Marketing MIX strategy completed solutions for Saigon hospital of cosmetic surgery

GaBBA-SP0109 Po Yan – Hong Nhung – Kim Oanh MARKETING MIX STRATEGY COMPLETED SOLUTIONS FOR SAIGON HOSPITAL OF COSMETIC SURGERY CAPSTONE PROJECT REPORT Group No.: 7 Class: GaBBA-SP0109

GaBBA-SP0109

Po Yan – Hong Nhung – Kim Oanh

MARKETING MIX STRATEGY COMPLETED SOLUTIONS FOR SAIGON HOSPITAL OF

COSMETIC SURGERY

CAPSTONE PROJECT REPORT

Group No.: 7

Class: GaBBA-SP0109

HO CHI MINH CITY 2013

ACKNOWLEDGEMENT

We take this opportunity to express my profound gratitude and deep regards to our group’s Instructor, Ms Le Thi Thu Ha, MBA for her dedicated guidance, monitoring and constant encouragement throughout the course of this Capstone project

We also take this opportunity to Griggs University officers for their assistance, constant encouragement during the period of our assignment

Lastly, our group would like to express a deep sense of gratitude to Saigon Hospital of Cosmetic Surgery for cordial support, valuable information and guidance, which helped us

in completing this task through various stages

Once again, we are grateful for all guidance, assistance and cooperation to make this Caption project possible

ABSTRACT

This project is intended to provide a Marketing Mix strategy completed solutions for Saigon Hospital of Cosmetic Surgery – a reliable and reputed cosmetic hospital in Ho Chi Minh City

It has been found that Saigon Hospital should target the main market aged from 16 to 65, having upper incomes, living in Vietnam, and ready to pay for personal beauty services The marketing objectives are: wining new customers, maximizing profit and increasing awareness of the brand name up to 50% of the target market

The information in the project has been sourced from company's hard copy materials, textbooks and online research results We also created an online survey to collect customer’s opinions about cosmetic surgery trend

In order to provide useful solutions, a SWOT analysis has been carried out for the brand and organization, the target market segmentation has been identified and defined, and marketing objectives have been set Finally, completed solutions for Marketing Mix Strategy are set in the final chapter

of Examinations The source of any picture, map or other illustration is also indicated, as is the source, published or unpublished, of any material not resulting from our group experimentation, observation or specimen-collecting

ORGANIZATIONAL CONTACT INFORMATION

1 Organization Information

Name: Saigon Hospital of Cosmetic Surgery

Address: 97B Nguyen Du, Ben Thanh Ward, District 1, Ho Chi Minh City, Viet Nam Tel: (84.8)-3829-1342 or 3829-2571

Website: http://www.thammysaigon.com

Annual Operating Budget:450 – 500,000,000 VND (exclude machine purchase cost) Logo:

2 Project Liaison Information

Name: Le Thuy Ngoc Phuong

Title:Chief Accountant

Phone: (093) 317 1008

Fax: (84.8) 3823 9461

Email:ngocphuong3110@yahoo.com

INTERNSHIP DEPARTMENT

We share an office with 3 other people in a fairly generic modern 3-storey office building

at the central of city At a modern hospital, it is decorated by many huge mirrors and picture of beautiful lady Not only my office, all other parts of the hospital are decorated with potted trees, so an overview of the hospital atmosphere is always considered as a luxury resort than the average hospital often filled with odor Not only our office, all other parts of the hospital are decorated with potted trees, so an overview of the hospital atmosphere is always considered as a luxury resort than a hospital normal smelled drugs

We work together in the marketing department and were given the task of pushing forward the strategy of hospital image to customers To understand the working process and the shortcomings of the hospital, we almost had to start with the most preliminary steps Three people were assigned to three different arrays The first is the reception, to make customers see the comfort and natural as they are being at familiar places, the employee should take actions and saying something Following the consultation, depending on the personality of each person, the staff should handle the situation so clever Finally, customer care, learn what they need and want to get the feeling of interest as acquaintances of the family

After work each week we will have a meeting to report the situation to the hospital and give a reasonable measure of customer care daily inside to advertise events monthly defended hospital

LIST OF FIGURES AND TABLES

FIGURES

Figure Page

Figure 2.1 Percentage of customer by age 8

Figure 2.3 The Level of Brand awareness for Saigon Hospital of Cosmetic Surgery 13

Figure 2.4 The Brand awareness of Cosmetic surgery hospitals in HCMC 13

Figure 3.1 The Price competition among Hospitals of Cosmetic surgery in HCMC 16

Figure 4.3 Nielsen report on comparative effectiveness TV and Online Video Ad v

TABLES

Table Page

Table 1.1 Saigon Hospital of Cosmetic surgery Income Statement in 2009, 2010 and 2011 ii

Table 2.2 Prices of Cosmetic surgery services at some famous Hospitals in HCMC iii

Table 3.1Several common cosmetic surgeries at Saigon Hospital of Cosmetic surgery ii

TABLE OF CONTENT

ACKNOWLEDGEMENT a ABSTRACT b STATEMENT OF AUTHORSHIP c ORGANIZATIONAL CONTACT INFORMATION d INTERNSHIP DEPARTMENT e LIST OF FIGURES AND TABLES f TABLE OF CONTENT g

INTRODUCTION 1

CHAPTER 1: INTRODUCTION OF SAIGON HOSPITAL OF COSMETICS SURGERY 3

1.1 BACKGROUND 3

1.2 SCOPE OF BUSINESS 3

1.3 MISSION - VISSION 3

1.4 OUTSTANDING ACHIEVEMENTS 4

1.4.1 Dr Nguyen Xuan Cuong – Competitive advantage from personal brand 4

1.4.2 Saigon Hospital of Cosmetic surgery 4

1.5 EVALUATION OF OPERATING RESULTS 4

CHAPTER 2: GENERAL OVERVIEW OF MARKETING SITUATION AT SAIGON HOSPITAL 6

2.1 SITUATION ANALYSIS 6

2.1.1 SWOT analysis 6

2.1.2 Market analysis 7

2.1.2.1 Market segmentation 7

2.1.2.2 Market trend 8

2.1.2.3 Market growth 9

2.1.3 Customer analysis 10

2.1.3.1 Target customer 10

2.1.3.2 Customer needs and wants 10

2.1.3.3 Customers’ decision process 10

2.1.4 Competitors analysis 10

2.2 COMPETITIVE ADVANTAGES 12

2.2.1 Product 12

2.2.2 Personal brand 12

2.3 HOPITAL’S CURRENT MARKETING OPERATION EVALUATION 12

CHAPTER 3: MARKETING MIX (7Ps) STRATEGY AT SAIGON HOSPITAL OF COSMETIC SURGERY 15

3.1 PRODUCT STRATEGY 15

3.2 PRICE STRATEGY 15

3.3 PLACE STRATEGY 16

3.4 PROMOTION STRATEGY 17

3.4.1 Advertisement 17

3.4.1.1 Mass media 17

3.4.1.2 Online advertising 18

3.4.2 Sales promotion 18

3.4.3 Public relation 18

3.5 PEOPLE STRATEGY 19

3.6 PROCESS STRATEGY 19

3.7 PHYSICAL EVIDENCES 20

3.7.1 Staff ambience 20

3.7.2 Professional and comfortable environment 20

3.8 CUSTOMER CARE SERVICES 21

CHAPTER 4: DEVELOPMENT MARKETING MIX COMPLETED SOLUTIONS FOR THE SAIGON HOSPITAL OF COSMETIC SURGERY 22

4.1 HOSPITAL MARKETING ORIENTATION 22

4.2 MARKETING OBJECTIVES 22

4.3 COMPLETED SOLUTIONS FOR MARKETING MIX STRATEGY 23

4.3.1 Product strategy complements 23

4.3.2 Price strategy complement 23

4.2.2.1 Objectives of Pricing 23

4.2.2.2 Suitable strategies for pricing 23

4.3.3 Promotion strategy complements 24

4.3.3.1 Advertising 24

4.3.3.2 Sales promotion 28

4.3.3.3 Public Relationship 30

4.4 CUSTOMER CARE SERVICE ENHANCEMENT 30

CONCLUSION 33

APPENDICES i

ORGANIZATIONAL CHART i

TABLES ii

FIGURES iv

SURVEY QUESTIONS SAMPLE vi

REFERENCES i

INTRODUCTION

Today, marketing plays such an important role in the success of business It contributes to create product awareness, attract customer attention, and establish strong customer relationship and building a good image in public relation Successful marketing will affect most aspects of a business The overall marketing definition covers advertising, public relations, promotions and personal sales Without marketing, even though a business offers the best products or services, none of potential customers would know about it In addition, the appearances of new brand names and constantly changing customer demands have created a fierce underground competition in marketing among companies

Hence, to exist and develop, a company must have right and suitable business operational plans which include marketing strategy To have its marketing activities developed in correct ways and achieved long-term effectiveness, the company must develop a marketing strategy in the most comprehensive manners By doing this, company can approach potential customers, identify their needs and wants in order to offer them the right product

at a right time

1 STATEMENT OF THE PROBLEMS

Along with the growth of economy, there was the introduction of a variety of products as well as superior services which bring utility and the best support to human in different ways, especially in the field of beauty care With the advent of private cosmetic surgery hospitals, demand of cosmetic services is also increasing day by day The private hospitals have raised more competitiveness among the cosmetic hospitals and promote its marketing activities Marketing is a "bridge" for the hospital to understand the needs of the patient, and vice versa, the patient will know the strengths of the hospital in order to make decision From then, the hospital will have the effective development-oriented, satisfy customers' expectations and improve its competitive advantages

After studying the development of cosmetic surgery industry in Vietnam and the marketing activities of cosmetic hospitals today, we have identified the necessary and effectiveness of marketing activities for the cosmetic surgery hospital Our group chose the topic

Surgery" to study about current marketing operation of the hospital and recommend the

most effective solutions to complete its marketing mix strategy

2 METHODOLOGY

Data collection: Our group research methodology requires gathering relevant data from the

specified documents (hard copy materials from the company) and compiling databases (Saigon Hospital of Cosmetic surgery’s website, Google, Wikipedia etc.) in order to analyze the material and arrive at a more complete understanding of current market and Saigon Hospital’s situation

Survey instrument: In addition, we developed ideas to created online survey to get

customers' opinion as well as information about trends and attitudes towards cosmetic surgery in community

Base on all the information that we had, we made SWOT and current Marketing mix (7Ps) analysis Then, we analyzed financial statement reporting in recent years to find out how much organization spent on marketing to choose the particular data for evidence and example using in the project Finally, base on all relevent information, we developed a marketing plan which would improve Saigon Hospital’s problems

3 PURPOSE OF THE PROJECT

The specific aims of the study are to:

- Study and evaluate current marketing situation of Saigon Hospital of Cosmetic surgery

- Recommend solutions to complete and improve marketing activities for Saigon Hospital

4 SCOPE OF THE PROJECT

This study focuses on analyzing marketing activities and relevant elements of Saigon Hospital of Cosmetic surgery Marketing analysis has been carried out in Vietnam and target customers are Vietnamese people from 16 to 65

CHAPTER 1: INTRODUCTION OF SAIGON HOSPITAL OF

Objectives and main tasks of the hospital are to give their customers the perfect outlook, and being confidence about themselves Hospital’s target segment is customers who are from 16-65 and have demand for cosmetic surgery They welcome a source of patients coming from abroad through the year round from the USA, Europe, Australia, and different countries of Asia

1.2 SCOPE OF BUSINESS

Main activities of the hospital are beauty consultant, beauty care and holistic cosmetic surgery Saigon Cosmetic Hospital provides customers a holistic cosmetic service includes Face, Breast, Body, Botox & Skin and other beauty services

1.4 OUTSTANDING ACHIEVEMENTS

1.4.1 Dr Nguyen XuanCuong – Competitive advantage from personal brand

Dr Cuong has gained national as well as international recognition as a World Leader of Cosmetic Surgery of the Millennium and been famous for having over 30 years’ experience in the cosmetic surgery industry He is the only one in Vietnam who outstandingly graduated high degree of expertise in plastic surgery by the American Board

of Cosmetic Surgery and received award of "100 Best Cosmetic Surgeons", "World Leader of Cosmetic Surgery" and “1000 Great Scientists of the 21st

Century from the IBC” ( International Biographical Center)

In addition, Dr Cuong has appeared at Guest Lecturer at other International Congress of Cosmetic Surgery in many countries and he is also a member of these professional societies such as “The American Academy of Cosmetic Surgery” or “The Canadian Academy of Facial Plastic and Reconstructive Surgery”

1.4.2 Saigon Hospital of Cosmetic surgery

Saigon Hospital is always selected by readers and departments to deserve to reach the noblest awards, voted by the Central agencies, media agencies, newspapers, readers such

as “Top 10 Vietnamese Brands Golden Cup” (2006), “WTO Integration”, 7 times was voted by the readers of newspapers, agencies and media organizations function to receive

"Vietnamese brand" award (2004-2008)…etc It also was awarded as an excellent hospital

in two consecutive years from 2009 to 2010 by Ho Chi Minh City Department of Health

1.5 EVALUATION OF OPERATING RESULTS

According to Financial Statement, even though Saigon Hospital gained a lot of awards during operation time, it lost over 500 million in 2 recent years (2011, 2010) (Figure 1.1) This raises a question “Why it has strength in competitive advantage from personal brand and the most modern facilities, it still cannot gain profit?” This problem could be seen as a manner challenge for the hospital at this time

The point is that it has not focus highly in such marketing activities as advertisement, promotion and customer services The rapid development and fierce competition among

new brands has attracted customers, especially Vietnamese, who are easily impressed by interesting advertisements And, although the hospital has served more foreign clients in recent years, it got a significant decline in the number of local clients

Therefore, to persuade customers coming back, Saigon Hospital needs to make current situation analysis then select and approach to improve strategic marketing being in accordance with its operation

CHAPTER 2: GENERAL OVERVIEW OF MARKETING SITUATION

AT SAIGON HOSPITAL

2.1 SITUATION ANALYSIS

2.1.1 SWOT analysis

Strengths

- Located in a very convenient location in district 1

- Being the first hospital of cosmetic surgery in Vietnam licensed by the Health Ministry in October 2003

- Having solid experience,skilled and well trained surgeons in cosmetic and plastic surgery headed by Professor Nguyen XuanCuong MD Team of doctors perform surgery often highly specialized training abroad

- Regularly updating the knowledge and latest techniques of the world to serve the customers' benefits at the highest level

- Cosmetic surgery techniques beyond peak times

- Hospital rooms are fully equipped, comfortable

Weaknesses

- Not yet a top-of-mind brand

- Lack of professional operation which leads to discrete organization

- Concentrating on service quality and not so much on customer relationship

- Have not fully noticed on making a successful marketing strategy

- Poor promotion campaigns

- The cost is higher than other competitor’s cost in general

Opportunities

- Both men and women are now more open-minded about cosmetic surgery

- The age of customers is increasingly younger

- The demand of being more beautiful has been increasing at both genders

Threats

- More competitors with low price,aggressive promotion

- The increase government income taxes

- Increasing cost of cosmetics materials and other equipments

- There are technical movements and the use of new technology instruments

- Some traditional and technological beauty culture methods are expired

- The recession issue is having effect on the people's decision for coming to cosmetic surgery

- Scandals about the cosmetic disaster or the carelessness of doctors lead to some serious circumstance have been worried people having demand for cosmetics surgery

2.1.2 Market analysis

Evaluating the current market situation is most helpful to understand specific needs and wants of potential customers, how to serve them, how to attract more market share and the leverage situation of Saigon Hospital of Cosmetic Surgery

 Demographic

Cosmetic surgery is a kind of service for all age groups from 16 to over 65 regardless their occupation

Age

Percentage of customer by age

The pie chart shows the amount of customer coming to cosmetic hospital each year Overall, it can be seen that the group of customers from 35- 50 accounted for the majority

of the total clients while group of customers below 18 years old just took a tiny proportion (1%)

2.1.2.2 Market trend

Cosmetic surgery is now no longer exclusive service for music stars, movies stars or models People are now more open to than previous generations Recently, more and more young customers and employees come to cosmetic services and the customers' ages are increasingly much younger The current trend is Korean cosmetic surgery and it attracts a large number of young adults and teenagers

Figure 2.2 (Source: Survey result, 2013)

Customer attitudes toward Cosmetic surgery

Based on the survey result, customers nowadays are more open-minded about cosmetic surgery issue, and pay more attention to personnel beauty As it can be seen on the pie chart, more than half of them accept an artificial beauty and are willing to choose cosmetic surgery in case of necessity to make their appearance more perfect Only a handful of respondents do not agree with cosmetic surgery

2.1.2.3 Market growth

Vietnam's plastic surgery industry is achieving miraculous growth in recent years The cosmetic services popular among young people today are breast augmentation, nose lift, eyelid surgery, chin reshaping

Dr Le Hanh - Head of Plastic & Aesthetic Department of Cho Ray Hospital - estimated each year Vietnam has about 100,000 customers get cosmetic surgery services Of these, about 6,500 women breast augmentation, the majority of clients are women aged 20-35, followed by 35-50 year-old women, and even some women over 60 years old

57 33

Accept but will not choose cosmetic surgery

Do not accept The natural beauty is still the best

2.1.3.2 Customer needs and wants

According to survey’s result, our group has found most of customers expect to have aperfect outlook, and to be more confidence about themselves In addition, some of them decide to get cosmetic surgery since they want to change their fatality

2.1.3.3 Customers’ decision process

Around 50% of women consider about their beauty due to changes in society Educational level, income, social class, occupation, relationship and feelings most affect to women to pay more attention on their beauty

2.1.4 Competitors analysis

Table 2.1 below shows the comparison among famous Cosmetic hospitals in Ho Chi Minh City Each of them has its own strengths in technology and experience

Table 2.1

Comparison among Hospitals of Cosmetic surgery in Ho Chi Minh City

The Saigon Cosmetic Surgery Hospital

Jeong Won KoreaCosmetic Surgery Hospital

Cosmetic Surgery & Skin Care Clinic Dr.Tu

A-Au Cosmetic Surgery

Hospital Highlight - Managed by Professor

Nguyen Xuan Cuong(MD)

- The first hospital of cosmetic surgery in Vietnam licensed by the Health Ministry

- Managed by Dr.Nguyen Phan Tu Dung (MD, PhD)

- Each doctors take responsibilities in some different distinct techniques

- Managed by Dr Tran Thi Anh Tu (MD, PhD)

- Solid experience in cosmetic surgery

- Depth experience for more than thirty years

- High aesthetic standards

of skilled medical professional

- Laser “AFFIRM”

technology (wrinkles, remove acne scars, skin rejuvenation)

- "Double Waves" Cynergy Laser

- Imported 100% from South Korea (Panorama

Radiography, X-ray Cephalo Radiography,V-line Ultrasonic Bone Cutter)

- PRP technology Rich Plasma)

(Platelet Thermage CPT (USA)

- Laser RevLite (USA);

Laser Cooltouch; Laser Pixel

- Trinitri, Matrix IR, RF…

- The top Mammography FFDM technology in the world,

- Laser modern leading technology, Laser VBeam Perfecta,

- Trinitri, Matrix IR, RF

- Fat breast implant

- Fat butt implant

- Fat surface implant

- Removal surgery of silicon from the chest, nose, breast augmentation

- Full Body Liposuction

- Bat Ear Correction

- Dermabrasion

- Eyelid surgery

- Fat breast implant

- Fat surface implant

- Nose Reshaping

- Chin Surgery

Price competition analysis: As we can see, there is an underground competition about

price among cosmetic hospitals Actually, price for cosmetic services at Saigon Hospital is

a bit higher than other components (seeTable 2.2 –Appendices)

2.2 COMPETITIVE ADVANTAGES

2.2.1 Product

The point that makes Saigon hospital remarkably different from the others is that combining acupuncture anesthesia techniques to reduce pesticide residues in breast lift surgery, liposuction and facelifts which have demonstrated the success of this technique in the GPTM Conference in Japan 11/2005 In addition, it is also the 1st Cosmetic hospital which has got successful applying new technologies in cosmetology

2.2.2 Personal brand

Saigon Hospital of Cosmetic surgery has competitive advantages firstly thanks to the reputation of Dr Nguyen XuanCuong, who was honored to receive many prestigious international awards Secondly, the hospital received valued prizes in many years Itisalso equipped with the most complete facilities with high technology, advanced techniques in service and emergency patients Thus, it guarantees a very high level of safety for patients

In short, skillful hand of Dr Cuong and doctor team, long-standing brand and all of these awards has made Saigon Cosmetic Surgery has a lot of competitive advantages in beauty industry

2.3 HOPITAL’S CURRENT MARKETING OPERATION EVALUATION

During recent years, from 2010 to 2013, the hospital had implemented some promotional activities to bring name of hospital closer to potential customers However, these activities have not brought the desired effects It is very easy to see that the number of visitors come

to the hospital are not regular, the customers only be crowded in the special day such as Wednesday, Thursday or Friday, while the rest may not have any surgery

Figure 2.3 (Source: Survey result, 2013)

The Level of Brand awareness for Saigon Hospital of Cosmetic Surgery

As it can be seen from the Figure 2.4, over 60% of respondent do not know about Saigon

Hospital This shows that the marketing department has conducted advertising strategies

are not well

The Brand awareness of Cosmetic surgery hospitals in Ho Chi Minh City

Unknown 63%

Know 37%

Level of Brand awareness for Saigon Hospital of Cosmetic Surgery

Cosmetic Surgery & Skin Care Clinic Dr.Tu

Jeong Won - Vietnam Cosmetic Surgery Center Saigon Cosmetic Surgery Hospital

Others

When comparing brand awareness among Cosmetic hospitals in Ho Chi Minh City (Figure 2.5), Saigon hospital only took 25% while it was 37% for Cosmetic Surgery & Skin Care Clinic Dr Tu Once again, marketing solution should be implemented to increase the brand awareness of customers

CHAPTER 3: MARKETING MIX (7Ps) STRATEGY AT SAIGON

HOSPITAL OF COSMETIC SURGERY

3.2 PRICE STRATEGY

It is one of the most prominent elements in the marketing mix Price charged must be able

to target customers and it should co-ordinate with other elements of the marketing mix Price at Saigon Hospital usually depends on particular cosmetic service prescribed by the respective consultants and the facilities offered to the clients It is revised every year depending on the change in technology as well

Premium pricing

Saigon Hospital comes to this method to positioning Saigon Hospital is a high quality cosmetic surgery hospital in the market With this strategy, the hospital will price all services at a higher level than other competitors to helps affirm its quality, image and brand In addition, customers often use price as one of quality measurements: high price means high quality or high value

Therefore, when coming here, customers will feel assured and comfortable from the best services, modern facilities and equipment The hospital is committed to making clients feel completely satisfied with their spending amount

As it can be seen from the chart below (Figure 3.1), the prices of aesthetic services in the Saigon Hospital are higher than other competitors’

The Price competition among Hospitals of Cosmetic surgery in Ho Chi Minh City

3.3 PLACE STRATEGY

The place part in marketing mix is where customers receive product or service Place plays

an important role in tangiblizing service offering A good and convenient location could make customer have sympathy for a business

Saigon Hospital of Cosmetic surgery is located at 97B Nguyen Du, District 1, Ho Chi Minh City, opposite Reunification Palace This is an extremely convenient location in the heart of District 1 where is the most important commercial center, trading and administration of the city Location wide and airy with trees in the Reunification campus and is next to Tao Dan Park Hence, Saigon cosmetic surgery hospital becomes a nursing home with the best comfort for customers (see Figure 3.2 – Appendices)

Breast Augmentation

Eyelid surgery Nose lift Liposuction Chin implant

Jeong Won Cosmetic Surgery

Uc Chau - Korea Cosmetic Surgery

Saigon Hospital Of Cosmetic Surgery

3.4 PROMOTION STRATEGY

3.4.1 Advertisement

It have been found that throwing a lot of money at one advertising medium and one advertising campaign idea can be a costly mistake The hospital may need to try several different types of campaigns and advertising mediums before they identify the best solution for marketing a new service

3.4.1.1 Mass media

 Magazines

The hospital use the method published articles on some popular magazines such as The Gioi Van Hoa, The GioiPhu Nu, DoanhNhan 24h The content is often the interviews with Dr Nguyen XuanCuong to answer customers' questions, or share experiences and relevant information about cosmetic surgery

This method is considered indispensable in advertising strategy of hospital operations in recent years It supports to approach the potential customers who belong to the middle and upper class with high rates because most of them tend to prefer reading magazines than online media Moreover, in places where people are not allowed to use the internet as on the plane and in hospitals, customers will take the time to read magazines to relax Averagely, for one month, the hospital spent about 30 million for advertisements in