1. MGMT 650B: Consulting Skills for Managers (L1) Team E Yuun Lam (09903803) Richard Ma (08935005) Victor Tsang (08936073) Chris Tsui (08936542) Elizabeth Siu (08935615) Consultancy Proposal on Consultancy Proposal on Relaunch of DiagCor Self-Collection HPV Screening Relaunch of DiagCor Self-Collection HPV Screening for DiagCor BioScience Limited 18 September 2009

2. The Background 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 test website: selfhpvdna.diagcorlab.com

3. The Objectives Objectives To develop a marketing plan for the relaunch of the self-collection HPV Test and make the service sustainable To achieve sales of 0.5 to 1 million HKD within a 12-months period and with a budget of HK$ 100,000 (negotiable) 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 The consultation team would sign a non-disclosure agreement with the management to obtain sensitive Information. 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.

4. The Scope and Deliverables Scope The relaunch of the self-collection HPV screening would target the market in Hong Kong only. The time frame to measure the success of the proposed marketing plan is 12 months. The target customers of the self-collection HPV screening would be women in all ages. 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: Customer and Market Analysis Marketing scheme with action plans Forecast of sales Scenario analysis

5. 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

6. Project Manager LIZ SIU The Consulting Team Client Relationship Director RICHARD MA Consultant VICTOR TSANG Consultant Yuun Lam Internal Specialist Chris Tsui Steering Committee “The Client” Client Project Manager *Consultants’ bio and qualifications are attached in the appendix:

7. The Approach Customer Analysis Channel Analysis Promotion Analysis Marketing Plan Formulation Methodologies - Interviews - Document Request Output - Expectations - Avail. Resources - Costing Info - Competitors’ info - Market trend - Possible service form - Service limitations - Comparable service info - Past experience Below is our suggested approach for this project: Information Collection Methodologies - Customer Survey - Focus Group 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 - 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 - Cost/Effectiveness Analysis - Competitive Benchmarking - Precedent Analysis Output - Cost of promotion - Promotion effectiveness - Success cases - Recommended promotional channels Scenario Analysis 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 Phrase 1 Phrase 2Phrase 3Phrase 4Phrase 5Phrase 6 Progress Review

8. 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/ Consultants/ Client Project Manager 4. 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/ Consultants/ Client Project Manager 5. 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/ Consultants/ Client Project Manager 6. 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/ Client Project Manager

9. 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/ Consultants 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 ManagerClient Project Manager/ Consultants

10. The Workplan Overview Project Steps Responsible Party Phase 3: Promotion Analysis 1. Define the Possible Promotional Channels (0.5 day) identified by the Customer Survey in Phase 2, with inputs from DiagCor. Client Project Manager/ Consultants 2. Perform a Research (1 day) on the promotional channels used by competitors or similar products in the existing market Consultants 3. Perform a Research (3 days) on the costs and effectiveness of the identified promotional channels to layout the foundation of marketing channel selection Consultants 3. Select the Promotional 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

11. 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. 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/ Client Project Manager/ Consultants 2.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

12. The Workplan Overview Project Steps Responsible Party Phase 5: Scenario Analysis 1. Define Scenarios (0.5 day) with different combinations of Price, Product, Promotion and Place resulting from the analysis of the customer, market, product, promotional and sales channels. Consultants 2. Formulate Financial Models (3 days) of the scenarios defined above, taking into account the different sales forecasts, price levels, service costs in different forms, promotional and sales channels, and etc, and pick the most beneficial scenario. Consultants 3. Perform Sensitivity Analysis (2 day) on recommended scenario to identify the most compelling factors affecting the P/L of the suggested scenario, as well as to identify the risks associated with the scenario. Consultants Phase 6: Marketing Plan Formulation 1. Develop the Marketing Plan (7 days) for DiagCor HPV Test product, considering the expectation of the Steering Committee, financial constraints and time frame Consultants 2. Arrange a Final Presentation (1 hr) to the Steering Committee, highlighting the benefits of the Marketing Plan, cost, duration, implementation plan, risks and etc. Analysis of the market situation, marketing scheme with action plans, sales forecasts and scenario analysis will also be included. Steering Committee Client Project Manager/ Consultants 3.Submit a Final Report (1 day) on the Marketing Plan for the reference of the Steering Committee. Consultants

13. Project Schedule The following is the estimated project schedule: Activities Year 2009 Wk 1Wk 2Wk 3Wk 4Wk 5Wk 6 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 Phase 6: Marketing Plan Formulation Marketing Plan Development Marketing Plan Presentation Final Report Submission

14. 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.

15. 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.

16. Appendix 1: Issue Tree

17. Appendix 2: Detailed Workplan