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Babylon VR: A Case Study

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The Problem

After entering into the Virtual Reality market, Babylon VR decided they had wanted to expand into different markets for a wider range of services - to create new revenue streams, and was unsure which markets had the most viability.

The Approach

Through interpretation of the meeting with the client, we identified the needs and wants of Babylon VR: to research and compile a list of niche markets they believed had potential for Virtual Reality services along with potential application methods, suggested pricing points and potential networks to strengthen brand identity within these markets.

Taking the clients concerns and needs into consideration, we determined that the final deliverable would be an extensive market research report that would later be presented to their Management team. With that in mind, we created a timeline of performance obligations to be followed and executed for the client. It began with a compilation of all potential markets with a large demand for the application of Babylon’s technology in the Virtual Reality space. Extensive research was done to determine the most promising markets that Babylon should pursue and a final report was created to summarize the team’s findings.

The first research step was to do an in-depth analysis on the key economic drivers in the industry, outlining the past and future performance growth of the industry. This includes looking into the historical and forecasted measures on key financial ratios of the industry, as well as any major Economic factors that may hinder or help the industry grow.

The next step was determining the current competition in the market as well as where the specific industries sees the future of Virtual Reality. We looked into what the current applications that were in the market and determined what made them successful, their method of approach in pricing and what differentiated them into the market. This allowed the client to understand where Babylon can fit into that industry.

The final step was to determine the short-term and long-term applications and strategies that Babylon should pursue based the economic and competition factors researched from above. When differentiating around short-term vs long-term, we based our analysis around the saturation of Virtual Reality in the market. Using this as the pivot between short and long term horizons means that our applications and strategies can be tailored to the expected accessibility and reach of the product. When evaluating strategies, a large driver was marketing spend in each industry due to the proposed applications being largely used as and viewed

by the companies as an advertising tool. In specific, these strategy sections identify who to target in the industry, why to target them, and how best to target them.

The Result

After completing the report, we presented their findings and suggestions to the client, who was extremely satisfied with the final deliverable. Babylon has since then decided that they would like to continue to work with ACE on additional projects, including further research into select industries studied in the previous deliverable.