The Future is Hybrid: Development of a holistic sales model

EXECUTIVE SUMMARY

In response to Festo Didactic’s need for an evolved sales model for the learning platform FestoLX, this project aimed to provide comprehensive and scientifically sound recommendationson the matter. The current model, primarily licensed, lacks adaptability for an evolving ecosystem, prompting the necessity for optimization to enhance user experience and revenue.

Goal

The project focused on deriving a robust development plan for FestoLX’s sales model, examining best practices, competitor pricing strategies, and rival sales models. Objectives included proposing diverse pricing and bundling models and delivering a clear recommendation for Festo Didactic.

Methodology

Divided into analysis and recommendation phases, the prior phase set key milestones to ensure a structured approach towards achieving its objectives, whereas the former phase employed a three-step method involving data gathering through interviews and research, best practice analysis, and a gap analysis using a Weighted Scoring Matrix (WSM) for decision-making. Key criteria were identified and weighted collaboratively, including accessibility, brand perception, customer preference, personalization, scaling potential, and cost of implementation.

Results

In evaluating different bundling strategies, such as Product Bundling, Content Bundling and Introduction of Learning Paths, it became evident that each approach presents a unique set of advantages and disadvantages. Regarding the pricing models, the subscription model and the one-time payment model were analyzed in terms of their pros and cons. Considering all these aspects, the dominant strategies recommended for FestoLX were found, namely content bundling and the subscription model. Content bundling aligned with customers‘ preferences and tailored learning experiences, while the subscription model ensured revenues, scalability, and a straightforward pricing structure.

For FestoLX, a subscription-based model with mixed bundling was recommended, focusing on content divisions. The FestoLX ecosystem was advised to adopt mixed bundling for products. Five distinct subscription offers were proposed.

The transition from the current model to the recommended one necessitates clear communication through localized marketing materials. A phased approach involving testing with existing clients, A/B testing for optimization, and an upgraded freemium model targeting HR departments was proposed.

Cooperation Partner

• Rechbergstrasse 3 73770
  Denkendorf Baden-Württemberg
  Germany
  www.festo.com/at/de/

Contact Person

• Ute Gebhard
  ute.gebhard@festo.com

Student Team

• German Arngold

• Jakub Bartek

• Konstantin Bozev

• Kilian Eickermann

• Elen Karic

• Elisabeth Retegan
   

Project Manager

• Caroline Fabian, M.Sc., M.Sc.

• Melina Mazzucato, M.Sc., M.Sc.