Marketing plan will be including all major sections ruling out for expanding company into market or increasing profits and customers as well. Marketing is the main essence of firm that is enabling them to introduce new products or expanding their existing product or service new market. So in this current report Royal Children Hospital marketing plan will be produce including market analysis, macro and micro environment analysis and also the key objective of marketing. Further in this report that is based on marketing plan of Royal Children Hospital which is famous hospital in Melbourne giving quality and best service to children so that trust of parents could be gained. The hospital is providing complete range of services to children with including clinical service and promotion of health care so that programs for preventions could also be included within. Currently it is dealing with speciality of children hospital having its centre in both Melbourne and Victoria with about 334 beds in total.
These are factors which is affecting business from within the industry or company itself and their ability to serve customers. Micro environment factors are generally within the company or external part of organisation like its policies, employees, management and products which they are selling. Micro environmental factors of Royal Children Hospital will be affecting their growth and profitability as hospital is also working as trauma centre in Victoria, cardiac and liver transplantation (Baker, Bundorf and Kessler, 2015). The major factor could be number of bed within hospital as it will be including to change the policies and procedures of firm on larger terms. So for analysing micro environment factors and its effect on Royal Children Hospital Porter’s 5 force and BCG matrix will be done.
Porter’s 5 force
Porter’s five force is important tool for analysing and understanding which the factors which could be driving are to shape the competitive advantage of company within markets and industry. This could be helpful and used to make and modify strategies and policies for organisation in order to improve profits of firm in competitive markets.
Power of supplier-
There are larger number of firms that are dealing in this health and social care sector like that who are dealing with products, tools, equipment and service related to health care. The companies or suppliers like one who are dealing in drugs, biotech, health care equipment and machines (Scheffler and Glied, 2016). So Royal Children Hospital will be having low bargaining power over their suppliers as there are number of sellers in market who are supplying these products.
Power of buyer-
There are many companies which are providing variety of services in regard to customers and they are ignoring the negative and positive effect of them on economy. If the price of service and products are increased in this sector so this will not be having much greater impact on buyers as they are having variety of options in regard to hospitals. So the purchasing power of buyer is relatively higher for customers in markets.
There is no substitute for health and social care sector if a person is seeking for any kind of service then they will not be having any option of going to any other sector. But on other hand Royal Children hospital will be having substitute like that of nursing homes or care centres as well (Dafny, Ho and Lee, 2016). The technological advancements and new innovations in this particular field could also be treated to as substitutes which is helping customers who want to seek service but not in too much wider terms.
There are many hospitals into sector which are having their existence and aimed at giving service to customers. Royal Children hospital will be facing tough competitions within the sector but as it is working as speciality in child care centre so they could not be having fear of facing competition.
Threat of new entrants-
Hospitals in economy will be facing many issues and barriers which will be stopping their progress or entry into market. The main reason would be government of several nations are not allowing or they are heavily regulating rules and policies on hospitals. If there is hospital which is already been established in particular area then government will not be allowing any other to operate or set up their new venture in that area.
Figure 1: Boston Consulting Group Matrix
[Source: Trish and Herring, 2015]
The planning and portfolio of marketing which is helping and enabling companies to grow and develop into markets. This matrix was developed in 1970 by Bruce Henderson who was of Boston Consulting Group under which the name was laid as BCG matrix. It is used when firm is planning to invest or expand their business through the long term goal and planning so BCG matrix will be helping to plan out in proper manner. It could also be analysed that BCG matrix is based on the life cycle of product so helping organisation to take decision about what the product and at what stage they will be at high or low point. In the above figure 1 which is showing BCG matrix having four different stage like that of cash cow, dogs, stars and question marks.
At this stage of product which is having higher market share but lower growth into market this could be regarded to as bigger size of business but having lower signs of penetration into markets. As these companies are having higher share into market so this could be analysed that firm is having enough amount of cash which is sufficient for funding for the other stages of products.
This is that stage of firm at which they are having lower budget with low market share and growth is also small only (Dor, Encinosa and Carey, 2015). This could also be regarded to as that stage of product which is about to close down their company or particular product into markets as it is not causing them any kind of profits.
They are the highest performer of company which is leading them to have more growth and profits for firm. Stars are having high share in market with high rate of growth as well rest they are also having more amount of attention. The Royal Children Hospital as is designated for having trauma centre that too for paediatrics that too in Victoria apart from this they are also having their cardiac and liver transplantation centre which could be regarded to as stars of company.
They are the new ventures or products which company is planning to launch as having higher growth opportunities and rate with lower market share as they are new. Question marks are having greater chance to grow in market or having loss as well.
This is very important segment which is impacting company from external sources and leading to changes within company (Lewis and Pflum, 2017). The factors like that of inflation, climate changes, laws, political parties and social beliefs all are impacting business and its policies as it is important for Royal Children Hospital is having knowledge about them.
This will be analysing the macro or external environment factors of health care industry that is affecting growth, profitability, customers and expansion within markets.
These factors are related to factors which are impacting health care sector which is regulated by government of specified nation and their rules which they implement. There would be many factors like that of tax regulations, consumer protection act and insurance mandates that are impacting Royal Children hospital. With this it could be shown that governmental policies will be impacting the spending on health or people which is done if the tax policies are been changed.
There are economic factors also which would be leading to impacting health and social care like that of interest rates, inflation and unemployment (Dauda, 2018). If any kind of change in these above said factors then they will surely be affecting Royal Children Hospital. Like if the interest rates are been increased then this will be causing lower down in money spending power of people so thus impacting their spending on health as well. There is also limited access to social and health care which will be not allowing people to seek medical care.
The healthcare will also be relying on all kind of changes in value of public and demographics as well as there are many communities which are having their own beliefs and norms related to culture. It could be analysed that if doctors or hospitals are not knowing what cultural norms are there for specified community then this will be causing problems and issues. As in this stage people are becoming more and more health conscious across all countries of world so this could also be impacting hospitals and their profitability as well.
There are many positive changes which are taking place within health and social care industry like that of providing better health and medical facilities so that patients are allowed to received better services (Tovian, 2016). There are also many applications that are been launched within health care sector like that of diabetes which is helping patients to develop their knowledge regarding sugar or blood pressure level.
These include those factors that are including procedures and policies which are governing industry and Royal Children Hospital as well. As there are many laws related to health and safety of people so hospital must be having provision that are regulating organisation within healthcare sector. These laws and regulations will be causing barriers and problems for firm to have their social existence within market and industry.
They are the conservation acts and laws related to environment or climatic changes which are been governing country which could also be causing hindrance on business and their growth (King, 2016). If the organisation like that of Royal Children Hospital is not showing their concern about environment and they are causing any harm to environment then this could be leading to loss to company.
Demand is the ability and willingness of customers to be able to buy products and service of company so it becomes important for firm to forecast the demand. This demand forecasting is that tool which is used by management of company in order to estimate the level of demand in market of their products (Cerullo and Pawlik, 2017). Demand forecasting is the process of estimating demand for setting up of future trends of company in order to uncontrollable and competitive forces as well. Royal Children Hospital should be forecasting their demand so that they could be improving operating margins which will be also aimed at removing labour cost on average length of stay (ALOS). As they need to address the increasing cost of labour so it requires for them to correctly relate the forecasting of demand.
This is major analysis among all which is governing or including factors which is telling how strong company is from others and what are the weakness of firm.
Royal Children hospital is known to as integrated healthcare company and this helps to end- to- end service to patients. The company is having very well equipped and maintained specialised staff in child care providing all type of children related services. As Royal Children hospital is meant to provide complete range of clinical service, health and preventive programs for children and also tertiary care to young people.
There is comparatively lesser amount of profit margin for hospital as they are bind by government in not providing higher price of products and services within this sector. Other than this higher staff turnover ratio in health care sector will be causing reducing down of services within sector.
There is huge growth opportunity within the health care sector making it the best of world including with good amount of investments (Shah, Rehman and Zafar, 2015). Apart from this there is also increase in medical tourism within country which is forming opportunity for health and social care to grow and develop in market.
The cost of medical expense is increasing with decrease in quality of service which is accounting for more people going to other countries for treatment purpose. Then there is constantly increasing technological advancements within the health care sector which is also causing failure of equipment and leading to death of many people. The attrition rate within the health care sector is estimated to be increase with more and more demand for medical professionals within sector which is comparatively low.
Market research requirements
The data which is been collected from various sources like that of books, journals, articles and website and all of them form part of secondary source. It will be including many research from all these sources so that requirements like that of SWOT or PESTLE analysis could be completed on timely bases (Egeland, Rapp and David, 2018). Other than this market research will also be including research from already done researches which will be taken from primary sources so they could be included within this work.
Consumer is the person who is purchasing products and service from retailers or wholesalers for their own personal use. So Royal Children Hospital as is having consumers who are infants, child and adolescence who would be coming with their parents and guardians in order to get their treatments done. So they could belong to any family type or income level who are suffering from any kind of diseases and coming from any part of world. You can also ask for the best assignment help services at highly affordable prices.
As the consumers will be those who are suffering from any kind of health problems or issues so the consumption patterns will be different for them all. There will be different types of factors that are impacting buying behaviour of patients as they are regarded to as actual consumer for Hospitals (Shu, Zhang and Zhong, 2016). The factors including like that of marketing campaigns, economic condition of patient, personal preference, influence of group and purchasing power of customers. So there will also be including decision making process for selecting specified product or service which is important for consumers.
From the above part which is including issues and assumption from the audit purpose it could be concluded that Royal Children Hospital which is having trauma centre. There will be many factors like that of external and internal which is impacting business and growth of organisation as well.
Key marketing Objective
The healthcare sector will also be focusing on marketing of their service and products which they are offering to consumers. They should be having aim of providing best quality of service to customers and satisfying the need of patient and their family as well. The hospitality marketing department will be facing instability and problems into various forms of their job the major would be that of setting objective. There is competition within market as number of hospitals is increasing which are providing better quality of service with having latest technologies as well. So the marketing objective will also be depending upon level of competition within market which is been regulated. The objective of Royal Children Hospital will be like that of increasing market share by 2% and intellectual capital of physician team.
Core marketing strategy
As they have been stated objective of Royal Children hospital to as increasing market share by 2% and intellectual capital of physician team so for this they would be making target market and then segmenting it into specified segmentation.
This will be including segmenting product or service into areas or other bases as well the common characteristic will be based on need and wants of consumer. So this approach will be allowing company to achieve all goal and objective of firm which should be cost affectivity. There is different way in which segments or customer could be divided like that of:
- Demographic- they are the personal attributes like that of age, gender, education level or occupation.
- Geographic- this is based on region, city, country or state which are having their own beliefs and culture.
- Psychographic- this could be included to as values, lifestyle or personality of individual upon which targeted market is divided.
- Behavioural- this is like and dislike of customer based on particular product or service.
Then after when company has decided about what segment is based on they will be targeting their customers. This targeting of customers will be done based on their segmentation like including profitability from the sources and which segment of customer to be chosen.
This marketing mix will be including all important factors which is impacting marketing strategy of company like that of promotion, place, price and products of company.
As Royal Children hospital is not offering any kind of product of its own other than medicines which they are giving but the services which is been giving to their customers or patients is very much important. The service which they are giving should be very good and that of best quality so that it could be helping them to grow into market area. The strategy will be related to making their service of best quality with help of management and staff of Royal Children Hospital.
The price which hospital is having should be lower than the others in same industry as if other hospitals are having higher price than customers will be going there only. The best pricing strategy related to lower down cost should be applied in proper form which is regulating price.
As at present hospital is there in Melbourne and Victoria so management should be planning to start their hospital in other places as well. Thus the selection of place must be done in proper manner which is allowing them to have higher number of customers.
The promotion of their hospital should be there which is done with use and identification of correct promotional tools. They should be including through use of social media and other sources as well.
1-year TACTICAL PLAN
Budget and target
The budget of company which will be helping them to regulate their increase in market share will be till £1 million which is including all type of expense and cost into it. The target is the increase market share up to 2% into coming 9 months so expenses and cost should be included within this budget as well. The targeted consumers will be from Melbourne and Victoria only so that it becomes easy for firm to include them into for serving them.
Monitoring and control
After all the important factors which are included within this marketing plan of Royal Children hospital which is aiming at increasing its share in market till 9 months to about 2%. Now it becomes important for hospital to monitor and control their progress within so that they could be knowing what the impact of this planning is and how it is going well. The monitoring and controlling part should be done by management of hospital who are having clear knowledge about whether all work is been according to planning or not.
Books and Journals:
Baker, L.C., Bundorf, M.K. and Kessler, D.P., 2015. Does health plan generosity enhance hospital market power?. Journal of health economics, 44, pp.54-62.
Cerullo, M., and Pawlik, T.M., 2017. Association of hospital market concentration with costs of complex hepatopancreaticobiliary surgery. JAMA surgery, 152(9), pp.e172158-e172158.
Dafny, L., Ho, K. and Lee, R.S., 2016. The price effects of cross-market hospital mergers (No. w22106). National Bureau of Economic Research.
Dauda, S., 2018. Hospital and Health Insurance Markets Concentration and Inpatient Hospital Transaction Prices in the US Health Care Market. Health services research, 53(2), pp.1203-1226.
Dor, A., Encinosa, W.E. and Carey, K., 2015. Medicare’s hospital compare quality reports appear to have slowed price increases for two major procedures. Health Affairs, 34(1), pp.71-77.
Egeland, R.D., Rapp, Z. and David, F.S., 2018. Market Adoption of Innovation Into the Operating Room: The “Hospital Chief Financial Officer as the Customer”. In Medical Innovation (pp. 167-177).
King, J., 2016. Yes, Cross-Market Hospital Mergers Can Really Drive up Costs. Jotwell: J. Things We Like, p.424.
Lewis, M.S. and Pflum, K.E., 2017. Hospital systems and bargaining power: evidence from outofmarket acquisitions. The RAND Journal of Economics, 48(3), pp.579-610.
Scheffler, R.M., and Glied, S.A., 2016. Differing impacts of market concentration on Affordable Care Act Marketplace premiums. Health Affairs, 35(5), pp.880-888.
Shah, A.A., Rehman, A., and Zafar, H., 2015. Impact of a predefined hospital mass casualty response plan in a limited resource setting with no pre-hospital care system. Injury, 46(1), pp.156-161.
Shu, Z., Zhang, J. and Zhong, X., 2016. Simulation-based systems and methods to help healthcare consultants and hospital administrators determine an optimal human resource plan for a hospital. U.S. Patent Application 15/049,267.
Tovian, S.M., 2016. Interprofessionalism and the Practice of Health Psychology in Hospital and Community: Walking the Bridge Between Here and There. Journal of clinical psychology in medical settings, 23(4), pp.345-357.
Trish, E.E. and Herring, B.J., 2015. How do health insurer market concentration and bargaining power with hospitals affect health insurance premiums?. Journal of health economics, 42, pp.104-114.