Before making the decision to launch, the Business Case will generally enable a marketer to:

 

Quantify Economic Benefits
 

This step involves analysing the direct and indirect financial advantages of the project, including revenue generation potential (additional sales), cost savings (through operational efficiencies, reduced waste, or automation), and market share growth. Economic benefits are determined through market research, financial modelling, comparative benchmarking, and an analysis of market trends.  Financial improvements should be tied to measurable outcomes with relevance to the business, such as reduced cycle times, better quality, reduced waste, higher customer retention rates / lower churn.
Purpose: Provides stakeholders with clear, data-driven insights into the tangible value the project could generate, ensuring alignment with the company’s financial goals.

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Determine Optimal Pricing or Pricing Ranges with Sales Volumes

Optimal pricing is calculated by assessing production costs, consumer willingness to pay, competitor pricing, and perceived value. Surveys of consumers and potential customers, historical sales data for similar products and services, and, where possible/relevant, distributor interviews and retailer interviews are all used as guidance.   Optionally, these inputs can also be used as inputs into a robust demand model (explained below) which enables the brand owner to consider different scenarios to identify acceptable price ranges and corresponding sales volumes.
Purpose: Enables the company to set prices that maximize revenue while maintaining competitiveness, trial interest and repeat usage.

Forecast Consumer Demand

The top cause of failure for a service or product innovation (even one that has passed the Feasibility Study hurdle) is over-estimating end-user demand.   Demand forecasting reduces the risk of inflated sales projections and missed financial targets by evaluating the target audience’s potential interest and purchasing behaviour for the product or service.  Based on an assumed set of product features, different combinations of distribution, price and marketing investment are explored through multivariate modelling.  Competitor sales can also be modelled, enabling projections to be validated through industry comparisons. The modelling often uses sales data from Circana, Kantar or Nielsen (dependent on the market) or other inputs such as tracking data, if scanner data is unavailable.  The modeling goes beyond the SKU, price and store penetration limitations of 3rd party datasets to include consumer reaction to offerings that may still be in development. or which have a brand positioning in 'white space' not currently occupied by incumbents. The resulting sales forecasts remove much of the guesswork in pre-launch budgeting and can be used to stress-test an organization’s readiness in areas such as new product development, production, distribution, marketing and sales.  
Purpose: Helps the company anticipate market performance, align production or service capacity, and optimize inventory or resource allocation.

Assess Financial Justification

This involves evaluating the financial viability of the project by weighing projected revenues against costs, break-even analysis, and long-term profitability. Sensitivity analysis would offer best-case, worst-case, and most-likely financial outcomes to test how well the initiative performs under various conditions and enable decisions to be risk-adjusted. Where the organization has multiple project options available to it, the Financial Assessment facilitates comparison between projects so as to select those that are likely to deliver best value to the company.  It therefore provides essential financial evidence to secure approval from top management and investors and builds trust by quantifying expectations and aligning them with measurable outcomes.
Purpose: The Financial Assessment ensures that resources are allocated to projects that offer a strong financial case, reducing the likelihood of costly missteps. 

Identify Project Costs

A detailed breakdown of foreseeable direct and indirect costs, including development, production, marketing, media, communications, rents, labor, legal, distribution, and operational expenses. This step usually includes multiple cost scenarios for differing scales of deployment or approaches to the project.
Purpose: Helps the company budget effectively and avoid unexpected financial burdens, providing a clear view of the investment required.

Calculate Return on Investment (ROI) for various scenarios

ROI calculations consider projected revenues, costs, and timelines to determine the expected profitability of the project. Variants such as discounted cash flow (DCF) analysis or payback periods may also be used.
Purpose: Gives stakeholders a clear metric to evaluate the project’s financial attractiveness and prioritize opportunities with the highest potential return.

Identify Risks and Possible Mitigations

This involves identifying internal and external risks, such as market volatility, regulatory challenges, and operational constraints. Mitigation strategies, including contingency plans, are developed to address these risks.  Strategic risks may arise from misalignment with business goals or shifts in the market. Financial risks can include budget overruns, insufficient returns on investment, currency volatility, or unexpected costs. Operational risks often stem from resource constraints, process inefficiencies, or technology failures. Compliance risks may involve domestic or overseas regulatory uncertainties, changes to OMAR (Overseas Market Access Regulations) or legal challenges.  Geopolitical risks may manifest as increased tariffs, sanctions, supply chain disruptions due to conflict or tension and, in extreme cases, expropriation or nationalization.  Reputational risk may be a concern when a brand is associated with a politically sensitive product, sector or entity.  This can negatively impact brand equity, customer trust, and potentially its sales.  Risks are evaluated in terms of likelihood and impact and categorized by their level of severity, such as minor, moderate, or critical.  The Business Case will offer mitigation strategies to manage the identified risks. Preventive actions, such as robust planning and staff training, can help reduce the likelihood of risks occurring. Contingency plans outline predefined responses if a risk materializes, such as securing alternative suppliers or allocating budget buffers. Additionally, assigning specific individuals as risk owners ensures accountability for managing and addressing specific risks throughout the project lifecycle.
Purpose: Addressing risks enhances credibility and builds stakeholder confidence by demonstrating that thorough planning and due diligence have been undertaken. By identifying potential problems prior to launching an initiative, the Business Case allows time for proactive problem-solving, which reduces the need for reactive crisis management during the project. It enables the organization to prepare for allocation of resources, ensuring that time, money, and efforts are directed toward preventing or mitigating the most significant risks. Finally, a well-articulated risk management plan increases the likelihood of project approval, as decision-makers are more inclined to support initiatives that show preparedness for uncertainty.

 

Recommend a Preferred Solution

This part of the business case process begins by clearly outlining/confirming the goals of the project and establishing evaluation criteria, such as cost, feasibility, alignment with strategic goals, revenue, market share, ROI, timeline, and risk tolerance. Multiple potential solutions or approaches will already have been developed, each addressing the project’s goals. These may range from variations in scope or scale to entirely different strategies.  Each option is evaluated against the predefined criteria using qualitative and quantitative methods. Tools such as cost-benefit analysis, SWOT analysis, and risk assessments may be employed to identify strengths, weaknesses, opportunities, and threats associated with each solution.  Stakeholders are consulted to ensure that all perspectives and concerns are addressed. This collaborative step ensures alignment with organizational priorities and consensus on the decision-making framework.
Purpose: A preferred solution offers a clear path forward, eliminating ambiguity and helping stakeholders understand the proposed direction. By presenting a structured evaluation process, stakeholders are assured that the chosen solution is data-driven, thoroughly analysed, and optimized for success. Identifying the preferred solution ensures that time, budget, and effort are allocated to the most promising course of action, reducing waste and increasing efficiency.  A well-justified solution typically includes a consideration of potential risks and corresponding mitigation strategies, giving stakeholders confidence in the project’s robustness.  Ensuring the solution aligns with organizational goals and objectives enhances the likelihood of achieving long-term success and adds credibility to the business case.

Estimate a Phased Timeline for Deployment and Completion

A phased timeline is created, detailing key milestones, deliverables, and deadlines. It incorporates resource availability, dependencies, and any constraints that might impact the schedule.
Benefit: Helps the company manage expectations, allocate resources efficiently, and monitor progress against a clear roadmap.

Suggest a Preliminary Project Organization

A preliminary project organization structure outlines the key individuals and teams that would be involved if the project goes ahead. This includes project sponsors, managers, team leads, and external partners. Each role is assigned specific responsibilities to ensure accountability and clear communication. A governance model is proposed to provide oversight, decision-making authority, and escalation pathways. This may include a steering committee or review board to ensure the project aligns with organizational goals.  The Business Case outlines the human, financial, and technological resources required for project execution. Preliminary identification of skill sets, staffing needs, and equipment ensures early-stage resource planning.  An initial plan for communication is developed, detailing how information will flow between stakeholders, team members, and leadership. This includes frequency, format, and channels for updates, reporting, and feedback.  Key milestones and deliverables are identified to provide a high-level view of the project timeline and dependencies. As the project is still pre-launch, this step ensures early visibility of critical phases and a useful starting point for detailed schedules that would come later.  A preliminary strategy is proposed for monitoring and addressing risks related to organization and resource coordination, ensuring that contingencies are in place for potential disruptions.
Purpose:  The preliminary project organization shows stakeholders that the business case is not only theoretical but backed by a realistic framework for execution.  Stakeholders gain confidence knowing that roles, responsibilities, and governance structures are already under consideration, reducing uncertainty about how the project will be managed.  By addressing who will be involved and how the project will be coordinated, the business case fosters support and engagement from key personnel and decision-makers.  Having an organizational framework in place ensures a smooth transition from approval to implementation, minimizing delays in mobilizing resources and teams.  A well-organized approach highlights potential challenges related to coordination and resource allocation, enabling early mitigation efforts. Even at a preliminary stage, addressing project organization sets the foundation for structured execution, ensuring that once the project is approved, the team is prepared to proceed effectively and efficiently.
 

Summary

By evaluating a new product launch strategy in a structured and data-driven manner, the Business Case serves as a vital tool for informed decision-making, ensuring that proposed initiatives fully leverage brand strength, align with the company’s strategic goals and deliver measurable value. Along with a technically-driven Feasibility Study, the Business Case assembles the information necessary for management and stakeholders to confidently approve or decline a project based on its expected value and benefits.