Touch topics . . .

A brief on Marketing

The Indian Healthcare scenario Healthcare divide in India Government – An healthcare marketer

Healthcare – An entrepreneurial Venture Will not touch up on strategies for Marketing

What is Marketing ? They are all functions that link the business with customer needs and wants in order to get the right product to the right place at the right time

What is healthcare marketing ? Marketing of health-related products and services. Healthcare Marketing Wins Patients, Enhances reputation and Grows Revenues .

What is modern healthcare . . ?

It is a systematic delivery of preventive & curative care by professional & paraprofessionals A modern healthcare system is the organization of people, institution and resources to deliver healthcare services to meet the health needs of our target population

• Healthcare is one of India’s largest sectors, in terms of revenue and employment, and the sector is expanding rapidly • During the 1990s, Indian healthcare grew at a compounded annual rate of 16% • Today the total value of the sector is more than $34 billion. • This translates to $34 per capita, or roughly 6% of GDP. By 2012, India’s healthcare sector is projected to grow to nearly $40 billion.

The Healthcare scenario

India’s booming population, currently 1.1 billion and increasing at an annual rate of 2% Fastest growing economy in the world Shift from ruralization to urbanization Increasing number of hospitals in Tier-II and Tier-III cities is the major driver for private sector growth

Insurance penetration into both Private & Government sector

Limited resources of the govt. has led to private players entering the market Rise in income, today at least 50 million Indians can afford to buy Western medicines, a market only 20% smaller than that of UK.

Growth Drivers . . .

• Chronic degenerative diseases & Lifestyle diseases • While ailments such as poliomyelitis, leprosy, will soon be eliminated • Communicable diseases such as dengue fever, viral hepatitis, tuberculosis, malaria, and pneumonia, have developed a stubborn resistance to drugs. • Sub-standard housing, inadequate water, sewage and waste management systems & a crumbling public health infrastructure

Disease Assessment and Potential

Indians live more affluent lives and adopt unhealthy western diets, high in fat and sugar the country is experiencing a healthcare crisis of being the The Diabetes Capital of the World Heart Disease capital of the World

Cancer Capital of the World

Healthcare a bottomless opportunity !

Contd . . .

The Healthcare divide in India to healthcare, there are two India’s !!!

1. A country that provides high-quality medical care to middle-class Indians and medical tourists

2. 65% of the population live in rural sector who have limited or no access to quality healthcare care.

Today only 25% of the Indian population has access to allopathic medicine, which is practiced mainly in urban areas, where 2/3 of India’s hospitals are located. Many rural poor rely on alternative forms of treatment

Enormous private capital is required to enhance India’s healthcare infrastructure . India has approximately 860 beds / million population. One-fifth of the world average, which is 3,960, according to WHO An estimated 450,000 additional hospital beds required at an investment estimated at $30 billion Government to fund only 15-20% of the total, hence providing opportunity for private players to fill the gap

Healthcare Infrastructure Requirement

Healthcare - An entrepreneurial venture

New entrepreneurs setting up hospitals

New funding opportunities - Private equity participation - Venture Capitalists Expansion of footprints by existing players like; Apollo Hospitals, Fortis, Narayana, HCG . New formatted chains like Apollo Clinics, Day Care, Diagnostics, Rehab & Dental

By 2020, the Indian healthcare industry is estimated to be worth US$ 250 billion.

Top areas for Healthcare Private Equity Investment

Super Specialty / Multi specialty Hospital set up

Single specialty based Hospitals Ambulatory surgery center chains

Diagnostics, Dental, Rehab chains

Hospital information technology & health systems

Is Marketing Necessary in Healthcare Delivery ?

Government as the Healthcare Marketer

Some of the Government health campaigns that made strong impact on the society

•A very popular slogan “ Hum do Humare Do”

Why only a boy? Are these not girls For a healthy family, wait three years before your second child

Need marketing for healthcare....

1. All Hospital ventures are capital intensive - Technology & Infrastructure - Human Infrastructure 2. Breakeven are longer than other sectors

3. Technology out paces Breakeven - Cost of technology - Technology getting obsolete 4. Top line, bottom line, EBIDTA, Net profits , P&L, Balance

sheet , Market Capitalisation , Stock prices all have become relevant

Do we need marketing for healthcare ?

Yes. . .

- Create a critical mass for consumption - Generate a strong need for hospital related services - Match aggressive competition - Penetrate insurance products & services - Market destinations for healthcare in global markets

- Make hospital venture a profitable Investment.

-

Healthcare

Market

Hospital mktng connects patients

physicians & providers

The doctor is the biggest factor for

retention of customer

Healthcare mktng wins pts

to grow its revenue & reputation

Hospital mktg also has a TG,

Needs & mission

Compassionate healthcare is what hospital

mktg does

Its about creating a positive

experience

What does healthcare marketing do. . .

Healthcare Marketing is Unique

• Some resistance to change as it is relatively new • No real way to measure return on investment • Legal barriers • Propensity to spend is extremely less.. • Most decisions are not made by the end user • Price most often is not a factor • Product information difficult to convey • Provider differences are unclear

Dynamics in healthcare. . .

• Unorganized sector to Organized Sector

• Curative approach to Preventive approach

• Out of pocket payments to Insurance or employer paid

• Doctors concentrated in urban areas to increased competition in urban areas

• Break even from 7 yrs to 3yrs .

• Lack of system & accountability to increased emphasis on systems & accountability

• No quality check on service to Consumers demand quality

Product

Price

Place

Promotion

People

Process

7 th P of Marketing

Physicians

The Indian healthcare sector can be viewed as a glass half empty or a

glass half full.. For companies that view the Indian healthcare sector as a glass half full, the potential is enormous.

Hence, Healthcare marketing is a necessity !!!

Conclusion

.

Thank you!