SBC102 case

SBC Case Study

Mental health issues in Vietnam and the journey to create social business idea of Mentis Vietnam

Pham Nguyen Bao Chau, MENTIS Vietnam

Nguyen Ngoc Bao Han, MENTIS Vietnam

Cao Van Duy, MENTIS Vietnam

Nguyen Nhu Dong My, MENTIS Vietnam

Truong Gia Bao, MENTIS Vietnam

Van Ngoc Tuyen, MENTIS Vietnam

Quach Diem Phuc, MENTIS Vietnam

Huynh Hue Nhi Nhi, MENTIS Vietnam

Pham Ngoc Tan, MENTIS Vietnam

Vo Huu Tri, MENTIS Vietnam

Ta Lam Phuong Mai, MENTIS Vietnam

Dinh Nhat Trang, MENTIS Vietnam

Bui Le Anh Nguyen, MENTIS Vietnam

Nguyen Ngoc Minh, MENTIS Vietnam

Tran Xuan Linh, Coach of MENTIS Vietnam

1. Introduction

The MENTIS project aims to develop an app that builds a digital space that works with Metaverse technology to establish community centers or support groups through stress-relieving activities and mood monitoring. It also enables users to create an online diary to record their feelings, thoughts, and daily activities, which can help them quickly to identify and treat any psychological problems. In order to relieve tension and foster pleasant feelings, the app also offers entertainment elements, including a conversation with like-minded others, participating in online activities, and exploring the virtual environment.

MENTIS’s case study applies Business Model Canva to set up the business model. Based on his Ph.D. research on business model ontology, which was overseen by Yves Pigneur, Alexander Osterwalder first presented the nine “building blocks” of the business model design template that eventually became known as the Business Model Canvas in 2005[1].[2] The Value Proposition Canvas, the Culture Map, and other related tools have been created by the writers since Osterwalder’s book was published in 2008[3]; moreover, other canvases for specialized niches have also been created since then.

2. The desirability of the project

Customer Segments

Market Target Group

• Age: From 16 to 26 years olds

• Demographics: whose income increases gradually with age. Living areas are mainly in big cities with high cultural exchange (Hanoi, Ho Chi Minh City, Da Nang, Hai Phong,…)

• Behavior, lifestyle:

• Behavior & Attitude: Tend to not share about life pressure but look for entertainment from society.

• Communication: Social media (Facebook, Telegram, Zalo) or Network (friends, family).

• Motivator: Create a lively entertainment space for customers to release their emotions (workshop); Diversify the features to suit the trend of social needs.

• Income: average income above 200 USD/month

Social Target Group

• Low & Middle-Income groups in Vietnam.

• The 5 main affected groups in Vietnam include young people, women, ethnic minorities, people with disabilities, and the LGBTQ+ community.

Channels

• Online: MENTIS app & MENTIS Social platform (Facebook, website)

• Offline: Art therapy workshops with art-related activities, varying according to the customers’ needs and topics, and speeches from guest speakers. Workshops offer training, advice, and top-up solutions for mental health problems, and Q&A with guest speakers for more experiences.

 Customer Relationships

• Social advocacy (mainly from the young)

• Building up Community Builder Groups to create a strong brand image and engage new users.

• POSM (Mental health clinic, Psychiatric hospital, Yoga and Meditation Center, and offline workshops)

• Marketing through user experience 

• Content Marketing Strategy & Social Media Marketing Strategy

• Digital customer services to interact with customers, sell and receive feedback.

• Gmail/SMS messages

• Application notification

Value Propositions

Comprehensive and stigma-free services to release emotional backlog by:

• encouraging journaling

• providing a Metaverse where users can discover themselves

• providing reputable psychological services

 

“Comprehensive and stigma-free services to improve the young generations’ mental well-being for a quality life.” 

Market Target Group

“To provide evidence-based therapy and support by providing online and offline platforms for those with mental health difficulties to enhance the willingness for expressing feelings.” 

Social Target Group

“To envision a society where mental health is a priority and shift the culture towards recognizing mental health as crucial for overall health so that everyone can access mental health care.”

We used research techniques to interview 23 consumers. To learn more about user behavior, two psychology professionals were also interviewed. The results show that both groups occasionally struggled to maintain a balance between their personal and work life and experienced similar levels of stress. As a result, we created two distinct personas to represent the social target group and the market target group.

 

PERSONA 1 (Market Target Group)

PERSONA 2 (Social Target Group)

3. The feasibility of the project

Our key activities, partners, and resources are interdependent, driving MENTIS’ value creation, leveraging external expertise, and gaining competitive advantages in the market. Therefore, we have defined 4 main key activities:

• Mental therapy through building the MENTIS app

• Offline workshops & voluntary tours to connect and educate

• Communication activities (social platform) to share mental health topics/knowledge

• Finance-related activities

To successfully implement these activities, we also need internal and external support from our key resources and key partners.

 

About our key resources:

MENTIS is consulted and supported by Coach and Psychologists who are experienced experts with prestigious achievements.

 

Board of Management

MENTIS’s Board of Management aims at advancing long-term goals, boosting social impact, and fostering an inclusive working culture that values equality and diversity. 

 

Senior Management

Senior management assists the Board in overseeing department operations, managing administrative duties, and implementing the strategic plan.

 

Execution Associate

Execution Associates, our vibrant team members, actively participate in business strategy by carrying out comprehensive tasks and offering inventive contributions.

 

About our key partners:

MENTIS has defined 4 main key stakeholders group who consistently supported our project

 

MENTIS has created a sustainable relationship with partners through crowdfunding and crowdsourcing.

Total money from offline/ online endorsement and crowdfunding:

58.730.000

 

Direct approach:

• Online endorsement: 128 signatures

• Offline endorsement: 116 signatures

 

Besides, we have categorized these backer contributions and also quantified their non-cash contributions.

55.290.000 is the total value of non-cash contributions received by MENTIS from current stakeholder groups.

Thanks to these valuable contributions, MENTIS has successfully established an Art Therapy Workshop and is currently in the process of building the MENTIS app, which will integrate with the Metaverse.

In the future, MENTIS plans to continue organizing workshops and voluntary tours, as well as completing the product prototype.

 

4. The viability of the project

Revenue Streams

Mentis’ revenue comes from 5 main sources. The sale volume is forecasted based on the estimation of the penetration rate, conversion rate, and churn rate. (More detail in this Excel sheet)

• Premium subscription

• 1-on-1 online therapy, Workshop ticket

• In-app advertising for partners

• Affiliate marketing       

• Investment from investors

 

Premium subscriptions, online therapy, and affiliate marketing are the most significant contributors to Mentis revenue. App development/maintenance and marketing expenses occupy the majority of Mentis’s cost structure.

 

Cost structures

MENTIS has 4 main cost structures:

• Application development & maintenance

• Marketing expense

• Payment for psychologists

• Workshop operating expense

 

Profitability Forcast

We desire to have the Break-even point within 3 years and 6 months with:

• Internal return ratio: 27,08%

• Net present value: $326.199

 

5. Conclusion

In conclusion, Mentis has successfully applied the Business Model Canvas to develop a suitable business model for the project. Through this process, we have gained a deep understanding of our target customers, the value we bring to them, the resources we need, and how we capture value for ourselves.

 

We have identified our target customers as young individuals who have access to and knowledge of technology but may lack awareness of the importance of mental health and emotional release. We offer them a platform where they can find emotional release, entertainment, engagement, social connection, and alignment with social trends. Our key partners, including psychiatrists, psychologists, mental health service providers, content creators, app developers, and community groups, play a crucial role in providing value-added content, technical expertise, and community support.

 

Through a combination of crowdfunding, sourcing campaigns, and non-cash contributions, we have received significant support from our stakeholders, enabling us to develop workshops, build the Mentis app with integrated Metaverse, and plan for future initiatives such as voluntary tours and completing the product prototype. However, we have also identified potential risks, including limited organizational capacity, funding constraints, technological infrastructure failure, content quality and accuracy, and lack of user adoption. To mitigate these risks, we are focusing on enhancing our organizational resources, attracting additional investment, ensuring technological stability, maintaining high-quality content, and implementing user adoption strategies.

 

Overall, applying the Business Model Canvas has been instrumental in shaping Mentis’s business model, allowing us to align our value proposition with the needs of our target customers, establish strategic partnerships, and address potential risks. We are confident that this business model will enable us to deliver meaningful mental health solutions and create a positive impact in the community.

 

 

References

1. Osterwalder, Alexander (2005). “What is a business model?”. business-model-design.blogspot.com. Archived from the original on 2006-12-13.

2. Osterwalder, Alexander (2004). The Business Model Ontology: A Proposition In A Design Science Approach (PDF) (Ph.D. thesis). Lausanne: University of Lausanne. OCLC 717647749. See also: Osterwalder, Alexander; Pigneur, Yves; Tucci, Christopher L. (2005). “Clarifying business models: origins, present, and future of the concept”. Communications of the Association for Information Systems. 16 (1): 1. doi:10.17705/1CAIS.01601.

3. Osterwalder, Alexander (2008). “What is a business model?”. business-model-design.blogspot.com.