3. Market Revision
Year 1 2 3 4 5
Projected No of
Canada physicians 66,405 67,593 68,782 69,970 71,158
Market Size for A.D. rating 0.69 45,819 46,639 47,460 48,279 49,099
Web-based A.D
Technology
Factor 0.63 28,866 29,383 29,900 30,416 30,932
Adjustment for
adoption rate 4,089 6,515 10,375 16,519 26,293
Year 1 2 3 4 5
Projected No of
Ontario physicians 24,115 24,567 25,019 25,471 25,923
A.D. Rating 0.69 16,639 16,951 17,263 17,575 17,887
Market Size for
Web-based A.D
Technology
Factor 0.65 10,816 11,018 11,221 11,424 11,626
Adjustment for
adoption rate 1,532 2,443 3,894 6,204 9,882
Year 1 2 3 4 5
Proportion of
adoption 14.17% 22.17% 34.70% 54.31% 85.00%
Adoption Rate Adoption rate in Effective
year 5 85.00% (datum) growth 500% (datum)
Annual
growth of
adoption
Years 4 (datum) rate 56.51%
4. Expectations & Impact
KEY FINANCIAL PROJECTIONS (in thousand CAD)
Advertisers’
Reasons
Y1 Y2 Y3 Y4 Y5 expectations
End-Users 60% 1,200 1,913 3,050 4,859 7,740 •Service needs to
•Service must be be tested
Revenues $ 242.40 $ 463.71 $ 739.32 $ 1,177.82 $ 1,876.18 attractive
•Unknown market
Expenses $624.38 $655.60 $780.25 $868.72 $1,239.41 •Steady growth response
Net Profit ($381.98) ($191.89) ($40.93) $ 309.11 $ 636.77 •Stable online •See to believe
Cash Balance before community attitude
financing ($381.10) ($191.39) $41.33 $354.87 $681.98
Financing $ 400.00 $ 300.00
Cash Balance after financing $ 18.90 $ 108.61 $ (48.68) $ (45.85) $ 281.26
Ending Cash (Accumulated) $ 30.90 $ 139.51 $ 90.83 $ 44.98 $ 326.24
KEY FINANCIAL PROJECTIONS (in thousand CAD)
Academic Detailing
Reasons
Y1 Y2 Y3 Y4 Y5 expectations
End-Users 25% 500 625 781 977 1,221 •Academic Detailing
needs to be
Revenues $ 242.40 $ 151.50 $ 189.31 $ 236.82 $ 295.97 promoted in Ontario
Expenses $624.38 $639.99 $752.75 $739.01 $767.75 •Conservative number •Unknown market
of enrolments response
Net Profit ($381.98) ($488.49) ($563.44) ($502.19) ($471.78)
Cash Balance before •Conservative rate of •Service needs to
financing ($381.10) ($487.99) ($481.17) ($456.43) ($426.57) growth be displayed &
tested
Financing $ 400.00 $ 300.00
•Limited resources
Cash Balance after financing $ 18.90 ($187.99) ($571.19) ($857.14) ($827.28) have been allocated
for similar programs
Ending Cash (Accumulated) $ 30.90 ($157.09) ($728.28) ($1,585.42) ($2,412.70) in the past
5. Business Strategy: Current Situation
Market Opportunity
•New market in Ontario
•Almost 10,00 physicians who would potentially sign up
into the service within the next 5 years
•Around $ 2 million in revenues a year in advertising
services for hosting a stable community of health care
professionals
•Rate of familiarity with technology is 65%in Ontario
•Online CME adoption rate is the fastest in N.A. (85%)
Strengths Weaknesses
•Extensive primary and secondary market research
•MacMedia has no track-record of any product or
service for the health sector
•Expert advice and monitoring from the School of
Engineering and other McMaster departments or
•No feedback from real use of the service
programs
•Unknown market response
•Academic Detailing programs have been already
deployed and successfully evaluated
•Opposed views and expectations about market size
and growth
•The Family Medicine Dpt. is open to cooperation as a
supplier of A.D knowledge
•Lack of Capital
•McGraw Hill Canada is open to cooperation under
certain conditions as a sponsor/advertiser
6. Business Strategy: Strategic Decisions
It is necessary to:
•Raise Capital
•Build a prototype & run a pilot education program in Ontario
•Promote the service
•Create interest among advertisers to invest in the channel
Options for Raise Capital
Venture Capitalist
•No track of success
•Very risky
Early Stage Investment
Prototype & Pilot Education
•Ministry of Research and Innovation-Ontario Do it alone
Government
•Knowledge Development and Exchange – •No Academic Detailing knowledge & materials
Health Canada •No credibility
•Microsoft Pharmaceutical and Life Sciences •No access to physicians who receive CME
Innovation –Private company
Establish Partnership with Academic
Detailing Ontario
Options for Bringing Advertisers
•Access to A.D. expertise and materials Launch the system and look for advertisers
•Access to detailers or educators
•Access to physicians •It can take time to convince
•Expose physicians and advertisers to the •Payment for the operating costs will be delayed
prototype and real system
•Bundle MacMedia system with A.D for funding
Invite advertisers in the early stages
•Allow to compare the benefits with other
advertising options
•Allow to identify the advertiser with the channel
7. Benefits from Partnership
A potential formal agreement with the ACADEMIC DETAILING SERVICE ONTARIO and
MCGRAWHILL CANADA to start the project will lead to the following benefits:
MACMEDIA ACADEMIC DETAILING MCMGRAW HILL
ONTARIO
•Disseminate Academic
Detailing in a broad scale
•Build track of success •Reach prospective customers in
•Deliver CME and credit a more personalized way
•Confirm assumptions on education in a more efficient
market size and growth manner •Tailor the message for the type
of user
•Evaluate the influence of A.D
on physicians’ prescribing •Access to a captive audience all
behaviour the time
This is Win-Win deal for al parties
8. The Business Plan
MACMEDIA’s Mission Statement
•MacMedia’s mission is to serve as a channel for research institutions that
disseminate medical knowledge. MacMedia helps these institutions in their
quest to reach the healthcare sector by using online supporting tools.
•By positioning as an online channel, MacMedia builds permanent online
community of HCPs which become attractive for advertising services.
MACMEDIA delivers your medical knowledge
and messages fast and efficiently
9. The Business Team
Business Development:
•Luis Quiroz
Bachelor of Industrial Engineering, Master in Business Administration,
Master’s Candidate of Engineering, Entrepreneurship and Innovation at McMaster
Technical Expertise:
•Mohammed Amjad
Graduate from the MEEI Program
CEO of ISDN Technologies. Telecommunications & Energy
10. The Organization Structure
CEO TBA
Advisory Board
•Dr. David Potter
•PharmD. Lisa Dolovich
•Dr. Kamran Sartipi
Operations Business Administration
Commercialization
R&D Development & Finance
Mohammed Luis Quiroz TBA TBA
Amjad
11. Operations: The location
Location: Hamilton
The city is center of Hamilton Health Science (HHS) group of
Hospitals:
•Chedoke
•Hamilton General
•Henderson General
•McMaster Children's Hospital
•McMaster University Medical Centre
•The Juravinski Cancer Centre
-CBRT (Community Based Residency Training): It is provided by McMaster
Family Practice
-CBRT provides residents with the opportunity to train in a ”typical”
community practice
*Proximity to almost 4,200 physicians (Hamilton-Niagara-Waterloo-
Wellington-Brampton)
The Ontario Physician Human Resources Data Centre
12. Products & Price Structure
Products Cost per year
Subscription & Banner* $ 2,000
(Basic Service)
Value Added Services**
In-session advertising $ 36,000
(short infomercials before or after the (3 times a year per physician x
session) $12 per infomercial)
Customized emails $ 60,000
(Surveys, discounts, specials offers, (10 times a year per physician
product list/information delivered to x $6 per customized email)
personal accounts)
*Renewable annual subscription. Banner visible to all subscribed physicians
**Packets of 1,000 physicians
13. Products Costing: ABC
Existing Costs
Web-Conferencing Annual
Existing costs Activities are
Subscription
are allocated allocated
Internet Services proportionally proportionally
EBM Annual Subscriptions into activities into products
Physicians Databases Organization’s Activities
Annual Tax Services Development & Testing
Products contained
Office Supplies Service Maintenance/Availability in an advertising
Telephone Services package
Operations Administration
Amortization Office Rental Banners
Sales Activity
Furniture Depreciation In-Session Advertising
General Administration &
Amortization of Equipment & Finance Customized emails
Software
Accounting Soft Depreciation
Trademark Amortization •Whenever more than one product is produced. It is advisable to
Payroll IT/Programmers - Fully calculate the cost of each product by estimating the proportion of
Loaded effort/resources allocated specifically to that product.
Sales Salaries - Fully Loaded
•Direct costs become into fixed costs. Fixed costs are allocated proportionally
Office Administrator - Fully
Loaded the making of the products
Manager - Fully Loaded
•In this case, the only variable costs are those of sales commissions
14. Product Costing for Year 4
(in thousand CAD) Banners In-session advertising Customized emails
Total Unit Cost Total Unit Cost Total Unit Cost
Sales for Year 4
(Units) 29 12 12
$ $
Sales $ for Year 4 58.31 $ 2.00 419.82 $ 36.00 $ 699.70 $ 60.00 $ 1,177.82
$ $
Variable Costs 2.92 $ 0.10 20.99 $ 1.80 $ 34.98 $ 3.00 $ 58.89
$ $
Fixed Cost 127.61 $ 4.38 316.59 $ 27.15 $ 316.59 $ 27.15 $ 760.80
$
Profit ($) ($72.22) ($2.48) 82.23 $ 7.05 $ 348.12 $ 29.85 $ 358.13
Profit (%) -123.86% 19.59% 49.75% 30.41%
Even Break Point = Fixed Cost / (Unit Price - Unit Variable Cost)
Break-Even Point
67 9 6
(Q=)
To encourage advertisers to purchase a package, the service charges less on banners
Therefore, banners subsidizes in-session advertising and customized e-mails
15. The Competition
Academic Detailing MacMedia Academic
Collaboration Detailing CME
Other CME programs Currently, do not use other Traditional CME
party to disseminate knowledge
Pharmaceutical Customer Relationship
companies Management (CRM) companies E-detailing
Products E-detailing Academic Traditional
Services Detailing CMR
Detailing session via Web- X X
conferencing
Printed Educational Materials X X
(Unbiased sources)
Product Description X
(Commercial)
For Physicians
Sales Reps Appointments X
CME Credit X X
Drug sample ordering X
For Academic Intelligence System X
Detailing
For Pharmaceutical Intelligence System
Companies X
16. Competitors’ Response & Strategy
Type of Competitor Type of threat Most Likely Response
Other CME programs Very Low Create partnership
E-detailing &
Customer Relationship Very Low None
Management (CRM) companies
Other businesses offering solutions Emulate MacMedia but may create
Very Low
& support for Academic Detailing switching costs for A.D.
Competition Strategy
•Initially focus on Academic Detailing Collaboration in Ontario
-Gain experience, build credibility, create success
•Move quickly to establish partnership with other CME programs
-The first mover creates switching costs issues for the future
•Use the experience, credibility and success to propose similar solutions to Academic Detailing Programs
in other provinces to use the existing platform and enhance collaboration
•Plan for other ways to update HCPs beyond pcs and laptops
•Explore new markets. Example: universities in North America
17. The Path for Growth
New Markets:
Universities
New Services:
Wireless
Devices
Target other
A.D. programs
in other
provinces
Other CME
Programs
A.D. in
Ontario
18. The Business Model
Facilitation of
Partnership Online sessions
& material distribution
Academic
Detailing MacMedia Physicians
Academic
Collaboration Detailing
channel
knowledge Promotion of
Products &
Pays for services
Advertising
service
Advertisers
19. Customer Acquisition Strategy:
Physicians
Stage Pilot Education Program Full Service
for 2 years
•Personal Visits
(Recruiter/Promoter)
•Online invitations
(Physicians DBs)
Strategy •Online invitations
(Physicians DBs)
ONLINE REGISTRATION
Performed by MacMedia Academic Detailing Collaboration
•Focus on residents to create a strong •A.D. will be in charge of the online
critical-mass and word-of-mouth invitations and registration information
•Aim at Community Based Residency •Promote intensively the use of system
Training Centres forum
Description (state-of-the-art technology)
•Provide incentives to encourage
•Promote service to the HCPs in the referrals. Example: one personal web
surrounding areas page for the physicians who invited a
number of new subscribers
•Promote the use of system forum
20. Customer Acquisition Strategy:
Advertisers
Stage Pilot Education Program Full Service
for 2 years
•Employ full-time
•Personal Visits
Salespersons
(Recruiter/Promoter)
Strategy •Advertising charges are applicable
•Service at no costs
according to yearly contracts
ONLINE REGISTRATION
Performed by MacMedia MacMedia
•Try the service •Add new features.
Description
Example: wireless
•Suggest improvements
21. Go-to-Market Plan
Business and Service Marketing Promotion
Conferences & Organizations Media
Journals & Newsletters
Conferences
•The Canadian Medical Association
•Public Health Without Borders Journal
Annual Meeting. San Diego.
California •Archives of Internal Medicine
•Events of the Canadian Advertising •ACP Journal Club
Research Foundation (CARF)
•Local Academic Detailing Newsletters
Organizations
•Canadian Advertising News
•The Canadian Agency for Drugs and
Technologies in Health Website
•Association of Canadian Advertisers
Completed and functional for Pilot
Educational Program beginning 2010
22. The Path to the Market
Full
Service
-Launch to
the market-
Pilot
Education
Program
- Year 2-
Pilot
Education
Program
- Year 1-
Visual &
Functional
Prototype
- 6 months-
23. Marketing Estimate Budget
In Canadian Dollars
Description Year 1 Year 2
For academic detailing
Conferences Fees $1,500 $3,000
Travel Expenses $1,200 $2,400
Publications in Journals $2,200 $2,200
Association Fees $1,300 $1,300
For advertising
Conferences Fees $1,500 $3,000
Travel Expenses $3,000 $4,000
Publications in Journals $3,500 $3,500
Association Fees $2,600 $2,600
Recruiter for physicians
Salary (Fully loaded) factor 2.5 $31,250 $62,500
Related Expenses 15% $4,690 $9,375
Recruiter for advertisers
Salary (Fully loaded) factor 2.5 $31,250 $31,250
Related Expenses 15% $4,690 $4,690
Total $ 88,680 $ 129,815