1. + Peanut Allergy Testing (P.A.T) By Group 1 : Shekinah Adebanjo, Henrique Menezes Aguiar, Darshan Doshi, Davi Bezerra Januario, Ipsita Saluja, Jonathan Savoir, Ho Wu

2. + The PAT A pocket size peanut detection tool to diagnose the presence of peanut allergens in cooked and processed foods 2 components: Disposable strips: capable of quickly reacting with harmful allergens Tester: Microprocessor tests the reaction of the allergen on the strip Disposable Strip is our core competency No existing substitutes

3. + Limitation of the PAT Cannot yet be used to detect peanut allergens in… Solid insoluble foods Results are specific only to the specific area of the food tested. Cannot be guaranteed for the untested areas of large food portions.

4. + Strategy Joint-Venture Bayer Yearly investment of 1.8 billion in healthcare research. Production in Germany Supply-chain within Japan 40 percent share Extensive license contracts Competitive advantage Stronger foothold in Japanese market Wider public at lower cost. Brand value of Bayer Barriers to entry Registration procedures Premarket approval Transportation costs Corporate tax

5. + SWOT Analysis Strengths Government Cooperation Strong Partnership Innovative product. First Mover Weakness First Mover Risks Lack of Data about Consumers Opportunity Growing Awareness about allergy Government Funding Expansion Experience and Scale Lower Cost Increased Customer Satisfaction Threats New entrants in the market Outsourcing Risk

6. + 6 + Risks in Japan 6 Benefits: Size of Economy & Economic Growth Costs: Corruption & Lack of Infrastructure & Legal Cost Risks: Political Risk & Economic Risk & Legal Risk

7. + 7 + Risks in Japan Political Risk: political forces will cause changes in a country’s business environment that adversely affects the profit and other goals of a business enterprise. Economic Risk: economic mismanagement will cause changes in a country's business environment that adversely affects the profit and other goals of a business enterprise. Legal Risk: a trading partner will opportunistically break a contract or expropriate property rights.

8. + Financing Total development costs of 20’000’000 Euros Long term loan from Bank of Japan through Bayer’s entity at 0.3% a year P.A.T. device entering the market at 20’545 Yen (≈ 180 Euros) P.A.T. strip entering the market at 137 Yen (≈ 1.2 Euros) Break Even at year 5 of sales

9. + Sales Forecast Target market: 60% of the peanut sensitive Japanese population 2% market penetration in Year 1 Year12345 Main Tester Sales16,80019,68022,63223,764 % Increase 20%15%5%0% Disposable Strips Sales1,640,0003,608,0005,871,2008,247,56010,623,920 % Increase 120%63%40%29%

10. + Sourcing The tester and the strips will be both outsourced Use Bayer’s existing supply chain and set of approved suppliers in Germany Independent Licensing: The microprocessor and strips will be licensed to two independent producers Specialized manufacturing facilities Maintain privacy of the product as a whole to avoid competition Transportation costs

11. + Promotion Advertising on television - Japanese people watch television 3 hours any given weekday, 3.21 hours on a Saturday and 3.44 hours on a Sunday Advertising in Lifestyle magazines Partnership with Bayer Promote products to patients Promote products to Doctors PULLPUSH

12. + Questions and Answers