Apollo Marketing Services

8/8/2019 Apollo Marketing Services

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Consultation Diagnostics 24 Hrs Pharmacy Value Added Services Preventive Healthcare

:resented by Group 9( )Ambreen Fatma 91066( )Anmol Sukhwal 91072

( )Deepak Negi 91077( )Harsh Lakhotia 91082

( )Nitika Sinha 91097



Apollo Hospitals

• Apollo Hospital Enterprise Limited was started byDr. Prathap C Reddy in the 80’s

• Apollo group has set up hospitals in Chennai,Hyderabad, Madurai, New Delhi, Ahmedabad,

Kolkata, Pune, Bangalore etc

• Need for preventive healthcare was emphasizedin order to reduce the cost of providinghealthcare services



Apollo Health & LifestyleLimited

• Apollo Health & Lifestyle Limited (AHLL) wasincorporated in the year 2000

• AHLL’s vision is to provide quality primaryhealthcare as an inexpensive proposition to

people

• AHLL wanted to create a nationwide chain of 250franchise based clinic by the end of 5 years butmanaged to create only 50 clinics by the year

2006

• Focused on 3 propositions:

ambience, convenience & value for money

pricing.



COMPETITIVE ANALYSISPrivate hospitals:

• Max healthcare :

Primary to

secondary

• Fortis: Acquire

Escorts

• Wockhardt

hospitals: Started

as a pharmacy co.

• Strategy of super

specialty hosp

Primary care centers:

• VLCC: beauty &

healthcare service

provider

• MV diabetes clinic:In southern India,

for diabetes.

• Throcare: diagnostic

service related to

thyroid.

• Dr. Batra’s clinic:

Offers super

specialty



Issu e s

W h e th e r o r n o t th e firm sh o u ld co n tin u e w ith th e fra n ch ise m o d e l o r

se t u p a n o w n e d m o d e l

W h e th e r o r n o t to la u n ch th e clin ics

u n d e r a n e w b ra n d o r to e xp lo it th e

b ra n d im a g e o f A p o llo h o sp ita ls fo r

th e A p o llo clin ics



Decision of Franchising



Advantages

• One of the best ways to enter a market

• Provides scope for rapid expansion

• Most commonly used in service distribution and

retailing

• No upfront investment required from the

company

• More control on brand value and process



Problems with the Franchisee

Unable to obtain license for pharmacy

Delaying monthly submission of payments

Collecting money without registering patients

Doctors complained of poor patients flow

No royalty payment



Problems faced by Franchisee

• Lack of support provided by Apollo

– Quality Doctors

– Customer Perception

• Not fulfilling the promises

• Insufficient revenue generations



Challenges

• To increase the number of clinics• Competition From Other Major Players

• Financial Challenge

– Inadequate revenue being generated

– Small turnover of 5 crores with only marginalprofits

• Difficult to influence customer perception

• Franchisee Issues

– Franchisors are skeptical about renewing thefranchisee contracts

– Delay in implementation by franchisees isleading to blockage of territory

– Conversion rates of interested applicants is low



rand Perception of Apollo Hospital and Apollo Clinic Brand Perception of Apollo Hospital and Apollo Clinic



Service Pricing

The initial communication strategyfor The Apollo Clinic:

Value-for-money pricing

• Study on the best existing

service providers in thatregion

• Tariff structure is thenbenchmarked against theseservice providers

• Offers its services at a lowpremium as possible

• Follows value for money pricingstrategy

• Low price was their main target.



Causes behind ServiceSwitching

• Pricing

– Perceives as expensive

• Competition – Found better service providers

• Involuntary switching

– Customer moved



14

Tangibility Spectrum

Tan g ib le

D o m in a n t

In ta n g ib le

D o m in a n t

Salt

oft Drinks

DetergentsAutomobiles

Cosmetics

ealthcareServices

Airlines

Consulting

Teaching

-ast foodOutlets

-ast foodOutlets

Investmen

Management



How Product Attributes AffectEase of Evaluation

Source: Adapted from Zeithaml

Most Goods

High in searchattributes

High in experienceattributes

High in credence attributes

Difficult to evaluate

Easyto evaluate

Most Services

Clothing

Chair

Motorvehicle

Foods

Restaur

antmeals

Lawn

fertilizer

Haircut

Entertainment

Compu

terrepair

Lega

lser vices

Comple

xsurgery

E d u c a t i o n

Medicaldiagnosis



: :ustomer gapqQuality doctors not available

: :Provider gap 1

aving the proper service quality design and standqAbsence of customer driven standardsqPoor service quality standards

Senior doctors not available in Apollo clinicsFranchisees did not belong to a healthcare person

: :Provider gap 2 elivering to service design and standard

q Difficulty controlling quality with consistencyAll franchisees provided different services Issue of quality doctors



: :ap 4 Provider gap 3 ot matching performance to promises

qLack of integrated service marketing

communication .Absence of strong marketing program ’It was expected that Apollo s name itself will

.pull in patients

qAbsence of customer expectation managementQuality doctors not available

qOverpromisingMade lofty promises of investing millions in thebrand

,Apollo has not kept many promises which it made,to them while signing them on

q No uniformity as each franchisee left to fend for himself became increasingly desperate for

.revenue



Zone Of Tolerance

• For Apollo adequate service level is high• Zone of Tolerance is narrow

ZOT

ADEQUATE DESIRED

Desired service

Adequate service

Zone of tolerance



Consumer’s Judgment of ServiceQuality

•RELIABILITY

RESPONSIVE NESS

ASSURA NCE

EMPATHYTANGIBLES

Health

Careservice

Appointment

kept onschedule,diagnoses

proveaccurate

Easily

accessible, nowaiting time,willingness tolisten

Knowledg

eable,skilleddoctorsand nurses,reputed

doctors

Acknowled

ge patientas a person,listen well,has

patience

Waiting

room,equipments, operationtheatre



ServiceScape For Apollo

A p o llo is a n in te rp e rso n a l se rv ice s

type

S e rv ice sca p e co m p le x ity o f A p o llo is e la b o ra te

ogo Of Apollo Clinic



High Quality services atreasonable price

A ttra ctiv e b u ild in g

N ice a m b ie n ce



State Of The Art MedicalEquipments & patient

rooms



Proficient Doctors

Treatment with care



Hard and Soft Standards

Hard Standards• Waiting time

• Service delivery time

• Responsiveness• No. of patients served per day

Soft Standards

• Courteous• Ambience

• Resolution of problems

• Staff Proficiency

•



27

Satisfaction

Relationship

Reliability

EmpathyAssurance

TangiblesResponsiveness Price

nderstand myproblem

roper Diagnosis

reatment on time aster recovery

ost service relationship

Requirements:

Abstract

oncrete

ig

deeper

igdeeper

igdeeper

Diagnostici:y

Low

High

eneralconcepts

Dimensions

Behaviors

ndactions

Attributes

What Customers Expect:Getting to Actionable Steps

Value olution

Provider



Customer’s Role

• Customer’s role in healthcare sectorare:

– Contributor to service quality and

satisfaction• Active participation of patients

required

• Customer’s Direct contribution tothe:

– Quality of outcome

– Satisfaction of customer



Service ProductionContinuum

1 2 3 4 5 6

Customer production Joint production Firm production

Healthcare services

evel of Customer Participation

High level of customer participation



’Define Customer s Jobs

Manage the Customer Mix

,cruit Educate and Reward Customers ffective Customer Particip



Define Customer’s Job

• Provide accurate information about symptoms

and health Background

• Answer detailed questions

• Help to decide on a course of treatment

• Carry out the prescribed regimen leading to

recovery



Educate Customer

• Provide patient handbooks giving details

about the

– Preparations required for arrival – Procedures

– Visiting hours

– Billing procedures and medical insurance

–



Manage Customer Mix

• Customers are expected to share time,

space, or service tools with each other

–



Recommendations

• Give franchisee to people related to

healthcare industry

• Help the franchisee in the initial stage

• Come up with online consultation

• Should advertise to educate the customer

• Focus more on quality in comparison to

ambience

• Enhance its commitments



Recommendations

• Proper market analysis before opening clinic

• Realistic targets

• Regular health check up campaigns(corporate tie ups)

•

Apollo Marketing Services

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