mgmt 650b: consulting skills for managers (l1) team e yuun lam (09903803) richard ma (08935005)...

MGMT 650B: Consulting Skills for Managers (L1)

Team EYuun Lam (09903803)Richard Ma (08935005)Victor Tsang (08936073)Chris Tsui (08936542)Elizabeth Siu (08935615)

Consultancy Proposal onConsultancy Proposal on

Relaunch of DiagCor Self-Collection HPV ScreeningRelaunch of DiagCor Self-Collection HPV Screening

for DiagCor BioScience Limitedfor DiagCor BioScience Limited

18 September 200918 September 2009

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

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.

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

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

Project ManagerLIZ SIU

The Consulting Team

Client Relationship Director

RICHARD MA

ConsultantVICTOR TSANG

ConsultantYuun Lam

Internal SpecialistChris Tsui

Steering Committee“The Client”

ClientProject Manager

*Consultants’ bio and qualifications are attached in the appendix:

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:

InformationCollection

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 2 Phrase 3 Phrase 4 Phrase 5 Phrase 6

Progress Review

The Workplan Overview

Project StepsProject Steps Responsible PartyResponsible 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/


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/


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/




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


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


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


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


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 Manager Client Project Manager/

Consultants



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.


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


Consultants



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


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/


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/




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


Consultants

3. Submit a Final Report (1 day) on the Marketing Plan for the reference of the

Steering Committee.

Consultants

Project ScheduleProject Schedule

The following is the estimated project schedule:

ActivitiesYear 2009

Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 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 ReviewReview 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

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