2.1 Competitive Landscape

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

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

• 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%

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  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

• 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.

• 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.