FESTO LX – A PRICING STRATEGY FOR FUTURE TECHNICAL LEARNING IN AFRICA
Wintersemester 2020 - Festo Didactic
In this project we worked together with the company FESTO Didactic, which wants to introduce their technically advanced and innovative e-learning platform FESTO LX into the African market. In particular, FESTO Didactic gave us the task to develop concrete measures for launching FESTO LX in Kenya, Nigeria, Ghana and Rwanda.
Our goal was to develop a pricing strategy for FESTO LX in Kenya, Nigeria, Ghana and Rwanda. In addition, we wanted to carry out a competitor analysis in order to gain a different perspective on our research results of the pricing strategy.
In order to present a specific pricing strategy, we first had to know what exactly we wanted to price and therefore we had to get in touch with people in the countries. To get into conversation with a large number of people and to share their expertise, we carried out a contact research and built a database with over 3500 contacts. Since FESTO LX has many features, of which may all not be relevant for their target group in Africa, we conducted interviews with local experts to get an understanding of what is really important and to determine a basic version of FESTO LX. After we had precisely defined the product, we carried out a survey using the Van Westendorp pricing method and sent it to the contacts in our database. With the evaluation of the survey we tried to determine the optimal prices. Using an internet research and certain questions in the survey, we also carried out the competitor analysis.
Unfortunately, we were unable to achieve the goal of determining the optimal price for FESTO LX in all four countries. In certain countries the response rate of the survey was too low to carry out a meaningful analysis with the Van Westendorp pricing method. Nevertheless, we have received a lot of insights through our work, which will certainly be useful at the market launch of FESTO LX and for developing a market-entry strategy. In addition, we were able to carry out a competitor analysis which shows which field of competition FESTO LX expects when entering the market in Kenya, Nigeria, Ghana and Rwanda.
Festo Didactic SE
Dr. Ute Gebhard
Victor Samuel Vecsei
Shtefi Mladenovska, M.Sc.
Caroline Fabian, M.Sc.
Klaus Marhold, Ph.D.