EXECUTIVE SUMMARY

The Festo Didactic project is centered around the formulation of an effective pricing strategy for its innovative VR Learning application. This process utilizes a comprehensive approach that incorporates market research, deep analysis of the competitive landscape, and application of the well-established Van Westendorp Price Sensitivity Meter. A pivotal component of our research method was conducting surveys with teachers, who represent a critical user group of the VR application. We further broadened our understanding by examining VR training solutions across various other sectors.

The result of this project was an optimal price of 1100€, with an "acceptable price range" of 1070€-1350€ per school class per year.

Goal

The overall objective was to deliver a price strategy for Festo Didactic’s VR learning application. The project partner has already decided on an annual subscription as the most suitable pricing model for their Virtual Reality learning platform. Hence, the challenge was to set the price for the platform that will maximize profitability. Therefore, the main objective of the project was to find a specific price point.

Methodology

In order to determine the price for Festo Didactic's Virtual Reality learning platform, several factors must be taken into account. For this project, Festo Didactic has already decided on an annual subscription as the most suitable pricing model for their platform. Hence, the challenge is to set the price for the platform that will maximize profitability. To arrive at the most profitable price point, a three module approach was used, looking at competition, willingsness-to-pay and analogous markets. By analyzing these factors, a comprehensive understanding of both the customer and supplier perspectives can be obtained. The project team conducted several interviews in the selected modules to gather insights and understand pricing dynamics. These efforts, combined with the utilization of the Van Westendorp method to collect primary data for the willingsness-to-pay, aimed to settle for a price for the Virtual Reality learning platform.

Results

Our most important result is the annual price for the virtual reality learning app that we came up with. By combining all our different approaches, we came up with the optimal price of 1100€ with an acceptable price range of 1070€-1350€. This price refers to one school class per year. Another result of our work is the analysis of the current situation of the main customers, which is technical high schools and universities. The annual budget of these schools gets tighter every year with rising inflation and energy prices. Therefore, investing in new technology is not easy for them at the time. Nevertheless, all the principals we interviewed were excited about the concept and certain, that they will soon apply the technology at their university or school. However, they do not see virtual reality learning as a substitute for the practical learning in workshops that is already available at universities, but only as an addition.

Cooperation Partner

• Festo Didactic SE
  Rechberstraße 3., 73770 Denkendorf, Germany

• https://www.festo.com/de/de/e/technische-bildung-id_3776/

Contact Person

• Tobias Storz - tobias.storz@festo.com

Student Team

• Christoph Helmberger

• Benjamin Iby

• Philip Jeschek

• Jakob Klocker

• Elias Rapp
   

Project Manager

• Caroline Fabian, M.Sc.

• Shtefi Mladenovska, M.Sc.