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Copy of Medizone International (MZEI)

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Peter Kakalecz

on 8 December 2013

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Transcript of Copy of Medizone International (MZEI)

Analysis
Hospitals paying huge amounts for HAIs
Issues with communication
Segmentation
Strategy: Market Penetration
Segmentation Basis: Benefits
Primary Target: Hospitals
Secondary Target: Other industries with sterility issues

Additional markets include:
Hotels
Veterinarian clinics
Recreational facilities
eg. Sports locker rooms
Strategic Alternatives
Recommendation
"Communication is Key" alternative
Most promising for revenues to support the costs
Establishes a presence, using the "back-door" method
Important not to use too much direct marketing
Addresses company weaknesses
Lower cost than product development through R&D
Capital required for developing AsepticSure further will come
Response to sudden rise in sales
eg. 10 hospitals simultaneously want 5 machines
Easily implementable
Has a sustainable competitive advantage
Eliminates competition
Reducing risk of a loss of sales
Medizone International (MZEI)
External Analysis
Opportunities
International standard for sterility is 6log
Surgical equipment currently cleaned at 6logs but rooms cleaned at 2logs
Bacteria still spread
If technique is 2log kill
99 percent (1 out of 100 left)
4logs leftover from international standard
10000 per cubic mm
Colonies will grow back within 8 hours

Internal Analysis
Strengths

Staffing adequate to support and initiate sales
High-knowledge Doctors and engineers
Large network
Various hospital managers
Through team of credible staff
Many corporate partners
Viva Productions
Sani-marc
Problem Statement
Confusing and complex science terminology
Capital issues
Lack of adequate staffing
Replacing existing systems
Managing these systems
Kaitlin Shannon 100881513
Neville Dick 100855595
Scott Romualdi 100883367
Andrew O'Connor 100892888

About Medizone
B2B firm, publicly traded
Role: Manufacturing, quality assurance, testing of quality, technical support, training, R&D
Focuses on disinfection technology, AsepticSure®

AsepticSure®
Vapour based fumigant systems for the disinfection of healthcare surfaces and spaces

System uses an ozone based process
Combination of 80 ppm ozone with 1% hydrogen peroxide vapour

High level of disinfection at ≥ 6log reductions in bacteria and spores
During a 30-90 minute exposure

Test organisms include: E. coli, P. aeruginosa, as well as C. difficile and B. subtilis spores, MRSA
More Labs,
Less Bugs!
Focuses on expanding the company, before addressing contracts with hospitals
Hire more staff
Acquire more testing chambers, more incubators and other testing equipment
Also acquire more space for storage (distribution purposes)
This not only helps with establishing efficient distribution, but also puts Medizone in a much better position in preparing for its response to sales
eg. If 10 hospitals simultaneously want 5 machines
eg. If an investor company seeks to invest in equipment, and needs a constant supply of Medizone labeled peroxide bottles
Requires HUGE amounts of capital
Communication is Key
After EPA approval, temporarily stop developing AsepticSure
Switch focus to new staffing for acquiring and responding to contracts
Since investing in Medizone replaces current cleaning systems, the buying decision likely more involved
In the pitch, it is about more than just understanding the science
Hospital board should feel they need to invest
Also need to understand how to manage new system
The fix: Hire team of salesperson(s) to increase communication and a separate team as training staff
Currently a training program, but lack of trainers
Use patents/results/certifications/etc. to communicate efficacy
Distribution will become clearer to investors
Requires Medizone to put AsepticSure development on hold
May lose sales
Slows down growth process
Efficient and Efficacious
Hospitals may be skeptical in supporting such an investment
May not see ability in technical support
Particularly regarding specialized staff
Medizone may be required to either become or develop a system for technical support
The fix: product development of AsepticSure
Invest capital in R&D
eg. Such that little or no technical support is needed (training purposes)
eg. If kill at 7logs
eg. If simultaneous runs throughout many rooms
Requires much capital, expertise
Also threatens many jobs
Hospital staff
Implementation

Prices have not yet been released to the public
Radio frequency identifier (RFD) for humidifier
Electronic identifier the number (like a code)
Unless code is there, the machine will not allow procedure to continue
Guarantees sales of branded peroxide
Eg. $2 profit margin on each bottle
Astronomical potential for revenue generation
Revenue generations will be the result of Medizone's two main options:
AsepticSure starters kit
Medizone branded bottle of hydrogen peroxide
AsepticSure® Starter Kit
Kit includes one machine, three ozone destruct units, sealing tape, ten bottles of premixed peroxide and one commercial grade dehumidifier
Approximately $125000CAD per kit
Medizone refers to purchase of this kit as the "Sales Model"
Promising in countries with privately owned hospitals
Based in Kingston, Ontario
Distributors are in charge of sales to hospitals
eg. Sani-marc
Under contract
Sales done by order and contract
Contact done by phone or email
Price
Place
Timeline
Begin hiring process for training staff
Begin hiring process for salesperson(s)
Weaknesses
Lack of staff
Distribution process
Inefficient
Lack of marketing techniques in contract process
Pitch usually performed purely by scientists/doctors
Lack of people who communicate the value as a necessity for investors
Threats
Existing systems in contract
Lack of discretionary money for countries with publicly owned hospitals
Negative connotation associated with Ozone as a sterilization tool
Product
Must be careful of direct marketing
Create promotional videos
Develop training program, with training staff
For companies looking to invest
eg. Hospital cleaning staff
Allows those companies to also train other employees (indirect marketing)
Opportunities through high-profile media outlets
eg. BBC, CBC, CTV, etc.
Personal selling

Promotion
As Soon As Possible
Train salesperson(s) and begin pitching to main hospital boards
Hotel chains as well, but as extra (for now)
Attempt to release results of major breakthroughs
Bedbugs and the Wall Street Journal
MRSA Outbreak and the Washington Post
Aim to do so in a manner that suggests product works, but publicity is not the main goal
ie. Main objective is to save lives, not make money
Peroxide Bottles
Within This Year
Down the Road
Work on increasing efficiency of training programs
Hire more staff
Potentially switch focus to the "More Labs, Less Bugs" alternative
When profits are supportive
Realize how AsepticSure can help other markets
Hotels, vet clinics, recreational equipment
They generally follow the lead of hospitals, anyway
Full transcript