the future of education
DESCRIPTION
The Future of Education. Chris Hoehn-Saric CEO Educate, Inc. Brand Awareness. 2003. 1999. 1979. 1991. 1993. 1994. 1995. 2004 est. The Education Industry. $900B – 2 nd Largest Segment of US Economy Growing at 2x rate of inflation High Degree of Consumer dissatisfaction - PowerPoint PPT PresentationTRANSCRIPT
The Future of Education
Chris Hoehn-SaricCEO Educate, Inc
$33.6
$68.2
$154.9
$242.3
$300.0
$25.3$11.0
19991979 1991 1994 1995 20031993 2004 est
99% 97%
47% 45% 43%35%
0%
20%
40%
60%
80%
100%Brand Awareness
The Education Industry• $900B – 2nd Largest Segment of
US Economy• Growing at 2x rate of inflation• High Degree of Consumer
dissatisfaction• Resulting in …
Education – Paradigm Shift – 1980From Castor Oil to
Monolithic, Institutionally Controlled, state provided, “free” education
Apartheid Education – Geographically defined education based on a citizen’s ability to pay for housing
Consumers exclusively relied on schools
Education – Paradigm Shift – 2004Cherry Chewable Cough Drops
Educational consumerism & deregulation are driving reform and opportunity
Schools, Non-profits and Businesses must change how, when and where they deliver education
Three Forces Driving Change
GROWINGCONSUMERISM
GOV’T POLICY
ECONOMICDRIVERS
Economics
High School Diploma
103% of Avg Salary
Manufacturing
73% of Avg Salary
Knowledge Based
1970 Today
28704
46800
70148
0
20000
40000
60000
80000
$ Do
llars
Annual Salary
High School AA Degree BA/BS MA/MS PHD
Government Policy• No Child Left Behind –
Standards based education• 1980’s Medicare drove
deregulation and reform - 11.5% of total healthcare spending
• The “Special Edification” of classroom instruction
The New Consumer• Consumers Demand a
voice in schools and education
$12B is spent on supplemental education products and services
1 out 6 children has left the traditional public schools - Charters, Private, Virtual Charter, Home Schooling
The New Consumer – Kids are now decision makers
Parents no longer tell kids what they are having for dinner ...They ask what their kids would like.
Kids 7 to 12 spend $8.9B/ year on products
Brands Matter
“I want it all! Tailor it to my kids’ needs! Deliver it online! ”
“I want it all! Tailor it to my kids’ needs! Deliver it online! ”
- How many moms under 40 have tattoos?
- What does POS mean to your 12 year old?
- What form of online music sold more songs than the Apple IPOD last year?
Teens now split their time 60% - TV 40% Internet
LeapFrogToys and Education
0100200300400500600700
$ Do
llars
(,000
,000
)
Revenues
19992000200120022003
In the past 60 days, what has become the #1 selling DVD/Book in Sam’s Club & Costco?
In the past 60 days, what has become the #1 selling DVD/Book in Sam’s Club & Costco?
Conclusions• Education will follow the rest of the
economy• We must respond with
programming, services, and products delivered in modalities that resonate with Consumers
• Brand, Marketing, Advertising, Technology, & Packaging will differentiate effective education from “castor oil” education
Conclusions• Education will follow the rest of the
economy• We must respond with
programming, services, and products delivered in modalities that resonate with Consumers
• Brand, Marketing, Advertising, Technology, & Packaging will differentiate effective education from “castor oil” education