please refer to the photos below.. 29. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(41) 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 30. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(42) 3.1.3. Promotion As previously described in our industry analysis, technology’s demands, pace and trends show how this will make the industry very competitive in the near future. This is why it is crucial to properly differentiate our service in the mind of the consumers during our early stage. Given our target market and brand positioning, our product needs to hold the main characteristics that our target group is looking for, such as the proper brand image, outcomes, and credibility. This is also why our service will mainly differentiate from other after-school academies by focusing. 政治大. in a coaching style with practical experimenting and real-life projects rather than a theoretical. 立. traditional teaching style. This will be achieved by properly targeting each of the characteristics. ‧ 國. . 學. that are valued by our potential customers: Brand Image. ‧. As we aim to be perceived as a coaching incubator where anyone can properly develop. Nat. sit. y. and unleash their maximum potential rather than a formal academy, our curriculum. n. al. er. io. content is designed in a way that kids and teenagers can make use of the current trending. i n U. v. tools such as social media, gaming and famous apps and their existing interests to push. Ch. engchi. them to exploit their tech skills. Our brand image will be concentrated in the way we sell the programs and equipment we use plus our teaching approach. We will sell our brand image through several ways such as viral social media videos, ads and conferences explaining and demonstrating the use of our teaching approach of finding and identifying the kids interests to properly empower them.. . Outcomes: As described previously in our target client psychographics, our target clients are parents who value results and effectiveness rather than price. To properly attract and retain 31. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(43) existing clients, we as a service company need to provide them with effective results that will validate their investment through us. This will be achieved through tangible projects the younger kids will create during the semester and for the older kids, the validation will result through actual projects worked for real companies and organizations done through our external key partners.. . Credibility:. 政治大. During our initial stage, our professors will be trained through the founder’s past. 立. experience with the digital curriculum, but as a highly-paced industry, the staff will. ‧ 國. 學. eventually be constantly trained and the overall curriculum will be constantly updated. We will also make use of the combination of our brand image positioning as a relatable. ‧. coaching center that helps kids and teenagers develop skills and tangible results shown. Nat. sit. y. to our clients, to be perceived as a high quality training center. Our high quality will be. n. al. er. io. emphasized through the results, working experience and built-in network our final users. i n U. v. will be exposed to. These efforts will serve as a solid foundation to gain credibility in the industry.. Ch. engchi. Our company will become sustainable based on tuition fees. On the other hand, returning clients and external partners are more important for our implementation. This is why we will use three different promotion approaches for three different purposes.. 32. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(44) Table 11: Promotion Program Design Promotion to Initial Leads. Purpose. Approach. To generate an initial good impression.. 1. 2. 3. 4. 5. 6.. Social Media Ads Education conferences Direct e-mail marketing School fairs Fliers at kids public events Free trial classes at events. 7. Networking & word of mouth 1. Direct e-mail marketing 政治大 2. Discount offers and incentives. Returning. To retain existing customers. Customer. and/or regain previous. 學. 3. Updated curriculum notifications through e-mail newsletters 4. FB and Instagram newsfeed 5. Social media tagging to remind them of our service. ‧ 國. 立. customers.. ‧. y. 1. E-mail proposals. sit. Develop a shared mutual. 2. FB and Google Ads 3. Business and technology conferences. er. io. interest. a l to create long-term v i n Ch engchi U relationships for projects n. Partners. Nat. External. collaborations.. 33. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(45) 3.1.4. Pricing The target market segment during our initial stage includes mid to high-income households who are able to afford basic needs and provide their children with tools such as a laptop and a tablet for their studies, we took into consideration our consumer analysis survey results to identify that the best price perceived by our target segment is 100USD per course. We also defined out pricing package based on private schools tuitions and benchmarking with indirect competitors in El Salvador and coding academies in other Latin American countries.. 政治大. 立. io. Minecraft. n. al. Elementary. Teen Creator. Scratch. Ch. $100 USD. Tablet/iPad. $100 USD. Tablet/iPad. $100 USD. Laptop. en $100 hi g cUSD. y. sit. Nat. Robotics Kit. Required for student to bring. er. Scratch Jr.. Price. ‧. Junior. Course. 學. Service. ‧ 國. Table 12: Pricing Packages. i n U. v. Laptop. App Inventor. $100 USD. Laptop. Hardware Intro. $100 USD. Laptop. App Inventor. $100 USD. Laptop. Web Design. $100 USD. Laptop. Creative. $100 USD. Camera/Phone + Laptop. 34. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(46) Production Business. for $100 USD. Laptop. Arduino. $100 USD. Laptop. My start-up. $100 USD. Laptop + optional own equipment. teens. ProEntrepreneur. 立. $100 USD. Entrepreneurship. of preference. ‧ sit. y. Nat. 3.1.5. People. Laptop + optional own equipment. 學. ‧ 國. Social. of preference 政治大. n. al. er. io. As a service company we understand the importance of staff training to develop a high quality. i n U. v. product which is why we included this section to briefly mention more about how we will manage our people.. Ch. engchi. Our initial stage venture will adopt a flat organizational structure with three functional departments including five people as full-time staff.. 35. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(47) Figure 13: Organizational Structure. 政治大. 立. ‧ 國. 學. It is important to mention that student interns will be allowed to work with flexible schedules,. ‧. Nat. io. sit. in proper accordance to the accounting standards of El Salvador.. y. and we will work with an independent auditor/accountant to manage our financial statements. n. al. er. To further ensure the quality of our service, assigning proper vision and responsibilities to the. Ch. i n U. v. staff is not only important but essential, which is why we have included the following table. engchi. which further describes assigned tasks to each member of the staff. Table 13: Team Responsibilities Position. Purpose and Vision. Functions. CEO. The CEO is responsible of ensuring a top quality offering of. services. by. properly. . Lead company’s operations.   . Manage team’s performance Provide long-term vision Actively look for strategic partners.  . Constantly update service content Inventory research and purchase. 36. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(48) . training and motivating the. Recruit new members. staff to behave as a team. The CEO should also be actively engaged in activities required for a proper expansion and. 政治大. growth.. and. sales. y. Nat. er. io. sit. expansion opportunities for the company.. n. al. Teaching Staff. Ch. Manage Social Media & Marketing Design promotion proposals Customer Service Manage existing partnerships Execute e-mail marketing Petty Cash Custodian. ‧. ‧ 國. marketing. 學. Coordinator. 立.    coordinator will aim at   increasing awareness and . Marketing/Sales The. e n g c h i. This is the most essential part of the staff as the teaching staff members will be the face of our service which is why a. proper teaching training will. . iv n UTest and Teach material. Offer curriculum feedback to CEO Study current education and industry trends.   . Work on courses update proposals Strengthen direct customer service Coordinate projects with partners and students.  . Hire seasonal interns Train seasonal interns. be ensured. The teaching staff. 37. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(49) will teach, research, propose and. develop. curriculum. content along with the CEO in accordance to their expertise area. They should all be techsavvy.. 立. ‧ 國. 學. 3.1.6. Process. 政治大. ‧. To ensure a good quality service, our company will follow a marketing process involving a good delivery, execution and flexible after-service follow up.. sit. y. Nat. n. al. er. io. Figure 14: Service Process Overflow. Ch. engchi. i n U. v. 38. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(50) The previous figure is a process example of the main sequence of steps required for our company to deliver our service effectively and ensuring a proper post-service marketing. This process was designed to ensure an increase in client attraction by the use of the first five steps from promotion to service agreement, as well as encourage an increase in client retention and prevention of client dropout by the use of steps six to nine from service delivery to postservice marketing. The process not only involves the steps but the staff involved in targeting the missions in each of the steps.. 立. 政治大. 3.1.7. Physical Evidence. ‧ 國. 學. To differentiate ourselves from potential competitors and establish a strong brand image it becomes essential to provide our customers with a proper physical evidence that will reinforce. ‧. our position in the minds of not only existing and previous customers but also potential. Nat. sit. y. customers. To achieve this, our company will offer work with per-class tangible projects that. n. al. er. io. parents can have access to for our Junior and Elementary age groups. After finishing the. i n U. v. semester, kids can optionally apply for a project video pitch to be shown on our website for. Ch. further promotion and recognition.. engchi. For our Teen Creator age group, in addition to semester-end projects our company will constantly work with potential partners for our students to collaborate in creative projects with them. This allows parents and potential employers to see evidence of their new learned skills. For our Pro-Entrepreneur age group, our physical evidence will most likely be to motivate and enhance their satisfaction with our service. This age group will not only be exposed to new skills but to a new network of potential employers, investors, and universities who will be able to see their new learned skills by collaborating in projects with external companies, universities and exposure to conferences. 39. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(51) For our physical evidence to be effective to our older groups, the company will work hard to keep engaging in key partnerships with private companies, universities, international opportunities, competitions, and government agencies. The combination of our staff efforts in properly researching education trends, updating curriculum and engaging in partnerships will give us a key factor of success to strengthen our service quality physical evidence.. 3.2. SWOT Analysis 3.2.1. Strengths. 立. 政治大. ‧ 國. 學. One of the few academies of its kind in the country or even near regions, with a service that is. ‧. currently being highly valued. There are already many companies offering coding to teenagers, but our main strength is our offered real-life experiences with companies for the older kids and. y. Nat. io. sit. how we will target the younger children as well. The company will also promote the use of kid-. n. al. er. friendly teaching methods learned in Asia, which will give credibility to the new venture’s. Ch. i n U. v. image. Our venue will be located in an exclusive and safe area close to some international. engchi. schools and private residences with parking space for parents to drop their kids.. 3.2.2. Weaknesses A relatively new concept to Salvadoran parents for which, we as a company will have to work to gain their approval. No initial proper office to construct and redesign to suit our needs, as during our initial stage we would be renting a space where we would have to anticipate to potential space problems and become flexible to possible mobility. There would also be a learning curve for the instructors who will have to receive a proper training on how to properly 40. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(52) coach to kids in order to reach a satisfactory learning return.. 3.2.3. Opportunities Due to the increasing popularity of technology courses through social media trends and information, we find opportunities in the expansion to other cities and bordering countries in the region. El Salvador and other Central American countries still possess a large concentration of their population in the younger ages ranges along with a stable birth rate which guarantees a. 治政 stable market size to target. The increasing popularity also 大opens doors to possible partnerships 立 with external parties. Some possible potential partnerships are with some private schools ‧ 國. 學. looking to actively strengthen their extracurricular course curriculum with whom the academy. io. sit. y. Nat. 3.2.4. Threats. ‧. can collaborate offering our courses for their summer camps and extracurricular activities.. n. al. er. Some of the same reasons that can be expressed as opportunities for our company may also be. Ch. i n U. v. interpreted as threats, like the increasing popularity and increasing rate of acceptance from. engchi. potential clients, which can drive new direct competitors actively seeking after our current clients and offering similar or even improved services. Because of the high initial set-up cost due to the technology and instructors trainings, we should also be prepared for a proper resilience in the case of close competitors with higher initial funding opening direct competition academies.. An additional threat is to keep in mind that there is a circle of indirect competitors. that also strive to target our customers. Our indirect competitors are composed by other summer schools and after-school academies targeting different content. The complete list of our indirect competitors is too long, but we can narrow them to a few major ones including Business For. 41. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(53) Kids School, International Schools Summer Camps, Church Summer Camps, and Miscellaneous after-school academies.. 3.3. Key Partners For our company to maintain a competitive advantage over indirect and direct competitors, we have to ensure our physical evidence and curriculum content are strong enough to both motivate and satisfy our customers. To achieve this we will rely to partnerships with international schools,. 治政 private companies, and government agencies. 大立  International Schools: ‧ 國. 學. Our initial target school is the British School, which already offers a variety of. ‧. extracurricular courses for both summer and after-school studies. We will engage in a close partnership with the British school by offering personalized summer camps at. y. Nat. io. sit. their campuses targeting specifically their school students. The partnership. n. al. er. negotiation will be subject to additional benefits to the school such as discount. Ch. i n U. v. packages for their students, English-taught courses, commission fee for using their. engchi. spaces, etc. An additional potential partner strategy includes providing after-school classes at their school from Monday to Friday during our initial stage to gain reputation and potential clients. A follow-up of other international schools to work with include the American School, German School, French School and International School. . External Companies Our company’s aim is to offer potential collaborative experiences with small and big companies to our students; however during our initial stage targeting big companies. 42. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(54) will require us to build a strong image and expertise. For this we will start working with two incubators: Yawal and Point. These incubators will give us access to startups; flexible and accessible enough for them to agree to offer design and tech projects to teens with fresh ideas and better understanding of current trends and media. These partnerships will offer us a pool of projects for the kids to work with and experience real-life working environments and projects that are interesting to them. As a follow-up we will start targeting middle-size companies through networking and. 政治大. attendance to several conferences.. 立.  Government Agencies and NGOs. ‧ 國. 學. The Commerce Bureau has been actively involved with new entrepreneurs by offering free consulting, conference inspiring talks, and a variety of activities targeting. ‧. innovation in the country. This will be one of our partners in our third partnership. Nat. sit. y. scope who we will work with for first-hand experiences with youth innovation. n. al. er. io. conferences and competitions where we will offer them our pool of students to either. i n U. v. offer talks or participate in government sponsored innovation competitions. An. Ch. engchi. additional aim for this partnership is to be able to work with development and social challenges that our students can work with for new sources of innovative solutions. As a follow-up our partnership with the Commerce Bureau will offer us a bridge to get a closer relationship with international cooperation agencies and NGOs with whom we can work in two different ways. The first one being with funding proposals for scholarships sponsorships to underprivileged children to attend our courses and the second one is offering social challenges as hands-on experience projects for our Pro-Entrepreneur section students as well as opportunities for our students to present their project proposals. 43. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(55) 4. Long term Plan We target middle to high-class students now, but our longer-term vision is to offer this highquality concept to underprivileged kids as well. For this we first need to gain a proper reputation and brand image among the society, and gain financial stability during the first three years. We intend to work closely with NGOs, government agencies, and private companies during the first two years and build a close relationship to further request scholarships sponsorships for underprivileged kids to have access to our services, as well as a closer look for women. 治政 empowerment through technology by engaging in partnerships 大 with the government. 立 ‧ 國. 學. Table 14: Long term Roadmap Target Market. HR Capacity. 2018 - 2019. Middle – High level class in El Salvador. 3 full time teachers. 2020 - 2021. Middle – High level class in El Salvador. 3 full time teachers Working on social goals 5 part-time teachers with students. CSR Working on social goals with students. sit. y. ‧. Nat. Year. n. al. er. io. 2022 – 2023 Middle – High level class 3 full time teachers Working on social goals & underprivileged kids 5 part-time teachers with students + engaging in El Salvador in children empowerment 2024-2027. Ch. engchi. i n U. v. Middle – High level class At least 10 full time & underprivileged groups employees per (kids and women) in academy Latin America. Working on social goals with students + engaging in women and children empowerment. 44. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(56) 5. Financial Plan For our financial plan we considered certain assumptions including a stable inflation rate, expected economic conditions to remain stable, and stable bank interest rates. Our financial plan expects to offer a detailed view of our initial investment plans along with analysis we considered relevant to demonstrate our profitability within the following five years.. 5.1. Initial Investment We divided our initial investment into legal and operative setup plus property plant and. 治政 equipment. We further indicated the amount our shareholders 大 will contribute with, therefore 立 applying for a bank loan of the remaining amount required to complete the initial investment. ‧ 國. 學. Figure 15: Initial Investment. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 45. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(57) 5.2. Revenue Forecast For our Income statement projection we applied a “Sales by Market Penetration” Model. 政治大. including the following criteria:. 立. ‧ 國. 學. 1. Target Market Size. According to our market study, there are 319,487 declared parents in urban areas of San. ‧. Salvador. From this amount we will target the middle to high level class which accounts for. sit. n. er. io. 2. Market Penetration Rate. al. y. Nat. 57.90% translating to an initial market size of 184,983.. i n U. v. Based on the assumptions that we are a new concept to grasp in the market, we assume we. Ch. engchi. can penetrate the market capturing a market share of 1.5% during our initial year. 3. Market Share Annual Increase For our financial plan, based on the growth of indirect competitors in the location we are targeting, we worked with an annual market share increase of ten percent.. After considering the following criteria our projected revenue forecast is presented as follows:. 46. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(58) Figure 16: Sales Forecast. 立. 政治大. 5.3. Projected profit and loss. ‧ 國. 學. For our income statement projections we considered expenses distributed into two different. ‧. stages :. y. Nat. sit. Stage 1: 2018 – 2019. n. al. er. io. Our initial stage HR resources will be composed of three full time professors and an. i n U. v. administrative and sales employee. Our rent expense will be subject to our initial office. Ch. engchi. space. Our revenue will be constrained to our HR capacity to supply demand.. 47. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(59) Figure 17: First Stage Costs. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Stage 2: 2020 – 2023 Our following stage HR resources will be composed of three full time professors plus 5 part-time teachers in our addition to our administrative and sales employee. Our rent expense will increase considering our plan of moving to a bigger space of our own. Following this stage, we expect our HR capacity to be enough to supply demand.. 48. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(60) Figure 18: Second Stage Costs. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. .. 49. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.

(61) After considering both stages above, our estimated profit and loss analysis looks as follows: Table 15: Income Statement Forecast. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 50. i n U. v. *Please refer to Appendix for further financial information. DOI:10.6814/THE.NCCU.IMBA.011.2018.F08.