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(THIS IS A SAMPLE ONLY)

Marketing Plan for NeedleZap 2006-2007

Submitted by:

(Individual Student’s name on team)

Submitted to:

Kellie C. McGilvray

MKT523 Marketing Management (section) Fall Term II – 2006 MBA

(The date)

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NeedleZap Executive Summary

Current methods of hypodermic needle disposal are expensive and open to the risk of

injury and disease. In many underdeveloped countries, needles may be used more than once and

on different patients allowing for the spread of HIV and hepatitis. Here in the United States,

alternative technologies such as retractable needles, can be used to help safeguard healthcare

professionals from being accidentally infected by used needles. These needles, however, add to

the already spiraling cost of healthcare. It is our intention through the implementation of the

following marketing plan, to introduce the world to the NeedleZap needle disposal device, a

technology that will not only save scarce healthcare dollars, but help prevent injuries and the

spread of diseases associated with used hypodermic needles.

The NeedleZap device is a unique and revolutionary device that safely disintegrates the

sharp metal portion of a hypodermic syringe It utilizes high temperature electrodes safely

housed in a small (3” x 4” x 2”), portable, and rechargeable unit. It requires only one hand to

operate so the opposite hand is not exposed to an accidental needle stick. Disposal costs are

dramatically reduced because of the reduction in volume of bio-hazard waste and the complete

absence of the sharp needle.

Our primary objective is to displace sharps containers, the most commonly used

methods of needle disposal. We will demonstrate that even in the smallest physician office

settings, the NeedleZap device can pay for itself within the first few months of use. In addition,

because a single preventable bloodborne pathogen infection can be devastatingly expensive for

testing, treatment, lost work time, and disability payments, there are additional and substantial

financial and medical benefits for the widespread use of this device.

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In order to increase the awareness of NeedleZap in what we believe to be a virtually

unlimited marketplace that includes hospitals, physician offices, veterinarians, and dental

practices, our domestic marketing campaign will focus on ads in the most commonly read

medical trade journals, including the Journal of the American Medical Association. Participation

at strategic medical trade shows by our executive staff will bolster our awareness campaign. In

addition, given what we believe to be the newsworthy nature of our product, strategically timed

press releases will help to publicize NeedleZap with minimal expense. We recognize that

adoption of NeedleZap technology will entail a change in protocol for healthcare providers. For

this reason marketing activity will focus on ease of use and cost reduction, in addition to the

obvious medical and safety benefits.

Internationally we will target governmental and private aid organizations that have

funds available specifically for the prevention of diseases such as HIV and hepatitis.

Negotiations with these entitles will be accomplished directly by our executive staff. We believe

that access to these funds, though sporadic, will provide an enormous source of future sales of

the NeedleZap device while also serving a humanitarian need.

Because of the relatively low cost of this product, we believe that a direct sales

organization, at least initially, is too costly to build. NeedleZap will be distributed by a network

of qualified, existing, medical equipment distributors who will be required to stock adequate

quantities to meet customer requirements. This will also generate early cash flow and reduce

manufacturer stocking expenses in order to facilitate the development of future products and

upgrades as well as additional marketing support. Service will be provided on a unit exchange

basis and extended warranties will be offered at point of purchase.

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We expect that in the first twelve months after implementation and finalization of

contractual agreements with our distribution partners that we will achieve a 65% awareness of

the product in our target markets. We expect net domestic sales to reach over 19,000 units and

exceed $8 million. At a manufacturing cost of $78 (including charger and accessories) per unit

and an average selling price of $410 (after volume discounts) to our distributors, gross profit will

exceed $6 million, including extended warranty sales. This will allow coverage of debt resulting

from prior business activities, additional development of future products and upgrades, coverage

of warranty expenses, customer education, legal expenses related to FDA approvals, and future

promotional activities. We expect future international sales to be significant in the long term,

however, minimal in the first year of implementation.

The following marketing plan will explain in more detail why we believe that the

cooperative, competitive, economic, social, and political environments are all extremely

favorable to the success of the NeedleZap needle disposal device. This marketing plan is

intended to exploit the current absence of a viable solution to the disposal of contaminated

needles safely and economically. Future enhancements to the product, detailed in the plan, will

allow us to attract an even larger portion of what we believe to be a virtually unlimited market.

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Table of Contents

Introduction ………………………………………………………………………... 6

Situational Analysis …………………………………….......................................... 8

Cooperative Environment …………………………………………………. 8

Competitive Environment …………………………………………………. 9

Economic Environment …………………………………………………… 10

Social Environment ………………………………………………………... 11

Political Environment/Legal Environment ……………………………….. 11

Marketing Planning ………………………………………………………………. 12

Marketing Objectives …………………………………………………….. 12

Target Markets ……………………………………………………………. 13

Marketing Mix ……………………………………………………………. 13

Product ……………………………………………………………. 13

Promotion …………………………………………………………. 15

Distribution ………………………………………………………... 16

Price ……………………………………………………………….. 16

Implementation and Control of the Marketing Plan ……………………………….. 17

Summary ………………………………………………………............................... 17

Appendix - Financial Analysis …………………………………………………….. 20

References ………………………………………………………………………..... 24

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NeedleZap Introduction

Each year in the United States alone, there are an estimated one million accidental needle

sticks among healthcare professionals. It is difficult to estimate how many more occur among

non-medical personnel who must inject insulin or self-administer other types of injectable

medication. In other parts of the world, particularly in third world countries, it is not unusual for

hypodermic needles to be used more than once creating a significant risk for the spread of HIV,

hepatitis, and other blood borne diseases. In addition, healthcare costs throughout the world

have spiraled out of control for years. The NeedleZap needle disposal device is designed to

address not only healthcare costs and the spread of disease, but also the safety of health care

workers.

The NeedleZap is designed to safely disintegrate the sharp portion of a hypodermic

needle before an injury can occur by using high temperature electrodes to vaporize the sharp

metal portion. The device is barely larger than two decks of cards and weighs less than two

pounds. It is rechargeable and is therefore portable enough to be placed in easy reach of virtually

every treatment environment and available at the point of care. It will be adapted to use with a

variety of the most common needle gauges and for use with specialty needles such as those used

for kidney dialysis and IV’s.

The NeedleZap system will be packaged with a durable carrying case, comprehensive

instructions, and a 6V charger. Various accessories to accommodate specialty usage and to

prevent theft are in development and will be made available as options. In addition, a variety of

training and service options will be made available in order that users can make the most of this

technology and utilize it safely.

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Though versions of this device have been FDA approved and available for over a year,

they have not been widely distributed to this point. We believe that this is due primarily to a lack

of awareness by those who could benefit most as a result of inadequate and ineffective marketing

and distribution strategies implemented by the manufacturer. Those strategies included direct

sales representation that we feel is inappropriate for a relatively inexpensive medical product of

this type and sales through distributors that were ill-equipped to market the product adequately.

Our intention in this report is to redefine a product, sales, and distribution plan for NeedleZap

that will allow this technology to reach its considerable potential and to describe how these new

strategies will be implemented.

Given the benefits of this product and that it is being manufactured with a high level of

quality and reliability in both the United States and China for approximately $78 per unit, we

believe that the potential for sales and profitability for NeedleZap is essentially limitless. The

market will include any medical facility, physician office, dental practice, veterinary practice, or

home where hypodermic or specialty medical needles are used. We anticipate and expect that

first year sales post-implementation of this marketing plan to be in excess of $8 million. At an

average selling price of $410 from a list of price of $450, NeedleZap can generate an exceptional

margin which can fund subsequent upgrades and marketing programs.

In this report we will provide a detailed situational analysis describing the current and

anticipated selling environment that will guide our strategy. Next we will describe the strategy

itself, including our target markets, objectives, and the details of how NeedleZap will be

promoted and distributed. Within this section we will describe our plans for future products,

upgrades, and add-ons that will further enhance the utility and profitability of NeedleZap. We

will also describe how the NeedleZap strategy will be implemented and controlled as well as

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how the success of the programs will be monitored and by whom. Finally we will provide a

detailed financial analysis that will further define our anticipated sales, marketing costs, and

return on investment.

We believe that the NeedleZap needle disposal device is the right product for these

times. By stemming the spread of disease, providing a safer environment for healthcare workers,

and saving healthcare dollars, this technology has tremendous potential from both a humanitarian

and business standpoint. We are very excited to present a marketing plan that we believe will

make this potential a reality.

Situational Analysis

Cooperative Environment

To begin this portion of the analysis it is critical to acknowledge that environmental

factors play a huge role in the success or failure of any product. With our analysis of the

NeedleZap device the environmental factors exist within the healthcare industry, however, other

cultural and social influences do play a role. Based on the enormity of this industry we must

acknowledge that the market for NeedleZap is virtually without limit. If there is a facility where

injections are given, then this product is right for them. The cooperative environment mainly

consists of those entities that would benefit from this product and how a service relationship

should be established and maintained with them. Mainly our focus would be on any facility that

routinely gives injections to include hospitals, physician offices, dental offices, veterinary

clinics, nursing homes, home health care aides, and hospice units. The need exists in these

places; therefore, this environment is cooperative to our marketing plan. Although we have

mentioned the need existing in Africa we recognize the unpredictable nature of humanitarian aid

and government help that many of these underdeveloped nations rely on. This fact alone dictates

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that the majority of the cooperative environment is here in North America. While we understand

that expansion into Africa and even Asia is possible, we believe the healthcare industry of North

America is our main target and comprises the majority of the cooperative environment. We

would strive to establish strong relationships in this environment and to also gain referrals from

our existing client base. We would not only be selling a useful product, but also the idea that

they are buying top-of-the-line service.

There exists no greater advantage in sales than not only being paid for your product, but

also by gaining business through word of mouth. We will operate in an indirect marketing

environment that actively pursues qualified referrals from our customers. To conclude the

discussion related to the cooperative environment it essential to recognize the large role of the

health insurance industry. The savings in reducing injury or disease to healthcare workers can

save insurance companies millions. These facts dictate why they may look at making NeedleZap

a requirement in healthcare settings. We believe that a cooperative relationship can exist with

insurance companies and can also aid in facilitating revenue from third parties.

Competitive Environment

From a competitive standpoint one of the main sources of competition comes from those

companies that sell the traditional needle and syringe disposal containers. These are the plastic

boxes in physician offices and hospitals that we have all seen on multiple occasions. The

injections are given and immediately the needle is disposed of in one of these containers. The

strength of this competitor is these containers have become the norm in the healthcare industry.

They are often seen as the best and safest way to dispose of needles when injections are given

and therefore have monopolized this industry to a large extent. The problem is that many in the

industry have not been exposed to an alternative. We understand that the need for these

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containers may not be eliminated completely; however, safety could be increased substantially

with our product. One exploitable weakness of this competition is that there is the possibility of

accidents still occurring with these containers. Defects in manufacturing as well as the improper

disposal of them could lead to an increased risk of needlestick injury. Not only the healthcare

workers but also those maintenance staff that dispose of the needles could now also be at risk for

accidental needlestick injury. We look to effectively manage the competitive influences around

us, however, will stress that increased safety will come from purchasing NeedleZap. The final

point related to the competitive environment is that we plan to fully exploit the cost advantages

of this product. While retractable needles meet OSHA guidelines for safety standards we plan to

prove that purchasing NeedleZap is more cost effective than purchasing any other product.

Economic Environment

From an economic standpoint this product benefits by being a part of one of the most

economically healthy industries in the world. As Americans we all understand the reality of

astronomical health care costs. NeedleZap would benefit from an economic culture of more

liberal spending on healthcare and also the idea that safety is above everything else. While this

is possible in the United States we do acknowledge that this will be a challenge as we pursue the

African market. Many of these nations with the highest percentages of HIV/AIDS may not be

able to spend as we do domestically. Our main objective in marketing this product is to

recognize the economic environment and adapt accordingly. While one approach may be

beneficial domestically we do recognize the need to market differently in other countries. These

economic factors prove that we do need to maintain the focus to the North American health care

industry.

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Social Environment

The social environment consists mainly of two underlying factors. First, people are living

longer and subsequently are in need of more intensive healthcare. The National Center for Health

Statistics reports that the average American will live to be 77.6 years old. More people are

seeing doctors and therefore they are requiring more care to include injections on an ongoing

basis. There is an absolute need for this type of product because of this factor. The second social

factor is the culture of HIV/AIDS. Thirty years ago no one had heard of this disease and it was

something that we did not need to safely manage. In modern society we now have to live in a

culture where the risks of this disease are very real. Individuals with HIV are not only living

longer, but also are requiring more ongoing care. This is predominately due to advances in

treatment and research. They now require more treatment and thus pose an increased risk to

health care professionals in charge of their care. Our product will make it that much safer for the

individuals that care for these patients.

Political Environment/Legal Environment

For the most part the political and legal environments are closely related for this product.

One of our main goals is to support the marketing of NeedleZap based on existing legislation for

safety standards in the United States. While Africa is secondary to our plan, we do acknowledge

the need to understand the various laws of potential international customers in order to determine

the legal requirements for proper disposal of needles. If these nations do have existing legislation

then this will only enhance our marketing and sales approach. Based on a new OSHA guideline

that was cited at the NeedleZap website, in the United States, employers that have employees

who are exposed to the risks of accidental needlesticks are now obligated to take advantage of

new technologies that may reduce the risk. While no exact guidelines exist we could work in a

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lobbying effort to establish future legislation. While the product itself continues to be the main

focus of our marketing plan, we can also enhance our sales potential with this OSHA regulation.

Marketing Planning

Marketing Objectives

We feel the NeedleZap device is truly innovative and has potential to benefit its users

both in reducing needlesticks and in cost of needle disposal. Even though that we agree that

NeedleZap is a better alternative than its predecessors, the Sharps container; we believe that little

progress has been made in terms of its marketing to launch this product. In response to this, we

concluded that the first objective for the NeedleZap device would be to increase its awareness to

65 percent of its markets in the first year. However, we also know that the marketing budget is

not as generous as we would like due to poor sales of past efforts. As a result of limited financial

support, we determined other methods that are relatively inexpensive, but can be very effective.

These methods include a variety of public relations efforts that will create numerous

opportunities for the NeedleZap device. The first PR effort should focus on the creating a need

for NeedleZap, which is a product that eliminates accidental needlesticks easily, quickly, and at a

low cost compared to that of its competitors. Furthermore, once this need has been established

and created, NeedleZap must be introduced to satisfy this need. Another PR solution could be

that of partnering with an advocacy group to defuse industry critics by delivering positive

messages and the benefits about NeedleZap. In addition, referrals/testimonials from existing

clients would also draw positive messages that would help the product. A third PR goal could be

to obtain favorable coverage in medical journals as well as the general press through the release

of well timed press releases. Another PR strategy should be to create awareness on a more

personal level that can be accomplished in two ways: first E Med needs distributors who can

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demonstrate the features of NeedleZap to health-care providers on a one-on-one basis and

secondly, the company will participate in events such as a medical conference that would

provide a platform for its product for others to get first-hand experience of the benefits and ease

of use of NeedleZap.

The second objective that we feel is of the utmost importance is that of increasing its

sales. Currently, the NeedleZap device has been struggling with making positive strides and the

future of this product lies in the actual sales. The initial strategy for the NeedleZap device

should be to create a client base that will help boost sales and from these relationships, create

word of mouth awareness in the medical community.

Target Markets

We feel that the NeedleZap’s target market is both in the domestic and international

market and includes any healthcare facility where injections are given. These include hospitals,

physician offices, dental practices, and veterinarians. Bio-hazard disposal is a highly competitive

market and we feel that the NeedleZap device is a truly unique product that would satisfy the

needs of users in all markets. With this said, we feel that the approaches to domestic and

international markets should be slightly different. For example, we feel it would be better to

market NeedleZap domestically if we draw attention to its ease of use and cost effectiveness,

while in the international market (i.e. third world countries) the NeedleZap device would be

marketed more effectively by decreasing the spread of the AIDs/HIV epidemic and hepatitis.

Marketing Mix

Product.

Needle Zap is a Revolutionary new device that significantly reduces the danger of

accidental needle sticks. NeedleZap disintegrates the entire sharp needle portion of the

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hypodermic syringe eliminating possible danger to its users and other individuals within the area.

It is compact, lightweight, and portable, and can be used in fixed or mobile applications. The

unit itself measures 3" x 4" x 2" and weighs 1.4 lb. It handles all standard needle sizes: 16 to 30

gauge; and needles up to 2 ½ inches in length, without any adjustment.

This product is used by inserting the needle into the designated hole. Then the needle

must be rotated and gently pushed against the specially designated electrodes. At this point, low

voltage electricity disintegrates the needle in about two seconds using temperatures that approach

2,200oF. The needle is then eliminated only leaving the syringe intact. This product is designed

to be operated with only one-hand (95% of all needle stick injuries occur to the opposite hand;

the hand not holding the needle).

NeedleZap operates with rechargeable batteries and with either an AC or DC charger. It

can disintegrate up to 100 needles without recharging. NeedleZap is currently offered in two

forms, the Standardized unit or mobile health unit. The standardized unit is designed for use in

either fixed location use or can be transported by a medication cart or tray to the procedure

location. The standard unit comes with choice of either AC or DC charger. DC charger allows

use in out-of-facility applications. We also offer two color choices, black or white.

The Mobile health unit is designed for mobile applications such as home health providers

and farm veterinarians. It includes all of the required elements in a convenient carrying case that

includes the following items: White NeedleZap® unit, with rechargeable battery, AC charger and

DC charger, gloves and disinfectant wipes.

NeedleZap currently comes with a one year warranty and has a life cycle of seven years.

An extended warranty may be purchased at point of sale for $45.00 per year and all NeedleZap

devices are packaged with detailed instructions, a complete education guide on disk, and access

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to a call-in help line. Upgrades and enhancements that will allow NeedleZap to accommodate

specialty needles such as those used for diabetics or in kidney dialysis are in development to

further enhance its utility. A lock down device for hospital use is also being developed and will

be offered as an option to prevent theft.

Promotion.

The promotion for NeedleZap will focus on advertising, sales promotion, and direct

marketing. Currently NeedleZap information is available on the internet, however, few people

know that it is there. In order to start the hype about NeedleZap, the following will occur:

The advertising for NeedleZap will consist of purchasing ads in the following magazines:

The Family Doctor Magazine, Prevention Magazine, Medical Product Outsourcing Magazine,

and the Journal of American Medial Association (JAMA). This promotion will allow for a

greater opportunity for the medical profession to have an understanding of what NeedleZap is.

The Medical Product Outsourcing Magazine is distributed globally and deals with new and

innovative products in the medical field. The Family Doctor and Preventative Magazines are

articles that are often found in doctor’s offices that allow for employees of the office and patients

to be made aware of this product.

For sales promotion, NeedleZap will be offered in the following way: If a distributor

partner wishes to purchase multiple units of 100 or more, then a discount of 10% will be taken

off the total order. If a client purchases 500 or more units a 20% discount will be given. Thirdly,

for first time purchasers, the shipping and handling for the units will be waived. The goal is to

give an incentive for the purchaser and get units into the market so users can create talk. Without

multiple units in the field, it will be hard to effectively market this product.

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Additionally a sales promotion will be offered to the distributors of this product. In order

to drive the sales of the distributors, NeedleZap will offer the following incentive program for

the 2006 fiscal year. The top selling salesperson of the NeedleZap product will receive a new

Sony 52” flat panel television, the salesperson with the second number of units sold will receive

a new Sony 42” flat panel television, and the salesperson with third highest number of

NeedleZap units sold will receive a new Sony 32” flat panel television. This promotion will give

the distribution sales force an added incentive to sell NeedleZap.

Distribution.

NeedleZap will be primarily manufactured in Mentor, Ohio where E Med Future, Inc.

currently houses their manufacturing plant for the domestic market. NeedleZap will then be

shipped to distributors across the country. These distributors will be responsible for selling the

NeedleZap product within the United States. A second manufacturing plant in China, already in

operation, will service our international customers.

Price.

The price for the NeedleZap product is $450.00 per unit for the distributors. Multiple

unit sales will be discounted to our distributors according to the schedule detailed above. Our

suggested price to the healthcare market is $650.00 per unit. This is a $200.00 markup after

initial purchase. This will give the distributor incentive to sell the product and make a profit.

The final cost of the product is still quite reasonable given that it is in the medical filed. Along

with the incentive programs listed above and the markup price, this product will be highly

attractive to our selected distributors.

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Implementation and Control of the Marketing Plan

The marketing plan will be implemented by existing senior staff of E-Med Futures, Inc.

All sales and contractual activity with both domestic distributor partners and officials involved in

international government bodies and aid funds will be conducted by current executives for the

first year. As sales activity and revenue increases, additional sales and marketing personnel will

be added as warranted and as available cash allows.

Results of the plan will be continuously monitored and evaluated based on actual sales

compared against those forecast in each sales category. The board, along with senior staff, will

meet on a quarterly basis to review results and recommend any changes in the plan that may be

necessary at that point in time. In addition, average selling price will by monitored and

evaluated at the quarterly meeting to determine if any correction is necessary in order that our

target profit margin is achieved.

On a qualitative basis, each NeedleZap unit will be packaged with a postage paid

customer response card in order to facilitate user comments concerning the use of the product,

quality of service, and recommendations for enhancements to either. Significant trends based on

customer responses will be reviewed at the quarterly board meeting. Recommendations by the

board for the resolution of any issues and enhancements to the plan will be made at that time.

Senior staff will be responsible for evaluating the cost and feasibility of the board’s

recommendations and for their ultimate implementation.

Summary

Through this marketing plan we have introduced a revolutionary new product called

NeedleZap that will substantially decrease the risks associated with traditional needle disposal.

Currently the methods used to dispose of hypodermic needles are expensive and are open to the

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risk of injury and disease. As stated in the Executive Summary, many underdeveloped countries

use needles more than once on different patients which allows the spread of HIV and hepatitis.

In the United States the problem is not necessarily the use of one needle on multiple patient but

we do have issues related to high costs when dealing with disposal. Retractable needles as well

as the traditional disposal containers have become the norm in the healthcare industry. With this

plan, we will introduce the NeedleZap needle disposal device that will not only save scarce

healthcare dollars, but will also assist in preventing injuries and diseases associated with

accidental needle sticks and improper disposal.

Throughout this plan we have discussed the primary objective of replacing the traditional

sharps containers, which are the most commonly used methods of needle disposal. Hospitals,

physician offices and other healthcare settings, by purchasing NeedleZap, will have drastically

increased safety and decreased the financial burden associated with normal disposal. This

benefits not only the healthcare facility but safety to the workers and patients as well.

A common theme throughout this plan is the fact that the need for this device is virtually

without limit. Any place where injections are routinely given will benefit from NeedleZap. In

order to market this product domestically our focus will be on advertising NeedleZap in medical

trade journals, one of which is the Journal of the American Medical Association. Medical trade

shows as well as inexpensive public relations activities such as the strategic positioning of press

releases will be our major focus in getting the word out on this device. We have recognized that

traditional methods of disposal will be difficult to completely replace initially due to existing

disposal contracts and protocols therefore the major focus is to discuss how easy the device is to

use and also how incredibly cost effective this product is.

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From an international perspective we are looking more toward the future however we

will target governmental and private aid organizations that have the funds available to support

the reduction of diseases such as HIV and hepatitis. The NeedleZap device will serve a great

humanitarian need.

As stated previously, we will not focus on a direct sales approach for the NeedleZap

device. The fact that the device is relatively inexpensive supports a plan whereby distribution is

focused on qualified medical equipment distributors. We rely on them to maintain adequate

inventory and also to facilitate potential business by seeking qualified referrals from healthcare

facilities. The service of NeedleZap will be provided on a unit exchange basis and extended

warranties will be offered to the customers at the point of purchase.

We believe that within the first twelve months of implementation the plan will generate

65% awareness of the product in target markets. Our expectation is for net domestic sales to

exceed 19,000 units and $8 million, including extended warranty sales. At a manufacturing cost

of $78 (including charger and accessories) per unit and an average selling price of $410 to our

distributors, gross profit will exceed $6,000,000. We expect future international sales to be

significant in the long term, however, minimal in the first year of implementation.

To conclude, it is essential that we recognize and stay focused on the core benefits of this

product. Safety is without question the greatest benefit and the number one selling point for the

NeedleZap device. However, the cost benefits will make it attractive for institutional buyers to

justify. We feel that our marketing plan will effectively make this device available to everyone

who can benefit by it so that sales and profitability targets can be easily achieved. At the same

time, we will have made the world a safer place.

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Appendix – Financial Analysis

Financial analysis is a critical component of our marketing plan. The financial analysis

for the marketing plan for NeedleZap includes two main sections. These sections are a Sales

Forecast and Estimates of Marketing Costs.

Sales Forecast

The first step in developing a sales forecast is to determine the number of entities in the

target market. As stated previously, the target market for NeedleZap consists of hospitals,

physician’s offices, dentistry offices, and veterinary offices for the domestic market and national

health departments and aid organizations for the international market. The total number of

entities in the different sections of the target markets and the number of purchases each section is

expected to make in the first year is as follows:

Domestic Sales Forecast Home Nursing Hospice Health Hosp. Phys. Dentists Vets Homes Units Aides Total number of entities (est.) 28,000 700,000 150,000 58,000 17,000 4,500 608,000 Annual # of purchases per entity x5 x0.1 x0.1 x0.1_ x 0.1 x0.1 x0.1 Total potential market 140,000 70,000 15,000 5,800 1,700 450 60,800 % total market coverage x0.65 x0.65 x0.65 x0.65 x0.65 x0.65 x0.65 Total available market 91,000 45,500 9,750 3,770 1,105 293 39,520 Expected market share x0.10 x0.10 x0.10 x0.10 x0.10 x0.10 x0.10 Sales forecast (in units) 9,100 4,550 975 377 111 29 3,952 Average Price x$410 x$410 x$410 x$410 x$410 x$410 x$410 Sales forecast (in thousands of dollars) $3,731 $1,866 $400 $155 $46 $ 12 $1,620 Warranty sales of 10% of Units @ cost of $45.00/yr $40,950 $20,475 $4,387 1,697 $500 $131 $17,784 Total domestic sales forecast in units = 19,094 Total domestic sales forecast in dollars + warranty sales = $ 7,915,924

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International Sales Forecast

Total # of national health departments in Africa 53 Annual # of purchases per entity x 100 Total potential market 5,300 % of total market coverage x 0.65 Total available market 3,445 Expected market share x 0.10 Sales forecast (in units) 345 Price x $410 Sales forecast (in dollars) $141,450 Warranty sales of 10% of units @ cost of $45/yr $1,553 Total sales forecast in dollars $143,003

In making the sales forecast, estimated numbers from Internet sources determining the

number of hospitals, physicians, dentists, offices, veterinary offices, nursing homes, Hospice

units, and home health aides in the domestic market and a national health department in each

country in Africa were used. The goal of the market plan was to have 65% target market

coverage and 10% market share in the first year. The main competitor for our product is sharps

containers and because they are an inferior product we believe a 10% market share is feasible in

the first year. Hospitals will use the largest number of NeedleZap devices due to their numerous

sites on each floor for injections and blood draws. However, most hospitals are already under

contract for needle disposal and will not purchase NeedleZaps for the entire hospital until this

contract runs out. Our estimate of 5 NeedleZaps purchased in the first year is from infiltrating

the hospitals in a department by department approach. Physicians, dentists, veterinaries, nursing

homes, hospice units, and home health aides each would have a limited number of injection and

draw sites and their number of annual purchases was estimated at 0.1 per entity in the first year.

In the international market, sales will be minimal in the first year because of unpredictability and

the time lag in securing government and foundation funds but will grow substantially in

subsequent years. Also, due to its relative lack of healthcare infrastructure, it was decided to

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market to national health departments (53 countries) and use them as distributors in their own

countries. An estimate of 100 NeedleZap devices per health department was used. The

estimated sales forecast in units for the domestic target market is 19,094 and for the international

target market is 345 for a total of 19,439. The estimated sales forecast in dollars domestically is

$7,915,924 and internationally is $143,003 for a total of $8,053,927. We anticipate that in years

two and beyond that domestic sales will increase by a factor of two and that international sales

will increase by a factor of at least four.

Estimates of Marketing Costs

The main competitors for NeedleZap are companies producing sharps containers.

Therefore, heavy expenditures in advertising are needed to increase customer awareness of

NeedleZap and reach the goal of 65% awareness of the product in the first year.

Advertising

Our customers are mainly healthcare entities in which the purchasing agents must be

reached with advertising and public relations materials. Advertising and creating awareness are

the main expenditures for this product. Advertising costs include purchasing ads in appropriate

magazines or journals, mailing flyers to metropolitan areas, and assisting with the financing of

medical conferences. We estimate that 50% of our marketing budget will be spent on creating

this awareness of NeedleZap.

Sales Force Training and Compensation

Much of the sale force training and compensation expense will be for the distributors

selected to distribute NeedleZap. Incentives must be given to these distributors to encourage

sales of NeedleZap versus other products that they carry. We hope to work with distributors who

have experience in the healthcare and government setting and who have shown the ability to

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communicate well and sell effectively in these settings. Because of our use of experienced

distributors as opposed to the use of individual sales representative we hope to keep the

expenditures for sales force training and compensation to 20% of our marketing budget.

Channel Development

Using established medical distributors should allow us to minimize the costs for channel

development. Most of our costs for channel development will be in researching the available

distributors and determining the correct choices for NeedleZap and in the developing the chain to

supply these distributors with our product. Therefore our channel development costs should be

kept to 5% of our marketing budget.

Marketing Research

The need for NeedleZap is self-evident in our target markets. Since we know all

healthcare facilities are in need of our product, research costs should be limited. These costs will

include determining what if any adaptations our customers desire and their relative satisfaction

with the product. Marketing research costs should constitute 5% of the marketing budget.

Product Development and Package Design

NeedleZap is an existing product, however as stated earlier, we anticipate developing

additional enhancements and upgrades in order to expand utility and improve our product

offering in the future. Product development and package design should constitute 20% of the

marketing budget.

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References

Hospice Facts and Statistics. Retrieved December 10, 2005 from National Association for

Homecare and Hospice Web site: http://www.nahc.org/Consumer/hpcstats.html

National Health Care Survey. Retrieved December 10, 2005 from National Center for Health

Statistics Web site: http://www.cdc.gov/nchs/nhcs.htm

NeedleZap. Retrieved December 10, 2005 from NeedleZap Web site:

http://www.needlezap.com/home.html

Nursing Homes. Retrieved December 10, 2005 from Medicare Web site:

http://www.nahc.org/Consumer/hpcstats.html

U.S. Department of Labor, Bureau of Labor Statistics. Dentists. Retrieved December 10, 2005

From http://www.bls.gov/oco/ocos072.htm

U.S. Department of Labor, Bureau of Labor Statistics. Personal and Home Care Aides.

Retrieved December 10, 2005 from http://www.bls.gov/oco/ocos173.htm

U.S. Department of Labor, Bureau of Labor Statistics. Veterinarians. Retrieved December 10,

2005 from http://www.bls.gov/oco/ocos076.htm