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E Healthcare Systems Marketing Plan Nov2010 Word Doc
1.
Marketing Plan
January 2011 Prepared by: Thomas Schuler Copyright © 2006 - 2011 All Rights Reserved Issued to: _________________________ Number: ____ Date: __________ This document contains confidential and proprietary information belonging exclusively to e-Healthcare Systems, Inc. Table of Contents
2.
Confidential & Proprietary
Information Market Analysis Page 4 Market Definitions Page 4 Industry Analysis Page 4 Market Segment Page 4 Strengths Page 5 Weaknesses Page 6 Opportunities Page 6 Unexpected Opportunities Page 6 Threats Page 6 Customer Profile Page 7 Demographics Page 7 Competition Page 8 Competitive Roundup Page 9 Observations and Conclusions Page 10 Life Cycle of Product Page 10 Return on Investment (ROI) Page 10 Pricing Page 11 Risk Page 11 Product Liability Page 12 Environmental Risk Page 12 Elements of Risk Page 12 Marketing Communications Page 13 Marketing Strategy Page 13 Positioning Page 13 Direct Response Mail Page 14 Telemarketing Page 14 Advertising and Promotion Page 15 Objectives Page 15 Media Objectives Page 15 Media Strategy Page 16 Advertising Campaign Page 16 Preliminary Media Schedule Page 17 Promotion Page 17 Incentives Page 18 Direct Mail Page 18 List Management Page 18 Corporate Capabilities Brochure Page 18 Company Profile Page 18 High-Tech Company Page 19 Sales Support Collateral Materials Page 19 Selling the Product Page 19 Advertising Budget Page 19 Outside Advertising Suppliers Page 19 Public Relations Page 20 Public Strategy Page 20 Major Sales Announcement Page 21 Press Releases Page 21 Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 2
3.
Confidential & Proprietary
Information Editorial Visitation Page 21 Trade Shows Page 21 Internal / External Newsletter Page 21 Publicity Revenues Page 21 Web Site Development Page 22 Grant Writers & Lobbyist Page 22 Sales Plan Page 22 Sales Strategy Page 22 Positioning Page 22 Discounts Page 23 Marketing Responsibilities Page 23 Next Steps Page 23 Distribution Channels Page 24 Executive Sales Page 25 Direct Sales Page 25 Other Markets & Sources of Revenue Page 25 Market Analysis Market Definition Skilled Nursing Facilities (SNF), Assisted Living Care, Sub-Acute (Transitional Care), Rehabilitation Services, Independent Living, Board & Care, Behavioral Health Care, CCRC Facilities, Hospice, Elderly Care and Home Health Care. Industry Analysis Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 3
4.
Confidential & Proprietary
Information The Long Term Care market is growing at a rapid rate. The market for LTC products amounted to $29 billion in 1999 -- representing a 62% growth over $18 billion in 2008. Referenced sources agree that the major trend is for 150% by 2010. The trend has been toward the development of sophisticated windows browser software. The LTC industry, as a whole, is looking toward Vendors (i.e., manufacturers / suppliers / retailers / experts, etc.) to provide the expansion of existing applications / product lines / services / software programs. The overall market for the LTC industry is projected to be $134 billion by the end of 2030 . The overall market potential for software is estimated to be $10-15 billion by 2030. The area of greatest growth in the LTC market is in the area of healthcare software. Market Segment Key points in defining the market segment for e-Healthcare Systems are: 1) MDS accuracy 2) Staffing for acuity 3) Calculating Nursing Costs 4) PPS Cost Reporting 5) Staff Education 6) Cost Cutting Measures 7) Ancillary Costs 8) Pre-admission Screening 9) Maintaining Quality Care 10) Aging of America – increased need for facilities and computerization Currently, the market is shared by approx. 50 significant participants. Care Computer Systems having the largest share of the market (approx. 35%). LTC Solutions has approx. 18% of the market. The rest averaging between 1-10% of the market. e-Healthcare Systems plans to have 2-3% of the market within 2 years. Users of nursing home software systems are looking for quality and productivity improvements. Past / current / recent / lack of development of software systems has resulted in the need to enhance, change, correct, and create applications of new technologies. Our innovation combines Open Source PHP software, Flash, Java and/or Java Applets, and HTML, which allows our software to operate efficiently and accurately. The stability of this market segment is solid based on the Federal and State mandates for facilities to computerize. This trend will continue for many years based on Federal government plans to actively oversee the LTC industry’s care of patients. The software segment of the LTC market is generally based on software products with retail prices in the range of $15,000 to $30,000+. The vast majority of sales in this category will be handled directly Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 4
5.
Confidential & Proprietary
Information by e-Healthcare Systems and regional sales offices. The minority of sales will be through other direct channels (i.e., Independent Reps, Distributors, etc.). Over the past 5 years, similar product manufacturers or service provider companies have proven that meaningful features can be developed for this class of software product. These companies have primarily focused on the use of Microsoft Window applications to improve the quality of the software product. These products have been successfully distributed in many areas of the country. Competitive products in this market are produced and provided by vendors such as Care Computer Systems, Achieve, LTC Solutions, etc. In the next 2 to 3 years it is estimated that there will be more than the 50 significant software competitors distributing these types of software products. The market potential for software products with a current retail price of $15,000 to $30,000 per unit -- is millions of dollars. This translates to an obtainable market share by e-Healthcare Systems of 3% of the overall market or $16 million in sales within this 2-3 year period and 10% by year 5 or 54 million. Strengths In terms of product strength, e-Healthcare Systems has several distinct advantages over the competition. First is its marked advancement in internet-intranet technology utilizing Flash, HTML, Java and/or Java applets and Open Source PHP technology. Second is the ability to upgrade and technically support via the internet. Other advantages would include: Speed, ease of use, and quicker learning time utilizing browser techniques. In marketing, our most powerful assets are: 1) Using the experience of previously marketing to the LTC industry; 2) Having the contacts, lists, and identities of possible clients from attending previous trade shows; 3) Having the “NAME” that previous clients are aware of; and 4) Having the reputation of producing quality software and providing excellent support. In the corporate arena, e-Healthcare Systems will be supported by highly skilled personnel, the financial backing of people knowledgeable in the healthcare industry, and the utilization of past business relationships. Weaknesses There are no handicaps inherent in our product. The only notable marketplace disadvantage may be convincing potential clients to give up their existing software and technology and this may be because of recent purchases or lack of funds to purchase new software and/or technology. However, since Presidents Busch and Obama have approved a mandate that all healthcare providers by 2014 “MUST” have an electronic medical records system in place that has cooperability across the many different platforms it will force the providers to have software that will meet this mandate. Currently no provider in the long term industry has this kind of software for their business and currently none of the 50 software vendors has this type of software developed.. During 2010 we should be able to position ourselves in the market place via exposure through shows, referrals, published reports, Ads, recommendations, and need of the industry for better software, thereby reducing this weakness considerably. Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 5
6.
Confidential & Proprietary
Information Corporate weaknesses, at this time, consist only of working together as a team and the learning curve required by some personnel in knowing the LTC requirements. However, through guidness of expert personnel (who are already part of the team), we feel should alleviate this concern. Opportunities The upside potential for e-Healthcare Systems and the Heartbeat software in the LTC market over the next two years is more than excellent. Based on the existing conditions, introduced in the Product Strategy section in the analysis above, it is apparent that the Heartbeat software will justify the investments and risks and meet all potential goals with utilization of logical rationale and team spirit. Unexploited Opportunities Further opportunity for our product exists in all healthcare market(s) and the internet. Threats Internal Threats Internal threats to our company may be confidentiality and disclosure of trade secrets. It is essential that all people involved will sign the confidentiality and non-disclosure agreements. External Threats External threats to our company include: 1) Consultants – confidentiality and disclosure 2) Representatives – confidentiality and disclosure 3) Distributors – confidentiality and disclosure 4) Parterning relationships – confidentiality and disclosure 5) Unannounced attempted takeover from a larger corporation 6) Price war by competitors from within the industry Responsible Parties The CEO, CTO, Sales & Marketing and the development team will be responsible for addressing the internal / external threats. Preventive Action to Be Taken All employees, consultants, representatives, distributors, partners will be required to sign one or more of the following: 1) Employee non-disclosure agreement 2) Sales representative agreement Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 6
7.
Confidential & Proprietary
Information 3) Non-disclosure agreement 4) Confidentiality agreement 5) Independent contractor agreement 6) Employee agreement on inventions, copyrights, and patents 7) Consulting agreements Customer Profile 1) Large chain nursing homes 2) Small chain nursing homes 3) Individually owned nursing homes 4) Sub-acute (transitional care) units in Acute Care Hospitals 5) Rehabilitation nursing homes 6) Behavioral nursing homes It is likely that all potential customers are going to be familiar with the LTC Heartbeat software product. Our new software will readily be accepted, provided that we approach, educate, and expose our product through the various media forms available. It is easy to understand why people will be motivated to buy our Heartbeat software because of the technology we are offering and the ability of our software to address their needs. We perceive our competitors to jump on the band wagon within 1-3 years from now. Demographics Below is a psychological profile of our target customers: Nursing Home Executives Title: Owner, Adminstrator, DON, Financial Officer Power: Permitter, Decision Maker, Influencer, Consultant, Initiator Viewpoint: Big Picture, Financial, Department, Personal Position: Responsibilities--daily activities Emotional Influences: Status, power Practical Influences: Saving money, efficiency Education: Physician, Health Care Provider, Ph.D., MBA, College, Technical School, etc. Limitations: Purchasing Approval Young Professional Age: 25-65 Income:Medium to high Sex: Male or Female Family: Bachelor or married Occupation: Skilled Attitude: Innovator Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 7
8.
Confidential & Proprietary
Information Competition Our competitor's strengths are: 1) Name recognition in the market place 2) Current share of the market place Our competitor's weaknesses include: 1) Technology is passing them by 2) Poor support 3) Poor training The competitor's strategy is to express that they have the best product for the market place, However, technology will prove them wrong. We will respond to these competitors by providing a better technological software product, better support, and better educational training procedures. We will position the Heartbeat software products against these competitors by: 1) Channels of distribution 2) Price packaging 3) Promotions 4) Customer appeal and loyalty 5) Addressing the needs of the customers 6) Partnering 7) On-line profiling 8) On-line profiling with other LTC vendors 9) Advertisements in industry magazines 10) Trade shows 11) Providing turnkey systems 12) Maintaing financial stability The major competitors' most likely response to “current” governmental, technological, and competitive trends affecting the industry will be slow, however, responses to our technology will be quick once they see our product and its future place in the industry. Key factors of “Windowing” have resulted in the present competitive positions in this industry. Sales and profit ranking of major competitors in the industry have changed over recent years. These rankings have changed because of governmental mandates, Window technology, and share of the market place. Competitive threats today come from new technologies, and new features of software products. The Heartbeat software product will perform in virtually all situations and environments. The ability to operate through internet-intranet environments is unique to this product, and our research indicates its performance will be superior to anything else on the market today. Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 8
9.
Confidential & Proprietary
Information In all comparisons, the Heartbeat software product will provide more features and have superior performance than do competitive products. In most cases, the number of differences is substantial. The competition advertises in almost all of the industry publications. We will do the same. Competitive Roundup The following chart illustrates how the Heartbeat software product compares to the competition in several different key areas (on a scale of 1 to 5, 1 being the higest value). Competitive Roundup--Product Price 1 Capacity 1 Ease of Use 1 Installation 1 Appearance 1 Quality 1 Design 1 Useful Life 1 Technology 1 Responsiveness 1 State-of-the-art 1 24-Hour Availability / Support 1 Technical Expertise 1 Support Service 1 Efficiency 1 Complete 1 On-Time Capability 1 Upgrades 1 Observations and Conclusions It appears, from the above information, that: 1) There are no market niche opportunities that we have overlooked 2) All our resources are being deployed against the most serious competition Life Cycle of product The life cycle for the Heartbeat software product line can best be described as follows: e-Healthcare Systems, due to our recent efforts, is in a strong position. We feel that for the next 2-10 years will continue to generate profits at or above expected levels. Heartbeat will constantly need to be improved / upgraded daily in order to insure that it does not move into a declining stage. Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 9
10.
Confidential & Proprietary
Information Overall, we conclude that our products will continue to be viable in the marketplace during the next 20-30 years and that e-Healthcare Systems future planning and product-related activities will insure a strong market presence. Return on Investment For most customers, Heartbeat software will pay for itself in terms of within 6 months, because: 1) Improved efficiency 2) Improved convenience 3) Advantage of a better-quality software product 4) Advantage of long-term cost savings 5) Increased features 6) Better technology 7) Premium Software Pricing Regarding cost savings, Heartbeat software will save our customers money in terms of: 1) Reduced downtime 2) Improved convenience 3) Better employee use of time Our customers can generate more profits in terms of: 1) Heightened productivity 2) Improved product performance 3) Increased capacity and concentration For e-Healthcare Systems our software products will show, a positive return on any investments that has been made. Pricing We will set pricing polices based on the market value of our product, the number of facilities in a “chain”, the number of users and/or stations, the size (number of beds) of the facility, and that the software is based upon it being a premimum software product by being “first” to market before 2014. The range of pricing for SaaS and/or ASP is between $600 and $5,000 per month per facility and this will be determined by the formula(s) above. At this point we have priced the average 100 bed facility at $1050 per month. Stand alone systems will average between $30,000 and $300,000+. Our enterprise system will sell for $90,000 and is not budgeted in the financials. The prices for our software product will also be determined first and foremost by competition, costs, and package deals. It is important to know that sliding scales, volume, regulated, competitive, perceived value, pricing is essential to our market profile. Risk Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 10
11.
Confidential & Proprietary
Information Business Risk Progress always involes risk; you can’t steal second base and keep your foot on first. -- Frederick Wilcox Cost Structure While we may operate profitably in the first 12 months, this will not predict whether its operating results for the full fiscal year ending 2010 will be profitable. However, to increase our chances of being profitable we will be hitting the market hard and fast to capture our proposed market share before the competition can react. e-Healthcare Systems is planning to add equipment to further increase production capacity over a period of time. e-Healthcare Systems believes the net proceeds from investments and cash flow from operations will be sufficient to allow e-Healthcare Systems to meet the expected growth in demand for our Heartbeat software product. Competition e-Healthcare Systems will compete with national LTC software companies, several of whom dominate the LTC market, have greater sales, and financial, production, distribution, and marketing resources than e-Healthcare Systems has currently. Industry Growth The sale and consumption of LTC software products has increased dramatically over the past 5 years and software product makers (providers) are increasing their capacity in order to meet this growth. Product Liability e-Healthcare Systems plans to have Liability Insurance coverage. A large damage award against e- Healthcare Systems, not adequately covered by insurance, would adversely affect our financial position. Environmental Risk Economic The economic risks affecting e-Healthcare Systems are minimal. However, the best strategy for e- Healthcare Systems is diversification, offering numerous products or services to multiple market segments. Elements of Risk Degrees of risk are documented as: low = 1, medium = 5, and high = 10 Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 11
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Confidential & Proprietary
Information Degree Weight Total Elements of Risk of Risk of Risk in % Business Risk Competition 5 5 25 Industry Growth 1 4 4 Product Liability 1 5 5 Profit Margin 1 2 2 Customers 5 5 25 Personnel and Management 1 4 4 Environmental Risk Economic 1 5 5 Legal and Government 1 5 5 Overall Risk 5 5 25 Marketing Communications e-Healthcare Systems marketing strategy is to enhance, promote and support the fact that our software is: 1) Smart with instant updates via the internet 2) Allows familiar user interface that requires 50% less training 3) Optimized for speed and security 4) Utilizes high speed MySQL database technology 5) Allows unlimited number of database records 6) Has integrated multimedia and animation 7) Provides networking with unlimited number of clients 8) Contains multimedia training programs The overall marketing communications plan for our product is based on the following fundamentals: 1) Long Term Care (LTC) Market Place 2) Need for better technology for software 3) Need of a better software program for all of the following types of facilities: SNF Facilities, Assisted Living Care, Sub-Acute (Transitional Care), Rehabilitation Services, Independent Living, Board & Care, Behavioral Health Care, CCRC Facilities, Hospice, Adult Day Care, Intermediate Care, Elderly Care and Home Health Care 4) Expect to capture 3% of the market place by years 2-3 and 10% by year 5. To prove the value of e-Healthcare Systems software products we can: 1) Show the applications 2) Demonstrate effects 3) Add credibility through reports/papers in industry magazines Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 12
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Information The lack of software product features / benefits in every day use of LTC software is demonstrated by: 1) Customer complaints 2) Review of competitor software products 3) Articles written in industry magazines 4) Conversations with industry personnel 5) Knowledge of the requirements for the LTC industry Marketing Strategy Positioning Our e-HealthcareSystems software product will be seen by the consumer as state-of-the-art software. Its unique advantages (technical, quality, performance) can be exploited to arrive at a winning position in the consumer's mind. In terms of market segmentation advantages, we can use upscale consumers and appeal, to arrive at a winning position here. We can reposition our competitors share of the market by showing the end-user how our sotware compares to theirs or other competitor’s software products. The resulting Selling Basis for our product, then, is to test the unique Selling Basis to make sure that it is: 1) Meaningful 2) Believable 3) Motivating 4) Memorable 5) Simple 6) Logical 7) Unique Direct Response Mail We will be exploring the benefits of incremental and coordinated direct mail programs in 2010. We anticipate a strong profit potential as we strengthen our direct response capabilities. We will be approaching this scientifically, as we improve our customer targeting ability. We propose two 500 piece mailing campaigns, each preceded by follow-up callings. Most of all direct mail activities will be directed to our existing customer base information obtained through years of being in the LTC industry selling software. Telemarketing Initially we will use an in-house telemarketing service to perform the following functions: 1) Literature mailing Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 13
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Information 2) Follow-up calls 3) emailing We will respond to inquiries by: 1) Order entry responses 2) 800# (Order/Support Hotline) 3) Utilizing a comprehensive telephone script 4) Carefully addressing each issue (questions, objections, etc.) 5) Documenting responses 6) Scheduling appointments 7) Frequently asked questions (FAQ) We will generate New Business by: 1) Market research 2) Distribution opportunities 3) Attending trade shows 4) Cold calls 5) Partnering 6) Advertisements in industry magazines 7) email Advertising and Promotion e-Healthcare Systems recognizes the key to success at this time requires extensive promotion. This must be done aggressively on a wide scale. To accomplish our sales goals, we may require an extremely capable advertising agency and public relations firm. e-Healthcare Systems plans to advertise in major trade magazines] such as Provider, McNight Long Term News, Contemporary Long Term Care, and other similar magazines. Upon funding, an agency shall be selected and, with their assistance, a comprehensive advertising and promotion plan will be drafted. Advertising will be done independently and cooperatively with Distributors, OEM's, retailers and companies with whom e-Healthcare Systems establishes joint marketing and/or sales relationships. Objectives Position e-Healthcare Systems as the leading LTC software company in the market place. Increase company awareness and brand name recognition among LTC Administrators and their personnel. Generate qualified sales leads and potential new distributors for field sales organization. Develop, through market research, significant information to create immediate and long-term marketing plans. Create product advertising programs supporting the leadership position. Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 14
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Information Coordinate sales literature, demonstration materials, telemarketing programs, and direct response promotions. Media Objectives Gain awareness of company among LTC industry groups, buyers (customers) and owners. Establish an image of e-Healthcare Systems as an organization that is professional, completely reliable, and highly positioned in the market. Maximize efficiency in selection and scheduling of published ads in publications to cover the LTC markets. Media Strategy Select primary business publications with high specific market penetration. Schedule adequate frequency of ads to impact market with corporate image and product messages. Where possible, position advertising in or near articles on LTC industry, product reviews, front cover, center spread, etc. and appropriate editorials. Utilize U.S. editions of consumer, trade, and specialty publications. Take advantage of special high-interest issues of major publications when possible. Maximize ad life with monthly and weekly publications. To get the most out of our promotional budget, our media coverage will be to mainly focus on the LTC audience. We will develop an advertising campaign built around product innovation, high-performance, competitive advantages, beginning with a "who we are" statement and supporting it with ads that reinforce e-Healthcare Systems message. Additionally, we will develop a consistent reach and frequency throughout the year. Due to the nature of our product, it will be necessary to run full-page 4-color ads to establish recognition in the market place. Advertising Campaign The best way to reach our potential customers is to develop an intense advertising campaign promoting our basic premise -- "Revolutionizing the Industry". To maintain and establish our e-Healthcare Systems company image, the delivery and tone of our statements will be understated elegance, hard driving excitement, excellence, glamour, reality, and slice-of-life. Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 15
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Information Ads will convey the look and feel of a e-Healthcare Systems state-of-the-art image company. Research indicates that “TV and Radio” type of advertising has not yet been used by any of our competitors. However, minimal usage of CD-ROM magazine inserts have been recently used. Ideally, after becoming familiar with our product, the consumer will: 1) Call our toll-free 800# for a brochure, when to attend our next trade show booth, or for a demonstration. To eliminate the biggest objections to immediate action, our advertisements must address known, anticipated objections, difficulties with product acceptance, how to own or use product immediately. Because Heartbeat software is so innovative, unique, etc., it is important to develop a promotional campaign that is consistent and easy to understand. Accordingly, e-Healthcare Systems will create a system of research and response to insure the maximum benefit from advertising dollars by: Measuring publication effectiveness by counting the number of responses, inquiries and/or purchases per 1,000 inquiries (given a particular AD). Preliminary Media Schedule Circulation Budget Ad Size Trade Magazines 50,000 $2,500 1/4 Page Trade Magazines 450,000 $5,400 1/2 Page Trade Magazines 500,000 $6,900 3/4 Page Trade Magazines 500,000+ $7,500 full Page We expect to achieve a reach of a 500,00 total circulation (audience), and to maintain that for a period of at least two years. In regard to competitor's advertising, it will be necessary to over shadow their advertisements by out classing them (more attractive Ads, more powerful Ad information, attractive logo image, etc.). Promotion In addition to standard advertising practices, we will gain considerable recognition through: 1) Trade programs (trade advertising for our product) 2) Press releases 3) Public Relations through the media Initially e-Healthcare Systems hopes to install the Heartbeat software at 2-5 Nursing Homes depending on negotiation of contracts. These will be beta test sites and our Heartbeat software product will be offered at no cost to these facilities (except for installation costs, travel costs, equipment costs, support costs, etc.). All these places will then be able to provide suggestions, references, and recommendations. Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 16
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Information The number of trade shows attended will be increased from 3 to 6+ each year thereafter. These shows will be attended independently and with companies with which e-Healthcare Systems has joint marketing, sales and/or OEM agreements. Reports and papers will be published for trade journals and technical conferences. Incentives We will consider the appropriate use of advertising specialities like coffe mugs, T-shirts, CD Business Cards, imprinted gifts and gadgets, etc.. Direct Mail We will utilize past accumulated lists and business cards and contacts for direct mailings. We will collect mailing list catalogs. We will look at all the possible outlets for our software product. In addition to using direct mail to distribute our products, we will exercise our direct customer communications through product upgrades, information updates, and through the creation of a monthly or quarterly newsletter. The direct mail objective is fully for profit. List Management Given the growing potential of channeling alternative marketing through distributors, representatives, partners, etc., we will build our capabilities and expertise in database marketing. For the first phase, our customer list will stay in house as we develop our database sophistication. Through registration cards and periodic customer surveys we will better understand our customer, and measure the success of our marketing, sales and product activities. Profile overlays or other lists that we buy will fill in our awareness gaps. This in-house presence will provide our sales and tech support teams with tools that streamline their operations, while they update our customer knowledge on a daily basis. We plan to develop a customer computerized information system that will aid and help us to make sound decisions by providing historical answers to the marketing questions we pose. Corporate Capabilities Brochure To portray e-Healthcare Systems as the leading supplier of state-of-the-art dynamic software we have designed a company packet detailing our services, software products, and technology use for the development of our software. Initially we expect to have 2500 made for distribution. Company Profile In order to market our Heartbeat software products we will use savvy, dedicated support groups with one overriding mission: customer satisfaction. Our marketing department will emphasize LTC expertise and our drive will be to stay abreast of the market place through market research, product development, and providing improved product ideas to the end-user. Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 17
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Information High-Tech Company e-Healthcare Systems will provide an in-depth view of sophisticated development with special emphasis on performance and advanced technology. e-Healthcare Systems will provide technical support and quality assurance by portraying the QA and technical support staff as highly competent and dedicated group of individuals concerned with customer satisfaction, and with improvement of substandard software products. e-Healthcare Systems will present super high-tech images of the R&D group where state-of-the-art image is critical. Sales Support Collateral Materials e-Healthcare Systems will develop a variety of collateral materials to support our sales efforts. Selling the Product: 1) Audio / Video Introductory CD’s/DVD’s 2) New Releases information 3) Brochures 4) Advertisements/Advetorials 5) Demo CD’s/DVD’s 6) email Advertising Budget For the next year’s advertising and promotion, we will require at least $500,000 and on an ongoing basis after that. We will budget our advertising investment at approx. 10-20% of total sales. Outside Advertising Suppliers 1) Advertising Agency 2) Public Relations Agency 3) Direct Mail 4) Mailing Houses 5) Direct Mail Response 6) Demonstrations – Guides, Literatures 7) Market Research Focus Groups 8) Sales Literature, Tools 9) Marketing Planning Consultants 10) Telemarketers – lead generation 11) Direct Response Advertising Firms Public Relations Our publicity efforts are intended to accomplish the following: Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 18
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Information Position e-Healthcare Systems at the leading edge in providing software for the LTC industry. Increase e-Healthcare Systems reputation and name in the LTC market place. e-Healthcare Systems will communicate on a regular basis with these three target publics: 1) Editors of major trade magazines 2) Business and local publications. 3) Key management personnel in the existing LTC facilities. Publicity Strategy During the year 2010 e-Healthcare Systems will focus on the following publicity strategies: Develop a sustained public relations effort, with ongoing contact between key editors and top-level personnel. Develop a regular and consistent product update program for the major target media, keeping key editors abreast of e-Healthcare Systems enhancements and other new product introductions. Develop an internal and external newsletter that will cover key sales successes, significant marketing and manufacturing events, technical support and product development stories. Internally, the newsletter would be targeted at all company personnel and sales representatives; externally the piece would be targeted at key customers and prospects. Develop a minimum of four technical articles written by key executives or LTC professionals to be placed in LTC publications within the next 6 months. Establish contact with editorial staffs for the purpose of being included in product "round-ups" -- product comparisons in publications such as Consumer Reports, etc., where competing products are compared. This exposure builds credibility and market acceptance. Produce a complete company backgrounder on e-Healthcare Systems to be used as the primary public relations tool for all target media editorial contact. This will also be effective for inclusion in press kits, dealer kits and sales packages. The background would include sections on the following broad subjects: 1) Overview of the Market: size, characteristics. 2) The Market in year 2010 and the future 3) e-Healthcare Systems – History, Management Philoscophy, and Market Niches. Major Sales Announcement Major contract agreements representing high volume sales will be written up and released to selected media as soon as practical after the signing of papers. Ideally, these will be joint announcements. Concurrently, a shortened version of the release will be mailed to all internal and external sales organizations. Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 19
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Information Press Release e-Healthcare Systems will develop a series of press releases on the entire product line. Prepare press releases for each new product introduction, technical development, participation in a major event, awards, recognition, etc. Editorial Visitation Over the next 6 months we will host or invite the most influential reporters and editors from publications and the media for a visit to e-Healthcare Systems During the visit, each of the editors would receive a complete facility tour, product briefing, and an opportunity to interview the chairman, president, product designer and marketing manager. If logistics or timing is a problem with the interviews, then these could possibly be arranged at the major trade shows. Trade Shows e-Healthcare Systems has participatd in one or more trade shows. The overwhelming success and response to one of those shows (California’s State Health Care Show – CAHF) tells us it is now time to expand our horizons to additional shows that will showcase our product. Internal / External Newsletter We currently plan to produce a 2-4 page, black-and-white and/or 2-color / 4-color newsletter to serve as an informational piece for internal personnel, the sales force, and key customers. It includes sections covering each major department or organization within the e-Healthcare Systems and a message from the executive staff. It also highlights major developments, such as key sales stories, successful customer applications, uses, installations, significant marketing events, and product development news. Publicity Revenues We anticipate at least $1,260,000 in sales to be generated directly from our publicity in the year 2010, and possibly and additional $500,000 of indirect increase in sales throughout our various channels. Web site development e-Healthcare Systems already has a web site (www.heartbeatemr.com) and plans to showcase the Heartbeat software from it. Grant Writers & Lobbyist With the advent of the Stimulus Package announced by the Obama administration and the subsequent allocation of 19 billion dollars to support the EMR iniative there will be a significant number of grants available to our targeted customers. We have secured the services of a Washington DC Grant Writing as well as Professional Lobbyist to support our initiatives in this area. Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 20
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Information Sales Plan Sales Strategy Heartbeat software should be treated as a long-term software product as well as an Industry wide software product. Within one full year of sales the product should pay for itself. As such, the target market segments to focus on are LTC customers and all the other Industry segments characterized within this plan. Because of e-Healthcare Systems special market characteristics, our sales strategy includes and incorporates: 1) Visualization and animation to awe the customer 2) New Features 3) Cost acceptance 4) Large “Chain” discounts 5) State-of-the-art software 6) Today’s Dynamic leading edge Technology Positioning Positioning will be accomplished by: 1) How the customer perceives our company and product, relative to the competition 2) Product and Business Industry Leadership 3) Utilizing a user Focus Group to provide product information e-Healthcare Systems unique advantages (technical, quality, performance) can be exploited to arrive at a winning position in the consumer's mind. In terms of market segmentation advantages, we will use (upscale consumers, etc.) to arrive at a winning position here. We can reposition our competitors by: 1. Channels of distribution 2. Price packaging 3. Promotions 4. Customer appeal and loyalty 5. Addressing the needs of the customers 6. Partnering 7. On-line profiling 8. On-line profiling with other LTC vendors 9. Advertisements in industry magazines 10. Trade shows 11. Providing turnkey systems 12. Maintaing financial stability Discounts Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 21
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Information We can take advantage of volume purchases by: Offering volume discounts We plan to review our pricing and product (service) margin every month. Marketing Responsibilities Who will be making these decisions? All of the below will be by the expert staff we hire and through their job descriptions: New business development Sales-producing tools Corporate graphics standard Brand-name recognition Direct response promotion In house Telemarketing -- scripts / training Product position and identification Next Steps Based on this strategic plan, decisions that must be made now include locating and hiring of an experienced marketing team. Key decisions to be made in the mid term are: 1) Possibly establishing 4 regional sales offices and where they will be located. 2) The addition of new features for the software programs 3) New marketing strategies 4) New joint ventures The information needed to make both of these decisions with confidence includes: 1) Primary research projects (time frame, budget, locations, personnel). 2) Secondary research projects (new features feasibility) The most sensible research recommendations are to: List questions that we need immediate answers to. Use data collected from a focus group. Before proceeding further, we will review the marketing strategy statements we have made so far against the following tests: Are the strategies consistent with our evaluation of the marketplace and our capabilities? Is the return on marketing investment sufficient to justify the risks? What are the chances of a competitor executing a similar strategy? In that case, what would happen? Are the strategies consistent with the political environment within the company? Have we made sure our strategies are based on facts, and not assumptions? Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 22
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Information Does the overall strategy leave us critically vulnerable to a shift in market behavior? Are all our eggs in one basket? Is our appraisal of the competition open-minded and honest? Is our strategy legal? Is the success of our strategy based on our ability? What are the chances of failure? Have we thoroughly examined alternative strategies? Do we have a sound, logical rationale for our recommendations? Distribution Channels e-Healthcare Systems marketing department plans to sell our Heartbeat software product through several channels. The determining factors in choosing these channels are: Customer profile Efficient use of funds Feasibility of using channels of similar products already on the market Sales / Distributors / Sales Rep Coverage Key competition uses some of the same distribution channels. A good mix of distribution channels and innovative marketing strategies will give us an advantage over our competition. Executive Sales Because our customers tend to be top corporate managers, it is important that experienced LTC personnel present our product to our customers. We will hunt for these types through newspaper ads and through professional medical personnel locating agencies. Direct Sales The majority of e-Healthcare Systems sales will be handled internally through direct sales by our staff. e-Healthcare Systems anticipates hiring up to 10 additional sales representatives (including technical support) to cover the additional 4 regional territories. We have chosen to use a direct sales force because our products require considerable customer education and post-sales support -- directly from the company. Our price point, pricing structure and profits are such that our costs of sales warrants primarily "person-to-person" selling strategy. Technical support to marketing and sales functions will be strengthened. Pre- and post-sales situations involving the application, presentation, and demonstration of e-Healthcare Systems Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 23
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Information software products will be supported by our e-Healthcare Systems staff and by e-Source (see Executive Summary) in Orem, UT. OTHER MARKETS & SOURCES OF REVENUE e-Healthcare Systems will expand into other areas of healthcare. These areas will generate additional revenue and will play an important part in the overall scope of the e-Healthcare Systems s vision. These areas of healthcare are: 1. ACUTE CARE HOSPITALS – Acute Care Hospitals are large complex institutions. There are many different types of hospitals (i.e., Childrens’s Hospitals, General Medical and Surgical, Psychiatric, Rehabilitation and Other Specialties, etc.). There are approximately 7,251 hospitals nationwide. Within these institutions are many specialized departments, all of which require specialized software programs. 2. ALCOHOL and DRUG ABUSE FACILITIES – Private alcohol and drug abuse facilities provide alcohol and other drug dependency treatment services to help patients begin the process of recovery. The treatment team may be composed of a physician, nurse, dietitian, activities therapist, counselor, pastoral care counselor, family counselor, clinical psychologist, etc. To meet the many different needs of patients, and family members, alcohol and drug abuse facilities offer programs of various levels. There are approximately 15,372 facilities nationwide. These facilities require specialized software programs. 3. HMO’s and PPO’s – Health Maintenance Organizations (HMO’s) and Preferred Provider Organizations (PPO’s) are “Managed Care” plans. In an HMO, doctors are paid a set amount of money to provide a certain range of medical services. An individual must choose from the doctors and hospitals affiliated with the HMO, PPO’s are similar to HMO’s in that a federation of health care providers is involved. A PPO’s list of providers, however, tends to be larger than that of an HMO. Most PPO’s will cover costs of services of a doctor not associated with the plan, but at a higher cost. There are approximately 1,635 of these organizations nationwide. These organizations require specialized software programs. 4. SUBACUTE CARE (TRANSITIONAL CARE) – Subacute Care Facilities are found in nursing homes and hospitals; nursing homes account for 80% of these facilities and hospitals 20%. They provide a comprehensive and outcome-oriented approach to care for patients requiring short-term or rehabilitation services. These services are provided by a physician- directed medical team. There are approximately 10,103 Subacute care facilities nationwide. These facilities require specialized software programs 5. ALTERNATIVE HEALTH CARE – Alternative Health Care consists of practitioners engaged in the practice of alternative methods in the treatment of patients. These alternative methods may include spiritual, nutritional, non-invasive medical procedures, and herbal medications, etc. These types of treatments may include; acupuncture and biofeedback. Nursing homes have recently begun using alternative practices within their facilities. Specialty software programs are needed for these services. There are approx. 10,000 Alternative care facilities in the U.S. 6. MENTALLY DISABLED FACILITIES – Mentally Disabled facilities provide early intervention services; respite care; community recreation; vocational and adult activity programs. These programs may include locked facilities; supervised Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 24
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Information apartments, and specialized treatment programs. The type of patients are Alzheimer’s, Mental Retardation, Parkinson’s Disease, etc. These facilities require specialized software programs. There are approx. 3,098 facilities in the U.S. 7. CONSULTATION – e-Healthcare Systems plans to use its expert staff to offer consultation services to healthcare facilities and/or other businesses. This service will be designed to meet the unique needs of long term care organizations and other providers of senior services. Our consultants will offer on-site and hands-on approaches in order to develop and implement strategies that recognize and complement their missions, philosophy and organizational culture. We will provide complete project development of their intranet needs. Areas of consultation will consist of regulatory compliance, nursing/clinical operations, management operation, and program/unit developments. Specialized software programs will aid us in this endeavor. Copyright © e-Healthcare Systems, Inc. 2006-2010. All rights reserved 25
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