Touch topics . . . A brief on Marketing The Indian Healthcare scenario Healthcare divide in India Government – An healthcare marketer Healthcare – An entrepreneurial Venture Will not touch up on strategies for Marketing
What is Marketing ?They are all functions that link the business with customer needs andwants in order to get the right product to the right place at the righttimeWhat is healthcare marketing ?Marketing of health-related products and services.Healthcare Marketing Wins Patients, Enhances reputation and GrowsRevenues .
What is modern healthcare . . ?It is a systematic delivery of preventive & curative care byprofessional & paraprofessionalsA modern healthcare system is the organization of people,institution and resources to deliver healthcare services to meetthe health needs of our target population
The Healthcare scenario• Healthcare is one of India’s largest sectors, in terms of revenue and employment, and the sector is expanding rapidly• During the 1990s, Indian healthcare grew at a compounded annual rate of 16%• Today the total value of the sector is more than $34 billion.• This translates to $34 per capita, or roughly 6% of GDP.By 2012, India’s healthcare sector is projected to grow to nearly$40 billion.
Growth Drivers . . .India’s booming population, currently 1.1 billion and increasing at an annual rate of 2%Fastest growing economy in the worldShift from ruralization to urbanizationIncreasing number of hospitals in Tier-II and Tier-III cities is the major driver for private sector growthInsurance penetration into both Private & Government sectorLimited resources of the govt. has led to private players entering the marketRise in income, today at least 50 million Indians can afford to buy Western medicines, a market only 20% smaller than that of UK.
Disease Assessment and Potential• Chronic degenerative diseases & Lifestyle diseases• While ailments such as poliomyelitis, leprosy, will soon be eliminated• Communicable diseases such as dengue fever, viral hepatitis, tuberculosis, malaria, and pneumonia, have developed a stubborn resistance to drugs.• Sub-standard housing, inadequate water, sewage and waste management systems & a crumbling public health infrastructure
Contd . . .Indians live more affluent lives and adopt unhealthy western diets, highin fat and sugar the country is experiencing a healthcare crisis ofbeing the The Diabetes Capital of the World Heart Disease capital of the World Cancer Capital of the WorldHealthcare a bottomless opportunity !
The Healthcare divide in Indiato healthcare, there are two India’s !!!1. A country that provides high-quality medical care to middle-class Indians and medical tourists2. 65% of the population live in rural sector who have limited or no access to quality healthcare care.Today only 25% of the Indian population has access to allopathicmedicine, which is practiced mainly in urban areas, where 2/3 of India’shospitals are located. Many rural poor rely on alternative forms oftreatment
Healthcare Infrastructure Requirement Enormous private capital is required to enhance India’s healthcare infrastructure . India has approximately 860 beds / million population. One-fifth of the world average, which is 3,960, according to WHO An estimated 450,000 additional hospital beds required at aninvestment estimated at $30 billion Government to fund only 15-20% of the total, hence providing opportunity for private players to fill the gap
Healthcare - An entrepreneurial venture New entrepreneurs setting up hospitals New funding opportunities - Private equity participation - Venture Capitalists Expansion of footprints by existing players like; Apollo Hospitals, Fortis, Narayana, HCG . New formatted chains like Apollo Clinics, Day Care, Diagnostics, Rehab & Dental By 2020, the Indian healthcare industry is estimated to be worth US$ 250 billion.
Top areas for Healthcare Private Equity Investment Super Specialty / Multi specialty Hospital set up Single specialty based Hospitals Ambulatory surgery center chains Diagnostics, Dental, Rehab chains Hospital information technology & health systems
Is Marketing Necessary in Healthcare Delivery ?
Government as the Healthcare MarketerSome of the Government health campaigns that made strong impact on thesociety•A very popular slogan “ Hum do Humare Do”
Why only a boy? Are these not girls For a healthy family, wait three years before your second child
Need marketing for healthcare.... 1. All Hospital ventures are capital intensive - Technology & Infrastructure - Human Infrastructure 2. Breakeven are longer than other sectors 3. Technology out paces Breakeven - Cost of technology - Technology getting obsolete 4. Top line, bottom line, EBIDTA, Net profits , P&L, Balance sheet , Market Capitalisation , Stock prices all have become relevant
Do we need marketing for healthcare ? Yes. . .- Create a critical mass for consumption- Generate a strong need for hospital related services- Match aggressive competition- Penetrate insurance products & services- Market destinations for healthcare in global markets- Make hospital venture a profitable Investment.-
What does healthcare marketing do. . . Hospital mktng Its about connects creating a patients positive physicians & experience providersThe doctor is the biggest Compassionate factor for Healthcare healthcare is retention of Market what hospital customer mktg does Healthcare Hospital mktg mktng wins pts also has a TG, to grow its Needs & revenue & mission reputation
Healthcare Marketing is Unique• Some resistance to change as it is relatively new• No real way to measure return on investment• Legal barriers• Propensity to spend is extremely less..• Most decisions are not made by the end user• Price most often is not a factor• Product information difficult to convey• Provider differences are unclear
Dynamics in healthcare. . .• Unorganized sector to Organized Sector• Curative approach to Preventive approach• Out of pocket payments to Insurance or employer paid• Doctors concentrated in urban areas to increased competition in urban areas• Break even from 7 yrs to 3yrs .• Lack of system & accountability to increased emphasis on systems & accountability• No quality check on service to Consumers demand quality
Product Price 7 th P of MarketingPromotion Physicians Place PeopleProcess
ConclusionThe Indian healthcare sector can be viewed as a glass half empty or a For companies that view the Indianglass half full..healthcare sector as a glass half full, the potential isenormous.Hence, Healthcare marketing is a necessity !!!