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Capstone project for The Business of Product

Should Mangrove launch Mangrove Plus?

The app team wants to launch Mangrove Plus, a monthly subscription for free 30-minute "Now" delivery, and the managing director wants your recommendation in two weeks. Work from the course's numbers: about 60,000 app orders a day, an average basket of about $18, a $1.50 delivery fee, a rider cost of about $3.60 per order, a 22% goods margin, 2% payment fees, and a contribution margin of about $1.07 on a repeat order without a discount. Model the contribution per order with and without Plus, and the result per member for the heavy users who will join first. Set a price and one or two tiers with clear fences, such as a basket threshold or an annual plan. Estimate how order frequency, basket size and dinner-peak rider demand would change, and say where those estimates come from. Build a three-year business case with ROI, payback and NPV at 12% a year in low, base and high cases, including the build, marketing to members and any extra rider shifts. Finish with a five-slide recommendation that names the one assumption that would flip your answer and proposes how to test it before a full launch.

What you hand in

  1. A unit economics sheet: contribution per order today, per order for a Plus member, and per member per month with and without the change in behaviour you expect
  2. A pricing proposal: value to the customer, the price corridor, one or two packages with fences, and a test plan with grandfathering
  3. An estimate of how members' order frequency, basket size and dinner-peak rider demand change, with sources or stated assumptions
  4. A three-year business case: costs and benefits by month or year, ROI, payback and NPV in low, base and high cases, a sensitivity chart and the switching value of the key assumption
  5. A five-slide, answer-first recommendation with a staged launch and a measured gate

Check your work

Tick each item when your project meets it. Be strict: this is the rubric the reviewer uses.

  • Contribution margin uses every variable cost (goods, rider, packaging, payment fees, discounts) and is split by at least one segment
  • Member economics model the heavy users who will actually join, compared with their own behaviour before joining
  • The price sits inside a stated corridor, and each package has a fence that keeps customers on the right tier
  • Changes in frequency, basket and peak rider demand are estimated with a source or a clearly labelled assumption
  • The business case shows payback, ROI and NPV at a stated rate over a stated horizon, in low, base and high cases
  • Benefits are split into hard and soft, and only committed savings count as cash
  • The recommendation names one assumption that would flip the answer, with its switching value, and a staged test to check it
  • The slides answer the managing director's questions in order: the ask, the money, what if we're wrong, the alternatives and who owns the result

0 of 8 checked

Model answer

The model answer opens once your capstone passes the review, so you can compare your work with an outline of a strong submission.

Hand in your capstone

Your links are checked automatically, then the work is scored against the rubric above, item by item, with comments. A pass counts toward the course certificate and shows on your profile.

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