The EY-challenge this year revolves around a new health and wellness product, Nutriscan. This product is a stand-alone handheld device that can scan food and accurately display the composition of food elements within seconds.

Our team is tasked with running a thorough analysis to determine the best go-to-market selling price/strategy, marketing initiatives, and success metrics for the sustainability of this business. To ideate our solution, we completed a detailed financial analyses, market research, and sensitivity tests. 

Based on our detailed analysis of fitness apps and services on the market today, we determined that the target audience is split up into three categories: 

Gym Junkies: Individuals who are health/fitness fanatics and are comfortable spending a significant amount of their income and time on fitness. 

Mothers: Middle-aged women who are focused on living a healthy lifestyle and interested in the dieting/weight loss markets.

Seniors: Smaller market but an important one. These individuals are those battling diseases and believe in health/fitness as the way out. 

Our Pitch

To arrive at our suggested product pricing points, I first analyzed the COGS (costs of goods sold) of the product as well as operating expenditures to determine the minimum break-even point for this venture.

Armed with that information, I was then able to extrapolate the data to forecast costs and break-even points for the future (next 5 years).

To determine a specific selling price point, I then created a variance analysis to account for different profit margin levels (taking into account break-even and expense variance) to project various growth scenarios in the future.

Finally, once our team was able to visualize the financials, we decided on a unit price of $115, as it was the most optimal in terms of profits for the first year, which can then be reinvested in the business, allowing us to realize a comfortable growth of 10% in revenue ever year (increasing profit margins as well) based on the projected sales volumes provided.

Our KPIs are mostly focused on product performance and financial sustainability.

In terms of financial sustainability, the business must see sustained growth year over year, with decreasing product costs

Looking at the product itself, the KPIs are as follows: 

1. Accuracy from user data should exceed 99% after the first year

2. Monthly app updates and support, ensuring a minimum 90% client satisfaction rate 

3. Ecosystem –  Nutriscan should holster a stronger community year over year, with more community support and focus