Friday, 22 August 2014

Report of 2014

MED-TECH



                                         Text Box: MED-TECHDescription: C:\Documents and Settings\kkj\My Documents\My Music\Entrepreneur\medivend.png           
















Executive summary

Business is just about to serve the people by providing them the best value against their money. Most specifically the business about medicine is to care people by providing them best quality of drugs within short time at the nearest spot. Med tech is the use of technology in providing medicines which are being used by people frequently.
We will create our image in customers mind by delivering them quality products and satisfy their needs properly and efficiently. On other hand for the survival of our business we will generate sales and will run our business to serve people. Our business has a great concern will social phenomena like right drug for the cure of disease. Ethically we will be responsible for the social care and societal benefits.

























                     


Contents


























BUSINESS DESCRIPTION

*      Mission

MEDCHINE IS CREATED TO SERVE ALL KINDS OF PATIENTS AT THE POINT OF CARE INSTEAD OF WAITING IN LONG QUEUES WHICH INCLUDES ALL SORTS OF MEDICINES INCLUDING PAIN RELIEVERS THAT ARE INSTANTLY REQUIRED”.

*      Vission

“We want to serve the community by providing prescribed medicine instantly”.

*      COMMUNICATION THEME

“..............................because you are precious to us.”

*      GOALS AND POTENTIAL OF THE BUSINESS


This idea is quite profitable and investor will be happily willing to invest in it. The variety of medicines provided will be increased. Also different other products available at general drug stores will be provided including Bandages, QarshiJohar Joshanda, and Strepsils. Another category of items introduced will be the cleaning liquid for lens, mouth wash and hand wash.
In the distribution field more machines at different studied locations will be installed. The location will be chose by carefully analyzing market trend, local population needs and local competition.

Business and industry profile


*      PAKISTAN PHARMACEUTICAL INDUSTRY
Pakistan has a very vibrant and forward looking Pharma Industry. At the time of independence in 1947, there was hardly any pharma industry in the country. Today Pakistan has about 400 pharmaceutical manufacturing units including those operated by 25 multinationals present in the country. The Pakistan Pharmaceutical Industry meets around 70% of the country's demand of Finished Medicine. The domestic pharma market, in term of share market is almost evenly divided between the Nationals and the Multinationals.
The National pharma industry has shown a progressive growth over the years, particularly over the last one decade. The industry has invested substantially to upgrade itself in the last few years and today the majority industry is following Good Manufacturing Practices (GMP), in accordance with the domestic as well as international Guidance. Currently the industry has the capacity to manufacture a variety of product ranging from simple pills to sophisticated Biotech, Oncology and Value Added Generic compounds.
Although Pakistan’s pharmaceutical and healthcare sectors are expanding and evolving rapidly, about half the population has no access to modern medicines. Clearly this presents an opportunity, but much more work needs to be done by the government and industry's stakeholders. The value of pharmaceuticals sold in 2007 exceeded US$1.4bn, which equates to per capita consumption of less than US$ 10 per year and value of medicines sold is expected to exceed US$2.3 B by 2012.
Pakistan is a developing pharmaceutical market, with a large population and economic progress evident, but per capita drug spending was rather low at around US$9.30 in 2007. Private spending accounts for 65% of total healthcare expenditure sourced through out-of pocket payments, international aid and religious or charitable institutions. Pharmaceutical spending accounts for less than 1% of the country's GDP, comparable to levels in some neighboring countries but above that in some of the South Asian countries. The forecast period is likely to witness the marginal strengthening of the generics sector, albeit more in terms of volumes than values. The share of generics is also likely to increase further as major drugs come off-patent in the near term, to the likely benefit of the generics-dominated local industry.
The Pakistan pharma industry is relatively young in the international markets with an export turnover of over US$ 100 Million as of 2007. Pakistan Pharma Industry boasts of quality producers and many units are approved by regulatory authorities all over the world. Like domestic market the sales in international market have gone almost double during last five years. The pharma industry is focusing to an Export Vision of USD 500 Million by 2013. In the meantime, exports are also likely to be boosted by new regional and global opportunities.
The Pakistan Pharmaceutical Industry is a success story, providing high quality essential drugs at affordable prices to Millions. Technologically, strong and self reliant National Pharmaceutical Industry is not only playing a key role in promoting and sustaining development in the vital field of medicine within the country, but is also well set to take on the international markets.

*      SOME KEY STATISTICS OF THE INDUSTRY
Companies operating in the industry
600
Number of employees
Over 100,000
Registered Drugs
47,000
Registered Molecules
1,100
R&D expenditure
1% of the profit
Average growth Rate
11%
Market share of Multinationals companies
45%
Market share of Local companies
55%
Market Leader
GlaxoSmithKline

*      MAJOR KEY PLAYERS IN THE INDUSTRY
Names
Market Share
GSK
11.60%
Sanofi Aventis
4.10%
Getz Pharma
3.90%
Abbott Lab
3.80%
Roche
3.10%
Merck
2.90%







*      KEY SUCCESS FACTORS IN THE INDUSTRY
The pharmaceutical industry is currently going through a turbulent phase. The interaction of different factors such as price regulation, decreasing productivity in the drug development, stringent monitoring by governmental agencies, and increasing competition from generic drugs put companies in that field under tremendous financial pressure. 
This leads companies to reconsider their core processes in order to find ways to increase profit and productivity. Many pharma companies reorganize, rationalize and standardize their operations. These measures usually focus on procurement and production, but also on back-office functions such as building maintenance. The key to success in these areas often lies in IT solutions. It is necessary to increase efficiency considerably and to use IT as a driver of innovation.
This requires an open system that allows the clear representation of data on site and that assumes not just the visualization of data and facility conditions, but also the monitoring and control. Additional possibilities for archiving, protocol ling and performance management, as well as for configuration of plant-components allow for quick reaction to tasks: Thanks to a uniform user interface, down-times in production are drastically minimized, costs are reduced and the productivity is considerably increased.
29 international pharmaceutical players have their facilities functioning in Pakistan. The total worth of pharmaceutical industry of Pakistan is estimated at $ 1.5 Billion. 
While highlighting the advantages of establishing the drug-manufacturing units in Pakistan, stated that the country has a low-cost base and the cost of converting generic drugs into their more famous derivatives is among the lowest in the world further pointed out that the ideal location of the country at the world’s center makes it cost-efficient in terms of freight costs. The research also addresses the following issues and facts that are critical to the success of Pharmaceutical industry on a Global level.
 - Emerging trends in the Global Pharmaceutical sector
 - An insight into market trends
 - Key players in the Pharmaceutical market
 - Factors driving growth and change in the market
 - Key Challenges and strategies
 - Competitive environment and market leaders
 - Future outlook

BUSINESS STRATEGY

*      DESIRED IMAGE & POSITION IN THE MARKET


A fully automated, ATM-style system that dispenses acute medicines is the safest and most efficient dispensing system that has not been implemented till yet in Pakistan. Therefore, it possesses a unique position in the market due to its efficient system and also having a benefit to be easily approachable to customers. It’s the only system in Pakistan that handles all the tasks involved in providing patients with their medications at the point-of-care. It has a unique image and position in the minds of doctors as well as for patients. For doctors/administrators:
·         Provide outpatient medication services to patients 24 hours a day, 7 days a week
·         Reduce pharmacy callbacks
·         Eliminate handwriting errors
For patients:
·         Quick, safe and convenient medication access
·         Similar pricing to a retail pharmacy
·         A one-stop shop

SWOT ANALYSIS


*      STRENGTHS: The company’s strength lies on these main factors:
·         Convenience; Patients receive medications at the point-of-care rather than waiting an average of 30 minutes (often when sick or injured) at a pharmacy.
·         Access; Pharmacy services are difficult for patients to obtain during evenings, weekends and holidays or for those with transportation barriers. This machine serves as a high-tech medium to get medications to patients, when and where they are needed.
·         Safety; Medications are dispensed from the machine dispenser using a bar code check system that ensures the correct medication is always dispensed.
·         Customer support; Providing 24-hour customer support.

*      WEAKNESSES
·         Low market dominance
·         Inconsistency of attractive promotions
*      OPPORTUNITIES:    The added patient convenience with this machine will expand customer database via referrals and word of mouth recommendations. Depending on utilization, goal and patient base we also have the potential to increase revenue with each medication dispensed. There is also an opportunity to grow a diversified global business and deliver more products of value.
*      THREATS:
As this industry is growing on a faster pace there will be a threat of new entrants. Buyers are not extremely brand-loyal making it easier for new entrants to enter the industry to draw customers away from us. Due to power shortage there is also a threat of proper working of the machine in the absence of electricity, a backup system should be available for power so that the working of the machine should not be stopped.

COMPETITIVE STRATEGY


The goal of any organization is to create sustainable competitive differentiation, by providing to customers what they value and want in ways that others can’t. We have focused on differentiation strategy by installing Med-Tech that that has brought a change in the pharma industry of Pakistan. In this way it would become market leader in the automated dispensing machine. The Company has positioned its products as a ‘quality products.’ It also differentiates itself on ability to provide service, convenience, accessibility and safety.






Company Product and services:


Med-tech Corporation, a service based company, has developed a revolutionary medication system consisting of the Med-tech Medication Dispenser. Med-Tech is the healthcare industry's first fully automated, ATM-style, dispenser of acute medications that dispenses directly to patients at the point-of-care. Med-tech is in business to implement methods allowing for rapid & convenient delivery of acute medications to make patients better, quicker.  We will tirelessly endeavor to make antibiotic and pain relief medications available to all people at all times. Med-tech is the first of its kind with the introduction of self dispensing medical drugs. It uses the cutting edge technology to provide the patents with 24/7 of availability of the desired general drugs. The use of this machine is quite easy and every person who is, a bit known to the ATM machine can easily use it.

*      PRODUCTS:



Medication

1
Panadol plain

Tablets & Capsules
2
Panadol extra

Syrups
3
Panadol CnF

Gel & Cream
4
Ponstan

Drops
5
Ponstan fort

Balms
6
Disprin

Powder
7
Desprol
8
Griffin
9
Incidal
10
Amoxil cap
11
Anytglox cap
12
Augmentan 325
13
Augmentan 625
14
Augmentan 1000
15
Calpol
16
Dicloror
17
Voltral
18
Caflan
19
Ansaid
20
Flagyl 400
21
Flagyl 200
22
Evion
23
Hydraline dm
24
Hydraline sugar free
25
Hydraline plain
26
Calpol
27
Calpol  6+
28
Bruffin
29
Sancoz
30
Actifid p
31
Actifid GM
32
Augmentan
33
Flagyl
34
Disprol
35
Vintogeno
36
Decloran gel
37
Polyfax eye
38
Polyfax skin
39
Betnovate ointment
40
Betvonate cream
41
Voltral gel
42
Mycecracin ointment
43
Betnesol eye drop
44
Auptachla eye drop
45
Probita eye drop
46
Lidosporin ear drop
47
Autosporin ear drop
48
Iodex
49
Vicks
50
Cicatrin powder

*     PROCEDURE:

Text Box: MED-TECH

*      DATA FLOW DIAGRAM

Step 4:
Customer will get the Purchase slip.
 
Step 1:
Customer will swap the card
 
 



Step 2:
Customer will choose the desire Product through Touch Screen
 
Step 3:
Customer will receive the medicine through the dispenser outlet after medicine barcode check.
 
                                                       










 

 

 



*      Customer benefits


v  Availability 24/7, 365 days
Med-tech provides its automated services for 24 hour a day, seven days a week and 365 days of year. Public holidays, strike or any other factor which can cause the medical store to close for uncertain period of time are in effective on this machine. The customers will not be sent back empty handed.
v  Reliability
This idea would be sold to one of main drug companies of Pakistan, functioning in Multan. Since the name of the purchaser would be on the machines, the reliability would totally lie in its end. All the procedure to implement the safety standards would be taken café of under the supervision of the company, these include, loading of non-expired material, keeping the inventory of machines up to date etc.
The machine would also be using drugs only of the renowned national companies, such as Abbot, Roche, glxo smith etc.
v  Easy to use
The user interface for this is as simple as an ATM machine. The customer is required to insert the debit-credit card in the slot, select the medication from the touch screen panel and receive it form the quick dispensing dropping box.  This easy interface helps even the layman segment customers to use the machine.
v  Debit and credit card supported
The machine is based on debit and credit card usage. These days almost every professional has a debit/credit card. It is made so to prevent loss of paper money by theft or customers usually prefer carrying single card instead of bundle of cash. The machine operates as any card swapping machine in general stores.
v  Urgent Care
The main purpose of using this machine is to entertain the customers in case of emergency when no other medical store is open in the area. Easy user interface will ensure quick and accurate delivery of required medication in matter of min and the customer would be able to use to get better.

*      Warranties and Guarantees


The guarantees lie with the purchasing company. Its goodwill and standard procedures will be totally implemented. Also, if any changes are required in the standards, the company would be disclosed with full knowledge of all its aspects.

*      Uniqueness


We provide a unique and innovative procedure of medicine dispensing which has never been used at national level before. This self selling/purchasing idea is also attractive to the customers and prevents long waiting periods at common medical stores. Also the prices are standard so that no bargaining time is wasted.

*      Patent or trademark protection

The idea of self dispensing machines in Pakistan is registered by the Government of Pakistan under section 105 of the Patents Ordinance, 2000.

Description of production process


*      Raw materials
Medications will be supplied by Roche Company, a well established firm in local medical industries. It is a multinational firm and holds respectable status regarding safety and security procedures. Raw material will be supplied by the company on the basis of the certain calculated inventory re-order level. However any brand of medicine supplied by other companies will be purchased according to the forecasted needs.


*     Costs

Machine Cost

Single Machine
Total Machines
Purchasing
1,000,000
3,000,000
Transport
20,000
60,000
Installation
2,000
6,000
Maintenance
20,000
60,000
Total
1,042,000
3,126,000


*      Key Suppliers


Instymeds would be the key supplier of the machine. Accessories will be purchased locally from a NCR ATM supplier. And for tablets we will purchase inventory from two main suppliers, Javaidbrothers medical company and Balouch brothers, other supplier would be considered on the basis of quality of the product.

Future product or service offerings


For future, the variety of medicines provided will be increased. Also different other products available at general drug stores will be provided including Bandages, QarshiJohar Joshanda, and Strepsils. Another category of items introduced will be the cleaning liquid for lens, mouth wash and hand wash.
In the distribution field more machines at different studied locations will be installed. The location will be chose by carefully analyzing market trend, local population needs and local competition.

Marketing Strategy

*     Target Market


The product we are offering is the medicine machine which will be used by our target customers for the cure of their diseases through quick availability of these machines everywhere in your city. Brand new machines will be used for this particular service to work at its best and to provide customers with quality medicines. The target market is the customers who avoid going far to get their medicines as per their busy daily routines. Those who have to wait long hours in lines at pharmacy stores and also those who don’t have transportation facilities.
So MED-TECH machine will be available to customers 24/7 to help them in emergency situations.

*      Demographic Profile:


Men and women ( Age: 20 or above)
Education:  At least intermediate
Income: 8000-10,000
Occupation: lawyers, bankers, doctors etc.
Other significant customer characteristics:
Other significant customer characteristics must be that:
·         They must be knowledgeable enough about the use and significance of certain machine
·         They have decision making power
·         They know the importance of their need and the easy access of the product/service we are providing them.

*      Customers’ motivation to buy:

MED-TECH machine is the only product that is accessible to you 24 hours a day which prevents you from waiting for log hours to get certain medicines and ensures safety and quick service just on a single click.

*      Market size and trends:


Market size will include 3 locations:
·         Multan Cantt (approx. 20000 population)
·         Gulgasht colony ( approx. 10000 population)
·         Khanewal  road ( approx. 15000 population)

*      Trends


It is the new and innovative idea in medicine industry that will help customers and its stakeholders sustain healthy lifestyle through easy reach of machines.

*      Growing or shrinking:
This new machine is expected to grow in near future because of its new and unique features, easy access, convenience, safety and quality service to customers. And because this is growing fast in western world so it is expected to develop faster in Pakistan too.

Advertising and promotion


*      Media
·         Electronic media such as television for advertising.
·         Newspaper
·         Radio
All the above mentioned media will be used for MED-TECH machine’s advertising and promotion.

Frequency of usage:

*     MED-TECH machine - The beginning of frequency treatment in energetic medicine

The MED-TECH machine is a newly developed machine in the market. The Med-Tech machine works like an ATM machine where the user enters his/her required medicine name and immediately gets it there. This machine is a pioneer today and is the basis of energetic medicine.
The medicines our customer will get will help them to kill bacteria or viruses without causing any damages. The Med-Tech machine produces possible health benefits for varied diseases, both chronic and infectious. Though the first Med-Tech machines would be containing medicines used on diseases such as fever, influenza, diarrhea and blood pressure etc.

*      PLANS FOR GENERATING PUBLICITY

We adopt three techniques for generating publicity of Med-Tech machine:
v  Special Events
Hosting a special event is our first plan to generate publicity for our product (machine). As there are many ways to generate free publicity for events that are open to the public and many websites and newspapers have special sections dedicated to community events so we will submit information regarding our product that is scheduled for publication consideration.
For example, if we are opening/launching in a new location, we might consider holding a ribbon cutting ceremony and any pre-event publicity we generate can  also boost our business, and we  will enjoy the added benefit of giving customers and prospective customers a good excuse to visit your business.
v  Public Speaking Engagements
We would be hiring schedule speakers for weekly or monthly meetings to come up with idea for an interesting topic that is related to our business offer to speak to local organizations and others.The speaking engagement itself will give us an opportunity to make contacts and let a new group of people know about our company.
v  Cause Marketing
We will create awareness about this particular machine to different hospitals and private doctors and through providing brochures everywhere showing that we are able to do something for the good of the community. Doing this will have a positive impact on our product’s image.



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*      Desired image in Market

Because of the proliferation of new technologies and new products, users are bombarded with choices and have a difficult time differentiating and selecting the best of many alternatives. Med-Tech being an innovative machine aims at recognition and selling well.
The solution to it is positioning: creating a desired image for a company and its products within a chosen user segment. The positioning process further helps Med-tech deal with such problems as limited product life cycles, limited lead times before competitors respond with equal or greater improvements, as well as the desire to control new technologies introduced during a short time period or to a particular target market. So we have already focused on the desired image of Med-tech machine by positioning it in fast growing areas (populated) of Multan such as Cantt, Gulgasht and Khanewal road.



LAYOUT

Med Tech (Location and layout)

location 1
location 2
location 3
Cantt,Beside Sultan Sons
   Opp Pizza Hut
Beside Food Festivel Opp multan pump
Demograohic analysis of location
Education
Mostly graduate people
Average graduate people
Mostly undergraduate
Status
Upper classs,Middle class
Upper Middle,Middle Middle
Middle Class
Occupation
Mostly Business Class
Job holders, Business Class
Mix
Average size of family
5 per family
5 to 7
6 to 8
Gender
55% Female 45% Male
Almost equal
52% Female 48% Male
Traffic Count
Cars per minute
35 Cars
30 Cars
50 cars
Bikes per minute
40 Bikes
35 Bkes
40 Bikes
Pedestrains per minute
50
30
35
Rental rates



Besides shop
16500 Rs per month
13000 Rs per month
13500 Rs per month
Labor Needs and supply







Lobour
2 labour








Cement
7








Sand
20ft








Crush
40ft








Bricks
1280








Iron Rod
200kg

35000






Tile
64 sq. Ft

16000






Paint
1 bucket

2000

Wiring

Glass
Wiring
40ft

4000

AC
1000

Material
26000
Glass ( Wall & Door )
29200

29200

Regular
1000

Labour
3200
Total

86200
258600


Board
1000

Labour
29200
Equipment

On requirement

Camera
300



Electricity connection

7000 Rs

Labour
700








Total
4000



Wage rates







For labor per day

400 Rs, 5 days,2 lbr






Electrician per day

700,2 days






Size reqirements







In sequare foot
6x6
6x6
6x6

Competitor Analysis

*      Existing competitors


o   Who are they? Create a competitive profile matrix.
Med-Techs existing competitors are the all main medical stores of local market, which include; Awan Medical Store, khursheed Medical store, Pakistan medical store, Pharmacy Plus and many more. Stores like these are located in all main markets of city in cluster form. Few magical stores are functioning as a subsidiary of hospitals such as City Hospital Pharmacy, Faisal Hospital Pharmacy, and CMH Pharmacy etc.

*      Strengths:
These medical stores hold a large segment of population as they offer complimentary products too such as first aid material and medical appliances for general use. Moreover they rely on face to face interaction with the customers. They tend to have strong and long relationships with customers and also uses large shop area to enhance the environment.
These medical stores have large variety of drugs available for the customers. These also include the drugs which cannot be sold without proper prescription e.g sleeping pills.

*      Weakness:
These medical stores usually lack immediate response technique in dealing with customers. This is mostly disliked by the customers. Also in face to face interaction customers can be affected negatively by the attitude of the salesperson.
Another weakness would be the closing time. All medical apart from the ones on ' Nishter Road ' are closed around 12.00 am. This causes unavailability to customers during rest of the night and till 9.00am next morning







Questionnaire for CPM


Name                          __________________
Age                             ___________________
Monthly Income      ___________________
Occupation                ___________________

How often you visit a medical store in a week?
Ans:

Rate the following factors according to your preference:
1-      Low Preference
5-      High Preference


·         Quality                                                1          2          3          4          5
·         Financial position                    1          2          3          4          5
·         Market share                           1          2          3          4          5
·         Technology/innovation           1          2          3          4          5
·         Response time                         1          2          3          4          5
·         Prices in shortages                   1          2          3          4          5








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