Market research report for Cryosave, Bangalore

Segmenting the Bangalore market to find the potential customer for the brand Cryo Cord & Cryo Cord +

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

Market Research Report

Cryosave

March 2013

Table of Contents Sr. No.

1.0 2.0 3.0 4.0 5.0 5.1 5.2 5.3 5.4 5.5 6.0 7.0 8.0 9.0

Topics
Introduction Survey objective Methodology Report Bangalore :IT Hub of India Secondary Research: South Bangalore Secondary Research: North Bangalore Secondary Research: East Bangalore Secondary Research: West Bangalore Primary Research: Cross tabulation data Conclusion Suggestion References Appendices

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

Market Research Report

Cryosave

March 2013

1. Introduction:
The global stem cell market is estimated to be $88.3 billion by 2014, growing at a CAGR of 14.8 % from 2009 to 2014. The U.S. currently holds a 60% share of the global stem cell market; and forms an especially lucrative market for areas such as bone marrow transplantation through stem cells. The stem cell banking is called as biological health insurance in local as well as global perspective. Stem cell banking is a Rs100 crore business in India and at an annual growth of over 35%, it is expected to touch Rs140 crore by 2010. With approximately 72000 births daily, resulting in discarding of 72000 umbilical cords a day-the storage of stem cell rich blood derived from these umbilical cords can prove to be the best possible insurance against life threatening diseases. A babys umbilical cord is a rich source of stem cells capable of regenerating hundreds of types of tissues that can help in curing some serious ailments such as leukemia, anemia, non-Hodgkins lymphoma and several other deficiencies of the immune system. The procedure to extract cord blood is quite simple that can last up to 10 minutes and involves collection of cord blood from the umbilical cord after it has been clamped and cut post delivery. Cord blood is preserved in Cryo-vials and is available for use by the donor and their immediate family.

2. Survey objective
This market research was to segment the market in order to target potential customers for its products for Cryo cord and Cryo cord+.

3. Methodology
The questionnaire was administered physically as well as online in Bangalore. Total 232 respondents data across Companies, Maternity centers, Residential apartments/colony, Lamaze and Toy centers in Bangalore were collected and analyzed during the research. The questionnaire was administered in different zones of Bangalore in February 2013. To approach, we divided Bangalore into 04 zones such as North, South, East and West. Secondary research was done on in order to collect available information on internet or published literatures related to all the variables were considered. Primary research was conducted to collect relevant data from the respondents by administering questionnaire using physical as well as electronic medium.

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

Market Research Report

Cryosave

March 2013

4. Report:
This report presents the survey results through: - Pie Charts: The primary as well as secondary data collected during the research are presented as Pie charts in the report. Cross tabulation: the correlations between two variables were analysed on the primary data collected in the research report.

The different variables considered during the study were: Socio Economical status. Awareness about stem cell banking and stem cell research. Awareness about the product Preferred way of communication Willingness to avail the product. Awareness about the competitor.

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

Market Research Report

Cryosave

March 2013

5. Bangalore: Information Technology Hub of India

The above shown is map of Bangalore in which the areas encircled with red colour are the potential area which have potential customer base for Cryosave. The cities encircled in red colour as shown above are considered or selected on the basis of data available after the secondary research and proved by primary research.

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

Market Research Report

Cryosave

March 2013

5.1 South Bangalore: Secondary Research Target areas in South Bangalore: Jayanagar: The solidly middle to upper middle class suburb. A majority of the city's billionaires call this South Bangalore patch of land, home. The Jayanagar billionaire brigade includes : o Infosys co-founder and chairman emeritus N R Narayana Murthy, and two other co-founders K Dinesh and SD Shibulal, GM Rao, chairman, GMR Group, Wipro's Azim Premji lives inside the Wipro Campus at Sarjapur. o Former Infosys CEO and UIDAI chairman Nandan Nilekani stays in Koramangala, Wipro CFO Suresh Senapathy, Infosys vice-chairman Kris Gopalakrishnan ,Vijay Mallya's ancestral home, currently being redeveloped in to a swanky White House in the sky, is located on Vittal Mallya Road. Industrialists operating in Kanakpura Road, Jigani and Bomasandra; senior IT/ITeS professionals; and doctors and chartered accountants working in the CBD as well as in Bangalore South.

Koramangala: One of the largest and a highly sought after residential locality with its wide tree-lined boulevards with a mix of luxury apartments, commercial structures and posh bungalows. Infosys, Wipro, NDS, Siemens VDO, Microland, ThoughtWorks, Zenith Software, Tally Solutions Pvt. Ltd, Methode electronics India Pvt. Ltd., Texas Instruments, Robert Bosch, Mindtree, Lucent Technologies, Toshiba Embedded Software India (TESI), Tavant Technologies, Ciber, and the Indian e-commerce firm Flipkart. J P Nagar: Home to many prominent singers, actors and artists. Well known residents of this locality include Kannada actor and politician Ambareesh, playwright and actor Girish Karnad, former Karnataka Chief Minister H.D. Kumaraswamy, former Indian cricketer Javagal Srinath, actor Sudeep and actress Tara.

5.2 North Bangalore: Secondary Research North Bangalore is fast becoming a bustling business corridor dotted with office and retail spaces. Once seen as a pre-eminent centre for research and industrial activity, it has transformed into a knowledge hub and is home to several Fortune 500 companies.

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

Market Research Report

Cryosave

March 2013

Ever since the Bengaluru International Airport (BIA) work began, companies have been migrating in that direction. Rentals were also then moderate compared to the traditional IT hubs in the south and east.

Prominent area:
RT Nagar - Hebbal : o Stretch is fast emerging as a premium residential hub. o Companies like IBM, Target and Cognizant have large operations in the tech park. The park hosts 70,000 IT employees now and this number is expected to go upto 1.20 lakhs. o Puravankara has 2000 units and 70 limited edition apartments coming up in RMV II stage priced at Rs 1.47 crore onwards. o Sobha Developers has launched a Mediterranean-themed township, Sobha City, on Thanisandra Main Road near Hebbal.

5.3 East Bangalore: Secondary Research

Well renowned business houses and industries like Wipro, Hinduatan Lever Research Center, Padmini Industries, Container corporation of India, Bol Refrigeration, IFB Industries, Jaico Automobile Engineering, United Telecom and Vishakhapatnam Steel Plant dot this region. It's because of this reason, eastern Bangalore is growing as a business center in Bangalore.

Prominent areas:
Indira Nagar : A cosmopolitan locality with people from all parts of India living in harmony with each other. Indira Nagar is an important residential and commercial hub of Bangalore. Indira Nagar is one of the most expensive localities in Bangalore Whitefield: Major hub for the Indian technology industry. EPIP zone has offices of other IT and R&D giants. International Tech Park, Bangalore (ITPB) which houses offices of many IT and ITES companies. Shopping malls like Forum Value Mall, Phoenix Market City, Park square mall and In orbit Mall resides in Whitefield area.

5.4 West Bangalore: Secondary research

Western part of Bangalore is primarily an industrial area with a few residential colonies. This region is housing several important industries of Bangalore. Premier Engineering Group, Surya Electro Controls, Selvas Industrial Estate and Galaxy. Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71
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Cryosave

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This area has a mixed land usage with industries and residential areas set together. Prominent area of West Bangalore : Malleshwaram: Characterized by mixed demographics, sustaining a substantial middle class, upper middle class, and elite residential areas. The middle and lower class populations live to the east of Malleshwaram. The elite residential areas are on the west. is an industrial-cum-residential area Pie Chart: Distribution of IT Companies and Maternity centres across Bangalore.

Number of IT company
21 19 24 36 South Bangalore North Bangalore East Bangalore West bangalore

Figure 1: IT Companies distribution (%)

Number of Maternity Hospitals

20 17 23 40 South Bangalore North Bangalore East Bangalore West bangalore

Figure 2: Maternity centres distribution(%)

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

Market Research Report

Cryosave

March 2013

5.5 Primary Research: Cross tabulation results A) Companies : Zone Vs. Socio-economic class
Socio-Economic Class Analyst Area sales manager Asst Mgr Bank Business Analyst CEO HR professional HR team IT Logistic designer Manager Manager HR petroleum eng Research Sales manger Sales team Senior consultant Senior software engineer software engineer Tech lead Tech Support Technical Analyst Technical Consultant Technology Consultant Grand Total East Bangalore 0.00% 100.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 28.57% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 11.11% 0.00% 0.00% 0.00% 0.00% 0.00% 14.29% North Bangalore 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 25.00% 0.00% 0.00% 100.00% 0.00% 50.00% 0.00% 100.00% 11.11% 0.00% 0.00% 0.00% 0.00% 0.00% 14.29% South Bangalore 100.00% 0.00% 0.00% 100.00% 0.00% 0.00% 100.00% 100.00% 14.29% 0.00% 0.00% 0.00% 100.00% 0.00% 100.00% 0.00% 100.00% 0.00% 77.78% 100.00% 100.00% 100.00% 100.00% 100.00% 46.94% West Bangalore 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 57.14% 0.00% 75.00% 100.00% 0.00% 0.00% 0.00% 50.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 24.49% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Inference: As per data from respondent, South Bangalore (46.94%) leads other zone in terms of socio-economic conditions. B) Companies : Zone Vs. ANC Sessions
Row Labels East Bangalore North Bangalore South Bangalore West Bangalore Grand Total No 0.00% 0.00% 43.48% 0.00% 20.41% Yes 100.00% 100.00% 56.52% 100.00% 79.59% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00%

Inference: Companies across Bangalore are interested (79.59%) in organizing Antenatal sessions.

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

Market Research Report

Cryosave

March 2013

C) Companies : Zone Vs. Awareness for Cryosave

Part of Bangalore East Bangalore North Bangalore South Bangalore West Bangalore Grand Total NO 100.00% 100.00% 95.65% 100.00% 97.96% Yes 0.00% 0.00% 4.35% 0.00% 2.04% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00%

Inference: There is lack of awareness in employees working in different parts of Bangalore. About 97.96 % of respondents were unaware of Cryosave. South Bangalore has the highest level of awareness in Bangalore. D) Companies : Zone Vs. Willingness to buy the product
Part of Bangalore East Bangalore North Bangalore South Bangalore West Bangalore Grand Total Cant say 71.43% 71.43% 30.43% 0.00% 34.69% May be 28.57% 28.57% 30.43% 41.67% 32.65% No 0.00% 0.00% 34.78% 58.33% 30.61% Yes 0.00% 0.00% 4.35% 0.00% 2.04% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00%

Inference: Employees working in companies showed various degrees of willingness to buy the product. 2.04% of employees showed willingness. South Bangalore respondents showed most positive willingness to buy the product. E) Companies: Zone Vs. Medium of updates
Part of Bangalore East Bangalore North Bangalore South Bangalore West Bangalore Grand Total Internet 57.14% 14.29% 82.61% 75.00% 67.35% Newspaper 0.00% 14.29% 4.35% 16.67% 8.16% Television 42.86% 71.43% 13.04% 8.33% 24.49% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00%

Infrence : 67.35 % respondents choose Internet as the preferred way of communication. Internet is the most preferred way in South Bangalore (82.61%) followed by West Bangalore.

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

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Cryosave

March 2013

F) Maternity centre: Zone Vs. Awareness for Cryosave

Part of Bangalore East Bangalore North Bangalore South Bangalore West Bangalore Grand Total No 33.33% 66.67% 40.00% 60.00% 45.71% YES 66.67% 33.33% 60.00% 40.00% 54.29% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00%

Inference: 54.29 % respondents of maternity centres were aware of Cryosave. East Bangalore (66.67%) is leading followed by South Bangalore (60%).

G) Maternity centre: Zone Vs. ANC sessions

Row Labels East Bangalore North Bangalore South Bangalore West Bangalore Grand Total NO 0.00% 16.67% 0.00% 0.00% 2.86% YES 100.00% 83.33% 100.00% 100.00% 97.14% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00%

Inference: 97.14% of the respondents of maternity centres are fine with organizing ANC sessions. North Bangalore maternity centres show little resistance (16.67%).

H) Maternity centre : Zone Vs. preferred medium of Updating

Row Labels East Bangalore North Bangalore South Bangalore West Bangalore Grand Total Internet 33.33% 66.67% 37.50% 60.00% 46.43% Magazine 22.22% 0.00% 62.50% 40.00% 32.14% Newspaper 44.44% 33.33% 0.00% 0.00% 21.43% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00%

Inference: Internet (46.43%) is the preferred medium of updating followed by Magazines (32.14%) amongst maternity centres across Bangalore.

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

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Market Research Report

Cryosave

March 2013

I) Residential apartments : Zone Vs. Awareness for Stem cell banking

Row Labels East North South West Grand Total No 90.91% 100.00% 30.77% 100.00% 70.31% Yes 9.09% 0.00% 69.23% 0.00% 29.69% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00%

Inference: 70.31% of respondents from residential apartments were not aware of stem cell banking. South Bangalore (69.23%) respondents were aware of stem cell banking.

J) Residential apartments : Zone Vs. Preferred updates

Row Labels East North South West Grand Total Internet 72.73% 50.00% 42.86% 81.82% 58.49% Magazine 18.18% 40.00% 19.05% 18.18% 22.64% Newpaper 9.09% 10.00% 23.81% 0.00% 13.21% Television 0.00% 0.00% 14.29% 0.00% 5.66% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00%

Inference: Internet (58.49%) remains the most preferred way of communication followed by Magazine (22.64%) across the residential apartments across Bangalore.

K) Residential apartments : Zone Vs. Awareness about Cryosave

Row Labels East North South West Grand Total No 90.91% 100.00% 91.67% 100.00% 96.00% Yes 9.09% 0.00% 8.33% 0.00% 4.00% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00%

Inference: 96% respondents from residential apartments are not aware about Cryosave. East Bangalore (9.09%) of respondents followed by South Bangalore (8.33%) were aware about Cryosave.

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

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Market Research Report

Cryosave

March 2013

L) Residential apartments : Zone Vs. Willingness

Row Labels East North South West Grand Total Cant say 0.00% 31.25% 46.15% 45.45% 34.38% May be 36.36% 43.75% 15.38% 54.55% 32.81% No 36.36% 25.00% 34.62% 0.00% 26.56% Yes 27.27% 0.00% 3.85% 0.00% 6.25% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00%

M) Lamaze class: Zone Vs. Preferred updates

Row Labels East Bangalore North Bangalore South Bangalore Grand Total Internet 75.00% 100.00% 75.00% 76.47% Magazine 25.00% 0.00% 16.67% 17.65% Newspaper 0.00% 0.00% 8.33% 5.88% Grand Total 100.00% 100.00% 100.00% 100.00%

Inference: Lamaze classes respondents across Bangalore preferred Internet (76.47%) as their preferred medium for updates. North Bangalore (100%) is leading followed by South and East Bangalore. N) Lamaze class: Zone Vs. Awareness for Cryosave
Row Labels East Bangalore North Bangalore South Bangalore Grand Total No 75.00% 100.00% 50.00% 58.82% Yes 25.00% 0.00% 50.00% 41.18% Grand Total 100.00% 100.00% 100.00% 100.00%

Inference: 58.82 % respondents from Lamaze classes in Bangalore are not aware of Cryosave. 50% of respondents of Lamaze classes from South Bangalore are aware of Cryosave followed by East Bangalore (25%).

O) Toy Store: Zone Vs. Buying Pattern

Row Labels East Bangalore North Bangalore South Bangalore West Bangalore Grand Total Price 40.00% 40.00% 0.00% 66.67% 22.22% Price and Quality 0.00% 0.00% 45.00% 0.00% 25.00% Quality 60.00% 60.00% 55.00% 33.33% 52.78% Grand Total 100.00% 100.00% 100.00% 100.00% 100.00%

Inference: 52.78% respondents from Toy Store across Bangalore prefer Quality in their buying pattern which shows that Quality remains the most preferred choice when it comes to new born babies.

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

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Market Research Report

Cryosave

March 2013

6. Conclusion :
From the data obtained through primary as well as secondary research, it can be concluded that the southern part of Bangalore is populated by people who are educated, working in industry and own luxury residential appartment in South Bangalore. They have enough PDI (personal disposable income). South Bangalore also has more number of maternity center, Lamaze, IT companies as well as toy store when compared to other parts of Bangalore. So, it is advisable to market the product in the southern part of the Bangalore.

7. Suggestions :
7.1 Product price customization : Option 1 : Plan a different payment slab for the customers who store their stem cells for long term (greater than 20 years). Option 2 : For initial deposit of stem cell banking, charge a reasonable amount and then a minimal fee for renewal. 7.2 Social Media : Active presence on Facebook, Twitter, Linkedin and Youtube. Customer engagement can be done by organizing discussion forums as well regular updates in terms of recent updates in terms of technology, process as well as offers. 7.3 Remarketing : Remarketing can be employed effectively inorder to attract more customers online. 7.4 Print Media : Advertisements in Newspaper like Times of India (Sunday edition) and advertisements in magazine like Womens Health, Femina India etc. 7.5 Awareness programs : Organizing awareness campaign (Medical Camp, Health Marathon), Air ballon and Road show. 7.6 CSR activities : Performing Corporate Social Responsibility shall help to increase the visibility of Cryosave and creating awareness and making its presence felt in the minds of corporates as well as people. 7.7 Business to Business or exclusive tie up with leading hospitals such as Fortis, Apollo etc. : Tie up with leading corporate hospitals shall help in getting volumes of sales. 7.8 Local celebrity endorsement shall help to increasing the product visibility.

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

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Market Research Report

Cryosave

March 2013

8 References :
Stem Cell Global Foundation (2009). Stem cell banking, a Rs 100-crore business in India. [Online] Available: http://www.ptinews.com/news/377548_Stem-cell-banking-a- Rs-100-crore-business-in-India. International Journal of Management and Business Studies Vol. 1, Issue 1, March 2011. Tissue Engineering & Stem Cell Technology Report (2007). [Online] Available: http://www.bharatbook.com/Market-Research-Reports/Tissue-Engineering-Stem-CellTechnology-Report.html.

Marketing Research by Naresh .K. Malhotra www.wikipedia.com

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

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Market Research Report

Cryosave

March 2013

9 Appendices :
Different Pie charts during the primary research.

Awareness Awareness for cryosave in comapnies for Cryosave

No 53%

Yes 47%

Figure 3:Awareness of Cryosave in companies (%)

Awareness for stem cell banking in companies

No 30% Yes 70%

Figure 4: Awareness for stem cell banking in companies

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

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Market Research Report

Cryosave Part of Bangalore

March 2013

Maternity centre in parts of Bangalore

North Bangalore 18% West Bangalore 15% East Bangalore 26%

South Bangalore 41%

Figure 5: Density of maternity centres in Bangalore

Majority Customers from which part of Bangalore

south bangalore north bangalore east bangalore west bangalore

14% 16% 57% 13%

Figure 6: Majority potential customers from which part of Bangalore

- : End of document :-

Cryo-Save (India) Private Limited, Unit No 502, 5th Floor, Reliaable Phoenix Tower No 16 & 16/1, Museum Road, Bangalore 560 001 Office: +91 80 4123 6670 / 71

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