Cambridge Judge Business School
CVP - Targeted Market Research to Facilitate Growth for Noise Solution’s Well-being Offering
Study Group 21
Presenter: Atsushi Konai, Collin Janich, Noor
Mandviwalla, Amanda Cai, Arief Permana
6 Dec, 2023
Today’s Agenda
Recommendations
Disclaimer
This work has been undertaken as part of a student educational project and the material should be viewed in this context. The work does not constitute professional advice and no warranties are made regarding the information presented. The Authors, Cambridge Judge Business School and its Faculty do not accept any liability for the consequences of any action taken a result of the work or any recommendations made or inferred.
Introduction: Noise Solution CIC
Noise Solution (NS) is an award-winning social enterprise that assists at-risk youth in becoming more engaged, driven, and empowered.
SERVICES
§ NS pairs participants with musicians to produce music in a 1:1 format
§ NS provides a digital platform that enables participants to share their music-making experiences, creates a supportive community, and offers data-capturing tools to analyze and enhance participant well-being
VALUE PROPOSITION
§ Non-Pathologizing Approach: NS methodology avoids problematizing or medicalizing young individuals, ensuring a more positive and understanding environment
§ Science-based approach: NS aims to drive positive change in young people's lives by utilizing Self Determination Theory
§ Data-driven, technology-enabled solution: NS utilizes technology to complement the solution and to gather data to determine its effectiveness
CHANNELS
§ NS partners with local authorities, MultiAcademy Trusts, foundations, and grant providers to deliver wellbeing service to troubled young people (YP) mostly between the ages of 11-25
The Noise Solution Product
§ YP is paired with a musician for 1:1 sessions carried out over 20 hours
§ F2F and digital with 10 hrs of studio time
§ Leverages Self Determination Theory to improve motivation and well-being:
ü Autonomy: Freedom to create any music the YP desires
ü Competence: Using music tech to experience competence and expertise in the skills acquires and in the music they produce.
ü Relatedness: Cloud-based 'social media' feed, capturing highlights from the journey (i.e. video reflections)
§ YP shares Participants safely share session highlights and weekly video reflections on their MyStream feed (a private and secure online space) and invite friends/key-workers and family to leave their feedback
§ Well-being improvement data captured and shared
§ Outcomes: Saving returns for families and local governments; 50% reduction in low levels of well-being
£ 2,075
The Problem
Net Income of Noise Solution, 2019 - 2023
Framework Contracts
Total Net Income FY 22-23
£ 14,938, showing strong recovery from COVID, however yet to reach the 2019 level. Further business growth is expected.
Research Objective and Questions
§ To understand the decisionmaking process of local county commissioners in issuing bids to Noise Solution for their services; and how the company may utilize these findings to inform their long-term growth strategy.
§ Which counties should Noise Solution prioritize for growth?
§ What is the competitive pricing landscape?
§ What is Noise Solution’s main value proposition (in terms of pricing, service quality, effectiveness, etc.) according to current customers and as compared with alternative providers and substitute offerings?
Research Methodology Design
FORMULATE RESEARCH
QUESTIONS
ü Secondary research focus: a) published data on national mental health prevalence among YP; b) county procurement website to understand competitive landscape
ü Formulate hypotheses to be tested based on preliminary secondary research findings
PRIMARY RESEARCH & DATA ANALYSIS
ü Form recommendations based on the research findings, from both qualitative and quantitative perspective
ü Action planning for the implementation of the recommendations in terms of timeline and risk mitigation strategies
ü Interview with Client to understand research objective
ü Design research methodology: Primary research + Secondary research
SECONDARY RESEARCH & HYPOTHESES
ü Primary research focus: designed questionnaire, interviewed commissioners across 4 counties to gain government officials’ perspectives on the client
ü Analyze the qualitative data collected and test the hypotheses
RECS & ACTION PLAN
Target Markets
EXISTING MARKETS
POTENTIAL MARKETS
Hypotheses
PRICING
§ NS’s solution is overpriced as compared to other solutions (i.e. is it out of range for certain counties)
§ NS’s solution is overpriced in terms of legitimacy (who is delivering the service: musician vs. registered therapist) and effectiveness
§ GROUP VS ONE-ON-ONE VS. HYBRID
§ NS’s exclusive focus on 1:1 engagement limits its ability to secure more bids
GEOGRAPHY
§ County officials give preference to service providers HQ’d in their county over those that are not
CERTIFICATIONS
§ County officials are more likely to award bids to certified service providers (the actual therapy) for more severe cases (note: this could impact training for musicians)
§ If NS musicians have more stringent safety check, commissioners will pass NS more female cases.
DIGITAL VS. IN-PERSON
§ Counties prefer service providers that are comfortable and effective at providing digital solutions (I.e. either or)
AGE
§ NS is more attractive to an older age group (I.e. 15+?) (e.g. driving to the service)
FAMILY/ECONOMICS
§ The county takes into account the family’s ability to support the service (I.e. time commitment, opening up house, taking time off of work, commenting on platform, etc.)
§ County takes into account parents’ preference/opinion in selecting services
GENDER
§ County officials take gender into account when selecting a solution
§ County officials are more likely to refer females to femalefocused providers (as country level data shows that more women actually suffer from mental health issues, yet NS data shows they have more men cases)
NS DATA COLLECTION
§ The data that NS produces around well-being doesn’t fully align with the counties’ KPIs
§ The data that NS produces is not as valued by the counties as NS believes
SUCCESS BY SYMPTOM
§ County officials prefer more specialized providers (I.e. Depression Inc. for depression)
PODCASTING VS MUSIC
§ County officials do not recognize podcasting as a proven wellbeing solution
§ Podcasting is more attractive to older people (e.g.15+); 3) County officials will pass more female cases through podcasting over music session.
General Market Findings: The Decision-Making Factors
CATEGORY
Important But Not Determinative:
§ Pricing is a key factor, but it's not the sole determinant
Pricing
§ Pricing is considered on a case-by-case basis and varies wildly based on the type of intervention (clinical vs. non-clinical), with a focus on ensuring value for money
§ No price average by intervention type
Not a Distinguishing Factor:
Provider
Certifications
§ Focus is on minimum criteria, which serves as an essential baseline for provider qualifications, ensuring a standard level of competence and safety.
§ Advanced qualifications or certifications do not factor into the routine decision-making process
Case Dependent, No Preference:
Specialist vs. Generalist
§ Provider choice depends wholly on the YP’s needs
§ No detectable preference between specialist or generalist providers
§ No price ceiling for service
§ Wide variation in £ / hr. rate: “£10 - 116 / hour are all active on the framework”
§ Majority of rates appear to be fall within the £58 - £100 range for 1:1 and group intervention
§ Price consideration breakdown: “Price is 25%; Quality 75%”
§ A complex health need may warrant greater qualifications / certifications when medical input is required
§ Instead, an advantage for larger providers is their ability to meet needs more quickly
§ Smaller service providers may have a 6-week wait time
§ Trend: providers offering generalist services
§ Generalists may be more suitable for early trauma intervention
§ Specialists may be needed for transition from child to adult services
IMPLICATION
§ Under-18 services seem to be more flexible in pricing, allowing for higher rates
§ While NS sits at the high-end of pricing, it has room to command a higher price if it can demonstrate commensurate value
§ If tied to a new solution, NS can potentially further distinguish itself from competitors by augmenting and highlighting its certifications
§ Given the shift towards generalist offerings, NS can differentiate itself (from the 166 providers in one county) by rolling out specialized offerings to augment its primary generalist service
General Market Findings: The Decision-Making Factors – Ctd. I
CATEGORY QUALITATIVE EVALUATION DETAILS
Case Dependent; Need For All:
Delivery Format
(1:1, Group, Hybrid)
Delivery Method
(F2F, Digital)
§ No preference for delivery format, as the individual needs of the YP vary widely and a range of solutions are needed to address them appropriately
§ Group sessions offer cost benefits, but certain group-based solutions are as expensive as 1:1 treatment, so that is not the determining selection factor
Mixed Base is Critical:
§ F2F interaction is noted for long-term effectiveness, but digital platforms offer accessibility, and are more aligned with YP’s habits
§ A mixed approach is favored by professionals for its broader reach and cost benefits.
§ Group sessions might be necessary for certain individuals, especially those with difficulties in group settings
§ “Sometimes children and YP find oneto-ones too intensive”
§ “We also have a number of children who thrive on a more one-to-one basis”
IMPLICATION
§ NS should consider group-based solutions, as they are perceived as a needed tool in the toolkit
Not a Deal Breaker:
Geography
§ No formal preference for local providers
§ Travel costs and the ability of young people to attend the services are taken into account
§ Cost benefit to digital platforms, including mitigating travel expense for YP
§ Technology-based stuff is what YP are used to dealing with – “they live in a remote, virtual world”
§ For some YP, an online platform does work better, ones with anxiety “who don’t want to leave the comfort of their home”
§ “XX is a large county we can tap into more service providers”
§ Frameworks and contracts guide the geographical considerations in the bidding process
§ Acknowledgement that operational officers might have greater exposure to in-county providers
§ NS should consider increasing digital offerings, particularly to increase profit margins and access new markets
§ NS should consider emphasizing other geographic factors, such as existing partnerships within the target county
General Market Findings: The Decision-Making Factors – Ctd.
Age
CATEGORY QUALITATIVE EVALUATION DETAILS IMPLICATION
Age Agnostic (Officially):
§ Commissioners do not classify service providers according to age appropriateness or effectiveness
§ While operational managers might perceive some services as more age appropriate than others, providers are selected based on the needs of the child or YP - not their age
§ Many services are designed to cater to a broad spectrum of age groups
§ There is discussion among some County about increasing the age cohort for children’s services up to 25
§ The line between YP and adult care is not as definitive as it appears
§ Podcasting “feels like quite an adult thing”; likely less suitable for children or younger YP
§ NS can leverage its efficacy among the older cohort of YP and separate from competitors by emphasizing focus on age
Gender
Inclusive and Flexible:
§ No specific gender preference in awarding services
§ Most providers equipped to cater to all genders
§ Open and responsive approach, allowing for the tailoring of services based on the individual needs of children and young people, regardless of gender
§ Some outdoor activities (e.g. equine therapy) could be more geared towards females
§ NS can utilize genderspecific services to meet gender-specific needs currently going unaddressed
Client-Specific Observations from Primary Research
NS PRICING
§ NS is “not considered cheap,” but is valued for its effectiveness
§ NS is “worth the shot” because they deliver on value
§ It is seen as a worthwhile investment, especially for complex cases
NS MARKET POSITIONING
§ NS is “not a solution in and of itself,” but a “catalyst to something else”
§ NS “wants to be for everyone – but really is perhaps more geared towards the hardest and most tricky cases.”
§ NS is more successful with the 11+ age range, especially in older secondary school age children
NS EXPOSURE
§ NS’ bids are “strong”
§ Operational managers “move towards using a provider they have used in the past”
§ NS could enhance understanding of their offerings among operational teams in addition to the authorities
NS DATA DELIVERY
§ NS’s data collection and delivery platform is best in class
§ NS should provide more data on less successful (“failed”) cases
§ Detail what exactly went wrong
Findings Summary and Strategic Recommendation
In an oversaturated market populated by mid-priced generalists, NS should differentiate itself as a premium specialist service.
By providing a tailored product line (Sound Suite™) that leverages NS’s unique competitive advantages in line with national mental healthcare trends, NS can position itself as a bespoke well-being service, altering its current perception among commissioners as a pricey music therapy provider.
Key Areas and Trends
PRICING
Given the sustained dramatic rise in mental health rates among YP over the past 5 years, the lack of a price ceiling for well-being services, and the counties’ approach to pricing on a case-by-case basis, NS is well-positioned to charge a premium for its services
Between 2017 and 2023, the rate of probable disorder across the UK has more than doubled, with the exception of 8-10 year olds
GENDER AGE
Given that the majority of providers do not offer genderspecific care and mental health issues are rising at an alarming rate among female YP, NS is well-positioned to target this demographic
In 2023, the rate of Probable Disorder is higher among young women than young men (11-25), and significantly higher from 17-25
Given concerns over ”cliff-edge” care and rising rates of mental health disorders among 17-18 y/o’s as compared to all other ages, NS is well-positioned to target this segment of the market
In 2023 among 8-25 y/o’s in the UK, the rate of Unlikely to have a Disorder was lowest among 17 -19 y/o segment, with Probable Disorder rising from 2017-2023
SoundON ™
NEED
§ There is demand for a timely, effective, and reliable solution for the most difficult-to-engage clients
FINDINGS
§ NS has a proven track record of engaging the hardest-to-reach clients
§ NS is perceived as an effective "catalyst" for “the hardest,” “trickiest” clients to reengage with treatment
§ Local authorities tend to be more flexible in terms of pricing for the most complex cases
SOLUTION
§ A premium, tailored service targeting the hardest-to-reach / last-resort cases
§ The same core service already being offered, but one that guarantees fast response time, flexible delivery, real-time updates, and can be integrated with service from other solution providers
§ £2,300 (£115/hr.)
ELEMENTS
§ NS can leverage many of its core advantages to deliver this:
ü Fast response time: 3-days from the award to first session
ü Flexible delivery method: Digital or in-person; client home or outside of home. The method of delivery can be tailored according to the client’s needs
ü Transparent: Local authorities have access to the client’s progress through real-time updates. NS rolls out a warning system to alert caregivers and local authorities at the first data-driven sign of a well-being improvement reversal. NS implements a best-in-class disengagement follow-up protocol: Caregivers are phoned and emailed within 1-hr. of a missed session, with follow-up contact at set intervals, followed by a make-up session offer (with designated musician) to host a make-up session within 48-hr. notice
ü Integrated: By monitoring ongoing client progress, Noise Solution and Local Governments can plan subsequent actions for their clients by including additional service providers in the framework
IMPLEMENTATION
§ With the exception of a few transparency additions, this new service is NS’s existing offer and can be rolled out almost immediately
§ It offers NS the ability to charge premium prices for a truly premium service
SoundON ™: Market Potential
CURRENT DATA
ANALYSIS
Based on NS’s internal analysis, the percentage of the hardest-to-reach client is about 25% of all clients. Calculation as follows:
§ The percentage of non-completion is around 34%.
§ Of the 34% non-completion, 75.18% are potentially hardest-to-reach clients.
Refuse to participate 51.82%
No initial engagement 22.36%
MARKET POTENTIAL
§ The number of potentially hardest-to-reach client: 23,901 x 25% = 5,975 (NHS England, 2023)
§ Conservative ability to get market 1% x 5,975 = 59
REVENUE IMPACT
§ Annual Revenue Increase: £135,700
§ Total Annual Gross Profit Increase: £71,685
1. NHS England (2023). Mental Health Services Monthly Dashboard. Available at: https://app.powerbi.com/view?r=eyJrIjoiOTdjYzFiYTUtZmEwMi00ZTA2LTkxOGUtMDZ mMmZjMThiZGNhIiwidCI6IjM3YzM1NGIyLTg1YjAtNDdmNS1iMjIyLTA3YjQ4ZDc3NG VlMyJ9 (Accessed November 2023)
SoundSisters ™
NEED
§ Statistically, mental health issues for all genders are increasing over time. In 2022, 33% of young women in age 17-19 have probable mental health disorders, which is significantly higher than their male counterparts (18.7%)
FINDINGS
§ “Well-being impacts for young women are nearly twice as high as for young men.” (Costello Medical Consulting Ltd, 2019). However, currently only 30% of NS participants are women.
§ Of NS’s 21-musician pool, only 3 are female
SOLUTION
§ A musical 'Lean In' circle of 5 young women supporting each other in a safe space, run by women, for women
§ Delivered as an “add-on” service, build in 4 additional hours of workshop time into the existing NS solution (+ £200 per person (£50/hr.)
§ Group sessions have been discovered to be as effective, if not more, because of the solidarity experienced by a participant and peers. (Stephanie Pappas, 2023)
ELEMENTS
§ Hiring more female musicians
§ Provide training for female musicians in relation to basic music tech
§ Partnership with Women in Music organizations. (Saffron - Music Tech Initiative for Women, Omnii) to gain access to a wider hiring pool, and recruit female experts in music tech
IMPLEMENTATION
§ For successful implementation NS needs the following:
ü A higher % of female musicians in NS‘s current directory.
ü As part of the training already delivered to musicians - extra focus on challenges predominantly faced by women such as: gender-based violence & abuse, eating disorders.
ü Marketing to increase awareness
1.Costello Medical Consulting Ltd (2019). Social Return on Investment report 2019. Available at: https://issuu.com/noisesolutionuk/docs/sroi_report_final_july (Accessed November 2023)
2.Stephanie Pappas (2023) American Psychological Association. Available at: https://www.apa.org/monitor/2023/03/continuing-education-group-therapy (Accessed November 2023)
SoundSisters ™: Market Potential
Current NS Client Data
PROJECTED IMPACT
Assumption – Base Case
§ No new market expansion, focus on current counties.
§ A more balancing gender pattern for participants, 50%:50% for young women and young men.
ü 150 participants annually, currently approximately 45 participants are women, with the solution implementation assuming + 30 young women participants per annum.
§ 20hrs music mentoring + 4hrs online musical lean-in circle moderated by a female musician
§ Of the over 150 participants recorded so far, 60% are young male whereas only 30% are young women.
§ “Well-being impacts for young women are nearly twice as high as for young men.” (Noise Solution 2022 Impact Report)
ü Hourly cost of musical lean-in circle: £50 per person (50% off the cost of 1:1 music mentoring, given it is a group session)
ü Number of participants: 5 per circle
§ Annual Revenue Increase: £68,250 § 20-hrs. Music Mentoring Gross
£29,700 § 4-hrs Musical Lean-In Circle Gross
£5,028 § Total Annual Gross Profit
SoundBridge ™
NEED
§ Address the “cliff-edge” care problem YP face as they transition from children’s services to adult services within the healthcare and social care systems: period can be marked by a loss of established care relationships, longer waiting times, and a struggle to adjust to more adult-oriented mental health services.
FINDING(S)
§ Counties recognize the adverse impact this abrupt transition can have on YP with mental health issues, learning disabilities, or complex needs, and they are willing to fund a bridging solution as the YP adjusts to adult care
§ Pricing is particularly flexible at this stage, as children’s services are eager for their hard-won gains not to be erased in the transition
§ 17 y/o’s are particularly susceptible to mental health issues and also represent NS’s largest client segment by age, presenting a prime opportunity to facilitate their care transition process
§ Limited academic research linking benefits of podcast creation with mental health improvement, but safe space for creative expression can help teens feel less isolated and parents better understand their children's experiences
§ NS has a grant for group podcasting focused on LGBTIQA+ and has demonstrated similar efficacy as music solution; grant ending
SOLUTION
§ A 5-hr., digitally-delivered supplemental podcasting pilot (£600) designed to guard against the deterioration of a YP’s mental health and ensure well-being continuity as they transition care services
§ If the local authority and caregiver agree that the 5-hr. pilot program has been valuable, they can extend the service for an additional 15-hrs, SoundBridge Full Frequency ™ (£2,075)
ELEMENTS
§ NS can leverage many of its core advantages to bridge the cliff-edge:
ü A constant stream of data during a pivotal period
ü A platform that children’s and adult service caregivers can jointly access to monitor progress (if granted permission)
ü A creative, more flexible service that naturally compliments the more rigid, intense forms of adult care treatment
SoundBridge ™ - Ctd.
IMPLEMENTATION
§ This new service offers NS the opportunity to both extend current care (15% historical rate) and capture new business. To launch this new product, NS should pursue a two-pronged marketing campaign aimed at demonstrating technical podcasting expertise, as well as thought leadership in the cliff-edge care space
ü Technical Prowess: NS should host free podcast editing workshops in target counties, inviting commissioners, care givers, parents, and students. NS can utilize these workshops to expose target local authority decision makers to the intricacies and benefits of podcasting
ü NS should launch a 10-episode (20-min.) video podcast series entitled Beyond the Edge, providing a comprehensive look at the ”cliff edge” care problem via clinical, research, policy, and personal experience viewpoints
w/ Simon Glenister
beyond the edge
SoundBridge ™: Market Potential
PROFIT BREAKDOWN
SoundBridge ™delivered over 5-hrs. is 48% as profitable as the traditional music-based solution delivered over 20-hrs.
SoundBridge Full Frequency ™delivered over 15-hours achieves a 58% increase in profits over the traditional solution (assuming the hourly professional cost at £ 25 instead of £ 40.50 per musician).
PROJECTED
IMPACT SoundBridge ™
§ The number of 17 to 18: 6,500 (NHS England, 2023) § Conservative ability to get 1% of market (6,500) for SoundBridge ™= 65 § SoundBridge ™ Profits: £475 X 65 = £30,875
If delivered as a total package (20-hrs.) the SoundBridge Suite secures £ 2,037.5 in profits, a 106% increase in profits over the traditional offering.
1. NHS England (2023). Mental Health Services Monthly Dashboard. Available at: https://app.powerbi.com/view?r=eyJrIjoiOTdjYzFiYTUtZmEwMi00ZTA2LTkxOGUtMDZ mMmZjMThiZGNhIiwidCI6IjM3YzM1NGIyLTg1YjAtNDdmNS1iMjIyLTA3YjQ4ZDc3NG VlMyJ9 (Accessed November 2023)
Action Planning: Implementing the Recommendations
PRIORITY ORDER
§ SoundON ™
§ SoundSisters ™
§ SoundBridge ™
TARGET MARKETS
PROJECTED ANNUAL GROSS PROFITS
§ Assuming less than 1% market share among targeted demographic segments in key counties, NS can expect £152,913 in annual gross profits
§ SoundON ™ / SoundSisters ™: Given the pricing constraints of existing frameworks in: Cambridgeshire, Essex, Hertfordshire, Norfolk, and Suffolk, rollout the two new product lines as spot purchase options— supplemental offerings to the existing core solution. They have been designed as such to take advantage of NS’s current foothold in these counties. This new product line will also give NS a reason to re-engage with commissioners and operational managers. Hiring more female musicians is central to SoundSisters™’s success, so pursuing a partnership with a women in music organization should be prioritized before the solution is introduced.
§ SoundBridge ™: Use this solution to target counties in which NS does not enjoy a framework foothold or a geographical presence (Northamptonshire, Bedford, Buckinhamshire, Oxfordshire). As a digitally-delivered pilot solution, it is designed to allow NS to penetrate new markets on a trial basis, introducing commissioners to NS’s offering and allowing NS to gain attention as a thought leader in the cliff-edge space. This space also allows NS to target both children’s and adult care systems, expanding its reach.
RISKS / MITIGATION
§ NS could risk alienating county commissioners and operational managers if it increases its core pricing without re-packaging its offerings (e.g. NoiseOn ™) and demonstrating additional value
§ By developing a product line, NS can expand business in current and new markets and significantly increase profits without sacrificing quality or expanding in a non-sustainable manner.
Appendix: Questionnaire
County
&
Role Interview Findings
Troubled Families Coordinator - Suffolk County Council
Development & Commissioning Manager, Hertfordshire Country Council
Service Manager, Commissioning & Strategy, Northamptonshire Children's Trust
Price
• NS is expensive but has value in that it is effective with majority of the ‘hardest to deal’ cases.
• No such price ceiling – case-by-case evaluation of what YP needs.
Takeaway: Noise Solution should focus more of its data capture around the process of failures and present contingency plans for such scenarios, which are communicated to commissioners.
Price / Group v One-on-One
• Sees great value in online-digital solutions, however, acknowledges the unique benefit of one-to-one
• No such price ceiling – case-by-case evaluation of what YP needs
Takeaway: It’s more about them as a local authority, and their operational team getting to interact with NS to understand their offering more. Operational colleagues move towards using a provider they have used in the past.
Price
• Very price conscious and demands more transparency in terms of this Generalist v Specialists
• Sometimes for earlier intervention and prevention work – the generalist is more appropriate for that age cohort.
Delivery Preferences
• Very pro digital – accessibility issues particularly for YP with anxiety
Takeaway: Moving from children to adult services – there is a cliff edge. The transition into adult services is tough and makes the YP takes a step back. Timeliness and quick-to-respond services are highly preferrable
Alternative Provision and Inclusion
Deputy County Manager, Cambridgeshire County Council
• Price
• No such price ceiling – case-by-case evaluation of what YP needs
Takeaway: Largely see NS as a solution to allocate to children who are only interest in music, acknowledges that Head Teachers at secondary schools allocate Alternative Provisions on the basis of ‘word of mouth’.
*Note on Commissioning Methods: devolve funding to secondary schools who are the direct commissioners.
Overall:
Alternative provision care seems to be largely delivered on a case-by-case basis
Leaves the onus of maintaining the threshold of quality and safety of service providers with the commissioned social enterprises themselves.
SoundON ™: Market Potential Calculations
CURRENT DATA
ANALYSIS
Based on Noise Solution’s internal analysis, the percentage of the hardest-to-reach client is about 25% of all clients. Calculation as follows:
§ The percentage of non-completion is around 34%.
§ Of the 34% non-completion, 75.18% are potentially hardest-to-reach clients.
ü Refuse to participate 51.82% ü No initial engagement 22.36%
MARKET POTENTIAL
§ Number of people in contact of mental health services in the NS market: 140,830
§ Percentage of age 11 to 16 (the age bracket where NS is most effective): 17%
§ The number of 11 to 16: 23,901
§ The number of potentially hardest-to-reach client: 26,313 x 25% = 5,975
§ Conservative ability to get market 1% x 5,975 = 59
REVENUE IMPACT
§ Annual Revenue Increase: 59 x (£115 x 20 hours) = £135,700
§ SoundOn COGS: = 59 x (Musician + Studio) = 59 x (£810 + £275) = £64,015
•Total Annual Gross Profit Increase: £135,700 - £64,015 = £71,685
SoundSisters ™: Market Potential Calculations
Current NS Client Data
PROJECTED IMPACT
Assumption – Base Case
§ No new market expansion, focus on current counties.
§ A more balancing gender pattern for participants, 50%:50% for young women and young men.
ü 150 participants annually, currently approximately 45 participants are women, with the solution implementation assuming + 30 young women participants per annum.
§ 20hrs music mentoring + 4hrs online musical lean-in circle moderated by a female musician
§ Of the over 150 participants recorded so far, 60% are young male whereas only 30% are young women.
§ “Well-being impacts for young women are nearly twice as high as for young men.” (Noise Solution 2022 Impact Report)
§ Annual Revenue Increase: 30 x (£2,075 + £50 x 4) = £68,250
§ 20-hrs. Music Mentoring Gross Profit: 30 x (£2,075 - £1,085) = £29,700
§ 4-hrs Musical Lean-In Circle Gross Profit: (30 x £50 x 4) – (£40.5 x 4 x 6) = £5,028
ü Hourly cost of musical lean-in circle: £50 per person (50% off the cost of 1:1 music mentoring, given it is a group session)
ü Number of participants: 5 per circle
§ Total Annual Gross Profit Increase: £29,700 + £5,028 = £34,728
SoundBridge ™: Market Potential Calculations
PROJECTED IMPACT
SoundBridge ™
§ Number of people in contact of mental health services in the NS market: 154,780
§ Percentage of age 17 to 18: 4.2%
§ The number of 17 to 18: 6,500
§ Conservative ability to get 1% of market (6,500) for SoundBridge ™= 65
§ SoundBridge ™ Profits: £475 X 65 = £30,875
COST BREAKDOWN
SoundBridge™ 5-hr.
Hourly Billed Cost: £ 120 X 5 = £ 600
Professional Cost: £ 25 X 5 = (£ 125)
Studio Cost: £0
Total Profit: £ 600 – £ 125 = £ 475
SoundBridge ™delivered over 5hrs. is 48% as profitable as the traditional music-based solution delivered over 20-hrs.
SoundBridge Full Frequency ™
§ Conservative ability to extend 15% of SoundBridge ™ users based on historical extension rate: 10
§ SoundBridge Full Frequency ™ Profits: 10 x £1,562.50 = £15,625
Total Annual Gross Profits: £46, 500
SoundBridge Full Frequency™ 15-hr.
Hourly Billed Cost: £ 138.33 X 15 = £ 2,075
Professional Cost: £ 25 X 15 = (£ 375)
Studio Cost: £ 27.50 X 5 = (£ 137.50)
Total Profit: £ 2,075 – £512.50 = £ 1,562.50
SoundBridge Full Frequency ™delivered over 15-hours achieves a 58% increase in profits over the traditional solution (assuming the hourly professional cost at £ 25 instead of £ 40.50 per musician).
Traditional Music-Based Solution 20-hr. Hourly Billed Cost: £ 103.75 X 20 = £ 2,075
Musician Cost: £ 40.50 X 20 = (£ 810)
Studio Cost: £ 27.50 X 10 = (£ 275) Total Profit: £ 2,075 – £1,085 = £ 990
If delivered as a total package (20-hrs.) the SoundBridge Suite secures £ 2,037.5 in profits, a 106% increase in profits over the traditional offering.