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Marketing Strategy Factors for Clinics

This document is a summer training project report submitted by Ajay Kumar Tiwari towards his PGDM course. It discusses factors that influence the development of marketing strategies for clinics. The project collected data from employees and patients of Apollo Clinic in Ahmedabad, India. It analyzes how patients found out about the clinic, their satisfaction levels, expectations, and preferences. It also examines corporate clients' needs, including the types of companies, their views on employee health, desired health programs, and expectations of clinics. The goal is to understand key considerations for targeting, segmenting, and positioning in the clinic's market.
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0% found this document useful (0 votes)
39 views87 pages

Marketing Strategy Factors for Clinics

This document is a summer training project report submitted by Ajay Kumar Tiwari towards his PGDM course. It discusses factors that influence the development of marketing strategies for clinics. The project collected data from employees and patients of Apollo Clinic in Ahmedabad, India. It analyzes how patients found out about the clinic, their satisfaction levels, expectations, and preferences. It also examines corporate clients' needs, including the types of companies, their views on employee health, desired health programs, and expectations of clinics. The goal is to understand key considerations for targeting, segmenting, and positioning in the clinic's market.
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

Influencing Factors in Developing

Marketing Strategy for a Clinic

SUMMER TRAINING PROJECT REPORT


SUBMITTED TOWARDS PARTIAL
FULFILLMENT
OF
PGDM course
(Approved by AICTE)
ACADEMIC SESSION
2009-2011
Under the guidance of: Submitted by
Ajay Kumar Tiwari

External Supervisor Internal Supervisor:


Mr. Nehal Dixit, Mrs. Nisha Singh,
Business Development manager Academic Head,
Apollo Health and Lifestyle Ltd, NIMT B-Schools,
Ahmedabad. Greater Noida.

NIMT Institute of Pharma & Hospital Management, Plot No. 41,


Near Pari Chowk, Kasna Road,
Knowledge Park-2, Greater Noida,
G.B. NAGAR

Date of completion of project: (08/07/2010)

1
TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Ajay Kumar Tiwari, a student of PGDM at NIMT Institute of
Pharma and Hospital Management, Greater Noida has completed his Summer Internship on
the project “Influencing Factors in Developing Marketing Strategy for a Clinic” in our
organization from 23/05/2010 to 08/07/2010

During his tenure of this Summer Internship, we found him sincere and hardworking and we
appreciate the dedication towards assigned task for the entire internship duration.

We wish him all success in his career and future assignments.

Warm Regards,

For Apollo Health and Lifestyle Limited,

Nehal Dixit
Business Development manager

2
TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Ajay Kumar Tiwari has completed his Summer Internship Project at
Apollo Clinic, Ahmedabad under my guidance.

This has not formed a basis for the award of any degree/diploma by any other institute.

Mrs. Nisha Singh


Academics Head
NIMT institute of Pharma and
Hospital management

3
ACKNOWLEDGEMENT

All nice things come to an end one day, so was my summer internship at The Apollo
Clinic. I did my summer project for 45 days in the Ahmadabad city. I would like to thanks to
Dr. [Link] (Director) and Mrs. Nisha Singh (Academic Head) of NIMT Hospital and
Pharma Management Greater Noida, without whose inspiration this project would not have
been completed.

At the point of submission of this report, I feel honored to be associated with the leading
health services provider in India, with one of its Branches located at Ahmadabad. It was a great
experience staying with The Apollo clinic where I got to know many aspects of this profession.

'To initiate with anything I would like to record my sincere thanks to Mr. Nehal Dixit
to give me an opportunity to work as summer trainee in the organization, at Satellite branch. I
would also like to extend my thanks to Mr. Tejas Majethiya (Director Apollo Clinic Satellite
Branch) who spared valuable time from their busy schedule to guide me on certain occasions
while my project work was in progress.

Finally, I give my sincere thanks to all the members of Apollo Health and Lifestyle Ltd,
Ahmadabad and my respected Parents who helped me and motivated me for preparing
this project.

4
DECLARATION

I, Ajay Kumar Tiwari, student of, NIMT, Greater Noida, 3rd Term, hereby, declare that the
summer training report having the title:

"Influencing Factors in Developing Marketing Strategy for a Clinic"

Is the outcome of my own work and the same has not been submitted to any
university/college/institution for the award of my degree or professional degree.

Date: 08/07/10 Ajay Kumar Tiwari

PGDM

NIMT, Greater Noida, (U.P.)

5
ABSTRACT

In today’s competitive world, marketing strategy and implementation is one of the most
important tools for a business to grow. But before developing any strategy, one should know the
factors which can influence the business as well as their future plans, since marketing is the
study of market forces and factors and development of company’s position to optimize its
benefits from them. It is all about getting the right the right product or service to the customer at
the right price, in the right place, at the right time. Since marketing strategy determines the
choice of target market segment, positioning, marketing mix, and allocation of resources, it is
very important to first find out the factors which can influence the strategy.

This project has been undertaken to find out the factors which can be taken into
consideration before developing any strategy. It is necessary to know about various factors
because it plays a critical role while targeting, segmenting and positioning the new market.
Project contains data related to factors influencing marketing strategies which is collected from
HR manager or other Administrative personnel of the company as well as from the patients
visited the clinic. This project has taken into consideration the following parameters i.e. welfare
of employees, company’s policy regarding the healthcare of employees, expectations from
clinics, their views towards the health services, satisfaction level of patients, patients views
towards the clinic, etc.

6
Table of Content

Sr no. Particulars Pg no.

CHAPTER 1 Introduction to Study 10


1.1 Defining Marketing 11
1.2 Defining Marketing Strategy and Implementation 11
1.3 Influencing factors 11
1.4 Objectives 13
1.5 Methodology for data collection 13
1.6 Methodology for data analysis 14
1.7 Conceptual frame work 14
1.8 Scopes 15

CHAPTER 2 Industry profile 16


2.1 Healthcare industry overview 17
2.2 Healthcare industry in India 20
2.3 Growth of Healthcare sector 24
2.4 Pest analysis 26
2.5 Porter’s 5 Forces model 27

CHAPTER 3 Company profile 28


3.1 Introduction of Apollo group 29
3.2 History of Apollo Clinic 33
3.3 Business Division 34
3.4 SWOT Analysis 38

Chapter 4 Analysis and Interpretation 41

Through Patients

4.1 How the patients came to know about the clinic? 42


4.2 Number of times patient visited the clinic 43
4.3 Rating of the services, given by the staff 44
4.4 Rating of the influencing factors to come to the clinic 45
4.5 First expectation while visiting the clinic 46
4.6 Importance of physical comfort or ambiance at clinic 47
4.7 Patient preference to communicate with doctor 48
4.8 Preference for appointment before visiting the clinic 49
7
4.9 Satisfaction of patients towards doctor’s treatment 50
4.10 Requirement of updates of the new medical services 51
4.11 Patient’s opinion towards tagline “Complete Health 52
Checkup Under One Roof”
4.12 Awareness towards healthcare packages 53
4.13 Patient’s satisfaction towards price with respect to their 54
quality
4.14 Patient’s satisfaction towards location of the clinic 55
4.15 Patient’s satisfaction towards waiting time 56
4.16 Patient’s satisfaction towards time taken to provide the 57
report
4.17 Patient’s opinion for the need of relationship assistance 58
manager

Through Corporate Sector

4.18 Types of Corporate 59


4.19 Strength of Employees 60
4.20 Companies Belief in policy “Prevention is Better than 61
Cure”
4.21 Companies believe that working employees should 62
possess basic health knowledge or not
4.22 Health programs which can improve the health status of 63
employees
4.23 Companies want Medical Room Facility 64
4.24 Promotional topics which influence the corporate tie up 65
4.25 First expectation while visiting the clinic 66
4.26 Important factors for corporate tie up 67
4.27 Importance to various value added services 68
4.28 How do the companies came to know about the clinic? 69
4.29 Companies have tie up with Clinics 70
4.30 Company’s satisfaction towards the tie up 71
4.31 Preference of companies for the tie-up 72
4.32 Awareness of Apollo Clinic by the companies 73
4.33 Awareness for the services available in the Apollo 74
clinic
4.34 Services at special price to employee’s family 75

8
4.35 Companies those organize regular health checkup 76
programs
4.36 Intervals when Companies organize Health checkup 77
program
4.37 Expected amount spent on annual employee health 78
checkup per employee
4.38 Companies prefer pre-employment health check up 79
80
CHAPTER 5 Findings, Recommendation and Conclusion
5.1 Findings 81
5.2 Recommendations 83
5.3 Bibliography 84

9
CHAPTER-1
INTRODUCTION OF THE STUDY

10
Influencing Factors in Developing Marketing
Strategy for a Clinic

1.1Defining Marketing
The Chartered Institute of marketing offers the following definition for marketing:
“Marketing is the management process responsible for identifying, anticipating and
satisfying customer’s requirements profitably.”

1.2 Defining Marketing Strategy


Marketing strategy is a process that can allow an organization to concentrate its limited
resource on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage.

A marketing strategy should be centered on the key concept that customer satisfaction is
the main goal. A marketing strategy can serve as the foundation of a marketing plan. A
marketing plan contains a set of specific actions required to successfully implement a marketing
strategy.

A strategy consists of a well thought out series of tactics to make a marketing plan more
effective. Marketing strategies serve as the fundamental underpinning of marketing plans
designed to fill market needs and reach marketing objectives. Plans and objectives are generally
tested for measurable results.

A marketing strategy often integrates an organization's marketing goals, policies, and


action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy,
which might include advertising, channel marketing, internet marketing, promotion and public
relations can be orchestrated. Many companies cascade a strategy throughout an organization, by
creating strategy tactics that then become strategy goals for the next level or group. Marketing
strategies are dynamic and interactive. They are partially planned and partially unplanned.

1.2 Influencing Factors


Successful marketing depends upon addressing no of key issues. This include what a
company is going to produce; how much it is going to charge; how it is going to deliver its
product or services to the customer; and how it is going to tell its customer about it product and
services.

Traditionally these considerations were known as 4Ps – Product, Price, Place and
Promotion. As marketing becomes more sophisticated discipline, a fifth was added – People.
And recently two more P was added, mainly for service industry – Process and Physical
evidence.

11
These considerations are known as 7Ps of marketing referred as marketing mix.

These are –

Product – A product is any tangible or intangible thing which is needed by customer. There is
no point in developing a product or service which no one wants to buy. The successful company
will find out what customers need or want and then develop the right product, with the right level
of quality to meet those needs now and in the future.

Price – A product is only worth what customers are prepared to pay for it. The price needs to be
competitive but this doesn’t necessarily mean the cheapest. It is the only element of the
marketing mix that generates revenue – everything else represents a cost.

Place – The place where customers buy a product, and the means of distributing your product to
that place, must be appropriate and convenient to the customer. The product must be available in
the right time, at the right place and in the right quantity.

Promotion - Promotion is the way company communicates what it does and what it can offer to
its customers. It includes activities such as branding, advertising, PR, corporate identity, sales
management, special offers and exhibitions.

People – Anyone who comes into contact with your customers will make an impression, and that
can have a profound effect – a positive or negative – on customer satisfaction. The reputation of
your brand rests on your people’s hand.

Process – The process of giving a service and the behavior of those who deliver are crucial
satisfaction. Issues such as waiting times, the information given to customers and the helpfulness
of staff are all vital to keep customers happy.

Physical evidence – A service can’t be experienced before it is delivered. Physical evidence


describes where is the service being delivered?

The study is mainly concentrated on various marketing strategies and the factors influencing it.
It will be helpful to company to find out the areas in which it may need the improvement of
pricing, services, and quality related decisions to improve the corporate healthcare market share.

12
1.4 OBJECTIVES OF THE STUDY-
Developing a marketing strategy is a top level planning process. It is important for a company to
formulate the effective strategies to cover the maximum market share. In this project the main
concern is on the following objectives.

Primary objective:

• Understanding the level of satisfaction of existing and new consumer through marketing
mix.

Secondary objective:

• Formulate the strategy for optimum revenue generation through corporate sector.

• To find, out of 7Ps of marketing mix, on which P the organization has to focus more.

1.5 Methodology for Data Collection

Primary data:

Interview Method: I have interviewed patients who visited the clinic to know their satisfaction
level. I have also interviewed HR managers, Administrative personnel of various private and
public limited companies as well as Government companies in Ahmedabad and vicinity of
Ahmedabad. I have taken information regarding their views about medical services, their
expectations, their employee welfare policies etc.

Sample size of patients: 50

Total respondent: 33

Sample size of companies: 25

Total respondent: 12

Secondary data:

Internet

13
1.6 METHODOLOGY FOR ANALYSIS-
For analysis I have used percentage analysis tools in Microsoft Excel. Also analysis like SWOT,
PEST and Porter’s five force analysis is used.

1.7 CONCEPTUAL FRAMEWORK-

1.7.1. MARKET PENETRATION

Market penetration is one of the four growth strategies of the Product-Market Growth
Matrix defined by Ansoff

Market penetration occurs when a company enters/penetrates a market with current


products. The best way to achieve this is by gaining competitors' customers (part of their market
share). Other ways include attracting non-users of your product or convincing current clients to
use more of your product/service (by advertising etc). The Product- Market Growth Matrix to
help firms recognize if there was any advantage of entering a market. Market penetration occurs
when the product and market already exists.

In marketing process the Apollo clinic has segmented the Ahmedabad city geographically
and economically targeted the corporate sector for corporate tie up. The critical process of
market penetration in huge competition asks the promotion of the various services and attractive
packages

1.7.2. MARKET DEVELOPMENT

Market development evaluation considers the extent of market penetration, the


profitability of enterprises involved, dependencies on subsidies and the nature of the market and
supply chain. Market development can be applied to all those interventions that promote the
purchase of a product or service.

14
Identifying and developing new market for its current products

It may look for new demographic or geographic markets

The corporate sector is a new market for medical service provider. The Apollo clinic is
trying to sell the medical services in the form of packages and tie-ups. Corporate expectations
from clinics and services at special price to employee’s family could open new doors of market
for clinic.

1.7.3. SERVICE DEVELOPMENT

Market development refers to process of offering new modified service in the existing
market. In the competitive world the need to change the products/services is due to economic
condition of the nation, inflation rate, demand and supply, technological change, change in
customer’s taste and government regulations.

At Apollo clinic the feedback forms are thoroughly checked and updates of the new
medical services are given to the companies. The clinic is eager to know about the value added
services, various health programs and specialties they want for the best qualitative services.

1.8 SCOPES –
1) This project is completed within 45 days only.

2) Primary data is collected from the people of Ahmedabad and vicinity of the city.

3) Primary data may not be accurate because it depends on the human behavior.

4) It can be applied to the whole populace but certain groups of people which can be divided
according to economic status.

15
CHAPTER 2
INDUSTRY PROFILE

16
2.1 HEALTHCARE INDUSTRY OVERVIEW

Health care industry plays an important part in the economy of a country. The health care
industry determines the GDP or the gross domestic product of any country. It also determines
exports status, employment, capital investment etc. Health care segment provides employment
openings to many individuals directly associated with the health care sector or other associated
sectors, related to the health care industry in some way or the other. Businesses dealing in health
care add to the already existing economy by buying utility programs, by paying taxes for
property etc.

In 2004, the BLS ranked healthcare as the largest industry in the US providing 13.5 million jobs,
including 13.1 million jobs for wage and salary workers and about 411,000 jobs for the self-
employed.

In addition to being the largest industry, healthcare remains among the fastest-growing.
According to BLS projections, 8 of the top 20 fastest-growing occupations are in healthcare, and
the industry is also expected to lead in new wage and salary job creation generating some 3.6
million between 2004 and 2014.

The health care industry consists of the following:

• Dentists and doctors


• Protective care and nursing
• Pharmacies
• Allied medical, health services
• Hospitals
• Pharmaceuticals
• Biotechnology
• Other related life science companies
• Medical equipments

The present era is likely to be dominated by expansion of demands in the market,


increasing prices and increasing awareness among the customers. Such changes will trigger a
change in the health care industry scenario for the better. The year of 1990 witnessed a sluggish
rate of growth, the health expenses per capita marked an all time low. The sluggish nature could
be due to the fact that several health programs were implemented efficiently.

17
For purposes of finance and management, the healthcare industry is typically
divided into several groups and sectors.

2.1 Classification of Healthcare industry

Delivery of services

The health care industry includes the delivery of health services by health care providers.
Usually such services are paid for by the patient or by the patient's insurance company; although
they may be government-financed or delivered by charities or volunteers, particularly in poorer
countries. The structure of health care charges can also vary dramatically among countries. For
instance, unlike the United States, Chinese hospital charges tend toward 50% for drugs, another
major percentage for equipment, and a small percentage for health care professional fees.

There are many ways of providing health care in the modern world. The most common
way is face-to-face delivery, where care provider and patient see each other 'in the flesh'. This is
what occurs in general medicine in most countries. However, health care is not always face-to-
face; with modern telecommunications technology, in absentia health care is becoming more
common. This could be when practitioner and patient communicate over the phone, video
conferencing, the internet, email, text messages, or any other form of non-face-to-face
communication.

18
Medical tourism

Medical tourism (also called medical travel, health tourism or global health care) is a
term initially coined by travel agencies and the mass media to describe the rapidly-growing
practice of traveling across international borders to obtain health care.

Such services typically include elective procedures as well as complex specialized


surgeries such as joint replacement (knee/hip), cardiac surgery, dental surgery, and cosmetic
surgeries. However, virtually every type of health care, including psychiatry, alternative
treatments, convalescent care and even burial services are available. As a practical matter,
providers and customers commonly use informal channels of communication-connection-
contract, and in such cases this tends to mean less regulatory or legal oversight to assure quality
and less formal recourse to reimbursement or redress, if needed.

Over 50 countries have identified medical tourism as a national industry. However,


accreditation and other measures of quality vary widely across the globe, and there are risks and
ethical issues that make this method of accessing medical care controversial. Also, some
destinations may become hazardous or even dangerous for medical tourists to contemplate.

As cost of medical procedures seems out of control in the West, patients are becoming medical
tourist in India. Given the availability of top of the line hospital facilities, diagnostic facilities
and medical practitioners, this has become a virtual growth sector. According to Confederation
of Indian Industries, India has a potential to attract 1 million health tourists per annum, which
could contribute $ 5 billion to the economy. The fall out of this would be up gradation of medical
facilities, in terms of new equipment, diagnostic lab reports, equipment etc.

19
2.2 Healthcare Industry in India
In India healthcare is delivered through both the public sector and private sector. The
public healthcare system consists of healthcare facilities run by central and state government
which provide services free of cost or at a subsidized rates to low income group in rural and
urban areas. With the Indian economy enjoying a steady growth, the industry is heading towards
growth phase. The prevailing mood of economic confidence is likely to be reflected in the Indian
healthcare industry. The introduction of product patents in India is expected to boost the industry
by encouraging multinational companies to launch specialized life-saving drugs. Attracted by the
advantages such as lower costs of production and skilled workforce that India offers, these
companies are looking to set up research and development as well as production centers there.

Initially the government imposed high custom duty on imported medical equipment
making it difficult for private entrepreneurs to set up hospitals. But in post liberalization the
duties have come down and some lifesaving medicines and equipment can be imported duty free.

Post liberalization, the healthcare industry emerges with greater opportunities and quality
changes.

With global revenues of an estimated $2.8 trillion, the healthcare industry is the world's
largest industry. India's high population makes it an important player in this industry. According
to the Insurance Regulatory and Development Authority, the Indian healthcare industry has the
potential to show the same exponential growth that the software and Healthcare industries have
shown in the past decade

In India, 80% of all the healthcare expenditure is borne by the patients. Expenditure borne by the
state is 12%. The expenditure covered by insurance claims is 3%. As a result the price sensitivity
is quite high. The high level healthcare facilities are out of reach of the patients.

The Indian healthcare industry has grown manifold during the last few years. Although there is a
yawning divide between healthcare facilities available in rural and urban India and in the demand
and supply of healthcare services across the country, overall the Indian healthcare infrastructure
is fast improving with initiatives by the government and the private sector. The entry of private
players has further spurred the development of the healthcare sector.

20
2.2.1 Market size

India’s healthcare industry is worth $23 billion today or roughly 4% of GDP. The industry
is expected to grow by around 13% per year for the next four years. In India more than 50% of
the total health expenditure comes from individuals as against a state level contribution of below
30%. The government funds allocated to healthcare sector have always been low in relation to
the population of the country. In the private sector healthcare industry, healthcare facilities are
run for profit by companies. Healthcare facilities run by charitable organizations also provide
services totally free or at very low costs depending on the income of the patient or patient’s
family. The pharma market turnover was over $ 8 billion for year 2003-2004 and the exports
were $ 3.5 billion. The pharma sector is growing at an annual rate of 9%.

Looking at Indian healthcare market in a Pan India perspective more than half million
doctors are employed in 15097 hospitals. Additionally there are 0.75 million nurses who look
after more than 870,000 hospital beds.

2.2.2 Market Trend

Over the last five decades India has built up a vast health infrastructure and manpower at
primary, secondary and tertiary care in government, voluntary and private sectors. Currently
private sector health services range from those provided by large corporate hospitals, smaller
hospitals and nursing homes and clinics run by qualified personnel.

A majority of the private sector hospitals are small establishments with 85% of them
having less than 25 beds. Private tertiary care institutions providing specialty and super specialty
care account for only 1 to 2% of the total number of institutions while corporate hospitals
constitute less than 1%. The private sector accounts for 82% of all outpatient visits and 52% of
hospitalization at all India level.

Of late India is becoming a preferred healthcare destination for neighboring countries and
the West due to low cost and high quality of treatment available giving rise to the term medical
tourism. This has had a cascading effect with more and more hospitals in the private sector
upgrading their facilities to land a slice of this business.

Medical insurance which was nonexistent earlier has now opened up. More and more of
the Indian population is taking up insurance which results in increased spending on healthcare.

21
2.2.3 Market Opportunities

Government of India has accorded a high priority to the healthcare sector by an increased
budgetary outlay and heavily slashed customs duty on imports of medical equipments. Also there
are special incentives being provided for setting up new hospitals. These initiatives are giving
fillip to various market opportunities in the segments detailed below.

[Link] Ample opportunities in Pharmaceuticals & Drugs Segment

India is all set to be a major destination for contract research and contract manufacturing
over the next five years, the report says. “Huge opportunities for pharmaceutical manufacturers
in India exist in the export of generic and over-the-counter (OTC) drugs. Many mergers and
acquisitions among pharmaceutical companies have already taken place, with many more
expected during the forecast period (2001-2005). Exports and imports in this segment are
expected to increase during the same period, states the reports.

[Link] Immense Potential in Medical Devices & Equipment

The Government of India plans to improve health infrastructure by upgrading and


increasing the total number of hospitals, clinics and clinical laboratories in urban and rural areas.
This is expected to drive growth in this sector. According to the analyst, “The medical devices
and equipment segment is expected to witness considerable imports of medical imaging
equipment, cardiac care equipment, and medical laboratory equipment during the forecast period.
Telemedicine services in India are also expected to grow, which, in turn, should create demand
for diagnostic medical equipment such as X-rays, CT-scanners, Doppler, ultrasound,
electrocardiographs, and so on.

[Link] BPO industry in healthcare

The Indian healthcare BPO services industry includes health insurance, medical
transcription and health care service. Non Voice based services contributed about 45% of total
revenues, balance being from voice based services. Currently, non-captive BPO companies in
India derive about 16.5% of their revenue from healthcare, which is expected to go up to 20% in
the coming 3 years, with regulatory, cost and competitive pressures forcing healthcare providers
and payer companies to outsource a greater part of their operations.

This report covers non-voice offshore healthcare-BPO services industry, in India. It focuses on
outsourcing from healthcare industries in the US, the UK, France, Germany and Australia—the
major target markets for Indian healthcare BPO service providers. Highlights of the report
include snapshots of major healthcare markets worldwide, Processes outsourced, growth drivers,
in-depth coverage of healthcare BPO services, and profiles of leading companies in India in the
healthcare BPO space.

22
This report will help BPO service providers, who are already focused on the healthcare
vertical, sharpen their focus and identify new markets. BPO service providers, who are keen to
offer healthcare BPO services, will find this report useful in crystallizing their strategic plans.
This report will help Healthcare Providers and Payer companies, which have already outsourced
or plan to outsource, learn about outsourcing trends in the healthcare industry. Others such as
government departments, analysts, students, consultants and entrepreneurs will gain a
comprehensive understanding of this fast-growing industry.

[Link] Biomedical and Clinical Research

From past few years biomedical is emerging as a potent growing industry in Healthcare sector.

Though global meltdown, thousands of applications are received by clinical research


organizations.

2.2.4 Hurdles in healthcare industry

• One of the biggest roadblocks is the fact that the cost of many of the required equipment
in this segment is too high. Resultantly, small healthcare centers cannot afford them and
lag behind.

• Similarly, many people are unable to enjoy the benefits of the new and advanced
technology as the cost of treatment by these advanced equipment is very high which is
often not affordable.

• Finally, there are many dealers in the market who dupe people by selling them outdated
medicines. However, the government is using legislation to place serious curbs on this
malpractice.

• Notwithstanding proliferation in the urban areas, the lack of good healthcare facilities in
the backward rural areas is a cause of concern. It is undisputable that the total available
healthcare centers are lesser in number than required. Finally, though there has been a
reduction in duties, there have also been certain changes in the excise norms, which affect
pharma companies.

23
2.3 Growth of Healthcare industry

The economic outlook for India is positive. A growth rate of above 8% was achieved by
the Indian economy during the year 2003-04 and it reached 6.9% in 2004-05. Growth in the
Indian economy has steadily increased since 1979. In fact, the Indian economy has posted an
excellent average GDP growth of 6.8% since 1994. Many factors are behind this robust
performance of the Indian economy in 2004-05. High growth rates in industry & service sector
and a benign world economic environment provided a backdrop conducive to growth of the
Indian economy. Another positive feature is that prices have been relatively stable.

Year Demand of healthcare service in billion dollars


1991 4.8
2001 16.8
2009 23

2.2 A Report on Demand of Healthcare services in India

The number shows that the demand of healthcare services grows at compound rate of 16%

Year Indian GDP Part of healthcare sector in Indian GDP


2002 5.8% 5.2%
2012 7.2% (expected) 6.2-7.5% ( expected)

24
2.3 A Report of part of healthcare sector in Indian GDP

The number shows that the part of healthcare sectors in Indian GDP is likely to increase with
India GDP at steady rate.

In the United States, the financial health of the healthcare industry is in a precarious
condition. Healthcare spending as a percentage of GDP has grown from 13.2% in 2000 to 16% in
2005. Spending on healthcare in 2005 was projected to be 3.6 times higher than defense and 2.0
times higher than education. National healthcare expenditures have been rising at an average rate
of 6.5% per year and are expected to grow at the rate of 7.1% per year between 2003 and 2014.
U.S. healthcare spending exceeds that of the most developed countries in the world. The United
States is estimated to have spent $1.92 trillion on healthcare in 2005. This amounts to $6,477 per
person, which on average is twice as much as in Canada, France and Germany. Notwithstanding,
it is clear that the U.S. does not receive comparable benefits from such a high level of
expenditure.

The striking feature of the sector is that it has the potential to grow at a much faster rate in
the foreseeable future and will present new ' sectors of opportunity' within healthcare, which will
emerge as growth drivers. The Indian healthcare industry overview indicates it has the same
exponential growth potential as software and pharmaceutical industries in the country. Till now
only 12% of the opportunities in the Indian healthcare sector have been employed.

With abundant opportunities for businessmen, equipment makers and service providers to
invest in curative and preventive services and possibilities of investing in medical infrastructure
and medical tourism, it becomes imperative for providers to get a feel of what's happening in the
industry to make informed decisions on investment options.

25
The India Healthcare Trends 2008 aims to be an informed view of trends and drivers for
the Indian Healthcare industry by delving into how providers like hospitals and physicians
conduct their business and the issues they face in doing so, as well as dissect it in terms of what
healthcare means to the end consumer.

This study reflects the opportunities that exist, the challenges faced, emerging trends and
the future scenario of the healthcare service sector in India and provides a comprehensive
understanding of the healthcare market and practices, customer attitudes and behavior study in
India. The report will serve as a market / investment guide for healthcare providers, investors in
healthcare and allied businesses.

2.4 PEST Analysis


PEST analysis of any industry sector investigates the important factors that are affecting
the industry and influencing the companies operating that sector. PEST is an acronym for
political, Economical, Social and technological analysis.

• Political factors include government policies relating to the industry, tax policies, laws
and regulations.

• The economic factors relate to changes in the wider economy such as economic growth,
interest rates and inflation rates, global meltdown conditions etc.

• Social factors often look at the cultural aspects and include health consciousness,
population growth rate

• The technological factors relate to the application of new inventions and ideas such as
R&D activity, technological incentives and the rate of technological change.

The PEST analysis is a perfect tool for managers and policy makers, helping them in
analyzing the forces that are driving their industry and how these factors will influence their
businesses and the whole industry in general. Our services also present a brief profile of the
industry comprising of current market, competition in it and future prospect of that sector.

26
2.5 Porter’s 5 Forces model:
1. Supply: Intense competition has resulted in prompt services to the subscribers. However,
smaller towns and villages continue to have waiting periods on account of non-
availability of adequate infrastructure.

Demand: Given the low penetration levels in the country and demand will continue to
remain higher in the future.

2. Barriers to entry: High capital investments, older and well-established local clinics,
Government regulations are barriers to entry.

3. Bargaining powers of suppliers: change in economic conditions, difference in currency,


and sudden change in demand.

4. Bargaining powers of customers: A wide variety of choices available to customers both


in fixed as well as healthcare industry has resulted in increased bargaining power for the
customers.

5. Competition: Basic to advance technology, variation in techniques, quality.

27
CHAPTER 3
COMPANY PROFILE

28
3.1 Introduction of Apollo group

3.1.1 Apollo Health and Lifestyle Limited

Through Apollo Health and Lifestyle Limited, a wholly owned subsidiary of Apollo
Hospitals Enterprise Ltd - the flagship parent company, the Apollo Hospitals Group is
establishing a large network of The Apollo Clinics across the country. As a part of the group's
objective to expand its operations overseas, a number of similar clinics are being set up in
neighboring countries as well.

Apollo Health and Lifestyle limited (AHLL) was incorporated in the late 2000 as a result
of Dr. Reddy’s vision of making quality primary healthcare available as an inexpensive
proposition to people all over the country. Mr. Ratan Jalan is the chief executive officer of
AHLL.

The Apollo Clinic has been conceived with the sole aim of bringing quality healthcare to
more people and in more regions than has ever been attempted before. The Apollo Clinic
business model is expected to reach system wide revenue of more than 6 billion by 2008.

3.1.2 The Apollo Hospitals Group

The Apollo Hospitals Group is uniquely positioned to continue to be the largest corporate player
in the healthcare sector in South Asia.

With more than 40-owned/managed multi-specialty hospitals spread across the country and a
total of almost 6,000 beds resulting in annual revenue of around Rs. 5,500 million, the Apollo

29
Hospitals Group is undoubtedly the largest corporate player in the healthcare sector in South
Asia.

It has a widespread geographical presence with facilities in Ahmedabad, Chennai, Madurai,


Hyderabad, Kolkata, Visakhapatnam, Delhi, Mumbai, Pune, Nagpur, Jodhpur, Ranchi,
Vijayawada and Kurnool in India. The state of the art multi-specialty hospital in Colombo,
inaugurated recently, is yet another feather in the cap, for the Apollo Hospitals Group.

Several multi-specialty tertiary care hospitals are in the pipeline at locations in India such as
Ludhiana and overseas in locations like Dhaka, Mauritius, Nigeria and Kathmandu to name a
few.

With over 7500 beds across 43 hospitals in India and overseas, neighborhood diagnostic clinics,
an extensive chain of Apollo Pharmacies, medical BPO as well as health insurance services and
clinical research divisions working on the cutting edge of medical science.

30
3.1.3 The Apollo Clinics

The Apollo Hospital initiative

Each of the Apollo Clinics is committed to providing consistently superior quality health
care services to address the day-to-day health care needs of the family. To maximize
convenience and comfort, The Apollo Clinic is an integrated model and offers facilities for
Specialist Consultation, Diagnostics, Preventive Health Checks and 24-hour Pharmacy, all under
one roof. The Clinic also pioneers a range of value added services such as second opinions from
a panel of leading experts through telemedicine and counseling on various lifestyle parameters.

Apollo Hospitals introduced the concept of The Apollo Clinic to ensure that quality
healthcare is available to more people and in more regions than has ever been attempted before.

[Link]. The concept behind The Apollo Clinic

The Apollo Clinic has been set up with the objective of addressing the day-to-day healthcare
needs of a typical family, by providing them with a range of superior quality healthcare services
- under one roof and at affordable prices.

This includes consultation with specialists and super-specialists, comprehensive diagnostic


services, dentistry procedures, a range of Preventive Health Check packages, telemedicine and a
24-hour pharmacy.

[Link]. Design and Ambience

By its very design, The Apollo Clinic creates an ideal experience for a patient. The following are
some of the features that ensure a unique experience of APOLLO CLINIC.

• Right architectural inputs ensure a warm and reassuring ambience


• Impeccable hygiene
• World-class facilities
• The convenience of having all services under one roof
• Caring medical specialists

High investment in training of personnel at various levels, to deliver superior customer services.

31
[Link]. Consultation

The Apollo Clinics are staffed with some of the


finest doctors drawn from various medical fields.
Specialties include Internal Medicine,
Gynecology, Pediatrics and Cardiology. A panel
of visiting consultants from amongst the most
renowned experts in various specialties is also a
part of the Clinic. They cover a wide range of
disciplines including Urology Orthopedics,
Neurology, Dermatology, Gastroenterology,
Cardiology, Dietary and Counseling services are
also provided through some of the leading
Dietitians and Nutritionists.

[Link]. New age Equipments:

Using years of valuable experience gleaned from the Apollo hospitals, the Apollo clinics
have been equipped with the latest and best in medical technology. Be it the something as simple
as an electronic weighing machine to the state-of-the art auto analyses every effort is made to
ensure that piece of equipment is completely reliable.

This equipment is manned by a team of highly qualified and trained technicians. And
comprehensive and integrated clinic management software specially developed for us to support
the clinics functions and ensures smooth and customer friendly operations.

NABL accredited Laboratory and ISO certified instruments add extra qualitative services
for the patient.

32
3.2 History of Apollo Hospital and clinics

Dr. Prathap C Reddy, the founder Chairman of Apollo Hospitals, until the point of
inflection happened in 1983. A young man succumbing to an ailing heart was what it took to
ignite Dr. Reddy's vision into a reality - a vision where quality healthcare was given, where the
pursuit of clinical excellence was daily endeavor, India a hub in the medical tourism map and
where the Apollo family touches and enriches lives every minute, every day.

Apollo Hospitals started as a 150 bed hospital in Chennai in 1983. And it has to be said,
amidst much skepticism. India in the early 80's was not the easiest place for private enterprise.
Moreover private healthcare institutions were unknown and they were not doing cutting edge
work. 25 years later it is an amazing story of success, achievement and most importantly, dreams
realized.

As Apollo Hospitals has made colossal strides to reach where it is, more and more facets
of the founding vision have turned to reality. Today Apollo Hospitals is not just one of the
country's premier healthcare providers but has also played a pioneering role in helping India
become a center-of-excellence in global healthcare.

However the largest achievement of the Apollo Group has been to take quality healthcare
to across the length and breadth of India. Of touching 10 million lives and giving hope to an
entire segment of the Indian population who did not have an option beyond limited medical
infrastructure.

By the start of the new millennium, Apollo Hospitals Group had become an integrated
healthcare organization with owned and managed hospitals, diagnostic clinics, dispensing
pharmacies and consultancy services. In addition, the group's service offerings include healthcare
at the patient's doorstep, clinical & diagnostic services, medical business process outsourcing,
third party administration services and health insurance.

Having steered the Apollo Hospitals Group to a number of locations within India, Dr.
Reddy embarked on an Asian expansion plan with the first clinic in Dubai established in March
1999.

Apollo Clinic was born with the first set-up unveiled in April 2002 at Janakpuri, New Delhi.

Oct 2003 - The Clinic also has a well-stocked 24-hour Pharmacy that offers free home
delivery. Ten Apollo Clinics have already started operations, five in Delhi (Azadpur, East of
Kailash, Janakpuri, Pitampura and Rajouri Garden) and one each in Faridabad, Gurgaon,
Ahmedabad and Bangalore.

And the other clinics like

The Apollo Clinic, Frazer Town: 56th clinic in the network inaugurated on 4th April 2008 in
Frazer Town, Bangalore.

33
The Apollo Clinic, Bhagalpur: 57th Clinic in the network inaugurated on 28th November 2007.

The Apollo Clinic, Dehradun: 58th Clinic in the network inaugurated on 14th August 2008.

The Apollo Clinic, Electronic city: 59th Clinic in the network inaugurated on 29th August 2008.

The Apollo clinic, 2nd in Ahmedabad: 60th in the network inaugurated in December 2008

3.3 Business Division


The Apollo hospital group is a healthcare service provider in south Asia. The business at
Apollo hospitals groups has been structured into three individual strategic business units (SBU).
Apollo hospital ltd., Apollo health and lifestyle ltd., Apollo DKV.

3.3.1. Apollo hospitals:


Apollo Hospitals is a healthcare powerhouse you can trust with your life. At Apollo Hospitals,
India, we unite exceptional clinical success rates and superior technology with centuries-old
traditions of Eastern care and warmth, as we truly believe the world is our extended family-
something our 16 million patients from 55 countries can warmly affirm.

[Link]. Pharmacy

The Apollo Hospitals initiative

A well-stocked, 24-hour Pharmacy, manned by


qualified and well-trained pharmacists, is a part of
every Apollo Clinic. It provides authentic medicines
and a wide variety of personal care products. For
3.3.2. Apollo health and lifestyle added convenience, the Pharmacy also offers free
ltd.: home delivery. Medicines are stored in controlled
environment at right temperature
In its bid to bring world-class
primary healthcare services to the
Indian sub-continent, the company is
ably guided by Mr. Sudhir Diggikar, as
Chief Executive Officer who took over
the regions from the outgoing Chief
Executive Officer, Mr. Ratan Jalan on 1st January, 2009. With over two decades of extensive
experience with the Apollo group in varied areas like marketing, projects and operations, Mr.
34
Diggikar leads a young team of some of the brightest professionals from different backgrounds
such as franchising, retailing, logistics and project management.

The franchise model was taken as ideal way to expand the business. It is possible to
create a nationwide chain of 250 primary healthcare Apollo clinics on a franchise basis.

[Link]. The Apollo clinic

Each of the Apollo Clinics is committed to providing consistently superior quality health care
services to address the day-to-day health care needs of the family.

[Link].1 Range of Services

3,[Link].1. Specialist Consultation

The Apollo Clinic offers consultation with some of the finest doctors from almost all areas of
medical specializations, which include:

• Cardiology
• Dermatology
• Diet Counselling
• Gynaecology/Obstetrics
• Orthopaedics
• Paediatrics
• Pulmonology
• Physiotherapy
• Psychology
• Neurology
• ENT

35
• Dentistry
• OPD
• Surgery
• Urology
• Nephrology etc.

[Link].1.2 Diagnostic Services:

24 [Link] services
E.M.G.

Digital X-Ray
[Link]

Ultrasound
PFT
[Link]. Department for Women Care
Colour Doppler
The department of Gynecology offers
Echo Cardiology
comprehensive services to women with the
support of other disciplines. The department E.C.G.
is staffed by expert consultants. Treadmill Test(T.M.T)
[Link].1. Family planning

• Counseling

• IUCD insertation

• Laparoscopic sterilization

36
[Link].2. Complete care for pregnant women

• Pre pregnancy counseling

• Early pregnancy assessment

• Prenatal diagnosis

• Obstetric ultrasonography

• Doppler study

[Link].3. Preventive Health Checks

Clinics offer a wide range of specially designed Preventive Health Check packages that
help in the assessment of the state of an individual’s health and allow one to take preventive
action in case any problem is identified.

The range includes Apollo Master Health Check, Apollo Executive Health Check, Apollo
Heart Check, Apollo Well Woman Check, Apollo Child Check and Apollo Family Health Check.

[Link]. Comprehensive Health Checks:

Comprehensive range of health checks has been designed to suit the requirement of each member
of family.

It includes:

• Apollo Master Health Check

• Apollo Well woman Check

• Apollo Executive Health Check

• Apollo Child Check

• Apollo Heart Check

• Apollo Family Health Check

[Link]. Telemedicine Services

Additionally, telemedicine services available within the Clinics allow patients to


connect to and seek opinions from an expert panel of doctors from Apollo Hospitals. Significant
investment in information technology and a customized Clinic Management Software Solution
ensures seamless operations and added convenience for the customer.

37
Apollo DKV is a medical insurance provider; DKV has a joint venture for mediclaims and health
insurance with the Apollo Hospitals in India.

38
3.4 SWOT ANALYSIS

3.4.1. Strengths
• A well-established name in the market and company having good brand image in the
healthcare service category

• The company has the advantage of the positive word of mouth from the current as well as
past service users which act as a kind of marketing for the company.

• The company is having the customer base in the healthcare category which is more than
any other health service provider and it is far than its competitor

• Apollo is providing very good services in terms of quality, service availability and other
advance facilities which is very much important for patients.

• One of company’s strength is that the treatment is done by reputed doctors with
exaggerated qualitative equipment.

• The marketing team of the company is very efficient that provides an additional
advantage to the company.

• The clinics having a huge network all over India possessing 45 clinics.

• The entire specialty is available in the clinic that’s why they set the tagline “complete
Healthcare under One Roof”

• The location of clinic is one of the added advantages

• The 24*7 pharmacy store is available just near the clinic, so it will augment the customer
convenience

39
• The clinic is flexible to provide the various tailor made packages according to the
company requirements

• The clinic gives various value added services and arranges several healthcare programs
for the customers

• In clinic the environment is so created that soothes the patient and gives comfort and
peace

• Well organized services and data collection for long time is beneficial for patients.

3.4.2. Weakness

• Apollo clinic has cost structure which is more costly when compared to the competitors.

• Not very spacious.

• Failed to provide low cost packages.

• Clinic cannot cover all the industrial area.

• Many times customer complains about doctor’s punctuality.

3.4.3. Opportunities
• Corporate sector is such a vast target audience for tie up for medical services.

40
• Corporate tie up at national or international level with big companies and also MNCs, the
huge network of clinic may play an important role in it.

• Target small scale industries and uncovered areas with special packages.

• Government or semi government companies are also a good opportunity.

• Now a day many multinational companies are entering in India because India is a
vulnerable target, it results in increase profit for company.

• The factors like awareness among the people for importance of health and high standard
of living present a good opportunity.

• Some educational institutes/universities prefer regular health check of students.

• Pandemic conditions like swine flu in the world may open new doors for clinic.

• Health checkup centers at airports, railway stations, etc.

• In the case of new diseases.

3.4.4. Threats

• In the booming Healthcare sector many Healthcare organizations are entering the field

41
• Middle and lower class people as well as small scale industries prefer low price charging
medical organization for medical service

• Government appoint some regulatory authorities which monitors health status of


employees in industrial areas which provide medical service at low cost

• There is a major threat from local hospitals

• Now a day big companies prefer their own medical teams which is trained for accidental
as well as routine check up

• Increased awareness level for diseases, meditation, and YOGA are also work as threats
for clinic

42
CHAPTER 4
ANALYSIS AND INTERPRETATION

43
4.1 How do the patients came to know about the clinic

Belief Respondent Percentage


Friends 4 12.12
Relatives 4 12.12
T.V. ad 2 6.06
Banners 0 0
News paper 0 0
Leaflet 0 0
Radio 0 0
Internet 0 0
Direct contact 23 69.69

44
4.2 Number of times patients visited the
clinic

Respondent Percentage
Once 19 59.37
Twice 3 9.37

More than twice 11 34.37

45
4.3 Rating of the services given by the staff

Rating Respondent Percentage


1 1 3.03
2 1 3.03
3 1 3.03
4 16 48.48
5 14 42.42

46
4.4 Rating of the influencing factors to come
to the clinic

Distance 84 17.14
Brand name 115 23.46
Price 76 15.51
All type of services
116 23.67
Reputation of Doctor
99 20.20

47
4.5 First expectation while visiting the clinic

Expectati
on Respondent Percentage
Cleanliness 12 36.36
Consultancy 13 39.39
Good parking 1 3.03
Service availability
7 21.21
Well-furnished room
0 0

48
4.6 Importance of physical comfort or
ambiance in clinic

Percenta
Belief Respondent ge
Very
important 20 60.60
Important 13 39.39
Less
important 0 0
No
importance 0 0

49
4.7 Patients preference to communicate with doctors

Responden Percent
Types t age
Tele
communicati
on 4 12.12
Personal
communicati
on 29 87.87

50
4.8 Preference for appointment before visiting the clinic.

Belief Respondent Percentage


Yes 31 93.93
No 2 6.06

51
4.9 Satisfaction of patients towards doctor's treatment

Belief Respondent Percentage

Yes 32 96.96

No 1 3.03

52
4.10 Requirement of updates of a new medical services

Belief Respondent Percentage


Yes 29 87.87
No 4 12.12

53
4.11 Patient's opinion towards tagline "Complete Health CheckUp under one roof".

Belief Respondent Percentage


Yes 32 96.96

No 1 3.03

54
4.12 Awareness towards Healthcare Packages.

Belief Respondent Percentage

Yes 6 18.18

No 27 81.81

55
4.13 Patient's satisfaction towards price with respect to their quality.

Belief Respondent Percentage

Yes 29 87.87

No 4 12.12

56
4.14 Patient's satisfaction towards location of the clinic.

Belief Respondent Percentage


Yes 26 78.78
No 7 21.21

57
4.15 Patient's satisfaction towards
waiting time

Belief Respondent Percentage


Yes 18 54.54
No 15 45.45

58
4.16 Patient's satisfaction towards time taken to provide the report.

Belief Respondent Percentage


Yes 29 87.87
No 4 12.12

59
4.17 Patient's opinion for the need of
relationship assistance manager.

Belief Respondent Percentage


Yes 32 96.96
No 1 3.03

60
Analysis through Corpporate Sector

4.18 Types of Corporate

Type Respondent Percentage


Private LTD 6 50
Public LTD 4 33.33
Govt. 2 16.66

61
4.19 Strength of
employees

Strength Respondent Percentage

>20 5 41.66
20 to 50 2 16.66
50 to 100 4 33.33

<100 1 8.33

62
4.20 Companies belief in policy prevention is better than
cure

Belief Respondent Percentage

Yes 12 100
No 0 0

63
4.21 Companies believe that working employees should possess basic health
knowledge or not

Belief Respondent Percentage

Yes 12 100
No 0 0

64
4.22 Health programs which can improve the health status of employees

Programs Respondent Percentage

Blood donation camp 2 16.66


Emergency treatment 2 16.66
Free diagnostic camps 4 33.33
On site check up 4 33.33
Rehabilitation center 0 0
Vaccination camp 0 0

65
4.23 Companies want Medical Room Facility

Belief Respondent Percentage

Yes 1 8.33

No 11 91.66

66
4.24 Promotional topics which influence the corporate tie up

Topics Respondent Percentage

Medical practitioner as a renowned


individual of his/her branch 26 14.44
Advanced facilities
available at clinic 48 26.66
Achievements of Medical
practitioner 31 17.22
Achievements of
clinic 32 17.77
Specialized Procedures done by the
Medical practitioner at institute 43 23.88

67
4.25 First expectation while visiting the clinic

Expectations Respondent Percentage


Cleanliness 6 50
Consultancy 3 25
Good parking 0 0
Service availability 2 16.66

Well furnished room 0 0

68
4.26 Important factors for corporate tie
up

Availability 39 11.71
Brand 45 13.51
Distance 40 12.01
Price 63 18.91
Quality 49 14.71
Reputation of doctor 40 12.01
Services 57 17.11

69
4.27 Importance to various value added services

Services Respondent Percentage

Daily health tips on


mobile 2 16.66
Health awareness
seminars 6 50
Health magazines,
issues, CD-ROMs
etc. 0 0
Medical insurance 3 25
Stress management
techniques 1 8.33

70
4.28 How do the companies came to know about the healthcare organization?

Factors Respondent Percentage


Advertising 6 50
Direct marketing 0 0
Events and experience 3 25
Personal selling 1 8.33
Publicity and public relation 2 16.66
Sales promotion 0 0

71
4.29 Companies have tie up with any hospital or clinic

Belief Respondent Percentage

Yes 1 8.33
No 11 91.66

72
4.30 Company’s satisfaction towards the tie up

Belief Respondent Percentage


Yes 1 100
No 0 0

73
4.31 Preference of companies for the tie-up

Belief Respondent Percentage

Yes 1 8.33

No 11 91.66

74
4.32 Awareness of Apollo Clinic by the companies

Belief Respondent Percentage


Yes 7 58.33
No 5 41.66

75
4.33 Awareness for the services available in the Apollo clinic

Belief Respondent Percentage


Yes 3 25
No 9 75

76
4.34 Services at special price to employee’s family

Belief Respondent Percentage


Yes 10 83.33
No 2 16.66

77
4.35 Companies those organize regular health checkup programs

Belief Respondent Percentage

Yes 8 66.66

No 4 33.33

78
4.36 Intervals when Companies organize Health checkup program

Duration Respondent Percentage


Monthly 0 0
Annually 7 87.5
When needed 1 12.5

79
4.37 Expected amount spent on annual employee health checkup per employee

Amount Respondent Percentage


>1000 Rs 0 0
<1000 to >5000 Rs 1 8.33
<5000 Rs 7 58.33

80
4.38 Companies prefer pre-employment health check up

Belief Respondent Percentage


Yes 10 83.33
No 2 16.66

81
CHAPTER 5
FINDINGS
AND
RECOMMENDATIONS

82
5.1 Findings:

Through patients

• From the study it seems that 70% of the patients come through reference given by doctors
or from the companies having tie - up with the clinic.
• According to the study most of the patients believe that “Brand Name, Reputation of the
Doctors and All types of services” are the most influencing factor for them to visit the
clinic.
• From the study it seems that 60% customers are visiting the Apollo clinic first time, so
the clinic might have failed to retain the customer. On the other hand clinic also possesses
loyal customers.
• 40% patients expect good consultancy and cleanliness from the clinic.
• 90% patients prefer personal communication with the doctor, but few wants telephonic
conversation.
• The services given by the staff has been rated excellent.
• 94% patients have given preference to take appointment before visiting the clinic.
• The satisfaction level of patients towards the treatment of the doctor is 100%.
• 90% patients want updates of new medical services.
• From the study it is clear that 85% patients are satisfied with the price with respect to the
quality of the services.
• 50% of the patients are not satisfied with the waiting time.
• 90% patients are satisfied with the time taken to provide the report.
• Every patient wants customer relationship manager.
• 82% patients are not aware of the different health care programs run by Apollo clinic.
• The location of Apollo clinic seems fair.
• The tagline “Complete health checkup under one roof” is accepted by most of the patients
with respect to the services

Through corporate sector

• The healthcare industry providers are having very good time as the industry is showing
a significant amount of growth and companies are spending a significant amount of
money for medical service usage.

• Companies are frequently complaining about high price packages of Apollo clinic

• Apart from society corporate sector is a huge and also new market to enter for a
healthcare industry furnishing a golden opportunity for market penetration

• Many corporate only know about Apollo hospitals but not Apollo Clinics, mistakenly
they believe Apollo clinic and Apollo Hospital are same.

• Demand of medical room is very less.

• 100% companies believe in the policy prevention is better than cure. But they don’t do
anything for it.

83
• 50% companies expect cleanliness as their first preference and 25% companies prefer
consultancy when they visit the clinic.

• According to the study 50% companies said that, advertising is the main factor through
which they come to know about any health care organization.

• Only 10% companies have tie up with healthcare organization.

• 100% companies believe that working employees should possess basic health
knowledge.

• From the study it seems that 50% of the companies don’t know about the clinic.

• 75% of the companies say that they don’t know about the services available in the
clinic.

• 50% companies think that healthcare seminars and medical insurance are the two most
popular value added service in the corporate sector.

• Advance facilities available at clinic is the most important promotional topic which
influence the corporate tie up while ‘Medical practitioner as a renowned individual of
his/her branch’ doesn’t emphasize the corporate tie up- managers.

• According to the study of the companies believe that price, service and quality is the
most influencing factor for corporate tie-up.

• 66% companies organize regular healthcare programs. And around 85% of the
companies do it annually.

• Most of the companies spend Rs. 5000 and above on employees health checkup.

• According to study 83% companies prefer pre – employment health checkup.

84
5.2Recommendations

Primary Objective:

Understanding the level of satisfaction of existing and new


customer through marketing mix.

 From the study it seems that only process and physical evidence are the two
factors which is not been able to satisfy the customer, since 50% patients are not
satisfied with the waiting time and 90% patients says that they require medical
updates. So reduce the waiting time by allowing telephonic conversation between
doctor and patient and provide medical updates through leaflet or through posters.

Secondary objectives:
A) Formulate the strategy for optimum revenue generation
through corporate sector.

 According to the study 90% of the companies prefer pre-employment health


checkup but don’t have tie - up with any clinic or hospital, neither have they
recommended to visit any particular clinic. So great opportunity for clinic to show
their presence. Here health awareness seminars and Advertising can act as
effective marketing tool for market penetration.

B) To find, out of 7Ps of marketing mix, on which P the


organization has to focus more.

 Out of 7Ps of marketing mix i.e. product, price, place, promotion, process, people
and physical evidence the focus should be on price, promotion and process. Since
according to the study 70% of the patients visited the clinic either referred by
doctor or through corporate tie-up. So it’s important for the clinic to go for the
advertisement or some other type of promotional activity like viral marketing,
word of mouse, etc. to show its presence in the market.

85
86
5.3Bibliography

1. Marketing Management 11th edition by Phillip Kotler

2. [Link]

3. [Link]

4. Ebook - The Chartered institute of marketing.

5. [Link]

87

Common questions

Powered by AI

Companies prefer pre-employment health checks because they believe in ensuring the fitness and health of potential employees, aligning with the policy 'prevention is better than cure' . This practice not only ensures a healthy workforce but also potentially reduces future healthcare costs . For healthcare providers, this presents an opportunity to partner with companies that lack existing tie-ups for employee health services . Providers can capitalize on this by offering attractive packages and health awareness seminars, thus enhancing market penetration and expanding corporate client bases .

Customer feedback is integral to operational strategies at Apollo Clinic as it highlights areas of improvement such as reducing waiting times and the need for ongoing medical updates . These insights drive operational adjustments like enhancing communication channels and refining appointment systems . Moreover, feedback on patient satisfaction with treatment, prices, and service quality informs strategic decisions on personnel training and service optimization . This adaptive approach not only increases patient satisfaction but also aligns operational strategies with market expectations .

To enhance customer satisfaction, Apollo Clinic should address dissatisfaction points such as waiting time by introducing telehealth options to reduce in-clinic waiting . Increasing awareness of new medical services through regular updates can also boost satisfaction . For revenue optimization, targeting corporate sectors with pre-employment health check offers, as many companies lack existing healthcare tie-ups, provides untapped potential . These could be promoted through health seminars and focused advertising efforts . Emphasizing marketing mix elements like promotion, price, and process optimization is key to maintaining a competitive edge .

The Apollo Clinic's business model contributes to its competitive advantage by offering a comprehensive range of services under one roof, enhancing patient convenience and comfort . Additionally, it integrates specialist consultations, diagnostics, preventive health checks, and a pharmacy in a single location, which addresses a typical family's day-to-day healthcare needs . This model not only ensures superior quality healthcare but also leverages on the brand name and reputation of Apollo Hospitals, attracting both first-time and repeat patients . Its focus on customer satisfaction through superior service quality and value-added services like telemedicine further strengthens its market position .

Barriers to entry for new clinics in the healthcare market include high capital investments required for setup . Established competitors like local clinics with existing infrastructure and reputations also pose significant challenges . Additionally, governmental regulations can complicate the entry process . This competitive landscape is further influenced by technological advancements and economic factors such as inflation rates and economic growth, which can affect demand and operational costs .

Apollo Clinic faces challenges in customer retention, as indicated by the finding that 60% of customers are first-time visitors, suggesting potential issues with repeat visits . Underlying reasons may include dissatisfaction with waiting times, despite excellent service ratings in other areas like staff conduct and treatment quality . Additionally, a lack of awareness about ongoing health programs could mean missed opportunities to engage patients through continuous care experiences . Focus on customer relationship management and effective communication of healthcare packages could enhance retention .

Apollo Clinics enhance service delivery through the use of state-of-the-art medical technology and equipment which are crucial for accurate diagnosis and treatment . This includes NABL accredited laboratories and ISO certified instruments, ensuring high-standard service quality . The clinics are equipped with advanced diagnostic tools, supported by trained technicians and integrated management software, facilitating smooth and efficient operations . This investment in technology underscores Apollo's commitment to reliable and comprehensive healthcare service delivery .

Patients primarily choose the Apollo Clinic due to brand name, reputation of doctors, and comprehensive service offerings . The tagline “Complete Health Checkup Under One Roof” resonates with many, as they appreciate the holistic service approach . Additionally, factors like quality of treatment, cleanliness, and personal communication with doctors play significant roles . Furthermore, appointments are strongly preferred, highlighting the importance of planned visits .

Apollo Clinic's growth strategy involves leveraging geographical expansion both domestically and internationally to sustain its market presence . This expansion is facilitated through a strong infrastructure with 43 hospitals and a comprehensive network of pharmacies, diagnostic clinics, and specialized services . By setting up clinics in both urban and developing areas, Apollo broadens its market reach, tapping into diverse patient demographics . This network not only ensures widespread healthcare delivery but also strengthens brand recognition across regions, crucial for maintaining competitive advantage .

There is a prevalent misconception among corporate sectors and potentially the wider public that Apollo Clinics are the same as Apollo Hospitals . This confusion may impact market positioning by obscuring the distinct services and benefits clinics offer compared to hospitals . Corporates' lack of awareness about clinic-specific services limits potential partnerships and corporate engagement, as businesses may not actively seek clinic services under the assumption they are already covered by hospital affiliations . Addressing this misunderstanding through targeted branding and educational efforts could strengthen the clinic's market identity .

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