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Registration No: 1926365 Module Code: BSMP33

Venture Management

HIGH TECH HEALTH JOSH AND ROSEANNA PENNY INTRODUCTION Small and Medium Enterprises (SMEs) account for over 95% of businesses create roughly 50% of total value added worldwide and, depending on the country, generate between 60% and 0% of all new jobs. While they historically have not been associated with international business, SMEs now account for about a quarter of export in most industrialised nations. Internationally-active SMEs are emerging in notably large numbers throughout the world, and they tend to be more dynamic and grow faster than strictly domestic firms (Knight 2001:156) The Sunday Times recognized High Tech Health as one of UKs fastest growing SMEs by awarding it the fourth rank in its list of Fast Track 100 Companies in 2010. High Tech Health which has made a mark in creating and promoting novel health devices and attained global successes within a very short period of time is led by founders Josh and Roseanna Penny who decided to start up the company in 2003 while residing in London. The Company was formed according to family business models in Australia. Josh and Roseanna introduced their own savings into the business as Capital and started by importing a range of infra-red saunas that were promoted at home shows. But what acted as a catalyst for the business was their foray into consumer-health devices and direct marketing that. At present, their variety of homecare therapeutic products, which includes an apparatus intended to boost circulation, is sold through television, press and pharmacies all over Britain and Europe and Australia.

ENTREPRENEURIAL CHARACTER TRAITS OF FOUNDERS JOSH AND ROSEANNA PENNY THAT HAVE STIMULATED UNPRECEDENTED GROWTH OVER THE YEARS Revenue generated from Sale of High Tech Health Products grew by 194% every year, from 671,000 in 2007 to 17million in 2010, propelled by the acquisition of the familys original Australian company in 2010. Some distinct entrepreneurial character traits as found in Josh and Roseanna Penny that may be linked to the success and growth of Health Tech are as follows: Opportunistic Josh and Roseanna believe that their proficiency lies in identifying and exploiting new market segments, efficiently studying the consumer behaviour and targeting the right customers having identified their needs and wants and in satisfying the customers by meeting their needs at the earliest. Proactive and Motivated - Josh and Roseanna feel that the reason why a family owned business has experienced considerable growth since its start up is because of the principle of hard work dedication and motivation to perform better each year. They are not only focussed about health devices that actually work but also provide proven research to support the effectiveness of the device and they take this up as a challenge which they enjoy and do not take it up just because they are forced to. Their passion for striving to be the best has been the extrinsic motivation to develop a team at High Tech Health which comprises of professionals who understand the product dynamics extremely well and are motivated enough to work towards attainment of the companys vision and mission by ensuring worldwide success. Innovation Entrepreneurs Josh and Roseanna have put in all their hard work in manufacturing innovative health devices to meet and satisfy wants and needs of the targeted customers. With a strong international distribution network and logistics partners, retail/pharmacy chains and creative Tutorial Group Designation : MBA Tutor : Frank Martin Page 1

Registration No: 1926365 Module Code: BSMP33

Venture Management

promotion and marketing of High Tech Health products globally, they have been able to distribute the exact product, at the exact price and the exact time. They also believe that Speed is fundamental so as to make sure that their health device has reached the potential customers. Visionary with flair - Josh and Roseanna believe that Customer is the king and thus every decision they take is by keeping them in mind. They try their best to make sure that they receive the superior health devices on time and understand the usage appropriately so as to deliver the best to their customers and are dedicated to 100% client satisfaction which has also helped the customers to build the trust in High Tech Health devices. Launching of High Tech Health High Tech Health UK's most creative and active health and wellness Company started off as a family owned business since 199 was launched with the philosophies of providing innovative health devices internationally that actually work and are backed-up by proven data and it has remained true to the above principles till date which may be considered as a success factor for the company. High Tech Health successfully established its base in Australasia, Europe and North America and has been one of the fastest growing healthcare companies. The success factors may be accredited to two reasons their global customer base and range of novel healthcare products. High Tech Health was initially launched in Australia by Stewart and Susan Penny. Soon it was recognized as a rapidly growing and dynamic company that was concerned with introducing only the best health devices from all over the world to be promoted, marketed and distributed via pharmacy and direct selling to the its global consumer base. Josh and Roseanna Penny, who are the joint Managing Directors of High Tech Health UK, originated from Australia but got the opportunity to expand their family business within Europe and beyond. They were so successful that they ended up buying High Tech Health Australia from Stewart and Susan and ever since their acquisition, the entrepreneurs of High Tech Health UK/Australia has been on a drive to recruit talented individuals who can think outside the box and apply strategies that would generate high Return on Investment values and who are constantly looking to move forward to accomplish the companys objectives. They have always been on a lookout for innovative health devices that has global prospective and to launch them in the potential market segments in the most proficient and effective way which has been possible through their well-known multi-channel international distribution network platforms blended with their proficiency in developing health devices into brands that customers and channels actually look forward to. High Health Tech has also constantly accelerated innovation process of their product offerings. From early-stage research through to IP, supply chain and customer use, High Tech Health has been prompt in delivering high class novel medical devices to their clients because Josh and Roseanna believe that it is only by means of product innovation and persistently striving to choose the best medical devices in the market, can High Tech Health fulfil its business goals of ensuring that every home has a High Tech Health device. The unprecedented growth of High Tech Health may be attributed to the following principles that are followed by Josh and Roseanna Meeting Customer demands and expectations Josh and Roseanna feel that Customer Satisfaction is a challenge for High Tech Health as there is an overabundance with regards to health devices that are available in the consumer market. The points of difference that makes High Health Tech products the most wanted in the market is the fact that unlike it competitors who promise a lot and deliver very little Josh and Roseanna at High Tech Health only Tutorial Group Designation : MBA Tutor : Frank Martin Page 2

Registration No: 1926365 Module Code: BSMP33

Venture Management

focus on those medical devices that are backed by research data to prove the products effectiveness and the team at High Tech Health constantly carry our own internal rigorous quality control policies to ensure that they continue to maintain and develop upon their current high standards in their offerings in the market. Josh and Roseanna are also always on a lookout for innovative devices and at partnering strategic healthcare companies to give them a global platform within the shortest period of time and helping them to achieve the highest return on investment Delivering medical devices that are a commercial success Josh and Roseanna at High Tech Health believe that it is baseless manufacturing a medical device that cannot be brought to the market or where the cost of producing acts as a barrier to its growth. They believe that they can take the existing innovative medical devices and make use of their team to increase the value added and sales prospective to suit the business strategies. High Tech Health believes in manufacturing products that could be quickly sold off the shelves of pharmacies and retailers by creating a 360 strategy that permits the product to generate highest possible yields. Exploring new market opportunities to give the brand a global prospective Josh and Roseanna understood how difficult and complicated it will be to get an exclusive medical device into the market. Through their own confirmed track record and sales growth they have developed a supply chain distribution network that can quickly take the novel products to chief high street pharmacies, retailers and online . Time is the critical factor in delivering the right products at the right place. Research and Development Activities and Expansion of Client Base Josh and Roseanna spend a substantial sum of money on funding research and development activities and to ensure that before the new medical devices are sent to the market, they are processed through thorough in-house controls to ensure maximum customer satisfaction. They have also been looking at expanding their clientele by creating a differentiated medical product portfolio whilst expanding with innovative and stimulating devices being launched on a regular basis. Over the last few years they have not only developed an international network chain that permits them to foray into each market segment quickly and accurately but also ensures establishment of strong partnerships within the region High Tech Health operates in so as to effectively roll out the sales strategy. Promoting and marketing the products to the potential customers Josh and Roseanna believe in intensifying their retail reach with global market leaders in every country and thus their products are found in some famous retail outlets like Selfridges London well known pharmacies like John Bell & Croydon London & Terry White - Australia. They have made use of multiple promotional channels which includes social networking sites, DRTV campaigns marketing through mobile phones etc in order to ensure a high reach and success globally. Partnering with High Tech Health Josh and Roseanna at High Tech Health have not only aimed at specialising in manufacturing and bringing creative medical devices to the market segments but have also been quick at identifying the important issues to make sure that they deliver best sales results of products of companies that they have partnered and that too in the shortest possible time period. They are also engaged in licensing and outsourcing options available. Marketing Strategies Adopted by Josh and Roseanna to accelerate growth of High Tech Health

Tutorial Group Designation : MBA

Tutor : Frank Martin Page 3

Registration No: 1926365 Module Code: BSMP33

Venture Management

According to Josh and Roseanna , once High Tech Health has recognized any medical device that fits within its range of high growth medical devices that their end consumers want and the ones that retailers are willing to sell, they can establish the following strategies: Developing the concept Ensure that the Medical Device will generate revenue. They offer a product evaluation manual that investigate whether the devices will really be best sellers in a highly competitive market because they believe that only highly creative health devices backed by proven research data will survive the test of time in the market. Strategic forecast phase - Find out how each device can turn out to be a noteworthy market force within a very short period of time. Instigate programme phase - High Tech Health makes use of its considerable international network to make sure that the product offerings go through the accurate supply chains with the slightest disruptions. Steer multi-channel sales internationally - build up innovative and sales focused promotional marketing campaigns to steer online and footfall sales to make sure that the product motivates the end consumers and distribution networks. Craft high value proposal schemes In order to make sure that the product maximises its potential through the product life cycle NPD - Decided on when to initiate the launch of the next device and improve upon the existing product offering to reap higher margins of profit Develop a recognisable network infrastructure by: advice how achieve its sales potential.

1. Creating a value added proposition to determine the actual value of the product offerings and 2. Provide commercial strategies that will permit on to:
a. Create strong points of differences between their products and that of competitors b. Augment the quality and quantity of sales leads c. Capture a larger market share in targeted segments d. Bring into line the business operations more closely to customer needs

3. First To Market - To reach out to potential customers as fast as possible with the right
marketing messages to steer sales and growth by developing multi-tier strategies and by doing a comprehensive research about your market segments and customers, understand the consumer buyer behaviour and then make use of the research data to raise awareness and steer sales by educating customers about the product value and brand value, and create integrated marketing campaigns to develop a strong bond with customers to secure brand loyalty.

4. Utilise efficiently the multi channel distribution network of :


Retail/pharmacy channels Social Networking websites

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Tutor : Frank Martin Page 4

Registration No: 1926365 Module Code: BSMP33 DRTV experience and track record

Venture Management

Off/Online media to drive customer and retail acquisition

CONCLUSION Josh and Roseanna Penny appear to be Market leaders and not followers with their strength lying in innovation, product development and commercial expertise. They appear to be following an exclusive methodology that can be used to build up strategies aiming at commercial success, marketing and branding strategies to capture a larger market share, effective operational plans and global launch strategies by focusing on finding the 'right' solution and utilising all energies and resources to find a solution to the problem. Business strategies cannot be merely left to Luck and entrepreneurs Josh and Roseanna seem to possess the ability to identify the main issues in order to implement a business growth strategy that leads to success. It is a result of the strong entrepreneurial traits that we find in Josh and Roseanna that have aided High Tech Health to become a market leader in innovative health devices not just in the UK but on an international platform.

Tutorial Group Designation : MBA

Tutor : Frank Martin Page 5