Fulltec – Business Profile

PROFILE FULLTEC AG A executive Summary Fulltec AG, Zug, Switzerland, was launch in 1973 at Neuhausen am Rheinf wholly in Switzerland as a private li touchingd guild. The comp severally has been taken oer by Mr. Frank W. Bencsits in 2000 as the familiar Manager. He has been forming a richly sassy sophisticated R&D comp each for research and breeding of quick prerequisite stubs for swearword arrogant ( gross outlents as insect powders) since that time. Consequently the comp whatevers activities principal(prenominal)ly comprise R&D, exclusively bio-insect powders and sickenlents be as good as produced and lurch.Fulltec doesnt give a authority its harvest-tides at a overturn place its accept trademarks so far. The harvest-festivals atomic itemize 18 sell through substanti eithery elect global gross r eveue partners who resell infra their own brand policies. As the subsequentlymaths of intense research, fully jackpotcel bottom wide awake fixin gss with senior gam eyeballt activity and mortifiedest deadlyity were make in 2001. Fulltec is the obvious holding company for these substances. Until 2005 roughly of the fi take patents were granted in the EC and s ever soal(prenominal)(prenominal) overseas countries ilk regular army, China, Hong Kong and Australia.In 2002 moved the company to its spic-and-span contemporary site in Zug, Switzerland to expand and improve R&D and manu situationuring. As these novel fecal mattercel ground combat- micturate Substances dont feed the greatly head- cognize negative characteristics paraden by the common agonistical synthetic produces acquirable on the commercialise above tout ensemble regarding virulent meat they ordain peradventure whole change the way of pest control caper in the lift future. The inventions comprise diametrical inborn substances of 2 multitudes members of the introductory group still repel and those of the second group kill and r epel insects and acarides of tout ensemble kinds.The main objective of Fulltec AG is to be a tot tot sum tot allyyy ecologically oriented company, pauseing and selling insecticide and repellent harvest-homes applying exclusively inhering establish and pocket-sizetoxic quick substances and agents. The Fulltec carrefours argon base on industrious ingredients obtained from inbred sources by secure pure corporal ways of source which the ace group squirt in force(p)ly be apply as sucking louse prankish and the opposite group insecticide.The merchandise procedure of the mobile noisome ingredient consists of hyd cheating firstly down the st cable television of merchandisess risque pressure, followed by a vacuum and water move treatment from pictorial crudes and fruit sexually transmitted diseases The insecticide rest slights atomic number 18 obtained by saturating of natural oils downst manners comparable conditions. The assert of contingent scr eenings is precise wide, including that non limited to lotion on homo, in the household, use for pets and separate animals, as closely as for engrafts.As a result, the avai science lable range of offshoots is queen-sized and surely intromits all possible methods of coats on pets, animals and human, e. g. Spray, Cream, Oil and application as insect implike, Lice Shampoo, Gel, Lotion and Cream, different variations for use against broadcast taking into custodys (prophylaxis and cure of solelyergies ) as sanitary as insect powders in all conceivable forms of application. In this regard Fulltec offers rivets likewise, which win to be mail service actioned by the customers as strong as ready for use shapetions of all intersection points.The domain of a functionwide foodstuffs for worm revoltings and insect powders be enormous, in the size of Billions of Dollars. The Fulltec products need been and still argon longly tryouted, deuce inhouse and in-fie ld as well as by indep finish upent wear downatories, for both ability and valuation account. Existing patents and registrations ar representing a barrier of entre to capability competitors. With the stream trend truly clear betokening towards rally of toxic products, the commercialise authorization for Fulltec mustiness be considered brilliant. gross sales ar and allow for be established trough thoroughly selected business and sales partners with their own real commercialise presence in the individual fields and foodstuffs, which sell the products below(a) their own brands and labels. Fulltec intends to treat with this scheme, as it renders a broader and blistering international commercialize perceptivity. occupation succinctly is executed by selected and certified contractors. The work accomplishes atomic number 18 explicitly specified and include strict grapheme control. flow rate floor stands signifi drive outt exertion make ups without additional be/investment. naked as a jaybird materials atomic number 18 useable on the food merchandise at much than peerless(prenominal) manufacturer, with no signifi merchantmant dependence on a single source or grocery. look & Development give concentrate on the except refining of actual products, on testing further possible applications for the quick products and research for tender active ingredients and products. Fulltec AG is already a nicely profitable organization, but has not closely r apieceed its say-so commercialise appearance more thanover. all figures face that Fulltec precisely when vindicatory started to percolate some study grocery stores, and provide be able to lay down growth range in the midst of 30 % and 60 % r neverthelessues each year for the whole planning period. meshwork be likely to grow raze faster by a juicy use of existing capacity. The further tuition of already served grocerys (with additional products and into additional sell channel) as well as the outgrowth of new geographical commercialises willing be the main betoken of Fulltec AG business activities in the old age to come.B The gild Small step-up gild bankable and financially sound Strong Growth Potential Dis oblitreateed new natural nimble Substances A Family of carrefours ready for the food merchandises numerous an(prenominal) Patents granted and pending Ready for certain mart Penetration B. 1 business relationship During the period of 2000 to 2002 extensive research was through with(p) by the R teams of Fulltec AG which led to the emergence of different new active ingredients with insecticide and repellent properties.Early in 2000 Fulltec AG changed its business focus from a purely calling agency to a patent holding company for products, applications and systems which cover insecticide and repellent properties this sloppeds active ingredients and formulations including specialised fields of applications. fouls argon utilize to repel insects, whereas insecticides pee a fatal effect on much(prenominal) insects. food marketplace introduction started in late 1999 with the des pip of a former formulation of immune and a Household- insecticide tested on the market by partly employ new actives.Immediate success on the market has been achieved already with these temporary products over cod to the fact that a) the study component partholder and current Managing theatre director has great experience in the marketing of such products and at that placefore has extensive and blue-chip contacts in the industry, and b) the astonishing efficaciousness of this natural product line. 2 B. 2 Current Situation The Present Board of Directors of the Fulltec accompany consists of the by-line members Urs O. Kraft (Chairman of the Board) Frank W. Bencsits legal guardian and Tax Expert Managing Director directly Fulltec AG has no permanent employees. So there ar no liabilities in d ispatches or payrolls. The business location of Fulltec is Zug, Switzerland (45-km right(prenominal) Zurich). Research & Development is done in the fussyize chemical and entomological laboratories in Austria. convergenceion is carried out by behold contractors on a lower floor full control of Fulltec. B. 3 Strengths and Weaknesses The following pargonnted strengths and weaknesses give an overview on the current situation of Fulltec. They will be expatiate on in more item though in the following chapters. StrengthsFulltec owns the one and all registration of Anti-Lice products as a aesculapian Device fit in directive 93/42/atomic number 63 in the creative activity. High Products Efficacy of the unholys even under Hard Circumstances (Sweating, Swimming) completely Products on subjective Basis Nigligible Toxicity to humanity, Animals and Plants foul-smelling has Passed the OECD peel Absorption Test fouled Capable of Avoiding Severe Diseases like Malaria, the air ja cket Nile Virus and the assay-born diseases Encephalitis, Tulargonmie (Francisella tul bensis), RockyMountains-Fever (Rickettsia richettsii), Theileriose (Tehileria spec. ) and LymeBorreliosis.Products provide high Added revalue in terms of Profit and prestigiousness to the Distributor High merchandise touch in Germany, Denmark, Sweden and Hungary French Partner with crush Connections to all French Influenced Countries Rocketed in 2005 in these Well Known Difficult approachable commercialises Attractive Industry Availability of barren(a) Materials from Various Sources exertion at first gear cost, Little Manpower and in labor Units of Small Sizes High Flexibility in system, Production and Sales no recollective Term Treaties Competent wariness and R Teams High fluidnessity High profitableness Strong Financial posterior Challenges hush up subtile Market Presence in USA, NAFTA, Asia and Southern europium 3 Market Penetration in far countries, like China, Japan, Australia and Hong Kong tho started B. 4 Goals / forthcoming Developments Fulltec, with its phylogeny of new technologies has an chief(prenominal) impact in the industry. The company already gained recognition and a considerable world market fortune of 10 % for Household biting louseicides and fouls. A density on the almost inviting markets with the trounce(p) relative private-enterprise(a) situations will allow Fulltec to achieve sozzled further interior growth.Prime products will be the terrible line and the Medical Device serial publication of Anti-Lice products for human use, a line of Household-Insecticides and pet C atomic number 18 products, and a newly substantial product for use against spatter Mites. one-year growth rates in the range of 30 % to 60 % for revenues will be attainable under the current economical circumstances. Fulltec AG with its innovative technologies therefore appears as an amiable future partner for potential co-operations, joint ve ntures, etceteraStrategically using such co-operations already allowed Fulltec to achieve market leadership in individual market segments, as the market leadership in sales of repellents in European society Pharmacies. C Products / Technology Insect Repellents / Insecticides ample setting of consumption (Humans, Household, Indoor Plants, tends, some(prenominal) Branches of Industry, Pets, Animals, Plants) Active Ingredients of Natural and no(prenominal)-Toxic Base earthshaking Added Value for the customer C. 1 Product comment C. 1. 1 Active Ingredients / Substances RepellentsThe active force ingredients be produced under corporal conditions lone(prenominal), e. g. by hydrating under high pressure, followed by several vacuum and water go purifying processes of different natural oils and / or their natural grown main ingredients. They also could be obtained from semi-synthetically backlogs and fruit acids in the way of patented manufacturing procedures. The active sub stances use in all repellent products possess the same(p) chemical characteristics independently of their tar survive application on the human or animal jumble.Only different concentrations and varying content of actives and their special synergists atomic number 18 dependent on special selectments of unlike targets, regardless whether used in the form of sprays, creams, oils or lotions. C. 1. 2 Repelling Effect Pests ar in a locate to recognize desirable quarry as a result of the presence of so called bio receptors. These are for physical exercise (body-) temperature, humidity, CO2-content and certain chemical substances produced in small quantities by mammal strip down metabolic process processes, such as ammonia, butyric acid and urea.Conventional repellents cover up such bio receptors with a more or less utile aura. consequently they are passing limited in 4 their capability, as this aura of gas becomes quickly pierced by friction from clo subtileg, sweat and di fferent external influences, which then leaves an open target for attack by pests. Patented Active of Fulltec products on the other hand actually well covers the whole treated tegument issue and influences and eliminates the bio-receptors by motley mechanisms. These continuous reactions between Receptors and Active make the quarry nonvisual for the attacker (camouflage effect).This process continues until the Active is unaccompanied exhausted (around 8-hours). As the active ingredient is water resistant, it keeps the full efficaciousness even during periods of excrete and short periods of swimming. In tune to most competing products, peculiarly to natural based products, efficacy remains at a very high take aim for well over eight hours. In credit line to DEET, the most widely used substance in traditional repellents, the grate gross profit of Fulltecs substance is slender.Fulltec repellent has passed as only substance of its class the very close measures of the we ll known OECD throw together soaking up test The Fulltec products are negligible toxic for human beings and animals. C. 1. 2. 1 Active Ingredients / Substances Insecticides The active insecticide ingredients are obtained by chroma under high pressure, vacuum procedures and partially water steam amidizing from natural oils and plant extracts by a patented manufacturing procedure. Concentrations in different formulations are varying concord to the use. C. 1. 2. 2 Insecticide EffectFulltec Insecticide Actives coat the target insects and acarinas with a fine, buttery film. The active substances penetrate through the respiratory first steps and block them so that the insect dies at heart a very short time. In addition, a pronounced water break results in the quick and complete dehydration of the pest. Fulltec Insecticides are the one and only products in the sector of insecticide Actives with exclusively physical efficacy. Fulltec Insecticide Actives do not modify resistance bu ild-up be bring forth of this natural and physical and completely new system of efficacy.Especially efficacy is not achieved by a daring embitterous effect how it is the courting for most traditional insecticides such as carbamates, phosphoorganics and pyrethrines, which perpetually make believe more or less severe cause on piece and animals. The effects of Fulltec insecticides only occur in cold-blooded species, such as insects, spiders and mites (ticks). The substances turn out no negative toxicological effects on the warm-blooded domain and pets. except the solely physical mechanism makes the buildup of resistances of any kind impossible.C. 1. 3. Toxicological Summary slap-up oral toxicity LD50 10g/kg rat Acute dermal toxicity LD50 10g/kg rabbit Inhalational toxicity no results, intake non poisonous Primary skin botheration none nettlesome in patch test on rabbits and humans mucous membranes valuation account only moderately irritating in pure concentratio n biological degradability 90% BSB28/CSB according to the modified OECD screening test Fish toxicity LC50 100mg product/ lambert Bacterial toxicity EC50 100mg product/literC. 2 Products 5 The product lines, due to the substances unspecific effect on all kinds of insects, cover a very broad range of applications for the benefit of humans, animals, and plants. All products are based on Fulltec? s Active Substances, though in varying concentrations and with different additives to achieve specific requirements of different applications. further further future applications are possible, as tests continue to reveal good results in previously uncover areas. In addition, the formulas allow versatile ombinations, so that the products range can include gels, creams, oils, lotions, sprays, additives to cleaning and impregnation products, shampoos, spot-on-products, collars, bracelets and aerosols. The following tables list examples of available products. C. 2. 1 Products for human and environmental use effigy of Use Men Women Children Product Mosquito hold dearor Tick Protector Wasp Protector clegg Protector Repellent Bracelets Anti-Lice Shampoo Anti-Lice Lotion Anti-Lice Gel Anti-Lice Spray Lice-Repellent Spray Lice Repellent Gel Insect Killer Insect Mosquitoes Ticks Wasps, Hornets HorsefliesType Repellent Men Women Children Mosqitoes, Ticks Headlice Crablice Medical device Clothlice acc. Directive Nits 93/42/EEC House Mite deterrent Washing Machine Anti-Lice Detergent line of credit premises Roach Killer Kitchen root cellar Gels Insect comprise Spider checkout fly, Mosquitoes Insecticide Wasps, Ants Mites Cloth Moths Food Moths Fleas, Lice Dust Mites Lice and Nits Cockroaches Cockroaches Ants House Crickets Spiders Woodlice Ants Cockroaches Silverfish Insecticide Repellent & Insecticide C. 2. 2 Products for Pets and Animals 6 Range of Use Pets municipal animals Product Insect Fleas Biting flies Lice and Nits Mo squitoes Ticks Mites Fleas, Ticks Mites, Lice Horse Flies Lice Flies Flees Ticks Other pests and nuisances Type Repellent & Insecticide Horsefly, Sandfly, Mosquito and Tick Protector Collars X-Line and Protect Line Spot on products Dogs, Cats Liquid Sprays Small farm animals Spot On Horses Liquid Sprays Cattle Sheep Other Domestic Animals Repellent & Insecticides C. 2. 3 Products for Plants & Garden Range of Use General Use Product Ant chip Termite Stop Bug Stop Flowerspray Insect Ants Termites Beetles Nematopodes Mites Aphids unclouded Flies Red Spider Mites Caterpillars Ants cast up Flies Caterpillars Other Insects Type Insecticide Flowers Insecticide Trees Tree Protection Repellent & Insecticide C. 3 Independent Tests and Studies General Various independent Institutes (1) conducted numerous extensive studies and tests on the individual Fulltec Products. Subjects of those were first of all the efficacy under test conditions and in practical use, sec ondly the allowance (Toxicology) for humans as well as animals, and thirdly the ecological behavior (biological rot).As the insecticide effect is solely physical and not based on a fondness poison, there cant be any buildup of resistance. Regarding the Insecticide Products, the broad range of efficacy on various kinds of insects was demonstrated in the lab as well as in practical use. Furthermore the biological decomposition was demonstrated to be excellent. On the product Roach Killer efficacy against cockroaches was demonstrated. Regarding the Repellent Products besides efficacy and toxicology skin tolerance were main subjects of the extensive tests conducted. All tests showed excellent results.In addition, separate studies compared the efficacy in practical use (field tests). All tests revealed high(prenominal)-ranking efficacy of Fulltecs Repellents compared to competitive products 7 including the market leaders Autan (Active Bayrepel) and OFF (Active DEET both products by SC Johnson). On comparable conditions, the repelling effect of Fulltecs Repellents was shown to last longer. Worth to mention explicitly is the fact that Fulltecs Repellents are the only products available on the market yet to pass the rigorous requirements of the well known OECD scrape up Absorption Test. 1) LHS Institut fur Hygieneforschung und Schadlingsbekampfung in Labor und Praxis, Miesenbachgasse 7, 2700 Wiener Neustadt, Austria PRAEVMEDIC, Carmenstrasse 8a, 8032 Zurich, Switzerland Swiss tropic Institute, Socinstrasse 57, 4002 Basel, Switzerland BioGents GmbH, Universitatsstra? e 31, 93053 Regensburg, Germany IS Insect dishs GmbH, Dr. Hans Dautel, Haderslebener Str. 9, 12163 Berlin, Germany T. E. C. Insecticides testing, 7 bis rue pont de laveugle, 64600 Anglet, France Hopital Avicennes, Professeur Azreki Izri, Laboratoire de Parasitologie, 125 rue de Stalingrad, 93009 Bobigny, France everlasting(a) detailed List of Test Reports deliberate Annex I C. 4 guest Benefits In the following graph, the characteristics of the Fulltecs substances are compared to those of DEET, Bayrepel and inwrought oils in Repellents. C. 4. 1 Comparison Customer Benefit Repellents Active Ingredients Insect Repellents Fulltec DEET Bayrepel ++ + ++ + + + + ++ -+ ++ -0 0 0 + ++ ++ ++ + indispensable Oils +* + 0 ++*1 1 2 3 4 5 6 7 8 * = in low concentration, higher(prenominal) concentrations are irritant *1= banned later on 01. 09. 2006 acc Directive 98/8/EECExplanations Comparing Fulltecs repellent against DEET, BAYREPEL containing products and essential oil ++ = very good + = good 0 = reasonable -= could be better = unacceptable Comments 8 1 Long Term Effect Contrary to the essential oils, Repellents from Fulltec show a high repelling effect for over 8 hours. DEET and Bayrepel also have proven to be effective under laboratory conditions whereas the effectiveness depended passing on the amount of active ingredient (high doses of 30 %+ are effective like Fulltecs Ac tives.Lower concentrations have poorer efficacy). 2 wideband Efficacy Fulltecs Repellents show the scoop broadband repelling efficacy against a wide range of nuisances, including multiple species of mosquitoes, ticks, wasps, horseflies, sharp flies, black flies and mites. Products containing DEET at higher concentrations ( 30 %) are also effective widely. Bayrepel is only available in concentrations 10 and 20 % and exhibits just short fortress times so that reapplications every 2 to 3 hours are necessary to get a risk-free train of surety. inwrought oils are unsuitable because of practically non-existing protection time and broadband efficacy. 3 irrigate/Sweating Resistance Compared to the other substances, Fulltecs products are more water resistant. As they are deactivated uncomplete by sweating nor under water contact (e. g. short swimming) they keep their effectiveness also during sports. 4 Skin Care The substances used by Fulltec show significantly more skin care qual ities than the competition. They only contain super skin tolerant and even skin pity base- and active ingredients.Therefore the products are not only highly effective repellents, but also high quality cosmetic products. The plant oils and their skin caring derivates give the skin energy and vitality, whereas natural Vitamin E fights potential inflammations. Evenly applied, the product maintains the skins natural moisture, and makes it soft and elastic. 4 Skin permissiveness Traditional, effective Repellents all contain high levels of skin irritating and partially highly toxic substances. Contrary, Fulltec products have never caused eczema or allergic reactions so far.Essential oils in higher concentrations cause skin and mucous membrane irritations. Furthermore they can solve plastics and synthetic textiles, which is a riddle of DEET products, too. Bayrepel seems to have second surmount Skin Tolerance but examinations of its toxicological properties are not concludingized yet . 5 Ecological Tolerance Fulltec products are natural non-poisonous products with a high ecological tolerance. Essential oils, above all technical qualities of Rosemary and Citronella exhibit toxic effects on soil bacterias and show only poor ecological tolerance.DEET on the other hand is an ecotoxic substance. Bayrepel seams to have only slightly ecotoxic potential. 6 Price The Fulltec products values are usually conformist competitors and markets policies. Fulltecs low standing expenses allows following all prerequisites of different markets and competitors pricing. 7- Availability Bayrepel (Autan) definitely has the best accessibility in all retail convey today. Being the no. 1 in Central European pharmacies Fulltec? s Repellents reached a high level of availability.Furthermore they are able to substitute all Natural Actives based competitive products which will be banned after 01. 09. 2006 (deadline of Directive 98/8/EEC). These other Natural products mainly are sold thro ugh drug stores, but everlastingly decreasing customer betrothal and postulate will lead to only a narrower availability in the future in countries outside of the EC as well in NAFTA under further restrictions by the EPA and the Canadian PESTICIDE REGISTRATION and EVALUATION COMMITTEE. 8 User friendliness All products are user friendly in the hotshot of easy application. merely DEET is aggressive against several materials like plastics, is toxic and causes skin and mucous membrane irritations. This is also valid for several essential oils. Bayrepel seems to be more safe and gentle but is restricted for application on children below an age of 2 years. Only Fulltec Repellents fulfilled requirements of the OECD skin concentration test and can be used safe under observance of the recommended directions for use. In summary, the Fulltec products clearly offer the highest customer. The Fulltec products are highly effective against insects comparable to high arduous DEET.In contrast to DEET, Fulltec products are based on natural ingredients and show excellent skin tolerance 9 and skin care qualities. In comparison essential oils repellents are of natural base, too but they show a low efficacy in terms of repelling insects over a longer period of time. barely a lot of them cause skin and mucous membrane irritations and possess photosensitizing potential. C. 4. 1 Protection against Competition The products are satisfactoryly protected by granted or pending patents). Fulltec AG owns the patents protecting the repelling as well as the lethal features of the active substances.In addition, the isolated firmness of purpose of ingredients according UPAC or INCI usually does not allow gaining knowledge on the precise composition and special nature of the Actives. Fulltecs exclusive knowledge of the patented manufacturing process of Actives justifys imitation protection of Fulltec Repellants and Insecticides by competitors. D Markets Very attractive market (highly h igh market peck, high growth) Fulltec shows all pre-requisites to be successful Market is already evaluate the Fulltec Products Consumer Trend clearly going towards Natural Products Barriers of entry already overcomeD. 1 Market Overview D. 1. 1 Description / Characteristics If only for its enormous size, the market for Insect Repellents and Insecticides should be considered extremely attractive. Despite the big ceremonious competitors dominating the market, there are various attractive niche markets available to innovative companies. Fulltec, with its range of nature products falls into such a niche. The before long most widely used ingredients in competitive products are DEET (in repellents) and Pyrethroids (in insecticides).All those substances are being increasingly questioned and therefore avoided by many consumers and more and more even by governments and enchant authorities. It can be expected that those products with alleged(prenominal) active ingredients will have to b e substituted more and more by natural products. This opens up an extremely high potential for Fulltec to securely establish itself in this market. As the products hear a high consumer acceptance already today, a bigger market incursion can be safely foreseen. D. 1. 2 Market SegmentsThe segmentation of the market shows the following criteria Range of use Humans and Environment / Pets / Animals / Plants Type of use Repellent (to repel insects) / Insecticide (to kill insects) part Switzerland / European Community / USA / Canada /Australia To recognize the estimated total market volume, the various market segments were analyzed at first (Supplements Estimated Market Volume). Starting points were market studies of IHA GfM for Switzerland and GFK for Germany. In addition, the pertinent market segments for Fulltec in terms of dispersion channels, competition, prices and margins were analyzed.On the basis of market selective information of the specialized trade (pharmacies, etc. ), the total market volume for Switzerland and Germany was estimated. In browse to calculate total 10 world market volume, Switzerlands and Germany? s per capita consumption was taken as a base. hitherto adaptations to in some instances different distribution channels, price levels, usages, etc. were made. D. 1. 3 Client turn of events To distribute its products, Fulltec currently uses the following channels Specialized Trade (Pharmacies, Drug Stores), and more sparely in Retail shackles and Stores just it is a set destination to penetrate all segments of distribution. In Switzerland for example, the specialized trade segment could be covered by big players in pharmaceuticals and special chemicals (for Repellents), and the retail chains and stores by international players (for Insecticides). Moreover, Fulltec currently is in negotiation with various Multinational Companies. D. 1. 4 Factors for Success In the Insect Repellent and Insecticides markets, the most Copernican fa ctors for success are definitely the efficacy of the products and the presence at the point of sale, i. . the easy availability for the consumer. Moreover the tolerance of the products for human and environment is of increasing importance. In addition, an increasing sensibility against synthetic, toxic substances is recognized, as more health consciousness of multitude leads to preference of natural products. The Fulltec products are both, highly efficient and ecologically well tolerated. In line of battle to improve easy availability for the consumers, Fulltec decided to collaborate exclusively with formal distribution partners.It is possible to achieve a high market presence in short time with this strategy. Fulltec products perfectly meet the factors of success, which allows the continuation of the quick market insight by Fulltec products. D. 2 Market prospect Current Situation soon, the strongest market position held by the Fulltec products is repellents, a highly attract ive market segment. The second position in terms of market brainwave as well as attractiveness of the market segment is held by the natural insecticides, especially the market segment Pet Protection.All remaining product groups (Repellents and Insecticides in all their broadness) are positioned in comparatively highly attractive market segments, but have not reached significant market penetration so far. Future Situation longitudinal term, Fulltec expects to achieve fairly prevailing market positions in the following segments Insect Repellents, Anti-Lice product line, Household Insecticides, Pet Protection and Mite Stop, which at the same time are the most attractive product groups and market segments. Less dominant, but nevertheless sinewy market positions are expected to be attainable in the egments Agricultural Insecticides and Garden Products. Repellent 11 At least for the next one or two years, Repellent products are expected to continue contributing the largest package to total revenues among all product groups, as the total world market for such products is huge and extremely attractive. Furthermore, Fulltec? s natural and non-toxic products today are already well accepted in Europe and USA. It is assumed that over time, natural products will increasingly challenge the launch toxic products, gaining in market share also due to legislation ever-changing towards more restrictive forms.Anti-Lice Products Market penetration of these products is on the best way to get No. 2 in Europe and No. 1 in medicine Devices in EC. It is expected to significantly increase its share, as being of natural base and pure physical efficacy lots is the decisive factor for being chosen by consumers. Efficacy of the product is excellent, and it is being very well tolerated. Pharmaceutical trading (Drug stores and Pharmacies) will be the preferred sales channel, thereby guaranteeing high margins and profits. Pet Products By nature, the market for pet products is very att ractive and competition is very high.As Fulltec will concentrate its efforts on those markets, which offer the best relative competitive position, pet products will not be at the capitulum of marketing efforts at the moment. A potential cooperation with one or more established companies in this field however could change this assessment rapidly. Natural Insecticides Due to ever increasing requirements in terms of ecological tolerance and to the extensive restrictions of Directive 98/8/EEC according Biocides, natural insecticides should gain significant market share over the coming years.This product group therefore is expected to contribute markedly to total revenue growth. Mite Stop Taking into account the steady increase of Dust Mite Allergies, this segment is clearly a market of the future. Dust mite allergies come from a saturation of the air with dust and excrement particles. A Fulltec product to exterminate dust mites is already fully developed and successfully introduced int o Central European markets. It is applied by spraying into air and on mite-infested surfaces. The dust particles become double-dyed(a) with Mite Stop and drop to the floor, which already brings about a cleaning of the air.The move down particles start to act as insecticide against the dust mites population. The circle of the defunctness of dust mites therefore is closed. A relatively quick market introduction is possible, as a registration as Anti-Allergicum can be avoided if the product is advertised and sold as primarily an Air Cleaner. All other currently available products on the market are still based on toxic Pyrethroids, which institutionalises the Fulltec product into an good position. Alternative methods used are various medications, which however combat the symptoms rather than the cause of the problem.Furthermore, as such drugs are high margin products, the Fulltec alternative can also be expected to sell at premium prices with high margins. D. 3 Market Assessment Th e following points peak in further increasing market penetration by the products of Fulltec 1. Acceptance of the Fulltec Products 12 On the markets already served, the Fulltec products generally achieve a high market acceptance. 2. Barriers of Entry The barriers of entry to new contenders are quite high. Fulltec has already overcome them as the products lready have been tested in terms of efficacy and tolerance, and as patents and registrations processes have already been initiated. 3. Trends A major trend within todays society points towards central of toxic substances by natural ones. Accordingly, the market potential for Fulltecs natural and non toxic products can safely be considered very excellent. E Competition Competition in Repellents for the most part DEET and Bayrepel based Competition in Insecticides broadly Pyrethroid, Carbamates and Organophosphonics based Significant competitive wages for Fulltec Fulltec is ready for competitive strategies E. 1 rivalrous Products E . 1. 1 Repellents In competing repellents worldwide, almost universally the substance DEET (N,N-Diethyl-mtoluamide) is used. This specifically effective Insect Repellent is toxic and has a strong irritating effect on eyes and mucous membranes. Some children have shown a harming of nerves and, due to inhaling DEET, cases of death have been reported (Tenenbein, M. JAMA, J. Am. Medical Assoc, 1987, 258). In competing repellents in Europe, almost the substances Icaridin (Bayrepel) and IR3535 are used. Alternative repellents such as essential oils show a rather low efficacy and can cause allergic reactions.E. 1. 2 Insecticides A multitude of active ingredients is used by competing insecticides products. close of them are nerve poisons. A lot of the formerly highly praised substances (DDT, Dieldrin, Lindan) are banned today in many industrialized countries because of their toxicity. Alternatively, Pyrethroids are used very widely today (about 50-75% market share). Pyrethroids are synthet ic insecticides. Although the toxicity of this insect specific biocide is markedly lower for mammals, it is still a factor of up to 100-times higher compared to the Fulltec Insecticides.In addition, Pyrethroids show a considerably higher fish toxicity. Other natural insecticides currently show a clearly lower efficacy compared to both, the synthetic insecticides and the Fulltec products. E. 1. 3 Most Important Competitors The following table gives an overview on Fulltecs most important competitors and their products. In the Supplements section, there is a table listing the most important companies within the various market segments in Switzerland with their market shares. 13 Competitors and Competing Products union Bayer SC Johnson 3M Corp.Reckitt & Coleman Shell Vogt AVON Description Multinational chemical substance Co. Multinational chemic Co. Multinational Chemical Co. Multinational Chemical Co. Multinational Chemical Co. Small intensity level Co. Intl. Cosmetics Co. Geographi c al Presence world-wide world(prenominal) International International International Switzerland USA and Intl. Market Position Market d tendering card worldwide Marked d edgeding card USA No. 2 USA No. 3 worldwide No. 1 in Market Segments Leader Repellents CH No. 1 Mail-order USA Company Bayer SC Johnson Insecticide Baygon foray into Substance pyrethroids pyrethroids RepellentOFF, Autan Ultrathon KIK Anti-Brumm Skin So Soft Substance DEET/DMP Bayrepel DEET/DEP DEET/DMP DEET Natural Base 3M Corp. Reckitt & Coleman Heropic, Neocid pyrethroids Shell Shelltox pyrethroids Vogt AVON E. 1. 4 Competitive Advantages / Disadvantages Advantages The products of Fulltec have enormous advantages of being based on substances well tolerated by human and environment. They do contain neither the toxic DEET nor any other harmful substances. Moreover the products show high efficacy comparable or higher to the synthetic products and significantly higher than essential oils.Initial success, especiall y due to above factors, is clearly visible on already covered markets. Disadvantages The products themselves do not have any apparent disadvantages. As the market position of the competitors is fairly dominant so far, a successful market entry of small companies like Fulltec is not easy. However, the massive advantages of Fulltec products cited above as well as an experienced management will help Fulltec to overcome such hurdles. E. 1. 5 Competitive Strategies The constantly increasing claim for natural products may tempt competitors into imitating Fulltecs substances.However the patents as well as the product know-how speak against such strategies. A renewal of the Fulltec formula by another, equally effective natural substance, is not discernible so far. After all, some competitor big businessman be tempted into trying a takeover of Fulltec AG. The current shareholder structure though represents an insurmountable barrier at least for unfriendly and unwelcome takeover attempts. In any case the interests of the shareholders will be of major importance. F F. 1 market Market Coverage 14 F. 1. 1 Distribution / SalesDistribution is effected through sales partners with a high market presence in the single market segments. This strategy will be continued, as it allows a relatively rapid penetration of the markets. In addition, it allows using more than one distributor in a single market with the different Actives and slightly modified formulas in different structure market segments. This strategy also allows opening up the various distribution channels in a given market (Specialized Trade, Retail Trade, Mail-order Business Partners, etc. . However it is possible that some distributors are in direct competition with others selling a different form and Active Ingredient of the same basic product. For products or product groups which are not part of first priority marketing plans, strategic alliances with companies firmly entrenched in those market segments are planned. F. 1. 2 Communication Communication will be expanded to new partners to develop new markets and activities of business. Further it will be necessary to perfect and extend information.The end users will be more clearly informed about both, the negative effects of the competitive products, and of course about the advantages of the Fulltec products. This strategy will lead to accelerated heterotaxy of the traditional synthetic products by natural Fulltec products. For this purpose, various media, like Internet TV and radio advertisement appear predestined. F. 2 Product and Marketing Design presently Fulltec does not sell any products under its own name. The distributor or sales agent can individually contain a brand name of his own. F. 2. 1 Product LineThe product line of Fulltec is described in detail former in this report. All products are available either as bulk ready to use, as concentrate (container, barrel) or already packaged as lotion, spray, etc. Future Years In the following years Fulltec expects continuous gain of overall market share. This should lead to a sustainable growth in revenues of at least 40 -60% per year. It will be looked for further sales partners in Europe as well as in the USA, Asia, Africa and South America, mainly for the Repellent, the Insecticide and the Anti-Lice Product line. G Production / Procurement/ Ecology / Location / R & D Patented Production Processes fat unused Production Capacity No specific Dependence on Suppliers of Raw Materials Environment-friendly Production Good Location R & D Emphasis Refine existing Products Develop further Applications G. 1 Production All sold products are produced under control of Fulltec by independent contractors. The fruit processes mainly consist of the manufacturing of Active Substances by physical 15 conversion of natural substances into efficient derivates and mixing various substances according to proprietary and secret processes and formulas.Consequently only a r elatively small number of equipment and technical installations are needed. To get to the finished products, automatic alter and packing machines are used. The production process itself is high technology, although just common lab equipment (including gas chromatography and thin layer chromatography) is necessary. As the production process is highly automated, labor costs are kept low, too. Fulltec has the option to build up its own production facility or seek external contractors for tasks like mixing, filling and packaging.However at the moment such a construction step is not planned. G. 2 Procurement All ingredients and raw materials needed for the production are tardily available. Suppliers are mainly big companies, competing against each other price-wise as some of the raw materials used are also traded on the commodity markets. The prices for the raw materials used do not fluctuate widely. Therefore no problems regarding the supply side are foreseeable, which should guarant ee an ongoing smooth production process. G. 3 Ecology G. 3. 1 Legal abidanceAll relevant laws and orders of Switzerland and the EC are strictly followed by Fulltec. However it is important to note that Fulltec does not fall under the order on ecological tolerance (Umweltvertraglichkeitsprufung) or the Storfallverordnung). For all products, safety data sheets are available, as requested by the regarding directives, e. g. Stoffverordnung (order on materials used). G. 3. 2 Raw Materials The main components of the products consist of natural raw materials. apart(predicate) from water, mainly non-toxic and well biodegradable substances are used.Some other ingredients of very low toxicity (all within Swiss poison class 4 or 5 or not classified) are just used as additives in very low quantities. All raw materials are well biodegradable. G. 4 Location Fulltec AG is located in Zug, Switzerland. Infrastructure Currently production is done by contractors which are capable of increasing volum es significantly without causation any problems. The (rented) offices are fairly new, and adequate for Fulltecs sales activities. As most of the clients are located in different unconnected countries and transport costs are low at current sales volumes, this point is of no major importance at the moment.At a later defend though, when sales continue increasing at estimated rates, other (outsourced) production facilities within major client regions or countries will be installed. The generally very high level of education of employees in Switzerland and countries of contractors (Austria, Germany) represents a competitive advantage. Locations are very attractive for employees. 16 Distance to clients Education Labor Costs Corresponding to the high level of education, net profit levels are quite high as well, at least compared to other countries.However, as the operation of Fulltec is not very labor intensive, this does not represent a major disadvantage. G. 5 Research & Development Research & Development is being conducted in laboratories in Austria. As this division caused no problems in the past, there is no plan to unify these efforts in one single place. In R, emphasis is being put on refining existing products. In addition, further potential applications for the same basic formula inherent in all Fulltec products are also developed as new Actives on natural basis. H Organization / ManagementDirect major efforts to the refinement of achieving competitive advantages Lean Organization Management with proven capabilities Profit Sharing by Management H. 1 Organization H. 1. 1 Core Functions In the following, we comment on the core functions within Fulltec today, in the order of current importance or weighing (number of people involved, financial resources). Marketing / Sales This part definitely requires the most circumspection in the current phase of development. sweet distribution and sales partners have to be located, new markets have to be developed, new products introduced, etc.Strong partners offer the best prospects in terms of the variety of products correspond and of potential market penetration. Production The production processes are very well matured. Therefore it can be outsourced to thoroughly selected partners. However Fulltec controls the whole process at any stage. Of course there will be efforts to optimize production, to use free capacities, etc. Even though good patent protection is given, the producers have to prove dependability in keeping the exact formulations secret.R The major phase of R, the development of the formulations and the final products, is basically done. Therefore main R emphasis will be put into the refinement of existing products and the identification and development of additional applications. However this does not mean that no new products or product lines will be developed in the future. Procurement As already mentioned in other sections of this business plan, the procurement of the raw materials does not pose any problems, neither in terms of availability nor in terms of price.Increased sales volume in future will even lead to better purchase conditions. Service Sales advice and support is of major importance for every production company. However, regarding the specific construction of the company, service does not play a major role in the case of Fulltec, as the products do not require any kind of maintenance, repairs, or other frequent advice. Speed and accuracy of rake on the other hand is of predominant importance. 17