TURNER TEST PREP CO.

Ques.1 What is Jessica’s break-even point? Please show your work?

Solution 1: Assumption: I have assumed that the costs are for a span of one year.

Professor Salaries for 1200 hours/year @ $75/hour $90,000.00

Office Space @ $2000/month $24,000.00
Utilities and Insurances @ $1000/month $12,000.00
Printing @ $500/month $6,000.00
Marketing @ $400/month $4,800.00
Travel @ $200/month $2,400.00
Total $139,200.00

Variable
Materials @ 600/month $600.00
Selling Price $1,100.00

Number of Students Jessica Needs to break even 278.40

278 students

Therefore, Jessica needs 278 students to break even.

Ques 2: How does/should Turner Test Prep overcome the competition from NTC and stay on top?

Solution 2: In order to compete with NTC, Jessica should expand her current portfolio of courses that she provides
and market her current differentiation strategy more effectively. Apart from CPA exams, Turner test prep should
consider expanding into courses for SAT, GRE, or LSAT. This will allow them to increase their customer Jessica
should also work on conveying her highly effective one-on-one teaching methodology to its potential students. Few
potential changes that Jessica should consider implementing are:

• Market the cost effectiveness and quality of her program

Unlike NTC, Turner Test Prep has a uniform fee where the students receive all facilities and services of preparation
on offer. With its price of $1,100 compared to NTCs maximum price of $1,500, Turner offers a more cost-effective
model. Also, Jessica has worked with accounting, finance and law professors to come up with a curriculum that will
help have a comprehensive methodology in preparing for exams. The high quality and low cost benefits need to be
appropriately conveyed to the students.

• Market the superior pedagogical methodology

Turner Test Prep has professors who offer live, one-hour lectures per day. Jessica also teaches highly effective test
taking techniques and organization strategies. Moreover, Turner Test Prep uses various ways of evaluating students’
progress and challenges as they prepare for the exams. These need to be marketed more effectively to the potential
students.
• Advertise her pass rate

Jessica can reconsider her stance on advertising her pass rate as it will help Turner test prep to quantify its success rate
and compete more effectively with NTC.
Ques 3: What should Jessica do to achieve greater market share? Be specific in your recommendations.

Solution 3: For improving her firm’s market share, Jessica needs to understand the preferences of her current and
potential customers. She should first start with expanding the number of potential students, understand why the current
students chose to enroll in her program and how she could effectively convey those benefits to its future set of students.
She can then study expected trends in the students' behavior and the market and try to exploit a niche and gain a market
share. Few strategies that Jessica can employ to increase the market share are:

• Differentiation Strategy

Jessica should continue her unique teaching methodology of one-on-one sessions. This can also help in building a
reputation for her business amongst potential students. Hiring highly skilled teachers and professors from outside can
also prove to be a valuable strategy.

• Focus on improving the pass-percentage of first-time takers

Jessica can focus on attaining a higher pass percentage for first-time exam takers. This strategy will definitely improve
customer satisfaction and will also contribute to a more sustainable business model for Jessica since it will increase
the number of repeat customers.

• Improving the marketing strategy

Jessica should also focus on improving her marketing strategy. Apart from the flyers, Jessica can focus on promotions
and talks in various schools and business forums which will certainly provide enough traction to her business.