Marketing Plan Prepared for:
Prof. Jean François David
Prepared by: Livia Frincu Diana Mihai Alexandre Aymard Pauline Dreyer Xing Liu Salman Barrada Noé Nagata Maylïs Bontemps
- 14th of October 2008 -
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Table of Content Statement of Confidentiality and Non-Disclosure ..................................................................... 4 Abstract ...................................................................................................................................... 5 Our Story… ................................................................................................................................ 6 Company Presentation................................................................................................................ 8 A. Elixir Ltd ........................................................................................................................ 8 B. Organization ................................................................................................................... 8 C. Slogan............................................................................................................................. 9 Objectives................................................................................................................................. 10 Start-up Analysis ...................................................................................................................... 11 Methodology ............................................................................................................................ 13 A. Market Study ................................................................................................................ 13 B. Process.......................................................................................................................... 13 1. Representation .......................................................................................................... 13 2. Product Breakdown Structure .................................................................................. 14 3. Responsibility Assignment Matrix........................................................................... 14 4. Team Contacts.......................................................................................................... 15 C. Planning........................................................................................................................ 15 1. Work Breakdown Structure...................................................................................... 16 2. Gantt chart ................................................................................................................ 17 Market study............................................................................................................................. 18 A. SWOT........................................................................................................................... 18 B. PEST............................................................................................................................. 22 C. Open Market................................................................................................................. 24 Strategy..................................................................................................................................... 31 A. Forces analysis – Porter’s Network Model: ................................................................. 31 B. Ansoff Matrix Analysis ................................................................................................ 32 C. Segmentation ................................................................................................................ 34 D. Maslow’s hierarchy of needs........................................................................................ 35 E. Blue Ocean ................................................................................................................... 36 Marketing Mix.......................................................................................................................... 38 A. DNA analysis ............................................................................................................... 38 B. Products ........................................................................................................................ 39 1. Art of Living Pack.................................................................................................... 39 2. Alzheimer Pack ........................................................................................................ 43 3. Cancer Pack.............................................................................................................. 46 4. Youth Pack ............................................................................................................... 50 5. Bracelet/Watch ......................................................................................................... 52 C. Promotion ..................................................................................................................... 56 1. Through posters, brochures and movie .................................................................... 56 2. Through people ........................................................................................................ 56 3. Website..................................................................................................................... 57 D. Place ............................................................................................................................. 58 E. Process.......................................................................................................................... 63 F. Risks Assessment ......................................................................................................... 66 1. Ethics ........................................................................................................................ 66 2. Financial risks .......................................................................................................... 67 3. Technological risks .................................................................................................. 67
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G.
Future ........................................................................................................................... 68 1. Expanding Elixir’s business ..................................................................................... 68 2. Future Technologies ................................................................................................. 69 Finance ..................................................................................................................................... 70 A. Costs ............................................................................................................................. 70 1. Fixed Costs............................................................................................................... 70 2. Variable Costs .......................................................................................................... 72 B. Scenarios ...................................................................................................................... 72 Appendix .................................................................................................................................. 74 References ................................................................................................................................ 91
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Statement of Confidentiality and Non-Disclosure
This document contains proprietary and confidential information. All data submitted to Mr. Jean François David is provided in reliance upon its consent not to use or disclose any information contained herein except in the context of his business dealing with Elixir Ltd. The recipient of this document agrees to inform its present and future employees and partners who view or have access to the document’s content of its confidential nature. The recipient agrees to instruct each employee that they must not disclose any information concerning this document to others except to the extent that such matters are generally known to, and are available for use by the public. The recipient also agrees not duplicate or distribute or permit others to duplicate or distribute any material contained herein without Elixir Ltd’s express written consent. Elixir Ltd. retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material, and multimedia. BY ACCEPTANCE OF THIS DOCUMENT, THE RECEPIENT AGREES TO BE BOUND BY THE AFOREMENTIONED STATEMENT.
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Abstract As Shakespeare once said through its famous character, Hamlet, « we know what we are but know not what we may be ». This was the start up idea that gave birth to the concept of Elixir Health Care Center. We all remark these days that the process of classical disease care has failed us and that the appropriate answer is more and more turned into individual preventive health care. Given information now available, people can become proactive in managing their own health and remain well longer.
As a consequence, we, a group of specialists in different medical fields and management decided to launch a new concept in health care: preventive medicine genetic-based. Although the ideas which compose this concept are well known separately, the combination of the two is quite a new trend for the society. A very few actors on the market dared to combine the genetics with the traditional treatments. What Elixir intends to do is to bring together the expertise of the DNA specialists, the old (i.e. Chinese, Indian) and the new preventive medicine (nutrigenomics). Its main gold is to educate the people and to change their idea about their DNA heritage.
Our services will be, in a first phase, addressed to high income population (i.e. executives). It will consist in a genetic mapping analysis followed by a series of personalized packages ranging from simple lifestyle recommendations to biomedication, Chinese and Indian preventive medicine, psychological support and so on.
Another innovative aspect of our project consists in the usage of the RFID technology in the follow up process of our patients. Thanks to our partnership with Hewlett Packard we will be one of the first healthcare centers which will be able to track its patients’ record through this modern technology.
It may seem like God’s work our attempt to change people’s destiny, but it is not. We are just following the normal path of the medical R&D advancements and the new trends in preventive medicine in order to respond to people’s concern about living a long healthy life. As professor Gerald Gitsch from Freiburg University Medical Centre (Switzerland) said “If you know about your health, you can change your healthcare behaviour, and then doctors can prescribe medication, which can prevent you from getting these diseases.”
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Our Story…∗ Once upon a time….
Elixir is the story of a brilliant team willing to change the world while making money. It is the story of doctors sick and tired of curing people instead of preventing them form being ill.
Everything began with a discovery: the influence of our genes on our future diseases. This was known for a long time, but Maylis Bontemps is the one that discovered the place on the genes that influenced on that. She is a brilliant doctor, specialist of Alzheimer, and she did not want to see dying people anymore. So she decided to open a prevention center that would allow her to prevent people from being sick, and that would make a millionaire of her. She will be the president of the center and in charge of the Alzheimer Package.
She contacted some of her good friends from Harvard to offer them to take part into her project. She only hired the best.
First of all she contacted her best friend Livia Frincu. Livia came from Romania and made all her studies with Maylis. She is able to work 20 hours a day. She won several prizes, such as discovery of the year 2000, or best doctor of the universe 2003, 2004 and 2005. Her father was alcoholic and her mother was obese, so she saw a lot of people having bad life styles around her and is very interested in the subject. Her final thesis was on the “art of living”. She will therefore be in charge of the Art of Living Package.
Then she called Salman Barrada. Salman used to be a guru in a sect when he was young. He was arrested by the police, and feared losing his wife and son. He then came back in the right way and became a very famous researcher around the subject of “remaining young”. He believes in eternal life. He will be happy to take care of the Youth Package.
Alexandre Aymard was her third phone call. He was a psychologist for 8 years, but get tired of listening to people always complaining about their life. So he decided to cure patients that had cancer. Unfortunately for him, and even tough he was a very good doctor, he could not ∗
Please consider this part as a parody of the start-up of our project.
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cure everyone. He saw one of his patients dying, and then made a depression. Another psychologist cured him, and now he decided to prevent rather than to cure. He was therefore a very interesting partner for Maylis. He would take care of developing the Cancer Package and would also be a psychologist when needed.
Alexandre then offered Maylis to call the famous psychologist that helped him when he was depressed. Her name was Diana Mihaï. She was also from Harvard, but never met the other members of the team as she did not follow the same courses. Anyway she was well known for her competencies and for having helped very famous people such as Paris Hilton. As Diana is really fond of Alexandre, she was delighted to accept the psychologist job.
Xing Liu knew nearly all the team as she studied all the specialties: she is exceptionally gifted. As she was getting bored at Harvard, she travel the world, discovering nearly all the medicines: Chinese, Indian, Korean, Acupuncture....When Maylis called her she was in the jungle, but was happy to come back to the city’s comfort. So she agreed to be a doctor, as long as she could practice varied medicines.
Pauline Dreyer was the last person Maylis called. Her father wanted a boy so that he could become a doctor like him. He was disappointed to have a daughter, and raised her as if she was her son. He forced her to become a doctor, but she never wanted to cure people. In order to disobey her father, she decided to accept the position as a doctor and to prevent rather than cure the diseases. Nevertheless, she is good at what she does, and is always happy to help the others.
The team also needed another member that would not be a doctor, to build the partnerships with the local partners. Pauline new the right person: Noé Nagata. Even though they were divorcing after only 5 months of marriage, she knew he would never let them down. Noé’s father was well known in the region as he made a lot of conferences in all the hospitals. So Noé have a lot of contacts in the hospitals and other health institutes and will be able to be very efficient. As the job was very well paid, he accepted the position.
This is how the team was built, how the Elixir’s story began: a young team with a lot of dreams and many competencies to help them reach their goal.
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Company Presentation A. Elixir Ltd
Elixir Limited is an ex nihilo company specialized in preventive genetic healthcare with a capital amount to 200 million euros. Doctors and professors will compose the centre and so the workforce for a level of 51 % will own a major part of shares. It assures the autonomy of the centre in terms of rights to vote and thus it’s "auto-running". The last 49 % can belong to every investor worried of diversifying his portfolio and especially in medicine prevention.
B. Organization
Please note that in this organizational chart Livia is also responsible for the art of living package and Maylis for the Alzheimer Package.
Thus, as workforce, Elixir is composed by: -
4 Responsible of each pack of Elixir’s supply
-
2 Psychiatrists who are important for following the customers
-
2 Doctors who are in charge of collecting and interpreting the DNA analysis and so on
-
3 Hostesses for welcoming and helping our clients
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C. Slogan
Two slogans represent Elixir’s vision and living art: -“Know yourself», which refers to the DNA analysis provided in the packages and to the long term cure. -“Fit to your genes” in reference to the customized DNA analysis and the personalized packages.
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Objectives We have high objectives as our potential customers have high expectations from Elixir. The center is trying to be innovative in different ways and our challenge is to mix technology and disease prevention.
Corporate Objectives: - To go international: we intend to bring our new preventive concept to worldwide customers, to use medicines and technologies from all around the globe (Chinese medicine, world cuisine…) and, in the future, to implement our business in other countries.
- To create partnerships with different institutions related to the health care sector (laboratories, restaurants, Chinese medicine centers…), which will help increase our reputation. - Long term objective: to be one of the first worldwide Innovative and Genetics Based Preventive Center in 5 years.
Marketing Objectives: - To gain at least 1500 new customers per year.
- To create a brand awareness for the new proposed services in the third quarter of 2009.
- To increase market share in Austrian market segment by 3% at the end of Q2 of 2009.
- To offer a “Preventive Experience & Education” to our clients (preventive medicine solutions to a wealthy customer segment including innovative treatment and a philosophy to cure).
- To increase the patients’ awareness about DNA preventive medicine through premium quality services and to support their concern about genetic diseases through personalized packages.
- To use top new technologies and to increase the interest for the R&D related to any form of preventive care.
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Start-up Analysis The innovative concept that Elixir is trying to develop today regarding a new approach of the preventive medicine was about a year ago just a brilliant idea of Dr. Bontemps. Soon, we have realized the potential that this new concept may have if correctly exploited. Therefore, with the help of our colleagues from “Start-up Success” we looked more carefully at the way we could develop this idea. Here is the generic process that we must follow in order to transform the simple concept in continuous revenue: TODAY
The market analysis revealed that the most appropriate strategy for our new concept was a niche strategy, by focusing in a first step of our business, on “haut de gamme” products designed for wealthy people. We dare to call our approach a “one-to-one customization”.
As a consequence, the process that led us to build upon our initial idea consisted firstly in a detailed analysis of the open market in order to emphasis our competitive advantage compared with the existent preventive services competitors.
Secondly, given the fact that Elixir will mainly have the role of an intermediary between the different actors that may successfully contribute to the prevention process and the interested customers, the step of identifying the most attractive partners was also carefully elaborated in
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advance. As a result of all this upstream work, we were able to define the exact marketing products that we will propose to our clients.
As shown bellow, the approach that we used when designing this innovative health center was a system thinking approach through which we kept in mind at each step of our plan the whole business cycle with its main tools and procedures.
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Methodology A. Market Study
In order to understand the situation, we focused first on a global preventive healthcare market and step by step we reduced our analysis to other main fields: EU and especially Austrian health market. Preventive healthcare centers, services and equipment market. Genetics Research and Development (DNA). B. Process
1. Representation
This chart represents the different steps followed in the creation of our Marketing Plan.
Market Analysis Marketing Mix Product def. Data Collect.
Country choice Task breakdown
Company Strategy
Coord. & Control
Marketing Plan
Finance
Communication Plan
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2. Product Breakdown Structure Figure 1: PBS - Outlined Representation
0.0.
Preventive Healthcare Center
1.0.
Pre Project
1.1.
Roles assignment and Tasks breakdown
1.2.
Data collection
1.3
Product Brainstorming
2.0.
Marketing Plan
2.1.
Market analysis report
2.2.
Marketing mix report
2.3.
Strategy report
3.0.
Final report & presentation
3.1.
Final report draft
3.2.
Class presentation
3. Responsibility Assignment Matrix
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Role
Definition
Responsible This role conducts the actual work/owns the problem. Accountable This role approves the completed work and is held fully accountable for it. Supportive Consulted
This role provides additional resources to conduct the work or plays a supportive role in implementation. This role has the information and/or capability to complete the work.
4. Team Contacts
Figure 2: Table of team contacts Contact
E-mail
Phone
Alexandre Aymard
[email protected]
06 45 13 80 14
Pauline Dreyer
[email protected]
06 59 64 32 67
Maylïs Bontemps
[email protected]
06 10 46 82 12
Livia Frincu
[email protected]
06 13 48 29 45
Salman Barrada
[email protected]
06 86 11 33 10
Noé Nagata
[email protected]
06 11 23 38 42
Xing Liu
[email protected]
06 31 77 58 02
Diana Mihai
[email protected]
06 63 58 05 25
C. Planning
In order to achieve our project, we assigned all team mates roles (coordinator, report supervisor, research supervisor…) and set deadlines. We separated the tasks and scheduled group work periods. It was essential that everyone had responsibilities in order toy help us
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to be well organized and to avoid conflicts inside the group. With this first point we could clearly begin to concentrate the body of the project. After that, the next step was to focus on the planning and following it. You will find bellow a break down of tasks and a Gantt chart
1. Work Breakdown Structure Task
Sub Task
Responsible Deadline
Launching or Pre-project Data collection
All
01/09/2008
Choice of the country
All
01/09/2008
Product's definition
All
01/09/2008
Tasks breakdown
All
01/09/2008
Supply
Pauline
23/09/2008
Demand
Diana
23/09/2008
Implementation or marketing plan Market analysis
Marketing mix Products:
23/09/2008
> DNA Analysis
Livia
23/09/2008
> Luxury bracelet or watch
Noé
23/09/2008
> Cancer Pack
Alexandre
23/09/2008
> Alzheimer Pack
Maylis
23/09/2008
> Art of living Pack ("Art de vivre") Livia
23/09/2008
> Package Youth
23/09/2008
Price
Salman Diana,
23/09/2008
Maylis
Promotion
Noé
23/09/2008
Place (Innsbruck)
Noé, Livia
23/09/2008
Process
All
23/09/2008
Company Strategy Partnerships (Dior, Hermes…)
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Salman, Diana, Xing
30/09/2008
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Marketing
Company Management
Salman, Diana, Xing Salman, Diana, Xing
30/09/2008
30/09/2008
Ethics
Pauline
30/09/2008
Future: initial & development
Noé, Xing
30/09/2008
consolidation
All
10/10/2008
All
10/10/2008
All
10/10/2008
Final report Report:
Presentation: Rehearsal Final presentation
2. Gantt chart
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Market study∗ A. SWOT STRENGTHS
WEAKNESSES
- Skilled and efficient labour force,
- Funding - still need further resources and
knowledge of the market.
better coordination of efforts.
- High quality services. - Innovative: DNA preventive care is
- Not affordable for everyone.
combined with high technology. - Programs customized and personalized for
- Elixir infrastructure’s insufficiency.
each patient and disease. - Strong community and university partnerships. - Focus on providing services to clients within the most pleasant environments. OPPORTUNITIES
THREATS
- The implantation region is a very dynamic
- Austria is an under-populated country.
one with a geo-strategically position of Austria
- Strong competitive market: numerous
- Austria’s opportunities:
hospitals, private clinics, and spas.
High health expenditure with a strong - Traditional preventive market already
health care system. Well developed tourism = potential
developed.
clients. Good country infrastructure: accessibility.
- New preventive or curing treatment (i.e.
Good resources in health sector (human,
vaccine) thanks to medical R&D discoveries.
physical, technological). Government support to preventive care through programs and reforms. Insurance companies beginning to support and promote prevention programs. ∗
All the tables in this chapter are referenced in Figure 3.
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Opportunities Austria - a dynamic and stable economy -
Austria is one of the most secure nations in the world. Not only when it comes to its hard currency, but also to the business climate, the low crime rate and the stable legal system – all coming together to create a stable foundation your business can build on.
-
Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's.
-
Membership in the EU has drawn an influx of foreign investors attracted by Austria's access to the single European market and proximity to the new EU economies. Austria also has made progress in generally increasing its international competitiveness.
-
The outgoing government has successfully pursued a comprehensive economic reform program, aimed at streamlining government and creating a more competitive business environment, further strengthening Austria's attractiveness as an investment location. It has implemented effective pension reforms; however, lower taxes in 2005-06 led to a small budget deficit in 2006 and 2007.
-
Austria has achieved to sustain economic growth and belongs to the richest countries in the EU (see table 4 in appendix). After a period of low growth of only around 1.0% annually during 2001-2003, Austria's economy recovered again in 2004 and 2005 and grew 2.5% and 2.9%, respectively, driven by booming exports in response to strong world economic growth.
-
Austrian real GDP grew 3.3% in 2006 and 3.4% in 2007.
-
The strong economic growth helped reduce Austria's unemployment rate to 4.2% in 2007 (see table 1 in appendix). Predictions are for the economy to grow 2.2%-2.3% in 2008 and 1.4%-1.9% in 2009.
-
Since 1955, Austria has enjoyed political and legal stability (see table 2 in appendix).
High health care expenditures
-
Total health spending accounted for 10.1% of GDP in Austria in 2006 (see tables 5 and 6 in appendix), more than one percentage point higher than the OECD average of 8.9%. The United States is, by far, the country that spends the most on health as a share of its economy, with 15.3% of its GDP allocated to health in 2006, followed by Switzerland (11.3%), France (11.1%) and Germany (10.6%).
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-
Austria also spends more on health per capita than the average in OECD countries, with spending of over 3,600 USD in 2006 (adjusted for purchasing power parity), compared with an OECD average of 2,824 USD.
-
Health spending per capita in Austria increased, in real terms, by 2% per year on average between 2000 and 2006.
This was among the smallest increases across all OECD
countries during this six-year period. -
In Austria, 76% of health spending was funded by public sources in 2006, above the OECD average of 73%.
-
Spending on pharmaceuticals in Austria in 2006 accounted for 12.4% of total health expenditure, below the OECD average of 17.6%.
A strong heath care financing system -
In 2000, social security schemes financed 43% of total expenditure; government, 27%; user charges or direct payments, 19%; other private funds, 4%; and voluntary health insurance, 7%.
-
Public and non-profit-making hospitals that are accredited in hospital plans for acute care at Länder level (fund hospitals) are eligible for investments and reimbursement of services for people with statutory health insurance.
Good resources in the health sector (human, physical, technological) -
In 2006, Austria had 3.6 practicing physicians per 1,000 inhabitants (see table 7 in appendix), compared with an average of 3.1 in OECD countries.
-
During the past decade or so, there has been rapid growth in the availability of diagnostic technologies such as computed tomography (CT) scanners and magnetic resonance imaging (MRI) units in most OECD countries.
-
In Austria, the number of MRIs increased over time from about 1 per million population in 1988 to 16.8 in 2006. This is well above the current OECD average of 10.2 MRI units per million population. Only Japan, the United States and Iceland report more MRI units per capita.
-
The number of CT scanners per capita is also relatively high in Austria, with 29.8 CT scanners per million populations, compared with an OECD average of 19.2.
A strong organizational structure of health system in Austria
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-
The Austrian health system is shaped by statutory health insurance, which covers about 95% of the population on a mandatory basis and 2% on a voluntary basis. Of the 3.1% not covered in 2003, 0.7% had taken out voluntary substitutive insurance, while 2.4% were not covered at all.
The main causes of death are diseases that may be prevented by prevention -
As in other European countries, in Austria non-communicable diseases kill eight out of ten people. Cardiovascular diseases (CVD) account for almost one death in two; Austria has one of the highest mortality rates for this cause in Europe, even though it has dropped by a quarter since 1990. Ischemic heart disease is the single biggest killer, especially for women older than 64 years. Cancer mortality is relatively low for men; for women, mortality is just at the European average, although lung cancer is increasing. Cancer of the cervix has recently decreased to European levels, while breast cancer is in the same range.
- Preventive care, delivered through a country's primary care system can improve all-cause mortality and premature mortality, particularly from CVD. - To illustrate, the table 8 in appendix shows the most significant causes of death in Austria, ranked according to the frequency of (age-standardized) mortality of the international classification of diseases main diagnoses in 2003. Diseases of the circulatory system (particularly ischemic heart diseases and cerebrovascular diseases such as strokes and cerebral thrombosis) were still among the leading. A real concern by the population has been taken toward those diseases and more and more people have recourse to preventive care. This concern may be illustrated with the tentative to create a medicine for the women to prevent the cancer of the neck of the womb.
Government support to preventive care through programs and reforms -
In the form of the Healthy Austria Fund, the Federal Government has an institution which initiates and supports focused health promotion activities.
-
The Federal Government participates in international health promotion networks, including the European network “health-promoting schools” the network “healthy cities”, Mégapoles (involving capital cities of the EU Member States, a transnational network), the international network “health-promoting hospitals”, the network to promote health in companies and the European network of national institutes for health promotion.
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-
As part of the Health Reform 2005, the BMGF additionally launched a new preventive care and early detection program, and initiated the drawing up of health passes for different sections of the population.
Threats Austria – an under populated country - The population growth rate in Austria is above the EU average (3%) at a rate of 5.0% since 1990. In 2003, the total fertility rate (42) in Austria was just below the EU average of 45. The proportion of the population over 65 rose by 0.8% to 5.7% in the period 1990–2004, whereby a particular increase in the proportion of the male population over 65 can be observed.
A strong competitive market - In Austria – the development of hospitals, private clinic, spas. In addition to that, numerous international investors are already capitalizing on Austria's advantages (see table 8 for examples)
B. PEST Political Austria is a parliamentary representative democracy comprising nine federal states and is one the six European countries that have declared permanent neutrality and one of the few countries that includes the concept of everlasting neutrality in its constitution. Austria has been a member of the United Nations since 1955 and joined the European Union in 1995. So Since 1955, Austria has enjoyed political stability (see table 9 in appendix). Economic Austria is one of the 10 richest countries on the world in terms of GDP per capita, has a well developed social market economy and a very high standard of living. Until the 1980s, many of Austria’s largest industry firms were nationalized; in recent years, however, privatization has reduced state holdings to a level comparable to other European economies. Next to a
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highly-developed industry, international tourism is the most important part of the national economy. Social The life of every Austrian today is protected by a comprehensive system of social security and welfare schemes which are essentially the product of the struggle which the country's industrial workforce and its representative organisations have waged for a century and a half to safeguard and improve their working and living conditions.
As a consequence, Austrians enjoy a very pleasant social environment: rich culture, environmental quality, high living standards, security, classic or highly modern. World Competitiveness Yearbook 2007 ranks Austria number 1 in quality of life (see table 10 in appendix). Technology The importance of environment technologies as an economic factor in Austria was first analyzed in detail in 1995 by the Austrian Institute of Economic Research (WIFO) on behalf of the (then) Federal Ministry of Economics and Labor. The implementation of the EU Environment Acquis in the EU accession countries provides an additional market potential and a further challenge for the Austrian environment technology companies.
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C. Open Market 1.1 Potential market in Austria and near Innsbruck Innsbruck We plan to open our center in the city of Innsbruck in Austria. The city has 126 000 inhabitants, and 272 000 inhabitants if we take into account the suburbs. This could be our first target on the market. It is a quite big (104, 91 km²) and interesting city, and the population is growing steadily as you can see on the chart on the right.
The city receives a lot of tourists. Tourism is the most important source of income for Innsbruck, as there are many infrastructures available for tourists and a lot of activities offered during the winter as well as during the summer.
Innsbruck is well served by different transportation infrastructure. It is linked to Italy, Germany and Switzerland with freeways that allow easy access to the city center. The city also has a railway station and an airport that are both very frequented and well served. Tyrol Innsbruck is located in the “Land” of Tyrol (in grey on the map). This land has nearly 687 000 inhabitants. It is one of the most known and rich region of the country. Tourism is very dynamic in Tyrol, and the level of purchasing power increases the potential of our open market in this region. 10% of the richest inhabitants receive 20% of the total income. We can admit that those rich
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people might be interested in our center. We would then extend the target to the whole country, that is 8 million people. Lichtenstein Lichtenstein has 35 400 inhabitants. It is a very small country, but also quite rich and therefore another potential market for our center. The business community is well represented in this country which means that at least 10% of the population could be interested by our services. The GDP (nominal in 2005) is of $105, 323 per capita, and the GDP (in PPP that same year) reaches $53,951. Germany There are mainly two “Länder” in Germany that we would try to reach at the beginning of our activity. The first one is Bavaria (N°2 on the map below). It is the biggest one, and the second one in terms of population: it has 13 million inhabitants. The second one would be Saxony (N°13 on the map below). This Länder has 4 million inhabitants with Dresden as its main city. We could target 17 million inhabitants at the beginning of the activity and find our customers among the richest persons of those regions. Thereafter we would like to target the whole country, so 82 million of inhabitants. Germany is a very interesting market for us. It is the largest national economy in Europe, and 4th in the world with an important number of wealthy people. For example, the GDP/inhabitant in Bavaria is of €32 800, and of €34 000 if we take into account the whole country. The HDI is high: 0.935.
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Italy On proximity basis, our company will first target Venetia Giulia – 1,2 mil inhabitants (N° 6 on the map below), Alto Adige – 1 mil inhabitants (N° 17 on the map below) and Veneto – 4,9 inhabitants (N° 20 on the map). On a revenue basis Veneto seems to have the greatest potential given the fact that its main city, Venice is attracting numerous tourists each year, wealthy people willing to spend their money on their well being and, why not, special preventive treatment.
We
could
therefore
estimate
approximately 7 million Italian inhabitants (and foreigners visiting Italy) for our center in the customer catchments area. We would then extend the target to the whole 60 million of Italians, among which we will target the wealthiest people. Italy has a high GDP per capita (nominal): $35,386 as well as the HDI (0,941). The Gini coefficient is medium (36) and it indicates the existence of an equality gap between the very poor people and the very wealthy, again a sign of potential market for our services. Switzerland We would first target the “Canton” of Graubünden (see on the map of Switzerland) thanks to its proximity with the Austrian borders. It is one of the biggest regions of Switzerland counting more than 190 000 inhabitants with the city of Chur as its capital. We would, like for the other countries, extend the target to the whole country. It is well known that the living standards
are
very
high
in
Switzerland; as a consequence, our aim is to acquire as much as
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possible of this 7,6 million inhabitants market in the first year. Switzerland has a stable, modern, and one of the most capitalist economies in the world. The nominal per capita GDP is higher than those of the larger western European economies and Japan, it ranks 6th. The World Economic Forum's Global Competitiveness Report currently ranks Switzerland's economy as the second most competitive in the world. For much of the 20th century, Switzerland was the wealthiest country in Europe by a considerable margin. In 2005 the median household income in Switzerland was an estimated 95,000 CHF, the equivalent of roughly 55,000 USD in purchasing power parity, which is similar to wealthy American states like California and Vermont. The HDI is very high (0.955) and the Gini index is medium (33.7). Total potential market To summarize, our aim is to first target the closest geographical areas such as: the city of Innsbruck, the region of Tyrol, Lichtenstein, Bavaria, Saxony, Venetia Giulia, Alto Adige, Veneto and Graubünden. These regions represent a 25 millions people market with a high possibility of attracting at least 8% of them. We would then extend the target, (i.e. the marketing campaigns), to the rest of the regions of these countries (Austria, Germany, Italy and Switzerland), which would increase the size of the market to nearly 158 million prospects.
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1.2 Disease market on the targeted markets Cancer The number of cancers per 100 000 inhabitants is quite high and it is increasing in most of the countries (see table 11 in appendix). In Austria it reaches more than 450 persons and this number is increasing steadily. It is quite alike in Germany, where there are more than 500 persons out of 100 00 that have a cancer. The situation in Switzerland is even more surprising: the disease touches nearly 1250 persons each year. The only country where the number of cancers decreases is Italy. Cardiovascular diseases In 2006, 28 900 persons died because of cardiovascular diseases in Switzerland. This number is worse in the other countries, as it reaches 35 000 persons in Austria, 388 000 in Germany and 279 000 in Italy. This number is not improving because of increasing consumption of alcohol, and increase in obesity cases for example. Alzheimer It is estimated that 47% of people who reach the age of 85 have this disease, 18.7% between 75 and 84 years old and 3% of those aging 65 to 74. Apparently the incidence for Alzheimer is also increasing for younger persons between 40 or 50 years old. It is the fourth leading cause of death after heart disease, cancer and stroke. According to the latest research at the 8th International Conference on Alzheimer's disease and Related Disorders, Alzheimer's disease cases may triple by 2050. General improvement of health care, increase in the prevention The number of regular smokers varies a lot in time and space (see table 12 in appendix). As it depends a lot on the “fashion trends”, the number of the persons who smoke fluctuates a lot in time. Nowadays, thanks to numerous aggressive campaigns against this unhealthy habit, the number of smokers is decreasing in most of the countries. Only in Italy this number is increasing but it remains quite low (less than 23% of the population). This number is the lowest in Switzerland and it is continuing to drop dramatically (22% at present). It is the highest in Germany where it reaches 34% but here too it is steadily decreasing.
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These decreasing numbers show an increasing concern of the population for their health. All the governments have increased their prevention budgets. As you can see on the chart below, more and more Austrians have appealed to preventive check ups, the same can be observed in other countries. The increase of preventive check ups is of nearly 6% per year (see table bellow).
Potential target by income We admit that in those geographical areas, the sharing out of the income is as follows:
Our business would try to reach exclusively the high level management. We would therefore forecast to target 8% of the population in the geographical areas we have chosen.
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On our short term plan, we have 25 million of inhabitants we could reach. If we take into account that 8 % of the population should be the heart of our target, we then have 2 million of prospects. On the long term plan, we wanted to target the whole countries, so 158 million of inhabitants. We would then have 12.64 million prospects.
We represented in the diagram above our forecast for our business in several years. We decided to show different scenarios. The most plausible scenario is in fat. First of all, we plan to make a well targeted marketing campaign. This campaign will reach some of our potential customers. We think that the campaign will allow us to be known by at least 0.5% of our 12.64 million prospects target. In the best forecast it would be 1.2%. Then in the small percentage of prospects that will know us, a small part will effectively come to our center and become a customer. After the first years of our business, we think that with a good marketing mix, we could be known by 1.2% of our long term target, so 151 680 persons. Out of these 151 680 potential customers, we forecast to have 1517 customers per year, so nearly 1% of the prospects.
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Strategy
A. Forces analysis – Porter’s Network Model: The framework is important in order to see all the pressures and difficulties that Elixir will have to deal with. In this Porter framework, we may presume that the strongest force that Elixir will have to face is new entrants. They are numerous on the market and they can become a real threat to it. To attract the Government and the citizen attention, Elixir will have to take into account every critical success factor that final users seek.
Our business is highly dependent on:
•
Labor: As our business is to provide customers with personalized preventive advises about their health, we are dependent on the labor factor (8 associated preventive advisers). In order to keep our labor force motivated, loyal and satisfied, we choose to associate our critical labor force in our business. Our association model is to give to each of our preventive advisers the same number of shares. This will ensure that every
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associated preventive adviser will detain the same power inside of the corporation. Each associated adviser will be the equal of another adviser. Moreover all the associates will receive at the end of the business year a part of the corporations benefits calculated on their personal results. This is another motivation factor for them, it will create competition between them, and stimulate them to increase their personal results.
•
Science and Technology: As our core business is to deliver advises to customers based on the latest technological and scientific research, we are dependent on the reliability of this factor. We have to make sure that the technologies and scientific researches on which we base our work are the most efficient and most secure for the customer. This is why we choose to work only with top laboratories and top researchers in order to ensure the quality of our advices and products.
•
Suppliers: In organizing the supply of the corporation we choose to select a panel of different laboratories and partners in order to lower the risk that we could lack of any supply for our company.
B. Ansoff Matrix Analysis
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•
Bracelet: Based on RFID technology, the bracelet will be a storage space for the DNA information. The used technology is available and already used for several years; it is the combination of DNA information and RFID technology in a bracelet which is the new product. As we will act as an intermediary, and delegate the conception of the bracelet to our partners, we will have a low resource implication for the company which means also a lower risk.
•
Packages: Our business is to provide our customers with health preventive advice in order to avoid diseases and extend their lifespan. There are already existing products on the market to act against this diseases and aging. Our goal is to give personalized advises to the customers considering DNA analysis and other techniques and direct them to the adapted products. The targeted customer is a person which is interested by preventive medicine and has a high income. Our market study has revealed that every year there is an increasing interest for preventive medicine in our targeted area (+7%) and that 13.6 % of the 25 million persons living in the area have a high income level. This facts show us that there is a real interest for preventive medicine and that the area has a real chance to provide us with potential customers for our business.
•
DNA Analysis: DNA analysis is a tool already used in the legal field (domain of justice) (criminality, paternity, etc…) and also in research and clinical analysis. The use of this technology is accessible to a large panel of customers who can afford the price of the test which is about 300 €. Our idea is to combine the analysis with an advice phase adapted to the needs and desires of the customer. As a consequence we use an already existing technology and through our expertise and advices we will try to respond to the requirements of the customer.
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C. Segmentation
•
Considering the geographic location of Innsbruck we identified 25 million of people coming from the border regions of Austria from Germany, Lichtenstein, Italy, Switzerland and France.
•
13,6 % of this population has a high level of income and represents our target.
•
In order to define the kind of customers who could be interested in our products we started a market segmentation analysis.
•
•
We have chosen 2 factors in order to show our targeted customers: –
a “demographic” criterion, which is the income level
–
a “behavioral” criterion which is the preventive behavior
In combining both factors we can clearly define our target –
High income persons because they are the most concerned about their health and have a high preventive behavior.
–
Boomers between the ages of 45 to 55, generally healthy, who hold key jobs or run companies. We are targeting executives, entrepreneurs, men and women. Those over the age of 60 tend to come as a couple.
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D. Maslow’s hierarchy of needs
The purchase of a product or service is very often the consequence of a need. According to the theory of Maslow, the consumers have a limited number of fundamental needs, which can be organized into a five levels hierarchy. Our centre matches the following needs of this pyramid:
Physiological needs Even if our key services rely on preventive medicine, the centre provides a large range of others services through our different partners such as restaurants or hotels.
Safety and Security As the centre helps people to avoid developing some diseases, we match these needs by improving their health and so by increasing their feeling of security.
Belongingness As our services are reserved to wealthy people the fact that you access our centre makes you
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part of a certain community. We try to develop our customers’ feeling of belongingness and so their loyalty. The bracelet we give to our clients is the symbol of the community created by Elixir.
E. Blue Ocean
Prevention medicine market 90 80 70
level
60 50 40 30 20 10
st ig cu e st om iz at io n
pr e
te ch no lo gy
qu al i ty
se rv ic e
pr ic e
pr ox im
ity ac ce ss ib i lit y
0
Elixir competitors
criteria
ERRC Grid •
Eliminate:
•
Reduce:
- Accessibility
•
Raise:
- Price
- Service
•
Create:
- Prestige
- Customization
- Proximity
- Quality
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- Technology
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We have identified eight criteria on which to play in our business.
The first one is the price. We know that with our technology the price will be much higher than the one of the competitors. This is in compliance with our high income target. The second criterion is the service. We will provide a high number of services which will make our customers feel special, and make him feel that the price he is paying is really worthing. Of course the quality of our products and services will be higher than the competitors’ to justify the price. Everything we will provide will have to be state-of-the art. We will also use the latest technologies so compared to our main competitors our level of technology will be higher. The customers will feel safer and more special. Given the price and the high quality of services provided, our center will not be accessible to everyone. This complies with our strategy of making the client feel unique. Our level of proximity will be quite low as we will be geographically quite far away from some of our customers. He will come from other regions or even other countries to spend some days in our center or our partners’ hotels.
We also decided to play on two new criteria that do not exist or are slightly represented on the current market.
The first one is the prestige. While preventing themselves from being sick, our customers will feel that they are in the center of the whole process. They will have the feeling they belong to a club hardly accessible for people who do not belong to their wealthy world. They do not want to be mixed with the rest of the population.
We will also make them feel distinctive thanks to the customization criterion. Every single product we will sell will be adapted to the customer and to his genes. We will have a particular follow up and the products or services provided will be customized.
All our criteria are in agreement with our strategy and will enable us to differentiate ourselves from the competitors. The last two ones will allow us to bring something new and needed on the market, and will grant the success of Elixir.
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Marketing Mix A. DNA analysis
"Genetic testing taken together with the patient's medical history, current diagnostic procedures and counseling interviews provides an effective and comprehensive tool for the creation of individual therapy and prevention concepts."3 Professor Gerald Gitsch, Director of the Department of Obstetrics and Gynaecology, Freiburg University Medical Centre, Switzerland
Our products are defined as a set of “prevention packages” which try to combine the modern medicine with the traditional one and the living style of our customers. At the origin of each of these marketing products there is a DNA analysis.
It is well known that each one of us has a unique combination of genes, like a genetic ID. This one can be identified through a series of tests made by specializes laboratories all over the world.
The procedure is very simple. The patient is asked to provide a sample of blood, hair, skin or any other body fluid or tissue. This first step can be easily done at home these days given the increasing number of companies which propose self DNA testing kits (i.e. DNA testing, DNA Solutions, Lab Genetics, Easy DNA etc.).
The sample is afterwards sent to a specialized laboratory. Thought this analysis our specialists will first of all create the genetic map of the patient, which means identifying the exact sequence of the chromosomes that he/she possesses along with all the possible anomalies (a missing or added piece of a chromosome, an altered chemical base, a misplaced piece of chromosome etc). The results will subsequently enable other related processes such as:
3
•
An early detection of susceptibility for certain diseases even before the first symptoms
•
Individual measures for prevention and therapy for diseases
•
An optimisation of life style and therefore life quality
“Genome profile to predict diseases “, Gulf News, Dubai, March 15, 2003.
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•
A slowdown of ageing due to an individualized nutrition and choice of nutrition supplements
There is a vast range of DNA tests available these days depending on the main purpose of the procedure: predisposition for a certain disease (Figure 1), paternity identification, gene mapping, etc. Our centre will provide, in a first stage, a gene mapping analysis, which is a general but complete DNA test. Given our partnership with Swarovski Research Laboratory any other additional tests may be provided after a first interpretation of the results, if necessary, tailored on the patient’s needs.
In order to have a broader vision of the customer’s genetic heritage and the risks to which he/she may be exposed, two special trained physiotherapists will complete the DNA results with a “genealogical tree” type analysis. Through appropriate questions they will recreate the genetic history of the patient’s family which has a significant impact on the genetic map of the patient himself/herself.
B. Products
1. Art of Living Pack
The package “Art of living” is addressed to all those who, following the DNA test, the results indicated the presence of some chromosome anomalies which can lead, with a certain probability, to several common diseases such as cardiovascular diseases, obesity or diabetics. Genetics and the cardiovascular diseases Studies have shown that over 5% of all catalogued genes have some effects on the heart and that hundreds of them are expected to be essential for normal development and physiology of the cardiovascular system. In fact, there are three main factors that may contribute in different proportions to one of the form of this disease: o
Environmental Risk Factors
o
Genetic (or Inherited) Risk Factors
o
Chance
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Most cardiovascular diseases are a result of multiple abnormalities in many different genes on several chromosomes. For example, hypertension appears to be related to up to 20 genes: o
Renin-Angiotensin System
o
Kallikrein System
o
Nitrous Oxide System
o
Membrane (Ion) Channels
o
Catecholamines
o
Cardiovascular Peptide
o
Neuropeptides
This package starts from the premises that “You can’t change your genes, but you can change your behavior”. As shown above, studies have proved that the environmental factors such as the diet, the physical activities or the stress have a relatively important impact on the genetic predisposition for a certain disease. The specialists speak about a “gene-environment correlation”4 which is at the core centre of our package “Art of Living”.
“Art of Living” is a multi optional package. Given the link between the 3 main diseases that it addresses, our patients will be able to choose from the different services and goods included in this pack those who will fit the best their needs. The probabilities identified in the DNA analysis will serve as the main criteria in choosing the appropriate options. Treatment Personalized diets by nutrigenomics experts Nutrigenomics is the science that examines the response of individuals to food compounds using post-genomic and related technologies (e.g. genomics, transcriptomics, proteomics, metabol/nomic etc.).
4
Plomin R, DeFries JC, and Loehlin JC, "Genotype-environment interaction and correlation in the analysis of human behavior". Psychological Bulletin, 1977, page 309–322.
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Figure 1 - Nutrigenomics mechanism
Source:http://www.nugo.org/everyone/24023
Our nutrigenomics experts have a “system biology” thinking and a much broader view over the patient’s need in terms of diet that the classic nutritionists. They are able to create a personal diet program for each of our clients by combining his/her genetic map with the record about his/her lifestyle.
Physical activity program: “Fit to your genes” Through our different partnerships, our centre will propose to its clients a large variety of physical activity programs in order to prevent a negative correlation between the identified probability for developing a certain disease and the environmental factors, more precisely, the patient’s behaviour.
“Cuisine du monde” ateliers In “self care” optics, our centre offers to its patients the possibility to learn about the healthiest dishes from all over the world and even how to prepare them, from our specialists. In partnership with four stars restaurants, these ateliers are meant to educate our patients about how to eat healthy and how to avoid classical harmful aliments in a pleasant way and with a long term impact.
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Therapy
The stress is one of the main environmental factors that may increase the risk of each of the 3 diseases addressed by the “Art of Living” Pack. As a consequence, we intend to offer to our clients a set of therapies that could help them to prevent any damaging effects of this factor. In partnership with spas, we will have the possibility to include in this pack thermal water programs, aroma therapy, massage and sauna programs, etc.
Chinese Medicine Following the newest trend in the prevention of the cardiovascular disease in Western Medicine, we have included in our “Art of Living Pack” a traditional Chinese treatment with Chinese Herbs.
We will propose to our patients: -
Natural medication such as the Cardiotonic pill (CP), a drug which contains the medical herb Salvia miltiorrhiza bunge, widely used in Chinese hospitals for the prevention and management of ischemic cardiovascular diseases created by our colleagues at Monash University (Australia)5. Huatuo Zaizao pill - a pure natural preparation from plant
origins
for
treating and
preventing
cardiovascular and cerebrovascular diseases and apoplexy
and
hemiplegia, stroke,
poor
blood
circulation, numbness, stiffness in one's limb, difficulty speaking or deviating of eyes and mouth. Huatuo Zaizao pills improve the immunologic function of the body and tolerance of the brain tissue.
5
Dr. Paul Komesaroff of Monash University in Victoria states that, “While further study is required, there have been beneficial effects. CP appeared to exert a mild inhibitory effect on DNA synthesis and proliferation of endothelial cells. Further, CP inhibits expression of ICAM-1 and VCAM-1 in EC and inhibits proliferation of vascular smooth muscle cells.”
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-
Chinese formulas for heart qi vacuity (ex: yang xin tang, shen xian tang, etc), heart blood vacuity – ex: gan maid a zao tang: nourishes the heart and quiets the spirit, harmonises the center and relaxes tensions or urgency, heart yin vacuity –ex: tian wang bu xin dan: nourishes the blood and enriches yin, supplements the heart and quiets the spirit, heart yang vacuity, etc.
Self Care In the optics of educating our patients in order to improve the performance of the other preventive health care packs that we offer to them, our center proposes a complete kit of self care. This will contain the most efficient and easy to use self diagnostic tools, self monitoring devices and multi-media self care items. The patients will benefit from a self care training course before using this mini pack in order to insure the correct use of these devices.
2. Alzheimer Pack
Alzheimer’s disease Reminder: It is “a form of dementia, a global neurological impairment characterized by slowly progressive and irreversible deterioration of the cognitive functionsspeech, abstract through, emotion, memory- and hence the ability to take care of oneself, to identify time and place, to relate socially to others, to think and speak”6. Alzheimer & Genetics Alzheimer is not only linked to DNA. There is in many cases a relation between Alzheimer and DNA. It has been proven that Genes account for 58% to 79% of a person's risk of developing late-onset Alzheimer's.
However, there are many other risk factors such as: - Age: older people are more likely to be affected - Sex: women are more likely to be affected than men - Other: Race, profession, geographical, head injury problems
6
http://fr.wikipedia.org/wiki/Maladie_d'Alzheimer
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There is no existing preventative or curative treatment. Drugs exist, which can help alleviate certain symptoms such as agitation, anxiety, depression, hallucinations, confusion and insomnia. Treatment Therefore, we had to develop an innovating service which took into account the fact that Alzheimer is a diseased not always linked to DNA, and that no Research treatment or method to cure it. We do not predict for patients miraculous recovery but a long term treatment based on both DNA medication and self cure.
Check Up / Diagnosis This first phase consists of multiple testing, which are linked to Alzheimer’s risk factors. These are: -
Medical History
-
Mental Status Evaluation
-
Physical Examination
-
Neurological Examination
-
Neuropsychological Evaluation
-
Brain Scans
-
Laboratory Tests, etc.
All tests are done since years in hospitals and laboratories. We will work with the best of theses hospitals in Austria. Our treatment will then consist of therapy & future prevention.
Therapy In order to be efficient, we have set the treatment three major aims are: -
Improve the quality of life for the person suffering and for his or her caregiver(s).
-
Slowing the progression of cognitive decline and treating specific symptoms and/or cooccurring conditions with drug therapies.
-
Managing the behavioral symptoms of Alzheimer's.
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We have selected two relevant kinds of therapies: Chinese medicine7 In Chinese medicine, Alzheimer's disease is not yet recognized as a separate disease entity. Instead, it falls under the generic category of senile dementia. One examples representative of the standard professional Chinese medical treatment of senile dementia is liver depression qi stagnation mixed with phlegm & stasis pattern.
Symptoms: Heart vexation, easy anger, depression, oppression, and emotional dysphoria, no desire to speak, bilateral rib-side distention and pain, a dark tongue with possible static macules and slimy fur, and a bowstring, slippery pulse. Treatment principles: Course the liver and rectify the qi, quicken the blood and dispel phlegm. Indian medicine8 Research has proven that a dietary staple of India, where Alzheimer's disease rates are reportedly among the worlds lowest, holds potential as a weapon in the fight against the disease. Reporting in the Dec. 7, 2004, online edition of the Journal of Biological Chemistry, the research determined “curcumin is more effective in inhibiting formation of the protein fragments than many other drugs being tested as Alzheimer's treatments”. Future Prevention Treatment for Alzheimer's can vary from person to person. Because Alzheimer is linked to different factors, our service will take into account the risk factors by which the person is the most affected and treat him/ her following theses risks.
Non-drug approaches to treatment will be chosen with our center doctors and coaches. This can be for example a new diet, practice of a sport, relaxation classe.
7
http://www.encyclopedia.com/doc/1G1-87719988.html http://findarticles.com/p/articles/mi_m0ISW/is_2002_July/ai_87719988
8
http://alzheimerdiseaseinindia.blogspot.com/2007/04/indian-curry-may-be-next-alzheimers.html http://www.news-medical.net/?id=7047
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The centre will also provide patients with a long term Alzheimer prevention schedule. This schedule is adapted to the need and to the symptoms of each patient. This schedule will include: -
Psychological support, with psychologists specialized in Alzheimer’s.
-
Reeducation & stimulation exercises: For example, the patient will has to do on regular basis Memory refreshing exercises.
-
Lifestyle therapies: These include various strategies aimed at managing problematic behaviors, including involvement in therapeutic activities, home or "environmental" modifications, and the use of appropriate communication.
-
Maintaining overall health through regular medical care, proper diet and exercise, and using complementary health approaches as appropriate to address specific health needs.
-
Support and education for the family and caregiver: this will be done through Family Meetings. As families of individuals suffering from Alzheimer's are affected by the disease, they should meet on a regular pattern doctors in order to learn how to handle the disease.
3. Cancer Pack
Cancer & Genetics As we said before cancer is one of the most deadly diseases that is why huge researches has been engaged in order to find its main sources. Some scientists argue that the origin of that ill is genetic whereas other disagree saying that the main causes to it are environmental.
To end this quarrel, Swedish researchers studied twins comparing the frequency of their cancers. If most of the twins are both affected by the same cancer, the balance tilts for a genetic predisposition. If, on the contrary, only one is affected, the environmental influences are dominant. 44 788 twins had been studied by Paul Lichtenstein and his colleagues. Results have shown that globally a cancer on four relies on genetic factors. Three others would be the consequence of our lifestyle.
Considering this typology, the centre will provide services to know and avoid this disease: -
DNA analysis
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-
Family History’s Analysis
-
Check-up (scanning)
-
Advices & prevention
Treatment Check-up Considering the results provided by our DNA analysis and considering the level of risks’ assessment, the centre will make a complete check-up of the patients in order to know if there is no sign of tumor through9:
-
Skin exam
-
Pap smear
-
Complete Health Examination
-
Pelvic Exam
-
Testis self exam
-
Endometrial Biopsy
-
Clinical breast exam, Mammogram
-
Digital rectal exam
-
Stool blood test
-
Prostate specific antigen (PSA) blood test
-
Colonoscopy
-
Double-contrast barium enema (DCBE)
-
Endometrial biopsy
Tests will be chosen depending on the patient’s age, the level of risks and each kind of cancer’s predisposition, which is diagnosed due to DNA analysis.
These tests will be updated each year thanks to partnerships with active Research and Development Centers such as:
9
National foundation for cancer research
http://www.mamashealth.com/cancer/cancerdet.asp
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-
Agency for healthcare research and quality
-
National Cancer institute
“Biomedication”10 This section is based on the researches of Mirko Beljanki a biochemist and biologist, who spent his professional career at the Pasteur Institute, Paris, studying the causes and mechanisms occurring during gene activation, cell division and tissue development in both normal and malignant states.
His results led him to the invention of the Oncotest, which allowed him to identify many molecules having a carcinogenic potential. This Oncotest permitted Dr. Beljanski to discover two specific anticancer plant extracts. These products can be obtained from Natural Source International, Ltd11.
-
Prostabel®: it is an innovative and all natural blend of Pao Pereira (Pau Pereira) and Rauwolfia vomitoria extracts that specifically promotes the health of prostate cells, an essential factor in maintaining normal prostate function.
10 11
http://www.beljanski.com http://www.natural-source.com/francais/products.php
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-
Ladybel®: through its regulatory or normalizing effect on cellular enzymes, golden leaf Ginkgo extract enhances the natural cell repair process and helps the tissues to remain healthy, even when they are exposed to extreme physiological stresses.
-
Pao V®: it supports the body’s natural defense system, creating the conditions for normal physiological processes and, to some extent, helping the body’s own immune and detoxification system to eliminate or neutralize undesirable cells.
-
Rovol V®: it supplies a selective extract from the bark of the roots of Rauwolfia vomitoria, an African shrub traditionally used as a gentle laxative and a regulator of the hormonal system.
-
ReaLBuild®: it supports the body’s immune system to help boost the cells which naturally enhance the generation of white blood cells and platelets
Chinese medicine12 The traditional Chinese medicine obtains very good results against cancer by keeping the double initiative of prevention and treatment and by remaining always worried about the global balance of the human being, such as it is defined by the theory of the Yin Yang and such as it results from modern scientific researches. In our structure we have developed several techniques issued from the Chinese know-how such as:
-
Acupuncture and aural acupuncture: it is a technique of inserting and manipulating fine filiform needles into specific points on the body with the aim for therapeutic purposes. According to traditional Chinese acupuncture theory, these acupuncture points lie along meridians along which qi, the vital energy, flows.
12
« La médecine traditionnelle chinoise et le cancer/Prévention et traitement », Dr Yongfu Xu
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-
Natural remedies: all our well chosen herbal remedies source from experienced and authoritative experts, and have been most commonly recognized by the practitioners in this field.
-
Moxibustion: Practitioners use moxa to warm regions and acupuncture points with the intention of stimulating circulation through the points and inducing a smoother flow of blood and qi.
Indian Medecine This section is meanly based on an antique Indian remedy called Ayurveda13. Scientists at the University of Pittsburgh Cancer Institute assume that its herbal products slow down the growth of tumors. Ayurveda, a long standing Indian remedy is made up of the fruits of three plants, Harada, Amla, and Bihara that have been dried and powered.
4. Youth Pack Aging and genetics The causes of disease and aging are multiple, but at the individual level, there is a common biochemical denominator resulting from the summation of genetic, behavioral and environmental factors: oxidative stress, which is defined by an unbalance between an excess of reactive oxygen species (ROS) and the antioxidant defenses, but also the decrease of the growth hormone level in human body.
By prevention and changes in behavior which need to be reached early in life, by education we can increase the lifespan of each person. The aim of anti-aging medicine, is trying to find the roots of chronic diseases and aging, and act against it. Treatment Check up -
Test your biologic aging rate and status on four levels from the physiologic to the cellular, molecular and genetic DNA levels
13
It is said that Ayurveda is translated from ancient Sanskrit and means knowledge of life.
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-
Determine your biomarkers of aging through computer driven testing programs, and using blood levels, body composition, including tissues, fluids, and hair, and include in this scientific modeling, your emotional patterns, exercise habits, and stress factors.
-
Determine your total hormone profile more analytically and comprehensively, measuring the Precise levels of total and free hormones are determined and then quantitative ratios are calculated.
-
We assess your complete anti-oxidant status, degree of muscle atrophy, loss of strength and skin elasticity, bone demineralization, depression of your immune responses, and lowered neural reaction time. And, we can begin to measure some attributes of lowered cognitive functions such as age-related memory loss.
Medication Aging treatment may include a highly individualized nutritional, hormonal, and pharmacological therapy. Intervening in the aging process may involve a mix of anti-oxidants, hormones and free radical scavengers that stimulates your body's own maintenance and repair processes.
-
Personalized solutions: (i) to re-establish a normal redox status by appropriate supplementation of antioxidants, (ii) to reduce the role of chronic infection by micro-organisms. A rational use of antioxidative regimens, adapted to each person (there is gene polymorphism of our antioxidative enzymes), and monitored by measurements of parameters of oxidative stress in blood or urine (peroxidized lipids, oxidized DNA bases, level of reduced glutathion, etc.) has clinicaly shown good results.
- Appropriate regimen (food + supplements) should be prescribed until biochemical monitoring shows disappearance of oxidative stress and the rebalancing of the biochemical levels of the customer.
- Hormone replacement therapy which strives to recreate the youthful balance of hormones in the body shall be used. For example using DHEA, this hormone is metabolized into other hormones, supplementing with DHEA
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may allow the body to choose which hormone is needed, then synthesize that hormone from the available DHEA. The results show to have individual benefits improving life quality, lowering cholesterol, burning fat, and boosting the immune system.
Seminars and control Checking up the general health and the results of the treatment will be done once or twice a year with the customer. During this check up a general assessment of the health of the customer will be done and if necessary an adjustment of the treatment will be undertaken.
The customer will be also invited to the educational seminars that are designed to present the results of research and new products.
5. Bracelet/Watch
In addition to our products, each of our customers receives a bracelet or a watch when subscribing. The bracelet/watch given to our customer, using the latest technologies has several important functions in order to complete our services, and constitutes an added value compare to our competitors. Functions
-
The bracelet is equipped with a RFID tag stocking our customer’s personal information such as DNA analysis result, blood type, allergy, diseases in the past, recent treatments, etc. This ability enables getting better treatment by avoiding, for example, risks of allergy. Note that this function is extremely helpful in case of emergency, since it avoids the waste of time on analyzing the patient.
-
The bracelet permits the automatic updating of our customer’s data in our registered partners. This function allows our specialists to follow faster and easier our customer’s progress and needs during the treatment.
-
In our registered restaurants, the chef gets information about our members and proposes menu adapted to the treatment of each of our customers.
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We use the RFID (Radio Frequency IDentification) technology which is suitable to implant in a accessory thanks to its small size (for example Hitachi’s RFID tag measure 60 microns, that equals to 0,00006 meters, which is enough to board a 128 bits ROM) and because it can go through materials and therefore, doesn’t need to be expose directly. We use rewritable passive low-frequency RFID tags since data are updated on a regularly pace and the tag is located close to the skin. (For more information about RFID technology see figure 4) Design Our bracelet/watch is an extremely important device in order to complete our services. Therefore, we need our customers wearing it systematically in order that they can benefice our services at any moment. For this reason, we need our customer “loving” our bracelet/watch. In order to satisfy this necessary requirement, we developed a partnership with the renowned French jeweler and watchmaker CARTIER, and created a new collection especially for Elixir’s customers. This new collection available for bracelet and watch is characterize by the fact that it could be customize to our customers taste; in other words, our customers are able to create the “bracelet of their dreams” by participating to the design of their accessory.
The development of a new collection thanks to a partnership with a famous jewelry maker is not only an opportunity to satisfy personal ego, but also provide a feeling of belongingness to the Elixir community.
For men BRACELET Our customers have the choice of the form and of the material between platinum, yellow gold and white gold. The tag is integrated inside the bracelet so that the bracelet looks like a normal bracelet and is waterproof.
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WATCH We selected automatic quartz watches for extreme time precision and life expectancy and our customers have the choice of the material between: platinum, yellow gold, white gold, steel and titanium. The tag is integrated inside, therefore the watch is waterproof.
For women BRACELET Our customers have the choice of the material between platinum, yellow gold and white gold, and could personalize it by combining stones such as diamonds or precious stones. The tag is integrated inside the bracelet so that the bracelet looks like a normal bracelet and is waterproof.
WATCH We selected automatic quartz watches for extreme time precision and life expectancy and our customers have the choice of the material between: yellow gold, rose gold, white gold and titanium. The tag is integrated inside, therefore the watch is waterproof.
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Some of our customers might want to keep their current bracelet or watch and use it as their RFID tag accessory. Therefore, we are also able to transplant the RFID tag to our customers’ bracelet or watch.
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C. Promotion
We identified various place and media for promoting Elixir’s services. We promote our product by 3 channels:
1. Through posters, brochures and movie
In European airport lounges close to Austria: (partnership with the Priority Pass program) Members of airport lounges are most of the time executives who are traveling around the world and who are looking for a moment of relaxation and unwind, in their stressing environment. Those people have often an irregular life rhythm and an unhealthy lifestyle, which could, combine to the large amount of stress, lead to some diseases afterwards. Our objective is to get the attention of some of those executives, caring about their future. (Priority Pass program is the largest accessible lounge coverage worldwide with more than 500 lounges in 90 countries in 275 cities and 1.5 millions members).
In European golf courses close to Austria: Golf Course Advertising Golf is one of the activities preferred by upper income class. We try to attract people who would like to be healthy in order to be able to continue playing golf. There are 66 courses in Austria, 138 in Germany, 91 in Italy and 31 in Switzerland according to GolfCoursesGuide.org14.
In our registered partners: sports clubs, hotels and restaurants
2. Through people
Sponsorship system We promote our products through our members, since in wealthy people’s network, people are intimately associated and “everyone knows everyone”. The process is that when a member patronizes a new customer, he/she will get a 20% discount and the new member a 10% discount. This new customer could get an additional 10% discount (that means 20% in total) if he/she sponsor another member.
14
http://www.golfcoursesguide.org/europe/
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The “Ambassador” promotion An exceptional promotion will be inviting a well-known star to our center in order to attract the media’s attention. He/she won’t be paid but will benefit of our services for free.
3. Website Elixir’s website will be organized in 4 different parts: -
Corporate: company’s presentation (about us, location, financial information, etc);
-
Booking: online booking system;
-
Forum;
-
Personal account for patients (doctor’s contact, access to personal data, etc).
Our other ideas for the future are ads in some private clubs, private health center, brand shops, cruise lounge, conferences concerning genetics, gala, ceremonies, festivals, fashion shows, company (salon)…
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D. Place
The choice of the location was the result of a holistic thinking approach.
Austria enjoys close proximity to the growth markets of Central and Eastern Europe. In the last years, this country remarked itself as a pole of competencies and research especially in new medical technologies and products. Moreover, Vienna region developed into a dynamic business location, with major players in pharmaceuticals and medical technology and a roster of innovative new ventures.
With a rate of corporate income tax of 25%, Austria has one of the lowest rates of business taxation in the EU. In addition to this, there are generous deductions and exemptions for investments in research and education. R&D allowances of up to 25% (in special cases up to 35%) are available on research and development
expenditure.
Highly
innovative
companies not making profits can claim a cash premium of up to 8% of their research costs. Moreover, according to Richard Blis survey of current office rentals in 2007, location cost in Austria is one of the cheapest among major European countries (see figure 5)
For these reasons, numerous international corporations are already present in Austria, such as Baxter - the world's largest research and competence centre for the development of state-of-the art scanning technologies for blood products, Eli Lilly - responsible for planning, coordination and implementation of clinical projects for diabetes, bone diseases, cardiovascular illnesses and diseases of the central nervous system, or Novartis/Sandoz - one of the largest organizations in Austria engaged in research.
Moreover, Life Science Austria (LSA) - Innsbruck region plays an important role as a first point of contact and offers support and advice on potential start-ups, new arrival and businesses
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generally. It provides consultancy services, preparation of business plans, and financing. It offers assistance in applying to national and regional funding programs and helps open up access to private financing. All these reasons, plus the beautiful nature and landscapes of Austria and especially Innsbruck, lead Elixir to implement its first Health Cure Centre in Innsbruck’s suburb.
Concerning the offering of our services, since Elixir has mainly the role of an intermediary, our customers will receive few of our services in the Elixir Health Care Center and most of them in our registered partners. Location - Innsbruck The Elixir Center is located in the suburb of Innsbruck which is the capital city of the federal state of Tyrol in western Austria. It is located in the Inn Valley at the junction with the Wipptal (Sill River), which provides access to the Brenner Pass, some 30 km south of Innsbruck. Located in the broad valley between high mountains, the Nordkette (Hafelekar, 2,334 m) in the north, Patscherkofel (2,246 m) and Serles (2,718 m) in the south, it is an internationally renowned winter sports centre, and hosted the 1964 and 1976 Winter Olympics. The word bruck comes from the German word Brücke meaning "bridge" which leads to "the bridge over the Inn".
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The Center The Elixir Health Care Center is located at Katzenbründlweg 2, in the nature, surrounded by mountains and trees, however with a good access, at only 20 minutes from downtown.
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The Elixir Health Care Center is a building of 3 stages with a total amount of 600 m² including:
Elixir
600 m² of premises 1 conference room 1 bar 7 rooms Parking Costs: 79200 € (+19800 € guarantee) cleaning: 36500 per year Solar energy panels: 30 m² 33.000 € Deco: 20.000
- a welcome room
- 2 doctor cabinets
- 2 psychologist cabinets
- 2 multi-purpose rooms
- a research center for RFID technology
- 2 wifi connected rooms
- 2 relaxation rooms for massage and hamam
- 2 seminar rooms
Access & transports Innsbruck Hauptbahnhof, the most important railway station of Innsbruck and Tyrol, is one of the most frequented railway stations in Austria. The Austrian east-west railway crosses the south-west route through the Brenner pass, connecting northern Italy and southern Germany. From the Railway station, the route to the Center is about 8.2 km which corresponds approximately to 20 minutes by car.
Innsbruck Airport provides services including Frankfurt, London, and Vienna. There is 9.1 km between the airport and the Center, which is approximately 25 minutes by car.
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Highway: Innsbruck is located along the A12/A13 corridor, providing freeway access to Verona, Italy and Munich, Germany. The A12 and A13 converge near Innsbruck, at which point the A13 terminates. The distance from the exit of the highway to the Center is 8.5 km that is approximately 25 minutes by car.
The town's meter gauge tram-network consists of two city-lines and two lines serving the surrounding area — the Innsbrucker Mittelgebirgsbahn to Igls and the Stubaitalbahn into the Stubaital until Fulpmes. The network will be enlarged during the coming years to reach Hall in Tirol in the east and Völs in the west. The trolleybus service will be abandoned as the tram network is enlarged. Numerous bus lines serve the inner city and transport to surrounding areas. At the end of 2007, the Hungerburgbahn — a funicular service to the district of Hungerburg — has been inaugurated. (For all the access maps see figure 6)
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E. Process
FIRST CONTACT 1. The customer contacts the center and asks for a DNA analysis. 2. Our center proposes him a DNA analysis starting from a sample of hair, skin, blood, etc. The patient chooses the type of sample that he want to send, and makes an appointment to come to our center. We will indicate him the nearest pharmacy where he may buy the test kit or we will propose him to send it from our center. 3. To have the analysis results from the Medical University Innsbruck, it will take approximately 3 weeks. During this time the client has 2 choices: first, he may come to our center only when the results will be ready. Secondly, he may choose to earn some time and to come earlier to our center in order for our specialists to already create his family history and life style map.
« FIRST DAYS PACK » It represents a three days welcome pack. 4. Thanks to our partnerships with Hotel Hilton Innsbruck and Schwarzer Adler Romantik Hotel Innsbruck, our clients will fell our presence from the first contact with Innsbruck. The hotels’ transfer cars will be at their service not only for the regular airport transfer but also in order to bring them to our center.
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5. The first appointment will consist in mapping the family history and the life style of our clients. This information along with the DNA test results will represent the basis of the next steps in our process. 6. The patient will fell free to discover the city of Innsbruck or the entire region as a tourist in order to combine the health care process with the pleasure of discovering a part of Austria. He may benefit from the little relaxing activities which will take place inside our center such as massage, hammam or seminars on the importance of the DNA analysis today, tips about traditional Chinese preventive medicine, environmental factors which influence our genetic heritage. In this way, our customer may make himself an idea about the packs that we intend to present him after the analysis. 7. Meanwhile, the results will be already interpreted by our specialists and a personalized pack will be ready to be proposed to our client. 8. Our intention is to make all the “First Days Pack” clients permanent clients of our center, but the patients will also have the possibility not to go further in the preventive process, at least not at that moment. As a consequence, we engage ourselves to keep the information on their genetic map for a period of 10 years in order to facilitate an eventual return of the clients to our center.
“FIT TO YOUR GENES STEP” 9. Once the client decides to adopt the preventive attitude and to “fight against his destiny”, we present to him the options that fit the best the results of his DNA, family history and lifestyle analysis. He will therefore have a large number of choices which will all be in prevention optics (see the part “Products”). Three spa around Innsbruck: Interalpen-Hotel Tyrol, AlpenMedHotel Lamm, Alpenresort Schwarz, two fitness clubs: Holmes Place Health & Fitness Clubs, Fitness First, and Hotel Hilton’s restaurants will be at the disposal the customer. 10. All these clients will receive a RFID bracelet or watch develop with HP and Cartier. This will allow us to have a close follow up of our patients in order to permanently be able to respond appropriately to their needs. This technical device will have several other functions as listed in the part “Bracelet” of the present marketing plan. 11. Periodical check-ups will allow us to up date the medical record of our clients and, in the same time, to measure the performance of our treatments.
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To resume, the customer will follow the following process:
For a complete list of our partners and the process on which they interfere see Figure 7 in appendix.
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F. Risks Assessment
After a risk assessment study, four main risks were identified as being the main potential sources of threats for Elixir. They are as follows:
1. Ethics An important debate was launched from the very first DNA analysis concerning the use of the highly confidential information identified during these types of tests15. Many questions seem to be left without an answer in this delicate problem.
Intellectual Property and privacy: may genetic data be used for curative purpose of other people?
- Regulation of genetic tests: The law is another problematic aspect when talking about the ethics of a genetic mapping test. There is no unique legislation or international code of ethics for genetics.
- The economic side of the genomic medicine: The following questions are raised: What will be financial costs and societal benefits of integration of genomics into health care? Will society ultimately save money through increased productivity of a healthier population? How can we ensure that all benefit from genomic medicine and that it is not exclusive?
- Re-evaluation of the health care system: Most health care professionals have insufficient knowledge about genomic medicine and there are too few geneticists and genetic counselors. Therefore, how should the current health care system should be adapted to the genomic medicine?
- Genetic non-discrimination: There is no legislation that prevents genetic discrimination by employers and health insurance providers. Employers may seek to use genetic testing to identify someone who could turn out to be less productive or a strain on the company health plan. Insurance companies may refuse clients found to be at high risk of certain conditions.
15
http://www.genome.gov/17516574
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- Reimbursement by health insurers: Nowadays, there is no health insurance reimbursement for genetic services.
- RFID: see appendix
2. Financial risks Our main financial risk is that the technology used and our preventive treatment could be very expensive. We will need a minimum of 1000 clients in order to cover in a first 30% of our start-up costs (see finance tables). Therefore, the promotion of this new concept of preventive medicine will play a very important role and it will be based on specific targets and complete explanations of the services that we propose. As a consequence, we aim at a relatively rapid and constantly increasing return on our investment.
Linked to this first risk, the implementation or the RFID technology may create cost concerns to our partners as well. They may be at first reluctant to this kind of investment because of its cost. We have therefore to prove them that this technology may lead to return on investment.
3. Technological risks
Innovating technologies can be used by our competitors. Elixir has therefore to elaborate a business intelligence strategy in order to stay technologically ahead.
Medical Research and Development We may assume that one day one day, a treatment will be found for curing diseases linked to DNA. For example, an attempt has already made create an Alzheimer vaccination. If this happens, we will have to develop new strategies in order to keep our customers.
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G. Future
1. Expanding Elixir’s business
Elixir aims to increase its number of customer by 48% in 10 years time. We predict a potential market size of 1500 customers in 10 years time in Europe. In order to respond to this demand, Elixir would create a new site on another European country. Spain, according to several criteria, is a potential country we could build our next Elixir center.
Spain is well located to welcome customers from Portugal, France, Italy, Andorra (tax heaven country), Gibraltar, the Maghreb countries and of course Spain, which could have been reticent to our services because of the distance which separate them from the first Elixir center in Innsbruck. The construction of a new site there could interest and attract new customers. Spain has also an ideal climate and the sea, which differentiate it from Austria. We could then develop new services using these specific features (geographical strengths). Moreover, Spanish are more and more preoccupied by their health and have lot of interest concerning prevention. Another point we could emphasis according to the NATO studies, is that in our potential interested countries, the inequality of revenues are high (see Figure 8 – Gini Index). Also, with 741 hospitals and the pharmaceutical industry ranked 7th in the world and 5th in Europe, Spain is a well equipped country in medical infrastructure.
The growing private healthcare industry is an interesting point too. Above the 741 hospitals, 442 are private ones. The private industry which is realizing 22% of the total treatment and hire 50000 physicians, showed a 2.7% growth in 2006. This growing interest for private industry could be seen as a threat for us because of the high competition on the market, but on the other hand, it could be seen as an opportunity because it means that there is a large potential that we could exploit.
Also, we keep on improving our service by our research and development section.
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2. Future Technologies16 Although medical Research is one of Elixir’s main concerns, we believe that technology too has an influence on medicine practice. More important than surgery and drugs, technologies can revolutionize the medical profession.
More than only implementing RFID, Elixir will also do Research and Development in order to use the newest technologies, such as Telemedicine. Telemedicine & E-Health17 Telemedicine is a rapidly developing application “where medical information is transferred via telephone, the Internet or other networks for the purpose of consulting, and sometimes remote medical procedures or examinations”18.
This technology is used in innovative health centers. Linked services such as internet websites and magazines already exist to advise both patients and customers in treatment with this technology. It will be an added value for Elixir.
Telemedicine will aim to: - Easily keep in touch with our patients easily and partners (internet). - Democratize our services. Technology usually lowers the barrier for the sale of goods and services. Therefore, our center and doctors would most likely be able to more easily and effectively treat a larger group and offer cheaper treatments. - Implement a less bureaucratic medicine. New technologies will enable doctors to delivery of vital medicine without bureaucratic delays or unnecessary paperwork.
16 17
18
http://www.fortherecordmag.com/archives/ftr_052305p22.shtml http://www.ncbi.nlm.nih.gov/books/bv.fcgi?rid=dcp2.section.632 http://en.wikipedia.org/wiki/Telemedicine
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Finance A. Costs
1.
Fixed Costs - Personnel Charges
Maylis
70.000
Livia
60.000
Salman
45.000
Xing
45.000
Pauline
40.000
Diana
40.000
Alexandre
40.000
Noé
38.000
Hostess (x3)
60.000 438.000€
- Rent (infrastructures, leasing equipment...) Wage
79.200
Guarantee
19.800
Cleaning (per year)
36.500
Solar energy panels: 30 m²
33.000
Decorating equipment
20.000 188.500
- Technology: 11 laptops
5.500
1 server
8.000
7 pc
3.500
Wifi
3.000
Phones
1.000
Other (wire, software, etc…):
1.500 22.500
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- Marketing Costs Offline promotion: Posters: Design & print:
6.000
Diffusion in Airports:
4.000
Diffusion in Golf club:
3.200
Diffusion through partners:
0
Brochures: Design &print (3000brochures, 0.5euros/brochure) Diffusion:
1.500 500
Public relations: Sponsorship system: (20customers, 2000euros)
40.000
The “Ambassador” promotion:
10.000
Online promotion: Website Website creation:
6.000
Maintenance:
4.000
Extra Communication agency fee:
10.000 85.200€
As we rent the premises we have no provision for depreciation
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2.
Variable Costs
- External Charges Pessimistic
Average
Optimistic
Cost per Unit
(632)
(1012)
(1500)
Bracelet
1.000
632.000
910.800
1.275.000
Spa
2.000
1.264.000
1.821.600
1.574.000
tests
800
505.600
728.640
1.020.000
DNA analysis
300
189.600
273.240
382.500
1.500
948.000
1.366.200
1.912.500
3.539.200
5.100.480
6.164.000
Complementary
Hotels
For each unit, cost per unit decreases as the number of customers increases (economies of scales)
B. Scenarios
Pessimistic
Average
Optimistic
Total fixed costs
734.200€
734.200
734.200
Total variable costs
3.539.200
5.100.480
6.164.000
Total costs
4.273.400€
5.834.680€
6.898.200€
Per client
6.762€
5.765€
4.599€
Price paid per customer
7.000€
6.500€
6.500€
238€
735€
1.901€
150.600€
743.320€
2.851.800€
Retained Earnings
100000
400.000€
2.000.000€
Total profit (2)
50.600€
343.320€
851.800€
Profit per customer Overall profit (1)
3 scenarios: pessimistic, average and optimistic Total profit (2) represents the profit, depending on the scenarios (after taking out the charges per customer and retained earnings)
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3. Return on Investment
Scenarios Return on Investment (%)
Pessimistic
Average
Optimistic
1,01%
6,87%
17,04%
The return on investment will be positive for the investor in the 3 scenarios. 4. Return on Investment – Long term
Scenarios
Pessimist
Average
Optimistic
Initial investment
5.000.000
5.000.000
5.000.000
Y1
5.060.000
34.332.000
85.180.000
Y5
5.120.720
235.737.245
1.451.126.480
Y8
5.182.169
1.618.666.218
24.721.390.713
Extra: Media Plan
Media
Jan
Feb
Mar
Apr
May
Jun
Jul
Print
3000
2000
500
500
500
500
200
Radio
500
300
200
TV
4000
500
500
500
500
Aug
30000
Public
Sep
Oct
Nov
Dec
500
500
250
250
20000
Relations/ Publicity Online
5000
500
500
500
500
500
500
500
500
500
Most costs occur at the launch of the activity (Jan)
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Appendix Figure 1: Some Currently Available DNA-Based Gene Tests • • • • • • • • • • • • • • • • • • • •
• • • • • • • • • •
Alpha-1-antitrypsin deficiency (AAT; emphysema and liver disease) Amyotrophic lateral sclerosis (ALS; Lou Gehrig's Disease; progressive motor function loss leading to paralysis and death) Alzheimer's disease* (APOE; late-onset variety of senile dementia) Ataxia telangiectasia (AT; progressive brain disorder resulting in loss of muscle control and cancers) Gaucher disease (GD; enlarged liver and spleen, bone degeneration) Inherited breast and ovarian cancer* (BRCA 1 and 2; early-onset tumors of breasts and ovaries) Hereditary nonpolyposis colon cancer* (CA; early-onset tumors of colon and sometimes other organs) Charcot-Marie-Tooth (CMT; loss of feeling in ends of limbs) Congenital adrenal hyperplasia (CAH; hormone deficiency; ambiguous genitalia and male pseudohermaphroditism) Cystic fibrosis (CF; disease of lung and pancreas resulting in thick mucous accumulations and chronic infections) Duchenne muscular dystrophy/Becker muscular dystrophy (DMD; severe to mild muscle wasting, deterioration, weakness) Dystonia (DYT; muscle rigidity, repetitive twisting movements) Emanuel Syndrome (severe mental retardation, abnormal development of the head, heart and kidney problems) Factor V-Leiden (FVL; blood-clotting disorder) Fragile X syndrome (FRAX; leading cause of inherited mental retardation) Galactosemia (GALT; metabolic disorder affects ability to metabolize galactose) Hemophilia A and B (HEMA and HEMB; bleeding disorders) Hereditary Hemochromatosis (HFE; excess iron storage disorder) Marfan Syndrome (FBN1; connective tissue disorder; tissues of ligaments, blood vessel walls, cartilage, heart valves and other structures abnormally weak) Mucopolysaccharidosis (MPS; deficiency of enzymes needed to break down long chain sugars called glycosaminoglycans; corneal clouding, joint stiffness, heart disease, mental retardation) Myotonic dystrophy (MD; progressive muscle weakness; most common form of adult muscular dystrophy) Neurofibromatosis type 1 (NF1; multiple benign nervous system tumors that can be disfiguring; cancers) Phenylketonuria (PKU; progressive mental retardation due to missing enzyme; correctable by diet) Polycystic Kidney Disease (PKD1, PKD2; cysts in the kidneys and other organs) Adult Polycystic Kidney Disease (APKD; kidney failure and liver disease) Sickle cell disease (SS; blood cell disorder; chronic pain and infections) Spinocerebellar ataxia, type 1 (SCA1; involuntary muscle movements, reflex disorders, explosive speech) Spinal muscular atrophy (SMA; severe, usually lethal progressive muscle-wasting disorder in children) Thalassemias (THAL; anemias - reduced red blood cell levels) Timothy Syndrome (CACNA1C; characterized by severe cardiac arrhythmia, webbing of the fingers and toes called syndactyly, autism)
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Figure 2: Example of the test procedure
- Epithelial cells of the oral cavity are collected by rubbing inside the patient's mouth with sterile swabs. The samples are forwarded to our partner DNA lab in Vienna, where it is analysed for polymorphisms - The lab results are interpreted in combination with anamestic data provided by experts working on the case - The genetic testing, taken together with the patient's medical history, current diagnostic procedures and outcome of counselling, leads to the charting of individual therapy and prevention concepts for the patient.
Source: “gulf news”, 2003 article
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Figure 3: Market Study A) SWOT + PEST Table 1: Low rate unemployment: 4.2% in 2006
Table 2: One the lowest rate inflation among OECD
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Table 3: High expenditure on R&D, Austria is always finding new solutions and innovations
Table 4: 28% of GDP, superior to the European average: Austria, one of the richest country in the EU
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Table 5: Health expenditure as a percentage of GDP, OECD countries, 2006
Table 6: Health expenditure par capita, public and private expenditure, OECD countries, 2006
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Table 7: Austria endowment in health care system Indicator
Value (year)
Dentistry personnel density (per 10 000 population)
5.00 (2006)
Number of dentistry personnel
4,467 (2006)
Number of nursing and midwifery personnel
53,782 (2006)
Number of Pharmaceutical personnel
5,076 (2005)
Number of Physicians
30,068 (2006)
Nursing and midwifery personnel density (per 10 000 population)
66.00 (2006)
Pharmaceutical personnel density (per 10 000 population)
6.00 (2005)
Physicians density (per 10 000 population)
37.00 (2006)
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Table 8: Leading causes of death (ICD-10), age standardized per 100 000 inhabitants, 1970-2004
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Table 8 – Examples of competitors The Germany's Fresenius Group, who builds and participates in the management of hospitals such as Vienna's General Hospital and the Trauma Hospital in Linz, as well as health resorts, senior centers and thermal spas including Oberlaa, Laengenfeld and Geinberg. One of its newest projects is the thermal spa Laa an der Thaya, which will be expanded by 2008 to include a health and wellness academy as well as a center of competence at the polytechnic university level and a 30-to-40 million euro four-star hotel. An additional area of activity is to develop projects in health-related tourism, including the current "Aqua Dome" thermal spa project in the Tyrolean Oetz Valley, which will open in 2004 and in which VAMED is an investor. VAMED is also a player in the ongoing wave of hospital privatizations.
The private hospital company Helios, based in Fulda, Germany, specializes in the operation of acute care clinics, employing around 13,000 workers in 22 clinics in Germany and Austria. The Kitzbuehel Hospital in Tyrol was acquired by Helios in June 2001, and is up to now its only foreign subsidiary, employing around 220 workers in the hospital and a nursing home. The hospital was renovated in eight phases and equipped with radiological and sleep laboratories. Helios has invested 3.5 million euros in the facility to date and plans additional expenditures of around one million euros.
Table 9 – Country Risk
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Table 10 – World Competitiveness Yearbook 2007
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B) Open market
Table 11 – Cancer Incidence
Table 12 – Daily smokers statistics
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Figure 4: More information about the RFID technology Passive RFID tag Passive RFID tags have no internal power supply. The minute electrical current induced in the antenna by the incoming radio frequency signal provides just enough power for the CMOS integrated circuit in the tag to power up and transmit a response. Most passive tags signal by backscattering the carrier wave from the reader. This means that the antenna has to be designed both to collect power from the incoming signal and also to transmit the outbound backscatter signal. The response of a passive RFID tag is not necessarily just an ID number; the tag chip can contain non-volatile data, possibly writable EEPROM for storing data. Passive tags have practical read distances ranging from about 11 cm (4 in) with near-field (ISO 14443), up to approximately 10 meters (33 feet) with far-field (ISO 18000-6) and can reach up to 600 feet (183 meters) when combined with a phased array. Basically, the reading and writing depend on the chosen radio frequency and the antenna design/size. Due to their simplicity in design they are also suitable for manufacture with a printing process for the antennas. The lack of an onboard power supply means that the device can be quite small: commercially available products exist that can be embedded in a sticker, or under the skin in the case of low frequency (LowFID) RFID tags. Issues of RFID technology (in french)
L’usage du RFID pour l’identification des individus encore problématique Un rapport encore au stade d’examen au Département of Homeland Security (DHS) vient contrarier le consensus apparemment partage entre industriels et le DHS selon lequel la technologie d’identification par fréquences radio RFID serait la voie à suivre pour l’identification et le suivi des individus. Alors que le Département d’Etat a déjà commence a diffuser des passeports munis de puces RFID et prévoit de diffuser des cartes aux visiteurs du Mexique, du Canada et des Bermudes munies de puces RFID lisibles a 6 mètres et que l’usage de RFID soit prévu pour les cartes d’authentification dont tous les employés fédéraux doivent être munis, ce rapport souligne les failles a la fois au niveau de la confidentialité et de la sécurité que poserait l’usage de RFID. Il rejoindrait en ce sens l’avis de nombreuses associations de défense de la vie privée. Par ailleurs, ce rapport corrige certaines idées reçues. D’abord RFID n’accélère pas le traitement de l’identification d’un individu puisque la technologie est juste un moyen de transmettre des données, elle n’assure pas seule l’identification : une autre opération doit être effectuée, comme une authentification biométrique, plus lente. Ensuite la sécurité contre la falsification apportée par l’usage de la cryptographie n’est pas propre a RFID mais peut être apportée par de simples données imprimées. En l’état, il déconseille l’usage de RFID pour l’identification et le suivi d’individus. Le rapport est disponible sur le site web du DHS mais certains craignent qu’il ne soit jamais valide car gênant pour les industriels et ceux qui se sont déjà lance dans l’adoption de la technologie. Le porte-parole du DHS a nie toute volonté au sein du DHS de tuer le rapport : il serait en cours d’examen. http://asso.objectif-sciences.com/L-usage-du-RFID-pour-l.html?decoupe_recherche=rfid http://www.dhs.gov/xlibrary/assets/privacy/privacy_advcom_rpt_rfid_draft.pdf
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Figure 5: Office rental cost in Austria
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Figure 6: Getting to the Center - Access & transports Innsbruck Hauptbahnhof, the most important railway station of Innsbruck and Tyrol, is one of the most frequented railway stations in Austria. The Austrian east-west railway crosses the south-west route through the Brenner pass, connecting northern Italy and southern Germany. From the Railway station, the route to the Center is about 8.2 km which corresponds approximatly to 20 minutes by car.
Innsbruck Airport provides services including Frankfurt, London, and Vienna. There is 9.1 km between the airport and the Center, that is approximately 25 minutes by car.
Highway: Innsbruck is located along the A12/A13 corridor, providing freeway access to Verona, Italy and Munich, Germany. The A12 and A13 converge near Innsbruck, at which point the A13 terminates. The distance from the exit of the highway to the Center is 8.5 km that is approximatly 25 minutes by car.
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The town's metre gauge tram-network consists of two city-lines and two lines serving the surrounding area — the Innsbrucker Mittelgebirgsbahn to Igls and the Stubaitalbahn into the Stubaital until Fulpmes. The network will be enlarged during the coming years to reach Hall in Tirol in the east and Völs in the west. The trolleybus service will be abandoned as the tram network is enlarged. Numerous bus lines serve the inner city and transport to surrounding areas. At the end of 2007, the Hungerburgbahn — a funicular service to the district of Hungerburg — has been inaugurated.
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Figure 7: Our partners •
Before coming to Elixir Health Care Center
DNA analysis: - Medical University Innsbruck •
“FIRST DAYS PACK” – Services in Innsbruck
Hotels: - Schwarzer Adler Romantik Hotel Innsbruck - Hotel Hilton Innsbruck Restaurants: - Hotel Hilton Innsbruck: Guggeryllis Restaurant - Schwarzer Adler Romantik Hotel Innsbruck’s restaurant Sport centers: - Hotel Hilton Innsbruck - INJOY International Sports •
“FIT TO YOUR GENES STEP” – Services outside Innsbruck
Restaurants: Hotel Hilton’s restaurants Austria - Hotel Hilton Vienna Danube: Symphony Restaurant - Hotel Hilton Vienna: S’PARKS Restaurant - Hotel Hilton Vienna Plaza: Plaza Restaurant Germany - Hotel Hilton Munich City: Lowenschanke Restaurant - Hotel Hilton Munich Park: Tivoli Restaurant Italy - Hotel Hilton Milan: Pacific Milano Restaurant - Hotel Hilton Molino Stucky Venice: Aromi Restaurant Switzerland - Hotel Hilton Bazel: Wettstein Restaurant - Hotel Hilton Zurich Airport: Market Place restaurant Sport centers: Holmes Place Health & Fitness Clubs and Fitness First (for Italy only) Austria - Holmes Place Health & Fitness Clubs Linz - Holmes Place Health & Fitness Clubs Salzburg - Holmes Place Health & Fitness Clubs Vienna Germany - Holmes Place Health & Fitness Clubs Berlin - Holmes Place Health & Fitness Clubs Düsseldorf - Holmes Place Health & Fitness Clubs Hamburg - Holmes Place Health & Fitness Clubs Köln
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- Holmes Place Health & Fitness Clubs Lübeck Italy - Fitness First Milano - Fitness First Parma - Fitness First Torino - Fitness First Verona Switzerland - Holmes Place Health & Fitness Clubs Geneva - Holmes Place Health & Fitness Clubs Lausanne - Holmes Place Health & Fitness Clubs Oberrieden - Holmes Place Health & Fitness Clubs Zurich Spa: Austria - Interalpen-Hotel Tyrol - AlpenMedHotel Lamm - Alpenresort Schwarz •
The “Bracelet/Watch”
RFID tag: - HP Bracelet/Watch design: - Cartier
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Figure 8: The Gini Index
The Gini index The Gini index demonstrates inequalitities in revenue per country. Portugal
0.385 (deciles 15
– quartiles 8.0 - 1997)
France
0.327 (deciles 9.1 – quartiles 5.6 - 1995)
Italia
0.36
(deciles 11.6 – quartiles 6.5 - 2000)
Andorre Tunisia
0.398 (deciles 13.4 – quartiles 7.9 - 2000)
Morocco
0.395
Algeria
0.353
by NATO 2005
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References http://www.ornl.gov/sci/techresources/Human_Genome/medicine/genetest.shtml http://en.wikipedia.org/wiki/Genetic_testing http://www.genosense.at/EN/Patienteninfo.html http://www.lifesciencesdirectory.at/index.php?file=search.php http://www.lifesciencesdirectory.at/index.php?file=show.php&ref=117 http://books.google.fr/books?hl=fr&id=0pHihB78KrUC&dq=chinese+medicine+cardiovascular+dise ases&printsec=frontcover&source=web&ots=At4qiWwB-T&sig=S6nqmR3ICviFTBf6dt3CIjRKJs&sa=X&oi=book_result&resnum=5&ct=result#PPA58,M1)
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