Market Expansion plan for Arogya Finance

Submitted by:-Team Name- Dream builders

Mr Mihir ShahMr Shaswat Singh

Miss. Varsha ChauhanCollege : Welingkar Institute Of

management in research & Development

Objective : Ideas to reach out to Target Group and increase the sales of Arogya Cards.

Arogya Finance : Brief Introduction

Medical Loans to finance needy people. Uses innovative risk assessment tool Presence in 9 states. It is NBFC registered with the RBI . HQ- Mumbai. Co-founder:- Mr. Jose Peter,

Mr. Dheeraj Batra. Partnered with 100 health care delivery

associates and presence in 50 hospitals. Easy loan to people who lacks any

collateral or income proof. Cumulative Collection Ratio is very high

at 96%

Pre approved medical loan in emergency of up to Rs.2L

Loan approval within 24 hours, 3 hours in an emergency.

Innovative risk assessment tool using a psychometric tool for who lie outside the formal banking system.

Easy repayment instalment of up to 36 months which can’t exceed 25% of total family income equated at 12% interest per annum EMI’s.

Tenure of loan varies from 6 months to 3 years.

Covers 75% of the hospital bill. Charge one time 2% processing fee.

Product: AROGYA CARD

Partners :

Nature of business

Market Analysis Target Market Segment : Low Income group Approximately less than one sixth of

India's billion people have access to affordable healthcare.

77% of population is poor class. Maximum Expenditure of person in his

life time is on health care.

Features Arogya Finance Healthy heart for all (Cardiac

disease)

Bajaj Finserv(25k above income)

Max limit Rs. 2L - Rs. 45L

Rate 12.00% - 13-18%

Repayment tenure 6 – 36 months 12 – 84 months 12 – 60 months

Approval period Within 24 hours 1 – 2 days Upto 72 hours

Indian States covered

9 4 All India

Competitors : Very few competitors on pan India basis. Bank serves only high

income group. Borrowing from Acquaintances, ROSCA’s, SHG loan. Money lenders though charges high rate are approached because of

easy of access.

Differentiation: Pre approved medical loan in

emergency of up to Rs.2L in form of card.

Robust methodology Fast access within 24 hours. Without proof loan by using innovative

technique for character Identification.Expenditure of common man

• Tie up with the pharmaceutical companies for subsidized medicines.• Entering into Bancassurance by offering Arogya Card to poor (Getting

funds from any local insurer - Coinsurance).• Tie-ups with local NGO’s to get fund for utilizing it in medical facilities

for poor.• Being a non/low profit organization, government funding can be

obtained by depicting the services rendered and awards obtained (Government funds are usually ill-spent when health care services intended for the poor end up being used by the non-poor).

• CSR funding from Corporate bodies• Connect with senior citizen groups and associations who regularly

make contributions to the charitable trust.

Inception of funds

• Arogya is not present in UP, Uttarakhand, MP.

• Where people below poverty line are highest.

• Reach can be increased in this states.

Marketing strategies

Vulnerability:Less workforce compare to reach.Way of assessment i.e. psychometric test is not always correctLow social media reach.Less paper media coverage.

Promoting through Existing Customers

Provide free medical screening to all the Aarogya card holders and their family members at least once a year and enrol more number of people from the same family hence maximizing the family cap limit.

If a patient from a non-network hospital has ever received benefit from Arogya finance like from Camps/reliefs and if they are able to provide the details, the extra 1.25% processing fee can be neglected.

If a card holder is availing loan for max limit i.e 2 lakhs then upto a stated percentage or upto 5000 Domiciliary expenses can be reimbursed to attract its post hospitalisation benefits (company would anyhow charge 12% on 2 lakhs).The cardholder can even avail some percentage of benefit on medicines from local medical shops. This can be a part of corporate CSR activity.

If there is no claim, Arogya finance can divert a minimum percentage from the maximum limit to the same account created for the beneficiary providing them an additional financial assistance over 2 lakhs.If a card holder has applied for the card in 1st year but has not availed the facility, then some amount of domiciliary benefit can attract more people from that segment.

Word of mouth advocacy

Current Position: Arogya Finance is recognized as friend for people who are in need.

Social media promotion and sharing story of the beneficiariesTie-ups with local doctors and network hospitals.

Conducting free monthly medical camps to reach out to target audience by making them aware of Arogya card.Promoting enrolment to card through local bodies like gram panchayat, or head of village

Convince the target audience with the benefits of Arogya card. Make Arogya card as a facility provider on a term period basis.

Include the carry forward of benefits to this term period plans.Medical stores can act as medium of promotion.

Fee for obtaining Arogya card can be utilised as an investment guaranteeing a fixed return which will help more people to register for the benefits.

Connect to local workers who can opt out of company's group insurance policies which charge them more than this scheme.

Associating with manufacturing companies, providing arogya card medical coverage plan

Diverting Patients to Hospitals on the need basis will help to create a custom network hospital in each city (initially to attract more hospitals to network).

Contributions to Arogya from this hospitals can be added to the max limit of coverage hence increasing the limit year by year.

Channelize this work of providing Arogya card on a prescribed date on a national TV channel to reach out to mass number of people. This program should include the entire working mechanism of the Aarogya card. Cards can be distributed at a central place of any village inviting all the NGOs and the contributors.

Marketing strategies