RUSANGU UNIVERSITY

School of Business

CRYSTAL MEDICAL CLINIC

A term paper on the marketing plan submitted in partial fulfillment for the requirements of the
course

MKTG 210 Principles of Marketing

Lecturer: Dr Irene Chimoga

Students: Mando M Kufekisa

ID# 20190342

30 April, 2020
 CRYSTAL MEDICAL CLINIC

Crystal medical clinic is an integrated health business that provides health services to a lot of
people.

We have been in the industry for the past 20 years, and expanding to new markets both locally
and abroad. We have always strived to make our stakeholder’s interest economically, socially
and environmentally.

Of course, we are not standing still looking at the prevailing stiff competition, and our dedicated
departments are always proactive. We are very sensitive to changing customer needs and their
emphasis on healthy and environmental sustainability not forgetting ethical adherence in our
operations.

For instance, we attend to patients/clients quickly for us to ensure that we provide customer
satisfaction and retention in the long term.

Our industry is constantly changing and our competition is equally aggressive. We are putting
emphasis on the foreign market to take advantage of the huge populations there. Of course we
will never lapse on the leverage position we have locally, but the international market provides
us with a huge potential.

What has always put us in a competitive advantage is the diversity of our business, and we will
take advantage of that. Our target countries are South Africa, Botswana, Namibia and Angola.
Because these countries are have huge population and stabilities, which offers massive
opportunities for firm. South Africa and Botswana equally provides us with massive returns.
Angola particularly can add value in quality conformance in our service range.

Our strength lies in our holistic supply chain. It is a lean chain, with seamless integration. The
relationship starts from the shareholders/owners of the business, down to the clients/patients.
Everyone has to buy-in in the company’s ethos, beliefs and mission statement.

Employee satisfaction is also paramount and this strengthened us above the competition.
Diversification is also highly practiced in our service lines, especially in the current dynamic
environment.
We of course have weaknesses which need constant attention. Our business structure, at times,
lead to inefficient decision making and slow in responding to competition. At times it can be
challenging to blend different business cultures encompassing different countries.

The constant changing customer needs and trends offer opportunities that can be harnessed to our
company’s objectives. The current populations prefer more of good health services,
environmental protection and ethics. These present huge opportunities for the firm.

Threats come from everywhere such as legislation, competition, instability and non-adherence to
ethics. Legislation at times can affect the firm’s profits. Non adherence leads to fines.
Competition can take advantage of any lapses prudent management of the company’s position.
Constant monitoring and review should be emphasized.

We hope to face and encounter all these forces, using our reliable services and proven track
record in customer satisfaction and retention.

Our long-term objective is to satisfy our customers sustainably, and providing returns on
shareholder’s investment. Our operations leave patients/clients sustainably, and in better
position. This will be achieved by involving everyone in service development, from design stage
to the end user/client.

We believe that sustainable development is a fundamental aspect of a sound business

management. Our environmental and social policy is aimed at demonstrating our commitment to
excellence and leadership in promoting environmentally and socially sound and sustainable
development.

MARKETING STRATEGIES

“A marketing strategy refers to a business's overall game plan for reaching prospective
consumers and turning them into customers of the products or services the business provides. A
marketing strategy contains the company’s value proposition, key brand messaging, data on
target customer demographics, and other high-level
elements.”https://www.investopedia.com/terms/m/marketing-strategy.asp
In the case of crystal medical clinic, segmentation will be done in various ways based on
demographics such as children and elderly, health problems such as infections & malaria, and
principal methods such as scanning & radiation.

“Market positioning refers to the process of establishing the image or identity of a brand or
product so that consumers perceive it in a certain way.”- https://strategiccfo.com/market-
positioning/

Crystal Medical Clinic brand positioning is to provide equitable healthcare to the entire
population of the region. One way the clinic reinforces that brand positioning is by being the
only clinic in the area that provides urgent and nonurgent care services.

Crystal Medical Clinic has to offer unique services and differentiate itself to gain a competitive
advantage over rivals in its target market.

Product

The product is the central component of any marketing mix which can be defined as a set of
attributes offered to consumer. Most products of the hospitals are services which can be classified
as line services, supportive services and auxiliary services. Line services which are also called core
services include indoor & outpatient services, emergency services i.e. ICU & operation theater.
Services offered by medical & Para-medical staff come under supportive services which directly
determine the quality of medical services. At last auxiliary services include ambulatory services,
dietary services, indoor & outdoor patient registration services, engineering & maintenance
services which all help in making hospital services effective. Peters (1996) identified that hospitals
are facing several threats like increasing competition, rising costs, and image problems that can
threaten their existence and to face it

Price

Birchard et.al. Griebl & Skallca (2007) suggested hospital marketers to adopt transparent pricing
strategy which ultimately lead to higher patient satisfaction, in the same line Consuegra, Molina
and Esteban, 2007 examined the relationship between price fairness, customer satisfaction, loyalty
and price acceptance. They found that price acceptance is directly influenced by satisfaction
judgments and loyalty. In addition, price fairness influences price acceptance indirectly through
customer satisfaction and loyalty. They suggested keeping price transparency and reliability when
prices are increased.

Place

Place refers to the contact point between health service provider & patient. This element of
marketing mix leads to the identification of suitable location. For effective distribution of Medicare
services, it is essential that the hospitals should be able to provide 22 basic medical services at
different parts of residential areas and also to rural areas in particular, furthermore Hospital should
be located somewhere which is easily accessible by patients and transport services are also
available for them easily.

Promotion

Promotion activities of a hospital helps in communicating the existence of services offered to

present, past & future customers. Generally, promotion includes advertising, sales promotion,
personal selling & publicity, but instead of undertaking aggressive promotion, hospitals rely lot on
WOM (Shoqirat & Cameron, 2012) & social marketing (Evans, 2006).

People

Hospital industry is a knowledge-based industry, so people play key role in hospitals which include
doctors, nursing staff, paramedical staff, supporting staff & front office executives. Kabene,
Orchard, Howard, Soriano and Leduc (2006) concluded that Proper management of human
resources is critical in providing a high quality of health care as ‘doctor concern.

(Laohasirichaikul, Chaipoopirutana and ombs 2009) and nurse-client interaction (Korsah 2011)
are the most important factor affecting customer satisfaction. Following factors should be
considered as part of the recruitment process of medical staff: a) Emotionally stable individuals
having inclination for good service (Lanjananda & Patterson 2009) b) Caring nature ( Dhanda and
Kurian 2012) Ceyhun, Cagatay, Alper and Meltem (2012) indicated that unavailability of doctors
and nurses, as well as their negative attitudes and behaviors, are major barriers to the utilization of
public and private hospitals.
Physical Evidence

Physical evidence of a hospital includes all the physical or tangible commodities

which provide a tangible aspect to the intangible services. According to Babu and

Rajalakshmi (2009) It is necessary for a hospital to be well organized and Special care

should be taken to maintain hygienic, cleanliness and whole hospital must be well lit

Physical evidence particularly plays an important role in the hospital where the patients are

already depressed or traumatized and a good atmosphere could make all the difference.

Reiling (2005) suggested that while designing a hospital facility it should be engineered

properly as Holder (2008) concluded that physical evidence is an important dimension in

the perception of service quality for patients in health sector. Review has identified

following important aspects of physical evidence:

Physical design of the hospital (Angood et.al. 2008)

Amenities, signs, symbol, and artifacts (Laohasirichaikul, Chaipoopirutana and

Combs, 2009)

Ambient conditions (Pollack, 2009)

General condition of equipment and neat appearance of staff members (Jager &

Plooy, 2011)

Energy Efficiency and Indoor Air Quality (Khalil, 2012)

Process

Process is defined as an operational flow of activities which are taken place at

hospital for the efficient delivery of services. Following attributes of process leads to
patient satisfaction:

Least difference between perceived waiting times and expected waiting time (Davis

and Heineke 1998)

Choice of physician (Amyx and Bristow 2001)

Appropriate use of patient safety measures & patient education (McFadden, Stock

and Gowen 2006) and (Assefa1, Woldie, Ololo and Woldemichael 2012)

MARKET RESEARCH

Market research is the process of gathering information about your business's buyers’ personas,
target audience, and customers to determine how viable and successful your product or service
would be among these people.

Crystal Medical Clinic will carry out a marketing research based on satisfaction of inpatients and
outpatients. This will give the results or show how people perceive the image of the services
provided by Crystal Medical Clinic.
ACTION PROGRAMS

This shows how Crystal clinic is likely to carry out its operations.

Action Description Priority Time- Resources Responsible

Frame

-Examining the market Conduct a study among Hotel One 2020- -Est.25-50 staff Director of
potential for capturing visitors related to awareness, 2021 hours Marketing (Crystal
health care usage from opinions and usage. clinic)
-Est.K30,000
“Hotel Visitor”
for research (%
Population which is
from chamber
possible with chamber of
of commerce)
commerce.

Improve relations and Develop a periodic newsletter One 2021 -Est. 75-100 -CEO
communications with in the guise of a “Letter from staff hours
-Director of
service area “Leaders” the CEO”. Distribute via e-
-Est. K5,000 for Marketing
(Civic, Business, mail or mail per recipient
printing/postage
Government and preference. Target designated
Religious) list of area leaders.

Marketing Operations – Delivering a “Healthy You” One 2020- -Est. 125-150 -Director of Public
“Core” actions for message on TV, radio and 2021 staff hours Relations
advertising all services internet as well printing ongoing,
-Est. K18,500
of the clinic. circulars. This will be done on Quarterly
quarterly basis.

Construction Work and Building of a new Lab and Two 2022- -Est. K350,000 -Director of Finance
purchase of clinic purchase of clinical 2024
equipment equipment will be done in 2
years’ time.
BUDGET - FINANCIAL ANALYSIS AND EXPECTED RESULTS

The following projections show what Crystal clinic is expected to make from the year 2020 to
2022. This equally includes the budgeted expenses that will incurred.

Sales Forecasts

Sales (Services) 2020 2021 2022

Preventative Exam ZMW 125,000.00 ZMW 250,000.00 ZMW 325,300.00

Dental ZMW 48,750 ZMW 67,500 ZMW 79,500

Labor & Delivery ZMW 132,500 ZMW 245,000 ZMW 395,000

Emergency Department ZMW 58,125 ZMW 111,250 ZMW 248,750

Surgery ZMW 128,125 ZMW 211,250 ZMW 348,750

Physical therapy ZMW 28,025 ZMW 41,550 ZMW 59,380

Pediatrics ZMW 345,025 ZMW 431,550 ZMW 529,380

X-Ray & Radiology ZMW 18,425 ZMW 19,520 ZMW 23,579

Scanning ZMW 38,025 ZMW 41,550 ZMW 59,380

Laboratory ZMW 78,025 ZMW 91,550 ZMW 119,380

Consultation ZMW 15,000 ZMW 31,550 ZMW 49,380

Total Sales ZMW 1,015,025.00 ZMW 1,542,270.00 ZMW 2,237,779.00

 Expense Forecasts

Expenses 2020 2021 2022

Legal ZMW 9,000.00 ZMW 13,000.00 ZMW 17,000.00

Insurance ZMW 39,000.00 ZMW 39,000.00 ZMW 39,000.00

Advertising ZMW 18,500.00 ZMW 19,000.00 ZMW 19,500.00

Staff wages & Salaries ZMW 89,000.00 ZMW 98,000.00 ZMW 100,000.00

Depreciation - Ambulance ZMW 11,500.00 ZMW 11,500.00 ZMW 11,500.00

Licenses ZMW 12,000.00 ZMW 12,500.00 ZMW 13,000.00

Repairs & Maintenance ZMW 10,000.00 ZMW 15,500.00 ZMW 18,670.00

Purchase & Installation of Medical equipment ZMW 230,000.00 ZMW 347,589.00 ZMW 470,980.00

Training ZMW 0.00 ZMW 0.00 ZMW 0.00

Purchase of Medical drugs, Syringes & needles ZMW 20,000.00 ZMW 35,000.00 ZMW 40,000.00

Total ZMW 439,000 ZMW 591,089 ZMW 729,650

CONTROLS

An annual plan of control will be used to ensure that the company achieves the sales, profits and
other goals established by the marketing plan. It is, therefore, an operational control plan. The
annual process will take place in the following manner.
The aforementioned operational plan will help in the analysis of the following data:

Project Income Statement 2020 2021 2022

Sales ZMW 1,015,025.00 ZMW 1,542,270.00 ZMW 2,237,779.00
Expenses (ZMW 439,000.00) (ZMW 591,089.00) (ZMW 729,650.00)
Taxes (ZMW 349,000.00) (ZMW 868,921.20) (ZMW 1,368,921.20)
Net Profit ZMW 229,045.00 ZMW 84,280.80 ZMW 141,229.80

Budgeted Capital 2020 2021 2022

Initial Funds ZMW 750,567.00 ZMW 600,000.00 ZMW 850,000.00

2020 2021 2022

Return on Investment (ROI) 30.5 14.0 16.6

The above data shows that Crystal clinic will do well in 2021 and 2022 due to the return on
investment. At the start of the business in 2020 management should work on better pricing
techniques in order to generate more sales for the business so as to have a good return on
investment.

A review of the marketing plan will be done quarterly and annually through face to discussion
involving both top level and middle level management. This will involve budget discussions, sales
analysis, market share analysis and financial analysis. It helps to highlight the areas of weakness
for the business that need to be strengthened for the betterment of the goals outlined. The
organizational structure explains it all below.
ORGANIZATIONAL STRUCTURE

Marketing
Officer