Revised Maxsorb Presentation

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


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


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




$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


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)


12.74per pack of 100


CKC-INCOM



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


_

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


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


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

?

Revised Maxsorb Presentation

Documents

Transcript of Revised Maxsorb Presentation