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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, 1

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Influencing Factors in Developing Marketing Strategy for a Clinic

SUMMER TRAINING PROJECT REPORTSUBMITTED TOWARDS PARTIAL

FULFILLMENTOF

PGDM course(Approved by AICTE)

ACADEMIC SESSION2009-2011

Under the guidance of: Submitted byAjay 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)

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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 DixitBusiness Development manager

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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 SinghAcademics HeadNIMT institute of Pharma and Hospital management

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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. K.P.Singh (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.

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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.)

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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.

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Table of Content

Sr no. Particulars Pg no.

CHAPTER 1 Introduction to Study 101.1 Defining Marketing 111.2 Defining Marketing Strategy and Implementation 111.3 Influencing factors 111.4 Objectives 131.5 Methodology for data collection 131.6 Methodology for data analysis 141.7 Conceptual frame work 141.8 Scopes 15

CHAPTER 2 Industry profile 162.1 Healthcare industry overview 172.2 Healthcare industry in India 202.3 Growth of Healthcare sector 242.4 Pest analysis 262.5 Porter’s 5 Forces model 27

CHAPTER 3 Company profile 283.1 Introduction of Apollo group 293.2 History of Apollo Clinic 333.3 Business Division 343.4 SWOT Analysis 38

Chapter 4 Analysis and Interpretation 41

Through Patients

4.1 How the patients came to know about the clinic? 424.2 Number of times patient visited the clinic 434.3 Rating of the services, given by the staff 444.4 Rating of the influencing factors to come to the clinic 454.5 First expectation while visiting the clinic 464.6 Importance of physical comfort or ambiance at clinic 474.7 Patient preference to communicate with doctor 484.8 Preference for appointment before visiting the clinic 49

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4.9 Satisfaction of patients towards doctor’s treatment 504.10 Requirement of updates of the new medical services 514.11 Patient’s opinion towards tagline “Complete Health

Checkup Under One Roof” 52

4.12 Awareness towards healthcare packages 534.13 Patient’s satisfaction towards price with respect to their

quality54

4.14 Patient’s satisfaction towards location of the clinic 554.15 Patient’s satisfaction towards waiting time 564.16 Patient’s satisfaction towards time taken to provide the

report57

4.17 Patient’s opinion for the need of relationship assistance manager

58

Through Corporate Sector

4.18 Types of Corporate 594.19 Strength of Employees 604.20 Companies Belief in policy “Prevention is Better than

Cure”61

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

62

4.22 Health programs which can improve the health status of employees

63

4.23 Companies want Medical Room Facility 644.24 Promotional topics which influence the corporate tie up 654.25 First expectation while visiting the clinic 664.26 Important factors for corporate tie up 674.27 Importance to various value added services 684.28 How do the companies came to know about the clinic? 694.29 Companies have tie up with Clinics 704.30 Company’s satisfaction towards the tie up 714.31 Preference of companies for the tie-up 724.32 Awareness of Apollo Clinic by the companies 734.33 Awareness for the services available in the Apollo

clinic74

4.34 Services at special price to employee’s family 75

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4.35 Companies those organize regular health checkup programs

76

4.36 Intervals when Companies organize Health checkup program

77

4.37 Expected amount spent on annual employee health checkup per employee

78

4.38 Companies prefer pre-employment health check up 79

CHAPTER 5 Findings, Recommendation and Conclusion80

5.1 Findings 815.2 Recommendations 835.3 Bibliography 84

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CHAPTER-1

INTRODUCTION OF THE STUDY

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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.

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

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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.

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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

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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.

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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.

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CHAPTER 2

INDUSTRY PROFILE

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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.

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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.

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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.

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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.

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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.

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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.

2.2.3.1 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.

2.2.3.2 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.

2.2.3.3 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.

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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.

2.2.3.4 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.

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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 dollars1991 4.82001 16.82009 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 GDP2002 5.8% 5.2%2012 7.2% (expected) 6.2-7.5% ( expected)

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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.

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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.

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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.

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CHAPTER 3COMPANY PROFILE

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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

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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.

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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.

3.1.3.1. 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.

3.1.3.2. 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.

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3.1.3.3.   Consultation

3.1.3.4. 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.

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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.

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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.

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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.

3.3.1.1. Pharmacy

3.3.2. Apollo health and lifestyle ltd.:

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.

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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 added convenience, the Pharmacy also offers free home delivery. Medicines are stored in controlled environment at right temperature

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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.

3.3.2.1. 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.

3.3.2.1.1 Range of Services

3,3.2.1.1.1. 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

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Dentistry

OPD

Surgery

Urology

Nephrology etc.

3.3.2.1.1.2 Diagnostic Services:

3.3.2.3. Department for Women Care

The department of Gynecology offers comprehensive services to women with the support of other disciplines. The department is staffed by expert consultants.

3.3.2.3.1. Family planning

Counseling IUCD insertation Laparoscopic sterilization

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24 hrs.lab services E.M.G.Digital X-Ray N.C.StudyUltrasound PFTColour Doppler Echo CardiologyE.C.G. Treadmill Test(T.M.T)E.E.G. Mammography

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3.3.2.3.2. Complete care for pregnant women

Pre pregnancy counseling Early pregnancy assessment Prenatal diagnosis Obstetric ultrasonography Doppler study

3.3.2.3.3. 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.

3.3.2.4. 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

3.3.2.5. 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.

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

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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

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.

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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.

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

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

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

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CHAPTER 4

ANALYSIS AND INTERPRETATION

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4.1 How do the patients came to know about the clinic

Belief Respondent PercentageFriends 4 12.12

Relatives 4 12.12T.V. ad 2 6.06Banners 0 0

News paper 0 0Leaflet 0 0Radio 0 0

Internet 0 0Direct contact 23 69.69

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4.2 Number of times patients visited the clinic

Respondent PercentageOnce 19 59.37Twice 3 9.37

More than twice 11 34.37

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4.3 Rating of the services given by the staff

Rating Respondent Percentage1 1 3.032 1 3.033 1 3.03

4 16 48.485 14 42.42

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4.4 Rating of the influencing factors to come to the clinic

Distance 84 17.14Brand name 115 23.46Price 76 15.51

All type of services 116 23.67

Reputation of Doctor 99 20.20

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4.5 First expectation while visiting the clinic

Expectation Respondent PercentageCleanliness 12 36.36Consultancy 13 39.39

Good parking 1 3.03

Service availability 7 21.21

Well-furnished room 0 0

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4.6 Importance of physical comfort or ambiance in clinic

Belief Respondent PercentageVery important 20 60.60Important 13 39.39Less important 0 0No importance 0 0

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4.7 Patients preference to communicate with doctors

Types Respondent PercentageTele communication 4 12.12Personal communication 29 87.87

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4.8 Preference for appointment before visiting the clinic.

Belief Respondent PercentageYes 31 93.93No 2 6.06

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4.9 Satisfaction of patients towards doctor's treatment

Belief Respondent Percentage

Yes 32 96.96

No 1 3.03

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4.10 Requirement of updates of a new medical services

Belief Respondent PercentageYes 29 87.87No 4 12.12

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

Belief Respondent PercentageYes 32 96.96

No 1 3.03

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4.12 Awareness towards Healthcare Packages.

Belief Respondent Percentage

Yes 6 18.18

No 27 81.81

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

Belief Respondent Percentage

Yes 29 87.87

No 4 12.12

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4.14 Patient's satisfaction towards location of the clinic.

Belief Respondent PercentageYes 26 78.78No 7 21.21

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4.15 Patient's satisfaction towards waiting time

Belief Respondent PercentageYes 18 54.54No 15 45.45

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

Belief Respondent PercentageYes 29 87.87No 4 12.12

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

Belief Respondent PercentageYes 32 96.96No 1 3.03

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Analysis through Corpporate Sector

4.18 Types of Corporate

Type Respondent PercentagePrivate LTD 6 50Public LTD 4 33.33Govt. 2 16.66

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4.19 Strength of employees

Strength Respondent Percentage

>20 5 41.6620 to 50 2 16.6650 to 100 4 33.33

<100 1 8.33

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4.20 Companies belief in policy prevention is better than cure

Belief Respondent Percentage

Yes 12 100No 0 0

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

Belief Respondent Percentage

Yes 12 100No 0 0

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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 33.33On site check up 4 33.33

Rehabilitation center 0 0Vaccination camp 0 0

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4.23 Companies want Medical Room Facility

Belief Respondent Percentage

Yes 1 8.33

No 11 91.66

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4.24 Promotional topics which influence the corporate tie up

Topics Respondent Percentage

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

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4.25 First expectation while visiting the clinic

Expectations Respondent PercentageCleanliness 6 50Consultancy 3 25Good parking 0 0

Service availability 2 16.66

Well furnished room 0 0

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4.26 Important factors for corporate tie up

Availability 39 11.71Brand 45 13.51Distance 40 12.01Price 63 18.91Quality 49 14.71

Reputation of doctor 40 12.01Services 57 17.11

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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

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

Factors Respondent PercentageAdvertising 6 50

Direct marketing 0 0

Events and experience 3 25Personal selling 1 8.33

Publicity and public relation 2 16.66Sales promotion 0 0

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4.29 Companies have tie up with any hospital or clinic

Belief Respondent Percentage

Yes 1 8.33No 11 91.66

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4.30 Company’s satisfaction towards the tie up

Belief Respondent PercentageYes 1 100No 0 0

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4.31 Preference of companies for the tie-up

Belief Respondent Percentage

Yes 1 8.33

No 11 91.66

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4.32 Awareness of Apollo Clinic by the companies

Belief Respondent PercentageYes 7 58.33No 5 41.66

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4.33 Awareness for the services available in the Apollo clinic

Belief Respondent PercentageYes 3 25No 9 75

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4.34 Services at special price to employee’s family

Belief Respondent PercentageYes 10 83.33No 2 16.66

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4.35 Companies those organize regular health checkup programs

Belief Respondent Percentage

Yes 8 66.66

No 4 33.33

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4.36 Intervals when Companies organize Health checkup program

Duration Respondent PercentageMonthly 0 0Annually 7 87.5When needed 1 12.5

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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

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4.38 Companies prefer pre-employment health check up

Belief Respondent PercentageYes 10 83.33No 2 16.66

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CHAPTER 5

FINDINGS

AND

RECOMMENDATIONS

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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.

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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. 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.

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5.2 Recommendations

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.

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5.3Bibliography

1. Marketing Management 11th edition by Phillip Kotler2. http://www.apollohospitals.com/home.htm 3. www.Google.com 4. Ebook - The Chartered institute of marketing.5. http://en.wikipedia.org

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