Business strategy Development on CPAP Cleaner by Dr. Kakar
Project Description
Problem: Millions of people around the world use CPAP devices for treatment of obstructive sleep apnea (OSA). CPAP treatment has remained the gold standard treatment for managing OSA. One of the challenges faced by those using CPAP is cleaning their CPAP mask, hose, and water chamber on a regular basis. CPAP manufacturers recommend regular daily hand washing, with mild soap and water. This frequency of cleaning is inconvenient and painstaking for most people. On the other hand, many CPAP users worry about contamination of their CPAP equipment with bacteria, viruses, and molds if their equipment is not cleaned regularly.
We are developing an innovative automated CPAP Cleaner that will automatically wash CPAP parts (mask, hose, and water chamber) using mild soap and water, thus eliminating the need for regular labor-intensive handwashing. Once development is completed, the real problem is getting this product to market with a successful product launch.
Background: Within the last decade, a new market need was identified – a CPAP cleaning machine to sanitize CPAP parts, that would reduce the need for regular handwashing of CPAP equipment. A revolutionary product called SoClean™ was introduced to the market as the first of its kind of product to fill this void. SoClean™ has been a huge success in the US, and they have since expanded their sales market to Europe and Asia. However, the SoClean™ device has failed to achieve FDA approval in the US. Similarly, many physicians around the country are hesitant to recommend this product to their patients because it uses ozone (“activated oxygen”) to disinfect the CPAP parts. There is no water or soap used. SoClean™ uses only ozone that is passed through the CPAP equipment, which remains at the bedside on the consumer’s nightstand. People have been using SoClean™ to sanitize their CPAP equipment every day in some cases. The long-term health effects of this ozone exposure in the bedroom environment and specifically intended for respiratory assistance is unknown at this time. There are concerns that the long-term health effects of ozone exposure from these devices may be harmful and detrimental to consumers.
Problem Statement: We have developed a novel CPAP Cleaner that does not rely on ozone for disinfection. Our CPAP Cleaner will use only mild soap and water, which can be added to the device. Our device will ideally be placed on a bathroom countertop, where it is not in the way. Our CPAP Cleaner will be automated, using specific water temperature and pressure settings, to prevent damage to the CPAP parts to be cleaned. Our CPAP Cleaner will not require connections to exterior plumbing. Our CPAP Cleaner will be self-contained, so it will be easy to use simply by adding soap and water. An external drain hose will allow used water to be removed from the system once cleaning is completed.
We have conducted market research from 100 of Dr. Kakar’s own patients in his Sleep Clinic, and they have provided the guidance to make these changes to our product. We feel confident that our product will be very well received in the market. The challenge now is to develop a successful business plan and strategy to bring our product to market. We want to emulate the launch of SoClean™ because their marketing campaign was simply amazing. They used various marketing resources to truly develop exposure and awareness in the CPAP user population. We want to have an equally successful product launch by developing a well thought out business strategy and business plan with pro forma financials, a highly developed marketing strategy, determine potential sources for raising capital, and explore the next steps in custom manufacturing and logistics to bring our product to market.
Deliverables:
- Develop a well thought out business strategy and business plan with pro forma financials
- Analyze the data to figure out the ideal retail price point to support a viable business
- Present a highly developed marketing strategy with financials, to ensure a successful product launch
- Determine potential sources for raising capital and provide a plan on how to begin raising capital for this venture
- Evaluate the next steps in custom manufacturing and logistics to bring our product to market
Project Details
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Summary
In pursuit of a successful product launch -- Dr. Kakar's CPAP Cleaner -- an innovative new appliance for CPAP users to conveniently keep their CPAP supplies clean, fresh, and sanitized
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Sponsor
- Dr. Kakar's Products
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Semester
- Fall 2022
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Academic Area
- Organizations Strategy and International Management
Consumer Products