marketing analysis of mount elizabeth

1) Executive Summary & Introduction

a) Executive Summary (one page, words not included in total word count)

b) Introduction: depend on lead in approaches

* Direct lead in: issues enveloping organization (150 words), or

* Traditional lead in: rationales, objectives, limitations of plan (120 words)

a) Company background, highlight on accolades, specialties (200 words)

2) Identification of key issues / Situational analysis (750 words)

* SWOT analysis (base on strength of customer under Porter 5 Forces framework…., application

of Porter 5)

* PESTLE

* Mandatory: positioning map

* Identify the issues from industry & organization dimensions (surfaced issues will be linked to

the rest of plan ie. 7Ps & recommendations)

3) Analysis of marketing mix strategies

* At least 6Ps (avg. 230 words per P) ** focus a bit more on price

* Evaluate the soundness of present marketing mix strategies adopted by the organization ie.

matching customers’ benefits & competitors strengths

* Flower of service (DO NOT DRAW), pricing tripod, 4W of distribution, service blueprint

(mapped out in Appendix), servicescapes etc… Servqual, RATER

Servicescapes = lounge area, scent, ambience, environmental factor

4) Recommended strategies (450 words)

* Rationales for recommendations

* Dimensions of recommendations (business, service marketing, customer’s perspectives)

* At least 3 major recommendations (long term, short term)

* Can be consolidated under family approach ie. competition, service, strategies (with sub-

recommendations)

profitability, customer service, positioning

Examples of rec:

Differentiation (product extension, service process, input of servicscapes)

Customer service (training, loyalty programme, soliciting of customer involvement in value

creation)

Positioning (communication, brand refreshment e.g. apple refresh brand values from macintosh

to apple, new service creation

5) Conclusion (100 words)

* Traditional approach (summary of key findings)

* Extension of plan ie. posting of hypothetical scenario, questions & etc…

----Liyana Part----

Executive Summary

A recent report from The Straits Times has identified that medical tourism in Singapore is on the

decline. In order to prevent the decline and to sustain Singapore as a leading medical hub in the

Southeast Asia, this report has chosen Mount Elizabeth Hospital (MEH) as a case study.

Firstly, the report identifies MEH’s existing issues by analysing through SWOT and PESTLE

analysis. After identifying the issues based on the two analysis, the report has positioned MEH

from its competitors.

Secondly, the report uses marketing mix strategies to identify MEH offerings, and the flower of

service concept to narrow down what type of supplement and enhanced services MEH can offer

to their patients. Based on these strategies, the report follows up with Booms and Bitner

servicescapes concept to further improve MEH existing offer of services.

Lastly, the report concludes with recommendations based on the strategies which has been

analysed that enables Singapore to sustain itself as a leading the medical hub in the Southeast

Asia region

1.0 Introduction

Singapore well-planned leadership on healthcare is globally acclaimed and ranked first among

the 51 global participating countries according to Bloomberg’s 2014 report on the World’s Most

Efficient Healthcare providing countries. With its life expectancy at birth increased by 4 years

over the period from year 2000 to 2012, and low under-five mortality rate per 1000 live births as

compared to other World Health Organization (WHO 2012) region. It has enabled Singapore to

enjoy a constant stream of visitors from around the world seeking to understand how Singapore

can achieve such sterling health indicators.

As a multi-faceted medical hub, Singapore pulls in an increasing number of medical

professionals and multi-national healthcare-related corporations from around the world to share

their expertise as well as carry out research and development activities. In year 2011, Singapore

medical technology has contributed approximately S$4.3 billion and created over 9000 career

opportunities (EDB 2015). The exchange and access to innovation in medical technology are

continuously strengthen with the government investment of S$5 billion to date that goes on to

seek new breakthrough has demonstrated Singapore’s long-term strategy to boost its economic

competitiveness and transform into an innovation capital.

Company Background

The Joint Commission International (JCI) first accredited Mount Elizabeth Hospital in 2006 and

in order to be reaccredited again for the second time, it had to adhere to a strict audit process. JCI

surveyors went down to the hospital to review their respective operating procedures and

practices. (Parkway 2013)

The JCI is a globally renowned healthcare accreditation body, which provides a benchmark for

healthcare organisations. Healthcare organisations must go through a re-accreditation audit every

three years in order to remain as a JCI accredited healthcare organization.

In 2013, Mount Elizabeth Hospital was awarded “Singapore Service Excellence Medallion -

Organisation Commendation Award, Customer Experience” (Singapore Service Excellence

Medallion 2013) and in 2014, it received the “Singapore Experience Awards 2013 - Best

Healthcare Experience”. (Singapore Tourism Board 2014)

IHH Healthcare, which is the parent company of Mount Elizabeth Hospital, reported 9% increase

in net profit to approximately SGD $75.4 million. (Woo 2015)

Mount Elizabeth Hospital is known to be the centre of excellence for different departments such

as pediatric, cardiac, haematology, neurology and oncology just to name a few.

The Haematology and Stem Cell Transplant Centre was established in 2004 at Mount Elizabeth

Hospital. This was where Doctor Patrick Tan performed a successful unrelated-donor blood stem

cell and cord blood transplant, a world’s first. It was also the first private hospital to have

successfully performed an open-heart surgery. (Mount Elizabeth Hospital 2015)

2.0 Market Profile & SWOT Analysis

The uniqueness of products and services perceived by the patients may be physical or

psychological which is essential for MEH to focus on the use of differentiation strategy to

develop core competencies (Ireland, Hoskisson and Hitt 2008). By establishing an understanding

on its patients’ preference profile, it enables the hospital to create value that sustains the

patient's’ interest that will ultimately translate into profit and long-term relationship.

The diverse range of accommodation for instance, MEH provision of service tier offers different

value that is required by its patients based on the price variable and also facilities that are catered

to best suits the patient's’ path to recovery.

Strength Weakness

Medical Expertise: More than 30 high-value

medical specialties.

Accreditation: Gold Seal of Approval by

Joint Commission International.

Price Premium: Bigger bill size when

compared to other medical centre.

High Turnover: Workflow and cost

inefficiencies.

Opportunity Threat

Disposable Income: Growing number of

middle class group.

Competition: Domestic and

international competitors.

Demographic Change: Low fertility and

aging population.

Foreign Exchange: Volatility of the

currency exchange.

Figure 2.0(a): SWOT Analysis of MEH

It is however noted that MEH is encountering a more rigorous course of competition with

domestic healthcare providers like Raffles Hospital, and Thomson Medical Centre, it is also

losing the medical tourists to its neighbour countries due to pricing that are exacerbated by the

strengthening of Singapore Dollars (Straits Times 8 May. 2015).

As to give the competition an edge, MEH can take advantage of the situation of strength to

overcome the weaknesses and threats. Being one of the subsidiary of Parkway Group, a market

leader where its Joint Commission International (JCI) accredited hospitals includes Gleneagles

Hospitals, East Shores, Mount Elizabeth Novena and etc that accounts for 70% of private

hospital care in Singapore, it may allow the practice of centralized procurement and development

of human capital in order to secure the economic of scale while achieve profit maximization.

2.3 PESTLE Analysis

In contrast to the SWOT which identifies issues in a more generalized criteria, a PESTLE

analysis is adopted to provide an overview of the stimulus and scenario that focuses more on the

healthcare industry’s issue that is fundamental for marketing planning in order to develop

business strategies for exploiting opportunities, as well as systematic risks involved.

Political Government’s initiatives to improve accessibility of primary healthcare.

Use of healthcare strategies to mobilize support towards the political

parties.

Economic Medical tourism.

Rise in disposable income that enables quality healthcare.

Socio-cultural Changing demographic ie. ageing population.

Change in lifestyle.

Technological Singapore as a medical hub in Asia.

Advanced information technology.

Legal Regulatory authority in handling professional misconducts.

Mature legal system.

E

nvironmental

Introduction of the Environmental Cleaning Guideline for Healthcare

Settings for the prevention and control of infections.

Infectious Diseases Act enacted in 1976 that is jointly administered with

the National Environmental Agency.

Figure 2.1(a): PESTLE Analysis of the healthcare industry.

The high economic growth since year 1960 has transformed Singapore to be one of the highest

gross national income per capita in the world as reported by World Bank (2014). The rise in

annual disposable income has witnessed a change in health consciousness where patients today

with an increased level of sophistication no longer satisfied with basic offerings, but the value-

added benefits such as after-care services, reputation, medical expertise, personnel, and hospital

facility etc.

In year 2013, the advanced medical care and specialties such as neurology, oncology and

pediatrics etc has attracted a medical expenditure of S$832 million into Singapore from medical

tourists alone (STB 2015). The economic gains from the medical tourism has created

unprecedented opportunities for healthcare providers by working in tandem with various

statutory boards to expand the reach in key target markets and showcase Singapore as a world-

class medical hub.

2.4 Positioning Map

The following figure indicates the existing direct and indirect competitors within the healthcare

industry. The highly skilled medical specialists and healthcare professionals alongside dedicated

facilities and equipment have made MEH a leader in more than 30 areas of expertise including 7

Centres of Excellence.

Figure 2.4(a): Competitive Positioning Map

As a benchmark comparison, MEH is positioned as a healthcare provider with one of the

strongest brand equity due to its loyal patient base and also the increase in perceived quality

(Aaker 1996). Its value proposition goes somewhat further than its competitors with treatment

options varying from an array of services that enables the hospital to better address patients’

needs and concerns that are beyond the conventional care. MEH’s medical expertise is putting a

great deal of sensitivity to patients’ needs so as to allow the understanding of what patients value

and response to their preferences which result in higher patients satisfaction.

Nevertheless, The price premium of MEH and currency strength has resulted in an increased

difficulty to maintain its international position while healthcare providers in competing countries

such as Thailand and Malaysia are gaining international accreditation. The analysis of the

positioning map infer the need for MEH to seek new opportunities to widen the gap of

competition as the domestic and international healthcare scene is becoming more saturated while

the issue of quality over cost is constantly highlighted.

-----Ashley Part-----

6Ps

Figure 1.0 MEH overall review: Flower of Services

1. Product

MEH core product is offering intangible service which is medical care to the customers.

These services consist of providing specialized healthcare through specialist outpatient

clinics in the hospital and the core services which are cardiologists, cardiac surgeons,

neurologists and neurosurgeons from across the region. It also provides 24 hours walk in

clinic and ambulance stand-by for immediate urgent care medical problems or critical

cases to patients.

In today’s competitive world, MEH understanding that they have to stand out from the

rest of competitors and enhance points-of-differentiation to distinct brand identity in the

minds of target markets (K. Rama Mohana Rao, 2011). By understanding the attitudes,

perceptions and expectation of prospective customer, MEH provides the treatments by

highly skilled specialists with advanced technology and quality care to the patients as

well as determine customers’ attributes. MEH was concerned the safe keeping as

mentioned in Figure 1.0, as ensure the hospital delivery a safe healthcare service to

improve quality of life, with emphasis on effective patient clinical outcome and patient

safety.

2. People & Process

Customers’ perception of lower power than the medical service provider is likely to place

them to a position that heightens the possibility of experiencing dissatisfaction with the

encounter, especially the first time users of medical service (Lee, Jungki, 2008).

According to Ulrich and Zimring (2004), a good staff communication helps to reduce

disquiet of patients and their families. Also, the service process (blueprint) can be viewed

as a chain of activities that allow the service to function effectively towards to the

customers and instructing where, when, how and what input to deliver (Bitner, Ostrom,

Morgan, 2007)

MEH has established standard service encounter routines to manage the overall sequence

from line of visibility, backstage of servicing and support system with focusing on

resources arrangement and procedures. In addition, they are trying to understand the

customer actions and psychologies then provide the consultation and exact advice to

them, these will be potentially produce additional value for the customer. These will be

the most important factor which influencing overall satisfaction with how much be

concerned about across different patient categories. MEH understand the significant of

customer service, and they are strongly pushing the organisation by well trained nurses

and stuffs of Mount Elizabeth Patient Assistance Centre (MPAC), also supported by

regulatory authority in handling professional misconducts in offering superior customer

services to exceed customer expectation and enhancing customer satisfaction in adding

lifetime value to the organisation.

Figure 2.0 Service Blueprint of MEH

3. Price

As Singapore is a medical hub in Asia, MEH is playing the important role for medical

tourism with trusted healthcare image and brand equity to attract international patient to

come along. Although the size of bill is bigger when compared to other medical center,

MEH adopted Product Differentiation Strategies to set the relative pricing by advanced

information technology and performing an excellence service to provide value-for-money

quality healthcare services to the patients. MEH allowed the patients and customers to

consult with the stuff by calling the help line or visit to the website for more billing and

payment information they needed.

The estimating pay for inpatient or day surgery treatment was follow as below:

Figure 2.0 MEH Room Rates & Cost of Financial

However, purchase decision of customers are not only based on perceived brand equity or

the value, but depends on pricing of competitors offering sometimes. Therefore, MEH

need to understand psychology of customers when they come to payment and trying to

improve service and facilities to suit customer's’ expected pricing threshold and value

from MEH without depreciate the reputation of company.

4. Place (Servicescape)

The servicescape is the appearance of the organisation and playing a critical role

informing initial impression and in setting up customer expectation. Services pertinent of

MEH to the Servicescape Model Analysis are defined as below with the environmental

dimensions:

(i) Ambient conditions

Current environment:

Hospital was located at Orchard which is the ‘Heart’ of Singapore, convenient for

international patient to get over there.

MEH rooms are well-designed, spacious, giving customers the good air quality,

scent and temperature by providing a spiritual and holistic ambience.

Recommended improvements:

It would be advantageous to increase the single bed room to lower the infection

rates in hospital.

(ii) Space/functionality


MEH is designed to be more spacious to provide better services and giving the

patient a restful recovery with new facilities

The rooms equipped with modern amenities to shape customer experience and the

facilities to service customers well.


No specific improvements are necessary as the overall layout is well-designed to

fulfil specific purposes and customers' needs.

(iii) Signs, symbols and artefacts


MEH using signs as directions, reception counter, toilets, consultation room as

easier for patients to get the destination with convenience.

MEH also providing some behaviour rules around the hospital to get awareness of

visitors or even patients, example like “non-smoking” and parking direction.


Due to limitation space of carpark, MEH recommend visitors consider taking

public transportation. So, they should effective use of signs, symbols and artefacts

would be more convenience for the visitors.

5. Promotion (Service Communication)

As the flower of service petals, MEH provide tangibility services such as information to their

customers and enhance the brand image to public. Effective communication is the key to build

trust, promote understanding and empower and motivated others. The ability to compete in the

global economy is the single greatest challenge nowadays, but providing verbal directions are

MEH strategies aimed at offering key information to patients to prepare them for their hospital

visit. There are three key strategic elements within the integrated services communication

(i) Internal & External communication

MEH having a good system management, and always make sure the

information are updated and well engaged with colleagues (Internal)

MEH enhance faith and confidence to built strong brand image through

newspaper or internet. (External)

(ii) Corporate identity

MEH aid to address external confusion and reduce unrealistic expectations

(iii) Consumer and Community Engagement

MEH welcome to public to make an enquiry through internet or hot lines, and

professional doctors and support system will answer or reply according the

enquiries.

6. Physical Evidence

A well evidence-based design will improves safety by reducing risk from hospital-

acquired infections. The infection rates will be lower if there is very good air quality and

patients are in single-bed rather than multi-bed rooms. Thus, MEH using Hepa-air

filtration System to ensure the environment of hospital is having excellent air quality

especially during surgery and maintaining positive pressure to protect an

immunocompromised patient from airborne pathogens in nearby rooms. Besides that,

they are providing numerous alcohol-based hand-rub dispensers or hand washing sinks

around the hospital area to remind and increase patient’s hand washing compliance and

thereby reduce contact contamination (Ulrich and Zimring, 2004)

---Bell Part---

4.0 Rationales for recommendations

As an advanced medical hub, there are numerous renowned hospitals for both locals and tourists

to seek treatments. It is a saturated industry and from the positioning map, MEH has outshined

its competitors in its comprehensive medical expertise and its strong brand equity thus there is

little room of growth. However, there are three areas where MEH could approach, namely the

local customer’s perception where quality service , the business point of view to counter measure

and lure competitor’s customers and lastly the important element of hospitality where

professional nurses and after-care services are concerned especially in the growing ageing

population in Singapore.

4.1Three major recommendations

Value Proposition

The demographic challenges of rapidly ageing population in Singapore determine a high

dependence on the quality eldercare systems while keeping cost affordable. (Statistics Singapore

2015) Therefore, MEH could look beyond the traditional model of hospital-based care to the

development of non-acute sector integration to meet the changing healthcare needs of the

population. (KPMG Singapore 2015) Singapore is taking actions to better care integration

especially towards the senior’s health-care needs that requires a knitted relationship between the

hospital and the social care services. (Agency for integrated care 2015)

Competitors such as Singapore General Hospital (SGH) and Khoo Teck Puat Hospital (KTPH)

‘Ageing in Place’ program has collaborated with nursing homes and social voluntary welfare

organisations to provide transitional care services for the elderly. (Khoo Teck Puat Hospital

2015) The demand for transitional care has rose about 30 per cent in the number of patients in

KTPH (TODAY 2015) and manpower has become a challenge even more so during the festive

seasons. (The Straits Times 2015) Such services is now seen only in public hospital (TODAY

2015) and with Singapore’s demographic trend towards an ageing population, it is an opportunity

for MEH to provide such services to cater to the needs of the valued patient’s needs. With large

number of high net worth of customers from neighbouring countries, especially Indonesia,

Cambodia and it adds value to the level of customer service.

Business strategy

Singapore is losing medical tourists to neighbouring countries due to the strengthening of

Singapore dollars. (The Straits Times 2015) MEH is known to have dignitaries and high net

worth individuals from across South East Asia visiting despite Singapore’s strong currency. With

their renowned medical expertise in various areas, it is an opportunity to expand into the foreign

market. Raffles medical group has ventured into the Chinese market in Shanghai earlier this year.

(Shares Investment 2015) Therefore in order to compete with their competitors, MEH should see

the expansion in China as an opportunity to reach competitors customers.

Singapore is a major air traffic hub with excellent connectivity to the Asia Pacific region. (Civil

Aviation Authority of Singapore 2015) MEH should see these as an opportunity and collaborate

with low-cost carriers as supporting infrastructure to bring in more tourists especially from

countries within 5 to 7 hours radius from Singapore. The low cost to travel budget would

complement the service provider to bring in more potential customers.

There is a rise in Singaporean women seeking aesthetic treatments abroad with Korea being their

top choice. (The Straits Times 2015) MEH could adopt the best practices from Korea and

introduce a product extension of Korean aesthetic treatments availability in Singapore. It could

save Singaporeans the hassle of travelling abroad while seeking their ideal treatment at the

comfort of their home.

Positioning strategy

There is a strong positioning strategy of MEH where they provide Patient Assistance Centres

over 10 different countries. (Mount Elizabeth Hospital 2015) As MEH also targets tourists from

neighbouring countries, these service ease communication difficulties faced by their potential

customer who could seek for assistance in their respective country before flying over to

Singapore for treatment. MEH also look further to patients who come to Singapore and only

speaks their native language by arranging for interpreters and translation services.

TCM products have been on the rise in Singapore (The Straits Times 2015) thus MEH could see

as an opportunity to provide a fusion of TCM and western medicine. It would be a strong

positioning strategy since none has inculcate such fusion as yet would provide patients who rely

more on TCM to learn how western medicine could effectively help in achieving stronger health.

References

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marketing analysis of mount elizabeth

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