Hospital Industry In India International School of Business & Media; Kolkata Abhijit Samanta Anindya Pal Saugata Dastider

Subhadeep Chakraborty Kamalika Mond al

Indian Healthcare industry: An overview Healthcare is one of Indias largest sectors, in terms of revenue and employment, and the sector is expanding rapidly. 1990:- Indian healthcare grew at a CAGR of 16%. 2010: - Total value of the sector is more than $34 billion. This translates to $34 per capita, or roughly 6% of GDP. By 2012, Indias healthcare sector is pr ojected to grow to nearly $40 billion. The private sector accounts for more than 80% of total healthcare spending in India. http://www.pwc.com/en_GX/gx/healthcare/pdf/emerging-market-report-hc-in-india.pd f 07/29/11 2

Health Care Facilities 07/29/11 3

India Health Infrastructure http://www.pwc.com/en 07/29/11 4

Top 10 Hospitals in this Industry Segment Position 1 2 3 4 5 6 7 8 9 10 07/29/11 Hospital Name All India Institute of Medical Sciences Apollo Hospitals Apollo Ho spitals FORTIS Christian Medical College Post Graduate Institute TATA Memorial H ospital Lilavati Hospital Sankara Nethralaya NIMHANS Location Delhi Delhi Chennai Bangalore Vellore Chandigarh Mumbai Mumbai Chennai Bangalore 5

INDIA AND MEDICAL TOURISM Sun & Sand And Scalpels State - of - the - art hospitals + alluring post - op lo cales Need Hideaway Holidays for a facelift or IVF etc . ? Where the cost saved on one MRI could pay for a return ticket , medical tourism is bound to boom . 07/29/11 6

FOUNDATION FOR PROPOSITION Source of Information: Indian Medical Association: www.ima-india.org 07/29/11 7

WHY INDIA ??? 07/29/11 8

"Our mission is to bring healthcare of International standards within the reach of every individual. We are committed to the achievement and maintenance of exce llence in education, research and healthcare for the benefit of humanity" 07/29/11 9

Value Proposition of Ashok Birla Apollo Hospital All medical facilities under one roof Provide world class medical care at an affordable cost Sharing the JCI accre ditation advantages in day to day operations Setting up of Centers of Excellence W ell organized Emergency and Trauma Care Management Bringing in 64 slice CT and MR I 1.5 Tesla , Digital x-ray CR system for film less imaging Specialty clinics & sp ecialized Critical care management 07/29/11 10

FREE CATARACT SURGERY Dr. Venkataswamy set up hospitals in South India that serve both the rich, who p ay for the state-of-the-art cataract surgery, and the poor, who receive almost i dentical services for free. The sales force, advertising, and promotion of Aravi nd Eye Hospital focus on attracting free rather than paying patients. For exampl e, the sales force has annual targets for the number of free patients they must generate; weekly sales meetings monitor individual performance towards these t argets. Aravinds sophisticated salespeople scour the Indian countryside looking for poor patients within their assigned territories and then transport them to the hospital at no cost to the patient. 07/29/11 11

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Value Add: Welcome kit that contains Fortis pregnancy guide book Gift hamper at t he time of discharge Baby album Baby name book Fortis Birth Certificate 07/29/11 13

Market Segmentation Segmentation on the basis of OBJECTIVES: 1. Teaching Cum Research for developing medicines and promoting research to improve the quality of medical aid. 2. Gene ral Hospitals for treating general ailments. 3. Special Hospitals for specialize services in one or few selected areas. Segmentation on the basis of OWNERSHIP. 1. Govt. Hospitals. 2. Semi Govt. Hospit als. 3. Voluntary Organizations 4. Charitable Trust. 07/29/11 14

Contd Segmentation on the basis of Path of Treatment: 1. Allopath 2. Ayurveda 3. Unani 4. Homeopathy 5. Others Segmentation on the basis of SIZE. 1. Teaching Hospitals (500 beds) 2. District Hospitals (200 beds) 3. Taluka Hospitals (50 beds) 4. Primary health centres (6 beds) 07/29/11 15

Contd 07/29/11 16

Marketing Communication Mix: Advertising 07/29/11 17

Public Relations Fortis announces about its latest Brain Therapy An Iranian boy saved by a rare brain surgery in Fortis. Manipal Introduces Cardio-Renal Services 07/29/11 18

Print Media 07/29/11 19

Promotional Campaigns Apollo Hospital collaborates with IBM Balika-vadhu actors at TATA Memorial Hospital 07/29/11 20

Internet 07/29/11 21

Competitive Positioning 07/29/11 22

Competitive Positioning Tangible Attributes: - "well-trained nurses," "conveniently located," & "doctors from the best medical schools." Its tangible benefits might be "personalized at tention and treatment" and "does everything to make you feel comfortable." Intan gible Attributes: - Recommended by friends and relatives, "treating people for 100 years." Its intangible benefits might be "makes you feel in control of your dis ease" and "makes you feel important. 07/29/11 23

Contd The best positioning opportunities are those that are highly motivating and on w hich a brand enjoys advantages relative to competitors. The brand strategy matri x below illustrates how to use motivating power and brand perceptions to identif y the best opportunities. The value of the strategy is ranked from 1 (the most v aluable) to 7 (the least valuable). 07/29/11 24

Contd Here is the mantra of creating a fruitful positioning for a hospital in the mind of the prospect Reliability Prices Reputation of doctors Quality of equipment Number of supporting specialties Amount and quality of miscellaneous services like cate ring, housekeeping, etc. Distance from the house Recommendations from someone 07/29/11 25

Thank You ! 26 07/29/11