grapefruit nyu 2015

GrapefruitService: offer premium Mindfulness-Based Stress Reduction (MBSR) course and continuing support on-line or in-person to reduce catastrophic thinking, worries, and anxiety.

Team: Tracy Chang and Madhu Krishnan

Interview this week: 14+7+8 + 3 + 7=40Interview to date: 48

Community- Learning is best achieved by building a community of practitioners

Dedicated Personal service- personal coaching

AwarenessB2C- Website, Paid search - Linkedin advertisements- B-schools- EmployersB2B- Managers- HR managers managerDelivery: - Own stores

Problem solving- Studio operation- Program coordination- Program Delivery- Program development

Intellectual: -MBLD-MBFHuman:- MBSR teachers- Purpose-driven employeesPhysical:- 1,500 sq ft studioFinancial:- Operating cash- Loan guarantee

Segmented

B2C

- MBSR grads- Working profs- Pursuing MBA- Managers- Entrepreneurs- Ailments - Major life event- Age: 25 to 50- Income: >$100K- Urbanities

B2B- Start-ups- Mid to large companies

Channel

Customer segmentCustomer relationsValue propositionActivitiesPartners

Resources

Cost Structure Revenue Stream

Risk ReductionB2C- Dance with life- Feel well- Lead well

B2B- Lead well

Brand/Status

- MBSR- Premium service

Design

-Asthetic experience

Acquisition of resources (customers, teachers)- mindful.org- wisdom 2.0- mindfulness consultants- meditation/retreat centers- B schools- Accelerators- Incubators- Yoga studio- Gyms- Hotels- Spa- Headspace- Insight timers

Usage fee: - 8-week MBSR/MBLD- 5-day MBLD Intensive- Retreats

Fixed cost: - Staff salaries- Marketing cost- Professional services: legal, accounting- Insurance- Utilites

Subscription fees: - Mental gym: Ongoing practice after foundational courses- Mindfulness trucks

Licensing: - MBLD- MBF

Variable cost: Rent Teacher salaryAdvertising (acquire, keep, grow)

Day 1

Equinox/NYU Sports club members on Wall Street

Classmates (Stern, LLP)

What we learned1. When we asked people “how they dealt with stress” – responses we got were - Active workout, Running, Yoga, TV,

Alcohol, hanging out with friends.

2. “Stress” did not trigger Meditation/Mindfulness

3. People discussed ”meditation” “Yoga” “Pilates” when there was a health trigger - BP or back pain

4. DIY leads to minimal felt benefits and stop

Customer Segments and Value PropositionDay 2



Awareness- Website, Paid search - Linkedin advertisements- B-schools- Employers, HR manager- Physicians- Physical TherapistsB2B - Managers- HR managers Delivery: - Own storesRent



Segmented

B2C

- MBSR grads- Professionals- Pursuing MBA- Managers- Entrepreneurs- Ailments (BP)- Major life event- Age: 25 to 50- Income: >$100K- Urbanities

B2B- Start-ups- HR manager mid to large companies

Channel


Resources


Risk ReductionB2C- Dance with life- - Feel well- Reduce stress- Reduce back pain/

blood pressure- Silent life saver- Lead well (certificate?)B2B- Lead well- Healthcare saving*- Productivity*

Brand/Status- MBSR- Premium serviceDesign-Asthetic experience


Usage fee: - 8-week MBSR- 8-week MBLD- 5-day MBLD Intensive- Retreats

Fixed cost: - Staff salaries (reduced)- Marketing cost- Professional services: legal, accounting- Insurance- Utilites


Licensing: - MBLD- MBF

Variable cost: Rent Long Term Hourly RentTeacher salaryAdvertising (acquire, keep, grow)

Day 2

Who are our customers?

-Stressed financial VP/consultant - High Blood Pressure- Want “natural” way -

Can’t sleep

-Caregivers-Healthcare Professionals

-Divorce

-Migraine

-Male, 25-50, >$100K-healthy architect-wants to improve concentration

- Back pain

Demographics - Age 25-50, Income >$100, Urbanites

-Anxious

Day 3



- Website, Paid search HR manager- Physicians- Physical Therapists- Court record- Hospital social worker- Linkedin ads- - B-schoolsB2B - HR managers



Segmented

B2C-Ailments (BP, Insomnia, migraine, pain, anxious)-Life changing event (divorce, caregiver) -Stressful professions-Super mental function (focus)- Age: 25 to 50- Income: >$100K- UrbanitiesB2B- HR manager mid to large companies

Channel


Resources


B2C- Reduce pain/ blood

pressure/migraine/anxiety

- Better coping/resilience

- Reduce stress- Increase focus

B2B- Healthcare saving- Productivity

Brand/Status- MBSR- Premium service


Usage fee: - 8-week MBSR- Retreats

Fixed cost: - Staff salaries (reduced)- Marketing cost- Professional services: legal, accounting- Insurance- Utilites


Variable cost: Rent Long Term Hourly RentTeacher salaryAdvertising (acquire, keep, grow)

Day 3

Get Strategy

Grapefruit

Health Websites(WebMD, Women’s Health, Alternative

Medicine)

Internists, Therapists, Psychologists, Psychiatrists

Web Search(Ad Word)

Social Media community

Employer EAP Insurance Meditation Centers

Public Relations(Press and Media

Coverage)

Corporate Health/Wellness

Provider

Awareness; Evaluation

Day 4

Get:-HCP-Health info website-Employer EAP-Insurance-Corporate wellness providers-Web search-Social media-Universities

E-commerce - Web direct


Intellectual: -Human:- MBSR teachers- EmployeesPhysical:- Administrative officeFinancial:- Operating cash

-Who has BP, Insomnia, migraine, pain, anxiety-Who has Life changing event (divorce, caregiver) -Stressful professions-Superior mental function (focus)- Age: 20 to 50- Income: >$80- UrbanitiesB2B- HR managers- Directors of University students health service - -

Channel


Resources


B2C-Reduce anxiety and panic and manage responses to stressful event when all other interventions fail

B2B- Healthcare saving- Productivity

Brand/Status- MBSR- Premium service

Acquisition of resources (customers, teachers)- mindful.org- wisdom 2.0- mindfulness consultants- meditation/retreat centers- B schools

- Yoga studio- Gyms- Hotels- Spa- Headspace- Insight timers

- $800 per person per course with 1st year unlimited on-line support

- $500/annual membership for unlimited on-line support- $100/day long retreat – weekly

Fixed cost: - Staff salaries - Marketing cost- Professional services: legal, accounting- Insurance-

Variable cost: Hourly RentTeacher salaryAdvertising (acquire, keep, grow)

Day 4

Path forward: Customer segment/Value proposition

Day 5

Insurance – Coverage, Reimbursement, can insurance be a payer?

Customers – recommendations, preferences, and results Talk to MDs/NPs - how they make decision on treatment options Talk to MDs/Reimbursement specialists and Insurance providers and learn of CPT

codes that this could be billed to

Sub-segments of anxiety

Those at the end of the rope Intervention earlier those are actively seeking alternate options

Spiritual?

Appendix

$62B

$2.2B

Total Available market(123MM full-time employees in the US)

Served Available market49MMAnyone with BP/Insomnia/lower back pain (40%) and Income >$100K, 9%

$29MMTarget Market(590K - Manhattan)

Market size

Day 2

Channels

CustomerGrapefruit Direct Sale through Web

Grapefruit

Mindfulness Course

Education (Awareness) Q&As (Purchase evaluation

criteria) Purchase product After-sales (community) Direct and instant

communication

Cost: E-commerce administrative

costs Web design and

maintenance 24/7 chat, phone Credit card Staff Website management

Awareness; Evaluation; Purchase; After-sales

Day 4