This project plan is for the unified version of the Entrepreneurship Design Competition for college students, which is provided by the Wuxi Human Resources Research Institute, all rights reserved. Therefore, the draft is used for reference. In order to avoid excessive length, part of the content has been deleted, and the corresponding position is indicated by "omitted".
Contents
I. Executive Summary
II. Background of the Project
III. Market Opportunities
IV. Company Strategy
V. Marketing
VI.
X. Opportunities and Risks
XI. Exit of Venture Capital
Appendices
1. Market Volume Estimation Sheet
2. Market Survey and Qualitative Analysis Sheet
3. Financial Schedules
1. Executive Summary
1.1. The Company
The Crustacean Materials Research &. Development Limited Liability Company is a proposed company, which owns the patented technology of chitin fiber preparation, advocates the new concept of science and technology-based green life, and provides mankind with the best natural biological products.
China's medical sutures have an annual market demand of about 1.5 billion yuan, of which about 750 million are absorbable sutures. The company was initially established to produce medical chitosan absorbable sutures to meet the needs of the rapidly growing absorbable suture market, and used the investment to build a factory solution aimed at solving the problem that most of the PGA (Polyglycolic Acid) type of absorbable sutures rely on imports, which are expensive and have an impact on the improvement of people's standard of medical care.
The company focuses on the combination of short-term goals and long-term strategy, the medium and long-term goal will gradually broaden the product field, involved in chitin medical antibacterial materials, drug slow-release materials, artificial organs, cosmetics, health food, health care clothing fabrics, new environmentally friendly packaging materials, fast-food appliances, etc., to form a diversified group of companies to chitin materials as the core business.
1.2. Market
The medical suture market is a group market, and the purchasing process is a group purchasing behavior.
Currently, China's large number of medical sutures used mainly silk thread, sheep intestine thread and PGA class absorbable thread. Sheep intestinal thread material itself is defective, PGA class suture production costs remain high, the scope of use are affected. Medical chitin sutures will enter the market on this entry point.
Medical chitin sutures use competitive pricing strategy to enter the market. The production cost of the product is about 2.1 yuan per suture, which is one tenth of PGA suture; the average pricing is 30 yuan per suture (according to the survey, the acceptable price in the market is 30-40 yuan per suture), which is about 1/2 of the average market price of PGA suture, and there is more room for price reduction.
The company will set up seven regional distribution centers across the country to establish a sound marketing network with agents and dealers.
Products into the market in the process will be a large number of complimentary products for doctors to try as a means of promotion and means to increase market share, the first year to give 900,000, the second year 1.6 million, the third year after the annual gift of 800,000.
The international leading chitin fiber preparation patent technology is the key to the preparation of medical chitin sutures. The company will establish ISO9000 quality management system and strive to obtain international ISO9000 quality management certification.
1.3. Investment and Finance
The company is located in Wuxi and enjoys the tax incentives of "three exemptions and three halves".
The company needs 11 million dollars for the initial establishment. Among them, venture capital is 7 million, Donghua University invests 1 million, and short-term borrowing is 3 million. Which is used for fixed asset investment of 6.02 million, working capital of 4.98 million. In addition, Tianpure Biomaterials Co., Ltd. equipment into 1 million.
Size and structure of the share capital is tentatively set as follows: the company's registered capital of 12 million. Foreign venture capital into the 7 million (58.33%); xxxxx patent technology into the 3 million (25%), capital into the 1 million (8.33%); xxxxx company equipment into the 1 million (8.33%).
The estimated profit for the second year is 10 million RMB, and the sales profit margin for each year thereafter is about 45%, the return on assets for the second year is 75.39%, and the payback period is two years and one month.
Venture capital is best withdrawn in the 3rd-5th year, using the acquisition method is more suitable for the Company.
1.4. Organization and Human Resources
The nature of the company is a limited liability company, and the initial organizational structure adopts a linear system. The company's ownership and operation rights are separated, and the general manager is responsible for the system. Under the general manager, there are vice general manager of marketing, vice general manager of technology and vice general manager of finance.
The patent of chitin fiber preparation technology belongs to Donghua University, Professor Tan Zhiqing and other teachers are the inventors of the patent technology. Professor Tan Zhiqing has many years of experience in the industrialization of scientific and technological achievements, will serve as chairman of the board of directors of the company and vice general manager of technology; entrepreneurial team members will be involved in the company's marketing and financial management; the company has also hired the Department of Marketing of Donghua University, Professor Gu Qingliang as a marketing consultant.
2. Project Background
2.1. Industrial Background
In recent years, China's medical device industry has been developing rapidly. 1978, the total output value of China's medical device industry was 730 million yuan. By 1995, according to the State Administration of Medicine statistics for 8 billion yuan, while the survey shows that the actual total output value of the national medical device industry amounted to 16-18 billion yuan, equivalent to 22-25 times in 1978, accounting for about 2% of the world's total sales. China's medical device industry development lags behind the chemical drug industry, the ratio of medical equipment and drug sales in developed countries is close to 1:1, while China is only 1:10, so there is great room for expansion.
According to the survey, the value-added of high-performance medical textiles can reach about 1:50.
At present, China's large number of medical sutures used in three kinds of thread: silk thread, sheep intestines and PGA class absorbable thread. Sheep intestinal thread and PGA-type sutures are absorbable sutures.
Sheep intestinal thread production process is backward, pollution of the environment, poor absorbability, easy to allergic and antibody reaction. At present, it exists only because of the price advantage.PGA-type absorbable sutures rely heavily on imports, which not only cost a lot of foreign exchange and increase the economic burden of the country and surgical patients, but also have a certain impact on the improvement of China's surgical level.
According to a report by Taiwan's Industrial Technology Research Institute (ITRI), the global market for medical sutures was estimated to be worth 1.5 billion dollars in 1994, with an annual growth rate of about 4%.
According to Taiwan's Institute of Chemical Industry, there are only three factories in the world that produce PGA raw materials, and it is extremely difficult to obtain them, and prices remain high. In addition, PGA water content is too high will lead to material hydrolysis degradation, mechanical strength decline, the quality of the suture is seriously affected.
As a pure biological product, the absorbable suture made of chitosan can be completely absorbed by the human body without toxic side effects, and can meet all the indexes as an absorbable suture, which is in line with the theme of green and environmental protection of social development, and it is an alternative to the PGA-based absorbable suture. On the basis of absorbing the advantages of imported absorbable sutures, the research and development of chitinous absorbable sutures with superior performance and appropriate price is in line with social and market requirements.
The production of medical chitin absorbable suture is ahead of its time in the world, and has long-term economic and social benefits for promoting the development of China's medical device industry, improving people's medical standards, and reducing the burden of foreign exchange of the country.
2.2. Product Overview (Omitted)
2.3. Advantages of Crustacean Absorbable Suture
It has been proved by clinical experiments that, compared with the existing sutures, the Medical Crustacean Absorbable Suture possesses the main advantages as an absorbable surgical suture:
. Pure biological products, good compatibility with the human body, small wound scar;
. The raw material is widely found in marine life, the cost is one tenth of PGA products;
. Forms an environment around the thread that inhibits bacterial growth, which is conducive to wound healing;
. Non-toxic, non-irritant, no antibody reaction, can be completely absorbed by the body;
. Sufficient tensile strength and flexibility, in full compliance with the requirements for the preparation of absorbable sutures;
. Easily preserved and hardly decomposed in air;
. Can withstand sterilization treatment, can be dyed, antiseptic treatment, etc.
. Senior professors, experts, researchers as scientific research, strong R & D strength, patented technology international leading.
2.4. Chitin application prospects
Chitin is a natural polymer, a new type of environmentally friendly materials, has a wide range of uses in the field of medicine, agriculture, light industry and other fields. In medicine, it can be used to make artificial skin, drug release materials, hemostatic agents and wound healing agents, artificial organs (such as artificial kidneys, artificial blood vessels), etc.; in agriculture, it can be used for the production of chitosan, chitosan-coated pesticides, degradation of mulch film, etc.; in light industry, it can be used for cosmetics, health care products, functional clothing, environmentally friendly packaging materials and so on.
3. Market Opportunities
3.1. Market Characteristics
3.1.1. Overview
The actual consumer of medical sutures is the patient, the user and purchasing decision maker is the surgeon and head nurse, and the actual purchaser is the purchasing department. The market characteristics present the peculiarity of the separation of users, purchase decision makers and purchasers.
The medical suture market is a group market, and the purchasing process is a group purchasing behavior, and sales promotion is the most effective way to sell. Doctors first choose the type and size of suture according to the type of surgery and requirements, and will be influenced by the use of habits, brand preference, geographical differences and other factors.
Sutures belong to the category of medical devices, and the macro policies and regulations formulated by medical and health management organizations, such as the State Administration of Medicine and Health Bureau, will have a significant impact on their development.
The sale of medical devices should be complete with three certificates, three certificates are "Medical Device Manufacturing License", "Medical Device Sales License", "Product Conformity Certificate", and in some places, "Permission to Sell" issued by the local health authorities is also required.
3.1.2. Purchase decision-making process
In the purchase decision, doctors and chief nurses of the operating room play a very important role, and some of them are even designated or purchased by the chief nurses (especially in hospitals below the second level), and very few hospitals are purchased by the decision-making of the administration. The decision-making pattern is mainly shown in the following figure:
Figure 1. omitted
3.2. Market Segmentation
By the degree of market development, the domestic market for medical sutures is mainly divided into two categories:
3.2.1. Developed Absorbable Suture Market
It is the market for the use of sheepskin threads and PGA-type absorbable sutures.
. A large number of PGA absorbable suture market
This kind of market distribution is mainly in the higher level of economic development, higher medical level of hospitals in large cities, such as Beijing, Shanghai, Guangzhou and so on. Market characteristics are: manufacturers for the use of PGA class absorbable sutures for the preliminary publicity has been basically completed, the degree of acceptance of doctors is high, the doctor brand loyalty is high; absorbable sutures are widely used, the application of time is long; price sensitivity is low; consumer behavior is more mature.
. Markets that use a large number of sheep's intestines
The distribution of this type of market is mainly in the hospitals of large and medium-sized cities with a relatively low level of economic development, such as Xi'an. Market characteristics are: absorbable medical sutures mainly use sheep's intestines, not yet large-scale use of PGA absorbable sutures; doctors for absorbable sutures relatively high degree of acceptance; more sensitive to the price; brand loyalty is not high.
3.2.2. The Untapped Absorbable Suture Market
It is the market where absorbable sutures should or could be used and silk sutures are still used.
This kind of market distribution is mainly in small and medium-sized urban hospitals or small hospitals in big cities with low level of economic development and limited medical level. The characteristics of the market are as follows: doctors are less likely to contact or use PGA absorbable sutures; silk sutures are commonly used in surgeries; price sensitivity is very high; PGA absorbable sutures have not yet entered this type of market, and competition is slow.
3.3. Sales Channel Analysis
According to the survey, the main sales channels of medical sutures are:
. Manufacturers direct sales/local agent sales
PGA type absorbable suture manufacturers mainly use this way. Through local agents can reduce barriers to entry and enter new markets smoothly. Manufacturers' direct sales are suitable for markets with small barriers to entry. Hospitals generally trust the local agent, problems occur in a timely manner, and reputation is guaranteed.
The sales process is mainly like this:
Figure 2. Strategy
. Sales through medical equipment wholesale companies
Mainly domestic manufacturers of silk thread, sheep intestines, they have established a huge sales network through all levels of medical equipment companies, distributors, sales channels are smooth, and has a strong business relationship with the country's major hospitals in China, relatively little influence by human factors.
Figure 3. Strategy
3.4. Competitive Analysis
3.4.1. Competitive Products and Competitors
. Silk thread: cheap, still a large number of ordinary silk threads are used in surgery. Shanghai Pudong Jinhuan Medical Supplies Co., Ltd. occupies the majority of the market share of the national silk thread market, followed by the United States Johnson and Johnson's "Mousseline" is also commonly used in large hospitals in China, and domestic manufacturers in Tianjin, Hangzhou, Wuxi, Nantong, etc.
This is the first time in the world that we have seen a large number of silk threads in China.
. Sheep intestines: cheap, more often used in obstetrics and gynecology surgery, inconvenient to use, easy to cause inflammation, in the stage of being gradually replaced. Manufacturers are mainly distributed in Shanghai, Tianjin, Hangzhou and other places.
. PGA class absorbable sutures: mostly imported, domestic Nantong also have production, higher prices, manufacturers to the United States Johnson and Cyanamid (Kendall) for the most. The main use of door-to-door sales and a large number of products to give away the trial of the way to capture the market.
According to the survey, Johnson & Johnson and Cyanamid have more than 80% of the market share of absorbable sutures in Shanghai; followed by Nantong "Huarikang" also has a certain percentage. The price of "Huarikang" is about 60% of that of Johnson & Johnson and Cyanamid, but the price advantage is basically offset by its imperfect after-sales service and quality problems.
3.4.2. Analysis of Competitive Influential Forces (Omitted)
3.4.3. Competitive Advantages
The superior performance of chitin suture itself; monopoly of proprietary technology and talents; cost advantage; strong resource availability; and high and new technology in line with the direction of the government's policy development.
3.5. Market Capacity
3.5.1. Market Capacity
According to the estimation: in 1999, the domestic market capacity of medical suture was about **1.5 billion RMB. According to the survey and secondary information, the use of absorbable sutures only accounts for about 5% (including sheep's intestine thread and PGA-type thread), but the amount accounts for about 50% of the total amount, which is about **750 million. (Note: **See Appendix 1, P29 for the estimation process).
3.5.2. Trend Analysis and Forecast
According to a report by Taiwan's Industrial Technology Research Institute (ITRI), the global medical suture market is growing at an annual rate of 4%. According to the survey, PGA-type suture products have only developed about 10% of the absorbable suture market, and the market potential is huge.
At present, medical absorbable sutures are mainly used in large-scale surgeries (e.g., open thoracic, abdominal, etc.), and PGA-type absorbable sutures mainly rely on imports, on which there are strict national restrictions.
Considering the growth of the market, the annual sales of crustacean sutures are estimated to reach about one hundred million dollars in five years. (See Appendix 1, P30)
3.6. Influence of policy guidelines and WTO (omitted)