MARKETING ANALYSIS

1
MARKETINGANALYSIS
2
OUTLINE

• Previous devices
• Marketing difficulties
• Disabilities which can benefit from the device
• Marketing equation
• Funding sources
• Summary, conclusions recommendations

3
PREVIOUS DEVICES

• MANUS
• Controlled by a 16-key keypad interface
• Seven degrees of freedom (not including gripper)
• Priced around 65,000
• Helping Hand
• Controlled by a joystick interface
• Four degrees of freedom (not including the
  gripper)
• Priced around 10,000

4
Marketing Difficulties

• A total of 5 Helping Hands and about 55 MANUS
  devices sold worldwide
• Potential users are choosing alternative
  solutions
• Potential users are unaware of Rehabilitation
  Robotics

5
Solutions toMarketing Difficulties

• Demonstration centers
• Identify funding agencies
• Lease instead of buying
• Linking to existing users

6
TYPES OF DISABILITIES

• Multiple Sclerosis (MS)
• Cerebral Palsy (CP)
• Spinal Muscular Atrophy (SMA)
• Amyotrophic Lateral Sclerosis (ALS) (Lou
  Gehrigs Disease)

7
MULTIPLE SCLEROSIS (MS)

• Most often strikes women in their 20s 30s at
  a rate twice that of men
• Most common among Caucasians, especially those of
  northern European ancestry
• Almost never strikes children
• Occurs most frequently in regions of temperate
  climate
• 300,000 people in U.S. have MS
• 10,000 new cases diagnosed each year in U.S.
• 3,000,000 people worldwide have MS
• 6,000 people in U.S. experience muscle weakness
  and/or severe sensory disturbance of upper limbs
• Not fatal but shortens life expectancy by 10

8
TYPES OF DISABILITIES

• Multiple Sclerosis (MS)
• Cerebral Palsy (CP)
• Spinal Muscular Atrophy (SMA)
• Amyotrophic Lateral Sclerosis (ALS) (Lou
  Gehrigs Disease)

9
CEREBRAL PALSY (CP)

• Most prevalent life-long physical disability in
  the U.S.
• Causes seizures, mental retardation, and
  impairments of sight, hearing, and speech
• 700,000 people in U.S. have CP
• 8,000 new cases diagnosed each year in U.S.
• 175,000 have diplegia (lower limbs)
• 235,000 have hemiplegia (one side)
• 235,000 have quadriplegia (all 4 limbs)
• 60,000 of quadriplegics have moderate movement of
  upper limbs
• Non progressive, non fatal, and not curable

10
TYPES OF DISABILITIES

• Multiple Sclerosis (MS)
• Cerebral Palsy (CP)
• Spinal Muscular Atrophy (SMA)
• Amyotrophic Lateral Sclerosis (ALS) (Lou
  Gehrigs Disease)

11
SPINAL MUSCULAR ATROPHY (SMA)TYPE I
(Werdnig-Hoffman Disease)

• Usually diagnosed by 3 months of age
• Child is never able to lift his/her head
• Difficulty swallowing, feeding, and breathing
• Life expectancy is 2 years of age
• Ultimate cause of death is respiratory failure

12
SPINAL MUSCULAR ATROPHY (SMA)TYPE II

• Usually diagnosed by 15 months of age
• Child is unable to come to a sitting position
  unassisted
• May eventually stand with aid of a brace
• Fine tremor found in outstretched fingers
• Difficulty breathing
• Scoliosis will occur at some point
• Most physicians recommend a power wheelchair
• Life expectance is adolescence/early adulthood
• Ultimate cause of death is respiratory failure

13
SPINAL MUSCULAR ATROPHY (SMA)TYPE III
(Kugelberg-Welander Disease)

• Diagnosed between 18 months and adolescence
• Difficulty walking and/or getting up from a
  sitting or bent over position
• Fine tremor in outstretched fingers
• Require more assistance as life progresses
• Life expectancy is full or near full life

14
NUMBER OF PEOPLE WITH SMA

• 30,000 people in U.S. have SMA
• 235,000 people worldwide have SMA
• Breakdown among people with SMA varies
• Assuming prevalence is equally distributed 3,300
  people in U.S. have Type I 6,700 people in
  U.S. have Type II or III

15
TYPES OF DISABILITIES

• Multiple Sclerosis (MS)
• Cerebral Palsy (CP)
• Spinal Muscular Atrophy (SMA)
• Amyotrophic Lateral Sclerosis (ALS) (Lou
  Gehrigs Disease)

16
AMYOTROPHIC LATERAL SCLEROSIS (ALS)(LOU GEHRIGS
DISEASE)

• Affects people 16 through 77 years of age
• Affects men more than women at a ratio of 21
• Almoset never strikes children
• Early symptoms include persistens muscle twitch,
  muscle fatigue, or muscle wasting associated with
  the hands, lower legs, trunk, eye movement,
  speech and/or swallowing
• Advanced symptoms include loss of ability to
  dress, feed, sit up, walk, and/or speak
• 30,000 people in U.S. have ALS
• 5,000 new cases diagnosed each year in U.S.
• 150,000 people worldwide have ALS
• 10,000 people in U.S. experience upper limb
  weakness

17
ALS continued...

• Ultimate cause of death is respiratory failure
• 50 die after 3 years
• 25 die after 5 years
• 15 die after 10 years
• 10 die after 20 years

18
MARKETING EQUATION

• (number of people expected to purchase device)
  (number of people who could use device)
  0.189
• 0.189 0.84 0.90 0.25
• 0.84 is a factual number from a survey in which
  84 of people would consider purchasing
  device
• 0.90 is an educated guess that accounts for the
  fact that not all people can be reached through
  advertising and/or do not have access to
  funding
• 0.25 is an educated guess that it is conceivable
  that 25 of people who would consider purchasing
  the device actually will purchase the device

19
PROSPECTIVE USERS OF DEVICE(U.S. statistics only)
20
FUNDING SOURCES

• Private health insurance
• Amerihealth, Aetna, Prudential
• physician makes legitimate claim on patients
  behalf
• case by case basis
• could be covered 100

21
FUNDING SOURCES (contd)

• State federal health insurance programs
• Medicare
• provider or patient contacts Medicare for
  application approval
• could cover up to 80
• appeals process

22
Charity groups

• Lions Club, Kiwanis, Rotary Club,
• Pilot International, National Easter Seals
• Commonwealth Fund
• Non-profit group
• gives grants to companies and groups for further
  research
• grants not available for end user

23
CONCLUSIONS RECOMMENDATIONS

• Restricting marketing of device to children
• 10 times the number of adult users compared to
  children
• World market
• Due to time constraints, only U.S. could be
  analyzed
• Other disabilities
• rheumatoid arthritis, spinal cord injuries,
  muscular dystrophy

24

• Surveys of disability specialists
• Schools specializing in marketing
• Profit vs. good will
• Market not large enough to turn signifigant
  profit.