Date post: | 07-Nov-2014 |
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Health & Medicine |
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Bumrungrad International HospitalJoint Replacement Center
Faiz AzharKevin Clark
Ashley HenryCecily Quintana Spring Wedlund
+Agenda
Company Overview
Product/Service Assessment
Market Analysis
Competitor Analysis
Net Assessment
Marketing Strategy
Implementation
Conclusions
+ Company Overview:Who We Are
Bumrungrad International Hospital (BIH)
Founded in 1980, located in Bangkok, Thailand Positioned as one of the premier destinations for
medical tourism in the world Bumrungrad serves over a million patients annually.
Over 400,000 are internationals 30 Specialty Centers Staff speaks over 14 languages
BIH Joint Replacement Center Established in 2012 Specializes in Knee and Hip Replacement Cooperates academically with the Dorr
Arthritis Institute Cooperate academically with Dr. Lawrence D.
Dorr, an expert of joint replacement surgery and the developer of robotic arm assisted surgery
+THE BIG IDEA
“We Invite the World To Bumrungrad”
RELAX, RENEW, REVITALIZE
+ Recovery in 5 Star Accommodations
Luxury interiors
Separate living room and patient room
Two large Flat Screen TVs
Private marble bathroom with shower
Two marble bathrooms with showers
Granite kitchenette with dining table
Refrigerator and Microwave oven
Dishware and glasses
In-room personal safe
cordless phones
60-68 square meters
Free Wi-Fi
$595 US a night
+Uniquely Thai Hospitality
Hospital Concierge: 7 doctors and 12 nurses coordinate scheduling of procedures, attendant family questions during treatment, and follow-up care planning.
Culturally Sensitive: Customer Service Representatives speak English, Thai, Amharic, Arabic, Bengali, Burmese, Cambodian, Chinese, French, German, Japanese, Korean, Mongolian and Vietnamese.
Hospital Concierge: Available for any inquiries regarding Travel Services including: Hotel Reservations Air Tickets for both international and
domestic (Reconfirmation, Rerouting, Re-validation, Changing date and new ticket)
Transportation Service to Airport and other destinations required by customers
Local tour services , dinner and entertainment arrangements
+Post-Op in Paradise
+
MAKOplasty® is available for both total
hip arthroplasty & partial knee
resurfacing. MAKOplasty® is an
innovative, solution for those suffering
with debilitating pain of the knee or hip.
Powered by the surgeon-controlled
RIO® Robotic Arm Interactive
Orthopedic System and enabling
implant designs, MAKOplasty® allows
surgeons to treat patient-specific knee
& hip conditions with consistently
reproducible precision
Product/Service Assessment:Joint Replacement with
MAKOplasty®
Bumrungrad International Hospital has
agreed to cooperate academically with
Dr. Lawrence D. Dorr, an expert of joint
replacement surgery and the developer
of robotic arm assisted surgery, who
founded the Dorr Arthritis Institute in
the United States of America.
+ Product/Service Assessment:Advantages of MAKOplasty®
Patient is able to walk within 24 hours after surgery
Artificial knee and hip joints last longer than usual
Patient is able to return home more quickly and will recover at the hospital for no more than three days
Less pain when compared with traditional joint replacement methods
Less incidences of infection
Less blood loss
Smaller incision
Quicker recovery
+Product/Service Assessment:FAB Analysis
+Market Analysis:Potential Market Segments
2. Managed Care Escapees
45 + 50K+ Europe/Canada Socialized healthcare Need for joint replacement
3. Privileged Patriarchs/Matriarchs
45+
Wealthy Developing Countries Emphasis on Arab nations Need for joint replacement
1. Underinsured Boomers
45+ $50K + U.S. Underinsured Need for joint replacement
+Customer Value Drivers
+TAM/SAM
TAM BuildUp Europe/Canada US Arabic Other Market Potential
Total Buyers 453,600 375,000 90,000 150,000 1,068,600
Average Purchase Price $13,000 $18,000 $12,000 $13,000
Segment Potential $5,896,800,000 $6,750,000,000 $1,080,000,000 1,950,000,000 $15,676,800,000
% of Populatio TAM 42% 35% 9% 14% 100.00%
% of Dollar TAM 38% 43% 7% 12% 100.00%
+Three Year Market Forecast
2014 2015 2016 $-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$2,376,351
$5,987,807
$11,001,869
$2,986,673
$7,302,128
$13,018,256
$80,174 $202,018 $371,183
Bumrungrad International 3 Year Sales Forecast
Managed Care Escapees Underinsured Boomers Privileged Patriarchs
+Segment Attractiveness Analysis
+Target Market Potentials
Underinsured Boomers Weighted Average 7.05 SAM 6.8 Billion
Managed Care Escapees Weighted Average 5.83 SAM 5.9 Billion
Privileged Patriarchs/Matriarchs Weighted Average 4.08 SAM 1.95 Billion
+Competitors
HOSPITALITY
Prince Court Medical Centre in Kuala Lumpur,
Malaysia
Joint replacement surgery is less expensive in an atmosphere with similar 5 star amenities.
Recently surpassed Bumrungrad International Hospital as the #1 medical tourism destination in the world (Forbes, 2012)
JOINT REPLACEMENT
Hospital for Surgery in New York, New York
Ranked #1 Orthopedics department in the United States (US News & World Reports, 2013)
They are global first movers regarding research in joint reconstruction
+Competitive Analysis:Porter’s 5 Force Model
+
Qualit
y of
Wor
k
Tech
nolo
gy E
mpl
oyed
Facilit
y
Ease
of T
rave
l
Price
0
1.5
3
4.5
Competitve Factor Analysis
BumrugradPrince CourtHospital for Special Surgery
Competitive Factors
Rela
tive V
alu
es
Competitive Factors
WTD Average Bumrungrad 4.4Prince Court 4.3HFSS 4
Qualit
y of
Wor
k
Tech
nolo
gy E
mpl
oyed
Facilit
y
Ease
of T
rave
l
Price
0
0.4
0.8
1.2
Weighted Average Anal-ysis
BumrungradPrince CourtHospital for Special Surgery
Competitive FactorsW
eig
hte
d A
vera
ge V
alu
es
+Q: What sets Bumrungrad International Hospital Joint Replacement Center apart from the competition?
A: The Union of Western Technology and Eastern Philosophy
+SWOT
+Risk Factors
Political/Macroeconomic and natural disaster related factors
Intensified competition in premium healthcare sector
Shortage of professional staff
Legal disputes
+MOA Conclusions
Underinsured Boomers are the #1 target segment
Competition is close behind
BIHJRC has a fast mover advantage including quality services and leveraging of medical tourism
Key value drivers: low cost, exceptional value, credibility, and ability to meet customer’s unique needs
Increased health costs coupled with lack of insurance and aging population makes it a prime time to expand the market
+Marketing Strategy
Strategy Platform
Product/Service Plan
Sales & Distribution Plan
Promotion Plan
Pricing Plan
+Marketing Strategy:Marketing Objective Dashboard
+Ansoff/Growth Matrix
s4
Existing Products/Services New Products/Services
Exis
ting M
ark
ets
New
Mark
ets
• Design configurations to support new medical processes such as larger operating theatres to accommodate surgical robots
• Electronically equipped meeting rooms to allow teleconferencing between our doctors and those at other hospitals
• Hire new staff
• Target competitor’s customers
• Target patients of socialized healthcare
• Target underinsured patients• Target those without access
to quality healthcare• Target older patients
• Market BIHJRC to areas of the world such as Russia
• Target the younger, more active market in need of joint replacement
• Create partnerships with hospitals in other countries
• Build more referral offices in countries around the world
+Market Strategy Value Disciplines – Knowledge Leadership
Knowledge
Innovation
Customer IntimacyTime
Operational Excellence
0
0.5
1
Series1
+Market Strategy: Positioning Strategy
Value Proposition: Experience world-class healthcare and hospitality at an affordable price; revitalize and renew without the wait.
Positioning Objective: Fast mover advantage in:
Quality Leveraging Medical Tourism Services
Key Value drivers: Low cost, exceptional value, credibility, ability to meet customer’s unique needs
+Marketing StrategySales Objectives
Objectives: Increase to 4% market share 308% revenue increase Year One:
Revenue: $14,659,750 Surgeries performed: 916
Year Two Revenue: $24,963,012 Surgeries performed: 1576
Year Three Revenue: $36,064,385 Surgeries performed: 2300
+Market Strategy: Channel Strategy BIHJRC Distribution Channels
DIRECT INDIRECT
BIH Website Referral Offices (25)
Target Customers
+Market StrategyPromotion Objectives
Inform the target audience about BIHJRC through our chosen media vehicles
Increase awareness 40% about BIHJRC among our target audience
Persuade more people in need of joint replacement to travel overseas to Bumrungrad
Stimulate demand for Bumrungrad in the joint replacement market
Reinforce the Bumrungrad brand through the use of advertising
+Promotion Strategy
Digital Marketing Campaign Search Engine Optimization Google AdWords Digital Ad Campaign
Social Media Team
Direct Response Advertising Infomercials in the U.S. and Canada Sponsored Newspaper Columns Sponsored Magazine columns
Ads in International Papers/Magazines New York Times Sunset Magazine Departures/American Express Magazine AARP
Health Fairs
Redesign BIHJRC website
+Marketing: Pricing Strategy
Penetration Pricing
Bundling with optional
accommodations
Price sensitive target market
Many competitors/substitutes
Although prices are low, they are
within the top tier of Thai hospitals
+Implementation:
Three Year Pro Forma P & L
Total Revenue: $75, 687,146
Total Expenses: $62,298,090 Operating Costs Administrative Costs
Marketing Expense: $7,568,715
+Implementation:Year 1 Campaign Plan
% of Budget 2014 ExpenseDigital Marketing Campaign 16% 234,556 Search Engine Optimization (SEO) 3% 43,979 Google AdWords 3% 43,979 Digital Ad Campaign 10% 146,597
Social Media Team 4% 58,639 International Social Media/Online Content Team 4% 58,639
Sponsored Advertisements 35% 513,091 Sponsored Television Programs in U.S. 25% 366,494 Sponsored Television Programs in Canada - Sponsored Newspaper Columns 5% 73,299 Sponsored Magazine Columns 5% 73,299
Ads in International Papers/Magazines 15% 219,896 New York Times 8% 117,278 Sunset Magazine 5% 73,299 Departures / American Express Magazine - AARP 2% 29,319
Personal Promotion 25% 366,494 Booth at Health Fairs 25% 366,494
Website Enhancement 5% 73,299 Redesign the JRC Website 5% 73,299
Totals 100% 1,465,975$
MarComm Budget
+Implementation:Year 2 and 3 Campaign Plan
% of Budget 2015 Expense 2016 ExpenseDigital Marketing Campaign 11% 274,593 396,708 Search Engine Optimization (SEO) - - Google AdWords 3% 74,889 108,193 Digital Ad Campaign 8% 199,704 288,515
Social Media Team 4% 99,852 144,258 International Social Media/Online Content Team 4% 99,852 144,258
Sponsored Advertisements 45% 1,123,336 1,622,897 Sponsored Television Programs in U.S. 17.5% 436,853 631,127 Sponsored Television Programs in Canada 17.5% 436,853 631,127 Sponsored Newspaper Columns 5% 124,815 180,322 Sponsored Magazine Columns 5% 124,815 180,322
Ads in International Papers/Magazines 20% 499,260 721,288 New York Times 8% 199,704 288,515 Sunset Magazine 5% 124,815 180,322 Departures / American Express Magazine 5% 124,815 180,322 AARP 2% 49,926 72,129
Personal Promotion 20% 499,260 721,288 Booth at Health Fairs 20% 499,260 721,288
Website Enhancement 0% - - Redesign the JRC Website - -
Totals 100% 2,496,301$ 3,606,438$
MarComm Budget
+Timeline Launch
The Advertising launch will begin in January of 2014 and will focus on the US Underinsured Boomer market In this year we will establish an in-house social media team
comprised of diverse nationalities. We will invest in establishing a website devoted strictly to the
joint replacement center. A budget emphasis will be on sponsored media including
television programs, magazine and newspaper columns and presence at Health Care fairs throughout the United States in key markets.
Years 2015 and 2016 will target the same advertising executions with the addition of two international magazines and sponsored television programs, magazine and newspaper columns
+Conclusions
Currently the medical tourism industry is booming, Life expectancies are increasing, and economies are booming in emerging and developing nations
The BIHJRC currently meets all of the customer value drivers in each of the three marketing segments: Underinsured Boomers, Privileged Patriarch/ Matriarchs
The marketing plan we propose will take advantage of the BIHJRC strengths and opportunities to
“Invite the World to Bumrungrad.”