picooc final deliverable rev8
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PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
OPPORTUNITY CREATES SUCCESSA corporate development assessment of PICOOC
NEWHUADU BUSINESS SCHOOL – SUMMER 2014
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
TABLE OF CONTENTS
Introduction The US Market analysis of Smart Health Technology as it relates to PICOOC
Executive summary Broad overview of current trends and our recommendations
Section one Western sources of demand for PICOOC and market analysis for entry
Section two An analysis of competitors, solutions, and best practices for PICOOC to adopt
Section three Go-to-market strategy and corporate development recommendations
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
Our goal is to help PICOOC achieve long term success by successfully entering the US market and revising their corporate development plan to stay ahead of market trends.
Situation
• PICOOC, as a start-up tech company with limited infrastructure and revenue, is seeking to enter the US market and take advantage of the high amount of target consumers located there. The hurdles towards achieving this is the current lack of understanding of the US market for smart scales and wearable devices.
Team• The New Huadu Business School (NBS) internship team of Ajinkya
Patwardhan, Brandon Adsitt-Weiner, Reid Chanon, and Francis Chen have been placed at PICOOC to conduct research and develop a go-to-market plan.
Approach
• Using a combined approach of primary and secondary market research, including three weeks spent onsite at PICOOC’s headquarters, the NBS team systematically evaluated the wearables and smart scales industry, competitors, products and operations to determine a competitive positioning roadmap.
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
TABLE OF CONTENTS
Introduction The US Market analysis of Smart Health Technology as it relates to PICOOC
Executive summary Broad overview of current trends and our recommendations
Section one Western sources of demand for PICOOC and market analysis for entry
Section two An analysis of competitors, solutions, and best practices for PICOOC to adopt
Section three Go-to-market strategy and corporate development recommendations
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
Executive SummaryThe Health Tracking
Technology Industry in the US is a billion dollar industry. The
market consists of a combination of individuals trying to lose weight and individuals tracking their
exercise habits. The market is expected to grow to 8 billion
USD by 2018 . There are several large competitors that are already in the market or
planning on entry.
Our recommendation is that PICOOC should enter the US health management market
targeting persons with a high interest in weight
loss/management, particularly through potential partnerships
with the dieting industry for the existing scale product,
broadening into the wearables niches as the technology and
product is created.
The assessment will cover the following and conclude with a
go to market plan and recommendations for in house
corporate development.
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
TABLE OF CONTENTS
Introduction The US Market analysis of Smart Health Technology as it relates to PICOOC
Executive summary Broad overview of current trends and our recommendations
Section one Western sources of demand for PICOOC and market analysis for entry
Section two An analysis of competitors, solutions, and best practices for PICOOC to adopt
Section three Go-to-market strategy and corporate development recommendations
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
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SEC 1. WESTERN SOURCES OF DEMAND AND MARKET ANALYSIS
Industry knowledge
Specific Analysis
Broad AnalysisWhat opportunities in
the wearable and smart scale market exist for
PICOOC?
Who are the existing and future competitors
and where are they focused?
How big is the market, who leads it, and who
are the target consumers?
Who leads the market for obesity prevention and what G&S do they
provide?
What other sources of demand can PICOOC take advantage of to launch new products
What are the most common diseases and
which can be controlled or mitigated by our
product?
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
The technology wearables market can be segmented from tech wearables to health and fitness devices, and finally to the largest niche category which are health wristbands and wristwatches for health and fitness use
Mar
ket
Segm
enta
tion
The 2012 wearables market was estimated to be worth 2.5 billion USD and projected to increase up to 8 billion USD by 2018. This includes the consumer,
healthcare, and enterprise markets. Wearables or wearable computing or wearable technology includes products such as smart glasses, wristbands and watches,
shoes, and other up and coming technologies such as e-textiles.
The number of wearable health and fitness devices is projected to increase to 170 million in 5 years, with sports, fitness, and personal health based devices to number around 90 million
leaving 80 million health and medicine based devices to round out the market.
However, the largest segment of the market in 2012 was wristbands and wrist watches, with
wrist wear accounting for 850 million dollars of total revenue in 2012.
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
Obesity related illnesses generate health complications that are a multibillion dollar industry to both prevent and treat. Introducing a way to mitigate health expenses and create a healthier lifestyle is PICOOC’s value add. This should be PICOOC’s target market.
Obesity-related Illness’s Health care cost
Healthcare Cost
2013 estimated healthcare cost $254 Billion2030 estimated healthcare cost $861 to $957
Billion (USD)Average annual Healthcare cost per capita
$7,990 (USD)
Preventable Illnesses make up 70% of U.S. illness cost.
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
The United States spends the most in the world for healthcare costs and with per capita adjusted spending is the market with the most to offer for PICOOC
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
Both adults and children are affected by obesity-related Illnesses, this provides an opportunity for PICOOC to tailor their form of health solution for both an adult consumer or a child.
Adult (age 20 or above) Overweight and Obese (25 BMI ↑) Obese (30 BMI ↑)
Men & Women 154.7 million 78.4 millionMen 79.9 million 36.8 millionWomen 74.8 million 41.6 millionChildren 2 to 19 Overweight & Obese (25 BMI ↑) Obese (30 BMI ↑)Boys and Girls 23.9 million 12.7 MillionBoys 11.8 Million 6.3 MillionGirls 12.1 Million 6.4 Million
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
Exercise trends for the US reflect the high rates of obesity with a very low rate of national average exercise. This provides an opportunity for PICOOC to address affected target consumers and create a technology solution that promotes a healthy lifestyle
Exercise Statistics of Americans who work out regularly 2014
Percentage of Americans
National average of Americans that exercise regularly
49.6%
U.S. adults exercise 30 minuets each day Less than 5%Exercise for at least 30 minuets or higher, 3 days week
49.6%
Exercise one or two days per week 18.5%Haven’t exercised within the last week 31.3%Americans yearly income of $90,000 that exercise 54.3%Percent of obese Americans that do not exercise 40.4%
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
Many competitors offer health programs for overweight and obese Americans to establish or maintain a healthy lifestyle, but these do not provide a technical solution. PICOOC could leverage any one of the following companies’ customer base to build sales volume
U.S. Programs: U.S. News & World Report: Best Diet
Potential Advertising for PICOOC Latin:
Weight Watchers #1 Commercial Diet Website MagazineGroups
Jenny Craig #2 Commercial Diet WebsiteGroups
Biggest Loser #3 Commercial Diet WebsiteBooks
Slim Fast #4 Commercial Diet WebsiteProducts
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
An underutilized yet very large demographic are people who suffer from Chronic Diseases
45% of U.S. adults have a chronic
Health condition
25% of U.S. adults have high blood
pressure11% of U.S. adults
have Diabetes7% of U.S. adults
have a heart condition
75% of health care dollars
The United states has a multitude of chronic diseases that afflict
millions
Many result from a combination of lack of exercise and poor diet
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
25% of Americans Suffer from High Blood Pressure
25% of U.S. adults have high blood
pressure
Costs USA $47.5 Billion per year
CDC says “Lifestyle change are just as
important as medications
47% have condition under control
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
11% of Americans have Diabetes
According to CDC “Diabetes can be treated and managed by healthful eating and regular
physical activity”.
Estimated cost in the United States is $245 Billion
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
7% of Americans have a Heart Condition
Cost the United States 108.9 Billion
per year
Risk for Heart Disease Include:Diabetes
OverweightPoor Diet
Physical inactivity
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
Many Chronic Disease sufferers share a lack of health habits which contribute to their diagnoses. PICOOC’s Latin offers a chance for these chronic sufferers to manage the underlying causes of their disease
Heart Condition
s
High Blood
Pressure
Diabetes
Lack of diet and exercise
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
Most Chronic Disease sufferers track measurements about their bodies to both help themselves and provide more detailed information to their healthcare provider
84% of Adults with chronic conditions use a pen and paper or rely on their memory to
track their physical condition.
That is 91.7 Million Adults who track their health and could benefit from an electronic
health tracking device.
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
PICOOC can currently track the following health indicators with their health monitoring device instead of having potential customers record their data on paper or mentally
PICOOC Latin FeaturesBody mass Index (BMI)Basal Metabolic Rate (BMR)Body FatMuscle MassBody WaterBone MassMoodVisceral FatActivitiesDiet Habits & AdviceExercise Advice
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
PICOOC should include the following health indicators in their future products to appeal to a greater share of the market and have more versatility to the consumer
PICOOC’s potential
features for future
products
Heart Rate Monitor
Sleep Patterns
Share Data with
Healthcare provider
Blood Pressure
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
There are several ways to target those who suffer from Chronic Diseases in an effort to inform them about the benefits of electronic health measuring devices
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
TABLE OF CONTENTS
Introduction Our approach and defining PICCOC’s situation
Executive summary Broad overview and recommendations
Section one Western sources of demand and market analysis
Section two Competitor analysis and best practice adoption
Section three Go-to-market strategy and corporate development recommendations
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
Industry knowledge
Specific Analysis
Broad AnalysisHow can PICOOC
learn from existing and emerging competitors?
Who are the existing and future
competitors and where are they
focused?
Why is FitBit the industry leader?
How will Apple and Google’s plans to
enter the space affect the market?
What lessons can PICOOC take from it’s
competition
What should PICOOC track internally to
improve it’s product development
process?
SECTION 2: COMPETITOR ANALYSIS AND BEST PRACTICE ADOPTION
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
PICOOC should adopt industry best practices and seek to replicate the success of it’s existing and emerging competitors
Competitor Analysis
Analyze competitors products
What brands are dominant
Integrate competitors features
PICOOC’s Differentiation
Strategy
Product & brand Dominance
How Competitors are marketing there product
Goal
Reach out to consumers
AdvertisingPricingDesign
Quality customer service after sale
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
PICOOC Latin has many of the same features as there competitors but they should also consider some of there competitors features to be integrated in there product.
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
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Brand recognition and marketing presents an opportunity and challenge for the largest players in the market as well as PICOOC
Key players
Nike (US)Jawbone (US)Fitbit (US)Adidas (GM)Withings (FR)
Name % Own
Familiar with product purchase within 12 months
Familiar with product, not interested in buying
Heard of it, don’t know much about it
Have not heard of this product
Nike Fuelband
13% 13% 11% 20% 43%
Fitbit (Zip, One, Flex)
7% 11% 11% 16% 55%
Adidas miCoach Series
6% 9% 11% 15% 59%
Jawbone UP
5% 6% 10% 13% 66%
Withings Pulse
5% 5% 6% 9% 75%
Other brand of health monitor
9% 8% 8% 14% 62%
Emerging competition
Apple (US)Google (US)
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
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PICOOC must isolate the features that are both affordable to implement and important to consumers and integrate them in their product when entering the wearables market in the US
Product Name Key Features Price (USD)
Withings Pulse 24/7 tracker, heart rate and blood oxygen level measurement, sleep cycle analysis, activity badge feature to promote competition in conjunction with social media, personal coaching
119.95
Jawbone UP 24/7 tracker, food and drink tracking, sleep analysis (quality x quantity), alarm, social media integration
149.99
Adidas miCoach Smart Run 3GB music storage, color touch display, heartrate monitor, GPS, miCoach app provided 100s of free training plans, audio/visual/vibration based coaching
400.00
Nike Fuelband 24/7 tracker, hourly move reminders, integration with “Nike Sessions” workout plans
99.99
Fitbit One 24/7 tracker, wake alarm, minute by minute data logging and tracking, 14 day battery life, food consumption monitoring
99.95
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
PICOOC must look at the competition on the horizon and take steps to adapt by being compatible with their offering and offering some product differentiation
Apple enters
the market
PICOOC maintains a
similar design
aesthetic
Product integration with Apple products
Offer features that are
more unique
Aim to undercut their price
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
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The underlined market trends are ones that PICOOC has already adopted, but PICOOC needs to take steps to stay ahead of market trends they haven’t yet integrated into their products
Current market trends
• Calorie counting• Weight counting• Sleep analysis• Physical fitness• Steps tracking• 3D interfaces• Wrist wear• Social Network integration
(gamifying/progress tracking)• Flexible interface• Graph analysis• Plastic construction• Bio-monitoring• Sports Performance• Personalization• Prescriptive monitoring
Emerging Market trends
• Nutrient advice/incorporation• Circadian rhythm/sleep pattern
analysis• Mental fitness• Gait measurement• Self-documenting progress• Do-It-Yourself (choice for app
interaction)• Biometrics• Customized• Predictive
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
For a startup to succeed in a market dominated by big players the requirement is differentiation of product and services offered
Differentiation
Software Customer Support
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
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Providing more appealing software is a key method of differentiation, this can be achieved via offering more effective technology and incentivizing use and making the app user-friendly
Software: Offering effective prescriptive analysis, gamifying the user experience and creating a user friendly integration with social media are ways to differentiate most easily achieved on the software side.
Software/App
Differentiation
Offering fitness plans
(prescriptive interaction)
Gamifying the user experience
Social media integration
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
Another method of differentiating yourself in the market is to provide better customer service to expedite complaints and make the user experience more satisfactory
Providing quick answers to customer questions in a variety of formats (live, online FAQs and through email) is a good way to build customer loyalty and demonstrate high quality customer service.Customer
Service Differentiatio
n
Providing a better live chat
for support
Having quick turnaround on
customer service emails
Having an English website
paired to log data
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
TABLE OF CONTENTS
Introduction Our approach and defining PICCOC’s situation
Executive summary Broad overview and recommendations
Section one Western sources of demand and market analysis
Section two Competitor analysis and best practice adoption
Section three Go-to-market strategy and corporate development recommendations
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
INTRODUCTION EXECUTIVE SUMMARY SECTION ONE SECTION TWO SECTION THREE
SECTION 3: STRATEGY AND CORPORATE DEVELOPMENT RECOMENDATIONS
Industry knowledge
Specific Analysis
Broad AnalysisWhat should PICOOC plan for a successful US/EU market entry?
PICOC should create partnerships with
established brands to mitigate the difficulty of
market penetration
Top weight loss companies and home health providers in the
US
Top weight loss companies and home health providers in the
EU
Why not enter the market directly?
Methods for creating relationships with
international partners
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
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PICOOC should plan to partner up with either weight management companies or home health care companies for successful US Market Entry
• PICOOC has an excellent product, but needs to partner in order to help penetrate the US market successfully.
• “82 percent of executives believe that alliances will be a prime vehicle for future growth” (Kalmbach and Roussel, 1999)
• PICOOC lacks the brand recognition and funding of its competitors• PICOOC should partner with firms that specialize in weight management and
home health care.
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
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PICOOC should form a partnership in order to gain a competitive advantage. Partnering with a company either to accentuate DTC sales, or to create a complimentary product are both strategies required for market entry
• 50 percent of firms involved in alliances market their goods internationally versus 30 percent of non-allied participants” (Cooper and Lybrand Study, 1997)
• Partnering with large firms will allow PICOOC to obtain new technologies needed to compete with the large players in the US Market
• Since PICOOC is a smaller firm, having financial assistance in an overseas market will allow the company to absorb losses easier in case of bad sales
• Partnering gives PICOOC an advantage against other foreign competitors and allows the firm to even out the playing field against domestic competitors.
Easier to Market Products
Obtain New Technology
Reduce Financial Risk
Gives Competitive Advantage
Benefits of Partnership
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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3% market share and 1.8 billion in revenue• The company offers meetings where people can receive
professional advice and tips on how to lose weight as well as twenty four hour access to mobile and network devices.
0.7% market share and $400 million revenue• A company that purely focuses on food, food packages and
meal plans that help promote weight loss.
0.7% market share and $400 million revenue • Medifast weight loss program requires that clients to follow
established meal plans and diets.
PICOOC should partner with one of these top weight loss companies
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOC should partner with one of these top home health care providers
4.85 % market share• Number one leader in providing home health care services
4.76 % market share• Provide home health and hospice services to more than 350,000
patients from more than 420 community locations nationwide
2.10% market share• One of the top home health care companies
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
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The following companies are not the market leaders but might be more prone to partnering with PICOOC
RANKTOP 20 HOME HEALTH CARE COMPANIES NATIONAL
MARKET SHARE
1 AMEDISYS 4.85%2 GENTIVA 4.76%3 LHC GROUP 2.10%4 ALMOST FAMILY 1.88%
5 VISITING NURSE SERVICE OF NEW YORK 1.10%
6 KINDRED 1.03%7 CHE TRINITY HEALTH 0.98%8 INTERIM 0.94%9 BAYADA 0.79%10 ACCENTCARE 0.78%11 ENCOMPASS 0.73%12 NURSE ON CALL 0.67%13 CARESOUTH 0.51%14 MSA 0.51%15 HCR-MANORCARE 0.45%16 BROOKDALE SENIOR LIVING 0.44%17 INTREPID 0.43%18 CATHOLIC HEALTH INITIATIVES 0.38%19 SUTTER HEALTH 0.36%20 ADVANCED HOME CARE 0.34%
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
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There are several methods available for PICOOC to partner and gain access to international markets
• Partner with a weight loss company
• Sell to Fitness Clubs/ Gym Chains
• Used by Home Health Providers
• Sell in Specialized Stores
• Have an affiliate program
• Partner with Amazon
• Sell at a discounted rate to members or as a supplement of a weight loss program
• Make it an official product of a fitness clubs or gym chains
• Make it the official product of home health chains
• Target consumers more likely to purchase the product
• Offer commission to affiliates that help sell the scale and spread popularity
• Sell products online to reduce costs
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
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Partnering is a cheaper and easier way to enter the US market compared to buying a company or building one.
Cost
No cost to build overseas facilities
No cost to buy out large companies
Shared costs and risks
Less overseas staff required
Complexity
Shared infrastructure
Brand image already established
Joint marketing efforts easier
Supply chain easier to manage
Local support easier to set up
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
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The roadmap for development would begin with PICOOC preparing its products for US markets, finding and negotiating partnerships and then entering into the US market
2014 2015 2016 Future
US Product preparation
Partner Negotiation Market Entry
• Converting to American units• Establishing English support• Translating APP to English• Preparing for Android market
• Finding the right partner company
• Negotiating terms• Combining resources• Joint marketing
PICOOC - Private and Confidential – AUGUST 2014INTERNAL DISCUSSION PURPOSES ONLY. NOT FOR CIRCULATION.
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PICOOCCORPORATE DEVELOPMENT – EXPANSION ASSESSMENT
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NewHuadu Business School
Mrs. Tina Zhou, IMBA AdministratorTelephoneEmail
Delivery Team
Ajinkya PatwardhanThe University of Houston, Bauer College of Businessampatwardhan@outlook.comBrandon Adsitt-WeinerState University of New York at Binghamtonbadsitt1@Binghamton.eduFrancis ChenUC Irvinechenfc@uci.eduReid ChanonTexas Tech Universityreid.chanon@ttu.edu
Consulting Manager
SP Bourgeois, Daedalus Advisory Services+1 917 719 6371 spb@daedalusservices.com
CONTACT INFORMATION
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