Product and Pricing Strategy in the Virtual Space Platform: A Case Study of “Vuturist”

: Navigating through the dynamic landscape of Virtual Platforms, this study delves into the intricacies of Market Trends and strategic positioning, with a focus on Vuturist, a participant in this competitive sector. The background of the study is anchored in the swift technological progress and shifts in consumer preferences. The research stages involve an in-depth analysis of the market, Vuturist's offerings, and the strategic implications of emerging trends. TThe primary objective is to furnish strategic recommendations that fortify Vuturist's sustained growth and relevance in the market. The methodology encompasses a comprehensive review of market trends, the competitive landscape, and Vuturist's internal capabilities. The research unveils insights into the demand for customizable virtual spaces and the necessity for Technological Integration. The findings spotlight avenues for Vuturist to enhance its Product Strategy and adapt its Pricing Models to align with market expectations. This study's scientific contribution is manifested in its in-depth analysis and strategic recommendations tailored for the virtual platform domain. By addressing the research problem and objectives, and clearly outlining the contributions to the scientific community, the research offers a holistic perspective beneficial not only for Vuturist but also for other stakeholders in the industry.


INTRODUCTION
The trend of virtualizing real-world experiences has become more pronounced globally, and Indonesia is part of this digital evolution.As of 2023, the number of internet users in Indonesia has significantly increased, with figures indicating a range between 219 million and 268.1 million users (APJII, 2023; Statista, 2023;Datareportal, 2023).This digital connectivity has propelled the adoption and popularity of virtual spaces and hybrid events.The momentum of hosting hybrid events continues unabated, with various sectors leveraging the benefits of virtual platforms for events, workshops, and other interactive sessions.Although new surveys or predictions from the Indonesia MICE Industry Association (IMIA) and the Indonesia Convention and Exhibition Bureau (INACEB) for 2023 have not been released, the global trajectory and prior acceptance of hybrid events in Indonesia provide a reasonable basis to infer the sustained growth of this trend.Besides events, virtual spaces are being employed for educational and cultural explorations.For instance, several museums in Indonesia, like the Museum Nasional Indonesia, have embraced virtual tours, allowing visitors to explore a vast collection of historical items digitally (IDN Times, 2023).On a global scale, the virtual space market exhibits robust growth.While the exact market size for 2023 is not available, previous projections anticipated a significant Compound Annual Growth Rate (CAGR) of 45.2% from 2022 to 2029, hinting at a thriving market (Fortune Business, 2022).In the Indonesian digital landscape, the startup Everidea has been navigating through with its Vuturist platform, aiding organizers in hosting online and hybrid events.Although specific recent events hosted on Vuturist have not been identified, the platform's immersive experience continues to attract various organizations for a multitude of events.The narrative of individuals spending more time in virtual spaces compared to physical spaces continues to hold relevance, aligning with the growing trend of virtualization in Indonesia.This burgeoning interest in virtual spaces, propelled by digital connectivity, technological advancements, and the adaptability of various sectors, sets the stage for the forthcoming discussions on business issues and Root Cause Analysis (RCA).The upcoming discourse aims to delve into the critical facets of product and pricing strategy, which are pivotal in steering Vuturist through the competitive virtual platform landscape and responding aptly to the market dynamics.

BUSINESS ISSUE
Vuturist, the flagship product of Everidea Interactive, is pivotal for the company's financial stability as it significantly contributes to the overall revenue and ensures a firm market standing.The global projections from Fortune Business Insight in 2022, indicate a consistent growth trajectory for the virtual space market, illustrated in the following figure showing the expansive growth anticipated in the global virtual reality market from 2017 to 2029.This growth trajectory suggests a plethora of untapped opportunities for Everidea Interactive, although it simultaneously signifies escalating competition, necessitating continuous innovation and adept product development.With a growth-centric strategy, Everidea Interactive envisioned a substantial revenue influx from Vuturist for the year 2023.Contrary to these projections, Vuturist recorded no sales in the first quarter of 2023, as depicted in the table below.This unforeseen downturn not only threatens the company's revenue forecast but also its market position.Seeking to understand the root causes, Everidea initiated client feedback sessions and internal discussions with their product teams.Recent dialogues with potential clients Telkomsel and Astra, and internal discussions led by Tendy Muslihin in April 2023, revealed key insights.The feedback highlighted a notable absence of certain features and functionalities in Vuturist, which swayed clients towards competitors' platforms.Features like seamless software integration and a multiplayer concept were deemed essential by clients but were missing in Vuturist.Additionally, the competitors' pricing structure was perceived as more affordable.

Exhibition Features
Video Calls Face-to-face meetings with visitors and potential business partners.

Booth Design
Choose from available booth designs or customize them to represent your company.

Company profile
Make your audience know your company more closely by providing informative content.

Admin Booth
The booth admin will be the company representative to interact directly with visitors via chat, voice and video.

Photo Galleries
The Photo Gallery feature makes it possible to show a row of photos or images from your company or product.

Plan Modification & Hall Design
Organizers can modify the floor plan and customize the desired 3D hall.

Real-time Event Analytics
Event analytics can provide an overview of data about events in real-time during virtual exhibitions.

Live Streaming
The live streaming feature is used to broadcast live events in real-time to all global audiences.

Web Dashboards
The dashboard page makes it easy for organizers to manage all aspects of virtual exhibitions properly.Branding Spaces A special branding space is available for sponsors and parties involved in virtual exhibition events.(Source: Authors' Processed Data) Root Cause 4 (R4A): The underlying issue roots from the absence of a cohesive roadmap for Vuturist, making it difficult to synchronize and execute marketing, and overall product development strategies, leading to missed opportunities and potential misdirection.Possible Cause (PC): The lack of a defined strategy for Vuturist translates to unclear pricing and product development directions, affecting its capability to attract and retain potential clients, thus the declining revenue.Given this analysis, it's crucial for Everidea Interactive to respond strategically to these findings.The aim is to draft a strategic framework for guiding product development and pricing strategy, aligned with client expectations and market trends.

CONCEPTUAL FRAMEWORK
In conducting this research, the authors have developed a conceptual framework to streamline the process of addressing the business challenges previously identified.The framework is a multi-stage approach that ensures a comprehensive analysis and strategic decision-making process.The journey begins with a market analysis, a critical step in understanding the environment in which the business operates.The authors will employ a PESTEL analysis to scrutinize the macro-environmental factors such as political, economic, social, technological, environmental, and legal influences that could impact the industry.Alongside this, Porter's Five Forces will provide insights into the competitive forces shaping the industry dynamics.Competitor Analysis will be used to understand the strategies and positions of current and potential competitors, while the VRIO framework and Resource-Based View (RBV) will help assess the company's internal resources and capabilities as sources of competitive advantage.
Following the market analysis, the authors will tackle market selection, a crucial step in business planning that involves segmenting, targeting, and positioning.This process acknowledges that not all customer segments can be served equally and focuses on identifying the most profitable segments to target.It is a recognition that businesses must be customer-centric and selective in their market focus to thrive in a competitive landscape.Next, the authors will scrutinize the marketing mix of Vuturist, which includes an analysis of the product, price, place, promotion, people, process, and physical evidence.This comprehensive review will shed light on the effectiveness of Vuturist's marketing strategies and operations, providing a basis for strategic improvements.
The subsequent stage involves a detailed analysis of Vuturist's product and pricing strategies.This step is pivotal in assessing whether the company's strategies are well-aligned with market demands and the company's strategic goals.
Finally, the research will lead to the formulation of product and pricing strategies.This will be guided by the TOWS matrix, a strategic tool that combines the internal strengths and weaknesses with external opportunities and threats to identify the most viable strategic options.The choice of the TOWS matrix is due to its effectiveness in aligning internal capabilities with external market conditions.After employing the TOWS matrix, the authors will prioritize the strategic actions, focusing first on those that are most critical, to ensure an efficient and targeted strategy implementation.This conceptual framework is not only aimed at solving immediate business problems but also at contributing to the broader academic and practical discourse on strategic market analysis, selection, and the formulation of marketing strategies in the everevolving business landscape.

B. Data Collection Method
Interviews stand as the exclusive method of data collection in this research, given the absence of quantitative data.As a pivotal tool in qualitative research, interviews offer a direct channel to obtain in-depth insights from participants.Tailored to the study's focus on Vuturist, we adopted a structured interview approach, ensuring both consistency and depth in our data collection.

C. Participants Selection
To ensure a holistic understanding of Vuturist's strategic landscape and the larger virtual platform domain, the interviewees represented a blend of internal stakeholders and external subject matter experts.The rationale behind this selection rested on their active participation in the virtual space sector, their domain-specific expertise, and their prospective contributions towards refining Vuturist's strategic roadmap.

D. Interview Protocols
The interviews were methodically designed, falling under a structured format with predetermined questions.These inquiries were bifurcated into two main segments: gauging Client Needs and Market Trends, and outlining the Product Strategy and Pricing for Vuturist.The adoption of this structured interview format was deemed instrumental in ensuring uniformity of data across diverse participants, keeping in mind the targeted strategic objectives of this research.Through this structured data collection process, the aim was to capture both the micro and macro nuances of the virtual space industry, ensuring that Vuturist is equipped with actionable insights to guide its future trajectory.

E. Data Analysis Method
Post-interview, each session was transcribed verbatim to preserve the integrity of the data, with a keen focus on elements pertinent to Vuturist's product and pricing strategies.Thematic analysis was the chosen method, aimed at extracting significant themes in line with the research objectives.The initial phase involved an exhaustive examination of the transcripts, where preliminary annotations were made to highlight observations relevant to the strategic facets under scrutiny.The data was then organized into themes reflecting Vuturist's product development, pricing strategies, and market positioning.This thematic grouping allowed for a nuanced understanding of the interviewees' insights.A meticulous review of these themes yielded a distilled summary of patterns aligned with Vuturist's strategic goals.These steps were critical in uncovering insights into Vuturist's approach to product and pricing, providing a robust basis to address the research questions and aiding in the strategic positioning of Vuturist in the competitive virtual space market.

RESULTS AND ANALYSIS A. PESTEL Analysis
The PESTEL analysis highlights the critical need for Vuturist to tailor its product and pricing strategies to the evolving political, economic, sociocultural, technological, environmental, and legal landscapes.By aligning with Indonesia's digital growth initiatives and responding to the burgeoning virtual event market, Vuturist can enhance its offerings with advanced AI and VR capabilities, potentially adopting a tiered pricing model to cater to diverse economic segments.Sociocultural trends towards digital-first lifestyles and collaborative virtual spaces present opportunities for localized, premium features.Technological advancements necessitate investments in interactivity and personalization, informing a value-based pricing approach.Environmental responsibility and legal compliance, such as data protection laws, are becoming increasingly important, offering Vuturist the chance to differentiate itself and justify premium pricing.Strategically navigating these factors, Vuturist can solidify its market position, offering relevant, valuealigned virtual experiences in a competitive industry.

B. Porter's 5 Forces
In the fiercely competitive realm of virtual reality, companies like Vuturist, SimHive, and Veer Experience vie for dominance, with innovation and rapid deployment being key differentiators.Vuturist's focus on deep customization positions it to attract users seeking personalized experiences, but it faces challenges from competitors like SimHive, which may offer faster feature deployment.Vuturist's pricing strategy must, therefore, not just compete on cost but also reflect the unique value it provides, possibly through bundled offerings that promote customer loyalty and market expansion.The virtual reality market's dynamics are further shaped by customer bargaining power, the threat of new entrants, and substitutes.Customers can easily switch between platforms, leveraging their bargaining power to influence pricing and terms.Newcomers, potentially equipped with the latest technology, add to the competitive pressure.Substitutes, ranging from basic video conferencing tools to advanced VR platforms, pose a constant threat to customer retention.Vuturist must differentiate its product and emphasize its unique immersive experiences in its pricing to mitigate these threats.Meanwhile, Everidea's in-house development model curtails supplier bargaining power, allowing for cost-effective and agile product strategy execution.However, retaining talent and protecting intellectual property are critical.The potential future need to collaborate with external suppliers highlights the importance of a strategic supplier management approach.These factors collectively underscore the need for Vuturist to maintain a robust product strategy and a pricing model that reflects its value proposition to thrive in the competitive virtual platform landscape.

C. Competitor Analysis
In the virtual platform industry, Vuturist distinguishes itself with a focus on deep customization and immersive experiences, targeting clients who prioritize unique virtual environments.Its pricing strategy is tailored towards a premium market segment, offering extensive customization for high-end clients.Conversely, SimHive emphasizes interactive features and social engagement, with a pricing structure designed to appeal to a broader audience, featuring quicker deployment times.The product strategies of both Vuturist and SimHive reflect the industry's shift towards platforms that offer a blend of interactivity and customization.Vuturist's offerings are tailored for clients seeking brand differentiation, while SimHive targets a broader audience with engaging and interactive virtual experiences.This divergence underscores the need for virtual platform providers to align their offerings with market trends to cater to diverse customer needs.The pricing strategies of the two companies are markedly different.Vuturist opts for a high customization cost, indicative of its premium services, while SimHive offers various accessible pricing tiers with limited customization options, catering to different market segments.Industry trends suggest that a balance between competitive pricing and customization options is key to meeting B2B demands.Service and support also differ, with Vuturist engaging in a longer development process for customized designs, while SimHive's rapid deployment may imply less personalized support.The level of support provided can be a critical factor in customer satisfaction and willingness to pay a premium.Below are the tables summarizing the key comparative data: This analysis accentuates the importance of aligning product, pricing strategies, and service support with market dynamics, shedding light on achieving competitive positioning while addressing the diverse needs and preferences within the target market.

D. Resource-Based View
Salman Subakat's angel investment in Vuturist marks a pivotal infusion of capital that not only empowers the company to advance its product development but also to refine its pricing strategy for competitive market positioning.This financial endorsement, coupled with Salman's influential role in Paragon, enhances Vuturist's potential for growth and market penetration, especially within the Paragon ecosystem.Vuturist's human capital, with its expertise in 360-degree rendering, underpins its ability to offer immersive virtual experiences, a cornerstone of its innovative product strategy.The company's reputation, built on successful deliveries for prominent clients, and its strategic network within Paragon's diverse business units, are invaluable assets.These resources, when leveraged effectively, can fortify Vuturist's product offerings and pricing models, aligning with the evolving market demands and ensuring a robust competitive stance.

E. VRIO
The VRIO framework reveals that Salman Subakat's angel investment in Vuturist is a comprehensive asset, offering a sustainable competitive advantage and the potential for above-average returns due to its value, rarity, inimitability, and organization.In contrast, The underutilization of the Paragon network and the need for continuous skill development in human capital are areas that require attention to maintain a competitive product strategy.
Opportunities for Vuturist lie in the growing demand for customizable virtual spaces and the potential for market expansion.Technological advancements open avenues for product innovation, such as AI and AR integration.Yet, threats loom with the pace of technological change, the emergence of new market players, and potential regulatory shifts.To navigate this landscape, Vuturist must leverage its strengths and opportunities to address its weaknesses and mitigate threats, ensuring its product and pricing strategies remain agile and responsive to the dynamic market.

BUSINESS SOLUTION
The strategic formulation for Vuturist employs a TOWS matrix integrated with a priority ranking system informed by the VRIO framework.Priorities range from P0 (highest) to P3 (lowest), focusing on leveraging internal strengths to exploit external opportunities and counteract threats while addressing internal weaknesses.(Source: Authors' Processed Data) The strategies are formulated to maximize Vuturist's internal strengths and minimize weaknesses while capitalizing on external opportunities and mitigating threats.The highest priority (P0) strategies are crucial for immediate implementation to address critical market demands and competitive differentiation.Lower priority strategies (P1 and P2) are important but may be implemented in sequence or as resources allow.This prioritization ensures a focused and effective strategic approach for Vuturist's growth and sustainability in the virtual event space industry.

A. Product Strategy
Based on the insightful analysis and understanding of market trends, competitive landscape, and client preferences, a well-thoughtout product strategy is quintessential for Vuturist's market competitiveness and growth trajectory.The following are the elaborated product strategy recommendations based on previous prioritization: Enhanced Customization: Amplify the customization capabilities of Vuturist's platform to meet the burgeoning market demand for tailor-made virtual spaces.This could include customizable avatars, interactive elements, and diverse environmental settings.As a practical application, consider the creation of a "Design Your Environment" feature allowing users to choose themes, layouts, and interactive elements that resonate with their brand or personal aesthetic.Technological Advancements Shield: To ensure Vuturist remains at the forefront of the virtual platform industry, it's crucial to establish a proactive approach to technological advancements.This involves: webinars to educate potential and existing customers on the benefits of Vuturist's virtual spaces and the value they provide compared to competitors.

Pricing Strategy Roadmap and Implementation Timeline:
The roadmap for implementing the pricing strategy should be phased to allow for testing, feedback collection, and necessary adjustments.A set of evaluation metrics such as customer acquisition cost, customer lifetime value, churn rate, and revenue growth rate should be established to measure the effectiveness of the pricing strategy.This phased approach ensures a structured and informed transition to a new pricing model, allowing for market feedback and necessary adjustments to optimize the pricing strategy for Vuturist's market success.

A. Conclusion
The virtual platform industry is undergoing a dynamic evolution, characterized by shifting market trends, technological advancements, and changing client preferences.This research set out to understand these dynamics and their implications for Vuturist, a key player in the virtual platform market.
Addressing the first research question, our analysis revealed that the market trends and broader external factors significantly influence product offerings and pricing strategies among virtual platform competitors.The growing demand for customizable virtual spaces, the integration of cutting-edge technologies like Artificial Intelligence (AI) and Augmented Reality (AR), and the shift towards more flexible pricing models are some of the defining trends in the industry.Additionally, the emergence of educational marketing and the increasing demand for collaborative features and real-time interaction further underscore the evolving nature of the virtual platform domain.
Turning to the second research question, insights from the external analysis provided a clear direction for Vuturist to tailor its product features and pricing strategy.Vuturist's technical prowess in 360-degree rendering, combined with its solid financial backing, positions it favorably to capitalize on the market's appetite for customizable virtual spaces.To align with client preferences and differentiate itself in a competitive marketplace, Vuturist should focus on enhancing its customization capabilities, integrating AI and AR technologies for enriched user experiences, and adopting flexible pricing models that cater to a diverse clientele.Furthermore, leveraging educational marketing can help Vuturist build a strong reputation, justify its pricing models, and foster a more informed customer base.In summary, the virtual platform market presents both challenges and opportunities.By understanding the market dynamics and strategically responding to them, Vuturist can tailor its product and pricing strategies to meet client preferences, differentiate itself from competitors, and achieve a leading position in the industry.The journey ahead, while challenging, is rife with potential for innovation, growth, and market leadership.With a client-centric approach, continuous innovation, and adaptive strategies, Vuturist is well-poised to navigate the complexities of the virtual platform landscape and deliver unparalleled value to its clients.

(
Source: Authors' Processed Data)• R2B: Vuturist offers only two pricing schemes differing in design options-template design or customization.Additional costs are incurred for feature development and design customization, increasing the overall price for customers and reducing Vuturist's appeal.

7201 Figure 2 .
Figure 2. Conceptual Framework (Source: Authors' Processed Data) The research design framework comprises the selected research methods and techniques employed by the researcher to carry out the study.The foundation, stages, and methodology inherent in this research design assist the researcher in finding answers to the study's posed questions.The research design that will be implemented in this study is illustrated in Figure3.1.

Table 1 .
Revenue Data as per end of Q1 2023

Features/Items Full Customized Design (Budget IDR 120 million) Design Template (Start from IDR 50 million)
Maximum Gallery Item 10 Gallery Item (1 Carousel Point of Interaction) 30 Gallery Item (1 Carousel Point of Interaction)

Table 5 .
Vuturist's Pricing for Additional Features The stagnant development progress at Vuturist is linked to the lack of a clear product development roadmap.The current approach emphasizes customer-driven feature additions but incurs additional costs and prolongs development timelines, negatively impacting Vuturist's competitive positioning in terms of pricing and innovation speed.
• R3B: A case in point is SimHive's attractive pricing options, offering better features at competitive prices.Unlike Everidea, SimHive's pricing options reflect a broader feature differentiation.ISSN:

Table 7 .
Product Strategy Comparison

Table 8 .
Pricing Strategy Comparison

2581-8341 Volume 06 Issue 11 November 2023 DOI: 10.47191/ijcsrr/V6-i11-22, Impact Factor: 6.789 IJCSRR @ 2023 7199
• Continuous R&D: Regularly invest in research and development to explore and integrate emerging technologies.• Stay Updated: Attend industry conferences, workshops, and seminars to stay informed about the latest trends and innovations.• Rapid Integration: Ensure that the platform can quickly adapt and integrate new features based on technological advancements.For instances: ○ Integration of AI and AR Technologies: Incorporate Artificial Intelligence (AI) and Augmented Reality (AR) to enrich user experiences with real-time data analytics, augmented overlays, and interactive dynamics.By developing an AR feature for real estate clients, they could virtually place furniture within a property, giving potential buyers a more immersive understanding of space.○ Educational Features: Develop educational features to aid users in understanding and utilizing the full breadth of Vuturist's offerings, fostering an informed customer base.Crafting an interactive tutorial or virtual walkthrough can guide users through the platform's features, enhancing user engagement and comprehension.○ Collaborative Features and Real-Time Interaction: Innovate in facilitating seamless virtual interactions with collaborative features that resonate with the global shift towards remote working and online collaboration.Introduce a 'Virtual Collaboration Suite' facilitating real-time interactions, document sharing, and project cocreation within a virtual workspace.• Collaborations and Partnerships: Form strategic partnerships with tech firms and startups to gain early access to innovative solutions.

Table 14 .
Pricing Strategy Roadmap and High-Level Timeline