Transcript Issue Tree - managementconsulting

Consultancy Proposal on
Relaunch of DiagCor Self-Collection HPV Screening
for DiagCor BioScience Limited
18 September 2009
MGMT 650B: Consulting Skills for Managers (L1)
Team E
Yuun Lam (09903803)
Richard Ma (08935005)
Victor Tsang (08936073)
Chris Tsui (08936542)
Elizabeth Siu (08935615)
The Background
The test website:
selfhpvdna.diagcorlab.com
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•
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Diagcor Bioscience Limited is a biotechnology company which offers leading diagnostic services in Hong Kong. It also
produces clinical diagnostic equipment and reagents for sales overseas.
Human Papillomavirus (HPV) is the root cause of cervical cancer. In medical guidelines, women are recommended to screen
for cervical cancer every one to three years with Pap smears and HPV testing. The current practice for Women to perform
HPV screening is to go to clinics, ask doctors to collect samples by using vaginal brushes, and send the samples to
laboratories for diagnosis. Diagcor is one of the laboratories offering HPV testing to clinics.
Years before, a pathologist developed a way to detect HPV on a sanitary napkin and validated the test on hundreds of
women. Diagcor obtained the exclusive right from the developer / patent holder of this “self-collection HPV screening”
method and introduced an online self-collection diagnosis service for HPV screening. With the online service, women can
now collect samples themselves and mail in their sanitary napkins for HPV screening. The service was launched two years
ago without much promotion, and there are only a few women adopted this online self-collection HPV screening.
The Objectives
Objectives
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To develop a marketing plan for the relaunch of the self-collection HPV Test and make the service sustainable
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To achieve sales of 0.5 to 1 million HKD within a 12-months period and with a budget of HK$ 100,000 (negotiable)
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To familiarize customers with the online self-collection diagnosis test model, such that this test model can be adopted by
other diagnostic tests the company offers
Commitment of the Consultation Team to the Project
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The consultation team would sign a non-disclosure agreement with the management to obtain sensitive Information.
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DiagCor has various projects to go on at the moment. The consultation team would convince the management of DiagCor
that the project offers values to the company as a whole to obtain marketing budget for the project.
The Scope and Deliverables
Scope
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The relaunch of the self-collection HPV screening would target the market in Hong Kong only.
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The time frame to measure the success of the proposed marketing plan is 12 months.
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The target customers of the self-collection HPV screening would be women in all ages.
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The Marketing 4P’s (Product – form of service, Promotion – marketing channels, Place – sales channels, Price – pricing
strategy) will be considered for the formulation of the marketing plan.
•
Implementation of the proposed marketing plan is NOT within the scope of this project. Future projects can be initiated in
case DiagCor wants the Consultation Team to carry out the implementation portion as well.
Deliverables
A Final Presentation and a Report on the proposed Marketing Plan that includes:
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Customer and Market Analysis
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Marketing scheme with action plans
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Forecast of sales
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Scenario analysis
The Project Team Structure
In order to ensure the smooth operation of the project, the project team structure should be defined before starting the
project:
 Formation of a Steering Committee
 Appointment of a Client Project Manager
Formation of Steering Committee
For this consultancy project to be successful, it is important that a Steering Committee be formed with members including
the CEO, CFO, Marketing Function Head, the Product Owner / Manger and other senior management staff. The steering
committee will endorse the project and provide direction to the project team. Once initiated, this Steering Committee will
sustain the project, provide inputs and resolve unexpected issues encountered on the project.
Appointment of a Client Project Manager
To ensure the effective implementation of the project, it is important for Steering Committee to appoint a Client Project
Manager who will:
 Assist the consultant to assign and manage internal resources in support the project
 Be accountable and responsible for managing the process of the overall project
 Serve as a bridge between Steering Committee and the Consulting Team
The Consulting Team
Steering Committee
“The Client”
Client Relationship
Director
RICHARD MA
Project Manager
Client
Project Manager
LIZ SIU
Consultant
Consultant
Internal Specialist
VICTOR TSANG
Yuun Lam
Chris Tsui
*Consultants’ bio and qualifications are attached in the appendix:
The Approach
Progress Review
Below is our suggested approach for this project:
Phrase 1
Phrase 2
Phrase 3
Phrase 4
Phrase 5
Phrase 6
Information
Collection
Customer
Analysis
Promotion
Analysis
Channel
Analysis
Scenario
Analysis
Marketing
Plan
Formulation
Methodologies
- Interviews
- Document Request
Methodologies
- Customer Survey
- Focus Group
Output
- Expectations
- Avail. Resources
- Costing Info
- Competitors’ info
- Market trend
- Possible service form
- Service limitations
- Comparable
service info
- Past experience
Output
- Awareness of the
service
- Sensitivity to the
benefits of the service
- Preferred price level
- Preferred product/
service form
- Expected promotional
channels
- Preferred Sales
Channels
- Emotional comments
on the service
- Preferred message
the service brings
about
Methodologies
- Cost/Effectiveness
Analysis
- Competitive
Benchmarking
- Precedent Analysis
Output
- Cost of promotion
- Promotion
effectiveness
- Success cases
- Recommended
promotional channels
Methodologies
- Interviews with
channels and
partners
- Cost/Effectiveness
Analysis
- Competitive
Benchmarking
- Precedent Analysis
Output
- Acceptance of
partners / channels
on different test forms
- Cost of distribution
- Penetration rate
- Sales forecast per
channel
- Success Rate
- Recommended sales
channels
Methodologies
- Financial Modeling
- Sensitivity Analysis
Output
- Estimated P/L of the
scenarios with
different mix of price,
promotion, product
and place
- Recommended
scenario
Methodologies
- Findings aggregation
Output
- Benefits
- Costing info
- Implementation
schedule
- Action items
- Sales forecast
The Workplan Overview
Project Steps
Responsible Party
Phase I: Information Collection
1.
Arrange a Kick- off Meeting (1 hr) to introduce the overall project objectives, project
scope, approach, deliverables, and project phases to the Steering Committee and
management who will be involved in the project.
Steering Committee./
Management / Client Project
Manager / Consultants
2.
Collect and review Documents (2 days) with business information on the corporate
vision, mission, values, business strategies and product information on DiagCor HPV
Test
Client Project Manager/
Consultants
3.
Conduct 1 Interview Session (0.5 hr) with the CEO to understand his/her
expectation on the DiagCor HPV Test product. Issues including the alignment of the
product’s strategy to the overall corporate strategy, the time frame, and etc, will be
investigated
CEO/
Conduct 1 Interview Session (0.5 hr) with the CFO to understand the financial
resources, product costing, constraints and the expected return of this project.
CFO/
4.
Consultants/
Client Project Manager
Consultants/
Client Project Manager
5.
6.
Conduct 1 Interview Session (0.5 hr) with the Marketing Director to understand the
overall marketing strategy of the company, as well as the resources available for
conducting the marketing activities for the DiagCor HPV Test product. Information
regarding competitors and similar products in the market will also be collected
Marketing Director/
Conduct 1 Interview Session (0.5 hr) with the Product Manager to understand the
details of the DiagCor HPV Test product, the possible service forms, the current
situation, and the expectation on the market recognition of the product. Competitor
information and comparable products information, similar products in the international
market will also be collected
Product Manager/
Consultants/
Consultants/
Client Project Manager
Client Project Manager
The Workplan Overview
Project Steps
Responsible Party
Phase 2: Customer Analysis
1.
Define the Goals of the Customer Survey and Focus Group (0.5 day) with the
Client Project Manager to make sure the results to be obtained are clear and suitable
for analysis
Client Project Manager/
Consultants
2.
Select the Sample (0.5 day) for the customer survey and focus group by defining the
target interviewee and the sample size to make sure the survey results are
representative of the population
Client Project Manager/
Consultants
2.
Design a Opinion Survey Questionnaire (0.5 day) to collect customers opinions
regarding the awareness, acceptance, the expected media channel, etc that are most
critical to the success of this project
Client Project Manager/
Consultants
3.
Design a Focus Group Questionnaire (0.5 day) to collect customers opinions
regarding the awareness, acceptance, the expected media channel, etc that are most
critical to the success of this project
Client Project Manager/
4.
Conduct Survey and Focus Group (7 days) with the sample as planned. Data will
be collected and entered by the appointed Outsourced Surveyor.
Consultants / Outsourced
Surveyor
5.
Analysis the Survey and Focus Group Data (3 days) to illustrate the largest and
most receptive customer groups for the use of marketing plan formulation
Consultants
6.
Report the Findings (1 hr) to the Client Project Manager
Client Project Manager/
Consultants
Consultants
The Workplan Overview
Project Steps
Responsible Party
Phase 3: Promotion Analysis
1.
2.
Define the Possible Promotional Channels (0.5 day) identified by the Customer
Client Project Manager/
Survey in Phase 2, with inputs from DiagCor.
Consultants
Perform a Research (1 day) on the promotional channels used by competitors or
Consultants
similar products in the existing market
3.
Perform a Research (3 days) on the costs and effectiveness of the identified
Consultants
promotional channels to layout the foundation of marketing channel selection
3.
Select the Promotional Channels to be used (0.5 day) that fits DiagCor’s business
Consultants
strategies the most, including cost, brand image, effectiveness, and etc.
4.
Report the Findings (1 hr) to the Client Project Manager
Client Project Manager/
Consultants
The Workplan Overview
Project Steps
Responsible Party
Phase 4: Channel Analysis
1.
Define the Sales Marketing Channels (0.5 day) identified by the Customer Survey in
Phase 2, with inputs from DiagCor.
Client Project Manager/
Consultants
2.
Conduct 6 Interviews (2 days) with partners from Pharmacies, Universities / Schools,
Clinics / Beauty Centres, Medical Associations, the Government, and Clubs to find
out the acceptance of the different service forms at each potential sales channel.
2.
Perform a Research (2 days) on the costs and effectiveness of the identified sales
channels with different service forms to layout the foundation of sales channel
selection
Consultants
3.
Select the Sales Channels to be used (0.5 day) that fits DiagCor’s business
strategies the most, including cost, brand image, effectiveness, and etc.
Consultants
4.
Report the Findings (1 hr) to the Client Project Manager
Client Project Manager/
Consultants
Progress Review
1.
2.
Arrange a Review Meeting (2 hrs) with the Product Manager to sharing the initial
findings. The progress of the project is reviewed, and the feedback of the Product
Manager will be collected for the development of the Finding Presentation to the
Steering Committee
Product Manager/
Arrange a Findings Presentation (1 hr) to the Steering Committee to communicate
the major findings following the Customer and Channel Analysis, and to collect
feedbacks from the Steering Committee before developing the marketing plan.
Steering Committee/
Client Project Manager/
Consultants
Client Project Manager/
Consultants
The Workplan Overview
Project Steps
Responsible Party
Phase 5: Scenario Analysis
1.
Define Scenarios (0.5 day) with different combinations of Price, Product, Promotion
Consultants
and Place resulting from the analysis of the customer, market, product, promotional
and sales channels.
2.
Formulate Financial Models (3 days) of the scenarios defined above, taking into
Consultants
account the different sales forecasts, price levels, service costs in different forms,
promotional and sales channels, and etc, and pick the most beneficial scenario.
3.
Perform Sensitivity Analysis (2 day) on recommended scenario to identify the most
Consultants
compelling factors affecting the P/L of the suggested scenario, as well as to identify
the risks associated with the scenario.
Phase 6: Marketing Plan Formulation
1.
Develop the Marketing Plan (7 days) for DiagCor HPV Test product, considering the
Consultants
expectation of the Steering Committee, financial constraints and time frame
2.
Arrange a Final Presentation (1 hr) to the Steering Committee, highlighting the
Steering Committee
benefits of the Marketing Plan, cost, duration, implementation plan, risks and etc.
Client Project Manager/
Analysis of the market situation, marketing scheme with action plans, sales forecasts
Consultants
and scenario analysis will also be included.
3.
Submit a Final Report (1 day) on the Marketing Plan for the reference of the Steering
Committee.
Consultants
Project Schedule
The following is the estimated project schedule:
Year 2009
Activities
Wk 1
Phase 1:
Project Setup
Kick-off Meeting, Documents
Collection and Interview Sessions
Phase 2:
Customer
Analysis
Customer Survey/Focus Group
Planning, Interviews with Customers,
Data Analysis
Phase 3:
Promotion
Analysis
Research on costs, effectiveness,
competitors, and precedent cases
Phase 4:
Channel Analysis
Research on costs, effectiveness,
competitors and precedent cases.
Interview with partners and channels
Progress Review
Review meeting and Findings
Presentation
Phase 5:
Scenario Analysis
Financial modeling and sensitivity
analysis
Marketing Plan Development
Phase 6:
Marketing Plan
Formulation
Marketing Plan Presentation
Final Report Submission
Wk 2
Wk 3
Wk 4
Wk 5
Wk 6
Confidentiality
(i)
We agree that all confidential information concerning the company’s affairs which we receive from you will be treated as
strictly confidential and will not, without your specific approval, be disclosed to any party.
(ii)
We will not share the project conclusions, without your specific approval.
(iii)
In the case that we need to contact third parties, we will not name your company without your specific approval.
(iv)
We shall ensure that proper and secure storage is provided for all Relevant Information and we shall ensure that a proper
record is kept of such Relevant Information.
Payment Terms and Conditions
Work will take place primarily offsite, as well as onsite when necessary. It is estimated that this engagement as defined will take 6
weeks with deliverables/reports ready for review by October 23, 2009.
A work detail report will be completed and reviewed weekly to ensure timely delivery of requested items. We undertake to perform
any task which DiagCor Bioscience reasonably assigns to it which falls within the general description of services referred to the
“The Workplan Overview”.
Fees
In consideration of the consultant performing the services, DiagCor Bioscience shall pay the consultant fees as set out in the
following.
(i) Work Fees
Fixed cost: $50,000 for the works to be completed on or before October 23, 2009.
(ii) Profit Sharing
Should the proposed marketing plan be adopted and implemented by DiagCor Bioscience, the Consulting Team will receive 20%
of the profit generated by the Self-Collection HPV Screening Service within the 12-months period.
(ii) Break-up Fee
If and to the extent that the project fails to reach completion as a result of termination or withdrawal from DiagCor Bioscience, then
DiagCor Bioscience shall pay to the Consulting Team a fee in an amount equal to [25%] of the work fees.
Expenses
No additional expenses will be incurred
Invoices
All invoices will be sent to you upon completion of the project. All original copies of receipts will be attached to invoice. Payments
are due from 30 days of receiving invoice from us.
Appendix 1: Issue Tree
Appendix 2: Detailed Workplan