African Market: Entry for a Trypanosomiasis Diagnostic Device

Abstract

This report is the result of a graduation project in the domain of the Africa Market Entry for a Trypanosomiasis Diagnostic Device. The project aims to find promising ways to bring to the market a portable diagnostic device for Trypanosomiasis, developed by the company Aidx Medical BV.

The context of T.

African Animal Trypanosomiasis (AAT) is a vector-borne parasitic disease. It is caused by infection with protozoan parasites belonging to the genus Trypanosoma. They are transmitted to animals & humans by tsetse fly bites which have acquired their infection from parasitaemic mammalian host. AAT is a major constraint to socio-economic development in Africa. AAT has significantly reduce productivity in over 150 million cattle and 260 million sheep and goats (Jahnke, Tacher, Kiel, & Rojat, 1988), and it is estimated to cause annual losses of more than US$ 4.5 billion dollars through direct and indirect agricultural production losses (Yaro, Munyard, Stear, & Groth, 2016).

There are many barriers that complicates the access of trypanosomiasis (T) diagnostics and treatment such as lack of confirmatory test, large distances, limited trained staff and lack of laboratories facilities. The diagnosis of T is notoriously difficult, because the clinical signs are similar to other cattle diseases. Likewise, the only way to confirm a diagnosis is to demonstrate and identify parasites in body fluid. The current diagnostic practices require staff with strong proficiency and expertise, which the limits the reliability of the test. In addition, diagnostic technique for routine veterinary purposes is only suitable if it is cost-efficient. Therefore, there is a need for the new diagnostic test requiring minimum training, inexpensive and should provide rapid and reliable results.

Business Modeling
According to the research, the device had a strong value proposition on the market. Several business model prototypes were created and tested in a field trip to Uganda. In the field trip, it was discovered that the current technique of introducing medical devices (ex. microscopes) and drugs was through an intermediary. This intermediary may be a chain of pharmacies or a device seller that needs to be certified by the government to distribute and sell the devices or drugs. The intermediary takes also charge of the promotion and distribution of the product. The business model prototypes were redesigned with the new set of information. After an evaluation with the company, the most promising scenario was selected according to their aim, strengths and weakness.

The main value of the company is to develop and manufacture an automatic diagnostic device for thick bone diseases that an unprofessional person can do a rapid and reliable diagnosis on the field. The customer segment is the government, because they are the largest employer in veterinary services delivery. The distribution channel will be through intermediaries, because they have a deep understand of the local market. As well, the company does not need a large capital investment on developing a distribution channel. The main revenue would be through asset sale of the diagnostic devices. The business model helped to outline the most important concepts of the company.

Market Entry Strategy
The business model helped to outline the important concepts of the company. Thereafter an International Market Entry was planned. This entailed the entry location (EL), entry timing (ET), and entry mode (EM). As it was previously explained, Aidx Medical BV will be the first mover and focused on a niche market on automated diagnostic device for veterinary health. Finally, the entry mode selected was indirect exports, meaning the company will sell the device through an intermediary.

Finally, the strategy is described with the concept of 4P Marketing Mix (Mullins & Walker Jr., 2013)which includes product, price, place and promotion in conjunction the international entry market and the business model to ensure that the action plans within all are complimentary and aligned.