Photonic Glucose Sensor on Russian Market, страница 8

Marketing plan objectives

The marketing strategy of Cybiocare in Russian market is to enter the market and, exploiting the competitive advantage of revolutionary technology, reach the following objectives :

•   winning the government tender on glucose sensors and related expandable materials at least in 50% of subjects of Russian Federation within  first two years

•   getting the leading market position (market share in monetary terms) in Saint-Petersburg and Moscow among glucose sensor market among people with 1st type diabetes within the first year 

By means of implementing licensing as an entry mode, choosing target markets and developing appropriate marketing  mix.

The entry mode was chosen to be licensing for several reasons:

-  No large capital is needed, and this is important, because Cybiocare is small company and it is needed to cover enormously large investments into very long and complicated R&D and testing processes;

-  There is no need of direct investments into Russia, which is considered to be very risky for investments;

-  The market price of PGS can be lowered, because if the main manufacture process will be shifted to Russia the labor and transportation costs will be lowered;

-  It is better than exporting in terms of protecting technology.

The licensing agreement will be conducted with one of the Russian companies, manufacturing medical devices and the licensing package will include technical know-how, patent on PGS and trademark (the reasons of including trademark will be  described in part dedicated to product, branding).

Of course, it should be taken into account that in case of licensing the control of market is limited and it is necessary to develop control processes. The competition concern is somehow lowered by producing the core component – sensor by Cybiocare itself, but still remains considerably high.

Marketing strategy

Product

Description

Photonic Glucose Sensor tends to be the first non-invasive product on the global market. It is based on the revolutionary patented core photonic technology, which is able to non-invasively detect fluctuations in glucose levels, thus helping diabetics and their caregivers prevent hypoglycemia. PGS, strapped onto the arm, works by sending near-infrared  lights into the skin and measuring the angle at which them bounds back out from the dermis. If the angle is narrow, this means that there is less glucose in dermis, if the angle is wide, there is more glucose in dermis. When PSG detects that you may be on the onset of hypoglycemia, the alarm is triggered. The data can be easily  transferred from or to the iPhone or iPod Touch.

Benefits for the customer

-  First of all, PGS is totally non-invasive, which means that no blood sampling, needles and fear is needed;

Constant monitoring of the sugar level is a key factor in reducing the risk of the long-term complications of diabetes. The PGS is an effective solution to keep you in control of your blood glucose levels and prevent hypoglycemia;

No need of expandable materials;

Gives freedom in everyday life, because the customer no longer needs to always remember to check his sugar level and to carry with him all the necessary stuff to make it;

Maximum comfort, since the PGS itself is a about the size of a small cell-phone and is very lightweight and adheres to the skin without the need to readjust its position throughout the day;

Easy to use.

Branding

While entering Russian market, the company leaves the same branding. Cybiocare regards this strategy as efficient, since it considers Russian market as potential market for future entering with its other products. That’s why it is preferable to make consumers aware of brand and develop consumer’s loyalty and trust. Moreover, the following conditions are favorable to successful branding: