htmjwi 575 week 9 lecture notejwi 575 week 8 lecture notertc videos B u s i n e s s F i n a n c e

Hi Everyone,

For my business wlnss., a provider of psychedelically assisted health and wellness treatments, the product is the service delivery of the treatments. Consumers looking for extra ways to manage their self-care and state of mind through wellness practices such as cupping, massage, reiki, yoga, and meditation, will use psychedelic assistance to heal ailments of the spirit and to simply, feel happy. Services incorporate either psilocybin or ketamine and are premium-priced versus regular wellness services available on the market. Four, two-hour treatments, will be offered and branded for competitive differentiation, Feelin’ Fine™ (Psilocybin induced holiday), Escape your Demons™ (Ketamine induced guided meditation), Float your Boat ™ (Psilocybin induced stress release session), and You do You ™ (Ketamine induced purpose-based exploration).

Online is the place where consumers will find wlnss. The company is well-positioned and highly searchable because of the extensive paid and organic SEO and SEM strategies in place to guide consumers to a unique and highly engaging website. Regular blog posts and social media campaigns sponsored by wlnss. also work to send consumers to the wlnss. website to learn more and book a free:15-minute consultation with a psychotherapist. Appointments booked through the wlnss. website or the app prompts a nurse to set up a screening call to review the client’s medical history and explain what they can expect from their psychedelic experience. Clients can also record their experiences using the added value recording feature on the app. This feature allows clients to save and review their thoughts on the experience with a view to identifying other personal healing opportunities.

The price for each treatment is $600, making them premium priced at two times more than standard in-person wellness treatments such as cupping. The premium reflects not only the added cost of the psychedelic medicine, and the trained practitioner (30% premium versus a standard wellness practitioner), but the quality and integrity of the services. Psychedelically assisted wellness must in no way be associated with underground street drugs with questionable quality and illicit sourcing. Premium pricing of services allows wlnss. to establish this distance.

Services are line priced to promote equal trial and ensure clients choose treatments best suited for them so wlnss. can deliver quality outcomes. Price differentials would work to skew treatment volumes. Finally, to promote repeat, follow-up service appointments are priced at $300.00 (50% off) as long as they are booked at the same time as the original treatment. With this pricing, the current treatment margin is 50% and in line with the profit margin associated with wlnss.’ current Covid-testing business (wlnss. 1.0). With industry lobbying currently being done by wlnss. and other medical and health practitioners, we fully expect the price of psychedelic medicines to be brought down to the point where margins for psychedelically assisted services will double.

The promotion of services for wlnss. 2.0 will be done exclusively online through both organic and paid social and digital media campaigns set at heavy levels in Year One. Six, Three-week campaigns, will be targeted to existing clients and new prospects fitting the target profile. Target segments Gen Z/Millennial Females, Performance Athletes, Business Leaders, and Real Housewives ™ will be reached via paid Facebook and Twitter ads and Influencer campaigns on Instagram. Existing clients will be reached via e-blasts with special offers to receive a free consultation and half price off their first follow-up treatment. Client testimonials from the existing client base will also be included in e-blasts to provide peer assurance. Promotional costs for Year One are budgeted at $200,000.00 with the key promotional objectives set to build awareness and trial.

From this week’s RTC case study featuring Tio Gazpacho, I learned that you can’t work in a bubble when building a brand and a business. You need to pay attention to the environment, key in on trends such as on-the-go food portability and snacking, and most importantly, competitor moves in the present and future. Austin rightly anticipated the impending listing of PepsiCo’s Alvalle, the leading global brand of gazpacho, in the United States (1), and worked to solidify Tio’s brand position and competitive advantages as defense (2).

Taking this learning further, I also believe it is important to put yourself in your competitor’s position to understand their next competitive moves. I tried to do this with PepsiCo and realized the challenge to their distribution network is that only the juice division of PepsiCo, Tropicana, and Naked Juice, deliver refrigerated products (3). This means that a new production line would be required to produce and distribute gazpacho from the Tropicana plant in Florida. Waiting for this competitive infrastructure to be built, I would have tried to launch more Tio products and tie up as much shelf space as possible to block PepsiCo’s gazpacho listing. Tio could have considered launching fruit and vegetable juices given that space in the refrigerated section is fixed and PepsiCo would be unlikely to give up any Tropicana shelf space given the strength of the franchise. My key conclusion is, think through your competitor’s next moves, act defensively by solidifying your position and work to block them from making their next moves. Happy to discuss this,

Karen

References

1. JWI 575 Week Nine RTC Video. Tio Gazpacho: Taking on PepsiCo.

2. JWI 575 Week Nine Lecture Notes.

3. https:// 575 Week 9 Lecture Note