HOTCHPOT Strategy of Further SMS for Life Project

HOTCHPOT Strategy of Further «SMS for Life» Project Development Irina Garibian ● Nikolai Durmanov ● Alexey Vlasov ● Kirill Skorodumov

HOTCHPOT Гарибян Ирина 2 курс СПБГУ 8 (952) 276 -50 -85 / irisha 93 -93@mail. ru Санкт-Петербург Дурманов Николай 2 курс СПБГУЭФ 8 (904) 609 -80 -50/nikolaidurmanov@gmail. com Санкт-Петербург Власов Алексей 1 курс СПБГПУ 8 (953) 172 -02 -32 / alex. vlasov@yahoo. com Санкт-Петербург Скородумов Кирилл 3 курс СЗИУ 8 (911) 790 -23 -46 / skara 93@mail. ru Санкт-Петербург

HOTCHPOT Sustaining the social value of “SMS for Life” and the use of the system’s competitive value to influence distribution and sales Inner responsibility of Novartis How to influence the sales? How to sustain the social value? Expansion into Africa’s markets Offer the information to other companies External investments Charity (Donation)

HOTCHPOT Region selection + • Low level of competition • High demand • Low level of industialisation (introduction of computer-based systems is unnecessary) - The most promising markets • Low purchasing power • Undeveloped infrastructure(soft + hard) • Possible issues, connected to international communication Summary • Entrance to the market definitely means massive expenditures, however appears profitable in a long-run *The choice of the regions is based upon: 1. The number of cases registered of the following diseases: HIV/AIDS; malaria; tuberculosis 2. The increase in number of cases of the diseases since 2008

HOTCHPOT Sales growth is possible as a result of expansion into Africa’s markets «Sms for life» for other medicaments Accompanying Novartis’ offers Using the system for other Novartis’ goods • Africa’s supply • Search of telecommunications services provider(s) • Further development of “SMS for Life” and its adaptation for other services • Corporate personnel training • Defining the most needed/profitable good for each region • Sample supply-packages • Advertising and marketing campaigns • Development and extension of “SMS for Life” usage • Introduction of new databases for all the goods • Monitoring, analysis and statistics reports • Novartis -> new markets • Decrease of logistics and warehouse costs • Increase of overall sales

HOTCHPOT Additional profit by offering the supply/demand information in the region to other competitors Level of potential demand for other companies Pharmaceutical companies Non-Governmental Organizations Research institutes Pharmaceutical production distributors • Offer information-gathering system • Development of the system to meet customer’s demands • Performing the system to collect the information and create databases

HOTCHPOT How to keep the project running ? External investments Orienteering the project for spreading diseases Search of partners, working on solving the problems Offering to cooperate with Novartis Search of medicaments’ suppliers (if Novartis lacks/doesn’t offer the necessary medicaments itself) • Expanding “SMS for Life” usage areas • • Charity (Donation) • Popularisation of health problems in African countries • Offering the system as a potential solution • Development of a system to collect funds to keep the project functioning/ supply the treatments directly • Fund raising based on interested business entities/natural persons

HOTCHPOT It is necessary to create additional accountable organization to exercise depict measures Department aims: • • • Sustenance and modernization of «SMS for life» system Elaborationsof new technological ideas Creation of the ideas exchange system between the staff within the company Ideas collection and selection on modernization of company working Introduction of IT and its operation Working out and IT Introduction Department • Introduction of new innovation department will help company to develop successfully the usage of «Sms for life» system and create new technologies similar to this one • Most concerned and initiative staff like Jim Barrington is recommended to be included in the department • The possibility to attract the company workers who are full of ideas on improvement company working

HOTCHPOT The List of Potential Partners Diseases NGO AIDs/HIV • • Stitching Global Network of People Living with HIV/AIDS UNICEF International AIDS Society Catholic Institute of Education AIDS Fonds (Holland) Health Connections International Global Fund to Fight AIDS Tuberculosis • • • International Union Against Tuberculosis and Lung Disease Stop TB partnership Health Connections International World Lung Foundation LNAC (Kongo) Malaria • • • Stop Malaria Now! Africa Malaria Network Trust Health Connections International Tamtam (Afrika) Africa Fighting Malaria Medicines for Malaria Venture

HOTCHPOT Analysis of Markets Attractiveness Reported malaria deaths, 2005 -2011 Indicator of GNI of potential markets in Africa Name GNI Population Nigeria Lower middle income 1, 200 162, 470, 737 Ethiopia Low income 400 84, 734, 262 Kenya Low income 820 41, 609, 728 Namibia Upper middle income 4, 700 2, 324, 004 South Africa Upper middle income 6, 960 50, 586, 757 Source: World Malaria Report 2012 (WHO) , World Development Indicators 2012

HOTCHPOT Costs • • First-year operations of the project Payment for the services of cellular providers Staff for the on-the ground training and implementation services Technical elaborations for improvement the system $ 850 000 Thus, for 4 suggested countries costs are: $ 3 400 000 + 340 000* + 1 000** = $ 4 780 000 *10% from $3400000 - additional costs **launching and upkeep new department costs