Marketing Plan for AlSalama Hospital

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    Marketing PlanFor

    Al Salama Hospital, Alexandr ia

    Supervised by:

    Dr. Ayman Shawky

    Submitted by:

    Dr. Mahmoud Amer

    Dr. Mohamed Atef

    Dr. Emad Bakr

    Dr.Mohamed Fahmy

    Mr.Sher if El-Saadany

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    Table of Contents

    1. Table of contents ............................................................................................................... ................2

    2. Introduction ...................................................................................................................... ................3

    3. Aim Of Work .................................................................................................................... ................3

    4. Vision and Mission ........................................................................................................... ................4

    5. Publics ............................................................................................................................................... 4

    6. Exchange Models................................................................................................................5

    7. Image..................................................................................................................................68. Marketing Environment ................................................................................................................... 8

    9. Porters Five Models....................................................................................................................... 10

    10. SWOT Analysis .............................................................................................................................. 13

    11. Segmentation, Targeting & Positioning ......................................................................................... 14

    12. Market Research ............................................................................................................................. 15

    13. Internal Data Analysis ................................................................................................................... 23

    14. Service Strategy ............................................................................................................... ................2815. Growth strategy................................................................................................................31

    16. Special Thanks.................................................................................................................34

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    This study evaluates the current status of Al Salama Hospital among Alexandria hospitals, tries

    to evaluate the challenges and potential improvements, and proposes an action plan for its

    promotion & development.

    Vision & Mission:

    Mission:

    WeAl Salama are developing ourselves with deep-rooted values, looking after both our employees

    and customers to be the best every day.

    Vision:

    We aim to be one of the best healthcare providers in Egypt and globalize to constitute international

    model of excellence for healthcare services.

    Al Salama adopted and followed its strategy to become a distinctive provider of medical servicesof high quality and public engagement with emphasis on technology, accessibility, uniqueness and

    competitive advantages.Al Salamawasnt only concerned to enlarge its investment but it also

    emphasized upon serving the society through patient and community continuous education to raise

    the awareness and need for healthcare services.

    Accreditation:

    Magnifying our commitment to service quality and customer satisfaction, as well as continuouslyimproving ourquality management systems,Al Salama hospital is accredited from the ISO SGS

    and UKAS.

    Publics:

    I nput publi cs: Suppliers:

    No partnership with definite supplier.

    MDN: Provides pharmacy and hospital supplies.

    Egyptian import office: Provides Operating roomsIntensive careMedical gases - Medical

    furnitureDermatological & cosmetic laserX-Ray - Endoscopes.

    Curity Co. for Medical Equipment Supply & Maintenance: Provides maintenance for the

    medical equipments.

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    Regulatory publics:

    It follows the Egyptian law that organizes the medical field and the private sector.

    Third party publics:

    Employers: Ministry of Justice, petroleum companies and other industrial companies near

    Alexandria.

    Third party payers: Alico, Prime health and Health care international (HCI).

    I nternal Publi cs:Head of Andalusia Group: Dr Ayman Hany.

    CEO: Dr Ossama Wasfy.

    Medical director: Dr Ashraf Abd El Fattah.

    Staff: 1100 employee. Most of the staff is full time, except for some physicians that have part time

    jobs.

    I ntermediary publics:Not found.

    Consuming publics:Customers: The hospital is targeting the A plus class offering a high quality service, with a veryhigh cost. The majority of the patients who seek for medical advice are from the wealthy people of

    Alexandria.

    Competitors: Al Markaz El Tebby (The medical center): This hospital is the main competitor for Al

    Salama hospital. It offers a relatively high quality of medical services with lower cost. It is

    targeting class A plus and A.

    Badrawy Hospital: This Hospital is a new hospital that has opened only one month ago. It

    is considered a threat, because it has a very good reputation in Cairo. It is expected to offer

    high quality services, with also lower prices than Al-Salama Hospital. It is targeting class A

    plus and A.

    Mabaret el Assafra: lower price, lower quality of service and very high turnover rate. This

    hospital is targeting class B and C.

    Louran hospital: lower cost and lower quality of service. It is targeting class A and B.

    The German Hospital: Offers lower cost and low quality service. It is targeting class B andC.

    Future competitors: Green towers hospital, expected to offer a high quality service.

    Exchange models:

    25% cash and carry: seen sometimes in the outpatient clinics mainly, and to a less extent inthe inpatient wards.

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    75% thir d party payer :The patient may pay partial or no reimbursement when receiving

    medical services.

    Image:

    Al Salama hospital offers the best quality of service in Alexandria with a very high price. Ittargets the A plus class.

    The quality of service is not that good but because there is no better service, it is considered

    the best.

    The position of the hospital should be changed either to improve quality to international

    standards or to decrease the cost, because being in such position is very risky. Once a better

    quality of service is offered this hospital will face lots of problems.

    Low Familiarity

    Favorable

    attitudeUnfavorable

    attitude

    High Familiarity

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    Low price

    High price

    High qualityLow quality

    Al- Salama Hospital

    Badrawy hospital

    Al Markaz Al Teby

    Lauran Hospital

    Mabaret El Asafra

    German hospital

    Satisfaction: Patient satisfaction inAl-Salama Hospital is very crucial, as the patient is paying a lot of

    money and his expectations are very high. Unless you meet the patients expectations and

    even more, patients will definitely be unsatisfied

    The hospital is highly responsive. It tries to improve the performance so as to meet the

    expectations. Mistake proofing efforts takes place so as prevent problems. When problems

    occur, substantial efforts are done to solve such problems.

    Services:

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    Service portfolio:

    Inpatient

    Services

    Ambulatory

    services

    Special units Other

    *General Surgery

    *Internal medicine

    *Pediatrics

    *Gynecology & Obs.

    *ENT

    *Ophthalmology

    *Cardiology

    *Urology

    *Orthopedics

    *Gastroenterology

    *Emergency dept.(11

    beds)

    *Outpatient clinics

    *Laboratory

    *Radiological

    unit(Digital X-

    Ray, CT & 4D

    Ultrasound)

    *Pharmacy

    *ICU

    *OR (5 rooms)

    *Catheterization

    lab.(for cardiac

    catheters, brain

    catheters, radiological

    interventions)

    *Chest pain unit(7

    beds, pre and post

    operative care)

    *CIVAS (Centralized

    Intravenous Additives

    Service Unit)

    Marketing Environment:

    The External Environment:The external environment directly influencing the hospitals direction and policies is, for lack of

    a better word, very specific and it was obvious that most employees were actually aware of the

    external criteria and factors whichplay a major role in the hospitals resource allocation and

    decision making processes which made it easy for us to gather the relevant information required to

    analyze the specific external environment.It exists in a dynamic and unpredictable environmentmade up of multiple diverse and continually changing components and knowledge of these

    components is absolutely vital.

    The hospital is competing in an always growing field and must adopt a highly adaptive and

    always ready to change culture with the ability to learn new innovations quickly and efficiently if

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    it hopes to survive in the future and maintain its competitive advantage of being the best in the

    district.

    There are many factors in the macro-environment that will affect the decisions of the managers

    of any organization. Tax changes, new laws, trade barriers, demographic change and government

    policy changes are all examples of macro change. To help analyze these factors managers can

    categorize them using the PESTEL model. This classification distinguishes between:

    POLITICAL: the political arena has a huge influence upon the regulation of businesses:

    - The political environment is not stable nowadays in Egypt which will have a directimpact on the healthcare industry as a whole.

    - Any small step taken by the government by changing some law it would seriously affecthealthcare industry. The healthcare industry is getting huge incentives and the state

    governments are supporting the development of the hospitals and their growth.

    - Taxation policies.

    - Environmental protection laws.

    - Employment law:AlSalama hospital employs large numbers of; student, disabled andelderly workers, often paying them lower rates. In an industry with a typically high staff

    turnover, these workers offer a higher level of loyalty and therefore represent desirable

    employees.

    ECONOMIC: Economic factors are of concern toAl Salama hospital because they are

    likely to influence demand, costs, prices and profits. These economic factors are largely

    outside the control of the hospital, but their effects on performance and the marketing mix

    can be profound. Investment should be focused on areas of greatest benefit (in terms of

    clinical quality, patient need and demand, market etc.)

    Alexandria being the summer capital of Egypt has many visitors arriving from all over

    the country, and as seen in the recent past, people are willing to pay for the good medical

    services they get. With the increase in the paying power of the people, the need for high

    quality hospitals become massive.

    - Interestrate, economic growth, inflation and exchange rates are now in Egypt are of bad

    effect after the 25th

    of January revolution on the whole Egyptian market and specifically

    healthcare industry, affecting the availability of supplies, ability of customers to pay, some

    international firms are being closed, which have their medical insurance atAl Salama

    hospital.

    SOCIOCULTURAL: Patient choice, changing expectations and demographic changes

    will all impact on activity.Al Salama needs to increase its marketing in the context of

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    1. Competitive rivalry within the industry:The intensity of rivalry ofAl Salama hospital is influenced by the following characteristics:-

    A large number of hospitals (Al Markaz El Tebby , Badrawy Hospital, Mabaret el Assafra,

    Lauran hospital, The German Hospital) increases rivalry because more hospitals will

    compete for the same customers and resources. The rivalry intensifies as some hospitals

    have the same or near market share, leading to struggle for market leadership.

    Slow market growth: causes hospital to fight for market share.

    High fixed costs: result in an economy of scale effect that increases rivalry. As total costs

    are mostly fixed costs, the hospital must produce near capacity to attain the lowest unit

    costs.

    As the hospital is a multi-specialized one, this is associated with high levels of competition.

    The diversity of rivals: with different cultures, histories, and philosophies make the

    healthcare industry unstable, where theres misjudging of rivals moves.

    Keep in mind the managed care contracts that are negotiated, managed care organizations

    contract with hospitals offering most favorable rates.

    Threats of rivals can be reduced by employing a variety of tactics. To minimize price

    competition, distinguish your product from your competitors by innovating or improving

    features. Other tactics include focusing on a unique segment of the market, distributing your

    product in a novel channel, or trying to form stronger relationships and build customer

    loyalty.

    2. Threat of new entrants:

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    (Green towers hospital, expected to offer a high quality service.)

    Its not only incumbent rivals that pose a threat to the hospital; the possibility that new hospitals

    may enter the healthcare industry also affects competition. For every entry, there are barriers.

    From a strategic perspective, barriers can be created or exploited to enhance the any firms

    competitive advantage. This is different in healthcare industry as there are other factors concerning

    new hospitals:

    - Common technology.

    - Hospitals are capital intensive.

    - Government regulations on new hospital construction.

    - Brand identity is not easy for new hospitals.

    - Start-up costs are high for new businesses entering the industry. The more commitment needed

    in advertising, research and development, and capital assets, the lesser the chance of new

    entrants to the industry.

    Reducing the Threat of New Entrants:

    Enhancing your marketing/brand image, utilizing patents, and creating alliances with associated

    products/services can minimize the threat of new entrants. Important tactics you can follow

    include demonstrating your ability and desire to retaliate to potential entrants and setting a

    product/service price that deters entry.

    Because competitors may enter the industry if there are excess profits, setting a price that earns

    positive but not excessive profits could lessen the threat of new entry in your industry.

    3. Threat of substitutes:Its more difficult for a firm to try to raise prices and make greater profits if there are close

    substitutes and switching costs are low.

    Substitutes, or alternative health services, include:

    - Not for Profit hospitals: Medium to High threat depending on hospital location

    - Public Hospitals: Low to Medium threat depending upon type of service

    - Day Care hospitals: Medium threat depending upon type of service and location- Technology as a Substitute to private hospital care (eg e-health): Low threat

    - Reduction in need/demand for private health services: Nil threat

    - Outpatient diagnostic facilities (ODF)

    You can reduce the threat of substitutes by using tactics such as staying closely in tune with

    customer preferences and differentiating your services, customers surveys to learn about their

    preferences.

    4. Bargaining power of suppliers:

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    Any business requires inputslabor, parts, raw materials, and services. The cost of your inputs

    can have a significant effect on your companys profitability. Whether the strength of suppliers

    represents a weak or a strong force hinges on the amount of bargaining power they can exert and,

    ultimately, on how they can influence the terms and conditions of transactions in their favor.

    Suppliers would prefer to sell to you at the highest price possible or provide you with no more

    services than necessary. If the force is weak, then you may be able to negotiate a favorable

    business deal for yourself. Conversely, if the force is strong, then you are in a weak position andmay have to pay a higher price or accept a lower level of quality or service.

    This variable has the potential to be most critical for members of the for profit private hospital

    industry in managing viable hospital units. Individual organizations rely on key groups to supply

    quality and timely services and products to the various hospital locations. This is important in

    three aspects; medical practitioners, consumable medical supplies, and medical equipment.

    Examples:

    - Demand for nurses is high, supply is low

    - Price rising for drugs and other medical supplies

    Reduce power of suppliers:

    - We might consider forming a partnership with our supplier. This can result in amore even distribution of power. This can be mutually beneficial for both

    supplier and buyer if they can:

    Reduce inventory costs by providing just-in-time deliveries

    Enhance the value of goods and services supplied by making effective use ofinformation about customer needs and preferences

    Speed the adoption of new technologies.

    - Increase dependency

    5. Bargaining power of buyers:The power of buyers describes the effect that your customers have on the profitability of your

    business. Many small customers acting as a group can create a strong force. For instance, because

    of their size, health maintenance organizations (HMOs) can purchase health care from hospitals

    and doctors at much lower cost than can individual patients. Insurers wield substantial power.

    Individual patients wise; the role of patients in isolation to other influencing factors, it can be said

    that their ability to impact on industry players in a negative or damaging way to shareholder

    interests or assets and returns is low. Hence this element is favorable to industry members.

    Reducing the Bargaining Power of Buyers

    You can reduce the bargaining power of your customers by increasing their loyalty to your

    business through partnerships, dealing directly with consumers/patients, or increasing the inherent-

    - or perceived value of a product by adding features or branding. In addition, if you can select the

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    customers who have little knowledge of the market and have less power, you can enhance your

    profitability.

    SWOT analysis for Al Salamahospital

    Strength:Location in Alexandria is considered as habitat natural beauty.Security programs for best security precautions for our customers safety.Dietaryprograms (picking best cooking chiefs all over the world).Technology and Equipment's.Sterilization (infection control programs) &Safety (contract with cleaning and medical

    waste companies).

    Innovation in concepts & decoration.IT System & Free internet Wi-Fi access.Doctors accreditations & qualifications.Specialized doctors and best trained nurses and staff.Post-process surveys (patient-relation department).Best qualified surgery female specialists for female customers.Offered package: first six month after surgery, checks ups will be for free for our patient

    Weakness:Low publicity.Low advertising.Business still in the growing stage

    Opportunity:High possibility for high market share globally.Moving people from their location to our location.Plastic surgeries done for actors, ministers, foreigners.

    Most of competitors are situated far away from us.

    Threat:A competitor with more experienced staff.Demand for quality with a cheaper price.Loss of customer loyalty.

    We summarize the hospitals competitive advantages in:

    1. The elegance of hospital location.2. A high quality decoration of the hospital hitting 7 stars.3. A highly advanced sterilization (infection control) and techniques.4. An accurate digital Diagnosis and equipments. (for routine checkups)5. Long working straight shifts 24/7.6. A full time consultants in all specialities.7. A highly qualified consultants graduated from Egypt & top medical universities worldwide

    Segmentation, Targeting & positioning:

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    Ways to segment the market in Al Salama Hospital:

    Age: Children-Adult-Elderly.

    Income: LowMedium- High.

    Type of reimbursement: Cash- third party payer.

    Disease: Primary care- Acute short term inpatient care- long term rehabilitating and chronicdiseases.

    According to the income level:

    Low income Medium income High Income

    Children

    Adult

    Elderly

    According to the type of the disease:

    Primary care Acute-short term

    inpatient care

    Chronic diseases

    Children

    Adult

    Elderly

    According to the type of reimbursement:

    Cash 3rd party prayer

    Children

    Adult

    Elderly

    Positioning: where the hospital locates between competitors. See (Image of thehospital).

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    Market Research

    A survey was implemented to determineAL Salamahospital environment, its customers, and their

    satisfaction. Interviews are conducted with some employees there, including physicians. The list

    of potential respondents of interviews consisted of 5 physicians,. The interview consisted of 12

    questions concerningAlSalamahospital process and services. Questionnaires are conducted

    towards customers. The list of potential respondents consisted of 100patient/patients family

    member, randomly selected. The questionnaire consisted of 24 questions concerning demographic

    aspects, life style of customers, their view of the hospital and its image & the hospital covered

    services. Of the 100 customers, only 74 completed the questionnaire for a response rate 74%. The

    following statistics have been compiled from these completed questionnaires and interviews.

    Overall, the survey results found that the majority of customers and employees had a positive

    opinion of the hospital.

    -----------------------------------------------------------------------------------------------------------Interview questions:

    1. How long have you been working in Al-Salama hospital?

    2. Do you work before in another place? Whats the difference between their and here?

    3. Did you get a job orientation and training prior to employment?

    4. What do you like about working here?

    5. What dont you like about working here and what would you like to change?

    6. What about workload distribution and schedule flexibility? Is it fair?

    7. What is the hospitals management style?

    Autocratic: Leader makes all decisions unilaterally.

    Permissive: Leader permits subordinates to take part in decision making and also

    gives them a considerable degree of autonomy in completing routine work activities.

    8. Are there any opportunities for skill development? What are the prospects for

    growth and advancement?

    9. How do you see the organizational culture?

    10.In general what are the main points of strengths and weaknesses in the hospital?

    11.What are the services that you perceive defective and should be enhanced?

    12.Which hospital do you consider as the main competitor for the hospital? Why?

    Interviews analysis:

    - In general, physicians like working in the hospital because ofgaining good experience and the

    well-established IT system.

    - They generally complain from the high work load and the defective nursing staff.

    - All physicians perceive the management style as autocratic.

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    - Most physicians view the way for advancement in the hospital is mainly by acquiring post-

    graduate studies.

    - The IT system and the highly qualified medical staffare the main strengths viewed by the

    physicians.

    - The HR department, the laboratory department and the high cost are viewed as the main

    points of weaknesses in the hospital.

    - The laboratory department and the nursing staffare viewed as the most defective services in

    the hospital that needs improvement.

    - Most of the physicians view the hospital as the best hospital in Alexandria with absence of

    competitors till now. Few physicians view Louran hospital and El- Markaz El Tebby as the main

    competitors.

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    Analysis of the questionnaire:

    Female

    46%

    Male

    54%

    Smokers

    32.4%Non-smokers

    67.6%

    Which category describes age?

    0

    5

    10

    15

    20

    25

    30

    35

    40

    19 and under 20-29 30-39 40-49 50-59 60 and over

    67.5%

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    Which category best describes income?

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    3000 and less 3000-6000 6000-10000 10000-15000 15000 and more

    84%

    full time

    part time

    retired

    student

    73 %

    8.1%

    10.8%

    5.4%

    Employment

    status

    Type of payment used

    Self Payment

    Third party payed

    77 %

    23 %

    How did they hear about the hospital before?

    0

    10

    20

    30

    40

    50

    60

    used hospital

    before

    heard &

    favourable

    heard & neutral heard $

    unfavourable

    didn't hear

    Familiarity of competitors:

    0

    10

    20

    30

    40

    50

    60

    Badrawy German

    hospital

    mabaret el

    3safra

    lauran el marka z el

    teby

    other

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    How did customers see Al- Salama Hospital?

    0 20 40 60 80

    Emotional support

    trustworthness

    friendliness

    Availablity of physicians

    Excellent

    Average

    Below average

    Waiting time:

    0 20 40 60 80 100

    waiting for test results

    waiting for tests to be

    performed

    Time in exam room

    Time in waiting room

    ExcellentAverage

    Below average

    Charges billing

    0 20 40 60 80

    Collection of payment

    Explanation of charges

    Cost of services

    Excellent

    Average

    Below average

    Hospital Room

    0 20 40 60 80

    furniture

    lightening

    temperature

    cleanliness

    Excellent

    Average

    Below average

    Advertising:

    0 10 20 30 40 50 60

    AdvertisingDidn't see Ad

    likes Ad

    See Ads

    52%

    42%

    48%

    0 10 20 30 40 50

    Return to Hospital again

    Recommend Hospital to

    others

    Highly Likely

    somewhat likely

    neutral

    somewhat dislikely

    Highly dislikely

    69%

    67%

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    Satisfaction in General:

    0 10 20 30 40 50

    Highly satisfied

    somewhat satisfied

    neutral

    somewhat dissatisfied

    Highly Dissatisfied

    71%

    The survey we conduct showed us that most ofAl Salama Hospital customers are full

    time employees of high social classes (A, A+ and to some extent B) of middle age category

    (between 20 and 50 years). Most of them and their families have a favorable look to the

    hospital among other hospitals in Alexandria. The processes and services inside the

    hospital are, to a noticeable extent, seen to be preferable to users. Staff of the hospital,

    including physicians, nurses and administrative employees, is taking good scores in rating.

    The points to be taken into consideration are that advertising of the hospital are not seen by

    almost half of the customers of the hospital. Another point to be looked at is charges and

    billing.

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    Internal analysis ofAl SalamaHospital:

    Year 2009 2010 2011 2012

    No.of Outpatients 61058 66903 68873 73183

    60000

    65000

    70000

    75000

    2009 2009.5 2010 2010.5 2011 2011.5 2012

    No.of Outpatients

    No.of Outpatients

    Year 2009 2010 2011 2012

    No.of inpatients 4558 6373 6750 6926

    0

    2000

    4000

    6000

    8000

    2009 2010 2011 2012

    No.of inpatients

    No.of inpatients

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    Utilization of inpatient from 2008 till 2012 by speciality

    Utilization of Outpatient from 2008 till 2012 by specialty

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    Relative market share

    High Low

    Ma

    rketgrowthrate

    high Stars Question marks

    low Cash cows Dogs

    surgery

    ICU

    Pediatrics

    ortho

    2009 2010 2011 2012

    Radiology 3867 4117 4448 4548

    Lab. 6526 9047 10120 10300

    Utilization of Radiology unit and Lab.

    0

    2000

    4000

    6000

    8000

    10000

    12000

    2009 2010 2011 2012

    Radiology

    Lab.

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    Relative market share

    High Low

    Marketg

    rowthrate

    high StarsQuestion marks

    low Cash cows Dogs

    Surgery pediatrics

    plastic

    Int.medicine

    Lab.Radio

    Analysis:

    ICU:

    Is the main service that generates profit in the hospital it is in the growth phase.

    It is highly equipped with up to date technology, and staffed by highly qualified

    physicians and nurses.

    Despite the very high cost the ICU utilization rate is very high approximately 75%

    Surgery:

    Room Category 2009 2010 2011 2012Royal Suite 13 11 10 19

    Presidential Suite 34 31 42 45

    Junior Suite 56 67 47 52

    1st. Class Deluxe Room 356 332 446 535

    1st. Class Normal Room 850 805 738 905

    Day Case Room 2625 2878 3113 3786

    Utilization of Inpatient from 2009 till 2012 By categories of Rooms:

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    One of the main services provided by the hospital

    Al Salama hospital has five operation rooms; four are major, one is minor.

    Operation rooms are equipped with three orthopedic towers, GIT tower, surgical

    microscope, (C-Arm) and healing harmonic device. A full team of anesthesiologists

    consisting of nine specialists and three consultants is available all 24 hours.

    Open surgery and endoscopic surgery.

    The service is in the maturity stage

    Pediatric care:

    The service is in the decline phase.

    The decline started in 2009 after the opening of a specialized pediatric hospital near

    Al Salama Hospital.

    Physicians working in Al Salama hospital is not highly qualified and absence of

    echo cardiography for children

    Pharmacy:

    The pharmacy is in the decline stage

    It provide all kinds of drugs, medications and other supplies

    It deals with most international pharmaceutical companies

    The direct sales have decreased tremendously after the transfer from the ground to

    the third floor.

    CIVAS Unit:

    The unit is in the growth stage

    Since 1996, the centralized preparation of I.V. medications is a prerequisite for JCI

    accreditation

    Outpatient clinics

    In the maturity stage Provide almost all kinds of services

    Catheterization Lab.

    In the introduction stage

    It is one of the most important therapeutic encounters of Al Salama hospital. The

    device is the latest medical technology of its type [GE model Q 3100] that gives

    the physician extra features and facilities helping him to have an accurate imaging

    and more effective intervention.

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    The device performs diagnostic and therapeutic catheterization applications underthe guide of its radiological imaging.

    Chest pain unit.

    In the introduction stage

    A unit to evaluate low- to moderate-risk patients with acute coronary syndromes

    Service Strategy (Marketing mix)The conclusion from interviews and questionnaires beside internal data analysis is some mistakesconcerning the laboratory, the nurse team besides the need to introduce other services by the

    hospital and promoting some other services.

    A)Improve productThere were several complaints regarding the nurse being:

    1) Unqualified.

    2) The numbers of the nursing staff is very few when compared with the workload inel salama hospital

    Recommendations:

    1. Recruiting more qualified nurses to cover the work in hospital

    2. Training and development courses for the nurse staff through an expert institution

    3. Communication skills courses provided by an expert to improve the knowledge of the

    nurses in the field of how to communicate effectively with patients.

    The laboratory suffer from being inefficient regarding:1) The lab results

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    2) There is a careless attitude among employees

    3) No expert or external lab consultations

    4) Delay in results delivery and response.

    Recommendations:

    1) Make a contract with an expert lab to supervise our lab

    2) .provide training to doctors and lab technicians to improve their knowledge and gain

    experience .

    There were some comments from customers concerning the bills being

    too high.

    Recommendations:

    1) Make a price list for each service the hospital provide2) Make an orientation in the admission area by 2 employees to make patients aware about

    services and range of prices

    3) Package price.The pediatric care lost some of its power due to the construction of a

    new specialized pediatric hospital nearby.

    Recommendations:

    1. Contract with new well trained consultants and specialists in pediatrics.

    2. Increase the quality of pediatric care nurses.

    3. Construct a pediatric echocardiography unit

    The pharmacy in the decline phase:

    Recommendations:

    1. To relocate it again in the ground floor with new kinds of promotions, to re-attract

    customers again to it.

    B) Promotion of The existing hospital services:

    As marketing consultant team, we prefer to use both of these strategies:

    Push strategy:

    By making more contracts with insurance companies and syndicates and building

    physicians loyalty to increase physician referral system.

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    Pull strategy:

    We noticed that many of customers didnt hear about hospital, they came either from

    previous experience with the hospital or by word of mouth, so we have to promote

    the service through the following promotional tools:

    - Heavy advertizing

    - Word of mouth (through improving the quality of service to customers, gaining

    their satisfaction in order to have positive word of mouth).- Exhibitions( presence of booths in medical conference with flayers explaining

    our range of service and prices and packages)

    The advertizing could be:

    - Using TV

    - Sms

    - Brochures

    -

    Press ads- Radio

    - Online ads

    - Billboards

    - Sponsorship events

    In our promotion campaign, we need to apply the DRIP model as follows;

    D= Differentiate

    Al Salama Hospital should be different in introducing its services rather than other

    competitors.

    R= Remind

    Promotion campaign targets to remind its customers about its presence and services and how

    our hospital is unique and different from other healthcare providers.

    I= Inform

    P= Persuade

    The promotion targets to persuade the new customer to shift from its current hospital to our

    hospital.

    c) Add a new line product and pricingAs listed recently in interviews and questionnaires with employees and customers of the

    hospital, most of the customers income ranges from L.El6000 to 10000, full time, age ranges

    between 40 to 49years, both male and female with high social class.

    * As marketing team consultant, we think that introducing plastic surgery department in the

    hospital with an expert surgeons will increase the benefits and profits for the hospital especially

    nowadays these kinds of services are most common and needed between this social class. This

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    service will include liposuction, breast augmentation, rhinoplasty, face lifting, etc. In the same

    time most competitors of al salama al gadida hospital dont provide this kind of service.

    * Integration of cosmetic care to the nutrition department, providing high tech LPG (L.E. 300

    per session), pro slim melt (L.E. 1000 per 4 sessions), power plate devices,. Training the nutrition

    staff on how to use these devices

    * Equipping the dermatology department with hair loss treatment laser device and netwayagedevices to remove the upper skin layers

    The previous services could be enhanced by contracting with brand names professors in

    Alexandria & monitoring the consistency of quality of these services with customer satisfaction

    monitoring systems periodically.

    * According to demographic changes we saw before, we should construct an elderly care unit,

    hiring specialized geriatric physicians, and opening a geriatric outpatient clinic. Highly qualified

    nurse staff should exist to deal with this special kind of patients, and more to organize a

    specialized staff for elderly home care.* Introducing an MRI Unit in the hospital.

    * Introducing plasma screen in the waiting area of some outpatient clinic like nutrition clinic,

    plastic surgery clinics, dermatology clinics and obs. & gynecology clinics.

    Dont forget the location of the hospital in central Alex, which means convenience (place).

    Growth strategyThe Ansoff Growth matrix is a tool that helps businesses decide their product and market growth

    strategy.

    Ansoffs product/market growth matrix suggests that a business attempts to grow depend on

    whether it markets new or existing products in new or existing markets.

    The output from the Ansoff product/market matrix is a series of suggested growth strategies thatset the direction for the business strategy. Applying it to Al Salama hospital is described below:

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    Market penetration:

    The business focuses on selling existing products/services into existing markets; directing our

    medical services towards class A and class A plus. This will achieve four main objectives:

    - Maintain or increase the market share of current servicesthis can be achievedby a combination of competitive pricing strategies, advertising, sales promotion

    and perhaps more resources dedicated to personal selling (individual patients).

    - Secure dominance of growth markets

    - Restructure a mature market by driving out competitors; this would require amuch more aggressive promotional campaign, supported by a pricing strategy

    designed to make the market unattractive for competitors.

    - Increase usage by existing customersfor example by introducing loyaltyschemes.

    A market penetration marketing strategy is very much about business as usual. The business is

    focusing on markets and services it knows well. It is likely to have good information on

    competitors and on customer needs.

    Market development

    Market development is the name given to a growth strategy where the business seeks to sell its

    existing products/services into new markets.

    There are many possible ways of approaching this strategy in Al Salama hospital, including:

    New geographical markets; governorates near Alexandria.

    New distribution channels.

    Different pricing policies to attract different customers or create new market segments. New demographical items; other classes.

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    Product/service development

    Product development is the name given to a growth strategy where a business aims to introduce

    new products/services into existing markets. This strategy may require the development of new

    competencies and requires the business to develop modified products/services which can appeal to

    existing markets. Introducing new specialties that dont exist in the hospital; oncology is one way.

    Another way is introducing new technologies to existing services. The issue is to increase yourtime to market, customer service levels, or quality.

    Diversification

    Diversification is the name given to the growth strategy where a business markets newproducts/services in new markets.

    This is an inherently more risk strategy because the business is moving into markets in which it

    has little or no experience.

    For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it

    expects to gain from the strategy and an honest assessment of the risks.

    Diversification into related services, Al Salama pharmaceutical firm.

    Diversification into unrelated services, Al Salama for food industry.

    Its main advantage is that, should one business suffer from adverse circumstances, the other isunlikely to be affected.

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    Special Thanks

    First of all we would like to thankDr. Hesham Dinana for his kind and heedfulsupport, for his valuable input and advice, his cooperation, and most of all patience.

    Wewould like to especially express our gratitude to the staff of the management center atthe AUC. They provided us with the means to gather all the information and were more than ready

    to spare us the time and effort. We would like to show the utmost appreciation to each of Ms.

    Eman Srour and Ms. Dalia El Dabbagh.

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    We would also like to thank all our colleagues for the time we spent with them.