marketing plan and marketing strategy for hiep thanh clinic

Base on the overload situation of healthcare services in Ho Chi Minh City and the potential of this service market, Hiep Thanh clinic was founded in 2009 by Dr Nguyen Thanh An, located

I declare that this final project contains no material that has been accepted for the award of any other degree of diploma in any university or other institution and contains no material previously published or written by other person, except were due reference is made

This final project contains a survey that is primarily conducted by my self under guidance and support of the tutor Therefore it has high level of trust, confidence and agreement

Tran Minh Hai

ACKNOWLEDGEMENT

Trinh Thuy Anh, my tutor, for her guidance, valuable advice and great support in developing my thesis

Secondly, I would like to express my sincere thankfulness to all Professors, program coordinators and my classmates for devoting me their inspiration, support and sharing their valuable knowledge during my time studying at the MBMM program

of Solvay Brussels Schools and Ho Chi Minh City Open University

Fiannaly, I would like to extend my gratitude to doctors and experts who help me to provide the information and all respondents who spent their value time to complete the questionnaires

2.2.2 Situation Of Hiep Thanh General Clinic 17

CHAPTER 3: MARKETING PLAN AND MARKETING STRATEGY

3.1.2 Target Customer 20

Figure 2.3 Registration of medical care services at Cho Ray Hospital 10

Figure 3.3 Uniform of Hiep Thanh 27

LIST OF TABLES

Page

Table 2.3 Price list of 105 Hiep Thanh clinic 18

ABBREVIATION LIST

PRs: Public relations

ENT: Ear, Nose and Throat

EXECUTIVE SUMMARY

According to Department of Health Care – Ministry of Health of Viet Nam, there was 1148 hospitals (excluding military hospital managed by the Department of Defense), including: The hospital's public health sector (87%

of total hospitals); hospitals of various ministries (2%), private hospitals (11%) Every year there is millions turns of medical examination and treatment at the outpatient hospital district, provincial, national, private hospitals and hospital sectors Numbers of hospitals recently are not enough

to serve patients, and numbers of hospital beds are still too low The increase

of hospital beds in recent years are not adequate with the increase in population and health care needs of people The abilities to provide health care services of high quality of the hospital district particularly limited should not prevent patients go to national hospitals

Currently, the country's number of beds to 17 beds /10.000 people, much lower than some countries in the region Number of 2-3 patients on a bed is very common situation in many hospitals, especially in central, the capacity

of the bed line up to 120-160% of patient This overload situation has never seen in countries in the region and the world Because healthcare system of Viet Nam now is overload, Vietnamese government sets goal developing healthcare system by encourages increasing private health care system The private healthcare system is encouraged and facilitated to develop the number and operational capacity

Base on the overload situation of healthcare services in Ho Chi Minh City and the potential of this service market, Hiep Thanh clinic was founded in 2009 by

Dr Nguyen Thanh An, located in Dong Thanh Ward, Hoc Mon district The

mission of Hiep Thanh clinic is bring to customers the best health care services with good price and the service was served by professional doctors and staffs

In the first year Hiep Thanh clinic was very crowded; however during the second year Hiep Thanh clinic is on the state that customers are leaving to other competitor clinics There are only about 40 customers per day If there is

no plan for Hiep Thanh clinic, it will be bankrupted in a short time

Learning about the situation and the environment of Hiep Thanh clinic to definite what the Hiep Thanh should modify the marketing strategies and create marketing plan to get more customers who are expected to increase from 40 customers per day to 100 customers per day, and development the clinic become professional and well-known in the next 6 months

This study is analyzed on the situation of Hiep Thanh clinic after two years of operation, find out its advantages and disadvantages and also analyzed on important competitors of Hiep Thanh clinic: Anh Dung clinic and 105 clinic The research was done by analyzing customer’s needs for giving marketing plan for Hiep Thanh clinic

To obtain data for the research, an array of tools is structured interview of customers who are patients of Hiep Thanh Clinic and patients of competitors

The primary research and secondary information serve to identify

1 Situation of health care services and clinics systems in Ho Chi Minh City

2 How Hiep Thanh clinic will bring to customers a good quality services and what make the customers satisfy

Primary data was collected from competitors by observation and by interviewing customers for a customer survey This survey had subjects who are customers of Hiep Thanh clinic and the customers of competitors

Secondary data of healthcare services, clinics system, population of region where Hiep Thanh located, data of clinics and the situation of healthcare in Ho Chi Minh were gathered from internet websites of Ministry of Health, Ho Chi Minh City Health Service and other sources

5.1 Qualitative research

Depth interview with experts who are also the owners of clinics in Ho Chi Minh such as, Doctor Le Tu Quoc Tuan (Song Than Clinic), Doctor- Nguyen Van Ba (Tien Lan clinic), Doctor Nguyen Van Cu (Chau Thanh Clinic), an interview with Doctor Le Minh Hai – Chief service department of Ho Chi Minh Health Service and Nguyen Van Sach, PhD – Director of An Giang Hospital

5.2 Quantitative research

The information was collected from an interview of 70 customers of Hiep Thanh clinics and 30 customers of competitors The questionnaires which is in an appendix are established to focus on getting the information about what the customers need from the clinic and how the clinic improve to attract more customers

6 Structure of the project

Chapter 1: Literature review

Chapter 2: Situational analysis

Chapter 3: Marketing Strategy and Marketing planning for Hiep Thanh clinic Chapter 4: Conclusion

CHAPTER 1

LITERATURE REVIEW

To definite what Hiep Thanh clinic should modify the Marketing strategies and create marketing planning for getting more customers and develop the clinic become professional and well known in the next 6 months the marketing planning process was used

Mission and Goal

External Analysis Situation Analysis, SWOT Internal Analysis

Marketing strategy

Figure 1.1: Marketing planning process

Marketing planning process refers to the process by which managers choose a set

of marketing plan for company’s products or services This process can be broken down into five major steps: (1) Mission and goals of the company; (2) analysis of external environment to identify opportunities and threats; (3) analysis of company strength and weakness; (4) propose strategies built on company’s strength and external factors and correct its weakness in order to take advantage of opportunities and counter threats; and (5) Marketing Planning

1.1 Mission and goals

The beginning point of marketing planning process is to review and/or selecting company’s mission and major goals This statement will be the foundation for strategy formulation and implement in later steps

The mission sets out the reason why the company exists, whose benefit it serve and what it should do

Major goals are the target that company wants to fulfill in long or medium term Most profit-seeking company places maximization of profit near the top of the goals Other possible goals are to get more customers in 1 year for example Goals should be specific and measureable within a time frame

1.2 External analysis

External analysis focuses on examination of relevant external elements to the company The object of this analysis is to identify threats and opportunities facing company both present and potential An opportunity is a trend or event that could lead to significant upward change in sales and profit pattern – given appropriate response A threat is a trend or event that will result in the absence of strategic

move, in a significant reduction in sales and profit figures External analysis including the following analysis:

Customer analysis

Customer analysis includes identifying the company’s customer segments and each customer’s motivations and unmet needs Segment identification defines alternative product markets and thus structures the strategic investment decision (what investment levels assigned to each market segment) The analysis of customer motivation provides information need to decide whether the firm can and should attempt to gain or maintain sustainable competitive advantage An unmeant needs- the need that currently not being met by existing products-can be strategically important due to it may represent a way that entrenched competitors can be dislodge

Competitor analysis:

Competitor analysis in marketing is an assessment of the strengths and weakness

of current and potential competitors Competitor analysis has two primary activities, 1) Obtaining information about important competitors, and 2) Uthat information to improve our company

Environmental analysis

The strategists must also be aware of environmental factors that do not have short-run impact in firm’s performance but they usually influence firm’s long run decision

distinctive competencies lying in different functional departments like marketing, manufacturing, manager or employee’s skills etc Company strength leads to superior prior performance in quality, efficiency, innovation and customer responsiveness while weakness leads to inferior performance

CHAPTER 2 SITUATIONAL ALALYSIS 2.1 External Analysis

2.1.1 Environment and Market analysis

Health care services in Ho Chi Minh City

Any region in the country with public health forces sizeable as Ho Chi Minh city, with 28 hospitals and 8 centers for disease control However, due to lack of capital

of investment, over the years the health sector is slowly weaker than the private sector and foreign sector compared with other countries in the region, the state budget for health care was relatively low at only 6.1%, loses Malaysia (6.5%), China (10%), even Laos (7%) and Cambodia (16%)

In that situation, the number of beds in hospital doesn’t’ catch up with the increasing of population growth, the number of beds per 10,000 population decreased, from 26.6 in 1997 to 23.7 in 2005 In Ho Chi Minh city, the situation is even more urgent because in addition to the local population must also take on more immigrants from elsewhere to live, so no wonder that hospitals are also overloaded

Figure 2.1: Situation of beds in Ho Chi Minh city

Figure 2.2: At the lobby of Ortho – Trauma hospital – Ho Chi Minh City

In big hospitals in Ho Chi Minh City, the images of patients, relatives sat and sit in abundance in the hallway, pulled no stranger in hospital A bed with 3-4 patients is normal, not to mention, there is still 2-3 patients under the bed At Hung Vuong Hospital, in 2004, this hospital built new 500 beds, so that the current bed inventory has risen to 850, so that patients are still lack of space, are both the hallway and walkways

Figure 2.3 :

Registration of medical care services at Cho Ray hospital – Ho Chi Minh city

Figure 2.4: Line up for medical care services

Services And Qualities Of General Clinics In Ho Chi Minh City

By the time of year 2011 (based on data of health service), there is around total 200 general clinics (from two department) However by an investigation in March 2011, there is 80% clinics infringe the law, do not comply with the regulations of health service The regularly mistake from these establishment are:

 Heath cares service without diploma of doctors

 Drug expired or indistinct of origin

 Advertise the reverse of the truth

 Advertise without permission

 Health care service not according to the specialist registered

Services and the qualities of medical care are specific for each clinic Most rely on benefits to take bribes from patients These clinics are mainly put the profits on the top, so the prices are very high The number of these kinds of clinics makes up nearly 80% The remaining 20% is the famous clinic with professional services should be made their own brand for example, HEPA clinic, An Khang clinic, Viet Sing clinic… These clinics comply with qualitative norms, reasonable price and reputation

Limitation Of Clinics Systems To Health Care Services And Patients

According to the statistics of Health Service by an inspection in 2011, there are a lot

of faults in private general clinics, therefore their qualities of health care service are restricts Almost doctors work at these clinics do not have much experience or they are working in hospital but they work as part time job at the clinics, it will be influence to the efficient treatment on the patient When the doctors doesn’t work full time at clinics, in case the patients follow up examination, another doctors will treat with new diagram, it affect to the time of get over the illness of the patients Regard to the clinics worked with turnover, all the services will be cost very high Even drugs are sale with high price but the qualities are so bad Most of medicines from these clinics are original in India or vague original Another limitation is the infrastructure and equipments are second-hand or Chinese products with low prices also low qualities Some of clinics defy the sterilization health care devices, increasing the risk of transmission of infectious diseases to the patients

2.1.2 Customer analysis

Almost customers of Hiep Thanh clinic are population around Dong Thanh ward or workers in industrial park in Hoc Mon district, or some people has accidents in this area The incomes of the population in this area is average, therefore target customers of Hiep Thanh clinic is customers with average incomes

In order to get a better understanding of their current customers, a paper and pencil survey was designed The purpose of the research was to learn a bit more about customers, to find out what their needs and evaluate their receptivity to some potential new services

Hiep Thanh clinic will study from the customers, what they need from services of Hiep Thanh clinic, what are the shortcomings from Hiep Thanh clinic, the modifications for a professional Hiep Thanh clinic in the near future

The survey was completed by a convenience sample of 70 customers who were asked to complete the survey while they waited during a visit to the clinic and 30 customers who are in the clinics of competitors Almost all of those asked actually completed the survey

The result of survey shows what customers need from the private clinic:

1 Product: The health cares services of clinics have to be full package

include all departments Actually, Hiep Thanh have only Testing department, X Ray department, Internal general department, it’s not enough to respond the treatment demand of the patients There are no any different health cares services from competitors at all

Almost customers in this area have average incomes, they have their medical health insurances and work in the companies in industrial parks, thus the customers have the demand to use medical health care card from the companies

2 Price: price of treatment services at Hiep Thanh clinic is lower than

competitors, however this point is not an important element because customers care about the quality of treatment and the way serving rather than the different prices compared with competitors

3 Services: Based on the result of the evaluation, 80% of customers evaluate

that the quality of serving customers at Hiep Thanh clinic is very bad Doctors and nurses shout and have rough words to the patients The working behavior of the staff is not professional

Beside the service is bad; Hiep Thanh clinic doesn’t have emergency car and doesn’t work 24/24 It cannot provide the services whenever the customers come for an emergency case

4 Branding: Although Hiep Thanh clinic was opened for two years but 80%

of customers respond that they go to the clinic according to the nearest of their house, certainly not the recommendation from another person, not the marketing activities of the clinic to introduce its to customers Almost customers live within 2km of the clinic For this reason, actual customers of the clinic is very few and difficult to cover within 10km around the clinic

2.1.3 Competitors analysis

There are two other clinics in operating on the scale 04 km around Hiep Thanh clinic Customers of these competitors are also target potential customers of Hiep Thanh clinic Consequently, the analysis of competitors is the main objective for

Hiep Thanh clinic for the opportunities to get customers from these competitors

Comparing HIep Thanh to its primary competitors

Competitor 1: Anh Dung Clinic

Product: Beside general treatment, Anh Dung Clinic has Obstetrics -gynecology

department is principal department

Working hours: 24/24 hours

Capacity: One emergency car to operate 24/24 There are enough model equipment

which are helping for treatment such as 3-D ultrasound machine, X-Ray machine, testing machine, software of clinic management Doctors of a clinic are famous doctors who are from famous hospitals

Services: The staff is professional in serving customers This clinic has received

complimentary from the customers for good serving and dedicated

Promotion: Discount for customers who come the second time There is

advertising on the leaflets

Quantity of customer per day: Average 120 customers/day

Price: The price of health service is higher than Hiep Thanh 20%

Services 1st Visit From 2nd visits

Internal general service (Adults & Children) 50,000 40,000

Table 2.1: Price list of Anh Dung Clinic

* Price of service includes:

- Price for doctors and nurses for one examination

- Equipment for examination

- Copy of result of examination

* Price of service not includes:

- Medicine

- Surgeries, image diagnostic, endoscopy, procedure for diagnostic and treatment

- Other services out of the price

Competitor 2: 105 Clinic

Product: Obstetrics -gynecology and surgical department are principal department

Other services are ultrasonography, testing, radiography and internal medical treatment service

Working hours: 24/24 hours

Capacity: one emergency car to operate 24/24 hours There are enough equipment

for treatment Associate with Ortho Trauma hospital surgical treatments and Tu Du hospital Obstetrics -gynecology

Doctors of this clinic are from Ortho Trauma hospital, District 3 and Tu Du hospital which are famous hospital in Ho Chi Minh City

Service: The staff is professional in serving customers

Promotion: Discount for second coming of customers Advertise on the bill board,

internet and clinic notebook

Quantity of customer per day: Average 150 customers/day

Price: The price of health service is almost the same with Anh Dung Clinic

Price lists of 105 clinic:

Table 2.2: Price list of 105 Clinic 2.2 Internal analysis:

2.2.1 Hiep Thanh general clinic

Hiep Thanh clinic is located in Dong Thanh Ward, Hoc Mon Distric, Ho chi Minh City This is a small clinic operating in Hoc Mon, Ho Chi Minh City, is very far from hospital Hiep Thanh Clinic has been in operation for 2 years – opened by Dr Nguyen Thanh An , who is working in a famous hospital for 10 years

The clinic has been in operation for two years but it does not have many customers Current customers seem to be not satisfied with Hiep Thanh Clinic much The clinic focuses on customers who live around Dong Thanh Ward 10 kilomets The clinic now has 18 full-time employees, 4 par-time doctors, 2 full time doctors, and one office manager

2.2.2 Situation of Hiep Thanh general clinic

Hiep Thanh currently does not have marketing strategy for services at all In the past when the opening, Hiep Thanh clinic was very crowded; however from the second year Hiep Thanh clinic is on the state that customers are leaving to other competitor clinics There are about 40 customers per day

If the strategy will not changed, Hiep Thanh Clinic is going to bankrupt in a short time Through the survey’s result, Hiep Thanh is losing customers by the following factors:

Services 1st Visit From 2nd visits

Internal general service (Adults &

- There are no specialist health care services

- Serving style of doctors and the staff are bad

-There is not enough equipment for helping doctors’ treatment

- There is no special image for Hiep Thanh clinic Many customers who are living around Hiep Thanh do not know it exists although they live very close

to the clinic because there are no any advertising

Product: Hiep Thanh current offers some services including the following:

- Ultrasonography

- Testing

- Radiography

- Internal medical treatment service

There are no specialist healthcare services

Working hours: 7h-21h hours Seven days a week

Capacity: No emergency car One black & white ultrasound machine, and one

X-Ray machine Doctors are working from Hoc Mon and District 12 Hospital (normal

hospitals)

Promotion: There is no any promotion in Hiep Thanh Clinic

Quantity of customer per day: Average 40 customers/day

Price: Compare with others competitors; the price of Hiep Thanh is lower than

competitors 10 -20%

- Price list of Hiep Thanh clinic

Internal general service (Children) 30,000

Ultrasonography (Black & White) 50,000

Table 2.3: Price list of Hiep Thanh Clinic 2.3 SWOT analysis of Hiep Thanh general clinic

The situation analysis gives insights about the company, customers, competitors, and external marketing environment in which Hiep Thanh operates In reviewing this information, the data can be summarized in a SWOT analysis that highlights Hiep Thanh’s strengths and weaknesses – and the opportunities and threats in its current market These are summarized in the following sections

STRENGHS

- Location on main street creates high

awareness

- Has its own pharmacy

- Low prices of services

- Not good reputation in the local community because lack of marketing activities

- Not have emergency car

- Working hours: Limit 7-21:00h

OPPORTUNITIES

- Population in this area still increases

a lot in the future

- Attract customers from competitors

THREATS

- New competitors will be increase

in the future due to the increase of the population, potential market but