Establishing a Chain of Corporate Hospitals (A): Deciding the Unique Selling Proposition | Services Marketing Case Studies

Details

Case Code : CLSM044
Publication date : 2009
Subject : Services Marketing
Industry : Healthcare
Length : 03 Pages
Price : Rs. 100

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Key words:

Unique Selling Proposition (USP), Tertiary care hospital, Marketing research, Differentiation, Patient and patient attendant, Consumer behavior, Chain of corporate hospitals

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

A healthcare service provider in India intends to set up a chain of multi-specialty, tertiary care hospitals across the country during a five-year period. This fictitious case (based on generalized experience) discusses the research process that begins with defining the customer and understanding the customer needs, and ends with the choice of a Unique Selling Proposition.

Issues:

» Marketing research and consumer behavior in the healthcare sector
» The Unique Selling Proposition as a strategic marketing decision

Introduction

CareServ India Co. Ltd. (CareServ India) had ambitious plans for the country. It planned a phased rollout of eighteen CareServ Hospitals in India, over the next five years. It was to set up its first hospital - a multispecialty, tertiary care facility in New Delhi - in the current year...

Questions for Discussion:

1. After completing the customer survey and focus group discussions, the market research team had interacted with experts from the hospital industry as well as the hospitality industry. The USP decision of CareServ Hospitals was more in tune with the opinion of veterans from the hospitality industry than with that of medical professionals. Given that CareServ Hospitals planned to offer tertiary care services, what are the pros and cons of this strategic decision?

2. The flagship hospital of the CareServ India is to be set up in New Delhi. To operationalize its USP decision, what should the hospital management do in terms of designing and implementing a suitable healthcare delivery system? (Hint: You can adopt the 'Seven P's of Services Marketing' framework to analyze this situation.) What are the implications of this decision on funding requirements for the hospital?

3. After setting up the flagship hospital this year, the management had ambitious plans for a phased rollout of eighteen CareServ Hospitals in India, over the next five years. In your opinion, what would be the significant opportunities and challenges in replicating this model to multiple locations in such a short span of time?