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
Community- Learning is best achieved by building a community of practitioners
Dedicated Personal service- personal coaching
Awareness- Website, Paid search - Linkedin advertisements- B-schools- Employers, HR manager- Physicians- Physical TherapistsB2B - Managers- HR managers Delivery: - Own storesRent
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- 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
Customer segmentCustomer relationsValue propositionActivitiesPartners
Resources
Cost Structure Revenue Stream
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
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- 8-week MBLD- 5-day MBLD Intensive- Retreats
Fixed cost: - Staff salaries (reduced)- 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 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
Community- Learning is best achieved by building a community of practitioners
Dedicated Personal service- personal coaching
- Website, Paid search HR manager- Physicians- Physical Therapists- Court record- Hospital social worker- Linkedin ads- - B-schoolsB2B - HR managers
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-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
Customer segmentCustomer relationsValue propositionActivitiesPartners
Resources
Cost Structure Revenue Stream
B2C- Reduce pain/ blood
pressure/migraine/anxiety
- Better coping/resilience
- Reduce stress- Increase focus
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- Accelerators- Incubators- Yoga studio- Gyms- Hotels- Spa- Headspace- Insight timers
Usage fee: - 8-week MBSR- Retreats
Fixed cost: - Staff salaries (reduced)- Marketing cost- Professional services: legal, accounting- Insurance- Utilites
Subscription fees: - Mental gym: Ongoing practice after foundational courses- Mindfulness trucks
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
Problem solving- Studio operation- Program coordination- Program Delivery- Program development
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
Customer segmentCustomer relationsValue propositionActivitiesPartners
Resources
Cost Structure Revenue Stream
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
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