TR NG I H C M TP HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBAVB4 TR N HỒNG BÍCH KH MARKETING PLAN FOR THE NEW CONSULTATION CENTER OF VIETNAM CENTURY HOSPITAL MASTER PROJECT MASTER OF BUSINESS ADMINISTRATION (PART-TIME) TUTOR: DR TR N HÀ MINH QUÂN HO CHI MINH CITY 2012 i DECLARATION I hereby declare that this thesis is my first marketing plan for the private healthcare sector and it has not been submitted anywhere for any degree or qualification It based on the knowledge I gain from the interesting marketing subjects in Master of Business Administration 2010-2012 program of Solvay Brussels School and Ho Chi Minh city Open University and researches in Vietnam healthcare field I also certify that, to the best of my knowledge, any helps received in preparing this thesis, all sources and information used have been acknowledged in this thesis February 28th, 2012 TR N HỒNG BÍCH KH Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh ii ACKNOWLEDGEMENT From me with all my honestly respect and love: First and foremost, I would like to deeply thank my family – my beloved mom and dad who give me a great encouragement, heartily support and love to complete not only this MBA program but also bravely face with all my difficulties in life Secondly, I would like to express my grateful thanks to my supervisor, Dr Tr n Hà Minh Quân, who help me a lot in giving the orientation, advices and comments for this final thesis I would like to send many thank for the help and inspiration from doctors -Tr ng Quang Huy, Tr n Th Lý – who give me the interesting knowledge and understanding deeply about the Vietnam Century Hospital, the healthcare field, useful information about their career I would like to express my deep appreciation to my colleagues, my business team for their supports in long time to help me complete my works and have time to done this thesis; to my friends for their contributed discussions and opinions Finally, I would like to thank much to Solvay MBA program, all the professors, the members of programs, the coordinators, my friends in class for useful knowledge, memorial time, valuation debate and exciting study February 28th, 2012 TR N HỒNG BÍCH KH Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh iv TABLE OF CONTENT DECLARATION i ACKNOWLEDGEMENT ii TUTOR’S COMMENT iii TABLE OF CONTENT iv LIST OF FIGURES vii LIST OF TABLES viii LIST OF ABRREVIATIONS ix EXECUTIVE SUMMARY CHAPTER 1: GENERAL INFORMATION 1.1 Statement of the market 1.2 Vision and Objective of project 1.3 VCH Introduction 1.3.1 About VCH 1.3.2 The Consultation Center’s introduction 1.3.3 Profitability CHAPTER 2: LITERATURE REVIEW 11 2.1 Marketing Strategy 11 2.1.1 The Strategic Planning Context 11 2.1.2 Market Segmentation, Targeting, Positioning, and Competition 14 2.1.3 Blue ocean strategy 17 2.2 Understanding consumer behavior 18 Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh v 2.2.1 Healthcare consumers – who are they? 19 2.2.2 The buying decision making 20 CHAPTER 3: HEALTHCARE MARKET AND VCH’S CONSULTATION CENTER INTRODUCTION 23 3.1 Healthcare market’s analysis 23 3.1.1 Definition of Healthcare Market 23 3.1.2 Healthcare Market’s overview 23 3.1.3 Environment (SLEPT) analysis 29 3.2 Competitor analysis 35 3.3 Customers analysis - Market research design 38 3.4 SWOT analysis 41 CHAPTER 4: MARKETING STRATEGY 43 4.1 Segmentation and target market 43 4.1.1 Market segmentation and choosing target 43 4.1.2 Target market 43 4.2 Positioning 44 4.2.1 New added values 44 4.2.2 Positioning strategy 48 4.3 Objective of marketing plan 50 CHAPTER 5: MARKETING PLAN 52 5.1 Marketing program 52 5.1.1 Product - Competence 52 5.1.2 Place - Convenience 55 Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh vi 5.1.3 Pricing - Cost 56 5.1.4 Promotion - Communication 57 5.1.5 Patient - Compassion 59 5.2 Budgeting 60 5.3 Implementation and control 61 REFERENCES 69 APPENDIX 70 APPENDIX 71 APPENDIX 72 Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh vii LIST OF FIGURES Figure 1.1: Number of Inpatient inn average per day in 2006-2010 Figure 1.2: Monthly number of surgeries in 2006-2010 Figure 2.1: Four actions framework 18 Figure 3.1: Vietnam’s healthcare spending and international comparison 25 Figure 3.2: Healthcare spending of Vietnam in 2006-2010 25 Figure 3.3: Vietnam hospital beds and doctors, 2010 27 Figure 3.4: Cost comparison for selected surgical 28 Figure 3.5: Population, over-65 age group 29 Figure 3.6: Life expectancy 30 Figure 3.7: BMI short-term political risk value 33 Figure 4.1: Percentage of volume and value 43 Figure 4.2: Value Curve of VCH’s the Consultation Center 45 Figure 4.3: Positioning Strategy 48 Figure 4.4: Objectives of the marketing plan 50 Figure 5.1: Budget allocation for the communication campaign 60 Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh viii LIST OF TABLES Table 1.1: Allocation of VCH’s patient Table 2.1: IOM’s standard of healthcare services 12 Table 2.2: IOM model’s criterion 13 Table 2.3: Major segmentation variable for consumer markets 14 Table 2.4: Steps in the segmentation process 15 Table 2.5: Healthcare consumers versus other consumers 19 Table 3.1: Health Indicators 23 Table 3.2: Competitor Pros vs Cons 36 Table 3.3: The qualitative research’s data interpretation 39 Table 3.4 SWOT analysis 41 Table 5.1: VCH’s network process 55 Table 5.2: Communication plan 57 Table 5.3: The implementation plan of VCH’s Consultation Center 62 Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Khuê ix LIST OF ABBREVIATIONS BMI – Business Monitor International CHS – Community Health System CT – Computerized Tomography GI – Gastrointestinal HRH – Human Resources for Health ICU – Intensive Care Unit IOM – The Institute of Medicine JCI – Joint commission International MRI – Magnetic Resonance Imaging STP – Segmentation, Targeting, Positioning VCH – The Viet Nam Century Hospital WHO – World Health Organization Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh EXECUTIVE SUMMARY The Vietnam Century Hospital (VCH), recognizing the significant of demand toward high quality healthcare within Ho Chi Minh city and surrounding areas as well as committing to continually enhancing the quality of the client and patient services and facilities it offers As part of this ongoing effort, VCH has constructed a new five-star standard Consultation Center with a contemporary look and upscale feel; in addition to the long-term purpose of providing first class benefits management services to its target market VCH’s new Consultation Centre is one of the biggest expansion projects undertaken by VCH since its inception Designed by renowned architect Reda Amalou from Paris-based firm AW², this project is the first in the hospital’s extensive US$ 3.5 million renovation and expansion plan Construction on the new Consultation Centre began at the end of 2010 Now complete, this facility unifies contemporary architecture, stylish decor and customdesigned interiors that facilitate the functions of a five-star international hospital, while ensuring that staff and patients benefit from a comfortable, safe, high quality environment The purpose of this project is to aim these following goals: - To create a higher quality medical services that exceed consumers’ expectations To provide quality health care to residents of area To create a medical practice that treats the residents’ need about internal and surgical medication as well as general medical services To increase the number of patients by 30% per year in first two year through superior performance and marketing activities The outcome is a marketing strategy proposal cover its component: segmentation, targeting, re-positioning with blue ocean strategy’s elements in next year time Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Khuê 61 This is the significant period of the Consultation Center and the development of VCH Therefore, budget is allocated in high amount to increase VCH and the Consultation Center’s visibility and provide an opportunity to convey its positive attributes, improvement initiatives, and value added services to our patients 5.3 IMPLEMENTATION AND CONTROL Preparation period: The period for preparation starts on November 2011 and last on 31 December 2011 with main following executions: - Improve the content of the marketing and communication’s events to meet the needs of the target audience/population Promote the time, place, and content of the events adequate to maximize attendance Involve multiple facets of the hospital to provide diversity of information Utilize different mediums to generate group participation Provide amenities (food, beverages, other) to participants to create a comfortable environment conducive to the objectives of the council Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh 62 Action plan: The marketing plan starts on January 2012 and lasts till 31 December 2014 Table 5.3: The implementation plan of VCH’s Consultation Center Action program Responsible department Actions Start date Completion date Maintenance requirements 30 Jan 2012 Physicians, Team care services and Administration Staffs E Communications Everybody emails Website Information Exchange for staff feedback Written Internal communication Internal Staffs Green Sheet – weekly Core Brief – monthly Annual Report Summary Annual Trust Business Plan Notice-boards Staff handbook Work-life Balance booklet Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Khuê Nov 2011 63 Meetings Chief Executive Briefings – bi monthly Workshops/focus groups – ad hoc Department Meetings weekly Induction Specialties Department teams, Consultant Physicians and Administration Staffs Hospitalization team Specialties Department teams, Meetings Medical staffing Committee – 2nd Tues of every week Jan 2012 30 Jan 2012 Physicians and Administration Staffs Contact with GPs to be formalized Create special team to train on how to measure customer satisfaction index Jan 2012 30 Jan 2012 Preparation Specialties Department teams, Physicians Prepare POSM materials (posters, brochures, guidebooks, brand videos) Jan 2013 30 Jan 2013 Hospitalization team Specialties Department teams, Physicians, Team care Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh 64 services 1st meeting review Stage 1Communication plan Media activities Specialties Department teams, -To review collected data Hospitalization teams, Director Board -Analyze to give directions for setting price range and detailed communication plan Specialties Department teams, Marketing team, Physicians, Hospitalization teams Specialties Department teams, 30 Jan 2012 Feb 2012 -Select the list of the invitees -Prepare for the round table discussions (3 separate round table discussions with round table discussions with experts in medication system, final round table discussions with integration of top hospital) Specialties Department teams, Development of media packages to cover: Marketing team, Physicians, Hospitalization teams - Public health issues - New treatments methods in surgical specialties - Children and women’s Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh Hospitalization teams, Director Board Specialties Department teams, Feb 2012 Feb 2012 28 Feb 2012 28 Feb 2012 Marketing team, Physicians, Hospitalization teams, Director Board Specialties Department teams, Marketing team, Physicians, Hospitalization 65 services, the uniquenessof our specialist in Obstetrics & Gynaecology and our specialist care teams, Director Board -Select the list of the invitees Stage 2Communication plan Specialties Department teams, Marketing team, Physicians, Hospitalization teams -Prepare for the scientific symposium with the invitee from other hospital, medical university Specialties Department teams, 28 Feb 2012 - Set up press conference about hospital’s news - Prepare Seminar about disease consultant with foreign doctors Media activities Specialties Department teams, Marketing team, Physicians, Hospitalization teams Development of media packages to cover: Specialties Department teams, - Public health issues - New treatments methods in surgical specialties - Children and women’s services, the uniqueness of our specialist in Obstetrics & Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh 20 Mar 2012 Marketing team, Physicians, Hospitalization teams, Director Board Mar 2012 30 Mar 2012 Marketing team, Physicians, Hospitalization teams, Director Board 66 Gynaecology and our specialist care -Select the list of the invitees Specialties Department teams, Stage 3Communication plan Marketing team, Physicians, Hospitalization teams - Prepare to schedule of sponsoring operation to special disease case -Scientific symposium with the invitee from other hospital, medical university Specialties Department teams, 20 Mar 2012 -Press conference about hospital’s news 30 Mar 2012 Marketing team, Physicians, Hospitalization teams, Director Board -Seminar about disease consultant with foreign doctors Specialties Department teams, 2nd meeting review Marketing team, Physicians, Hospitalization teams, Director Board Communication Marketing team, Specialties Department teams, -Analyze and evaluate the results/ideas from stages Apr 2012 -Discuss detailed Field action plan -Local seminars Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh Apr 2012 Apr 2012 Marketing team, Physicians, Hospitalization teams, Director Board 30 Mar 2015 Marketing team, 67 internally plan Physicians, Hospitalization teams Specialties Department teams, Monthly review Marketing team, Physicians, Hospitalization teams, Director Board -Explore and customize patients’ needs Physicians, Hospitalization teams, Director Board -Evaluate and correct the field action plan Specialties Department teams, -Review inventory management -Evaluate customer satisfaction index and give corrective and preventive actions -Evaluate achievements vs objectives Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Khuê Apr 2012 30 Mar 2015 Marketing team, Physicians, Hospitalization teams, Director Board 68 Control and evaluation Detailed assessment of feedback from: Annual staff survey Annual patient surveys Chief Executive staff briefings Inbox the electronic staff feedback service Feedback forms attached to team briefing Analysis of complaint letters and comments received by VCH’s letter box Reports and feedback from the website mail box Usage of the intranet and internet sites can be monitored through the installation of hit counters Press cuttings are collated to measure coverage of the hospital in the media and the balance between positive and negative stories is recorded Also looking for clear messages in the press indicating a journalist understanding of the issues, more coverage in the professional press and general support of opinion formers Conclusion: To achieve success with marketing efforts, a brand identity must be established with consumers and others to differentiate our product/services from those of our competitors VCH’s the new Consultation Center strives to become a “World Class Healthcare in Vietnam”, it is imperative that it establish a brand identity, internally and externally, that is easily identifiable and represents quality care and service It is also the purpose of this marketing plan Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hoàng Bích Khuê 69 REFERENCES Business Monitor International Ltd – “Viet Nam Pharmaceuticals & Healthcare Report Q4 2010; “Vietnam Business Forecast Report Q4/2010” Claire Gruslin - Market Research, BIS & Competitive Intelligence course materials – MBAVB4, 2011 Deloitte – “Private healthcare providers: The prognosis for growth” report, 2010 Jean-Pierre Baeyens – Strategic Marketing course materials – MBAVB4, 2010 Marianne Claes – Applied Marketing course materials (Copyright M Claes © 2009) – MBAVB4, 2010 Philip Kotler – “Marketing Management”, 14th edition Philip Kotler – “Principle of Marketing”, 2nd European edition Philip Kotler, Joel Shalowitz, Robert J.Stevens – “Strategy Marketing for Health Care Organization/ Building a Customer-Driven Health System”, 2008 Richard K Thomas – “Marketing Health Services”, 2nd edition, 2010 W Chan Kim & Reneé Maubourgne – Blue Ocean Strategy – Harvard Business School Press, 2005 www.eiu.com – “Vietnam: Healthcare and Pharmaceuticals Report”, Dec 7th 201; Economist Intelligence Unit www.ghi.gov/documents – Report of Global Health Initiative Strategy - Socialist Republic of Vietnam www.iom.edu – “Public Engagement and Clinical Trials: New Models and Disruptive Technologies - Workshop Summary”, October 14th 2011; “Essential Health Benefits: Balancing Coverage and Cost” October 6th 2011 www.moh.gov.vn – Health Statistics Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh 70 Appendix A Typology of Healthcare Customer Terms Term Meaning Determinant Application Patient Person under the care of a healthcare provider Formal diagnosis by a medical Traditional term for a person receiving medical care Client Person who has a formal relationship with a healthcare provider Entry into a therapeutic relationship with a provider (with a formal diagnosis) Most often applied to relationships with nonphysician providers (e.g., mental health professionals) End user Person who receives a Receiver of the service or consumers a product, regardless of good who orders it or pays for it Used to distinguish between the person receiving the care and other parties (e.g., the party that pays the bill) Enrollee Person who is enrolled Formal membership in a health plan or by qualifying and other group paying a premium arrangement that finances healthcare Enrollment status determines covered services, copayments, and deductibles Consumer Anyone in the population who might use a health service Inclusion in the population under consideration Universe of potential customers to be targeted by marketers Customer Person who uses a service or purchase a good Receiver of a good or service in exchange for something of value Consumer who has been converted into a buyer of goods or services (source: Richard K Thomas – “Marketing Health Services”, 2nd edition, 2010) Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh 71 Appendix Approaches to Healthcare market segmentation Basic for segmentation Focus Example Demographics Specific demographics Women of group childbearing age Conducting product development, target marketing Geography Geographically concentrated consumer groups A fast-growing new suburb Selecting a site Psychographics Consumer groups exhibiting a particular lifestyle Psychographic cluster Tailoring services or of Generation X career marketing messages to women the lifestyle Heal risk Segments indentified in terms of their level of heal risk Segments of a high level of obesity Targeting for prevention messages and social marketing initiatives Usage level Consumer groups reflecting various levels of product usage Customers loyal to a particular brand Tailoring marketing messages to level of usage Payer category Consumer groups with varying ability to pay Medicare enrollees for health services Benefits sought Product attributes desire by consumers Busy consumers demanding speed and convenience Assessing the financial potential of a market segment Determining the “hot buttons” of a targeted consumer group (source: Richard K Thomas – “Marketing Health Services”, 2nd edition, 2010) Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh 72 Appendix 3: The content of the market research: 1) Gathering the interviewee’s information (Thu th p thông tin chung v ng i đ c ph ng v n): - Full name (H tên): - Age (Tu i) - Gi i tính (Sexual) - Nationality (Qu c t ch) - Working place and position (N i công tác ch c v ) 2) Greetings and briefly introduction about this interview (Chào h i gi i thi u s v bu i ph ng v n): Good morning/afternoon Mrs./Mr (Xin chào anh/ch ) It’s very nice to see you here We would like to say appreciate for your time to join this interview of Viet nam healthcare services in general and the private hospital in particularly First of all we want to explain clearly the purpose of this interview as well as introduce briefly about VCH /(R t vui đ c g p anh/ch Chúng r t trân tr ng th i gian quý báu anh/ch dành cho đ ti n hành bu i ph ng v n v tình hình d ch v y t c a Vi t Nam hi n c ng nh b nh vi n t u tiên s gi i thi u s qua v m c đích c a bu i ph ng v n c ng nh gi i thi u cho anh/ch v b nh vi n c a chúng tôi) - Explain the purpost of this interview:/ (gi i thích v m c đích c a bu i ph ng v n) “Currently, the healtcare services in Vietnam, especially the hospital is always a hot issue as well as top concern of our society Beside that the development trend of advanced private medical sector are the people’s turn to choose the private health with high quality, prestige in facilities and care services Towards long-term goal for the health care in private hospitals will meet the needs of the people any city in particular and society in general, we conducted discussions with him/ her Hope that you can express your opinions and assessment so that we can understand more about the expectations of our consumers for the development of health services in private hospitals as well as concerns about medical treatments?” Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh 73 “Hi n nay, hi n tr ng khám ch a b nh b nh vi n v n đ nóng c a xã h i Xu h ng phát tri n c a ngành y t tiên ti n ng i dân chuy n sang khám ch a b nh t i c s y t t nhân có ch t l ng cao uy tín H ng đ n m c đích lâu dài cho vi c khám ch a b nh b nh vi n t s đáp ng ph n nhu c u c a ng i dân thành ph nói riêng xã h i nói chung, chúng tơi ti n hành bu i trao đ i v i anh/ch Mong anh/ch có th bày t quan m đánh giá c a đ chúng tơi có th hi u sâu thêm v nh ng mong mu n c a anh/ch cho vi c phát tri n d ch v y t t i b nh vi n t c ng nh m i quan tâm c a anh/ch đ i v i d ch v y t gì?” - Introduction about VCH (Gi i thi u s qua v b nh vi n VCH) 2) Questions and Answers (Ti n hành h i đáp): The questions are made from the below table: No Variable QUESTION What you look for when choosing your healthcare provider? The current healthcare and medical services of the hospital What bothers you when you visit a healthcare provider or facility? Customers’ satisfaction elements What would make your health care visits more "hassle-free"? Customers’ satisfaction elements What services would you like when you visit a healthcare provider? The current healthcare and medical services of the hospital Generally, are you happy with your current private healthcare provider? Customers’ satisfaction elements Do you have a habit of routine checkup or medical examination? Can you explain more the reason if you say no Habit of routine checkup How does routine medical examination and treatment usually affect your hospital decision making to use its healthcare treatment? Customers’ decision making elements What factors made you choose VCH as your Customers’ decision making healthcare provider? elements Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh 74 Have you considered using VCH as your healthcare provider? Customers’ satisfaction elements Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh 75 The data of the interviewee from the survey: Name of Interviewee No Nguy n Kim Duy Nguy n S n Khiêm Age Male (M)/ Female (F) Nationality 41 M Viet Nam Manager of Construction Department – Construction and Building Materials JSC 34 M Viet Nam IT Senior Executive - DHL Position -Working place Nguy n Tr n Tu n Tú 29 M Viet Nam Facility Manager – Jones Lang Lasalle D ng Th Chân Lý 31 F Viet Nam Manager of Human Resource – Study Link International Lê Th ài Trâm 38 F Viet Nam Vice Manager of Administration Department – Sai Gon Commercial Bank Lê V Ng c Minh 28 F Viet Nam Project Manager – HSBC Viet Nam Topart Laurent 35 M France Institutional Sale Department – ACB Securities Co.Ltd Duco Hein 32 M Dutch Sale Consultant – Traveling Agency of Netherlands Dustin Nguyen 32 M Australia Architect – Adelaide Consultancy and Construction Company 10 Katie Bui 42 F Singapore Executive at Customer service - Ehrlich Motor Company Marketing Plan for The new Consultation Centre of Vietnam Century Hospital MBAVB4 - Tr n Hồng Bích Kh