Client Goal
Validate core revenue plan assumptions for an innovative medical food product before continuing significant capital investment tied to retail launch.

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Decision at Stake

Should the company continue investing behind the planned retail launch, or redirect capital if repeat-purchase behavior proved too weak?

 

Background
While helping shape the operating plan in a private equity-backed context, The AND Group identified a critical risk in the revenue model: repeat purchase at the planned price point appeared less likely than assumed. Early signals suggested that even if the product worked, most sufferers would not adopt it for daily use unless it replaced or meaningfully reduced use of an existing treatment.

 

What We Did
We designed and executed a six-month e-commerce proof of concept that included direct-response marketing, sales tracking, reporting, and follow-on consumer research to test whether stated purchase intent would translate into actual repeat behavior.

 

What Changed
The work confirmed that the repeat-purchase assumptions underlying the revenue plan were not strong enough to justify continued investment at the intended level. As a result, investors were able to avoid larger losses and redirect capital toward other IP opportunities with greater potential.