mad product

Comple-mentary:

None

Industry analysis:

The Five Forces model

Threat of new entrants: High, big companies in the food industry can develop a substitute.

Bargaining power of suppliers: Low, we will be the only company offering such a product, at least in the beginning.

Threat of substitutes: Low, there are pills available, but they are not very popular among our target market.

Bargaining power of buyers: Low at first, moderate after new entrants.

Rivalry among existing competitors: Low, we have the first mover advantage.

Our target market: People that drink alcohol Primary market: 16-25 years Dutch market

Market will stay large, because people willalways be drinking alcohol

89% of Dutch population (15-24 years) drinks alcohol. (Eurostat, HIS-ronde 2004)

59 respondents between 16-25 years 48,28% male, 51,72% female

Almost everyone drinks alcohol, and many of them experience hangovers.

There is a demand for a product that cures a hangover.

Quality (whether it actually cures a hangover) is most important, price sensitivity is low.

Most important causes of a hangover: Dehydration A drop in blood glucose level

Symptoms: Body aches Nausea Languidity

How does our product work?

We use ingredients that have a proven effect on the causes and symptoms of hangovers. We will most likely not be using the aforementioned medicine.

How do we know that our product works? These chemicals have a proven effect

on a hangover, but we still have to make and test the product.

How could we test our concept? By drinking alcohol and testing it the

next morning. Later: a bigger test group.

Cost indications:

Testing at a facility like TNO: €10,000 Producing, distributing, marketing: no

indication yet

Assumptions that need to be addressed: MAD cures hangovers. There is a demand for MAD. When successful, big existing companies

in the food industry will enter our market. We will find the capital needed to launch

our product. We will be able to establish a partnership

with a big company in the food industry.

“Beat the Hangover”

Nick VersteegenTim Haverkamp

Jeroen Struijk