Assignment 24A: Venture Concept No. 1

The LB Food Allergy/Sensitivity Test

Opportunity

            About 15 million people have food allergies/sensitivities. Of these 15 million, 5.9 million are children under the age of 18. These issues are becoming more prominent in today’s world and cause many different reactions.  

            With that being said, my target market would be children aged 6 to college aged adults. The people of these age groups would be beginning to display symptoms of food allergies or sensitivities as their bodies are still developing and changing. The need is becoming more and more important as more people are discovering that they have difficulties digesting or consuming certain foods. The effects of food allergies can be incredibly severe (anaphylaxis) or milder as they are with food sensitivities (stomach aches, discomfort).

            The market is not necessarily defined geographically or demographically as the problem I am trying to provide aid to is more of a biological problem. Anyone can develop issues with certain food at any time. What is important is that people can learn about possible food allergies or sensitivities so that they can react early and not face serious consequences.

            Currently customers are learning about food allergies and sensitivities through trips to the gastroenterologist or through take home food allergy tests. The gastroenterologist and take-home food panel tests test for allergies or sensitivities against about 50-100 different types of foods. This may seem fairly easy, however, many people have to “jump through hoops” to come to this conclusion. A lot of money can be wasted going from doctor to doctor, unless an obvious food allergy symptom is displayed. Also, there may be a lack of understanding with the consumer when it comes to using a take home test.

            There is a fairly big window of opportunity, as the statistics of food allergies and sensitivities are huge and have no indication of slowing down. The window of opportunity will be open as long as there are food allergies and sensitivities or until information becomes more prominent (that people do not have to go through the run around to get information about it or diagnosed properly).

Innovation

            My idea would make diagnosing or simply gaining information about food allergies easier. My idea is a combination of a product and a service. The product itself would be a simple food allergy test. It would only test against the most common food allergens (gluten, soy, peanuts, tree nuts, milk, shellfish, and seafood). These are the foods which usually cause the most severe reactions in people. Using this simple food allergy test would allow parents to become more aware of possible health issues their child could have and enable them to be more prepared in the case of a food allergy emergency.

            The service aspect would be partnering with doctors. Ideally, I would like my tests to be similar to how a doctor handles some of the optional shots. The doctor or pediatrician, in the case of a child, would tell the young adult or parents of the child that food allergies and sensitivities usually begin to pop up in the early years of life. They would describe this basic food allergy test and present it as an optional choice, in case young adult parents would want to learn more or see if there is anything food related issue. The main idea is prevention and having information known so severe reactions can be limited or (in the best, but unlikely case) eliminated.

            I would like the food allergy test to be on the cheaper side, maybe $25-$50. Other food allergy tests can be in the hundreds or thousands of dollars. If more testing is warranted, then the consumer will be able to reach out to a recommended gastroenterologist and take their preferred food allergy test.

Venture Concept

            Customers would want to use my product because it allows for an easier flow of information. There can be confusion when using my competition, a take-home food test, or it can take a while for a customer to seek out the help of a gastroenterologist. The hardest part would be getting the doctor to approve my test and recommend it to their patients (switching to my food allergy test).

            The key players for my idea would be customer support and price points. Many people face a confusion and frustration when first discovering that they have a food allergy; they go to many doctors or hospitals and it can be one of the last issues doctors suspect. Having doctors explain food allergies early and having a basic food allergy test available early can ease people into an easier food allergy transition. With regard to price, my test is significantly less expensive, and people will not feel like they wasted tons of cash if no allergy or sensitivity is discovered.

            My business would require many people for the research and development phase. I want my tests to be very accurate, so I would imagine a team of about 15-20 people. My distributors and marketers would be the doctors themselves as it is their recommendation that will allow my product to flourish.

Minor Elements

            Secret Sauce: My most important resource will be the relationships between doctors and gastroenterologists. People trust their doctors and I would need this credibility in order for people to use this product. I know some doctors and gastroenterologists, so this should help create an advantage for me.

            What’s Next: I think the next step for my opportunity would be to create “booster” food allergy tests. These tests could look specifically at certain food groups. For example, if a parent in a family was very allergic to mangos maybe the parents would want to know if their child had any fruit allergies/sensitivities.

            Next For Me: After about 5 years, I would want to put this idea in more capable hands than my own (maybe a doctor or other professional in the health field). I do not see myself as a long-term entrepreneur and I would like to have my own job working for a well-established company.