1. MGMT 650B: CONSULTING SKILLS FOR MANAGERS DiagCor Self-Collection HPV Test Marketing Plan Dummy Pack

2. The Current Situation Current Situation  DiagCor has developed a new self-collection business model for testing of the HPV virus in women  The self-collection model requires women to mail their sample to DiagCor. The sample is analyzed and results send back to the women  DiagCor wants to expand the market for Self-Collection HPV Test Issue  DiagCor has limited resources and no clue on how to expand the market for Self-Collection HPV Test

3. The Question How can DiagCor achieve a sales of HK$ 0.5M – 1M in one year for the Self-Collection HPV Test with a budget of HK$ 100K?

4. The Answer  Set the Retail Price at HK$ 500  Package the test into a Testing Kit which includes a sterile napkin, guidelines & instructions  Promote the test via Internet and Magazines  Distribute the testing kit through Diagcor’s website, direct mail, and bundle the kit with other female hygiene products (ex maxipads etc) DUMMY

5. The Rationale: Price Set Retail Price to HK $500  The lower price makes the test more competitive with traditional HPV tests via clinics (~ HK$ 650)  The self-collection process adds value to women via eliminating embarrassment while charging lower price  Lower price point increases adoption of the test in the mass market DUMMY

6. High-Value Customers would pay $401-600 for take-home HPV test Customer Preference: Price DUMMY

7. The Rationale: Product Package the test into a Testing Kit which includes a sterile napkin, guidelines & instructions  Women are less comfortable using any napkin for such an important test  The reliability and quality of the test is perceived to be higher if DiagCor repackages the test as a kit  A testing kit can be distributed through physical distribution channels DUMMY

8. HPV test with doctor’s consultation is most preferred by customers Customer preference: Product Study based on a survey of over 500 women in Hong Kong in October 2009. DUMMY

9. Package and Consultation Service costs are costly Cost Analysis: Product Forms Product Cost (per 1000 pcs) In HK$ Product Forms DUMMY

10. The Rationale: Promotion Promote the test via Internet and Magazines  The target customer groups are more receptive to the above channels  The cost-effectiveness of the above channels are the highest  Both internet and magazines can create awareness and induce discussions among the customers DUMMY

11. Internet and Magazines are among the most preferred marketing channels Customer preference: Promotion Study based on a survey of over 500 women in Hong Kong in October 2009. DUMMY

12. Internet and Magazines among the most effective marketing channels Cost-Effect Analysis: Marketing Channels Study based on a survey of over 500 women in Hong Kong in October 2009. DUMMY

13. The Rationale: Distribution Distribute the testing kit through Diagcor’s website, direct mail, and bundle the kit with other female hygiene products (ex maxipads etc)  The distribution channels above precisely fit the behaviours of potential customers of the test  The costs of deliveries via the above channels are low  The above channels has marketing effect at the same time DUMMY

14. Age 26-33 women strongly prefer buying the test kit from internet Study based on a survey of over 500 women in Hong Kong in October 2009. Customer preference: Distribution DUMMY

15. Most effective to partner with sanitary products Study based on a survey of over 500 women in Hong Kong in October 2009. Distribution Partners’ Preference No. of Partners Attributes DUMMY

16. Cost Analysis: Distribution Channels DUMMY

17. Summary: P/L of Recommended Plan DUMMY

18. Implementation Schedule Product enhancement & price changes implemented Completion: Nov 2009 Add physical distribution channels Completion: Mar 2010 Increase marketing Completion: Apr 2010 DUMMY

19. APPENDIX

20. Age group 35-45 women are most receptive to HPV screening Customer Awareness DUMMY

21. Sample Customer Case Age : 27, Accountant, HKD 40k Health conscious, sexually active Conduct body check-up on regular basis Feel embarrassed going to clinic for HPV screening Willing to pay extra to run the test anonymously Would refer to friends if the HPV test kit satisfies her preference Study based on a survey of over 500 women in Hong Kong in October 2009. DUMMY