Post on 15-Aug-2015
MAXsorb
Business Case
Presented by: Kimberly WilliamsDate: April 27, 2011
What is MAXsorb?MaxSorb is a medical gauze that is well suited fora wide variety of applications including:
Wound dressing
General cleaning
Minor prepping
Bandaging
Stuffing deep wounds
MAXsorb Product Specifications
7.5 x 7.5 cmSterile
7.5 x 7.5 cmNon- Sterile
100%Cotton yarnYarn Count: 40's24X20meshBP standardWidth: 7.5cm flexibleLength: 7.5cm flexibleLayer: 8 ply2pcs individually packed in paper pouch or paper-plastic pouchSterile: ETO,Gmma radiation
100% Cotton yarnYarn Count: 40's24X20meshBP standardWidth: 7.5cm flexibleLength: 7.5cm flexibleLayer:8plyColor: White/ green100pcs/paper pack
Product Characteristics/Selling Points
Product Design
Private Labeling
Chain medical will give Intermed the rights to private label and distribute MAXsorb.
Factors to be considered:•Chain Medical’s supply ability
Market Approach
MAXsorb’s Profitability
Cost Drivers $
Potential Target Markets
Local Market
T&C
USVI
BAH
BER
BEL
CUB
HAI
DRP
PRC
JAM
TT
BB
GND
SVG
SLU
MAR
DOM
GUA
ANT
SKN
SMX
BVI
GUY
ABC
SME
International Markets
Local Spil Analysis (2008-2010) Cash Cows/Stars
Customer 2008 2009 2010 Total Sales
Tandarts Jesserun
98 98
BOG 104 104
HG Gaascompres 5 x 5cm Non -Sterile
Customer 2008 2009 2010 Total Sales
Fatima Oord
85 100 78 263
RGD 327 270 160 757
HG Gaascompres 10 x 10 Non-Sterile
Local Spil Analysis (2008-2010) Cash Cows/Stars
Customer 2008 2009 2010 Total Sales
BOG 165 165
Sint Vincentius
130 140 181 451
HG Gaascompres 10 x 20 cm Non -Sterile
Methodology
No. of Months
Entity No. of Beds
No. of Cartons
No. of Inner Boxes(10 boxes per carton)
No. of Packs(150 units per inner box)
Packs Per bed/ Per month
Per bed/ Per annum
1 Hospital 550 50 500 75,000 136.37 1636.32
SAMPLE 1 - University of the West Indies Hospital, Jamaica
No. of Months
Entity No. of Beds
No. of Cartons
No. of Inner boxes(10 boxes per carton)
No. of Packs(150 units per box)
Packs Per bed/ per month
Per bed/ annum
1 Hospital 465 42 420 63,000 135.49 1625.88
SAMPLE 2 – Academic Hospital, Suriname
Research findings revealed that the general consumption of gauze swabs per hospital per 100 beds is 135 packs per month/1,620 packs per annum, throughout the Caribbean region.
No. of Months
Entity No. of Beds
No. of Cartons
No. of Inner Boxes(10 boxes per carton)
No. of Packs(150 units per box)
Packs Per bed/ Per Month
Per bed/ annum
1 Hospital 100 9 90 13,500 135 1620
Per 100 beds
Findings
Findings (Continued)
Hospitals Qty. Size Type Usage Period
Brands
St. Vincentius
200 boxes 10 x 10 cm
Sterile 2 -3 months
Bastos Viegas
100 boxes 10 x 10 cm
Non-Sterile
2 -3 months
Bastos Viegas
60 boxes 30 x 30 cm
2 -3 months
Bastos Viegas
40 boxes 40 x 40 cm
2 -3 months
Bastos Viegas
1 5 boxes 10 x 20 cm
Sterile 1 month Klinion
Findings (Continued)Hospitals Qty. Size Type Usage
PeriodBrands
St. Land’s 4 10 x 10 cm
N/A 1 month
Hartmann
2 20 x 25 cm
N/A 1 month
Hartmann
Potential Market- SurinameWith an estimate of 1,050 beds the general assumption level of consumption of gauze within Suriname is:
Consumption Level 14,250,000 pcs/ 142,500 pks/950 boxes/ 95
cartons
Non Sterile 75% 10,687,500 pcs/106,875.00 pks/713
boxes/72 cartons
Sterile 25% 3,562,500 pcs/35,625 pks/238
boxes/23 cartons
ICL’s selling price to Intermed $174.00 x 72 = $12,528.00USD per carton
ICL’s selling price to Intermed $189.60 x 23 = $ 4,360.80USD per carton
Total Market Value (monthly) USD $16,888.80
Non Sterile
Sterile
Hospital & Misc.T/O PlanSeptember October November December
Gain 20% market share
Gain 30% market share
Gain 45% market share
Gain 50% market share
$4,100.00 $6,150.00 $9,225.00 $10,225.00
Total Market Value per month $20,500.00 USD
ICL - Caribbean MarketCIA World Factbook- 2.24 hospital beds per 1,000
people
Total hospital beds in the Caribbean - 85,000 (Total Population - 38,000,000)
Market per bed- 1620 per annum
Total Market per year 1620 x 85,000
$1,377,000.00 USD
Forecast- Caribbean MarketAverage Container Value- $53,400.00 USD
October November December
1 Container (20 ft.) 1 Container (20 ft.) 1 Container (20 ft.)
Distribution Channels
Consumer
B2B
B2C
Draft 20 Ft. Container
Product DescriptionNo of
CTNUnit
CTN SIZE
Unit/CBM
/
CBML W H CTN CTN
Non Sterile Gauze Compress Swabs 7.5 x 7.5cm 8ply 24x20 Mesh (25 x 17mesh)
215100
Pieces40.0 40 50 100 0.080 17.2
Sterile Gauze Compress Swabs 7.5 x 7.5cm 8ply 24x20 Mesh
100
100 pieces/
50 pouches of 2
48.0 47.0 50.0 60 0.113 11.280
31528.48
0
ICL FOB Container
Product Description Qty Unit
CTN SIZEUnit/ CBM/
No of CTN
CBM
L W H CTN CTN USD/pack
Usd/case
Total FOB
Non SterileGauze Compress Swabs 7.5 x 7.5cm 8ply 24x20 Mesh (25 x 17mesh)
100
Pieces40.0 40.0 50.0 100 0.080 215.0 17.200
1.338
133.800
28,767.00
Sterile Gauze Compress Swabs 7.5 x 7.5cm 8ply 24x20 Mesh
100 Pieces/
50 pouches
of 2
48.0 47.0 50.0 60 0.113 100.0 11.2802.33
0139.800
13,980.00
315.028.48
0
42,747.00
Product Pricing
FOB Buying Price CIF Buying Price Selling Price SMECatalogue Price
Caribbean
Pack* Case* Pack * Case* Pack* Case* Pack * Case*
NON - STERILE $ 1.34 $ 133.80 $ 1.48 $ 147.50 $ 1.74 $ 174.00 $ 1.88 $ 188.00
STERILE $ 2.33 $ 139.80 $ 2.68 $ 160.80 $ 3.16 $ 189.60 $ 3.89 $ 233.40
GROSS PROFIT 15% 15% 40% 40%
*Non-SterilePack- 100 piecesCase- 100 packs
*SterilePack- 50 pouches of 2 swabsCase- 60 packs
LogisticsOrder Fulfillment
Orders will be placed through ICL for international clients
and local orders will be placed by Intermed to ICL.
ICL will directly invoice all customers.
Shipping
The products will be drop shipped directly from Ningbo to
Suriname and other Caribbean markets.
Competitor Analysis
Hartmann
Tidi
Sensicure
Dynarex
Local Competitor AnalysisDistributor Size Ply Brand Sterile
USD$
Non-Sterile
$
Medlab 7.5 x 7.5 cm
8 ply Hartmann- Mullbinden
6.68 per pack of 25 (2 per pack)
12.74per pack of 100
CKC-INCOM 7.5 x 7.5 cm
12 ply
Noba-Asertis BV
8.00 per pack of 40 (2 per pack)
1.84 per pack of 100
Local Competitor Price Comparison
Competitors
Sterile ICL Non-Sterile
ICL
Medlab 6.68 per pack of 25 (2 per pack)
3.16 per pack of 50 (2 per pack)
12.74per pack of 100
1.74 per pack of 100
CKC-INCOM
8.00 per pack of 40 (2 per pack)
1.84 per pack of 100
Note: The above price is ICL’s selling price to Intermed
Caribbean Competitor Analysis
Distributor Size Brand Sterile USD
$
Non-Sterile
$
Clayvoncam Medi-Plus
7.5 x 7.5 cm 16 ply
Dynarex 12.85per pack of 100
_
Medical Disposables
7.5 x 7.5cm16 ply
Tidi _ 17.00 per pack of 100
Medical Disposables and Supplies
7.5 x 7.5cm16 ply
Sensicure
11.19 per pack of 100
_
Selected sample: Jamaica
Product AnalysisValue Drivers•Good Quality = Efficacy/Functionality
•Lower Price = Affordability
•Good Supply Ability = Availability
•Highly Disposable= Frequent Usage
Milestones
Gantt ChartSchedule for Completion
Sampling
Gen
era
te S
ale
s
ResourcesMoneyPeopleMarketing Tools
All other necessary resources such as accounting and delivery systems are
already existing and may only require upgrading.
Human Resources
Financial ResourcesEstimated Budget
Inventory $56,370.00
Prepaid Expenses
Private Labeling FOC per 50,000 units
Total Prepaid expenses $ - $ -
Deposits
Freight Charges$
2,490.00
Import Duties (12.5%)
$ 7,046.25
Total Deposits $ 9,536.25
Working Capital
Advertising $
1,500.00 $1500.00
Total Working Capital $67,406.25
Intermed’s Estimated Overhead Costs
Working Capital
Advertising $
1,500.00
Loan Payment $
5,000.00
Auto/Travel Expenses $
2,000.00
Inventory $
56,370.00
Miscellaneous $
1,000.00
Total Working Capital $ 65,870.00
Alternative SupplierBastos Viegas
Sterile- American Folding-100% CottonArticle Code
Description Inner Packaging
Carton EUR/100 pcs
1st 2nd Pcs Kg m3473-032 7,5x7,5cm - 8Plies -
17Th/cm21 110 1.980 5,0 0,097 5,11
473-033 7,5x7,5cm - 8Plies - 17Th/cm2
2 180 3.240 6,0 0,097 3,64
473-034 7,5x7,5cm - 8Plies - 17Th/cm2
3 210 3.780 7,0 0,097 3,27
473-035 7,5x7,5cm - 8Plies - 17Th/cm2
5 200 3.600 7,0 0,097 2,98
473-036 7,5x7,5cm - 8Plies - 17Th/cm2
10 200 3.600 6,0 0,097 2,88
473-191 7,5x9cm - 8Plies - 17Th/cm2 2 180 2.700 7,0 0,097 4,09
473-192 7,5x9cm - 8Plies - 17Th/cm2 3 210 3.150 8,0 0,097 3,72
Sterile- American Folding-100% CottonArticle Code
Description Inner Packaging
Carton EUR/100 pcs
1st 2nd Pcs Kg m3473-200 7,5x9cm - 8Plies - 17Th/cm2 5 200 3.000 8,0 0,097 3,45
473-211 7,5x9cm - 8Plies - 17Th/cm2 10 200 3.000 6,0 0,097 3,32
Non-Sterile- American Folding- 100% CottonArticle Code
Description Inner Packaging
Carton EUR/100 pcs
1st 2nd Pcs Kg m3428-007 7,5x7,5cm - 8Plies -
13Th/cm20 100 1.000 1,8 0,011 1,47
427-07 7,5x7,5cm – 8Plies - 17Th/cm2
0 100 1.000 2,0 0,011 1,86
Bastos Viegas vs. Chain Medical
Supplier ProductTotal QTY
of pcs
Pcs per
pack
Packs perCTN
Amt of
CTN
CBM perCTN CBM
USD per
pack
USD perCTN
Total USDFOB
USD ppFOB
Bastos VNon sterile 1,909,000 100 10 1,909 0.011 20.999 2.610 26.10 49,824.90 0.026
Bastos V Sterile 259,200 200 18 72 0.097 6.984 4.040 72.72 5,235.84 0.020
2,168,200 55,060.74 0.025
David QNon-sterile 2,150,000 100 100 215 0.080 17.200 1.475 147.50 31,712.50 0.015
David Q Sterile 1,000,000 100 100 100 0.113 11.300 2.680 268.00 26,800.00 0.027
3,150,000 58,512.50 0.019
N.B.- ASSUMING THAT DAVID Q OFFERS 100 PCS PER PACK (see column G: pcs per pack)FREIGHT & HANDLING CHARGES ARE EXCLUDED !!
CIF Suriname Price Comparison
Supplier FOBUSD
Freight Charges
USD
CIFUSD
Chain Medical 58,512.50 2,490.00 61,002.50
Bastos Viegas 55,060.74 2,660.00 57,720.74
Chain Medical has a competitive advantage with lower unit prices and total CIF container value.
Revised Marketing Approach
Marketing StrategyProductThe innovational packaging design and functional quality of MaxSorb will capture the target audience and will in turn stimulate sales.
Price The majority of funds will be sourced from local banks. Although ICL has no formal accounting system we have the knowledge and capabilities to steer the company long the path of profit.
Sales will be proliferated by sales representatives with the aid of samples and product literature, such as brochures.
The product will be competitively priced to ensure that we are able to satisfy our clients needs at a reasonable price while still maintaining a substantial gross profit.
Marketing Strategy Cont’dPlace The products will be sold in the Imed Retail Shop and will be displayed among other gauze dressings.
PromotionAs a promotional strategy we will order samples of the product to be distributed to potential clients. We will also create a special deal by pairing Maxsorb with Klinion as a bonus acting as a form of introduction to the local market.
Email banners and digital flyers will be used a source of advertising and promotion to our international clients. We will also place advertorials in Devsur a local English newspaper which will be available at airportss and also on other islands throughout the region.
Questions/ Comments
?