The document provides an executive summary, conceptual design, vision and mission statement, business goals, and product, market, business, and financial strategies for an Intoxi-kit subscription service that provides hangover relief items. The conceptual design details existing hangover relief products and the selected design concept. The vision aims to be the primary hangover relief provider for college students. Business goals include revenue targets and profit margins. The product strategy outlines sourcing and packaging items. The market strategy focuses on marketing the 4 Ps to college students. Business strategy analyzes Porter's 5 Forces. Financial strategy provides revenue and cost projections.

1. Project Phase II: Product Conceptual Design and Preliminary Product,
Market, and Business Strategy
1.) Executive Summary:
The work done in all 4 phases for our product can be broken up into four parts, our
refined conceptual design, writing our vision and mission statement, proposing what our business
goals will be, and the strategies we’ll execute to turn our product into reality.
Our vision and mission statement explained to potential VCs who’ll back us how we’ll
change the landscape of the college social scene while providing college students the chance to
be more responsible for their actions. We also defined the goal of our company is to become the
go-to product for getting over the hangover hump. The business goals we set out to make are
based on the percentage of market shares we hope to secure from industries such as vitamins and
nutrient-filled beverages.
When we refined our conceptual design, we sought to dissect product that were targeting
the same market. The two products that we ended up dissecting are Frat Boxes and Memebox’s
Hangover Box. We delve further looking at ways hangovers affect the body. What we discovered
is hangovers decrease blood sugar, dehydration, and decrease stomach acid and essential
nutrients. To counter these effects, we researched ways to increase blood sugar, hydrate the
body, and increase stomach acid and essential nutrients. We settled on a product that contains
ginger candy, gatorade powder, water, ramen soup, painkillers, and a shot glass.
For strategies, we began with our product strategy. We found out we needed to gather the
six products while also finding other resources to print out t-shirts and ads, deliver our products,
and how we could store them. In addition, for our market strategy, we determined that our
product would be most receptive to college students, thus we establish the 4 P’s for marketing to
them specifically. Furthermore, for business strategy, we mapped out that we have virtually no
rivals would be in our selected industry and thus, the barrier of entry is nonexistent, the power
suppliers and buyers have on our product is relatively high, especially for the buyer, and our
good is somewhat susceptible to substitutes. Lastly, we needed to map out our financial strategy.
This involved calculating all our expenses for marketing, production, and management, and our
revenue from selling the product. After totaling both sides for a present value, we crunch the
numbers to discover our net present value. Using these numbers, we came up with a reasonable
funding plan to venture capitalists, asking for a 1,000,000 initial investment. We evaluated our
company’s worth around 6 million pre-investment and 7 post while distributing 8 million shares,
each worth $0.83.
2.) Conceptual Design:
Purpose

2. Provide a convenient set of items such as medicine, food, and beverages to remedy the effects
of hangover.
Product Dissection of Existing Products
Frat Boxes
Function: Delivers party supplies geared towards greek life.
Sub-functions: Provides entertainment, convenience.
Form: Shot cups, card decks, jungle juice supplies, pong balls, beer bongs, box
Memebox: Hangover Box
Function: Delivers skin care products to conceal the effects of hangover on the skin.
Sub-functions: Moisturizes the skin, nourishes the skin, brighten the skin, cleanses the
skin, correct dark circles, fight eye puffiness, smoothen cheeks, exfoliate the skin
Function Structure Diagram

3. FS SP1 SP2 SP3
Increase blood
sugar
Dried Fruit (c2)(c3) Soda (c1) Candy
Hydrate Gatorade (c1)(c2) Coconut Water Pedialyte (c3)
Decrease stomach
acid
Ginger Candy (c2) Milk (c3) Chamomile Tea
(c1)
Replenish essential
nutrients
Vegetable Soup
(c2)
Ramen Soup(c1) Mixed Nuts (c3)
Criteria Concept 1 Concept 2 Concept 3
Healthy 1 3 5
Price 5 5 2
Performance 3 4 5
Taste 5 3 4
Selected Design Concept: 2
3.) Vision and Mission Statement​: We, the college students attending the University of
California, Santa Cruz, have found that many of our peers suffer from the day-after drinking
maladies called hangovers on the weekends. Many of these students are much too sick or
lethargic to get up and buy items that would provide a cure for their hangovers or lack the
foresight to prepare themselves for the nights when they have a little too much to drink. Our
vision is to create a new college environment that has pride in being responsible while puking
their guts out: to develop a shortcut for this process and make hangover cures an ease through
our product called Intoxi-kit. The goal of this product is to help remedy the effects of hangovers
in college students through providing a subscription service that sells boxes or baskets of goods
that aid in curing a hangover. Our mission is to be the primary provider and number one
recognizable hangover relief service for incoming college students and a staple of the college life
party scene. We believe our competitive edge of being the first company to fully delve into this
unknown market will spell success for our mission and business goals.

4. 4.) Business goals
● Create an ideal customer base
● Build a better brand
● Raise capital for funding
Revenue ($) :
● Expected Year 1 approximately $500,000
● Expected Year 2 approximately $750,000
● Expected Year 3 approximately $1 million,
1. Revenue Growth % :
Revenue Growth%
$ 500k 80-160%
$ 750k 30-80%
$ 1 Mil 30-60%
2. Profits ($)
● Net Income = Revenue - Cost of Goods Sold
= 500k - 200k
= 300k for Year 3
● Aim for 2-3 dollars profit per box or more depending on what is optimal for us
3. Profit Margin % :
● Net Income/Revenue
= 300k/1 Mil
= 0.3 or 30% for Year 3
5.) Product, Market, Business Strategy, and Financial Strategy
5a.) Product Strategy
Plan: Concept => Working Product
Resources:
Food needed:
● Ramen Soup
● Ginger Candy
● Pain Reliever

5. ● Water
● Alka Seltzer
● Gatorade Powder
Technological Resources:
● Website
Material Resources:
● Cardboard Boxes
● Plastic Containers
Additional Resources:
● Shot Glass
● Small advertising ads to go inside box
Shipping:
● UPS, FedEx, USPS
Facilities:
● Small warehouse
Positions:
● CEO
● VP of Marketing and Sales
● CTO/Product Development
Source of Resources:
Food:
● Ramen soup (Nong Shim)
● Ginger Candy (Reed’s)
● Pain Reliever (Amazon)
● Water (Amazon)
● Gatorade (Hydration Depot)
● Alka Seltzer (Costco)
● Mints (Altoids)
Printing Services:
● Vistaprint
Packaging Services:
● Packible (box itself)
● Uline (pouches for food)
Schedule: Once a month
Prototype

6. Main features:
● Remedies the effects of hangover
Benefits:
● Most of the items are items that can be found in nature
● Convenience
● Receive a shot glass on first subscription
Challenges:
● Keeping costs low
● Making sure food does not arrive to the consumer spoiled
● In a box; the size of a laptop
● Marketed to college students
● Within product: Gatorade powder, water, ginger candy, ramen soup, pain reliever,
mints, alka seltzer, Shot glass on first subscription
● 5-7 items max
● Subscription service will be on a quarterly subscription basis, rather than a yearly
basis. The Summer quarter would be the down-time for the company, we’d
probably want to end our fiscal year at the end of every july.
● We will contact convenience stores on college campuses to supply an
aesthetically pleasing version of our product with a business code inside that
advertises our subscription service. Our goal will be to offer our product in these
stores at a convenient price, but make it cost enough that people are getting a deal
by subscribing, as well as providing a good enough product that people WANT to
subscribe. In these convenience stores, there will be a lot of competition with junk
food and gatorade to provide hangover relief so we only want to reiterate that our
product would have to look like a better solution by a decent margin.
● With things like midterms and finals weeks, quarter students wouldn’t be able to
go all out at parties at least 3 out of the 10 weeks. This subscription can help ease
their mind that they can.
● Like how multiple people can share a netflix account, the idea that college
students will probably try and share subscription accounts intoxi-kit should be
expected too.
● So for people who experience one night stands or plan to crash at someone else’s
place when they go out to party (which happens a lot especially when you binge
drink and unexpectedly blackout when you weren’t planning on it) our product
should be optimized for easy transport capabilities. A lot of our friends go to other
campuses to party without too much foresight for what they need to bring,

7. especially if we have a fraternity chapter house at that school. These boxes can be
a valuable solution for that possibility
5b.) Market Strategy
4 P’s: College Students
1. Product: College students want a service that provides vitamin-filled drinks, something to
freshen their mouth, food to rejuvenate their energy and get them energized when they
wake up. Most of all, college students want all of this in one convenient space.
2. Price: College students are willing to pay upwards of $10-$15 dollars for this service
3. Placement: College students will buy this service at retail stores like 7/11, Safeway,
campus health centers.
4. Promotion: The service will be promoted on social media, Spotify ads, and by campus
health centers.

8. 5c.) Business Strategy
Porter’s 5 Forces Force against against Intoxi-kit
F1)​ Rivalry Between Competitors Weak to Medium - weak brand identity
F2)​ Threat of New Entrants (Barriers to
Entry)
Strong - easy buy in for other companies,
bigger companies could provide lower costs
to drive a startup out of business
F3)​ Threat of Substitutes Medium - traditional hangover relief
F4) ​Buyer Power Strong - lots of individual buyers who will
take established price of normal hangover
relief
F5)​ Supplier Power Low to Medium - lots of suppliers
Our competitive strategy would be a combination of the differentiated strategy and the focus
strategy. Our service is incredibly unique. No big name company or startup company has put in
enough force to launch this service onto the market. If we focus on delivering this service to a
niche subset of the population, college students, we can obtain a large amount of the market
shares easily.
F1)​ Rival competitors for intoxi-kit have nearly zero brand recognition comparatively to what
our business would be trying to provide. Some of these rival competitors include individual item
sellers that have products that would be in the kit but there are relatively no competitors in the
exact market for which we are planning on selling to as a bulk subscription service. Only one
company that offers hangover kits targets the demographic of individuals looking to use them as
party favors for events like bachelor/bachelorette parties, birthdays, or other party events. Our
subscription service is designed to build a customer loyalty program that trumps competitors
from going back to their original hangover problem solutions.
F2) ​A company can easy follow in our footsteps and create their own startup, geared towards
creating a subscription hangover kit because of several factors including that it’s relatively
inexpensive to put together a kit and therefore, is less expensive to enter the industry. However,
our unique brand identity would make it so that this threat has a weaker force unless the
company decides on product diversification. If an established company sees this service has
merit and profitability, they can easily bypass the years spent by us building an image and sell
the same service at a lower price, undercutting us and drive us out of our own market.

9. F3) ​Our service is generic and the items in the kit are what you can buy from any grocery or
convenience store. Within the kit itself, there are many substitutes for products that exist and
may be assembled differently in competitors’ kits with cost changeability in each. Overall, this
is an average force since our goal is to provide hangover relief through high quality and effective
products within a kit.
F4) ​ Our service plans to target college students who drink excessively and still have a remedy
whenever they wake up the next day. The force of buyer power is strong when it comes to
consumers since they have the power to choose whether or not they want items in a bulk like the
one from our subscription service, of simply from buying individual items at a convenience store
like most people. Buyer power is also a large force because our company depends on consumers
to purchase our service in order to operate so the number of consumers is a big factor in
operating as well as price sensitivity. Once a consumer feels as though there isn’t use for the
price of a bulk package, there’s a possibility the consumer could drop the subscription all
together to forgo paying costs and therefore, buyer choice is a large force.
F5) ​In terms of an effective supply chain management for our company, we would source our
products from places that normally do sell the individual items that are in our kits, in bulk such
as Costco.​ ​ In terms of the company, we have plenty of options for who we can choose as our
supplier. Any general store within a college campus with decent foot traffic is an ideal supplier.
We also have the additional options of on-campus stores and health centers since although we’re
advertising to a broad market, our target is to college students.
5d.) Financial Strategy
CASH FLOWING IN:
Expected revenue to be earned is 1 million by year 2. Must gain over 10,000 subscriptions.
Subscription is 10 dollars a month for 9 months out of the year so $90 per yearly subscription.
Roughly 11,111 needed to achieve revenue goal. Expected revenue to be earned is 5 million by
year 3. Must gain over 44444 new subscriptions or 55,555 in total. Subscription is 10 dollars a
month for 9 months out of the year so $90 per yearly subscription. Roughly 55,555 needed to
achieve revenue goal.
CASH FLOWING OUT:
1) Product Development
- People
a) Designers​: 1) 50k salary employee
b) Engineers​: 1) 65k salary for web designer engineer
- Equipment

10. a) Desktops​ - 15k
b) Software ​- 5k
c) Servers​- 5k
- Facilities
a) 100-200 ft per person @ $1.25 sq/ft per month
2) ​ ​Product Manufacturing
a) # of units​: 11,000
b) Manufacturing cost per unit​: ~$7 ?
c) Transportation cost (shipping units)​: $400 per month
d) Warehouse costs​: $4400 per month for four thousand sq ft.
3) ​Marketing and Sales
- People
a) Sales staff​: One additional employee 40k plus 12% commission
- Advertising campaigns
a) How many impressions (view or adview)​? Facebook, Total Frat Move, Total Sorority
Move
b) Cost per impression ($2-$5 for 1000)​? $3 for facebook, $5 each for TFM and TSM
SPREADSHEET GOES HERE
6.) Management Team and Support
- People
a) Chief Operating Officer​: Ashna Deo 100k
b) Chief Executive Officer​: Ambrose Hundal 125k
c) Chief Financial Officer​: John Nguyen 90k
d) Chief Technology Officer​: Kyle Van Dyke 60k
e) Chief Marketing Officer​: Kyle Van Dyke 30k
- Legal: outsourced estimate 8k
- HR: Should be handled by COO.
7.) Contributions:
Contributions to Project Phase 2
Ambrose Hundal: Vision and Mission Statement, Business Goals, Product Strategy, Business
Strategy, Financial Strategy
Ashan Deo: Vision and Mission Statement, Business Goals, Product Strategy, Business
Strategy, Financial Strategy

11. John Nguyen: Executive Summary, Market Strategy, Business Strategy, Financial Strategy
Kyle Van Dyke: Vision and Mission Statement, Business Goals, Product Strategy, Business
Strategy, Financial Strategy
8.) Appendices:
http://www.mayoclinic.org/diseases-conditions/hangovers/basics/treatment/con-20025464
http://draxe.com/natural-headache-remedies-relief/
https://www.healthaliciousness.com/articles/food-sources-of-potassium.php
https://www.ucsfhealth.org/education/treating_low_blood_sugar/
http://www.health.com/health/gallery/0,,20440834,00.html