New Oriental Education & Technology Group Inc. (EDU): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at a company that didn't just survive the regulatory storm; it built a new powerhouse. As a former BlackRock analyst, I've seen pivots, but New Oriental Education & Technology Group Inc.'s shift is textbook execution. After navigating the regulatory changes, the firm posted $4.90 billion in total net revenues for Fiscal Year 2025, driven by its new ventures like Oriental Selection. Their non-academic and e-commerce segments are firing on all cylinders-Q1 FY2026 revenue hit $1,523.0M, with new educational initiatives up about 15% year-over-year in that quarter. We need to look closely at how their Product, Place, Promotion, and Price strategies-from selling goods via livestreaming to maintaining physical learning centers in 69 cities-are cementing this comeback. Dive in below to see the full 4P breakdown of this remarkable turnaround.

New Oriental Education & Technology Group Inc. (EDU) - Marketing Mix: Product

New Oriental Education & Technology Group Inc.'s product portfolio centers on diversified educational services and a significant pivot into lifestyle e-commerce.

The core educational offerings are segmented, with specific growth metrics reported for the fiscal year 2025 periods.

• Adult and university test preparation (e.g., TOEFL, GRE) remains a core offering.
  • Domestic test preparation revenue growth target for FY2025 was projected at 30%-35%.
  • Overseas exam preparation revenue growth target for FY2025 was projected at 20%.
  • In the third fiscal quarter of 2025 (ended February 28, 2025), overseas study consulting revenue grew by 21.4% year-over-year.
  • In the third fiscal quarter of 2025 (ended February 28, 2025), domestic test preparation revenue grew by 17.0% year-over-year.
• Non-academic training: Arts, sports, and programming for K-12 students.
  • This category is encompassed within the 'educational new business initiatives' which saw revenue growth of 34.5% in the third fiscal quarter of 2025.
  • The company planned to increase the number of training centres by 20%-25% during FY2025.
  • New referrals growth target for FY2025 was projected around 50%.
• Study tours and research camps for domestic and international travel.
  • This is part of the 'new initiatives,' specifically mentioned as educational tourism (language camps inside and outside China for students and schoolchildren).
  • This segment contributed to the 34.5% growth in educational new business initiatives revenue in the third fiscal quarter of 2025.
• Digital content and proprietary learning apps for self-study.
  • This offering is included in the 'educational new business initiatives' segment, which drove growth.
  • Net revenues, excluding the East Buy business, increased by 21.2% year-over-year in the third fiscal quarter of 2025.
• Live e-commerce via Oriental Selection (Koolearn): Selling agricultural products and books.
  • Revenues generated from East Buy private label products and livestreaming business were excluded to show core education performance.
  • In the fourth fiscal quarter of 2025 (ended May 31, 2025), East Buy contributed approximately US$154.7 million to total net revenues of US$1,243.2 million.
  • East Buy's revenue in fiscal year 2024 was US$0.90 billion.

The overall product performance is reflected in the consolidated financial figures for the relevant periods.

Management provided guidance suggesting continued top-line expansion across the product suite for the next fiscal year.

• New Oriental Education & Technology Group Inc. expects total net revenues for fiscal year 2026 (ending May 31, 2026) to be in the range of US$5,145.3 million to US$5,390.3 million.
• This guidance represents a year-over-year increase in the range of 5% to 10% over the FY2025 total net revenues of US$4.90 billion.

New Oriental Education & Technology Group Inc. (EDU) - Marketing Mix: Place

New Oriental Education & Technology Group Inc.'s distribution strategy centers on a hybrid model, heavily weighted toward digital reach while maintaining a significant physical presence for core educational services and leveraging its e-commerce arm for product distribution.

The primary digital distribution channels for educational content and services rely on online platforms and proprietary applications. This digital infrastructure supports the delivery of courses and content to students across China and internationally.

The live-streaming e-commerce segment, operating through Oriental Selection (also referred to in financial reports alongside East Buy), utilizes major live-streaming channels for product distribution. This channel is key for moving private label products and other goods.

• Live-streaming e-commerce platform: Oriental Selection, launched on Douyin (the Chinese version of TikTok) in December 2021.
• Platform diversification includes plans for live streaming on Alibaba Group's Taobao platform and its own mobile application.

For in-person instruction, New Oriental Education & Technology Group Inc. maintains a substantial physical network across the mainland. As of August 31, 2025, the physical footprint included a network of 1,347 learning centers, which encompassed 76 schools, situated across 69 cities in China.

Distribution for adult training programs and specialized services often involves direct engagement points.

• Non-academic tutoring business, focusing on innovative ability and comprehensive quality, was rolled out to around 60 cities as of the fourth fiscal quarter of 2025.
• The top 10 cities contribute over 60% of this non-academic tutoring business.
• Partnerships are established with university campuses and corporations for specific adult and professional development offerings.

The international distribution strategy focuses on logistics for study tours and the delivery of overseas test preparation services. The overseas studies consulting business reported a revenue increase of about 8% year-over-year in the fourth quarter of fiscal year 2025. New Oriental Education & Technology Group Inc. also maintains relationships with international educational bodies to facilitate these offerings.

Here is a snapshot of the scale of New Oriental Education & Technology Group Inc.'s distribution network as of late 2025:

New Oriental Education & Technology Group Inc. (EDU) - Marketing Mix: Promotion

New Oriental Education & Technology Group Inc. deploys a multi-faceted promotional strategy that heavily integrates its legacy education brand with its burgeoning e-commerce operations. The foundation of this strategy is built upon the trust established over its history, which began with the founding of Beijing New Oriental School on November 16, 1993. This longevity provides a bedrock of brand reputation spanning over 30 years in the education sector.

A core component of current promotion is the heavy reliance on Key Opinion Leaders (KOLs) and teacher-hosts for live-streaming sales through its East Buy segment. While the Retail Business, which includes Private Label Products and Live Streaming e-Commerce, accounted for 20.88% of total revenue in fiscal year 2024, the performance of this segment is closely watched. For the fourth fiscal quarter of 2025, ended May 31, 2025, total net revenues were US$1,243.2 million; revenues generated excluding East Buy private label products and the livestreaming business were US$1,088.5 million. New Oriental Education & Technology Group Inc. holds a 57% ownership stake in East Buy.

The cross-promotion between educational services and e-commerce is evident in the growth figures of the newer initiatives. For the fourth quarter of fiscal year 2025, New Oriental's educational new business initiatives reported a revenue increase of 33% year-over-year. Furthermore, the integrated tourism business saw a 71% rise in Q4 FY2025. This contrasts with the overall group total net revenue growth of 9.4% year-over-year for Q4 FY2025.

The company's digital push is clearly focused on non-academic and adult learning segments, which are showing strong expansion metrics. For the first fiscal quarter of 2026, ended August 31, 2025, non-academic tutoring courses were offered in approximately 60 cities, attracting about 530,000 student enrollments. Concurrently, the intelligent learning system and devices saw adoption in around 60 cities, reaching approximately 452,000 active paid users in the same quarter.

High-quality, educational content marketing is a key driver, often leveraging the expertise of former teachers who now act as hosts. While specific social media engagement rates for New Oriental Education & Technology Group Inc. are not publicly itemized in financial reports, the success of the e-commerce hosts is intrinsically linked to this content quality. The following table summarizes key financial context surrounding the promotional segments as of late 2025:

The promotion of educational services also includes targeted growth in specific academic areas, as seen in the Q1 FY2025 results (ended August 31, 2024). The company's efforts in these areas are quantified by segment growth:

• International study consulting jumped 20.7% year-on-year.
• Earnings from Chinese exam preparations for adults and college students soared 30.4%.
• The high school business advanced 20%.

Selling and marketing expenses for the fourth fiscal quarter of 2025 were US$211.9 million, representing a 1.8% increase year-over-year.

New Oriental Education & Technology Group Inc. (EDU) - Marketing Mix: Price

Premium pricing for specialized, small-group non-academic courses.

New Oriental Education & Technology Group Inc. saw non-academic tutoring courses attract 408,000 student enrollments across 60 cities in the third fiscal quarter of 2025. This segment's growth, alongside a +34.5% increase in new educational initiatives in Q3 FY2025, suggests a pricing structure capable of commanding higher fees for specialized, smaller-scale offerings. The company's overall FY2025 revenue reached $4.90 billion.

Value-based pricing for e-commerce products on Oriental Selection.

The Livestreaming E-Commerce segment, which includes Oriental Selection, contributed significantly to the top line. In the third fiscal quarter of 2025, total net revenues were $1,183.1 million, with core educational revenues at $1,038.3 million. This implies the East Buy business generated approximately $144.8 million in net revenues for that quarter alone. The company's ability to grow total net revenues by 9.4% year-over-year to $1.24 billion in Q4 FY2025, despite a challenging environment, points toward effective value capture in its consumer-facing e-commerce operations.

Tiered pricing models for online courses based on duration and instructor seniority.

The core educational services, which include test preparation, demonstrated pricing power, with core educational revenues increasing by 21.2% year-over-year in Q3 FY2025. This segment growth, coupled with management's forecast for domestic exam revenue to grow by 30%-35% in FY2025, indicates that the tiered structure for online courses successfully captured varied customer willingness-to-pay based on perceived course quality and instructor level.

Price sensitivity managed through promotional bundles and early-bird discounts.

The company's commitment to shareholder value, which can influence investor perception of financial stability and future pricing flexibility, is evidenced by its capital return actions. New Oriental Education & Technology Group Inc. announced an ordinary cash dividend of US$0.12 per common share (US$1.2 per ADS aggregate) and a share repurchase program of up to US$300 million over the next 12 months. The TTM non-GAAP EPS stood at $3.17 per ADS.

High average revenue per user (ARPU) in the remaining test prep and overseas consulting.

Management projected overseas exam preparation revenue growth of 20% and domestic exam revenue growth of 30%-35% for FY2025. These strong growth expectations in core, high-value segments suggest robust ARPU, as the company is not relying solely on volume increases. For instance, the P/E ratio based on TTM non-GAAP EPS of $3.17 at a stock price of $53.52 per ADS was calculated at 16.9x.

• Q4 FY2025 Non-GAAP EPS was $0.61 per ADS.
• Expected FY2025 Domestic Exam Revenue Growth: 30%-35%.
• Expected FY2025 Overseas Exam Revenue Growth: 20%.
• Total Debt as of late 2025: $803.8 million.
• Cash and Cash Equivalents: $1,612.4 million.