1. Bupa
Ekaterina Mukovnikova | n8936820
Artem Pilipchuk | n937124
Business Proposal
Team 6
2. Market Research: Key Findings
Rapidly ageing
population
01
Population growth
is driven by 65+.
This age group is
projected to
increase in size by
50% over the next
20 years globally
(WARC, 2015)
Cardiovascular
diseases (CVD)
02
Technological empowerment 03
CVD is
preventable
04CVD is Australia's
leading cause of
death (Heart
Foundation, 2015)
Increase by 15% of aged people
who are likely to purchase a
wearable device in 2016.
The “ageing in place” technology
market is predicted to increase from
$2bn to $30bn (US) (WARC, 2016)
Combining the prognostic information contained
in ECG variables improved integrated
discrimination for prediction of CVD death by
2.5% = 93,000 lives (Cardiol, 2014)* ECG (Electro Cardiogram)
3. Deaths are due to
cardiovascular diseases (CVD)
1 in 6
Problem | Bupa
12
Every 12 minutes one
Australian dies due to
CVD (Heart Foundation,
2015)
90%
Of adult Australians have at
least one risk factor for CVD
3.72m
Adult Australians die every
year due to CVD
30%
CVD claimed the lives of
43.603 Australians (30% of
all deaths)
12%
of total health expenditure
CVD is the most expensive
disease group
Problem | Society
73.2%
Proportion
of total
claims of
people 65
and over
8.6
Average
GP visits
per
person
per year
5.69%
Bupa’s
premiums
growth
4. 0,13%
Market share growth
A medical-grade mobile ECG solution,
providing on-demand heart monitoring services
and instant detection of AF as well as the
ability to empower patient-provider
relationship
01
03
04
02
Participatory Health
Transformation in the patient-provider relationship
Technological Empowerment
65% of Australians over 65 have a mobile device and 1 in 10
have a wearable device (BMI Research, 2016)
Knowledge Gap
1.4% of people aged over 65 (50,000 Australians) have AF but they
are unaware about it
The Unmet Market Need
Convenient, reliable and on-demand device
that can detect Atrial Fibrillation (AF)
Market Opportunity for Bupa
$15,401,680
Potential profit opportunity in year 3
5. Solution - Kardia
heart monitor works by sensing the series of electrical impulses that are
turned into ultrasound signals transmitted to the attached smartphone's
microphone
01
Download the Kardia
app to smartphone,
tablet, or Apple Watch
02
Record an ECG in just
30 seconds
03
Constantly share heart
data with a doctor, or
keep a journal of ECGs
6. FDA-Cleared
Kardia is the most
clinically-validated
mobile ECG available
More Than ECG
It can track palpitations,
shortness of breath,
dietary habits, sleep
and exercise patterns Expert ECG
Analysis in 30
seconds
Instant ECG analysis
and consultations with
board-certified
cardiologists
Kardia Features
7. Target Market: User Personas
Adoption of Technology
65% have a mobile device
Behavioristic Segmentation
Confident, experienced and
sophisticated with positive outlook.
Health, environmentally and fiscally
conscious. Likes: news, lottery,
health food, gardening.
Purchase behavior based upon
functional grounds. Skeptical to
marketing activities
Age Group
65 and over
Generation
Baby Boomers
Population in Australia
2.3m, 12.1% of population
Household Income
$72K
Geo Segmentation
Living in cities or towns
where they own their own
home
8. 02
01
03
04
Health
Is a key factor in happiness and quality of life
(WARC, 2016)
Technology
They are keen to spend on new experiences
and technological health goods (WARC,
2015). Data privacy is the key concern
Support
52% felt that they need emotional support
beyond family and friends
Creativity
Making aged care not only better but
creating something different (EY, 2016)
The Consumer Insights
9. Points of difference
Accessibility
Accuracy of analysis
Convenience
Quality
Unlimited cloud storage
Data privacy
24/7 Support
Compatibility
FDA-Cleared
Affordability
Instant ECG analysis
Finalist of Asian innovation
awards 2006
Patient involvement
Marketing Mix
Product design – inclusive
design & visual clarity
Price – Good value for
money
Place – indirect distribution
channel
Promotion – the key is to
increase awareness and
stimulate product trial (Refer
Slide 11)
USP (Unique Selling Proposition)
Kardia Mobile allows to capture
single-led ECGs anywhere, anytime
and in 30 seconds
Value Proposition
Kardia is a simple, cost-effective and
reliable device for doctors and patients
to communicate about heart health
Core Value
Mobile Device
Value Proposition
11. Awareness01
Interest02
Evaluation & Trial03
Adoption04
• TV
• Radio
• Direct
Marketing
• Sponsorship
• Partnership:
Heart
Foundation
• Publicity
• Print media
• SEO
• SMM (40% of
65+ are using)
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Market Entry Strategy
• Partnership
• Sponsorship
• PR
• WOM
• Event-
marketing
• 24/7 Consumer online support
• Interpretation service
• Text “from the heart”
• Partnership with healthcare
providers
• TV
• Radio
• Partnership
• Publicity
• Print media
• Print advertising
• PR
• Direct marketing
• Sales promotion
• SEO
• SMM (40% of 65+
are using)
• WOM
12. 2.3m 34%
2 years
2 months
21,80% $8,933,760
ROI
Return On
Investment
Market
Size
Payback
Period
IRR
Internal Rate of
Return
NPV
Net Present Value
Financial Projections
13. Key Partnerships
1. AliveCor, Inc.
2. Healthcare providers
3. Mobile companies
4. Medical networks
5. Health institutions
6. Government agencies
7. Aged care centers
8. National health
foundations
9. Pharmacies
10. Non-government
organizations
Key Activities
1. Download the Kardia
app to a smartphone,
tablet, or Apple Watch
2. Record an ECG in 30
seconds
3. Receive a personalized
report and actionable
heart health advice
4. Instantly share heart
data with a doctor, or
keep a journal of your
ECGs
Business Model
USP
Kardia Mobile allows to
capture single-led EKGs
anywhere, anytime in 30
seconds
Customer Relationships
1. Self-service equipment
operated by customers
2. Customer service staff members
3. Interpretation service
(uploading the ECGs to be
analyzed by qualified teams of
doctors)
4. Consultations in healthcare
providers
Cost Structure
1. Device costs
2. Educational costs
3. Marketing costs
4. Operational costs
5. Information research costs
Key Resources
1. Knowledge from doctors
2. Communication
standard from mobile
company
3. ECG mobile devices
4. Database
Channels
1. The Kardia App
2. 24/7 Customer
support: Bupa &
AliveCor
3. Websites: AliveCor
& Bupa
4. Direct marketing
5. Bupa’s branches
6. Healthcare
providers
Revenue Streams
1. Decrease in healthcare costs
2. Acquisition of new customers
Customer Segments
Age – 65+
Generation – Baby Boomers
Household Income - $72k
Household size – 1 or 2
Population in Australia – 2.3m,
12.1% of the population
14. Thank you for your attention.
Hold your heart in your hands.
15. CRITERIA LEVEL TREND
Capital intensity Low NA
Technology & Systems Medium NA
Revenue volatility Low NA
Regulation and policy Heavy Steady
Industry Assistance High Uprising
Market Share
Concentration
High NA
Competition Medium Uprising
Barriers of Entry High Steady
Globalisation Low Steady
Life Cycle stage Growth NA
INDUSTRY STRUCTURE
REVENUE PROFIT NUMBER OF BUSINESSES
$22.5 billion $1.6 billion 33
NSW
VIC
QLD
WA
SA
TAS
ACT
NT
0
5
10
15
20
25
30
35
States
Percentage of total population covered
% OF TOTAL POPULATION COVERED BY STATE
28%
27%11%
7%
6%
22%
MARKET SHARE (GENERAL)
Medibank
BUPA
HCFAL
NIB
HBF
Other
ANNUAL GROWTH 11-16 WAGES
6.5% $1.0 billion
KEY STATISTICS SNAPSHOT
Summary Market Analysis
KEY STATISTICS SNAPSHOT
Appendix 1 - Summary Market Analysis
16. LTV – Lifetime Value of the Customer
Estimation
NPV Analysis – Net Profit Analysis
Revenue Streams
ROI – Return on Investment
Appendix 2 – Financial Projections
