Business Plan of Ambulance Drone in Turkey

Business Plan of Ambulance Drone in Turkey

Thousands of people have died due to ambulance delays. The time it takes for an ambulance to reach a patient depends on many roads, distances and traffic traffic. Helicopter support works in certain places, but a lot of money and landing is needed for open space. If there's a way to keep the patient alive for the ambulance to come. The Ambulance Drone is one way we can support an ambulance to a patient for a long time so that we can pick up important things to there.

Customer Value Proposition

Turkey in traffic congestion top 10: 34 hours per year in traffic. According to road monitoring data1, Turkey is the 10th country with the highest traffic congestion in the world. In 2016, the waiting time in Istanbul reached 34 hours.

Worrying is the growth in these numbers. Now, imagine that the ambulance is an urgent need for a slow moving traffic or sometimes a traffic jam. If the hospital supports the helicopter by air and there is an open area nearby for the helicopter landing where the patient is at the same time, you are in the greatest luck charm. However, most of the time, this is not the case. When a patient needs an emergency doctor, there is a possibility that the patient will not be able to survive for the time required to reach an ambulance. According to a recent article in The Dailymail (England), thousands die due to ambulance delays 2. The biggest problem is that it takes about 15 minutes to get to the patient even if the ambulance goes a few miles or so. Those 15 minutes can be vital to the decision of the patient to survive. Heart attacks or asphyxia in an emergency, the patient can easily kill within 15 minutes or be exposed to any savings. The higher the distance, the worse it gets. Effectively, your chances of finding a traffic jam or a slow-moving traffic increase dramatically and act like the last nail in a snatch in an emergency. For this reason, what can be done to improve their chances of survival is arguable. Should people keep these illnesses or benefits at home like the ones mentioned above? Or we hope that we will not cross our fingers and come to us with such an emergency crisis. Asphyxiation is a condition that is severely deficient in the oxygen body resulting from abnormal respiration. Asphyxia is an example of drowning. Asphyxia is primarily caused by generalized hypoxia that affects tissues and organs. There are many conditions that can induce asphyxia; All of which are characterized by the individual's inadequate oxygen intake for a long time through inhalation. Asphyxia may cause coma or death3. In times of suffocation, in some cases the body needs an immediate and concentrated oxygen supply. If this is not the first drowning condition for the patient and there is a history of respiratory problems for the patient, there is a possibility that there may be an oxygen cylinder that can be used at home. However, if this first and / or home oxygen tube is not supplied, an oxygen requirement is very important. The fact that the ambulance may take between 10 and 40 minutes to reach the patient depending on the location and the traffic situation makes the problem even worse. This means that the Ambulance Weapon Support System can be useful, reaching the patient with a straight line, coming from above all the traffic problems, and in some cases shortening the travel time to the patient. This greatly increases the chances of the patient surviving until the ambulance.

The Ambulance Drone product emphasizes differentiation. Because with this product we differentiate the business. It is new way of ambulances, We divide our customer segmentation into two part. These are private organisations and official/governmental organisations. On private organisations the target customers are; private hospitals, outdoor sport clubs, ski facilities. On official/public organisation side we target public hospitals (especially located at Anatolia and surrounded by villages), military, police, AFAD (Turkish disaster & emergency management presidency), AKUT(Turkish search & rescue association) We will serve to existing and resegmented market market. Re-segmented market,  offering  product that offers superior performance on familiar attributes strongly valued by a subset of the existing market’s customers Because emergency medical services sector has already existed. What we are going to do is differentiating the sector by using drones rather than using vehicle ambulances. In short what we do is; serving to existed market with innovation. Initially, it will be a simple covered product. It will carry that only have what really needs. Basically it will have camera, foldable arms, defibrillator panels, battery, gps. But these are only for initial stage components of this products. The R&D will work in order to make this product more complex and powerful to carry more components. At the third stage we will R&D in order to carry patients with ambulance drones. The required components are medical products like defibrillator panels, breathing apparatus, etc,. Herein, we will negotiate with medical suppliers to equip medical goods with our ambulance drones. Also there is a need of doctor because drones will make video conference. It will meet patient and doctor with video conference. Thus this business need doctor at initial stage. However in future  it is going to be replaced by automated systems which is computer based system that talk with patient/people around patient about therapeutic approaches. At first level the product will be priced at high. Because it is offering video conferences with doctors. It is costly to have doctors. Thus we need to make price level at high level. At second stage by the automatization, the prices will decrease to middle. Because the need of doctor will be less with automatized therapeutic approaches and it will reduce the doctor labor force costs. Therefore it will be good to priced at middle level. However at third level the products will be priced at high level because the ambulance drones will be more complex and get bigger. They will be able to carry doctor and patient. It will have a cabin that to carry the patient and doctor  also the medical products. At this stage doctor labor force costs will rise again and also cost of production of those big drones will rise too. However the company will continue selling small drones like in second stage. That is to say at third stage company will have differentiate their products into two. One is ambulance drone that carry patient and doctor inside the cabin and the other is small ambulance drone that carry certain medical needs.

In the process of entering market, company needs customers to enter the market and create brand recognition. Therefore the strategy will be leverage price discrimination method. Which means company will be elastic about prices while negotiating with institutions and organisations. Those institutions and organisations will require to decrease the prices, with leverage price discrimination they  will give ga nice return to the  customers. The first strategy is not the price, it is to show the product’s effectiveness in real life by selling them. Thereupon, the product will achieve the marketing of word of mouth and brand recognition

There is no competitor in ambulance drone business. The only competitors are vehicle ambulances and helicopter ambulances. Therefore the most important point is adopt the idea  ‘ambulance drone is really a need' thing’. If the marketing and promotion strategies reach to the customers fit and properly, it will react fast with rise of the sales. Because Turkey’s Anatolian villages have a bad access with the highway, and in the big cities in the west there are very high traffic ratios. Because of those two reason this drone ambulance business plan will be successful. The only matter thing to promote it  right.

Technology & Operation Management

Actual working of the drone:

1. The "Emergency Management System" representative participates in the negotiations. The place where the emergency takes place is taken by the representative.
2. The representative identifies the nearest Emergency Service Department (Public Security Response Point) and can call for a faster help here.
3. After the call is diverted, the manager identifies the nearest Drone Station according to the emergency position and alerts the active drone.
4. When the drone becomes active, it will identify the nearest hospital to treat the patient's illness and warnings.
5. The drone alerts the on call doctor of the hospital.
6. After being alerted when a call arrives, the doctor contacts a camera with a drone and can thus see the live images of the accident site.
7. Once the doctor has connected the camera, the doctor can monitor the emergency and help the person in the accident to move on. For example: the doctor can help people give CPR to patients who can not breathe.
8. The hospital administration then identifies the available ambulance and passes this information to it, which helps the ambulance reach the destination at the earliest.
9. If the emergency is of Accidental type, once the drone reaches the destination. It can scan the license plate of the accidental car and send it to the “Police department”
10. The police department then runs through their registered car database and finds the person associated with the registered car. The police fetches the emergency contact information of the patient and sends an alert to the contact about the accident.
11. Once the ambulance reaches the destination, the drone becomes available again and returns to its station

The importance of R&D investments to innovation is that, Research and Development departments play a crucial role in the innovation process. It is especially necessary for companies that are operating in technology sector. It is an investment in technology and future potentials that can later be transformed into new products, processes and services.The most powerful technology strategy is being the leader in the sector. Being the first-mover in the market/sector can create some problems while bringing some benefits. However, if company can get over these obstacles while generating its innovation, the success will be inevitable. Also, striving for a volume market is a good thing. Everyone can be their potential customer contrary to niche market. There are some things that company need to do and achieve such as; a production facility, R&D center, office for operational management and strategic alliance/partnership. Strategic alliances would be so successful gain. To add more, company should sign strategic alliance/partnership with the  producer of medical and innovative equipments.

Outsourcing means that your company, your technology is using some other technologies which are basically the resources of other companies. So, it can be said that ambulance drone with lots of outsourcing in order to sustain its innovation technology. Since the most important technology that is used in Ambulance Drone’ innovation is Other than these, medical manufacturers and R&D is that they will have alliances with can also be indicated as outsourcing. That is because they use their features in order to operate their business model (which is their technology) more effectively. Medical products can be transferred from foreign companies. Because foreign medical manufacturers and R&Ds are more innovative adopted. They will be more beneficial for Ambulance Drone. They could produce compact and unique medical components for drones. Outsourcing helps Ambulance Drone to operate more effectively and continuously. In-house means that your company is either licensing its technology, innovation or its business model to other companies/firms to use. It is more beneficial for company because company does not pay for licensing their innovations.

Producing own components are the best way because it will be less and less costly if component produces by themself.

Outsourced activities could be done by under the name of partnership. They can sign strategic alliance/partnership with medical producers to supply the drones with the compact components.

The medical components of the Ambulance Drones are the cost drivers of the key activities. For example Defibrillator Panels: Two paddles pop out from a compartment at front. The shock power is controlled by the trained pilot-medic back at the base, who will hold off shouting “clear!” until the pads are correctly placed. It will be imported good and thus it will be the costly and cost driver component.

Ambulance Drone is the first mover in the market (Turkish market) it has a first-mover advantage. So, the company probably uses lead-time advantage to appropriate a value from its innovation. Hence, the most important mechanisms that company uses in order to appropriate the value from its innovation can be identified as their advantage of complementary assets and lead-time.

Go-To-Market Plan

There is market for drones in Turkey however, it is not big market. Most of the business sectors do not use drone transportation. The usage of drones are high in military, photographers and movie producers. But the other sectors do not lionise to the drones. We can use it as an opportunity being first mover to the market always bring many advantages like dominating the market and brand awareness. The traffic is a big issue in Turkey, especially in big cities. It is the biggest problem of ambulances. They arrive late to the patient only because of the traffic. Ambulance drone is going to be the solution of this problem. Ambulance drones will reach patients from air in a short span of time. Direct channel distribution is going to be the initial plan of the company. Because it s not a simple product like chocolate. We need to negotiate with consumers face to face. Indirect channel distribution is not a good idea for this innovative product. Because it is new to the market it doesn't make sense for people. What the need to do first is to introduce ambulance drone by direct channel distribution. Negotiating with hospitals and introducing the product and its benefits is a good way to get in the market. What we need to do first is to establish a web page and present it on there. The second selling strategy should be focused on; public institution, military, police departments, disaster recovery organisations (AFAD, AKUT), ski facilities & hotels and outdoor sport clubs(trekking, mountain climbing). At the final stage the strategy will focus on individual customers and exporting to the foreign.

Customer Acquisition Cost is the cost associated in convincing a customer to buy a product/service. This cost is incurred by the organization to convince a potential customer. This cost is inclusive of the product cost as well as the cost involved in research, marketing, and accessibility costs. In order to catch the customers, sales persons will be open to bargaining about prices. Ambulance Drone’ prices will be elastic while negotiating with corporate customers. But prices will be inelastic for retail customers.  

The schema at the top shows briefly how the ‘push model' process is. It first stage is scientific exploration, then developing this exploration for their products and moving to next stage to the production and finally sales. Ambulance Drone will use this technique

Mission:

To provide the latest state-of-the art technology to improve current emergency infrastructure with a network of drones capable of saving lives through defibrillation.

Vision:

To make the Ambulance Drone become a staple in emergency medical services relating to cardiac care with operational excellence, industry-leading customer satisfaction and superior training and support.

Swot Analysis

Strengths	Opportunities:
Saves lives	healthcare affiliation
User Friendly	Military & disaster emergency
Excellent response time	Threats:
Necessary features	Government regulation
Responder guidance	Security
Weaknesses	Imaging technology
Battery life	Misuse
Cost	Amazon/Google
Accessibility	Marketing Strategy
Flight pattern	Information will be sent to all local
Propellor danger	facilities with the usage of the drone

Ambulance Drone company will use several marketing strategies;

• Information will be sent to all local facilities with the usage of the drone.
• Promotion will be sent by mail, e-mail or in person
• On site training and demonstration will be done in order to show features of the drone to prospective customers
• Sales promotions and public relations are the key factors in our marketing strategy

An individual or business who uses a new product or technology before others. An early adopter is likely to pay more for the product than later adopters, but accepts this premium if using the product improves efficiency, reduces cost, increases market penetration or simply raises the early adopter's social status. Companies rely on early adopters to provide feedback about product deficiencies, and to cover the cost of the product's research and development. To indicate the categories of adopters that have adopted this innovation, keeping the Rogers model in mind can be a good idea. There are 5 different categories which are; innovators, early adopters, early majority, late majority and the laggards. The diffusion-of-innovations model of technology adoption, researchers can divide  their study  into Pioneers (early adopters / visionaries) and Mainstream  buyers.

The mainstream group was then subdivided into Potential Early Mainstream buyers who had indicated a willingness to purchase an ambulance drone (early majority / pragmatists) and the Late Mainstream, who expressed no such interest (late majority / conservatives).

The image above image with its distinct chasm between visionaries and pragmatists—is adapted from the Technology Adoption Life Cycle put forward by Geoffrey Moore in the book Crossing the Chasm.

Moore proposed that technologies struggle to cross the chasm because the factors motivating early adopters rarely motivate the early majority.

Shifting to the terminology  in the Ambulance Drone, it’s pioneers can and will pay a premium to be part of a revolutionary advance, and they will accept risks and inconveniences if necessary.The Potential Early Mainstream buyers, being pragmatists, are risk-averse and prefer evolutionary change. They’re not willing to make those compromises.

Profit Formula

Pricing is one of the key factors that gives leverage to aerial drone photography business, it is normal for consumers to go to places where they can get good deals or hire the services of a company that can give them good bargain for their money. We are aware of this trend which is why we have put structures in place that will enable us charge fees that are a little below the industry’s average.

We will ensure that we reduce our overhead, and we are ready to run on low profit margin for the first six months of launching the business just for the purpose of attracting loyal clients and build our clientele base.

our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

Economics for One Unit
Selling Price		$3.250,00
Cost of materials	$188,00
Cost of labor	$35,00
Other variable costs	$32,00
Total COGS/COSS		$250,00
Contribution Margin		$3.000,00

Monthly Break Even Units
$448,89 / $3000,37=	0,149 = 1 unit

Item	Why Needed	Cost
Laptop	Ordering and Bookkeeping	Pre-Owned
Cell Phone	Customer Communication	Pre-Owned
Production Facility & Office (In Same Area)		$1,500,000
Professional Website	Customer Communication + Marketing	$1,000
Inventory	Initial Production Run	$400,000
Paperwork	Business Forms	$320.00
250 Business Cards	Marketing	$5.00
	Total Startup Expenditures	$1,901,325

Emergency Fund	$1,000,000
Total Startup Investment	$2,901,325

Break Even Point in Units =	$1,901,325 / $3000 per unit = 6339 unit
Break Even Point in Dollars =	$3,250 x 6339 unit = $20,601,750

References

1. http://www.cnnturk.com/turkiye/trafik-sikisikliginda-turkiye-ilk-10da-yilda-34-saat-trafikte-geciyor
2. Daily mail UK - Article-555211, | http://www.dailymail.co.uk/news/article-555211
3. Wikipedia, Asphyxiation | http://en.wikipedia.org/wiki/Asphyxia