Tbwi Self Care Opportunity Model Apr 09

The Business WorkShop Inc.™ 2008 Confidential – Do not copy .

W E H E L P Y O U D I S C O V E R A N D L E V E R A G E O P P O R T U N I T I E S I N S E L F C A R E !

The Business WorkShop Inc.

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The Business Workshop Inc. 2

Our Mission

• We build economic value

• Our Marketing for value™ philosophy enables the right strategic decisions for abetter financial future

Our Business Philosophy

Marketing for Value is both a philosophy and a process. Marketing for Value is the process that drives our Self Care opportunity development. It is what we do to create value in Self Care for our clients. It is a system that ensures we successfully address the issues and the project objectives.

Marketing for Value was created because in today’s fast and furious business world nobody can afford to make ill informed decisions. Getting on the right path – the path to greater economic value – is what MFV was born to do.


Why We Exist

Our Reason for Being

We believe that Health is Wealth.

We believe that whether you speak with someone who has been sick, the care givers of the sick or even those who have not been through the journey of illness, most have an attitude that is centred on well-being.

We believe that every person has the right to live and feel better whatever the situation and health condition exist.

We believe that across people’s life stage, they will experience health conditions that they hope to prevent, improve, enhance, diagnose and restore and recover.

We believe that through time, people will desire to take better control of their health in collaboration with both people and technology.

We believe that as people adapt a deeper sense of responsibility , behaviour change goals toward enabling themselves to have full control of their health, the products and services they use will change.

We believe that people hope and desire to live life to its fullest.

We believe we can bridge businesses to the evolving consumers.

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Key Phrases That Define What We Do4

Self Care

mfV

Marketing is a value driver not a cost centre!

Added Value should be a quantitative term, not a qualitative term!

We find the link between Marketing and Cash Flow.

Is your marketing profitable?

mfV IS EMBEDDED INTO OUR SELF CARE EXPERTISE !


Self Care is our Expertise and Focus

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We focus on discovering and leveraging opportunities in Self Care.

We focus on the issue(s) that can significantly affect value

We focus on the consumer not the product

We focus on what is creating value – which consumers, what consumer

behaviour change, which influencers, which activities….

We use a financially based decision making tool.

Marketing for Value.... Makes Tough Decisions Easier!


Our Marketing for Value™ Process

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Marketing for Value is the process that drives our Self Care opportunity

development.

Our Marketing for Value process is centred on understanding the Self

Care consumer as it applies to our client situation. It is digging to find

the answers to how the desired consumer behavior change can be

uncovered, articulated, put into the proper frame of reference, and

used to develop the solutions that will discover and leverage

opportunities in Self Care.


From Health Care to Self Care: Consumer Trends and Forces Impacting Industry

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Health Care System –Situation Critical

(unstoppable)

Consumer Self Care Growing

Fast (unstoppable)

Industry - Limited Knowledge of

Forces at Play in Health Care System

and Consumer Behaviour Change

New Thinking Required to

find new growth

opportunities

There is an urgent need for progressive companies to understand and leverage the changing landscape

Consumer Self Care

Growing Fast (unstoppable)

Industry forces drive more consumers

and patients to adopt Self

Care.

New Thinking Translated to

new growth opportunities

As the Health Care System shrinks, by necessity, Self Care is forced on even the less willing

Today: Self Care being adopted by the early adopters

Tomorrow: Self Care being adopted more aggressively and by a larger group


The changing Healthcare landscape is and will continue at an accelerated pace to transformation of all industries and business that deal with consumers’ and patients’ health. The Healthcare is facing

enormous challenges due to economic sustainability, aging demographics, steep rise in chronic diseases, growing healthcare costs and most importantly, increasing change in consumer behaviour. There is an emerging power shift and consumers are now taking control of their health. The result is an emerging

industry called Self Care.

•Shift in consumption away from traditional

healthcare solutions

• Payers and governments are cutting healthcare

costs due to sustainability issues.

• More diverse influencers to health choices.

• Less control of Primary care practitioners

• New products and services from convergence of

industries (Food and Natural Health Products,

Pharmaceuticals and Self Medication, etc)

• Traditional medical interventions are integrated

with Complementary and Alternative therapies.

• Industries for the most part are ignoring new

consumer healthcare behaviour changes.

• Many industries continue to stick to their

traditional capabilities, competencies, categories

and segments.

• Governments are slow in providing support to

enable mass adoption of Self Care.

• Healthcare systems are used to the “treatment”

mindset, finding it challenging to switch to Self

Care.

Consumers are Changing Dramatically: Who, What, Why?


Self Care – What is it?Why Does it Matter?

Self Care is the range of options and activities that individuals embark on to maintain and enhance health, prevent disease, evaluate symptoms, and restore health

Either alone or in collaboration with health care professional(s)

Opportunity or Obligation?


CONSUMERS ARE MOVING FORWARD AND CHANGING….ARE YOU?

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THE EVOLVING

CONSUMER

Reactive Consumer Proactive Consumer

Consumer Behaviour Change Through Life Stages

“ I make the choice”

http://www.kcpphysio.co.nz/images/bannerimages_self.jpg


Force # 111

Healthcare systems are broken, needs structural repair and

restoration of public trust.

“America’s Health Care system is in crisis precisely because we

systematically neglect wellness and prevention”. US Senator Tom Harkin,

2005.

The global economic crisis has fundamentally put a stall on many long-

pending healthcare reforms across most developed nations. The

sustainability of public and private health spending is at risk as a result of

the ripple effects of economic uncertainty. Gaps in care must be filled to

address public support and trust.


Force # 212

Boomers and the general aging population are redefining the

healthcare systems.

Demands for immediate, better, more affordable, far advanced and

collaborative care are now expected. The aging consumer and patient

will continually seek ways to be enabled to take a proactive stance when

it comes to their health.


Force # 313

Healthcare experts are no longer the sole decision providers,

consumers and patients find other partners to support their health

goals.

Recent studies revealed that generally women who experience some health

aberrations turn to the internet first for some basic information. Then they

seek support of family and friends before they schedule a visit to their

primary care providers.

Consumers and patients will no longer be satisfied with one or two Self

Care decision support, they will require informed networks that are as wide

and far.


Force # 414

Technology will be just as critical as medicines are to illness to enable

Self Care.

An emerging Health 2.0 has enabled technology to play a pivotal role in

healthcare as it allows the participation of multiple stakeholders to inform,

educate, diagnose, prevent, and manage various aspects of health across

manifold functions and systems.

Recent studies reported that the Internet has become the fastest growing

source of health information and facilitator of support networks. While there

are still many aspects of technology’s health application that need to be

streamlined, its impact on consumers’ desire to proactively manage their

health cannot be diminished.

Consumers and patients will continue to seek technology enabled

information, interface with support systems for the exchange of information

and services at an accelerated pace.


Force # 515

Lifestyle management and the desire for consumer and patient behaviour

change are at the centre of Self Care.

In the last few years, many options and choices for prevention, health

enhancement, evaluation and treatment were introduced to the consumers and

patients.

The range of new approaches and interventions were sweeping and consumers

and patients eagerly tried many of them.

If they are generally healthy, they will engage in activities that will enhance and

maintain their health. If they are ill, they know there are things to take beyond

medications, when they are vulnerable and at risk, they will seek interventions to

prevent diseases. They will not take chances on their future.

Consumers and patients will adopt vital modifications in their attitudes and

behaviour toward the achievement of their health goals.


The Self Care Continuum

The self care continuum

Pure self care

Individual

responsibility

Pure medical care

Abdicated

responsibility

Daily

choices

Lifestyle

Self-managed

ailments

Long-term

conditions

Compulsory

Medical

CareMinor

ailments

Acute

conditions

Major

trauma

Healthy living Minor aliments Long-term conditions In-hospital care


The Pillars of Self Care

Health

Enhancement

PreventionPrimary

Secondary

Tertiary

Diagnostics Health Restoration


Do you understand desired consumer behaviour changes?

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Our Opportunity Discovery Framework19

HEALTH

SELF CARE

BEHAVIOUR CHANGE

THE EVOLVING

CONSUMER

OTC – SELF MEDICATION

CATEGORY PERFORMANCE

GEOGRAPHY & CHANNEL

MERGERS & ACQUISITIONS

INDUSTRY – CENTRIC

CONSUMER – CENTRIC

HISTORICAL & STATICEVOLVING


Consumer Behaviour Change : Self Care Framework

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Awareness of

Health

Condition/Problem

Awareness of

Severity

Awareness of

Cause

Motivational Drivers/Barriers

CONSUMER BEHAVIOUR

Appeal, Relevance

Importance

Social Support

Influencers

Personal Risks

OutcomeExpect-ation

Self Efficacy/

Capability

Acces-ibility

Afford-ability

Readiness to…

LISTEN, ACKNOWLEDGE, ACCEPT and ACT


Opportunity!21

What trends enable markets to grow faster and bigger

(enablers, new or converging technologies, environment and

societal change)

How can you make a difference?

(unmet, unserved,or latent consumer needs)

Where can you make a difference

(capabilities, know-how, competencies, processes and leveragable assets)


Who are influencing your consumers’ behaviour?

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“People influence each others in teams. But they influence each other even beyond personal interaction. Research has indicated that people can influence each other out to at least three degrees of separation.” David Wolfe,

Ageless Marketing


Influencer Considerations 24

TRUST

Source of Information

InterestPower and

Impact

Multiple Influencers

Ease of Access

AttitudeWeb

Complexity

Ranking

Prioritization

Quantification

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Influence Mapping - Rating of Influencer Groups -Example

Input in Yellow Boxes OnlyThere are 3 categories of inputs

- Criteria, influencer, and score

Criteria for Influencer Rating - Against Target Consumer

Criteria Description

Usage Percent of people that use that specific influencer - eg 22% of consumers go to the doctor for information

Credibility/Trust Percent of those influenced who believe the influencer is a credible resource

ImpactPercent of Influencers who have the ability to create instant decision

Short vs Long Term Percent of time this influencer can become an influencer very quickly without much effort

Sphere of Influence Percent of Influencers in the group that can influence in large numbers

AttitudePercent of influencer group that are clear advocates of the brand (or could be with proper informaton) - Note: 0 represents a brand killer

Cost Percent of money relative to the cost of Mass

1 Mass Score 2 Friends and Family Score 3 Trade/In-store Score 4 Health Web Sites Score

Usage 1 Usage 1 Usage 1 Usage 1

Credibility/Trust 0.3 Credibility/Trust 0.3 Credibility/Trust 0.3 Credibility/Trust 0.3

Impact 0.4 Impact 0.4 Impact 0.4 Impact 0.4

Short vs Long Term 0.5 Short vs Long Term 0.5 Short vs Long Term 0.5 Short vs Long Term 0.5

Sphere of Influence 0.6 Sphere of Influence 0.6 Sphere of Influence 0.6 Sphere of Influence 0.6

Attitude 0.7 Attitude 0.7 Attitude 0.7 Attitude 0.7

Cost 0.9 Cost 0.9 Cost 0.9 Cost 0.9

Total 22.68 Total 22.68 Total 22.68 Total 22.68

5 Gov't Web Sites Score 6 Blogs Score 7Health Media -

Traditional Score 8 Doctors Score

Usage 1 Usage 1 Usage 1 Usage 1

Credibility/Trust 0.3 Credibility/Trust 0.3 Credibility/Trust 0.3 Credibility/Trust 0.3

Impact 0.4 Impact 0.4 Impact 0.4 Impact 0.4

Short vs Long Term 0.5 Short vs Long Term 0.5 Short vs Long Term 0.5 Short vs Long Term 0.5

Sphere of Influence 0.6 Sphere of Influence 0.6 Sphere of Influence 0.6 Sphere of Influence 0.6

Attitude 0.7 Attitude 0.7 Attitude 0.7 Attitude 0.7

Cost 0.9 Cost 0.9 Cost 0.9 Cost 0.9

Total 22.68 Total 22.68 Total 22.68 Total 22.68

Influence Mapping – Scoring Process

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20

40

60

80

100

120

140

Influencer Ranking


Influence Map

Doctors

Professional and Other

Associations

Other HCPs

PR

Health Websites

Health – TV, Magazines, Newspapers

Dieticians

Mass

User CME

Blogs

Company Materials

Medical Journals

Peer Groups

Friends and

Family

Gov’t Websites

In-Store

Thought Leaders

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Strategic Implications 28

Target Consumer Behaviour Leverage on consumers’ desire to ……

Frame of Reference The big category is….

Claims, Messaging and Point of Differentiation

Differentiate by leveraging on……

Influencer Priorities Seek support and confirmation first from experts ….. Establish credentials across all identified influencers.

Influencer Engagement and Relationship Building

Early engagement of ……

Communication Vehicles Professional Education Industy collaborationConsumer Groups Mass


Do you know your value drivers and how they impact your financial outcomes?

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VA L U E D R I V E R A N A LY S I S I D E N T I F I E S S T R AT E G I E S , A P P R O A C H E S , B R A N D O R C O M PA N Y C A PA B I L I T I E S T H AT

D I R E C T LY I M PA C T E C O N O M I C VA L U E .

VALUE DRIVER ANALYSIS™

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Finding Value Drivers

Marketing Value Driver Definition

Value Drivers are the crucial organizational capabilities, strategies or activities giving the firm competitive advantage and therefore positively influence financial outcomes

Value Drivers are ideally aligned to corporate structure, strategy, and capabilities

Value Drivers are relevant to the corporation or business unit and when positivity driving value are unique individually or in combination as drivers or in how they are applied

Value Drivers impact Cash Flow

Value Drivers Discovery Process

Consumer understanding

Company successes and failures and reasons why (complete business understanding and analysis)

Management interviews and/or workshops

Investments to Build Value

Investments to Lower Costs

or Create Efficiency

Divestment in Value

Destruction

Reduce Capital Cost

Growth Drivers

Cost Drivers

Financial Drivers

Value Driver Options

Improved

Value


Value Drivers – Example

1. Science Based

Company Mission

Share w Peers

Share w Media

Science backed

Creates barrier to competition

Leveragable in marketing

Allows Price Premium (profitable)

Value Driver Application How Value is Created

ValueDriver

Application How Value is Created

Value Rank (judged)

SalesImpact (Time

Period)

Cost –Direct

and Indirect (Time

Period)

Value Created (Time

Period)

Performance Rating (based

on valuecreated)

Comments Implications to Strategies (against

issue)

Strategic Options based on Value

Drivers

Science Based •Company mission•Proof•Share w Peers•Share w Media•science backed

•Creates barrier to competition•Leveragable in marketing•Allows Price Premium (profitable)

1 4 Add new, unique claim and back up claim with science, proprietary science where

possible

Marketing Value Drivers – Example Template


Strategic Scenario Analysis35

Generating strategic options is one

thing……

Choosing the BEST option is entirely

different

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Issue: New Product Launch Alternatives

Assumption Inputs NPD1 NPD2 NPD3 NPD4 NPD5

Share Increase - Pts 5 4 0 4 0

Market Decrease - % 50 50 0 25 0

Cannibalization - % 35 35 0 35 0

Distribution - % 0 0 0 0 30

HH Penetration % 0 20 0 20 0

Current 2007 NPD1 NPD2 NPD3 NPD4 NPD5

Sales $47,434 $46,967 $45,201 $47,434 $47,832 $44,518

Gross Profit - % 79.0% 79.0% 79.0% 79.0% 79.0% 79.0%

Gross Profit - $ $41,822 $41,411 $39,857 $41,822 $42,172 $39,518

GP Difference -$411 -$1,965 $0 $350 -$2,304

Scenario Impact Analysis - 1 year Impact

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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total

NPD1 $47,434 $47,434 $40,234 $38,724 $38,724 $35,774 $33,403 $33,403 $33,403 $33,403 $381,936

1 2 4 3

NPD2 $47,434 $44,484 $37,284 $35,774 $34,265 $31,315 $28,943 $22,943 $22,943 $22,943 $328,328

4 1 2 2 4 3 5

NPD3 $47,434 $47,434 $40,234 $40,234 $40,234 $37,284 $34,912 $34,912 $34,912 $34,912 $392,503

1 4 3

NPD4 $47,434 $47,434 $40,234 $38,724 $38,724 $35,774 $33,403 $33,403 $33,403 $33,403 $381,936

1 2 4 3

NPD5 $44,518 $44,518 $44,518 $44,518 $44,518 $44,518 $44,518 $37,318 $37,318 $37,318 $423,577

1

1 2 3 4 5 6

Action Comp Launch CL Next Generation Price Decrease Cost Increase Endorse

Impact 90% 20% 5% 50% 50%

Ten Year View of Financial Analysis


More About The Business Workshop Inc.

Senior Marketing Practitioners

Experts on Health Care, Self Care, and Women's Health

Internationally published study on Women's health

Internationally published articles on Self Care

Focus of 20 years of marketing service

Senior Marketing roles with P&G, Novartis, Warner Lambert

Strategic Development work with J&J, Nycomed, Pfizer, GSK, CVT, Ryvita, Uncle Bens, etc

Partnership with Prof. Robert Shaw , Value Based Forum, UK - based Organization

Global Network Partner, Nicholas Hall & Company

We build economic value.

Our Marketing for value™ philosophy enables the right strategic decisions for a better financial future.

We discover and leverage opportunities in Self Care.


W E B U I L D E C O N O M I C VA L U E .

O U R M A R K E T I N G F O R VA L U E ™ P H I L O S O P H Y E N A B L E S T H E R I G H T S T R AT E G I C D E C I S I O N S F O R A B E T T E R

F I N A N C I A L F U T U R E .

Our Mission

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G R A C E @ T H E - B U S I N E S S - W O R K S H O P. C O M

B O B @ T H E - B U S I N E S S - W O R K S H O P. C O M

9 0 5 . 3 1 5 . 5 0 4 4

T H E - B U S I N E S S - W O R K S H O P. C O M

4 1 4 5 N O R T H S E R V I C E R O A D

B U R L I N G T O N , O N L 7 L 6 A 3

THE BUSINESS WORKSHOP INC.40

mailto:[email protected]










Tbwi Self Care Opportunity Model Apr 09

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