Presented To - Prof. Supriya Bhutiyani: Applying Service Marketing Concepts

SLIMS
Applying
Service Marketing Concepts
Tarang Baheti
99259 23222
12/21/16
Presented to Prof. Supriya

Bhutiyani
Indian
Healthcare
Sector
2
SLIMS
12/21/16
Rapid Expansion.
3
Healthcare is one of Indias largest sectors, in terms of

revenue and employment, and the sector is expanding
rapidly.
The sector is more than $34 billion, translates to $34

per capita, or roughly 6% of GDP.
This year, Indias healthcare sector is projected to grow to

nearly $40 billion.
The private sector accounts for more than

healthcare spending in India.
One driver of growth in the healthcare sector is Indias

booming population
SLIMS
80% of total
12/21/16
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12/21/16
Expanding Middle Class-An

opportunity
By 2025, an estimated 189 million Indians will be at least

60 years of agetriple the number in 2004, thanks to
greater affluence and better hygiene.
The growing elderly population will place an enormous

burden on Indias healthcare infrastructure.
Expanding middle class-
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12/21/16
Changing Scenario of Service

6
More women are entering the workforce as well, further

boosting the purchasing power of Indian householdschanging composition of healthcare sector workforce.
Many of these women are highly educated: the ratio of
women to men who have a college degree or higher
level of education is 40:60
Lifestyle diseases are faster than infectious diseases in
India
Result - increase in cost per treatment, wellness
programs targeted at the workplace.
Could help to reduce the rising incidence of lifestyle
diseases.
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12/21/16
Service Marketing Mix

In Different view
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12/21/16
PriceThe government uses price controls to ensure that

vital drugs are affordable to the Indian population. It
is an ongoing challenge to balance the commercial
interests with the broader social objective.
Physical environmentThe physical infrastructure is woefully inadequate

to meet todays healthcare demands, much less
tomorrows. Of the 15,393 hospitals in India in 2002,
roughly two-thirds were public.
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12/21/16
PlaceThe number of public health facilities also is

inadequate. For instance, India needs 74,150
community health centres per million population
but has less than half that number. In addition, at
least 11 Indian states do not have laboratories for
testing drugs, and more than half of existing
laboratories are not properly equipped or staffed.
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12/21/16
10
Place
Telemedicinethe remote diagnosis, monitoring
and treatment of patients via videoconferencing or
the Internet. Telemedicine is a fast-emerging trend
in India, supported by exponential growth in the
countrys information and communications
technology (ICT) sector, and plummeting telecom
costs.
Many hospitals have developed public-private
partnerships (PPPs), among them Apollo, AIIMS,
Narayana Hridayalaya, Aravind Hospitals and
Sankara Nethralaya for Telemedicine.
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12/21/16
Do Bharat baste hai India mein

11
Process
The healthcare divide- When it comes to
healthcare, there are two Indias: the country that
provides high-quality medical care to middleclass Indians and medical tourists (25% Indians),
and the India in which the majority of the
population lives with no access to quality care.
Mission- the government is working to increase
the capabilities of primary medical facilities in
rural areas- free medicines.
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Promotion
The emergence of India as a destination for
medical tourism leverages the countrys well
educated, English-speaking medical staff, stateof-the art private hospitals an diagnostic
facilities, and relatively low cost to address the
spiralling healthcare costs of the western world.
Western tourists coming to India to pursue
Ayurveda (Kerala).
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13
PEST Analysis.
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12/21/16
Political Analysis:
The government is reducing its hold on
subsidies.
There are particular pressure groups
which tend to have an influence on
government hospitals
The cost of medicines also tends to affect
hospitals besides affecting the
pharmaceutical industries
Relationships between neighboring
countries also affect the hospital sector
15
Economic Analysis:
Increase in income would lead to an increase
in the standard of living. Thus peoples
lifestyles changes and health is better
understood. Thus there is a room for
specialized treatment, doctors, and hospitals
Government has made loans easily available
and thus people with limited means could
avail better/specialized treatment
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12/21/16
Social Environment Analysis:

Medical facilities have increased since there is
more awareness of healthcare among the
population
Certain percentages of beds have to be kept for
poor people. E.g. in Bombay 20% of beds has to
be kept reserved for poor people.
Look after the needs of local poor people.
Teach hygiene, sanitation among the poor
masses.
Safe disposal of hospitals wastes like used
injection needles, waste blood etc. and taking due
care of environment.
17
Technological Environment Analysis:

Breakthrough innovation in the field of
specialized equipment
Communication has managed to bridge the
gap between places located at long distances
Test tube babies
Mobility of medical services
Mobile phones, credit cards (for payment
purposes) etc have made doctors and
medical facilities easily available
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12/21/16
CHARACTERISTICS OF
HOSPITAL INDUSTRY
1) Intangibility: Health care services being

highly intangible, to beat this intangibility the
irony of modern marketing takes place such as
use of more tangible features to make things
real and believable.
Ways to overcome this drawback:

Visualization: The industry has to make
available visualization so that, search and
experience qualities are crystallized.
E.g. Press releases, distribution of brochures
and leaflets, newsletters, digital marketing and
media campaigning.
19
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12/21/16
2) Inconsistency: Quality of service offered differs from one

extreme to another. This is because of total dependence on
human interactivity or playing human nature, i.e. because
human beings can never mechanize or replicate themselves.
Training: A scheduled Training of the employees in respect of

the work/service can prove to be the best solution to this
drawback.
E.g. American Medical Association makes it mandatory for its

member doctors to undergo 6 weeks of training every year or
6 month of training every 6 years.
Automation: The service providers analyze that, human

quality deteriorates with repetition of work; this has an ill
effect during the final delivery of the service.
E.g. Automatic blood testing equipments ensuring safety and
3) Inseparability: Service transaction becomes unique

because it mandates, during transaction, the physical
presence of the provider and the consumer.
Training: This is the best way out for the setback. As the
provider of one service can not be made available at two
different places at the same time if the situation demands
so, unlike, in the case of products where the producer of the
same need not be present at all times where the
transaction takes place.
E.g. Wockhardt & Duncans Gleneagles International as set

up a dedicated teaching centre for paramedics, particularly,
nurses and also provide higher-end courses for doctors.
4) Perishability: Services are intangible, they

cannot be packed & neither can be stored nor can
they be inventoried. The implication is that the
service has to be produced and consumed
instantly; there is no scope of storage.

Managing demand & supply: That is to say
that, there has to be provision for all sorts of
stipulations at all times to the greatest possible
extent.
E.g. Service developments according to market
needs.
Service Flower
CORE PRODUCT
Treatment of human ills
EXPECTED PRODUCT
Infrastructure to support reasonable number of beds
Operation theatres
Equipments like Cardio-respiratory supportive equipment
AUGMENTED PRODUCT
Ambience:
Central Air-conditioning
Automation equipments (X-Ray Scanners, Printers, Photo Scanners, etc
25
Blueprint.
SLIMS
12/21/16
CRM
CRM
Vision
CIMS International Patient

Services Team will take care of
the
following:
Appointment
Scheduling
Treatment Packages in Advance

Visa Assistance*
Airport Pick-n-drop facility
Hotel reservations assistance
International newspapers
Ambulance pick-up, if required
Assistance for dining services
Follow-up assistance for future appointment
schedule after discharge
Testimonial
Our stay at the Hospital has been excellent.
Our room has been kept clean by men and women who
were very charming and who take their work seriously with
a lot of humbleness.
This group of people was a team that demonstrated to us
the warmth of this place.
This team of Doctors was just wonderful. They were more
than what I have ever seen before.
Patient & Relative: Ambale Johnston Samwel &

Obanda Jedidah Awaor
INNOVATIONS IN HOSPITAL
INDUSTRY
Auto check-in and check out

Specialty hospitals
Aromatherapy at Apollo.
Biventricular pacing.
Bone bank at AIIMS.
Hospital administration.
Medical records management.
Oxygen under pressure treatment at Apollo.
Waste management.
Telemedicine.
Virtual Hospitals
TECHNOLOGIES IN HOSPITAL
INDUSTRY
Same day OPD
Online reports
Imaging/ MRI Scan
Key Hole Surgery
Medical transcription
Biotechnology
Nanotechnology
SST: Self checking Machines/ equipments
MAJOR CORPORATE
PLAYERS
The Apollo Group of Hospitals

Fortis Healthcare
Max India
Escorts
Wockhardt & Duncans Gleneagles
International
MEDICAL TOURISM
Medical tourism (also called medical travel, health tourism or

global healthcare) 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.
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.
Leisure aspects typically associated with travel and

tourism may be included on such medical travel
trips.
Prospective medical tourism patients need to keep in
mind the extra cost of travel and accommodations
when deciding on treatment locations.
Factors that have led to the increasing popularity of
medical travel include the high cost of health care,
long wait times for certain procedures, the ease and
affordability of international travel, and
improvements in both technology and standards of
care in many countries.
PROBLEMS FACED BY THE

INDUSTRY
Low public spending on health

Lack of adequate beds in the hospitals
Lack of emphasis on prevention
Enforcing standards of medical care rendered by hospitals and
private health practitioners
Extremely low bed : people ratio
Dominated by Government and Charitable Hospitals
Excessive overlap across primary, secondary and tertiary care
Skewed towards urban populace
Lack of adequate corporatization
Insurance to provide financial protection from catastrophic
events
More research, awareness and communication and greater
public involvement in understanding health issues.
41
SWOT
SLIMS
12/21/16
Strengths
1. Low cost of production.
2. Large pool of installed capacities
3. Efficient technologies for large number
of Generics.
4. Large pool of skilled technical
manpower.
5. Increasing liberalization of government
policies.
Opportunities
1. Aging of the world population.
2. Growing incomes.
3. Growing attention for health.
4. New diagnoses and new social diseases.
5. Spreading prophylactic approaches.
6. Saturation point of market is far away.
7. New therapy approaches.
8. New delivery systems.
9. Spreading attitude for soft medication (OTC drugs).
10. Spreading use of Generic Drugs.
11. Globalization
12. Easier international trading.
13. New markets are opening.
Weakness
1. Fragmentation of installed capacities.
2. Low technology level of Capital Goods of this section.
3. Non-availability of major intermediaries for bulk drugs.
4. Lack of experience to exploit efficiently the new patent
regime.
5. Very low key R&D.
6. Low share of India in World Pharmaceutical Production
(1.2% of world production but having 16.1% of world''s
population).
7. Very low level of Biotechnology in India and also for
New Drug Discovery Systems.
8. Lack of experience in International Trade.
9. Low level of strategic planning for future and also for
technology forecasting.
Threats
1.Containment of rising health-care cost.
2. High Cost of discovering new products
and fewer
discoveries.
3. Stricter registration procedures.
4. High entry cost in newer markets.
5. High cost of sales and marketing.
6. Competition, particularly from generic
products.
7. More potential new drugs and more
efficient therapies.
8. Switching over form process patent to
product patent.
In few words...
46
The Indian healthcare sector can be

viewed as a glass half empty or a glass
half full. The challenges the sector faces
are substantial, from the need to improve
physical infrastructure to the necessity of
providing health insurance and ensuring
the availability of trained medical
personnel with the opportunities available
equally.
SLIMS
12/21/16

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SLIMS

Presented to Prof. Supriya

Healthcare is one of Indias largest sectors, in terms of

The sector is more than $34 billion, translates to $34

This year, Indias healthcare sector is projected to grow to

The private sector accounts for more than

One driver of growth in the healthcare sector is Indias

Expanding Middle Class-An

By 2025, an estimated 189 million Indians will be at least

The growing elderly population will place an enormous

Expanding middle class-

Changing Scenario of Service

More women are entering the workforce as well, further

Service Marketing Mix

PriceThe government uses price controls to ensure that

Physical environmentThe physical infrastructure is woefully inadequate

PlaceThe number of public health facilities also is

Do Bharat baste hai India mein

Social Environment Analysis:

Technological Environment Analysis:

1) Intangibility: Health care services being

Ways to overcome this drawback:

2) Inconsistency: Quality of service offered differs from one

Ways to overcome this drawback:

Training: A scheduled Training of the employees in respect of

E.g. American Medical Association makes it mandatory for its

Automation: The service providers analyze that, human

E.g. Automatic blood testing equipments ensuring safety and

3) Inseparability: Service transaction becomes unique

Ways to overcome this drawback:

E.g. Wockhardt & Duncans Gleneagles International as set

4) Perishability: Services are intangible, they

Ways to overcome this drawback:

Treatment of human ills

Infrastructure to support reasonable number of beds

Equipments like Cardio-respiratory supportive equipment

Automation equipments (X-Ray Scanners, Printers, Photo Scanners, etc

CIMS International Patient

Treatment Packages in Advance

Our stay at the Hospital has been excellent.

Patient & Relative: Ambale Johnston Samwel &

Auto check-in and check out

The Apollo Group of Hospitals

Medical tourism (also called medical travel, health tourism or

Such services typically include elective procedures as well as

As a practical matter, providers and customers commonly

Leisure aspects typically associated with travel and

PROBLEMS FACED BY THE

Low public spending on health

The Indian healthcare sector can be

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