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
Product Market Analysis & Strategy
By Megan Song
April 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, mobile
and biometrics-
based technology
• Assess, monitor
and enhance
cognition and brain
functioning.
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 SharpBrain
http://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 and
eager for a solution.
The ADD/ADHD Market
Market for Product - Children
0
1
2
3
4
5
6
7
8
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
1999 2008 2014 2018
Population:million
Percentage
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.pdf
2. 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.
0
2
4
6
8
10
12
14
16
Percentage of children aged 5-17 years ever diagnosed with
ADHD, by poverty status: United States
Less than 100% of poverty
level
100-199% of poverty level
more than 200% of
poverty 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 the
year 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 them
forget important dates and things, and contributes to
quarrels 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 phenomenon
might 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 $17.5
billion 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 willing
to accept neurofeedback training.
• Divided by consuming locations, neurofeedback
training can be categorized into institute-based
training 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 and
neurofeedback training software.
 Price: $400-19,995
 Key Players:
NeurOptimal System – has solid silver electrodes, pause the
video 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 and
neurofeedback 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, including
music, 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 play
together and enjoy regardless whether they have
ADHD 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, and
emphasizing 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 patients
and 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 + $250
for two-year subscription of
the 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

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Product Market Analysis & Strategy

  • 1.  Product Market Analysis & Strategy By Megan Song April 30, 2016
  • 2. Overview  Market Overview  Need Statement  Current Solutions  Competitors  Big Idea  Marketing Strategy
  • 3. Market Context  Market for BrainCo - Global Digital Brain Health Market • Web-based, mobile and biometrics- based technology • Assess, monitor and enhance cognition and brain functioning.
  • 4. 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/
  • 5. Market Context Source: The Digital Brain Health Market report 2012-2020 by SharpBrain http://sharpbrains.com/market-report/ Strong Positive Response for the Brain Health
  • 6. 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 and eager for a solution. The ADD/ADHD Market
  • 7. Market for Product - Children 0 1 2 3 4 5 6 7 8 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 1999 2008 2014 2018 Population:million Percentage 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.pdf 2. 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
  • 8. 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. 0 2 4 6 8 10 12 14 16 Percentage of children aged 5-17 years ever diagnosed with ADHD, by poverty status: United States Less than 100% of poverty level 100-199% of poverty level more than 200% of poverty 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.
  • 9. 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 the year 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.
  • 10. 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
  • 11. 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 them forget important dates and things, and contributes to quarrels and divorces. Source: http://www.chadd.org/Understanding-ADHD/About-ADHD/Data-and-Statistics/Cost-of- ADHD.aspx#sthash.5ZyOX3Kp.dpuf
  • 12. Market for Product - Adult  Insight • Adults diagnosed with ADHD seldom seek help • Possible factors contributing to the phenomenon might 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.
  • 13. Need Statement For both children and adult An effective and affordable solution to improve attention level alleviate ADD/ADHD symptoms is in great need
  • 14. Current Solution  Medication ADHD medication sales is estimated to reach $17.5 billion in the year 2020.
  • 15. 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
  • 16. 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.
  • 17. 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 willing to accept neurofeedback training. • Divided by consuming locations, neurofeedback training can be categorized into institute-based training and home-based training.
  • 18. 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
  • 19. Home-based Solutions  Normally includes a combination of EEG device and neurofeedback training software.  Price: $400-19,995  Key Players: NeurOptimal System – has solid silver electrodes, pause the video 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
  • 20. Home-based Solutions  Cons: • Effect not guaranteed • High price (some) • Not engaging • Cannot track improvements (some) • Not convenient, a computer required
  • 21. Direct Competitors Price Neurofeedback Related Professional NeurOptimal Versus Neuro+ ACTIVATE™Home Freedom 7D BrainBeat David Alert
  • 22. Direct Competitors  Insights • A niche market indicating professional and neurofeedback 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, including music, visualization, touch or other motions
  • 23. Target Audience  Children diagnosed with ADHD Age: 4-17, mainly 7-11  Adults ADHD Patients Age: 18+
  • 24. 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
  • 25. 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
  • 26. 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.
  • 27. 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 play together and enjoy regardless whether they have ADHD or not.  Key word: Fun, Share, Concentrate
  • 28. Marketing Strategy  Product  Price  Promotion  Place
  • 29. 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, and emphasizing 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 patients and help them.
  • 30. 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 + $250 for two-year subscription of the 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
  • 31. 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
  • 32. 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
  • 33. 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