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Product Market Analysis & Strategy
By Megan SongApril 30, 2016
Overview
Market Overview
Need Statement
Current Solutions
Competitors
Big Idea
Marketing Strategy
Market Context
Market for BrainCo - Global Digital Brain Health Market
• Web-based, mobileand biometrics-based technology
• Assess, monitorand enhancecognition and brainfunctioning.
Market Context
In 2020, The market is forecasted to reach $6 billion
Source: The Digital Brain Health Market report 2012-2020 by SharpBrain http://sharpbrains.com/market-report/
Market Context
Source: The Digital Brain Health Market report 2012-2020 by SharpBrainhttp://sharpbrains.com/market-report/
Strong Positive Response for the Brain Health
Market for Product
As the first product of BrainCo, our product needs
to find a market with clear and strong need,
and accessibility to enter
The ADD/ADHD market is huge, profitable andeager for a solution.
The ADD/ADHD Market
Market for Product - Children
0
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0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
1999 2008 2014 2018
Po
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:mill
ion
Pe
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Rate
Growth Rate
Population
Statistics…
Source: 1. Attention Deficit Hyperactivity Disorder Among Children Aged 5–17 Years in the United States, 1998–2009, L. Akinbami, X. Liu. NCHS Data Brief No. 70, August 2011. http://www.cdc.gov/nchs/data/databriefs/db70.pdf2. Child Population: number of children ages 0-17 in the united states by age, 1950-2014 and projected 2015-2050. http://www.childstats.gov/americaschildren/tables/pop1.asp
By 2018, the population of children aging 5-17 diagnosed with ADD/ADHD is estimated to be 6.7 million
Market for Product - Children
An increasing percentage of children aged 5-17 years from families with an income less than 200% of poverty level will be diagnosed with ADHD.
02468
10121416
Percentage of children aged 5-17 years ever diagnosed with ADHD, by poverty status: United States
Less than 100% of povertylevel
100-199% of poverty level
more than 200% ofpoverty level
Source: CDC/NCHS, Health Data Interactive and National Health Interview Survey. Prediction: R square (less than 100%) is 0.987, R square (100-199%) is 0.899, R square (more than 200%) is 0.899.
Market for Product - Children
Insight
• The population of children aged 5-17 diagnosed with ADD/ADHD will keep increasing
• Most of them are from families with an income less than 200% of poverty level, which is expected to be $50,794.9 for a family of 3 and $60,118.95 for a family of 4 in theyear 2018
• Parameter: Expense for Neurofeedback training is estimated to be $12,000 in average.
Conclusion: The ADHD patients from lower-to-middle income families are increasing, whereas they cannot afford neurofeedback training.
Market for Product - Adult
4.4% of 18+ years old adults has ADHD, 1 expected to be a
population of 9.8 million2.
Only 25% of adults diagnosed with ADHD seek medical help.3
Source:1. http://www.adhdawarenessmonth.org/wp-content/uploads/ADHD-in-the-US-Population-FINAL-English13.pdf 2. http://datacenter.kidscount.org/data/tables/99-total-population-by-child-and-adult#detailed/1/any/false/869,36,868,867,133/39,40,41/416,417 3. http://www.adaa.org/understanding-anxiety/related-illnesses/other-related-conditions/adult-adhd
41.3% of these cases are classified as severe and would be
eligible for therapeutic intervention
Market for Product - Adult
Great lost due to ADHD
• Adults incurred $105 billion–$194 billion (73%–74%) of the overall excess cost of ADHD.
• The primary costs of adult ADHD are loss of income and loss of productivity at work.
• Household income is $10,532 to $12,189 less per person per year ($90.04 billion–$104.20 billion total)
• Many patients complain that ADHD has made themforget important dates and things, and contributes toquarrels and divorces.
Source: http://www.chadd.org/Understanding-ADHD/About-ADHD/Data-and-Statistics/Cost-of-ADHD.aspx#sthash.5ZyOX3Kp.dpuf
Market for Product - Adult
Insight
• Adults diagnosed with ADHD seldom seek help
• Possible factors contributing to the phenomenonmight be time, convenience and disposable income.
• Great lost has occurred due to ADHD for adults,including income and relationships.
Conclusion: Adult patients need a solution that is effective,
affordable and convenient.
Need Statement
For both children and adult
An effective and affordable solution to
improve attention level
alleviate ADD/ADHD symptoms
is in great need
Current Solution
Medication
ADHD medication sales is estimated to reach $17.5billion in the year 2020.
Current Solution
Medication
Side effect:
• Sleep problems• Decreased appetite• Delayed growth• Headaches and stomachaches
• Rebound (irritability when the medication wears off)• Tics• Moodiness and irritability
Current Solution
Behavior Therapy, including parent training
Behavior therapy is a treatment option that can help reduce these behaviors. It is often helpful to start behavior therapy as soon as a diagnosis is made.
Cons:
Behavior therapy can only deal with symptoms, but not as a treatment.
Current Solution
Neurofeedback Training
• In 2012, American Academy of Pediatrics lists Neurofeedback as “Level 1 Research- Best supported Interventions” for ADHD
• Since then, people has been more open and willingto accept neurofeedback training.
• Divided by consuming locations, neurofeedbacktraining can be categorized into institute-basedtraining and home-based training.
Hospitals and Institutes
High expense:
$2000-6000/session, most insurance not covered plus
2-3 sessions needed plus
$150-200 first consulting fee plus
$ 195-250 brain mapping fee
Inconvenient: has to be on premises
Time Consuming
Not Engaging
Home-based Solutions
Normally includes a combination of EEG device andneurofeedback training software.
Price: $400-19,995
Key Players:
NeurOptimal System – has solid silver electrodes, pause thevideo or music if distracted, on computers
Versus – works with Muse and a app, has games on tablets
Neuro+ - works with Muse/Emotiv, measures focus level,stillness and motion responses in a game, on computers
Freedom 7D/Freedom 24 D – FDA-clearance, on computers
Home-based Solutions
Cons:
• Effect not guaranteed
• High price (some)
• Not engaging
• Cannot track improvements (some)
• Not convenient, a computer required
Direct Competitors
Price
Neurofeedback Related Professional NeurOptimal
Versus
Neuro+
ACTIVATE™Home
Freedom 7D
BrainBeat
David Alert
Direct Competitors
Insights
• A niche market indicating professional andneurofeedback at the price of $200-1000
• Few competitors can be used on multi digital platform
• The more professional, the less intriguing
• Only a few featuring the improvement tracking function
• Can only play alone
• Integrated using experience is important, includingmusic, visualization, touch or other motions
Target Audience
Children diagnosed with ADHD
Age: 4-17, mainly 7-11
Adults ADHD Patients
Age: 18+
Target Audience –Children
More severe in hyperactive symptomsHard to sit still. There are too many things attracting them at the same time
Children with ADHD can also focus, but cannot control their focus
Experience a hard time in building confidence and making friends对
Don’t want to be treated differently due to ADHD
Be pushed to take pills and take training instead of do them at will
Children are users and care about the fun factor. Parents are the purchasers and care about efficacy
Strong needs from parents and the school to correct their behavior
Target Audience –Adult
More ADD than ADHD
Some of them have very successful careers
Complain about the negative effect on career: amnesia, lack of confidence, low efficiency
Complain about daily life: quarrels between couples due to amnesia, irritability, impatience for listening
Care more about efficacy and being scientific while less about the fun factor
Target those who are taking medication, supportive events or nothing
Target Audience
The Choice of Target Audience
Since the needs of children and adults are different, it’s hard to attract both groups with a single product.
Recommendation:
Children first, and adults later.
BIG IDEA
We believe that children with ADHD should study,play and make friends like other normal children.Focus 1 can provide a game that children could playtogether and enjoy regardless whether they haveADHD or not.
Key word:
Fun, Share, Concentrate
Marketing Strategy
Product
Price
Promotion
Place
Market Strategy - Product
Design
Colorful, Cool, Potential to make customized stickers
Feature
Share, Fun, Challenging, Visualize and track improvement
Game Settings
Can stand and play in the beginning, integrated nodding, clapping, concentration and other motions to play games, andemphasizing concentration and sit still gradually.
3D Experience
With bulb first, and potentially lightsaber and other toys
Function
To avoid competing with neurofeedback training therapists and partner with them, our product can be the homework of a training. It can collect data on trainings and attention levels for therapists, so that they can better know their patientsand help them.
Market Strategy - Price
Recommended Retail Price: $300+
Price for School or Nonprofit Organizations:30-40%off
Zengar: Neuroptimal System $5,500
SenseLabs: Versus $499-749 for headset + $250for two-year subscription ofthe app
NeuroSpire: Neuro+ $299 for a MUSE headset +$30/month for the software
BrainMaster Technologies: Freedom 7D/ Freedom 24D $6995-19995
C8 science: ACTIVATETM Home Program $195-495
MINDALIVE: DAVID ALERT $395-465
BrainBeat Training Program $249
Market Strategy - Promotion
Children
School – free gift/Workshops to share educational info
Showcase in museum of science and kids event
Nonprofit Organization – events
Behavior Therapist – integrate the neurofeedback training in their training program
Game Contest/Meetup
Parents
Supportive events
Seminars – give speech to gain credibility
Regular events – share related knowledge and invite specialist for workshops or events
Market Strategy - Place
Media Channel
• ADHD Related Media: ADDitude, social media hot accounts
• Mass Media: Boston Globe, Boston.com,etc.
Distribution:
• Our website, events
• Neurofeedback Training Centers
• When we have several products: physical stores to let people experience our product
Collaborator:
• Actively reach out toy makers to explore other accessory products
• Keep good relationships with NPOs and schools
Possible Barriers and Recommendation
Combine IMU into the product
Signal Identification for blinking, nodding and knocking on the headband
Biggest Barrier ---- Game Development
Schools may not allow us to contact children directly ---- We may provide educational information and share knowledge of brain science and neurofeedback training with children. Free samples can be used