Huntington

Part
01
of three
Part
01

Tutoring Competitors

As requested, we've completed the attached spreadsheet with details on three tutoring competitors, Sylvan Learning, Kumon and Learning Rx. We've provided information on each company's demographics, messaging, product positioning, and advertising campaigns. A brief summary of our findings is provided below.

Findings

Product positioning: Sylvan positions itself as a result-oriented company with 40 years of proven teaching experience. Kumon positions itself as a company that focuses on self-directed learning. Learning Rx positions itself as a company focused on cognitive skills training, particularly for those with trauma or learning disabilities.

Messaging: Sylvan's promotion and advertising messages focus around enhancing the company's value proposition and shattering misconceptions about the company. Kumon's promotional messages are centered around the message that it teaches its students more than academic skills. The primary messaging used by Learning Rx is that its brain training programs can substantially improve school grades, standardized test scores, athletic performance, and future earning abilities.

Ad campaigns: In the past few years, Sylvan has begun using radio for advertising, incorporated DFSA into its ads, and begun shooting commercials in both English and Spanish. We couldn't find any evidence of recent changes in the advertising campaigns of Kumon or LearningRx, despite extensive searching through those campaigns, as well as other company and third-party sources.

Demographics: Sylvan targets adult women, K-12 students, and college students. Kumon targets children aged 3-13. Learning Rx does not have a specific demographic, but it does target some of its products towards those with learning disabilities or trauma.

Conclusion

To wrap up, we've provided details on Sylvan, Kumon, and Learning Rx, three tutoring competitors. Please find all the information in the attached spreadsheet.
Part
02
of three
Part
02

Tutoring Motivations

US parents are motivated to seek out tutoring services for their children for different reasons including helping struggling students, understanding difficult subjects, preparing for admission exams and tests. The impact of a child’s struggle in academics on the family includes sorrow, confusion and anxiety.

Available quantitative data from US research studies and other sources did not directly address the motivation for parents in the US to seek out tutoring services for their child and the impact of academic strife on family dynamics. Most related quantitative research rather addressed the impact of parents’ attitude, status and environment on the academic performance of their children.

Only articles from credible news media and tutoring sites gave information that directly addressed the subject matter.
However, there is available quantitative data around learning disabilities which might be useful. Below are details of the findings.

Tutoring Motivations and impact of academic strife on family dynamics

Available Related Quantitative Data
According to the Washington Post, data from the National Center for Learning Disabilities shows that 20% of students in US have learning or attention challenges. However, only about 6% of the children with the challenges have been formally identified as requiring special education services. The most common learning challenge is dyslexia. It is estimated that between 5% and 17% of US students are affected by dyslexia.

During the 2013-2014 school year, 18.1% of students with learning problems dropped out from school. This is about three times the rate of drop out of all US students.
The graduation rate of students with learning disabilities is 70.8%. This is 10 percentage points below the graduation rate of the general student population. Up to 500,000 students having learning disabilities dropped out of school without a diploma in the last decade.

The Individuals With Disabilities Education Act (IDEA) fixed 40% as the maximum grant for each state for extra funding of special education. But a report by economists Laudan Aron and Pamela Loprest found that grants from the federal government in 2010 to states under IDEA only funded approximately 17% of the extra cost.

A study by APM Reports found that while 41 states have taken some kind of action to address the needs of children with dyslexia, the laws often go unenforced and unfunded.

According to U.S. News & World Report, private tutoring is a $5 billion dollar industry.

Qualitative Information
It can be a painful struggle to live with learning disabilities. Both parents and children are affected. Parents seek the services of tutors for their children for various reasons including helping struggling students, understanding difficult subjects, preparing for admission exams and tests like SSAT and ACT, and boosting their GPA.

Touch-type Read & Spell (TTRS) notes that parents also seek the services of tutors when their children lack confidence in the classroom. In addition, TutorMe stated that most working parents employ tutors because they don’t have the time to personally focus on the school work of their children.
According to an account by an affected mother “we were at a complete loss with where to start and how to move forward” as a family when their 9-year old son was diagnosed with attention deficit hyperactivity disorder (ADHD) in addition to delays in phonics and writing. That was what motivated them to seek out tutoring services for him.
Another mother decided to get a private tutor for her daughter because she struggled with reading, she said, “we tried not to fret too much, because her teachers told us that late bloomers often take off and read fluently by third grade”. Because of her anxiety, she did not wait until her daughter got to third grade, she found the tutor when her daughter was in second grade.

Conclusion

Academic struggles, difficult subjects, preparing for admission exams and tests preparation are some reasons that motivate US parents to seek out tutoring services for their children. Confusion, sorrow and anxiety are some effects of a child’s academic struggle on the family.
Part
03
of three
Part
03

Tutoring Trends

It is estimated that 82 percent of children born in the United States have a mother (and often a father) in the Millennial generational group, which makes the impact of parenting trends for this group of parents highly relevant to the tutoring industry. Six trends among Millennial parents that are likely to significantly impact the tutoring industry include increased confidence in technology-assisted tutoring (particularly AI-powered tutoring), decreased likelihood of paying for tutoring, increased confidence in online tutoring and other educational opportunities, support for flexible and personalized tutoring, a preference for tutoring that supports parents' mobile lifestyles, and a shift towards engaging tutors to teach subjects that support STEM careers. Below you will find a discussion of our findings.

METHODOLOGY

In order to provide an overview of trends within the parenting community that are expected to significantly impact the tutoring industry, my colleagues and I defined the group of parents in the United States who are expected to have the most significant impact in this sector. Our preliminary findings revealed that 82 percent of children currently born in the United States have a mother (and often a father) in the Millennial generational group, which is defined as ages 22 to 37. This indicates that Millennials will soon represent the largest group of parents in the United States, which suggests that trends pertaining to their parenting styles are critical to consider. As there are significant differences in parenting styles among different generational groups in the United States, we elected to focus on trends among Millennial parents for this project. Having defined the parenting community of interest, we then sought to identify any trends specific to this group that are likely to directly impact the tutoring industry, which yielded two trends of significance. We then expanded our results to include the impact of Millennial parenting on the overall education system in the United States, and evaluated the impact of the four trends identified on the tutoring industry. Below you will find a list of six trends, in no particular order.

Parenting trends that impact tutoring

1. Increased confidence in ai-powered tutoring

The children of Millennial parents are described in the literature as "Generation Alpha," and this group is defined as children born between 2010 and 2025. Millennial parents are increasingly confident that artificial intelligence (AI) and other forms of advanced technology will meaningful impact their children's lives. It is estimated that 80 percent of Millennial parents believe these forms of technology will assist their children in obtaining a more comprehensive education in a shorter amount of time. Additionally, at least 74 percent of Millennial parents have indicated that they would be amenable to an AI-powered tutor for their Generation Alpha children. As a result, this trend towards AI-assisted tutoring is likely to impact the overall tutoring industry.

2. Decreased likelihood to pay for tutoring

Compared to previous generations, including Baby Boomers (ages 54 to 72) and Generation X (ages 38 to 53), Millennials are the most likely demographic to report that education is one of the most significant issues facing the United States. However, compared to previous generations, Millennial parents are less likely to pay for tutoring for their Generation Alpha children. Only 20 percent of Millennial parents reported in one study that they have paid for a tutor for their children, compared to 27 percent of Generation X parents and 25 percent of Baby Boomers.

This disparity in willingness to pay for tutoring may be explained by Millennial parents increasing confidence in traditional elementary and secondary educational systems in the United States. Over one-third of Millennial parents of school-aged children believe the educational system is "heading in the right direction," compared to 27 percent of Generation X parents and only 17 percent of Baby Boomers. As a result of their confidence in the formal educational system, Millennial parents may be less likely to pay for additional tutoring for their children, a trend which could have a substantial impact on the tutoring industry.

3. Increased confidence in online options

While Millennial parents are the most likely group of parents to express support for the traditional educational system in the United States, that does not preclude their increasing confidence in online educational options. It is estimated that 48 percent of Millennial parents have completed an online course themselves, compared to 41 percent of Generation X parents and only 31 percent of Baby Boomers. It has been documented that personal exposure to online educational coursework increases support for online educational programming, which likely explains Millennial parents' support for their children participating in this type of learning environment.

However, Millennial parents do not vocalize only support for students to have the freedom to pursue online educational opportunities; at least 51 percent believe that completion of at least one online course should be required for high school students. Additionally, Millennials are the most likely group of parents in the United States to believe that an option for an entirely-online, public primary and secondary education should be available to all children. As a result of their support for online educational options, we have extrapolated that Millennial parents are likely to engage online tutors and support online remedial tutoring programs when they do pay for tutoring, which is likely to impact the overall industry.

4. Support for flexible and personalized learning

Approximately 80 percent of Millennial parents have indicated that their support for online educational options stems from the belief that these programs will allow them to personalize their children's education. It is estimated that 77 percent of Millennial parents support alternative educational options (not limited to online learning) because they support the concept of a "do-it-yourself education," whereby education can be crafted to fit individual interests and needs. Millennial parents increasingly value flexibility and personalization when meeting the educational needs of their children. This trend towards non-traditional educational pathways is likely to result in Millennial parents demanding broader educational offerings for their children. If these needs cannot be met in traditional schools or by online coursework, it is reasonable to expect that the tutoring industry may be utilized to fill the gaps in Generation Alpha's education.

5. Support for mobile learning opportunities

Millennial parents increasingly value flexibility in both their children's education and their own workplaces. As telecommuting has become more popular among Millennial parents, they now have opportunities to move their families around the country (or even the world) while working from home. Nearly half of Millennial parents are described as "vacation movers," which indicates that they have moved to new locations without intending to remain there long-term. This "mobile lifestyle" results in traditional schools becoming difficult learning environments for their children; it is often difficult emotionally for children to transition into a new school, and the disruption may also affect academic performance. As a result, Millennial parents increasingly value mobile learning opportunities, including virtual schools and online coursework. The mobile lifestyle makes flexible tutoring options, such as online tutoring programs, more attractive to Millennial parents.

6. Shift towards tutoring for stem careers

Our findings indicate that the types of educational material for which Millennial parents are likely to engage a tutor for their Generation Alpha children may change as a result of parenting trends in this group. In the United States, two of the four most popular subjects currently taught by tutors include mathematics and physical sciences. Nearly 75 percent of Millennial parents have indicated that they intend to encourage their children to pursue careers in science, technology, engineering, and mathematics (STEM), with support for careers in engineering is especially high among Millennial parents. Nearly 40 percent of Millennial parents intend to "strongly encourage" their children to pursue careers in engineering.

In addition to continuing to engage tutors for mathematics and physical sciences, their overwhelming support for AI and other advanced technologies suggests that the likelihood of Millennial parents engaging tutors in the field of computer science will impact the overall tutoring industry. While 90 percent of parents in the United States want their children to learn computer science in school, only 40 percent of American schools actually provide computer science education. As a result of this deficit, the tutoring industry is predicted to be impacted by Millennial parents' emphasis on encouraging their children to pursue STEM careers, particularly engineering and AI-assisted engineering.

CONCLUSION

In summary, 82 percent of children currently born in the United States have at least one Millennial parent, making this group of parents the most likely to significantly impact the future of the tutoring industry. Six parenting trends among this age group that will shape the future of the tutoring industry in the United States include increased confidence in AI-powered tutoring, decreased likelihood of paying for tutoring, increased confidence in online tutoring, support for flexible and personalized tutoring, support for tutoring that works with a mobile lifestyle, and a shift towards tutoring that supports STEM careers.
Sources
Sources