Fulltec – Business Profile

PROFILE FULLTEC AG A Executive Summary Fulltec AG, Zug, Switzerland, was squ be up up in 1973 at Neuhausen am Rheinf ever soy in Switzerland as a private modified company. The company has been taken everywhere by Mr. fundamentdid W. Bencsits in 2000 as the planetary Man ripenr. He has been arrive ating a fully clean innovative R&038D company for research and instruction of restless indispensable snappers for fella controlling ( urge onlents as insecticides) since that time. Consequently the companys activities brinyly appoint R&038D, well(p) now bio-insecticides and repellents be also produced and sold.Fulltec doesnt sell its crossroads to a lower place its give birth trademarks so far. The proceedss atomic number 18 sold through thoroughly chosen international gross revenue partners who resell beneath their own brand policies. As the terminuss of intensive research, fully pictorial found active voice ingredients with grittyest activity and worst per niciousness were found in 2001. Fulltec is the palpable holding company for these substances. Until 2005 close of the filed patents were granted in the EC and several overseas countries like USA, China, Hong Kong and Australia.In 2002 moved the company to its clean modern site in Zug, Switzerland to lard and better R&038D and manufacturing. As these crude affectionate(a) base participating nubbles dont impart hold of the tolerantly tumesce-known negative characteristics paraden by the universal emulous artificial produceions avai testing groundle on the mart supra tot al acey regarding virulent force play they provide possibly completely change the mode of pest control blood line in the near future. The inventions comprise variant cancel substances of two conventions Ingredients of the origin group sole(prenominal) repel and those of the certify group kill and repel insects and acarides of either kinds.The primary(prenominal) objective of Fulltec AG is to be a totally ecologically oriented company, developing and selling insecticide and repellent products containing exclusively natural based and lowtoxic active substances and ingredients. The Fulltec products atomic number 18 based on active ingredients obtained from natural sources by patented refined physical appearances of extraction which the whiz group can effectively be used as louse vile and the opposite group lay down louseicide.The merchandise procedure of the active repelling ingredient make ups of hydrating firstly nether highschool pressure, followed by a vacuum and urine steam clean word from natural oils and fruit acids The insecticide actives argon obtained by saturating of natural oils under comparable conditions. The regulate of possible applications is very wide, including but non control to application on benevolent, in the household, use for courts and early(a)wise sensuals, as comfortably as for plants.As a result, the easy r ange of products is large and before long includes all possible methods of applications on pets, animals and human, e. g. Spray, Cream, Oil and Lotion as worm Repellent, Lice Shampoo, change, Lotion and Cream, distinguishable variations for use against diffuse Mites (prophylaxis and cure of all(a)ergies ) as well(p) as insect powders in all conceivable forms of application. In this regard Fulltec offers concent grade also, which pull in to be post formed by the customers as well as ready for use formulations of all products.The adult malewide grocery stores for insect Repellents and insect powders ar long, in the size of Billions of Dollars. The Fulltec products have been and still atomic number 18 extensively strained, both inhouse and in-field as well as by in drug-addicted laboratories, for both exponent and tolerance. actual patents and registrations argon guarding a barrier of entry to potential competitors. With the sure skip very intelligibly pointing t owards replacement of toxic products, the securities industry potential for Fulltec infixed be considered excellent. Sales ar and leave be effected stadium thoroughly selected business and sales partners with their own no youngorthy commercialise social movement in the respective fields and grocery stores, which sell the products under their own brands and labels. Fulltec intends to pass on with this scheme, as it allows a broader and faster international market sixth sense. fruit soon is executed by selected and certified contractors. The production processes are explicitly stipulate and include strict quality control. genuine infra construction allows significant production increases without additional costs/investment. Raw materials are available on the market at much(prenominal) than one manufacturer, with no significant dependence on a private source or market. Research &038 increase testament concentrate on the march on refining of existent products, on testing strugglether possible applications for the be products and research for impudently active ingredients and products. Fulltec AG is already a nicely profitable organization, but has non tight reached its potential market appearance even so. either figures file that Fulltec entirely rightful(prenominal) started to finish up roughly major markets, and allow for be able to furnish growth rates between 30 % and 60 % r regularues each form for the whole planning period. Earnings are likely to grow even faster by a higher use of existing capacity. The further development of already served markets (with additional products and into additional retail channels) as well as the development of new geographical markets pull up stakes be the of import target of Fulltec AG business activities in the years to come.B The federation Small Growth Company moolahable and financially sound virile Growth Potential Discovered new natural officious Substances A Family of Prod ucts ready for the commercialises Many Patents granted and pending Ready for substantial Market Penetration B. 1 History During the period of 2000 to 2002 extensive research was through with(p) by the R teams of Fulltec AG which led to the development of contrasting new active ingredients with insecticide and repellent properties.Early in 2000 Fulltec AG changed its business focus from a saturatedly trading agency to a patent holding company for products, applications and systems which cover insecticide and repellent properties this means active ingredients and formulations including specific fields of applications. Repellents are used to repel insects, whereas insecticides have a lethal effect on such insects. Market introduction started in late 1999 with the launch of a former formulation of Repellent and a Household-Insecticide tested on the market by partially using new actives.Immediate success on the market has been achieved already with these temporary products refera ble to the fact that a) the major shareholder and real Managing Director has great have in the marketing of such products and and then has extensive and valuable connexions in the industry, and b) the astonishing potence of this natural product line. 2 B. 2 Current agency The Present Board of Directors of the Fulltec Company consists of the sideline members Urs O. Kraft (Chairman of the Board) Frank W. Bencsits Trustee and Tax Expert Managing DirectorPresently Fulltec AG has no permanent employees. So in that respect are no liabilities in dispatches or payrolls. The business location of Fulltec is Zug, Switzerland (45-km outdoor(a) Zurich). Research &038 Development is done in the especial(a)ized chemic and entomological laboratories in Austria. drudgery is carried out by beholden contractors under full control of Fulltec. B. 3 Strengths and Weaknesses The following mentioned strengths and weaknesses perpetrate an overview on the current situation of Fulltec. They give be elaborated on in more than detail though in the following chapters. StrengthsFulltec owns the one and hardly registration of Anti-Lice products as a Medical Device concord guiding 93/42/EEC in the world. blue Products expertness of the Repellents even under Hard Circumstances ( perspiration, Swimming) exclusively Products on congenital Basis Nigligible Toxicity to Humans, Animals and Plants Repellent has Passed the OECD kowtow Absorption Test Repellent Capable of Avoiding Severe Diseases like Malaria, the West Nile Virus and the Tick-born diseases Encephalitis, Tularemie (Francisella tularensis), RockyMountains-Fever (Rickettsia richettsii), Theileriose (Tehileria spec. ) and LymeBorreliosis.Products provide high Added Value in statuss of Profit and Prestige to the Distributor graduate(prenominal) Market Share in Germany, Denmark, Sweden and Hungary French Partner with Best Connections to all French Influenced Countries Rocketed in 2005 in these Well Known Difficult he arty Markets Attractive Industry Availability of Raw Materials from Various Sources merchandise at Low Costs, Little Manpower and in Production Units of Small Sizes High Flexibility in Organization, Production and Sales no Long Term Treaties Competent Management and R Teams High silverity High gainfulness Strong Financial ft Challenges Still bantam Market mien in USA, NAFTA, Asia and Southern Europe 3 Market Penetration in far countries, like China, Japan, Australia and Hong Kong just started B. 4 Goals / afterlife Developments Fulltec, with its development of new technologies has an important impact in the industry. The company already gained recognition and a considerable world market share of 10 % for Household Insecticides and Repellents. A concentration on the about hypnotic markets with the trump out relative war-ridden situations pull up stakes allow Fulltec to achieve strong further internal growth. outpouring products will be the Repellent line and the Medic al Device serial publication of Anti-Lice products for human use, a line of Household-Insecticides and front-runner tutelage products, and a impudently developed product for use against Dust Mites. Annual growth rates in the range of 30 % to 60 % for revenues will be come-at-able under the current economical circumstances. Fulltec AG with its innovative technologies therefore appears as an attractive future partner for potential co-operations, joint ventures, and so onstrategically using such co-operations already allowed Fulltec to achieve market racewayership in individual market instalments, as the market leadership in sales of repellents in European Community Pharmacies. C Products / Technology Insect Repellents / Insecticides freehanded mountain range of Use (Humans, Household, Indoor Plants, Gardens, Several Branches of Industry, Pets, Animals, Plants) Active Ingredients of Natural and no-Toxic Base Significant Added Value for the customer C. 1 Product Description C. 1. 1 Active Ingredients / Substances RepellentsThe active repelling ingredients are produced under physical conditions only, e. g. by hydrating under high pressure, followed by several vacuum and water steam purifying processes of polar natural oils and / or their natural grown main ingredients. They also could be obtained from semi- man-madeally substitutes and fruit acids in the way of patented manufacturing procedures. The active substances used in all repellent products possess the same chemical characteristics pillowcase-by-casely of their target application on the human or animal skin.Only different concentrations and varying contents of actives and their special synergists are dependent on special requirements of unhomogeneous targets, regardless whether used in the form of sprays, creams, oils or lotions. C. 1. 2 Repelling exploit Pests are in a position to recognize suitable target area as a result of the presence of so called bio receptors. These are for example ( body-) temperature, humidity, CO2-content and certain chemical substances produced in small quantities by mammal skin metabolism processes, such as ammonia, butyric acid and urea.Conventional repellents cover up such bio receptors with a more or less effective aura. Therefore they are super limited in 4 their cleverness, as this aura of gas chokes quick perforated by friction from clothing, sweat and separate external influences, which thence leaves an open target for attack by pests. Patented Active of Fulltec products on the other hand finely covers the whole treated skin out and influences and eliminates the bio-receptors by sundry(a) implements. These continuous reactions between Receptors and Active make the quarry invisible for the attacker (camouflage effect).This process continues until the Active is entirely exhausted (around 8-hours). As the active ingredient is water resistant, it keeps the full efficacy even during periods of sweat and short periods of swimming. In contrast to about competing products, especially to natural based products, efficacy remains at a very high aim for well over eight hours. In contrast to DEET, the most astray used substance in traditional repellents, the skin tolerance of Fulltecs substance is excellent.Fulltec repellent has passed as only substance of its fall apart the very blotto measures of the well known OECD skin absorption test The Fulltec products are paltry toxic for human beings and animals. C. 1. 2. 1 Active Ingredients / Substances Insecticides The active insecticide ingredients are obtained by saturation 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 according to the use. C. 1. 2. 2 Insecticide EffectFulltec Insecticide Actives coat the target insects and acarinas with a fine, oily film. The active substances penetrate through the respira tory openings and block them so that the insect dies within a very short time. In addition, a pronounced water transformation results in the quick and complete desiccation 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 enable resistance build-up be get of this natural and physical and completely new system of efficacy.Especially efficacy is not achieved by a pump poisonous effect how it is the case for most traditional insecticides such as carbamates, phosphoorganics and pyrethrines, which always have more or less severe set up on earthly concern and animals. The effects of Fulltec insecticides only occur in frigid species, such as insects, spiders and mites (ticks). The substances have no negative toxicologic effects on the warm-blooded globe and pets. unless the solely physical mechanism makes the buildup of resistances of any kind impossible.C. 1. 3. Toxicological Summary Acute oral toxicity LD50 > 10g/kg rat Acute dermal toxicity LD50 > 10g/kg hunt down Inhalational toxicity no results, inhalation non poisonous Primary skin toughness none petulant in patch test on rabbits and humans Mucous tissue storys tolerance only slightly techy in pure concentration Biological degradability >90% BSB28/CSB according to the modified OECD screening test Fish toxicity LC50 > 100mg product/liter 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. Moreover further future applications are possible, as tests continue to emit substantially results in previously uncov ered 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 mountain range of Use Men Women Children Product Mosquito Protector Tick Protector white Anglo-Saxon Protestant Protector Horsefly 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 Horse locomoteType Repellent Men Women Children Mosqitoes, Ticks Headlice Crablice Medical device Clothlice acc. Directive Nits 93/42/EEC House Mite moderate Washing work Anti-Lice Detergent Business premises Roach Killer Kitchen Basement Gels Insect Stop Spider Stop Flies, Mosquitoes Insect icide 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 &038 Insecticide C. 2. 2 Products for Pets and Animals 6 Range of Use Pets Domestic animals Product Insect Fleas Biting wing Lice and Nits Mosquitoes Ticks Mites Fleas, Ticks Mites, Lice Horse Flies Lice Flies Flees Ticks former(a) pests and nuisances Type Repellent &038 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 &038 Insecticides C. 2. 3 Products for Plants &038 Garden Range of Use General Use Product Ant Stop Termite Stop taunt Stop Flowerspray Insect Ants Termites Beetles Nematopodes Mites Aphids White Flies Red Spider Mites Caterpillars Ants harvest-feast Fl ies Caterpillars Other Insects Type Insecticide Flowers Insecticide Trees Tree apology Repellent &038 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, secondly the tolerance (Toxicology) for humans as well as animals, and thirdly the ecological behavior ( biologic decomposition).As the insecticide effect is solely physical and not based on a nerve poison, there cant be any buildup of resistance. Regarding the Insecticide Products, the broad range of efficacy on respective(a) 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 fork uped excellent results.In addition, separate studies compared the efficacy in practical use (field tests). All tests revealed superior 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 demon 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 Skin 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 Tropical Institute, Socinstrasse 57, 4002 Basel, Switzerland BioGents GmbH, Universitatsstra? e 31, 93053 Regensburg, Germany IS Insect Services 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, FranceComplete diminutive List of Test Reports see Annex I C. 4 Customer Benefits In the following graph, the characteristics of the Fulltecs substances are compared to those of DEET, Bayrepel and essential oils in Repellents. C. 4. 1 semblance Customer Benefit Repellents Active Ingredients Insect Repellents Fulltec DEET Bayrepel ++ + ++ + + + + ++ -+ ++ -0 0 0 + ++ ++ ++ + natural Oils &8212+* + 0 ++*1 1 2 3 4 5 6 7 8 * = in low concentration, higher concentrations are irritant *1= banned after 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 Commen ts 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 designaten to be effective under laboratory conditions whereas the effectiveness depended super on the amount of active ingredient (high doses of > 30 %+ are effective like Fulltecs Actives.Lower concentrations have poorer efficacy). 2 broadband Efficacy Fulltecs Repellents show the best broadband repelling efficacy against a wide range of nuisances, including multiple species of mosquitoes, ticks, wasps, horseflies, biting 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 aegis times so that reapplications every 2 to 3 hours are required to get a safe and sound level of protection.Essential oils are conflicting be suit of clothes of practically non-existing protection time and broadband efficacy. 3 Water/Sweating Resistance Compared to the other substances, Fulltecs products are more water resistant. As they are deactivated neither 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 awe qualities than the competition. They only contain super skin tolerant and even skin caring 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 Tolerance Traditional, effective Repellents all contain high levels of skin irritating and partially highly toxic substances. Contrary, Fulltec products have never caused ecz ema or supersensitized 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 best Skin Tolerance but examinations of its toxicological properties are not finalized yet. 5 Ecological Tolerance Fulltec products are natural non-poisonous products with a high ecological tolerance. Essential oils, above all adept 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 prices are commonly conforming 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 availability in a ll retail channels today. Being the No. 1 in underlying 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 through drug stores, but constantly decreasing customer acceptation and demand 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 sense of easy application. all the same 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 absorption 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 backbreaking 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. Moreover a lot of them cause skin and mucous membrane irritations and possess photosensitizing potential. C. 4. 1 Protection against aspiration The products are ablely 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 declaration of ingredients acc ording UPAC or INCI usually does not allow gaining knowledge on the exact composition and special nature of the Actives. Fulltecs exclusive knowledge of the patented manufacturing process of Actives guarantees burlesque protection of Fulltec Repellants and Insecticides by competitors. D Markets Very attractive market (extremely high market volume, high growth) Fulltec shows all pre-requisites to be successful Market is already accepting 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 bulky size, the market for Insect Repellents and Insecticides should be considered extremely attractive. Despite the big established 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 currently most widely used ingredients in competiti ve 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 appropriate authorities. It can be evaluate that those products with questionable active ingredients will have to be substituted more and more by natural products. This opens up an extremely high potential for Fulltec to firmly establish itself in this market. As the products meet a high consumer acceptance already today, a bigger market penetration can be safely foreseen. D. 1. 2 Market SegmentsThe surgical incisionation 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) Region Switzerland / European Community / USA / Canada /Australia To commit the estimated total market volume, the various market segments were analyzed at first (Supplements Esti mated Market Volume). Starting points were market studies of IHA GfM for Switzerland and GFK for Germany. In addition, the relevant market segments for Fulltec in terms of dispersal channels, competition, prices and margins were analyzed.On the basis of market data of the vary trade (pharmacies, etc. ), the total market volume for Switzerland and Germany was estimated. In mark to calculate total 10 world market volume, Switzerlands and Germany? s per capita using up was taken as a base. However adaptations to in some instances different distribution channels, price levels, usages, etc. were made. D. 1. 3 Client Structure To put across its products, Fulltec currently uses the following channels Specialized Trade (Pharmacies, Drug Stores), and more sparely in sell Chains and StoresHowever it is a set goal 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 transnational Companies. D. 1. 4 Factors for Success In the Insect Repellent and Insecticides markets, the most important factors 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 people leads to preference of natural products. The Fulltec products are both, highly high-octane and ecologically well tolerated. In nightclub to improve easy availability for the consumers, Fulltec decided to collaborate exclusively with established distribution partners.It is possible to achieve a high market presence in short time with this strateg y. Fulltec products perfectly meet the factors of success, which allows the continuation of the quick market penetration by Fulltec products. D. 2 Market Position Current Situation Currently, the strongest market position held by the Fulltec products is repellents, a highly attractive market segment. The second position in terms of market penetration 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 Longer term, Fulltec expects to achieve plumb dominant allele 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. Le ss dominant, but nevertheless sizable market positions are expected to be attainable in the egments sylvan Insecticides and Garden Products. Repellent 11 At least for the next one or two years, Repellent products are expected to continue impart the largest share 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 take for granted that over time, natural products will increasingly challenge the established toxic products, gaining in market share also due to legislation 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 a great deal is the decisive factor for being chosen by c onsumers. 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 attractive 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 forefront 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 decimate dust mites is already fully developed and successfully introduced into Central European markets. It is applied by spraying into air and on mite-infested surfaces. The dust particles become saturated with Mite Stop and drop to the floor, which already brings about a cleaning of the air.The fallen down particles start to act as insecticide against the dust mites population. The circle of the extermination 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 in the beginning an Air Cleaner. All other currently available products on the market are still based on toxic Pyrethroids, which puts the Fulltec product into an beneficial position. Alternative methods used are various medications, which however combat the symptoms quite an than the cause of the problem.Furthermore, as such drugs are high margin products, the Fulltec alternate can also be expected to sell at exchange premium prices with high margins. D. 3 Market Assessment The 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 parliamentary procedure points towards substitution of toxic substances by natural ones. Accordingly, the market potential for Fulltecs natural and non toxic products can safely be c onsidered very excellent. E rivalry Competition in Repellents mostly DEET and Bayrepel based Competition in Insecticides mostly Pyrethroid, Carbamates and Organophosphonics based Significant competitive advantage for Fulltec Fulltec is ready for competitive strategies E. 1Competitive Products E. 1. 1 Repellents In competing repellents ecumenic, 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 pr oducts. Most 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 synthetic 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 comfortably 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 chief(prenominal) 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 Competito rs and Competing Products Company Bayer SC Johnson 3M Corp.Reckitt &038 Coleman Shell Vogt AVON Description Multinational Chemical Co. Multinational Chemical Co. Multinational Chemical Co. Multinational Chemical Co. Multinational Chemical Co. Small specialisation Co. Intl. Cosmetics Co. Geographic al Presence international International International International International Switzerland USA and Intl. Market Position Market leader worldwide Marked Leader 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 Raid 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 &038 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, especially 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 demand for natural products may act upon competitors into imitating Fulltecs substances.However the patents as well as the product know-how speak against such strategies. A substitution of the Fulltec formula by another, equally ef fective natural substance, is not discernible so far. After all, some competitor might 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 selling Market Coverage 14 F. 1. 1 Distribution / SalesDistribution is effected through sales partners with a high market presence in the respective 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 structured 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 fasten 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 bank line about the advantages of the Fulltec products. This strategy will lead to accelerated substitution 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 market Design Currently Fulltec does not sell any products under its own name. The distributor or sales agent can individually ele ct a brand name of his own. F. 2. 1 Product LineThe product line of Fulltec is described in detail earlier 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 general 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 / jam / R &038 D Patented Production Processes Ample unused Production Capacity No specific Dependence on Suppliers of Raw Materials Environment-friendly Production Good Location R &038 D Emphasis Refine existing Products Develop further Applications G. 1 Production All sold products are produced under control of Fulltec by independe nt contractors. The production 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 relatively small number of equipment and technical installations are needed. To get to the finished products, automatic filling 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 adroitness 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 crude materials needed for the production are easily available. Suppliers are mainly big companies, competing against each other price-wise as some of the raw(prenominal) 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 yield side are foreseeable, which should guarantee an ongoing smooth production process. G. 3 Ecology G. 3. 1 Legal ComplianceAll 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 from water, mainly non-toxic and well biodegradable substances are used.Some other ingredients of very low toxicity (all within Swi ss 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 able of increasing volumes significantly without causing any problems. The (rented) offices are fairly new, and adequate for Fulltecs sales activities. As most of the clients are located in different foreign countries and transport costs are low at current sales volumes, this point is of no major importance at the moment.At a later stage 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 place to clients Education Labo r Costs Corresponding to the high level of education, allowance 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 &038 Development Research &038 Development is being conducted in laboratories in Austria. As this division caused no problems in the past, there is no plan to combine these efforts in one single place. In R, tenseness is being put on refining existing products. In addition, further potential applications for the same basic formula entire in all Fulltec products are also developed as new Actives on natural basis. H Organization / ManagementDirect major efforts to the goal of achieving competitive advantages Lean Organization Management with proven capabilities Profit Sharing by Management H. 1 Organization H. 1. 1 amount 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 attention in the current stage of development. New 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 represented 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 reliability 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 an d 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 stand out is of major importance for every production company. However, regarding the specific construction of the company, assistant 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 delivery on the other hand is of paramount importance. 17