University College Dublin

National University of Ireland Dublin

Marketing Management Assignment 2

UCD ID: 14208652

Student ID: CT0188990Name: Liu ManWords: 3218

Contents

1.Executive Summary222. Situation Analysis

32.1 Market Summary

42.2 Market Needs

2.3 Market Trends552.4 Market Growth

52.5 PEST Analysis

Political factor------------------------------------------------------------------------------------------------6 Economical Factors -----------------------------------------------------------------------------------------6 Social Factors-------------------------------------------------------------------------------------------------7 Technological Factors---------------------------------------------------------------------------------------72.6 SWOT Analysis72.7Five Forces8 Threat of new entrants-------------------------------------------------------------------------------------8 Threat of substitute products or services----------------------------------------------------------------9 Bargaining power of customers(buy)--------------------------------------------------------------------9 bargining power of suppliers------------------------------------------------------------------------------9 Intensity of competitive rivalry-------------------------------------------------------------------------10 2.8 Keys to success--------------------------------------------------------------------------------------------10 2.9Critical Issues-------------------------------------------------------------------------------------------10 3.Marketingplanning------------------------------------------------------------------------------------------------104. Marketing Strategy114.1 Mission114.2 Marketing Objectives124.3 Target Markets124.4 Strategies124.5 Positioning135. MPLEMENTATION CONTROL145.1. Implementation146.Conclusion147.Reference:16

1.0 Executive Summary The following report presents the marketing strategy of ID Hospital. ID Hospital is a famous medical hub in Asia, which has advanced technology medical systems, research and development methodology, as well as the best medical staff. With the development of science and technology, ID Hospital has become a medical hub with the most advanced technology. In order to explore a bigger market, the hospital makes a marketing plan and expert to get more information.According to the survey taken by the hospital, they made the objectives as follows:

(1) Create brand new image for ID Hospital. (2) Be highly accepted among the consumers from all over the world.

(3) Gain a profit 12 billion by the end of 2020.

2. Situation Analysis The fine development of cosmetic surgery technology aims to establish a more perfect "plastic design". In the past, simple cosmetic surgery to repair as ordinary surgery, which aims to solve the defects of the pathological procedure of human nature and fine degree is still not fully play (Duncan, T.I. 2004). But today's plastic technology, begins to focus on life and beauty, the main purpose of the customer is in becoming "more beautiful", so, personalization, personal plastic design becomes the key to customer visits (Lauterborn, R.F. 2010).On the one hand, more than cosmetic surgery using minimally invasive technique of suture, surgical incision in general are controlled within 2 cm, incision finer, technique of suture and more perfect (Morgan,R.M .& Hunt,S.D. 1994). Different projects, on the other hand, began to develop unique technology, the technology used in the preoperative design, such as plastic hairdressing hospital development in Henan province "gold five line" breast implants, "10 position measurements of liposuction", the three elements of the "gold" edges, whether it is a necessary to brand promotion or the need of technology itself, all of these, as the narrowing of the technical differences and homogeneity, cosmetic surgery is developing towards a more "refined" way.

With technology constantly updated, it will promote the development of cosmetic beauty industry directly. Technology updates, made plastic surgery safer and less damage, better effect, and most often plastic surgery implant materials are also constantly updated and improved year by year, which are safe to human body, better compatibility with the body's tissues, closer range of physical characteristics, more natural and more real, which in turn make more people begin to accept plastic fake body.

With the further development of internationalization and globalization in recent years, in order to keep pace with the international advanced technology of hair exhibition, domestic plastic industry on a large scale of talent exchange and academic exchanges have become routine. Orthopedic hospitals look through the international communication, update technology, develop new markets, and often use brand promotion international experts so as to play a brand effect. In short, the world of cosmetic surgery technology difference is narrowing, while technology of homogeneity is big.

2.1 Market Summary

As is known to all, ID have a plastic surgery clinic to achieve the market development space, while South Korea is a holy site in the cosmetic industry, so for the hospital, the market is huge. According to a survey directed by ID Hospital, average six persons in ten have the intention to be beautiful, and the most reliable place they think is the hospital. The ID Hospital is the most famous all over the South Korea, and it is easy to spread to everywhere around the world.

Psychographic

When it comes psychographic, people are successful in their career and have the ability to enjoy their life in their social group. They usually think that they should be perfect, not only in life but also in appearance, therefore, they are the potential customers of the ID Hospital.Geographic

ID Hospital has made significant growth, and to date, covers more than 200 storesacross 26 countries located in the South Korea and some Asian countries, Moreover, it had launched an e-store in 2008, Facebook page and mobile application that offers access to a worldwide service, which serve both domestic and international customer.

Demographic

ID Plastic Surgery Clinic has being targeting young women at the age of 20-40, most of them are females who have step into the working society. Forty-eight percent females among them are 23 to 34 years old, which covers a wide age range, including young users to active adults. The fashion-conscious people tend to be ages 20-40. These people are social oriented and show high concern on fashion trends to enhance personal image in social circle. In their opinion, their looks are more important than their money.

Behavior Factors

As people living standards rise, the more people pay attention to the quality of living standards. Beauty, however, is the best investment, so the people in front of the tag is oneself become more outstanding, which is the trend for cosmetic (David, F. 2000). Fact is as expected, investigation and study showed that in order to be more good-looking people tend to go to cosmetic surgery, because in their eyes, money doesn't matter, but the important thing is spent on themselves.2.2 Market Needs

With the progress of economy and science developed, the concept of social change, and the competition, more and more people tend to go through cosmetic surgery to change their image, hope for good life, enrollment, employment, work, love, marriage, social life, so as to improve their quality of life, realize own dream, or even change your life ( Lawrence, C. 2001). In this form of influence, medical cosmetic surgery organizations begin to rapidly increase, bringing more and more capital and talent into the industry.2.3 Market Trends

Twenty years ago, the great majority of plastic surgery hospital in plastic repair is given priority, and beauty was just secondary. Service subjects were mostly the trauma, burn, due to congenital factors, or disease caused by the body has obvious deficiency, dysfunction of patientsPhilip, K. 2003).For today's cosmetic surgery, in addition to carry out the traditional plastic repair, the main purpose is regarding beauty. More will be changed with the help of modern medical cosmetic surgery technology and more will strive for the beauty of face, body and skin. Healthy people, who may have good physiological and psychological health, are called "customers".2.4 Market Growth

As a new industry, cosmetic surgery also gets affected by the change of the times and the change of the service object, and ever constantly changing customer requirements. In order to adapt to this change, cosmetic surgery scope of subjects is becoming more and more (Alan, R. & Jack, T. 2001). Starting in psychology, medicine, nutrition, aesthetics, ethics, fashion, market and marketing, etc., it touches most of the academic disciplines.

Timeline

1960-1980: Science and technology are behind, peoples focus on beauty is not very big.

1980-1990: The development of the science and technology had some breakthrough, but their awareness of beauty have not reached the corresponding level, so there were few cosmetic customers.1990-2000: With the progress of science and technology and the progress of the society, people with wealth begin to pay close attention to facial plastic surgery2000-2010: The progress of science and technology makes cost reduction, so more and more people avail cosmetic surgery 2010-2015: Beauty has become a fashion; cosmetic surgery is also a kind of fashion2.5 PEST Analysis

P E S T Analysis refers to Political, Economical, Social, and Technological factors that influence the marketing planning of a brand or product to a new market.

Political Factors:

The Korea government regard medical tourism as its sunrise industry, which aims to achieve the goal of developing tourism and cosmetic surgery at the same time. The department of Tourism and the Seoul travel guide decide to increase the advertisements to promote the development of its medical beauty industry. The action will undoubtedly make agencies like the ID hospital become more popular among customers from other countries. The law of Korea clearly ensured that medical beauty industries have the right to promote their services to foreigners.

Economical Factors:

The medical beauty industry of Korea has become a typical example of the advanced cosmetic industry. Its highly developed medical beauty industry attracted customers from both Asia and Europe. To some extent, its reputation has spread all over the world, so that if the ID hospital expanded abroad, it will be more competitive than its competitors from other counties.

Social Factors:

As time goes by, with the improvement of peoples living standards, now it is very common tohavecosmeticsurgery. More and more people are frank to admit that they have or going to have cosmetic surgery. Some people even prepare a cosmetic surgery for their son or daughter as 18th birthday gift. Time has changed, so do peoples thoughts. Further, the world holds an open attitude to medical beauty.

Technological factors:

Generally speaking, the differences between the level of medical technology of China and Korea is slight. While, both Japanese and Koreans are strict to themselves, they always do things cautiously, and they are characterized by carefulness. In Korea, doctor is regarded as a holy profession, so that it is very difficult for them to get the medicallicense. In addition, the advantages of Koreas medical technology lie in the fact that the doctors have a high demand on specialization of their profession. For instance, some of them focused on eye surgery, others focused on nose surgery. Those doctors believe in the truth that practice makes perfect, so that their technology is reliable.

2.6 SWOT Analysis

Strengths:

-superior geographical environment

-largest medical resource in South Korea

-safe and convenient hospital building

-highly trained staff and advanced technology equipment

Weakness:

-high cost of surgery

-unfamiliar environment and language barrier for foreign patients

Opportunities:

-plastic surgery becoming popular trend

-updated aesthetic concepts

-effective consumer protection agreements

Threats:

-news of botched operations or accidents

-medical malpractice

-less qualified doctors

2.7 Porter Five Forces Strategy Analysis

Porter five forces analysisis a framework that is used to analyze level of competition within an industry and business strategydevelopment. These forces are closely related to themicro environment of a market. All in conclusion, the five forces are as the follows:

Threat of new entrantsAccording to a survey, there are about 45 million people in Korea, but there are about 2500 plastic surgery hospitals. In the world famous cosmetic street of Seoul, there are about 200 medical beauty agencies. The competition at home is so fierce, not to say new entrants from other countries. In a word, if ID hospital wants to win, it must make the best use of its advantages, and fully make use of its brand effects.Threat of substitute products or servicesAt present, the threat of substitute products or services may come from some beauty product or make-up product, and some beauty devices or machines. Nevertheless, such threats have no powerful ability to compete with plastic beauty surgery hospitals. Products and services of the ID hospital belong to the medical appliance grade. Its effects are obvious and it can last for a long time, and the beauty is much more natural. In other words, the medical beauty industry is unique and special.Bargaining power of customers (buyers)To be frank, the medical beauty industry is a kind of luxurious consumption. Generally, only when people satisfied their basic living requirements or necessities of life then they start to pay attention to their appearance. What is more, only those who are rich enough have the ability to pay for the plastic beauty surgery. Most famous stars tend to undergo medical beauty operations. So, that is to say, once the customer make up his mind to change, he would care little about the price or cost of the surgery. As a result, the bargaining power of customers can almost cause no negative effect to ID hospitals marketing.Bargaining power of suppliersID hospital has long held the idea of providing the best service with a proper price. Its prices of products and services are comparably reasonable, which will undoubtedly contribute its bargaining power. Besides, ID hospital aims to win popularity through its first class services, so, the bargaining power only play a small part in its competition, which will not have large effects on its development. Intensity of competitive rivalryAs to the intensity of competitive rivalry, this may be account the most significant factor that will influence ID hospitals marketing expansion. As is well known, the medical beauty industry is a newly developed industry, and it is the most promising field. To ID hospital, the fierce competition pressure is both a challenge and an opportunity to improve itself.

2.8 Keys to SuccessThe keys to success of ID Hospital is propagandizing the brand and building a perfect image for customers. In addition, ID Hospital has established total customer satisfaction by delivering the values of quality, service and pricing as well as satisfaction to the customers. Through these keys to success, it has become a potential profitable and sustainable company that foresees the success for future by laying a platform for expansion.

2.9 Critical Issues

To attract the broad masses of customers to do operations, the key is to make the people believe the hospitals technology and service quality. If the hospital wants to be successful all over the world, it must be reliable for customers. According to the survey, the price must be decreased, because the high fee can not apply for everyone who wants to be more beautiful. In addition, the level of services also should be increased. For example, the language is one of the most important factors. Foreigners can communicate better with the doctors and nurses if that comes true.3.0 Marketing Planning

In order to successfully enter into a new market, I think the ID hospital can make a marketing plan from the following several aspects: first of all, it should make the fullest use of its advantages over technology, products, first class services and rich experience; secondly, it should value the importance of the brand, if the brand is well known, the services would turn to be more appealing by increasing its price, but not reducing it; in addition, it should rethink the weak points of its products or services, thus to provide better services. Another important point is: before entering the market abroad, the managers should firstly make some investigation into the situation of the target market place, and the factors such as its competitors, the brands popularity, the employment costs, the tax expenses must be carefully analyzed.

4. Marketing Strategy

The growth of fashion industry has caused an increase in competition market worldwide. With such growth, ID hospital faced several challenges especially in the strong competitive market.

The main focus of ID hospital marketing strategy is to extend its service, expand its influence in overseas market to increase customers base and maintain good customer relationship to retain loyal customers of ID hospital (Burr, V. 2003). Through the continuation of improvement and innovation, customers are able to experience product varieties, which will project a better brand image in the mind of consumers.4.1 Mission

ID hospitals mission statement, a statement of its organization values by offering services to its customers. Indeed, ID hospital has shown values that keep customers loyalty and likings (Xing,Q,P. 1995). Not only the service is in better quality, it also has provided distinctive line that captures the women's choice and many alternative ways of pay, which can make customers feel better.

4.2 Marketing Objectives

Every organization has its own core competences and brand equity. Building up strong brand equity makes brand valuable. There is a need for ID Hospital to have brand differentiation.

Some objectives that ID hospital has to achieve according to the marketing plan:

Increase customers

Build effective campaign to bring in new customers

Build three hospitals named ID Hospital by the end of 2016

The profit expect to achieve 12billion per year in 5years

Build another three hospitals named ID Hospital by the end of 2020

4.3 Target Markets

According to the plan, the target market is Asia in the beginning two years. After the first stages goal is achieved, the second should be taken, and make the brand all over the world.

4.4 Strategies

Strategy indicates a long-term goal and a plan of action that effectively creates a vision for the organization. In order to remain competitive and sustainable, in order to achieve its goal, the following strategies for the next few stages must be taken:

Firstly, a lot of media must be adopted, because they can spread the brand and make it known by every one.

Secondly, increase the quality of service and make good impression for customers, only in this way can the hospital achieve the goal of becoming famous.

Thirdly, after attracting customers, the price of operations must be reduced.

Fourthly, when the market occupies the market of Asia, maintain this situation for a period of time and then expand to the international market.

4.5 Positioning

ID Hospital has been one of the most popular hospital which is considered the first hospital in Asia that specializes in maxillofacial surgery and known as the high quality of technology and service. In todays market, it is shown that there is an increase in beauty conscious consumers (Singaporeans are beauty conscious, 2010). Hence, ID hospital will position itself as a high quality group that offers variety of beautiful operations. For instance, it cooperates with a lot of common hospitals and offers great support with maxillofacial surgery. In the mind of consumer, the beauty is priceless and there is no chance for all of people to change faces. On the one hand ,the hospital makes every effort to spread its brand; they hope the brand can be known by everyone. On the other hand, it also makes cooperation with different common hospitals and clinics. Through this way, the hospital can make full use of its resources and high technology (Krishna C. 2001). In order to move towards such positioning, it has to maintain its current awards and also improve the award in their different specification, such as fame, technology and service quality.5. Implementation Control 5.1 Implementation

The milestones chart on the next page identifies the key marketing programs. This is to help the marketing managers of the company to assign the tasks, make sure the tasks are successfully done on time and on budget.

MilestonesPlan

MilestoneStart DateEND DateBudgetManagerDepartment

Marketing plan completion4/9/20156/9/20150BobMarketing

Broadcast advertising8/9/201512/12/2016700,000TimMarketing

Print advertisement10/9/201520/2/201790,000TimMarketing

Spread brand20/9/201520/9/201011,070,000Marketing

cooperation20/9/201720/9/20203,500,700Marketing

Total 15,360,000

6. ConclusionIt is obvious that the medical cosmetic industry is an industry with great demand and development. With the development of the times, the status of cosmetic beauty industry is increasing. In order to extend its brand, ID hospital aims at making scientific marketing strategy, clearly grasp the law of development of the market and the real needs of consumers. The market investigation and analysis can help make conclusions about the present and the future development trends of the cosmetic industry, and can make a series of strategies to achieve the companys strategic goals: expanding brand awareness and cooperating with many medical clinics and hospitals, making full use of their resources and technology to achieve its profit targets.

Reference

[ 1 ]Duncan, T.I.(2004) Using advertising and promotion to build brands. China: Tsinghua university.

[2]Lauterborn, R.F. (2010) New marketing litany: Four P's Pass, C's take over [J].Advertising Age, 61(41): 26.

[3 ]Morgan,R.M. and Hunt,S.D. (1994) The commitment-trust theory of relationship Marketing ,Journal of Marketing , London: 20-47( June 2010).[4]Ozsomer,A. and Simonin, B. L. (2004) Marketing program standardization: A cross-country exploration. International Journal of Research in Marketing. 24-36 (Feb 2014)[5] David, F. (2000) Education-Based Marketing: How to Make Business Come to You. Available at: http://www.marketinngbbestpractices.com [Accessed 7 April 2015].[6] Lawrence, C. (2001) Friend or foe to customer relationships, Marketing Management. Chicago: University of Chicago Press Journals[7]Philip, K. (2003) Concepts Every Manager Needs to Know. American: John Wilry &Sons.Inc[8] Alan, R. and Jack, T. (2001) Positioning, the battle for your mind. United States of American: McGraw-Hill companies.

[9]Vivien,B. (1995) An Introduction to Social Constructionism. London: Routledge.

[10] Xing,Q,P. (1995) The rise and prospects of medical aesthetic, Social Science & medicine.(Grreat Britain Journal Of Nature), 41(8), pp.22-24. [12] Krishna C. (2001). Using customer information effectively. Available At:

http://searchcrm.techtarget.com/tip/CRM-analytics-Using-customer-data-effectively[Accessed 8 April 2015].spread its brand

cooperation

high

high

low

low

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