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MARK 201

PROJECT: OXYTHERM

Submitted to

Chaim Kuhnreich

Date: April 14th, 2021

By:
Rami Ajam 40049357
Name student ID

Sara El Marehbi 40057565

Name student ID

Razan El-Merehbi 40156754

Name student ID

Sharon Leung 40177076

Name student ID

Brittany Mclntosh 27531672

Name student ID

Hadi Wehbi 40161583

Name student ID

Section: CC

Group: 12
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Table of Contents

Identification of New Product & Service ..................................................................... 3

Macro-Environmental Impact ....................................................................................... 4
Segmentation, Targeting & Positioning ...................................................................... 6
Secondary Data & Sales Potential ............................................................................... 7
Part A ................................................................................................................... 7
Part B ................................................................................................................... 9
Part C ................................................................................................................... 9
Marketing Mix .............................................................................................................. 11
Product ............................................................................................................... 11
Price ................................................................................................................... 12
Place .................................................................................................................. 13
Promotion ........................................................................................................... 13
References ................................................................................................................... 15
Appendix ...................................................................................................................... 17
Device Images ................................................................................................... 17
Application Images ............................................................................................. 17
Figure 5 .............................................................................................................. 18
Figure 6 .............................................................................................................. 18
Figure 7 .............................................................................................................. 19
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Introduction of New Product & Service

There are two websites that helped us come up with product/service ideas: Ebay.com
and Amazon.com. Using these two websites, we can get a good understanding of what
the public is looking for as a device/service. Additionally, we can investigate what type of
problems people have that need solutions. Using these two ideas, we brainstormed to
solutions that the market would demand and need. Using this technique, we were able to
come up with a product that would help the user self-monitor their health without needing
to go to the hospital unless it is critical.

The product is called OxyTherm and is a combination of both a device and an application
linked together through a Bluetooth connection and is made to be as simple and user-
friendly as possible. It is designed to hold up to 6 different user profiles each with their
own readings saved. The main purpose of the product is to keep track of the user’s health
by monitoring both the temperature and blood oxygen levels by placing the tip of the
device inside the user’s mouth to take the temperature or placing the user’s index finger
on the dedicated spot on the device to determine the blood oxygen level.

Readings will be stored in the application for 30 days with color-coded icons as well as
additional graphs to help visualize a better understanding of the readings. Moreover, if
the application detects that the user’s readings are getting worse, a pop-up notification
will direct the user to the nearest hospital according to Google maps.

This product aims to not only tackle the user’s health, but also to detect other viruses
and diseases that affect our temperature and blood oxygen levels such as COVID-19. As
time progresses, extra features will be implemented to further increase the value given to
the user and to help stand out from other products.
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Macro-Environmental Impact

In 2020, the world came to a complete stop as it was declared to be in a global

pandemic. This resulted in major changes in most aspects of everyone’s lives; from
job losses to reevaluating spending habits, to wearing masks, to analyzing every
little change in our health such as spikes in temperature, coughing, sneezing, etc.
People switched from shopping in stores to doing as much as they could online.
This created gaps in the market for new products/services as people were quickly
changing their behaviours in order to adapt. Consequently, this created an
opportunity to create and market our product OxyTherm as it allows the consumers
to track their temperature and oxygen levels from the comfort of their own home.
Oxygen levels and temperature readings are two very important readings to not
only determine if you have Covid-19, but several other viruses/diseases.

The macro-environment has 6 major forces that can potentially impact the success
of OxyTherm: Demographic, Economic, Natural, Technological, Political and
Cultural. The demographic force analyzes human population such as size, age,
location, gender, etc. The Canadian and Quebec demographic should be
beneficial to the success in marketing and selling OxyTherm. In Canada, the
population is aging and thus becoming more vulnerable in terms of their health.
The older population, baby boomers and above, are wearier and more cautious
about going to hospitals and clinics for fear of catching Covid-19. OxyTherm is a
great way to avoid unnecessary visits by tracking your data and letting you know
if it thinks a doctor consultation is necessary. Although baby boomers are known
to not be as “tech savvy” as millennials and generation Zers, the application that
OxyTherm uses to monitor and record consumer’s readings is very simple and
straightforward. All you need to be able to use this device is a smart phone, which
most of the Canadian population has.

The economic force looks at economic factors that can affect whether positively or
negatively a consumer’s spending habits as well as their purchasing power. For
the past 13 months, a lot of businesses have been forced to close their doors
temporarily such as restaurants, bars, clubs, gyms, theaters, travel agencies, etc.
A lot of people who were not working in essential jobs were laid off as a result.
Consequently, people no longer have the same income as before, and thus
affecting their purchasing power. Some remain unemployed to this day and
therefore have been obligated to dip into their savings and have a much tighter
budget when it comes to spending money. Although, this will negatively impact
the success if people do not see the necessity to purchase OxyTherm, these are
the same people who will pay 120$ subscription to have an online consultation
with a doctor instead of going to a hospital. By marketing OxyTherm as an
affordable option to get an idea of where your health stands, we believe that the
negative impact resulting from consumer’s spending habits decreasing can offset
this.
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The natural force looks at the physical environment (ie: events outside of human
control) as well as the natural resources needed. In the natural force there are
several trends emerging such as shortages in raw materials, increased pollution
as well as increased government intervention. Mass production of OxyTherm
physical units will unfortunately contribute to increased pollution in the air and
waters, as well as the single plastic use. OxyTherm company will need to assess
and find ways to reduce their pollution and find better more environmentally friendly
materials for the handheld unit if it wishes to succeed long term. As Canadians aim
to become “greener” and are focusing on the materials of products, packaging etc,
OxyTherm should aim to use recycled products to make their products. It needs
to aim to be environmentally sustainable and will shift to that focus post-pandemic
to help promote the product. For the deployment of the product, we do not believe
this will negatively impact sales as OxyTherm is a new product that will be
marketed to help monitor your own health as opposed to having to go to the doctors
for these types of readings. In a second phase, OxyTherm does need to change
marketing techniques to include something about sustainability.

In the 20th century, there have been many advancements made in the
technological field, from new products and services to new personalized ways of
target marketing. This is beneficial to OxyTherm as we can do targeted ads on
social media platforms for the aging population, as well as in search engines, when
people search keywords such as “temperature,” “fever,” or “oxygen,” etc. Online
marketing is a relatively inexpensive way to promote your product.

The political forces take into consideration laws, government agencies as well as
pressure from groups that can impact organizations or individuals. It also looks at
business legislation and it’s three main purposes: to protect companies from each
other, consumers from unfair business practices, and interest of society against
uncontrolled business behaviours. OxyTherm company does not foresee any
issues with laws, government agencies, nor competitors in the immediate future.
Seeing as OxyTherm is a relatively new product for at home use at an affordable
price, and is normally marketed towards doctors’ offices and hospitals, we do not
anticipate any issues with potential competitors. As more companies realise the
potential in the market for these types of products, we will need to develop a way
to stand out and we will ensure that the product is compliant with municipal,
provincial, and federal regulations.

The last major force is the cultural force which looks at other variables that affect
a society’s basic values, preferences, and behaviours. Cultural forces have
primary and secondary levels. Primary values/preferences/behaviours are
generally passed down from parent to child and taught in schools, workplaces, etc.
It is ingrained into their being and is very hard to change. Secondary values are
easier to change the mind of that person. Canadians and more precisely
Quebecers have now adapted to an online way of doing things as a result of
various lockdowns during the past year. The cultural change has been taking place
and we believe that OxyTherm will simply fit into the already occurring change.
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Segmenting,Targeting & Positioning

Market segmentation is the actual process of identifying segments of the market and the
process of dividing a broad customer base into sub-groups of consumers consisting of
existing and prospective customers. Market segmentation is a consumer-oriented
process and can be applied to almost any type of market. The two potential and viable
target markets for our product will be seniors, and people who suffer from certain medical
conditions. The segmentation in our case is in fact, effective, because in order for the
market segments to be effective, they should be measurable, accessible, substantial,
differentiable, and actionable, which apply to our target markets. The segmentation
variables represented in the profiles of the target markets are geographic, demographic,
and behavioral. Geographic because sick people might vary according to their region,
cities, provinces, neighborhoods, for example, let us take a look at the coronavirus, more
people were infected in China at first because that is where the virus originated, so people
from China might need the product more than people in other countries where Covid-19
was not that big a deal back at first. Demographic segmentation variable is represented
by the target markets which are seniors because it depends on the age. Lastly for the
behavioral segmentation variable, vulnerable people and old people will buy our product
because they benefit from it, which is a behavioral segmentation variable.

Once the market segmentation has been completed, we should be aware of the needs
and wants of its selected segments. It is in the interest of the business to identify any
untapped needs in the marketplace, as there could be customers who may not be
adequately served by competitors. It is then necessary to identify the most profitable
segments and to decide which segments will be served. Targeting involves the
identification of the most profitable market segments. Therefore, businesses may decide
to focus on just one or a few of these segments. They may develop products or services
to satisfy each selected segment. Now if we were to target one of the potential target
markets, targeting the elderly and vulnerable population would be the better choice.
Mainly because they are more fearful of going to hospitals and clinics and thus more likely
to buy our product. Also, they will have more use with the product to stay up to date on
their oxygen levels and temperature, in order to notice any decrease or increase in either
of the two and directly report back to their doctor. For this reason, the elderly are much
more guaranteed to purchase the product and use it more often. Having a product this
handy that they can use in the comfort of their own homes, and track the results through
their phone, meaning there is no need for any follow up appointments with the doctor,
elderly people will see that buying our product is an absolute win and there is no reason
not to own it.

The final stage in target marketing is product positioning. Firms formalize “positioning
statements” which specify the position they wish to occupy in their target customers’
minds, relative to other competitors’ products or services. Customers continuously
compare products or services. Therefore, marketers must build positioning strategies to
improve the customers’ perceptions of their products. Our company’s positioning
statement is “To avoid long emergency waits and doctor visits, OxyTherm is an affordable
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device that quickly monitors and tracks user’s temperature and blood oxygen levels
without ever needing to leave home.”

This is how our device stands out in comparison to others:

● Blood Oxygen and Temperature Reading combined in one unit

● Product is inexpensive while maintaining accurate readings
● Product is small and lightweight making it portable
● User-friendly interface
● 30-day history of readings

There are other features that are yet to be developed as we are constantly working to
make sure our device is always improving and satisfying customers.
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Secondary Data & Sales Potential

Part A:

Our product is a combination of an oximeter and thermometer. They are commonly sold
separately, the former mainly found in hospitals. Thermometers are commonly bought,
so the secondary sources in this paper will focus on oximeters and wearable medical
devices (WMDs). The two chosen secondary sources are “Pulse Oximeter Market Size,
Share & Trends Analysis Report by Type (Fingertip, Handheld), by End-Use (Hospitals &
Other Healthcare Facilities, Homecare), Region, and Segment Forecasts, 2021-2028”
published by Grand View Research, and “Study of Medical Device Innovation Design
Strategy Based on Demand Analysis and Process Case Base” by Xin Guo, Jie Wang,
Wu Zhao, Kai Zhang, and Chen Wang.

The article published by Grand View Research discusses market share and market size
in different regions. At this moment, Covid-19 has caused a rise in oximeter purchases.
It increased awareness as to the importance of oximeters in checking patients’ oxygen
levels. Home healthcare centers and long-term care facilities have a rise in demand for
oximeters. Technological advancement and straightforward data transfer are expected to
continue in the market. In 2020, North America had the largest market share at 49.1%.
This article included a table with market size value in 2021 and estimated revenue in
2028. Handheld oximeters took around 39% market share worldwide in 2020.

The study conducted in “Study of medical device innovation design strategy based on
demand analysis and process case base” mainly discuss hospitals using oximeters and
the like. In general, it is not purchased by the public. This study discusses an ideal way
to increase demand or increase market share (3). It describes the time, quality, cost,
service, and environment factors that can greatly affect competition (3). Throughout the
study, they discuss the connection between user demand and product innovation (2).
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Part B:

We can see that there was a 38.9% market share for handheld oximeters, for the purpose

of emergency use. Easy transfer of data, large memory, and alarm system increase

efficiency of products; all of which our product has – this is good for competition. Devices

that can be used in case of emergency as well as for monitoring health in home is sought

after for the elderly, such as oximeters. North America has a market share of 49.1% in

2020 for oximeters, because people are more aware of how important it is to monitor vital

signs. Using this information, we can estimate how many handheld oximeters can be sold

in North America, and how much market share we can take over.

RE: APPENDIX Fig.7

Part C:

Overall, handheld oximeters make up 38.9% of the oximeter segment; OxyTherm places
itself in this segment. We also have a competitive advantage because it offers simple
data transfer from the device to its dedicated app, 30-day memory, and a system that
alerts users when their vital signs are abnormal. The pulse oximeter market share
captured in North America is 49.1%. Taking 100% of North America’s handheld oximeter
market, we can calculate a good market share to capture when competing with
competitors. There are 13 key oximeter producing companies in North America, 14
including our new product. 100% divided by 14 companies gives 7.14% market share per
seller. Taking into account the competitive advantage we have with our product and the
difficulty it is for a new product to enter the market, we can estimate how many percent
sales we can make. Consider the variables X as the difficulty to enter the market and Y
as our product competitive advantage, our potential sales percent is 7.14% - X + Y. The
X and Y variable value will depend on how well OxyTherm is advertised. A rough estimate
for X is around 3%-6%, whereas Y would be 1%-3%. Assuming that each of the 13
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companies take 0.1%-0.5% more market share, X could be up to 6.5%. OxyTherm offers
3 features that sustain the market, this is where the Y variable takes place. If each feature
makes up to 1% of Y, the maximum competitive advantage OxyTherm would have in
percentage is 3%.

In the future, if our product sells well and we start selling worldwide, we can make up
around 1.40% of all sales. Since OxyTherm is in North America, our sales would take part
of their 49.1% worldwide sales. 38.9% of all pulse oximeter sales are handheld worldwide.
38.9% of North America’s 49.1% oximeter sales determines how many handheld
oximeters North America sells worldwide: 19.09%. As stated above, there are 13 key
sellers in North America, 14 if our product is included. 19.09% divided by 14 sellers make
1.36% sales worldwide, a competitive advantage neglected. In 2020, the oximeter market
is about 2.8 billion CAD, 1.36% of the 2.8 billion would be how much OxyTherm takes
part in is about 38 million CAD.
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Marketing Mix

Product

OxyTherm is a combination of a good and a service all in one where the device allows
the intake of information through the temperature and oxygen body levels, then the
application processes the data received by Bluetooth and displays the data accordingly.

It is a very user-friendly device with only 4 features as to avoid confusion: Power Button,
Display Screen, Thermometer, and Pulse Oximeter.

The power button is a single on and off button, the display screen shows the immediate
results of the data before being transferred to the application.

Reading mechanisms:

The thermometer works by placing the tip of the device in one of the following body parts:
the mouth, the rectum, or in the armpit; the mentioned body parts were proven to provide
the most accurate body temperature levels. The pulse oximeter is placed towards the
other end of the device providing enough space to allow the user to place their finger, toe,
or earlobe allowing the device to detect the hemoglobin in the blood to display the oxygen
levels.

After using the device, the user can then login to their account on the application and read
the data clearly using graphs and vivid descriptions to follow up with their health status; if
the data collected proves that the user’s health can be in danger or in need of assistance,
the user will be notified and directed to the nearest hospital.

OxyTherm is a convenient device to use on a daily basis or even on the go since its size
is relatively small compared to other vital sign monitors and is designed as a basic modern
technology making it easy for everyone to use. The goal is to lessen unnecessary hospital
visits to prevent the spread of viruses and diseases and to allow each individual to monitor
their health from the comfort of their homes.
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Every product on the market follows the “three level rule.”, the core customer value would
be to use the device. The actual product would be the service, which records the data,
stores it, and analyzes it. The augmented product/service would be the vivid description
and graphs.

This digital data storing gives the added benefit of not losing your reading and having
them only one click away and with eliminating more hospital visits, the user can now
check their data at any time without having to squeeze their appointments in between
their work schedules and thus putting themselves at lower risks from catching a disease
at the hospital.

Price

Our major pricing strategy would be competitive pricing because although the service isn’t
common yet, people are beginning to realize that it is the future, therefore more and more
competitors are on the rise. Having high-tech medical companies already launching
similar products, it is important that we make our prices slightly cheaper in order to gain
revenue and customers allowing our product to be launched effectively as there are not
too many competitors in the market right now, therefore allowing ourselves to be
established in the market. This would be a good example of market penetration because
at the moment we need customers to gain more interest in our product and the fact that
our product is cheaper, portable, and easier to use on the daily in order to replace their
frequent hospital visits to a simple OxyTherm device.

As we are providing an inclusive system which requires both the device and application,
we will also adopt a captive-product pricing strategy. The device can be purchased
separately in case of damage. The products of our competitors sell ranging from $3,000-
3,500 for they are advanced machines while our product will be displayed for a little over
$50 making this a cheaper, portable, and user-friendly alternative resulting in customers
wanting to purchase our products over our competitors.
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Place

The application is available to be installed and would be available for both IOS and
android users whereas the device itself would be sold at retail stores, specifically
pharmacies since it is a medical device, along with internet-based enterprise such as
Amazon, Best Buy, and Walmart across north America then as sales increase, we aspire
to expand it internationally.

We aim to use a selective distribution method allowing the device to be sold at a small
number of locations within limited quantities until sales increase since the device targets
a specific group of people and not the whole population. This is important because our
product is not something that is being used worldwide at the moment, therefore it needs
to be taken care of and managed efficiently. The downside to this is that it will be
expensive, but the investment would be worth it as we begin to establish ourselves as a
major competitor in the market. As our business continues to grow, we may eventually
switch to an indirect channel, to help reduce costs.

Other competitors also already have their products on the market selling mostly to
hospitals and clinics since their device is too advanced and considering its relatively
bigger size it requires a bigger space to be kept. Since our device is portable, it does not
require much space to be stored and it is basic enough to allow everyone to use it not
limited to only doctors or nurses.

Promotion

In terms of advertising our product, the best method would be to promote using direct and
digital marketing. This method allows us to directly engage with our targeted customers
using online resources such as online display ads or sending emails. We would start off
by building our own website to make our product available to shop for online. Many
shoppers prefer online shopping and purchasing since it is more convenient, and it allows
them to see the feedback of previous customers as proven by a study that states that
70% of people rely on customer reviews before making a purchase and a comment
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section allows customers to express a brand’s perceived value in their own words
truthfully.

It would be more expensive to open our own online website, but it will help us reach out
to our targeted customers faster and easier, allowing us to display our product along with
its detailed listed description. With the help of digital marketing, sending emails or
providing a subscription discount, posting online ads will allow our product to sell faster
since everyone uses social media on the daily so displaying our product there would get
our business running and reduce the cost.

For a sales promotion technique, we would be using the special pricing strategy. During
the first release of our product, it will be set to a lower pricing of 15% off to encourage our
customers to buy our product before the deal ends. This means we would try to push our
products to customers through an early arrival discount.
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References

Boundless. (n.d.). Boundless Business. Retrieved from

https://courses.lumenlearning.com/boundless-business/chapter/promotion/

Camilleri, M. A. (2018) Market Segmentation, Targeting and Positioning. Travel

Marketing Tourism Economics and the Airline Product (pp. 69-83). Springer, Cham.
https://doi.org/10.1007/978-3-319-49849-2_4

Guo, X., Wang, J., Zhao, W., Zhang, K., & Wang, C. (2016). Study of medical
device innovation design strategy based on demand analysis and process case base.
Multimedia Tools and Applications: An International Journal, 75(22), 14351–14365.
https://doi.org/10.1007/s11042-015-3176-2

Joseph, C. (2019, March 08). Consumer Sales Promotion Techniques. Retrieved

from https://smallbusiness.chron.com/consumer-sales-promotion-techniques-1035.html

Pulse Oximeter Market Size, Share: Growth Forecast Report, 2019-2024. (n.d.).
Retrieved from
https://www.psmarketresearch.com/market-analysis/smart-pulse-oximeters-
market#:~:text=Competitive Landscape of Pulse Oximeter Market&text=Some of the
other players,, and Spacelabs Healthcare Inc..

Pulse Oximeter Market Size, Share & Trends Analysis Report by Type (Fingertip,
Handheld), By End-Use (Hospitals & Other Healthcare Facilities, Homecare), By
Region, and Segment Forecasts, 2021-2028. (2021). Grand View Research.
https://www.grandviewresearch.com/industry-analysis/pulse-oximeter-market

SleepEh. (n.d.). Masimo MightySat® Rx Fingertip Pulse Oximeter. Retrieved

from https://sleepeh.ca/products/masimo-mightysat®-rx-fingertip-pulse-
oximeter?variant=39501700497557¤cy&utm_medium=product_sync&utm_source=goog
le&utm_content=sag_organic&utm_campaign=sag_organic&gclid=Cj0KCQjwgtWDBhD
ZARIsADEKwgPcutm91wokwqECLC4UPcOv_wA5XrodzW7jXzy1PYG9b8BW3Un6uM
waAryuEALw_wcB
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Sonntag, M. (2017). Product Distribution Strategy: The Ultimate Guide

[Infographic]. Repsly. https://www.repsly.com/blog/consumer-goods/everything-you-
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Vital Signs Monitor - Pulse Oximeter (SpO2) + Temperature. (2021, April 12).
Jorgensen Labs. https://jorvet.com/product/vital-signs-monitor-pulse-oximeter-spo2-
temperature/

V. A. P. B. A. A. (2021, March 17). How to Develop an Effective Marketing Mix |

What are the Marketing Mix Elements. Creately Blog.
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mix/#What_are_the_Elements_of_Marketing_Mix

Wellue SleepU Wrist Pulse Oximeter. Vibration for Low Oxygen Levels. (n.d.).
Retrieved from https://getwellue.com/pages/sleepu-oxygen-
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Appendix

Device Images:

Figure 1: Prototype Figure 2: Final Result

Application Images:

Fig.1

Figure 3: Main Page Figure 4: Readings Figure 5: Redirection to

(Temperature) page Google Maps
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Figure 5 :

Figure 6:
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Figure 7: