improving st. luke’s episcopal health system’s market share through increased marketing and...
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Improving St. Luke’s Episcopal Health System’s Market Share Through Increased Marketing and Advertising
09.27.07
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Accomplishments in 2007 – St. Luke’s Episcopal Health System
Corporate Communications & Marketing and the Web Center have met David Fine’s vision for the System: To be the healthcare provider of choice in the Greater Houston area.
Marketing & Corporate Communications• Sponsorship of Theatre Under the Stars & Komen Race for the Cure® • Partnership with YMCA for reduced membership for employees • Integration of all corporate communication functions including advertising, public relations
and internal communications • Organization of board retreat • Coordinated employee celebrations and events • Successfully promoted “New Beginnings” initiative to all System employees
Web Center• Monthly publication of eNewsletter to more than 40,000 subscribers • Deployment of new online patient registration and bill pay system • Creation of online Breast Health Portal • Daily update of photos on home page of The Source
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Accomplishments in 2007 – St. Luke’s Episcopal Hospital
Corporate Communications & Marketing has met Dr. David Pate’s excellence, engagement and efficiency goals outlined in the five year plan for St. Luke’s.
• Published over 18,000 brochures for various specialties • Sent eight news releases covering stem cell research, St. Luke’s Medical Clinic and more• Coordinated employee celebrations and events • Promoted key internal initiatives
• LEAN• Capture your Care• “Ask me if I’ve washed my hands”• Joint Commission preparation
• Planned and promoted 25th anniversary of Heart Transplant Program at THI • Created and executed communication plans
• U.S.News & World Report rankings• 2007 Distinguished Hospital Award for Clinical Excellence by Health Grades• Neuroscience Center of Excellence Designation• Stroke Center Disease-Specific Certification
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Accomplishments in 2007 – St. Luke’s Episcopal Hospital
The Web Center has met Dr. David Pate’s excellence, engagement and efficiency goals outlined in the five year plan for St. Luke’s.
• Deployment of online Performance Dashboard for SLEH • Launch of new microsite for NeuroScience Center • Creation of new online Outpatient Diagnostic Scheduling Request • Addition of new web section for St. Luke’s Medical Clinic• Daily updates of Joint Commission “Tips of the Day” • Shooting and editing of “Above & Beyond” videos
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Accomplishments in 2007 – Suburban Expansion
Marketing & Corporate Communications and the Web Center have followed the System’s guiding principles: Integrity, Valuing People, Excellence, Goal Orientation and Stewardship.
Marketing & Corporate Communications• Successfully publicized Debbie Sukin’s Modern Healthcare award as an “Up and Comer in
Healthcare” • Staffed and promoted
• Groundbreaking for new Patient Care Tower II• Groundbreaking and tree topping ceremonies for Sugar Land Hospital
• Shooting and editing video about suburban expansion for Sept. 2007 Board Meeting • Write, edit and publish From the Ground Up newsletter
Web Center• Deployment of online Performance Dashboard for WCMC• Enhancement of WCMC section of The Source • Addition of online payment system for parenting and birthing classes • Established early web presence for the Sugar Land Hospital
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Initiatives & new projects planned for 2008
We can improve St. Luke’s Episcopal Health System’s market share through increased marketing and advertising in 2008.
Marketing & Corporate Communications• Market research• Development of brand campaign• Enhanced advertising including new media outlets (radio, TV, sponsorships, Wall Street
Journal, NY Times, billboards, direct mail)• U.S.News & World Report Campaign • Redevelop and rebrand internal publications
Web Center• New system web site • New vehicles for web advertising• Relaunch of The Source
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Initiatives & new projects planned for 2008
We can improve St. Luke’s Episcopal Hospital market share through increased marketing and advertising in 2008.
Marketing & Corporate Communications• Break ground for new patient care facility in medical center• Launch St. Luke’s Medical Clinic in the Galleria• Promote patient stories to demonstrate level of care and technology• Enhanced advertising including new media outlets (radio, TV, sponsorships, Wall Street
Journal, NY Times, billboards, direct mail)• U.S.News & World Report Campaign • Redevelop and rebrand internal publications
Web Center• New hospital web site• New vehicles for web advertising
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Initiatives & new projects planned for 2008
We can promote and introduce St. Luke’s Suburban Expansions through increased marketing and advertising in 2008.
Marketing & Corporate Communications• Ground breaking for new patient care center in Sugar Land• Ground breaking for Clear Lake• Launch two new Minor Emergency Care centers in Woodlands• Promote Sugar Land Opening• Launch new Medical Clinic in Galleria• Announcement of new Katy hospital• Enhanced advertising including new media outlets (radio, TV, sponsorships, Wall Street
Journal, NY Times, billboards, direct mail)• Redevelop and rebrand internal publications
Web Center• New web sites – Woodlands, Sugar Land, Clear Lake • New vehicles for web advertising
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St. Luke’s Episcopal Health System is being outspent by competitors
2006 – 2007 media spending*
St. Luke’s Episcopal Health System is being outspent by all competitors in Houston. Memorial Hermann is outspending St. Luke’s by a margin of 5 to 1.
At these levels, St. Luke’s messages cannot penetrate the market and reach the necessary audience. Other healthcare providers are using more channels to reach the consumer more frequently.
Methodist35%
Memorial Hermann41%
M. D. Anderson16%
St. Luke's8%
Methodist $8,484,042Memorial Hermann $9,954,935
M. D. Anderson $3,792,611St. Luke's $2,036,021
2006-2007 Share of voice
•Includes TV, radio, print, outdoor & sponsorships for 2006 and annualized for 2007
Source: TNS Media Advertising & local station reps
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At its current budget levels, St. Luke’s can only skim the surface
At its current level of spending, St. Luke’s Episcopal Health System is not adequately reaching consumers in any media. The current budget allows St Luke’s to cover only a few media at base levels. With additional funding, St. Luke’s will be able to compete and seize greater market share.
2006-2007 Spending by medium*
Source: TNS Media Advertising & local station reps
•Includes TV, radio, print, outdoor & sponsorships for 2006 and annualized for 2007
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
TVRadio
Newspap
er
Outdo
or
Spons
orsh
ipTot
al
Methodist
Memorial Hermann
M. D. Anderson
St. Luke's
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Examples of competitor advertising
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Advertising impacts consumers’ perceptions and awareness
According to NRC Healthcare Market Guide, respondents were asked “Which hospital system in Houston do you prefer for heart care?” Evaluating the three year trend from 2004-2006 indicates that St. Luke’s preference is declining while competitors are gaining. From 2004-2006, advertising for St. Luke’s has been flat, while Memorial Hermann and Methodist have continued to increase their budgets. Advertising is clearly impacting consumer’s perceptions.
“Which hospital system in Houston do you prefer for heart care?”
Year St. Luke’s Memorial Hermann Methodist
2004 48.1% 16.3% 12.6%
2005 36.7% 20.6% 14.8%
2006 33.1% 21.4% 14.5%
Source: NRC Healthcare Market Guide, 2006
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Increased funding is necessary to increase market share
2008 Budget
Market research $125,000
Content management software$100,000
Website development$170,000
Advertising & marketing
$3,461,425
If St. Luke’s increases its budget there are opportunities for St. Luke’s to break through in several channels including TV and radio.
2007 vs. 2008 Spending
Source: TNS Media Advertising & local station reps
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
TVRadio
Newspap
er
Outdo
or
Spons
orsh
ipTot
al
Methodist
Memorial Hermann
M. D. Anderson
St. Luke's
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
TVRadio
Newspap
er
Outdo
or
Spons
orsh
ipTot
al
Methodist
Memorial Hermann
M. D. Anderson
St. Luke's
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Development of a successful campaign requires market research
Through market research St. Luke’s Episcopal Health System can:
• Evaluate and track St. Luke’s Episcopal Health System and the perceptions of its competitors and customers.
• Analyze key audiences in order to strategize effective messages and efficient methods to reach the consumer.
– Demographics: Characteristics of people that include age, income, education, occupation, household size, home ownership and home value.
– Psychographics: People's lifestyles and behaviors, including their interests and values.
• Study behavior, trends and consumption habits of target market.
• Assess local and national healthcare and consumer trends.
The end result will be a new identification of the target audience, understanding of media habits, addition of new media channels (from the New York Times to cable networks), insights about consumers and their lifestyles and new messaging strategies to engage the audience.
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From research findings and insights, a brand campaign can be developed
An integrated branding campaign will impact the entire health system.
• TV, radio, print, and interactive advertising: Research findings will drive the strategy for all creative executions from print ads to brochures.
• System website: The current website began as an information resource but has morphed to satisfy growing service lines and internal St. Luke’s constituents. With market research, St. Luke’s can develop patient-centered websites with easy access to appointments, pre-registration and increased interactivity with the users.
• Intranet and internal publications: Utilize findings from internal audiences to develop and brand messages seamlessly with employees and physicians.
• Brand guide: A brand guide will be developed to communicate the brand strategy and provide guidance on usage of the brand components and regulate all marketing executions.
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A brand campaign is essential for St. Luke’s Episcopal Health System
Branding will increase St. Luke’s reputation.St. Luke’s and Methodist are tied for best overall quality and image in 2006-2007. Advertising directly impacts perception and awareness. If St. Luke’s cannot spend the dollars to communicate messages about the brand, Methodist may overtake the number one position in Houston.
A strong brand allows us to attach an idea to St. Luke’s Episcopal Health System. By attaching an idea with St. Luke’s we create meaning and engage the consumer while differentiating from the competition. By defining the idea that connects with the consumer, St. Luke’s will be able to speak more effectively and efficiently with our best prospects and impact brand recognition, because the message will be strategically crafted to have a natural affinity with the target.
Source: NRC Healthcare Market Guide, 2006
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A brand campaign is essential for St. Luke’s Episcopal Health System
Branding will increase St. Luke’s preference over its competitors.
In 2006, consumers preferred competitors for most service line categories. With increased advertising, St. Luke’s will be able to impact quality, reputation and preference, as these are perceived measures that can be influenced with advertising. If St. Luke’s cannot competitively spend dollars to advertise, there will be a greater gap between St. Luke’s and the competition.
Consumer preference in hospital categories:
Service line St. Luke’s Memorial Hermann Methodist
Bariatric 10.8% 29.7% 14.8%
Orthopaedic 11.8% 26.6% 12.2%
Neurology 16.6% 28.4% 16.7%
In-hospital stay 12.9% 29.5% 16.2%
Source: NRC Healthcare Market Guide, 2006
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St. Luke’s can identify key metrics to evaluate the success of the branding campaign
Market research is critical to create and evaluate the success of the branding campaign. Benchmarks that will be analyzed pre- campaign and reassessed post- campaign to evaluate the success of the branding initiatives are:
Reputation: Trust and favorable opinion of the Health System as a whole, as well as specialty-specific reputation in key service lines (CV and neurology, for example).
Awareness: Top-of-mind and overall awareness and recognition of St. Luke’s Episcopal Health System.
Brand Equity: Differentiation from its competitors and awareness of messages and themes unique to St. Luke’s.
Brand Preference: Loyalty and preference towards St. Luke’s versus its competitors overall as a Health System, as well as specialty specific preference for service lines.
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A variety of tools can be used to measure ROI
NRC Healthcare Market Guide: SLEH currently subscribes to this service, which
conducts an annual survey of Houston healthcare. The survey is done online between April and June. The 2007 results are available fourth quarter and will serve as a benchmark for a wide range of measures. Future guides will be used to evaluate progress.
Marshall Marketing: This firm conducts a survey of health care every November for KPRC-TV. It can provide awareness and reputation benchmarks. Future guides will be used to evaluate progress.
Pre- and post- testing: Market research being developed to plan the 2008 campaign can provide customized benchmarks, especially for detailed examination of reputation, brand equity, and preference. Follow-up surveys can be conducted to check progress.
Web analytics: Assessment of a variety of data including web traffic, web-based transactions, user-submitted information and related sources to help create an analysis of the visitor experience.
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With increased spending, results will follow
• In 2005, St. Luke’s committed $400,000 for TV advertising, following the advertising, research indicated that consumers preference of St. Luke’s as the best overall healthcare in Houston increased 32.7%.
• St. Luke’s currently dominates in the 65+ market but struggles with the 35-54 year-old audience. Competitors target them heavily with advertising and sponsorships. St. Luke’s must do the same for long-term growth of the health system.
• Increased trust, recognition and favorable opinion by patients, local and national audience, physicians, and award/recognition commissions (i.e., U.S.News & World Report) are all affected proportionally to amount of dollars spent on advertising and marketing.
• An increase in spending may result in an increase of patient admissions, physician referral requests, and requests for information.
• More dollars allocated towards the web center can yield additional visitors to sleh.com and increased interaction with the site.
Source: NRC Healthcare Market Guide, 2006
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2007 vs. 2008 Marketing & Corporate Communications budget
Marketing & Corporate Communications
2007 Budget 2008 Budget Variance
Personnel $706,254 $1,336,438 $630,184
FTEs 9.5 13 3.5Actual FTEs in 2007 was 6.5. New FTEs replenish loss, adjust to new organizational chart, support new brand & market
research initiatives & enhanced marketing & advertising campaigns.
Depreciation $12,950 $13,405 $455
Building Operations $52,661 $54,598 $1,937
Marketing/PR $0 $225,000 $225,000
Service Line Marketing $226,430 $100,000 -$126,430
Management/Consulting $48,000 $325,000 $277,000
Misc $17,808 $36,877 $19,069
Printing $10,000 $10,000 $0
Advertising (purchased) $1,221,970 $2,534,548 $1,312,578
News Media $211,000 $35,000 -$176,000
Other Outside Services $9,000 $70,000 $61,000
Publications $244,500 $250,000 $5,500
Total $2,760,573 $4,990,866 $2,230,293
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2008 Marketing Corporate Communications itemized rationale
2007
Budget
2008
Budget
Rationale
Marketing/PR $0 $225,000 No budget in 2007, TUTS was allocated in “Advertising purchased” cost center. 2008 all sponsorships (TUTS & others) moved here. Needed to increase brand awareness & equity to remain competitive.
Service Line $226,430 $100,000 2007 included consulting, radio, news media. 2008 reallocating for direct mail in support of messages.
Mgmt/Consulting $48,000 $325,000 2007 included freelancers & consulting firm paid from News Media center. 2008 will be market research $125K and Public Strategies Inc. $200K required to properly conduct & analyze market research to create effective brand campaign.
Misc. $17,808 $36,877 2007 budget low, YTD actual $18,817, annualized $32,257. Includes dietary, office & indigenous supplies, computer & software, postage/ freight, books/subcrpts, records storage, parking, security, slmt related expenses & hosp related travel.
Printing $10,000 $10,000 No changes.
Advertising Purchased
$1,221,970 $2,534,548 100% increase for brand awareness & equity, adding new media & frequency of TV, radio, and cable to more effectively reach target market.
News Media & VMS
$211,000 $35,000 2007 included TV, video & consulting. 2008 re-defining to include PR Newswire & VMS.
Other outside services
$9,000 $70,000 2007 low budget. 2008 re-defined to include freelancers. YTD $18,065, annualized $30,969.
Publications $244,500 $250,000 Small increase, must retain to support brand initiatives.
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2007 vs. 2008 Web Center budget
Web Center 2007 Budget 2008 Budget VariancePersonnel $674,489 $756,120 $81,631Depreciation $7,638 $7,638 $0Building Operations $67,692 $68,647 $955Other $341,675 $601,400 $259,725
Total $1,091,494 $1,433,805 $342,311
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Web Center itemized rationale
2007
Budget
2008
Budget
Rationale
Marketing & Public Relations
$220,000 $226,600 Increased online marketing, specifically on WebMed.com and Google Adwords.
Management & Consulting Services
$15,000 $170,000 Consulting fees for research and design of new web sites for SLEH and SLEHS entities (Woodlands, Sugar Land & Clear Lake).
Computer Supplies $1,500 $1,500 No changes
Software $5,000 $100,000 New content management software for development of new system web sites.
Fees & Licenses $93,000 $95,790 Increased to account for higher prices of various fees and software licenses.
Other Outside Services
$5,000 $5,150 Increased to account for higher prices for services such as temporary help.
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Organizational chart – head count
VP
Dir, Brand Strat & CCSusan Wilkinson
Director, PR & MediaWeb ManagerChris Ferris
Graphic DesignerMarcella Cabrera
Sr. PhotographerGus Salinas
Asst Marketing ManagerSr Marketing Manager
Office CoordinatorSophie Stenis
Manager Media RelationsMelinda Muse
Sr. Marketing SpecialistJessica Michan
Manager Internal comm
Creative WriterBrenna Rackham
Sr Coord Marketing CommSheryl Taylor
Web Mktg ManagerTech Integration Analyst
Jim KnepperTech Integration Analyst
Gary ScullinTech Integration Analyst
Hugo GaliciaIntranet Coordinator
Indicates vacant positions
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Summary
Given high levels of competitor advertising and marketing spending, St. Luke’s Episcopal
Health System will need to increase advertising and marketing spending to be compete effectively in 2008. The 2008 initiatives will impact the entire Health System.
St. Luke’s Episcopal Health System: Convey the spirit of David Fine’s vision for the Health System including the ten pillars.
St. Luke’s Episcopal Hospital: Support and complement Dr. Pate’s excellence, efficiency and engagement goals.
St. Luke’s Suburban Expansion: Promote St. Luke’s reputation and quality care to consumers in their own backyard.