Market Analysis for Hospital Beds - Essay Example

s: Details: Due Market analysis for hospital beds Situation analysis Lending an ear to patient in various hospitals as well as listening to grievances of healthcare providers lead to the idea of making improvements on bed spaces within the hospitals. Among the complains include lack of enough spaces, the outdated nature of setup and facilities, uncomfortable bedding that worsen some medical conditions such as back ache due to over straining to reach out for information such as separately positioned television sets; or leads to a development of medical conditions, which could have been otherwise avoided with an improvement of the facilities. The current beds have no such facilities as available in the current markets hence need for advancing the facilities. Following a conference held with employees together with some patients, an agreement was made that patients required more comfortable bed types with access to media sources through the current technology so that those who are admitted for a long period of time may not be cut out from crucial information. Multimedia enhancement on the current hospital beds was the point of concern together with providing more comfort that ensures pressure relief to the users. This would see unto it that beds patients remain updated at their discretion and feel more at ease when undergoing medication. Historical background Beds have all along been acompulsory physical facility in hospitals. Evolutionary changes have also faced this facility over time with an aim of improvement making so as to ensure comfort to patients. This has been done through studies on the furniture as well as serving in the treatment of patientsover this duration and in the duration to come. Improvements have always ben made on the material used, dimensions taken in its construction, funct6ionality as well as its design and beauty. Various documented historiesof hospital beds give varied information about beds in hospital evolution but there is no much information linking the current beds in hospitals having evolved from the initial ones. Evolutions of beds in hospitals were facilitated by various aspects such as the technological, social anthropological and economic aspects. Medical factors have also been of value to the evolution of beds in hospitals. Advancement in knowledge and dynamics in trends witnessed all over the world plays a pivotal role in ensuring that better bed facilities are devised for hospitals. History of hospital beds may be linked with the human reasoning as witnessed in the advancement of technology as well as cultural diversity of humans. Most beds currently in hospitals have been customized as per age groups. There are those designed for the old, those designed for children, some are designed in accordance with the purpose it is meant to serve. One such purpose may include labor. Others are made for intensive therapy while others serve in emergency cases apart from census and non census facilities. The evolution has taken course in line with instinctive features such as change in shape, design size so as to come up with ergonomic equipment. Consumer analysis Industrial products will be needed for the purpose of medical care following the ageing population currently witnessed. More hospital beds will be on demand with time. Besides, those who deal in their manufacture will device new products which embraces current technology. This comes as a result of advent of new technologies in varied fields such as information and communication technology. Most beds will have an integration of vital scale monitors as well as internet access that enables patients to interact with people in the rest of the world through social sites and access information with much ease. The demand for such facilities will increase in the near future. Consequently, those who take part in manufacturing hospital beds will have to experience a growth in revenue as a result of new innovations and consistent demand for their products. Competitive analysis There is a medium level of concentration of market shares in the bed manufacturing section. Companies appearing as the top four in this sector have less than 60% share of the total revenue of the industry. However, Stykercooperation has a bigger share of about 44% of this figure. It is the dominant player in the industry currently. As the number of companies decrease, the concentration of market shares may increase. Most enterprises may decline on an annual rate of 13% within a range of five years. At this point, revenues may record an increase as a result of fewer companies being responsible for a large amount of revenue. Other market players include Hill-Rom holdings Inc. ., paramount bed co. Invacare Corporation, kinetic concepts among others. Demandfor efficiency together with innovation would dictate which company leads the markets. This would come in line with the most appropriate application of new technology in making purchases. Shares in the market would stimulate a competition among the companies manufacturing beds for hospital so that the most efficient producer dominates the market shares (Hiltz 89). Marketing objectives Short and long term sales objectives The goals will be increasing market shares by 25 percent within two years from the point of implementation. This would be a possibility due to the innovation of a new product. The advantage that follows is lack of a similar product to the newly innovated product currently by our company. Profit generation The target is increasing sales by 25 percent over the next two years. This will be possible through the introduction of our new product promotion will be basic for the company so as to make the product known to the targeted market which is the medical industry. This will ensure that shares of the market are kept and improved. There will be need to deal with some competitors who will emerge after the innovation of the facility Surveying target market and firm perceptions The company will have to serve the markets by availing more information about the newly invented product in catalogs used in supply other than conducting personal selling to hospitals. Organizing and attending medical sales conference will be part serving the targeted markets such as busy hospitals and clinics. The application of this strategy of marketing with consumers patronizing at a frequent rate has enabled the company a remarkable visibility which should be taken advantage of in an attempt to make sales of the newly innovated product. Other products are also in the same shelf with the new product giving them an advantage in sales. Strategy There is need to increase hospital bed capacity as a result of expected increase in population hence increased patients population in less than a decade to come. The demand for beds in hospitals has been on the rise in the recent past. Acute care is being faced out as no more care is needed for patients. Most hospital facilities are relaxing the regulatory rules on accessing the facilities. Most diseases get detected at earlier stages with improved diagnostics as a result, less invasive therapies are applied which expands the patients base (Boone and Kutz 71). The firm has a target of catering for a huge chunk of the market for patients with the age between twenty and forty. The management team applied all elements of marketing mix so as to ensure full satisfaction of its market segment. These involve pricing of the product, distribution channels to be followed, promotion methods as well as financial strategy. Product strategy The new product that the company is selling is a bed facility with screen plugged on it that enables patients to surf through the internet, connect to media channels as well as interact with other people through social sites other than playing games. This was intended to make patients feel more comfortable while undergoing medication and eliminate the need for care. On the other hand, the newly devised design took into consideration the patient condition and the use of the facility in terms of patient condition (Yatez 42). To use the newly devised bed, patients may need to be instructed on how to use the basic applications so as to familiarize themselves with the innovations. Other signs are also availed to the user to guide them as may be appropriate. The company logo and trade mark would be helpful in establishing the difference in product from those of other companies. There is an essay attached by the bed side to help in remembering and identifying the products offered to the customers by the company. Market segmentation Demographic segmentation based on age is the type applicable to the product. Resulting from the technological breakthrough, more sales are intended to reach the already existing customers together with the newly won customers. Product life cycle Informative advertisements targeting hospitals and clinics that receive patients between the age of twenty to forty is applied by the company.as this develops, there will be need to persuade customers to buy the product so as to maintain the market shares if not make improvements on the advanced market shares as a result of the new product (Hollingsworth et al 67). The research process The research was conducted in response to concerns raised by patients and healthcare providers. After having the complains, a meeting was held between the company, healthcare providers as well as some patients so as to brainstorm on the remedies for the situation. A team was established to work on the possibilities of having an advanced hospital bed facility that would handle the problems amicably. Within a year, the product was developed and a first test carried prior to its approval for use. Test wer3e carried out through dishing out o cards for consumers to fill in out in response to the newly invented product. Curiosity on when the product would be availed in the markets was noted. The use of the United Statescensusbureau helped in determining the population of the targeted age with regards to hospital admission. With the promising information, it was time to let the product into the markets through stores where the company’s products are marketed (Yates 44). Pricing strategy Skimming pricing strategy is what the company adopts so as to make recovery on the cost of research sands development of the product. This strategy also gives the product an image of being a high quality product. It would also allow the lowering of the price at the mature stage of its life cycle. Besides, this would serve in controlling the demand for the product.so that adequate amount of the product is available in the market. Distribution strategy The distribution chain would include the producer. The retailer and the consumer so that little alteration is made on the price other than availing the product to the consumersconveniently. The company will be responsible for storage of the product through the warehoused that is under its control in storing the goods after production. Convenient retailers are used by the company so that more records may exhibit a rise in purchases and increased number of customers. Promotional strategy The marketing staff will make efforts towards creating brand awareness and applying various methods of advertisement at different stages of the product in its lifecycle. The first intention is making the consumers aware of the availability of the product in the markets and showing them how to make use of it. Televised methods and magazines would be more appropriate for this at the introductory stage (Newell and Don 46). At maturity and growth stages, in store displays may be used to complement the televised and magazine advertisements. More informative and persuasive advertisements must be made. At the decline stage, lowering of prices would deem necessary for the product. Media selection and schedule includes magazines and televised methods mass mailing of coupons would also be applicable. Pulling and pushing strategies may also be employed in media advertising through the use of samples. Financial strategy The company has been successful with the sales of the newly invented bed facility. All the cost of the product is covered and a large profit margin realized. Profits of up toforty percent have been realized other than a genera increase in sales up to thirty seven percent. The company has also beaten its market share target of 25% over the set duration. The future prospects include a decrease ion production cost and staying ahead of other competitors in innovation of new products. Work Cited Boone, Louis and David, Kurtz. Contemporary Marketing. Florida: Harcourt Brace College Publishers, 1999. Hiltz, Mark. The Marketers Handbook: A Checklist Approach. New Jersey: Markcheck Publishing, 2001. Print. Hollingsworth, Hellen et al. How many general hospital beds are needed?: A reappraisal of bed Needs in relation to population. U.S. Dept. of Health, Education, and Welfare, Public Health Service, Bureau of Medical Services. Washington DC: 1953 print Hospital Beds: A Problem for Diagnosis and Management? New York: Heinemann Medical Books, 1982. Print. Newell, John and Don, Alan. The demand for hospital beds: results of an enquiry on Tees-side. California: University of Durham, Kings College. 2009 print. Read More