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SanaSana – Market Analysis

2.1 Competitive Landscape

Below we describe select competitors. In Appendix C we present a complete stratification map.

Figure 4. Select Competitors

General Spanish-language Portals
All-purpose sites providing search engine with links to potentially thousands of other sites
Threat High
Focus Non-medical
Capitalization High
Alliances High
Hispanic Focus High
Reliability/Quality High
English-language Health Portals
Content providers serving as stand alone entities with news, community, interactive applications, and medical advice from professionals
Threat High
Focus Medical
Capitalization High
Alliances High
Hispanic Focus Low
Reliability/Quality High
Spanish-language Health Portals
Sites with links to Spanish-language health sites worldwide; focused exclusively on health and targeted towards Spanish-speaking consumers
Threat High
Focus Medical
Capitalization Low/Medium
Alliances Low
Hispanic Focus High
Reliability/Quality Medium
Insurance and Managed Care
Sites serving primarily as advertising tool with expected transition to information source for members
Threat Low/Medium
Focus Advertising
Capitalization High
Alliances Medium
Hispanic Focus Low
Reliability/Quality High
Governmental Organizations
Usually static text files with links to government-generated health information for consumers
Healthfinder Threat Low
Focus Medical
Capitalization Medium
Alliances Low
Hispanic Focus Low
Reliability/Quality High
Private Content/Physicians
Content developed by private citizens and physicians in solo or small group practices
Private citizens
Solo practices
Small groups
Threat Low
Focus Solely medical
Capitalization Low
Alliances Low
Hispanic Focus High
Reliability/Quality Low

Despite the growing number of Spanish-language medical sites, the quality and breadth of information remains limited. While all pose potential threats, they leave gaps in the competitive landscape. No competitor focuses on being the single source of health information for the Spanish-speaker. Redirection and links are quite prevalent, and the path to high-quality information is not clear. SanaSana will be the only bilingual, customized health information destination that supports interactive community activities and makes the issues of the Hispanic and Latino healthcare consumer our priority.

2.2 Market Size and Growth

2.2.1 Hispanic and Latino Consumers
Two primary market phenomena make this consumer segment attractive to SanaSana:

  • Hispanics and Latinos represent the fastest growing segment in the United States. With over 2% annual growth for decades to come, the size of segment will surpass that of all other ethnic groups combined by the year 2020. In addition, nearly 50% of Hispanic and Latino households are projected to have Internet access by the year 2005.
    Figure 5: Growth Trends for Hispanics and Latinos in the U S

    1999 2001 2003 2005
    Total U.S. Population (000s) 272,888 277,800 282,800 287,700
    Total U.S. Hispanics (000s) 32,000 34,700 35,900 38,200
    Total U.S. Hispanics Online (000s) 3,541 6,445 8,379 14,160
    Total U.S. Hispanic Households (000s) 9,200 9,600 9,900 10,300
    With Intemet Access 16.6% 24.0% 34.3% 49.5%

    Source: “Falling Through the Net: Defining the Digital Divide “, U.S. Department of Commerce, July 1999.

  • Hispanics and Latinos increasingly turn to the Internet for health information. Over 17 million U.S. adults have searched the Internet for health information. This number will surpass 30 million by year-end. Of these, over 15% are ethnic minorities.3
  • Hispanic and Latino purchasing power is higher than ever. Purchasing power is — $400B in 2000. Hispanic buying power has grown over 67% since 1990. In 1998, advertisers spent more that $2 billion trying to reach consumers of Hispanic descent.4

2.2.2 Business Partners
SanaSana provides a way for providers of health and non-health related products and services to focus their marketing efforts on an attractive, targeted population. In exchange for the unique and valuable menu of services SanaSana offers (described in Section 1.1.2), these business partners provide SanaSana with significant revenues. Among business partners, four alone (drug companies, hospitals, physicians, and medical equipment suppliers) enjoyed combined revenues of over $715 billion. SanaSana can reduce their marketing and sales expenses in exchange for a part of the savings.

  • Third party payers of health services-like insurance companies and the U.S. government spent extraordinary amounts for healthcare reimbursements. These payers continually search for more efficient ways to decrease the amount of unnecessary care.
  • Providers of healthcare-such as hospitals and pharmacies-have marketing and sales budgets to attract new customers for their services. Many of these providers would be willing to pay SanaSana for access to a highly targeted market.5
  • Suppliers in health services-from academic medical institutions to medical equipment companies-also will pay for access to SanaSana’s consumers. For instance, the pharmaceutical industry alone will spend an estimated $1.5 billion in 1999 on untargeted direct-to-consumer marketing.6
  • Non-health services suppliers-like consumer products companies-offer more and more “healthy living” products. Allergy control cleaners and “heart smart” foods represent just two such product lines. These companies will pay in exchange for the opportunity to perform focus groups and test their products with SanaSana consumers.7

2.3 Market Test Results

Between August and December 1999, the team conducted 64 interviews and surveys with consumers and physicians. We also met with more than 22 representatives from pharmaceutical, consumer products, hospitals, and insurance companies to obtain feedback and gauge interest on our idea. The results of this primary research support our initial hypothesis for the merits of this business concept. All results signal a strong need for our products and services across our target Hispanic consumers and our industry partners.

Key insights from consumers, physicians, medical teaching institutions, pharmaceutical and consumer product companies:

  • Consumers: Consumers crave personalized health information, preferably in their native language.
  • Physicians: Hispanics are less educated about health and less medically studied than typical patients.
  • Medical Teaching Institutions: There is a general lack of quality health information provided in Spanish, and they would be willing to pay for access to such information.
  • Drug Company Representatives: Due to the growing Hispanic and Latino populations, drug companies desire access to this demographic for participation in clinical trials.
  • Consumer Product Brand Managers: Future growth opportunities in consumer products exist through the creation of separate products for the health conscious consumer, and especially the Hispanic consumer.

Table of Contents Appendices
0. Executive Summary
1. Business Description
2. Market Analysis
3. Management Team
4. Operating Strategies
5. Financial Projections
6. Business Risks
Health Demographics
Future Business Offerings
Competitive Landscape
Internet Usage and Penetration
Technical Infrastructure Implementation
Detailed Financial Statements
All information herein is confidential and belongs to SanaSana.

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