Strategy and Implementation Summary
Sunapto will pursue specific, definable, market segments with a multi-tiered, multi-channel approach. Marketing will follow from broad awareness campaigns to specific target customer campaigns. Sunapto will sell directly to customers directed to them from their marketing campaigns.
5.1 Value Proposition
Sunapto’s value proposition is quite different from others. The MedCabinet is the only product that will allow for prescription dosage and timing to avoid common compliance problems prevalent in the primary target market. The companion services for the MedCabinet offer third parties (e.g. healthcare providers, caregivers and/or family members) secure access to vital information to help ensure proper medication compliance.
5.2 Marketing Strategy
Marketing will follow from industry/trade, and physician/pharmacist awareness campaigns to specific executions directed at specific customer segments. Once the product has gained acceptance by individuals and care providers, Sunapto will initiate the second phase of their marketing strategy. Stage 2 will comprise three steps.
- Cast wider sales net over healthcare providers.
- Begin advertising campaign focusing on the elderly.
- Facilitate and rely on a strong word-of-mouth campaign.
5.2.1 Distribution Strategy
MedCabinet production will be outsourced to a contract manufacturer. Once an order is placed with Sunapto, their order-taking system will automatically notify the production company regarding shipping details. Software using Internet technology will provide an efficient mechanism for streamlining the ordering, production and delivery process.
Their product will initially be shipped directly from the contract manufacturer at the customer’s expense. The MedCabinet manufacturer will include receipts, instructions and other Sunapto literature.
Once the MedCabinet requires distribution to a wider array of buyers, Sunapto will consider a separate distribution center(s) to handle additional demand.
5.2.2 Marketing Programs
Specific marketing programs for Sunapto and the MedCabinet remain to be developed.
5.2.3 Pricing Strategy
Sunapto plans to price the MedCabinet at $700 in order to encourage both medically insured as well as non-insured consumers to buy the product. It is their intention to lobby insurance providers to help cover some or all of the cost of the MedCabinet.
The MedCabinet Monitor and Notification Service is priced at $19.95 per month.
5.2.4 Promotion Strategy
Public relations and industry media will help in Sunapto’s over-all industry awareness plans. Feature articles and product reviews will help launch awareness. Direct mail to buying and influencing groups and ads in trade and consumer target publications will help with buyer impressions.
Sunapto will work closely with physicians and home nursing professionals to design its product and services. The importance of working with physicians is well known. As an outgrowth of their Physician, Pharmacist and Home Nursing Advisory Board, Sunapto will actively recruit physicians, pharmacists and home nursing professionals with sponsored events and seminars.
5.3 Competitive Edge
Sunapto has a competitive edge in three areas: technology, marketing/distribution and their management team and advisory boards.
Technology: The MedCabinet will employ technology to enhance as much of the medication process as possible. This will reduce the amount of human error in using the product. The more user-friendly the product is, the more likely the user will maintain the proper medication practices and thus avoid the need to see the doctor due to drug non-compliance.
Marketing and distribution: Sunapto believes that it is essential for the target market to be exposed to the product via live demonstrations, doctor office visits or a friend in order to remove the possible apprehension of technology. In order to get this desired exposure; they need to get a large number of MedCabinets out in the market quickly, which means that the pricing needs to be reasonable. Once the product has become established, Sunapto would look to find a retail sales partner that would create even greater exposure and distribution of their product.
Management team/Advisory boards: Sunapto’s management team and advisory boards bring a variety of skills and experiences to the table. Their Physician, Pharmacist and Home Nursing Advisory Board consisting of individuals experienced in the areas of healthcare, medical devices and elder care will help guide Sunapto to meet the growing and diverse needs of the home healthcare marketplace. Sunapto’s Business Advisory Board will support, mentor and enhance Sunapto’s management team. Please refer to section 7.2 for the management team listing.
5.4 Positioning Statement
For the person, or caregiver of a person, who is on a medication plan, the MedCabinet helps avoid many of the pitfalls associated with medication non-compliance by providing the right medication at the right time.
5.5 Sales Strategy
Sunapto’s initial strategy is to sell the MedCabinet directly to consumers. Once sales have reached a respectable level, Sunapto will begin discussions with retail sales outlets to stock and sell their product(s).
5.5.1 Sales Forecast
No sales are anticipated throughout Year 1 of operations, as the MedCabinet is developed. The first sales are expected to begin in Year 2. The annual sales forecast for Year 2 is 11,077 MedCabinet units with 7% of the sold units purchasing the companion services. For Year 3, the expected sales forecast is 13,419 units, again with 7% of the sold units purchasing the companion services. It is anticipated that at the end of Year 3, Sunapto will have 1,716 subscribers to the MedCabinet companion services. The estimates presented in this section were derived using a conservative statistical methodology for estimated market penetration for a medical product of this type. For additional details reference section 4.2.4 Market Concept Test.
|Year 1||Year 2||Year 3|
|MedCabinet Monitor & Notification Service||0||776||940|
|MedCabinet M&N Service Renewal||0||0||776|
|Total Unit Sales||0||11,853||15,135|
|Unit Prices||Year 1||Year 2||Year 3|
|MedCabinet Monitor & Notification Service||$0.00||$301.06||$301.06|
|MedCabinet M&N Service Renewal||$0.00||$239.40||$239.40|
|MedCabinet Monitor & Notification Service||$0||$233,623||$282,997|
|MedCabinet M&N Service Renewal||$0||$0||$185,774|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|MedCabinet Monitor & Notification Service||$0.00||$30.14||$30.14|
|MedCabinet M&N Service Renewal||$0.00||$24.00||$24.00|
|Direct Cost of Sales|
|MedCabinet Monitor & Notification Service||$0||$23,386||$28,328|
|MedCabinet M&N Service Renewal||$0||$0||$18,624|
|Subtotal Direct Cost of Sales||$0||$4,675,726||$5,682,932|
5.5.2 Sales Programs
Direct sales will be by personal contact, direct mail, public relations and media directed at key industry and customer segments. In addition, electronic marketing will be deployed whenever it fits with the buying or influencing patterns of a key group. A website and electronic commerce site will be utilized to cultivate direct sales to key industry groups and end consumers.
5.6 Strategic Alliances
Sunapto will depend upon strategic alliances in the following areas.
- Contract sales organization to position and sell their product in the national healthcare market.
- Contract design and manufacturer to develop and consistently deliver a quality product.
- Website developer and host to provide continuous access to Sunapto’s current and potential customers.