Marketing for Quick Travel Medical Systems Inc - Business Plan Example

Marketing Plan: Quick Travel Medical Systems, Inc. PLACE HERE TEAM MEMBER S HERE PROJECT HERE Product and Service Concept Positron Emission Tomography (PET) Scan is a new medical innovation which maintains the ability to detect diseases in the human body with the help of radioactive substances (Plus, 2014). It is a modern and ground-breaking technology which is capable of showing how organs and tissues are working and if internal systems are working effectively. PET is much more advanced and unique in comparison to similar technologies including MRI (Magnetic Resonance Imaging) and CT (Computed Tomography); these two technologies show the structure of the blood from within human organs. Quick Travel Medical Systems, Inc. provides mobile PET/CT scan services that can be effectively moved from customer to customer. The fundamental advantage of this mobile service is to reduce rising medical costs for clients and improve quality of diagnostic services for medical customers in a health services environment where hospital charges and other health systems (i.e. clinics) are skyrocketing. Quick Travel Medical systems, under this mobile services business model, is capable of lowering operational costs (as compared to hospitals and clinics), which allows the business to pass on these cost savings from client to client. The provision of accurate medical diagnoses is critical to ensure that appropriate treatment methodologies are established for patients in need. With the mobile unit consisting of accredited technologists and support staff members to provide expertise to the business model without the significant overhead experienced by hospitals and clinics, the primary advantages for clients is more personalized service and cost savings. In the hospital and clinic environments, over-scheduling is a common problem which does not provide consumers with the type of rapid response and consultation services expected. Furthermore, busy physicians and other trained professionals and technologists, in the traditional medical services environments, do not have the necessary time to provide more personalized services which can impact customer loyalty and essentially provide for long-run client dissatisfaction. Quick Travel transcends these boundaries imposed on hospitals and clinics, thus enhancing service quality and providing improved client satisfaction. What makes the product so valuable for clients is, because of the mobile services business ideology, there is much less wait time for appointment scheduling as compared to hospitals and clinics. Furthermore, the mobile PET/CT services model and its associated internal expertise assigned to support the scanning services allows the patient one-on-one consultation with our technologists to ensure they understand the procedure they are undergoing which can potentially have psycho-social benefits for the client in terms of reducing perceived risk. Both as medical consultants and with improved response times to meet client needs, our business model outperforms most competitive medical diagnoses business models which Quick Travel believes is the fundamental source of our competitive edge. Target Market and Segmentation Citizens over the age of 65, referred to as the Baby Boomer Generation, represent the most significant end user of the services provided by Quick Travel Medical Systems. Researchers have identified a significant shortcoming in the capability of existing medical care systems to provide adequate care for aging populations (Gorman, Scott & Poole, 2007). Increasing morbidity in the Baby Boomer generation, characterized by poor health conditions or a general diseased state, substantially increases demand for competent health services. Concurrently, the World Health Organization warns that there will be a shortage of over four million health care workers by the year 2016 (WHO, 2006), which seriously complicates the ability of hospitals and clinics to provide excellence and personalization in medical care services needed for this generation. Research indicates that the aging population maintains significant anxiety about quality of health care services (Gorman & Scott, 2003). A market analysis was conducted of Alamogordo, NM and greater Otero County which discovered 31,000 potential Baby Boomer clients locally and 60,000 in the Otero Basin (Gov, 2014). This is representative of a total market availability consisting of citizens 65 and older at 16.8 percent for Alamogordo and 13.2 percent for Otero County which represents ample market potential for the PET/CT mobile services. Research has found that rural residents sustain much higher rates of chronic disease, disability and mortality than in urban regions (Gov, 2014), hence to maximize total client volume (and improve revenues for the firm), the business determined that servicing both urban and rural regions in Alamogordo and greater Otero County would be beneficial for clients and Quick Travel. In the year 2000, 11.7 percent of Otero County’s population was over the age of 65. This represents a 1.5 percent growth rate of this demographic in 14 years time. Furthermore, only 12.8 percent of the over-65 generation in Otero County lives under the poverty line, hence securing that the business can adequately service the majority of Baby Boomers in the region. In 2000, the volume of over-65 citizens in Alamogordo was at 12.7 percent (US Census Bureau, 2001), representing a growth rate of 4.1 percent growth rate in this demographic over a 14 year period. Hence, market analysis of Alamogordo and Otero County as viable markets illustrates that our business model can better reduce health service-related anxieties and concerns of the aging population who maintains greater predictability for morbidity and mortality. This makes the Baby Boomer market significantly lucrative and relevant for Quick Travel Medical Services. The mobile capabilities of the business model in conjunction with a growing market of the over-65 target segment can outperform competition in providing health services excellence with predictable revenue benefits for the business. Because the patient will require referrals from their physician before using our service, the business must target oncologists, physicians and hospitals that will be instrumental in ensuring Quick Travel gains customer patronage. Basic geographic segmentation will be utilized as appropriate medical experts that will serve as word-of-mouth referrals are limited to the Otero County region and Alamogordo. Because the aging population maintains a wide variety of different health problems and clinical needs, geographic segmentation ensures we are gaining appropriate medical expertise to serve as referral service figures. Value Proposition To gain valuable perspectives from our target market, primary research was conducted using a small, randomized sample of over-65 patients from Gerald Champion Regional Medical Center in Alamogordo. Because secondary research (Gorman & Scott, 2003; Gorman, et al., 2007) indicated significant anxieties and shortcomings of health service delivery for the aging population, qualitative interviews were conducted with over-65 patients waiting for services in the Diagnostic Imaging Department at the GCRMC. (See Appendix for interview question template). Access to the random sample was approved by general admissions/service staff in the Diagnostic Imaging Department to conduct a small-scale set of interviews with patients of the hospital. The interview template was shown to the receptionist and an active hospital physician who approved this study. On October 4 and October 5, the researcher spent several hours daily in this department, waiting for patients who fit the Baby Boomer profile to enter the waiting room. Responses to the interviews were recorded with general field notes, documenting only notable responses that were relevant to the business model and service ideology of Quick Travel. The only limitation to this primary study was time constraints on behalf of the researcher to recruit a broader sample. The final sample of participants (seven respondents) consisted of the following: Male – Age 69 – Gastrointestinal health problems Male – Age 75 – Cancer Screening Male – Age 66 – Cancer Screening Male – Age 80 – Unclear Health Condition Female – Age 72 – Unclear Health Condition Female – Age 79 – Physician Recommended Preventative Diagnosis Female – Age 67 – Uncertain Brain-Related Health Concerns In all instances, patients indicated a substantial interest in mobile services, with six participants indicating that they were frustrated with scheduling capabilities and service level. All patients were frustrated with the level of consultation competency of imaging technologists and associated physicians. Cost, according to six of the seven participants, was of significant or extensive concern for these services. Based on findings, there is ample interest from the target market for mobile diagnostic services and the competitive cost structure would be advantageous for this market segment. Subjective inference on body language and expression from participants indicated moderate or significant degree of worry and anxiety about service competency and consultation ability of hospitals and relevant clinics providing service. As a result of the findings of the small-scale study, a profitable value proposition can be provided: “Quick Travel Medical Services provides the utmost competency in providing personalized care at an affordable price for diagnostic imaging services. With our accredited technologists and professionals capable of helping the patient to fully understand the procedure and illustrating empathy amid a difficult health scenario, Quick Travel is more effective, responsive and competent in providing these services. We understand that the process of procuring diagnostic services is frustrating and full of worry. At Quick Travel, YOU matter and we intend to show it while also lessening the cost burden usually associated with diagnostic services. Since we bring the services DIRECTLY to the patient, long gone are extended wait times and service problems.” Pricing Strategy Target Pricing Methodology is the framework by which the company’s pricing structure is founded. The underpinning benefit of this strategy is to determine the most appropriate price by which the service becomes competitive, determining what level of profit is expected by the firm, and then subtracting desirable profit from the market price: Target Price – Desired Profit = Target Cost Research has indicated that PET scan prices, at a nationwide average range from $3,300 to $5,300 per scan (New Choice Health, 2014). The business demands a 50 percent profit margin, which falls within slightly above-average range for similar industries. The business currently maintains projected monthly expenditures of $79,496/month. A 50 percent profit margin was calculated as follows: $79,496 x 1.50 = $119,244 $119,244 - $79,496 = $39,748 demanded profit/month This entails a yearly target profit, with all expenses considered along the business/operational model, of $476,976. With the capability of the business able to serve 125 (minimum) customers, averaging 11 customers per month in year one, the following pricing structure justifies the expected profit margin of 50 percent. (Note, the business believes that 11 customers per month is conservative and will likely be inclusive of a higher client volume): $476,976 / 125 = $3,815 per scan (Very competitive) Marketing literature also describes the benefits of odd pricing, where last digits are set at odd figures (Boone & Kurtz, 2007). Under this structure, consumers have positive psychological responses, believing that a price is actually less. The final price for the scan is: $3,799 per scan Sales and Marketing Strategy A competent sales and marketing strategy will be substantially paramount to the success of the business model, especially in Year 1 of operations without a recognized brand. Therefore, brand-building will be a fundamental strategic objective of marketing to gain a better market position by Year 2 of operations. Brand recognition encompasses the extent to which consumers can productively recall a brand and positively associate the brand to its existing service (Percy & Rossiter, 1992). Without this recognition by desired target consumers, brands cannot manage to differentiate themselves effectively amidst a highly competitive market environment. The first foundational strategy of achieving brand recognition is focusing on promotion. The following represents the holistic promotional plan designed to build brand recognition and ensure that desired target consumers know of the business, its model and service ideologies. Digital advertising: AARP AARP, the American Association of Retired Persons, is a highly-rated membership organization for individuals in America over the age of 50. AARP offers medical supplement insurance policies, insurance, discounts on senior travel, and discounted prescription products to senior citizens. As of April 2014, the non-profit organization boasts 37 million members across the country, thereby making AARP the largest member organization in the country (AARP, 2014). Membership in AARP includes home delivery of the AARP Bulletin, which provides 40 million copies in circulation in the U.S. every two months, making it the highest magazine circulation in the nation. Contact was made with AARP’s advertising division at [https://www.pagegage.com/aarp] to determine appropriate costs for advertising Quick Travel in this highly-praised, over-50 targeted magazine, published online. According to AARP, the over-50 demographic is the fastest growing demographic accessing media and advertising content online (AARP, 2014). Access to AARP’s digital gateway consists of digital media targeted at mobile phones and emails of members, and is inclusive of geo-targeting services, social media, and eNewsletters that reach desired demographic membership. Net CPM for basic advertising with AARP Digital Bulletin will cost Quick Travel Medical Services $775. Advertising with AARP’s digital media services will automatically target communications to selected demographic membership and provide digital advertising content without Quick Travel having to conduct the legwork to reach appropriate target audiences in the Alamogordo and Otero County. This strategy will endure for the first four months of Year One Operations to determine the level of response received as a result of this advertising strategy. This is a viable strategy as statistics indicate that Baby Boomers now spend 14.8 hours weekly on the Internet (eMarketer, 2013). Furthermore, 42 percent of all social network users are Boomers (Baby Boomers Laugh and Learn, 2012). The rationale for this strategy is to ensure appropriate digital marketing communications which describe the importance of consulting with patient oncologists, physicians and hospitals to refer the patients to our patient-centric business model. This provides foundational knowledge of the Baby Boomer market to increase interest in Quick Travel which, in turn, will assist in gaining more physician referrals. By having our most lucrative patient demographic actually asking for Quick Travel, there is more likelihood that the Quick Travel will receive more referrals to our services. The firm will establish a marketing metrics system which will measure the return on investment for responses as a result of this $3,100 four month investment. All digital targeted advertisement delivered via geo-targeting will include a 10 percent off coupon. Statistics as to the volume of responses which return this digital coupon will determine whether to continue this particular promotional campaign. Brochures: Working with AC Print and Design Studios in Alamogordo, a graphic design company, the business will be producing tri-fold, full color brochures at a price of $267.50 for 500 brochures; a discounted rate for bulk purchasing at this ad partner. The brochures will contain detailed information about the business model, its value proposition and service ideology, as well as inclusion of a 10 percent coupon off the informed pricing structure for the first 100 responders, a fear of loss strategy with potent psychological implications. Once produced, these brochures will be distributed, upon agreement by local administrators, at hospitals and clinics in the target region that supply imaging services to the older demographic. This strategy will also provide opportunities for business administrators at Quick Travel to network with appropriate oncologists and relevant physicians that will be instrumental in assisting with diagnoses and consultations with patients. This is significantly important to gain cooperation and support for why it would be advantageous for physicians, hospitals and oncologists to select our services. The administration at Quick Travel Medical Services believes that this will be important in expanding the word-of-mouth opportunities for referrals to Quick Travel in the event of scheduling overbooking problems and provide a quality brand reputation among health service professionals in the region. Other relevant organizations where the brochures will be distributed are geriatric-related businesses in Otero County including the Desert Lakes Golf Course, Marquardt T. T. Optometry, Reverend William Bennett, The Benevolent Order of the Elks, and Three Flowers Mobile Home Park (which maintains 60 percent Boomer and Geriatric residents). The goal is to expand social knowledge of Quick Travel to build brand recognition and gain more consumer interest in asking oncologists and physicians to be referred to our specialty, consumer-centric business model. Below is an example of the visual imagery utilized in brochure production: Source: Brighton Implant Clinic. (2014). http://www.brightonimplantclinic.com/oral-health-care-for-the-elderly/ Source: Amicord Retirement Home. (2014). http://amicordretirement.com/ The effectiveness of this type of imagery has been documented by empirical study. Beldona, Nusair & Demicco (2009) found that Baby Boomers often refer to their cohorts (social reference groups) when making purchase decisions. Furthermore, a 1982 study found that empathic exchanges between health care worker and the elderly patient improve psychological health of the patient (Comstock, et al., 1982). By using socio-psychological imagery in brochures, it should trigger a positive response toward the brand and improve in brand recall critical to differentiation in a highly saturated competitive environment. The psychographic profiles of the Baby Boomer market are important to consider in all advertisement that is directed at physicians and oncologists. Baby Boomer attitudes, values and lifestyles will be predictors of whether they view our brand as being relevant to the self and viable for consumption. Because of the complexity of these factors related to market characteristics, we must, in order to build a positive brand reputation, align our promotional strategies with market socio-psychological characteristics if we are to stand out among competing hospitals, clinics and other diagnostic service providers. Quick Travel believes that by appealing to the psychographic profiles and needs of the Baby Boomer generation, our business will excel and it will make the return on investment for our integrated marketing communications substantially higher than that of competition in our local and regional markets. Brochures will educate physicians and oncologists about the psychological needs of Boomers, thus enhancing referral growth. With hospitals and clinics not having enough support to ensure a holistic, consumer-centric experience in service provision, Quick Travel must convince referring physicians and oncologists why Quick Travel is the most effective solution for imaging services to this older demographic. Direct Sales Strategy In order to improve visibility while also expanding the word-of-mouth opportunities for the brand, Quick Travel will send out dedicated internal sales representatives consisting of administration who will visit clinics and hospitals in the local region. These representatives, once gaining approvals to conduct seminars and presentations within appropriate clinics and hospitals, will expand brand presence for the firm. Representatives of the firm will be trained with presentation skills and be provided with appropriate brochures and other associated tools to conduct personalized seminars with oncologists and physicians. These interventions with real-world medical experts will discuss such factors as: Personalization advantages Pricing advantages How we work with Medicare, Medicaid and other insurance plans Mobile consultation Easing scheduling burdens at clinics and hospitals Gaining loyalty to the physician and oncologists for satisfying consumer needs through referral Building co-branding opportunities for greater mutual revenue production These in-house direct sales strategies will add credibility to the service ideology of Quick Travel Medical Services and help medical experts understand, fully, what the differences and benefits of our services are in comparison to hospitals and clinics and other diagnostic imaging service providers. Through these interventions and sales presentations, prospective clients will be able to interact with brand leadership and sales management to improve the one-one-one perceptions that our business model provides to our clients. It is believed that this type of focused training and consultation with appropriate medical field experts will enhance consumer perceptions of brand reliability which makes us more enticing to those who have direct experience with our expert staff members. The target market will be allowed to tour the mobile services trailer to witness the modernized technologies and fully comprehend what the experience will entail as opposed to hospitals and clinics; which are often sterile and uninviting. In some instances, in these interventions, to instill even more interest and confidence, administrators and other sales professionals will be authorized to provide snacks and other promotional gratuities to the audience members. Incentives, in marketing, are some of the most stimulating and engaging aspects of a competent sales strategy. Low-cost promotional materials will be created with our chosen design partner, AC Graphics, to ensure the brand is firmly placed in the minds of potential customers. Marketing Costs – Holistic Examination The use of brochures, AARP Digital Services, and direct selling strategies utilized in this marketing plan consists of holistic expenditures of approximately $5,000 for the first four months of Year One operations. This is well within the established marketing budget for this campaign of $3,000 for start-up marketing and $892 monthly, which will cover the initial AARP Digital Bulletin advertising strategy and all associated print advertisements and presentation costs. Additional expenditures along this sales and marketing campaign, including snacks provided for in-house audiences of sales presentations and interventions, are satisfied by the established business budget. It is not anticipated that any unforeseen expenditures in the sales and marketing function will overshoot the established budget. Conclusion The business model established for Quick Travel Services, Inc. surpasses any service ideology provided by regional hospitals and clinics. Our company’s dedication to providing excellence in service delivery, personalization, and rapid scheduling capabilities due to mobility is unparalleled in the competitive industry. With effective promotion and legitimate focus on providing customer satisfaction throughout our service engagements, and with a servicescape that is modern and inviting, it is believed that we can quickly establish a positive brand reputation and improve the word-of-mouth opportunities for the firm. We intend to capture this market through intangibles of marketing competency and the tangibles of effective and warm customer service. Through our routine consultations with medical experts (i.e. technologists, oncologists and relevant physicians), we intend to expand our knowledge base in medical procedures and terminology, thus enhancing customer perceptions of competency, forthrightness, and ingenuity. We understand that the anxieties of customers and their associated concerns about going to hospitals and clinics for diagnostic needs are substantial in a demographic that has significant psychological responses to inferior quality of service and service ideology. We, as a company, genuinely seek to emulate all of the characteristics and ideologies that we promote and will certainly outperform our customers, and establish a positive brand, by remaining focused on these elements of quality business practice. As shown by the marketing plan described here, our competitive advantages encompass mobility, rapid response to customer needs, maintaining high integrity in service ideology, and working on brand management to ensure brand recognition and, hopefully, long-term brand loyalty. Quick Travel Medical Services is a pioneer in providing modernized diagnostic services and we genuinely believe that maintaining this focus will set us apart from competition and build a profitable brand capable of building long-term revenue growth. The business, as a control measure, will conduct routine market analyses and competitor analyses to determine what innovations are being offered by competition in the region. We will be examining changes in consumer behavior observed through engagement with real-world customers and will adopt our business model according to any quantitative or qualitative findings in our marketplace. Further control activities will include routine auditing of internal systems and procedures to identify any potential inconsistencies or deficiencies, with corrective measures taken to ensure that the business optimizes its resources, practices and service attitudes accordingly. Quick Travel Medical Services believes that control methodologies and external market analyses are the most fundamental methods to ensure the business model is relevant and ensures profitable longevity in our existing market. References AARP. (2014). Who We Are. Retrieved October 2, 2014 from http://www.aarp.org/about- aarp/?intcmp=FTR-LINKS-WWA-ABOUT AARP. (2014). AARP Digital. Retrieved October 2, 2014 from http://advertise.aarp.org/media_properties/digital/ Baby Boomers Laugh and Learn. (2012). Boomers and the Internet: New Statistics. Retrieved October 9, 2014 from http://www.babyboomerslaughandlearn.com/?p=5980 Beldona, S., Nusair, K. & Demicco, F. (2009), Online Travel Purchase Behavior of Generational Cohorts: A Longitudinal Study. Journal of Hospitality Marketing and Management, 18(4), pp.406-420. Boone, L. & Kurtz, D. (2007). Contemporary Marketing (12th ed.). Thompson South-Western. Comstock, L., Hooper, E., Goodwin, J. (1982). Physician Behaviors that Correlate with Patient Satisfaction. Journal of Medical Education, 57(2), pp.105-112. eMarketer. (2013). Boomers and Seniors Favor the Web. Retrieved October 6, 2014 from http://www.emarketer.com/Article/Boomers-Seniors-Favor-Web/1010037 Gorman, D., Scott, P. & Poole, P. (2007). On the Future role of the Doctor. Journal of Internal Medicine, 37, pp.145-148. Gorman, D. & Scott, P. (2003) The Social Distortion of Medical Practice. Medicine Today, 4, pp.75-77. Gov, U. (2014). Quick Facts. Washington DC: United States Census Bureau. New Choice Health. (2014, January 1). PET CT Scan Cost and Procedure Information. Retrieved October 1, 2014 from www.newchoicehealth.com/Directory/Procedure/47?PET CT Scan Percy, L. and Rossiter, J. (1992). A Model of Brand Awareness and Brand Attitude: Advertising Strategies. Psychology & Marketing, 9(4), pp.263-274. Plus, Medicine. (2014). PET Scan, Medline Plus. Retrieved October 2, 2014 from http://www.nlm.nih.gov/medlineplus/ency/article/003827.htm. US Census Bureau. (2001). Profiles of General Demographic Characteristics: 2000 Census of Population and Housing – New Mexico. Retrieved October 2, 2014 from http://www.census.gov/prod/cen2000/dp1/2kh35.pdf WHO. (2006). Working Together for Health, World Health Organization Workforce Report, Geneva. Retrieved October 4, 2014 from http://www.who.int/whr/2006/en/ Appendix: Qualitative Interview Template 1. How would you rate the quality of services (physician interventions, diagnostic techniques, and level of personalized service) at the GMCRC? 2. What are two of your main concerns about the diagnostic imaging services provided by GMCRC or other hospitals/clinics? 3. Do you feel that the hospital or other clinics are effective in providing consultation and knowledge about the diagnostic imaging services being provided? Why? 4. If there was a company that brought mobile and innovative diagnostic services directly to you, rather than through the hospital or clinic, would you seek out or effectively use such a service? 5. How important is cost for diagnostic imaging services to you? Read More