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Peanut Allergy Testing (P.A.T)

By Group 1 : Shekinah Adebanjo, Henrique Menezes Aguiar, Darshan Doshi, Davi Bezerra Januario, Ipsita Saluja, Jonathan Savoir, Ho Wu  

+The PAT

A pocket size peanut detection tool to diagnose the presence of peanut allergens in cooked and processed foods

2 components: Disposable strips: capable of quickly reacting with harmful

allergens Tester: Microprocessor tests the reaction of the allergen on

the strip

Disposable Strip is our core competency

No existing substitutes

+Limitation of the PAT

Cannot yet be used to detect peanut allergens in… Solid insoluble foods

Results are specific only to the specific area of the food tested. Cannot be guaranteed for the untested areas of large food portions.

+Strategy

+SWOT Analysis

Strengths•Government Cooperation•Strong Partnership•Innovative product.•First Mover

Weakness•First Mover Risks

•Lack of Data about Consumers

Opportunity•Growing Awareness about allergy•Government Funding Expansion•Experience and Scale Lower Cost

Increased Customer Satisfaction

Threats•New entrants in the market

•Outsourcing Risk

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+Risks in Japan

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Benefits: Size of Economy & Economic Growth

Costs: Corruption & Lack of Infrastructure & Legal Cost

Risks: Political Risk & Economic Risk & Legal Risk

+ 7+Risks in Japan

Political Risk: political forces will cause changes in a country’s business environment that adversely affects the profit and other goals of a business enterprise.

Economic Risk: economic mismanagement will cause changes in a country's business environment that adversely affects the profit and other goals of a business enterprise.

Legal Risk: a trading partner will opportunistically break a contract or expropriate property rights.

+Financing

Total development costs of 20’000’000 Euros

Long term loan from Bank of Japan through Bayer’s entity at 0.3% a year

P.A.T. device entering the market at 20’545 Yen (≈ 180 Euros)

P.A.T. strip entering the market at 137 Yen (≈ 1.2 Euros)

Break Even at year 5 of sales

+Sales Forecast

Target market: 60% of the peanut sensitive Japanese population

2% market penetration in Year 1

Year 1 2 3 4 5

Main Tester

Sales 16,800 19,680 22,632 23,764 23,764

% Increase

20% 15% 5% 0%

Disposable Strips

Sales1,640,000

3,608,000

5,871,200

8,247,560

10,623,920

% Increase

120% 63% 40% 29%

+Sourcing

The tester and the strips will be both outsourced

Use Bayer’s existing supply chain and set of approved suppliers in Germany

Independent Licensing: The microprocessor and strips will be licensed to two independent producers Specialized manufacturing facilities Maintain privacy of the product as a whole to avoid

competition

Transportation costs

+Promotion

Advertising on television

- Japanese people watch television 3 hours any given weekday, 3.21 hours on a Saturday and 3.44 hours on a Sunday

Advertising in Lifestyle magazines

Partnership with Bayer

Promote products to patients

Promote products to Doctors

PULL PUSH

+Questions and Answers