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Vusion – Marketing Strategy


Vusion intends to focus its initial efforts on applying the Electronic Tongue TM technology to the pharmaceutical process control industry and build market share within that specific niche.

Vusion will then broaden the scope of its market strategy to include the medical diagnostics market. This expansion will be achieved through the initial design, development, manufacture and sale of handheld, point-of-care blood and urine analyzers.

Primary Customer Analysis & Entry Strategy

Pharmaceutical manufacturers develop new drugs and other pharmaceutical products through laboratory Research and Development programs. Such product development flows from a laboratory process to mass production via the construction of a small scale manufacturing plant (known as a pilot plant). This pilot plant is used for further experimentation and process optimization, before the company completes the conceptual design of the full-scale plant.

By adopting Vusion’s analyzer technology at the pilot plant stage, pharmaceutical companies will realize immediate savings through developing a more efficient design. These savings will be multiplied in new and existing full-scale plants from both improved efficiencies and reduced reprocessing costs (see Primary Market). Vusion’s technology will also improve project economics for conceptual projects. This will make larger plants significantly more cost effective and profitable, thus making some projects viable that were previously uneconomical.

There is an immediate need where Vusion’s analyzer technology can be applied: every pharmaceutical facility must clean its tanks and pipes. Furthermore, the FDA requires that each facility monitor and document the amount of detergent leftover in the process equipment after each cleaning – referred to as residuals. These residuals have to be tested for to assure that they are not contaminating the final product that is packaged and sold on the market. The current cleaning process requires that the system be shut-down and the inside of the tanks swabbed. These swabs are then sent to a laboratory that performs an analysis to determine the amount of residual left in the tank or pipe after cleaning. This process takes time and requires that the facility be shut-down 1-3 days. Vusion can provide a real-time analytical system to monitor the amount of residual left in each plant line, which decreases manufacturing down time and improves plant utilization. Such improvements can be worth far more than the savings detailed in Primary Market when one takes into account the market value of the final product and the lost opportunity cost associated with failed batches. Furthermore, Vusion’s technology can be utilized at the end of the process as a final QC for lot release testing to test for any trace elements that may be carried over in the product processing. In some of our discussions with process plant operators it became clear that there are not only bottlenecks within the process but that there are also bottlenecks at the final QC release testing.

Strategic Alliances

To achieve its vision, Vusion will partner with corporations that have distinctive competencies in the development and manufacture of chemical analyzer systems. These companies include:

  • Leading liquid process automation and control specialists. These companies can provide 1) technical collaboration to enable Vusion to develop an analyzer that complements their control systems, 2) capital resources to fund development costs and 3) well-established distribution channel to pharmaceutical manufacturers. In return, Vusion will become an exclusive supplier of Sensor Cartridges to the selected partner, giving the control specialist a significant competitive advantage in process quality control of complex chemical processes.
  • Major manufacturers of chemical analyzer (e.g. HPLC) equipment. Vusion’s analyzer will be a complementary product that expands the capabilities of their existing chemical analyzer systems.
Core Competency

Vusion’s core competency is in developing real time analytical platforms for complex chemical solutions. It is not a high volume instrumentation manufacturer, but rather a company that develops customized analytical sensing technology for different industrial applications. Hence, when Vusion has developed a pre-production prototype analyzer it will license this product to a major instrument manufacturer and will outsource the design and manufacture of the Sensor Cartridges. However, Vusion will continue to develop the Sensor Beads (for residuals testing) and customized beads (for a customer’s proprietary chemistries) for its clients. Thus, the core of the proprietary Sensor Cartridge technology (the Sensor Beads) will continue to be developed and manufactured in house. See Manufacturing Overview for further detail.

Expansion Strategy into Secondary Markets

Vusion will exploit its experience in the fine chemicals industry to leverage its technological competence in other markets that can benefit from multi-chemical sensing. Sensor Cartridges and the Sensor Beads will then be customized for these new markets, again with licensing granted to a large-scale manufacturer when a pre-production prototype analyzer has been developed.

Medical diagnostics is a major secondary market for the company due to its need for real-time chemical analysis of complex chemical solutions. Vusion will work towards developing the Electronic Tongue TM into a handheld device that is capable of performing blood and urine analyses in the emergency room. In discussing this opportunity with emergency room physicians and clinical laboratory nurses it has become clear that there is a need for fast response chemical analysis in the emergent care environment to help save lives. Hospital management will also have a keen interest in Vusion’s technology, as it will result in significant savings in laboratory overhead costs and the resulting reduction in personnel.

Sales Strategy

Pricing: Our initial estimates of the price sensitivity of the primary market for the Electronic Tongue TM show that our potential customer base spends anywhere between $25,000 and $150,000 for sophisticated analyzers. Vusion will not only compete on price but will differentiate itself from the current state-of-the-art by offering customized products designed to suit the particular needs of the customer. Vusion has estimated a product price of $60,000 per analyzer unit for financial projection purposes. Sensor Cartridges, which will need to be replaced after each manufacturing run, will be priced at $250 per unit.

Positioning: Vusion will position the Electronic Tongue TM technology as a leading edge technology for fine chemical process and quality control. It complements existing chemical analysis technology. In the case of HPLC, Vusion’s analyzer can be adapted to work with existing instrumentation and add to the current analytical methods. Thus, providing a fourth dimension chemical analysis (specific to the chemical(s) of interest and highly selective). It will also be developed into a cost-effective, highly accurate handheld instrument for performing medical diagnostics in emergent care environments.

Promotion: Vusion will sublicense the analyzer to OEM partners and co-development customers. The partners will be responsible for mass marketing the analyzers and pushing the technology through their channels. Vusion will identify and focus on a key player in each respective market niche that would benefit from Vusion’s technology and prosper from the unfair competitive advantage that this selective technology offers.

Vusion will work closely with its inventors, supporting the research needed to develop chemical receptors for later markets. As well, it will support the publishing of these efforts in prestigious research journals to position the product as a breakthrough in chemical analyzer technology.

An informational web-site is in place and a product hotline will be set up to promote awareness and support new and prospective customers. Supporting promotional material such as video demonstrations of the technology and an exhibition demonstration model will also be developed. Acceptance of the technology by fine chemical manufacturing companies will result in the analyzer being adopted for use in pilot plants, quality control laboratories, specified in new process plants and for retrofitting on existing plants. In part, this approach implements a pull strategy, whereby the Process R&D groups for manufacturers (the early adopters) will adopt the technology in the early stages of development and specify the analyzer in their scale-up designs for use in the large scale process facility.

Place: Instrument distribution will be through an OEM that has successfully penetrated the markets that Vusion sees as its early adopters. This approach gives Vusion’s technology access to established and accepted buying channels. The Sensor Cartridges will be shipped direct from Vusion to the OEM partner’s customers using standard shipping subcontractor services such as UPS, DHL, and Federal Express.

Service and Warranties

Vusion will deal with faulty Sensor Cartridges by replacing them directly. The system designed by the OEM partner will be modular, making removal and replacement of hardware parts simple and fast. Thus, whenever a system fails or breaks, the OEM partner can ship a replacement part directly to the customer. This feature allows the unit to be serviced by the client’s personnel, thus reducing the need for a large customer service staff. However, Vusion’s partner may choose to support the analyzer using their own service systems and warranty programs.

Vusion, Inc.
Table of Contents Appendices
0. Executive Summary
1. The Problem
2. The Solution
3. Vusion Provides the Solution
4. Market Analysis
5. Marketing Strategy
6. Manufacturing Strategy
Financial Model: Assumptions
Income Statement
Balance Sheet
Statement of Cashflow
All information herein is confidential and belongs to Vusion, Inc.

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