+

Bumrungrad International HospitalJoint Replacement Center

Faiz AzharKevin Clark

Ashley HenryCecily Quintana Spring Wedlund

+Agenda

Company Overview

Product/Service Assessment

Market Analysis

Competitor Analysis

Net Assessment

Marketing Strategy

Implementation

Conclusions

+ Company Overview:Who We Are

Bumrungrad International Hospital (BIH)

Founded in 1980, located in Bangkok, Thailand Positioned as one of the premier destinations for

medical tourism in the world Bumrungrad serves over a million patients annually.

Over 400,000 are internationals 30 Specialty Centers Staff speaks over 14 languages

BIH Joint Replacement Center Established in 2012 Specializes in Knee and Hip Replacement Cooperates academically with the Dorr

Arthritis Institute Cooperate academically with Dr. Lawrence D.

Dorr, an expert of joint replacement surgery and the developer of robotic arm assisted surgery

+THE BIG IDEA

“We Invite the World To Bumrungrad”

RELAX, RENEW, REVITALIZE

+ Recovery in 5 Star Accommodations

Luxury interiors

Separate living room and patient room

Two large Flat Screen TVs

Private marble bathroom with shower

Two marble bathrooms with showers

Granite kitchenette with dining table

Refrigerator and Microwave oven

Dishware and glasses

In-room personal safe

cordless phones

60-68 square meters

Free Wi-Fi

$595 US a night

+Uniquely Thai Hospitality

Hospital Concierge: 7 doctors and 12 nurses coordinate scheduling of procedures, attendant family questions during treatment, and follow-up care planning.

Culturally Sensitive: Customer Service Representatives speak English, Thai, Amharic, Arabic, Bengali, Burmese, Cambodian, Chinese, French, German, Japanese, Korean, Mongolian and Vietnamese. 

Hospital Concierge: Available for any inquiries regarding Travel Services including: Hotel Reservations Air Tickets for both international and

domestic (Reconfirmation, Rerouting, Re-validation, Changing date and new ticket)

Transportation Service to Airport and other destinations required by customers

Local tour services , dinner and entertainment arrangements

+Post-Op in Paradise

+

MAKOplasty® is available for both total

hip arthroplasty & partial knee

resurfacing. MAKOplasty® is an

innovative, solution for those suffering

with debilitating pain of the knee or hip.

Powered by the surgeon-controlled

RIO® Robotic Arm Interactive

Orthopedic System and enabling

implant designs, MAKOplasty® allows

surgeons to treat patient-specific knee

& hip conditions with consistently

reproducible precision

Product/Service Assessment:Joint Replacement with

MAKOplasty®

Bumrungrad International Hospital has

agreed to cooperate academically with

Dr. Lawrence D. Dorr, an expert of joint

replacement surgery and the developer

of robotic arm assisted surgery, who

founded the Dorr Arthritis Institute in

the United States of America.

+ Product/Service Assessment:Advantages of MAKOplasty®

Patient is able to walk within 24 hours after surgery

Artificial knee and hip joints last longer than usual

Patient is able to return home more quickly and will recover at the hospital for no more than three days

Less pain when compared with traditional joint replacement methods

Less incidences of infection

Less blood loss

Smaller incision

Quicker recovery

+Product/Service Assessment:FAB Analysis

+Market Analysis:Potential Market Segments

2. Managed Care Escapees

45 + 50K+ Europe/Canada Socialized healthcare Need for joint replacement

3. Privileged Patriarchs/Matriarchs

45+

Wealthy Developing Countries Emphasis on Arab nations Need for joint replacement

1. Underinsured Boomers

45+ $50K + U.S. Underinsured Need for joint replacement

+Customer Value Drivers

+TAM/SAM

TAM BuildUp Europe/Canada US Arabic Other Market Potential

Total Buyers 453,600 375,000 90,000 150,000 1,068,600

Average Purchase Price $13,000 $18,000 $12,000 $13,000  

Segment Potential $5,896,800,000 $6,750,000,000 $1,080,000,000 1,950,000,000 $15,676,800,000

% of Populatio TAM 42% 35% 9% 14% 100.00%

% of Dollar TAM 38% 43% 7% 12% 100.00%

+Three Year Market Forecast

2014 2015 2016 $-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$2,376,351

$5,987,807

$11,001,869

$2,986,673

$7,302,128

$13,018,256

$80,174 $202,018 $371,183

Bumrungrad International 3 Year Sales Forecast

Managed Care Escapees Underinsured Boomers Privileged Patriarchs

+Segment Attractiveness Analysis

+Target Market Potentials

Underinsured Boomers Weighted Average 7.05 SAM 6.8 Billion

Managed Care Escapees Weighted Average 5.83 SAM 5.9 Billion

Privileged Patriarchs/Matriarchs Weighted Average 4.08 SAM 1.95 Billion

+Competitors

HOSPITALITY

Prince Court Medical Centre in Kuala Lumpur,

Malaysia

Joint replacement surgery is less expensive in an atmosphere with similar 5 star amenities.

Recently surpassed Bumrungrad International Hospital as the #1 medical tourism destination in the world (Forbes, 2012)

JOINT REPLACEMENT

Hospital for Surgery in New York, New York

Ranked #1 Orthopedics department in the United States (US News & World Reports, 2013)

They are global first movers regarding research in joint reconstruction

+Competitive Analysis:Porter’s 5 Force Model

+

Qualit

y of

Wor

k

Tech

nolo

gy E

mpl

oyed

Facilit

y

Ease

of T

rave

l

Price

0

1.5

3

4.5

Competitve Factor Analysis

BumrugradPrince CourtHospital for Special Surgery

Competitive Factors

Rela

tive V

alu

es

Competitive Factors

WTD Average Bumrungrad 4.4Prince Court 4.3HFSS 4

Qualit

y of

Wor

k

Tech

nolo

gy E

mpl

oyed

Facilit

y

Ease

of T

rave

l

Price

0

0.4

0.8

1.2

Weighted Average Anal-ysis

BumrungradPrince CourtHospital for Special Surgery

Competitive FactorsW

eig

hte

d A

vera

ge V

alu

es

+Q: What sets Bumrungrad International Hospital Joint Replacement Center apart from the competition?

A: The Union of Western Technology and Eastern Philosophy

+SWOT

+Risk Factors

Political/Macroeconomic and natural disaster related factors

Intensified competition in premium healthcare sector

Shortage of professional staff

Legal disputes

+MOA Conclusions

Underinsured Boomers are the #1 target segment

Competition is close behind

BIHJRC has a fast mover advantage including quality services and leveraging of medical tourism

Key value drivers: low cost, exceptional value, credibility, and ability to meet customer’s unique needs

Increased health costs coupled with lack of insurance and aging population makes it a prime time to expand the market

+Marketing Strategy

Strategy Platform

Product/Service Plan

Sales & Distribution Plan

Promotion Plan

Pricing Plan

+Marketing Strategy:Marketing Objective Dashboard

+Ansoff/Growth Matrix

s4

Existing Products/Services New Products/Services

Exis

ting M

ark

ets

New

Mark

ets

• Design configurations to support new medical processes such as larger operating theatres to accommodate surgical robots

• Electronically equipped meeting rooms to allow teleconferencing between our doctors and those at other hospitals

• Hire new staff

• Target competitor’s customers

• Target patients of socialized healthcare

• Target underinsured patients• Target those without access

to quality healthcare• Target older patients

• Market BIHJRC to areas of the world such as Russia

• Target the younger, more active market in need of joint replacement

• Create partnerships with hospitals in other countries

• Build more referral offices in countries around the world

+Market Strategy Value Disciplines – Knowledge Leadership

Knowledge

Innovation

Customer IntimacyTime

Operational Excellence

0

0.5

1

Series1

+Market Strategy: Positioning Strategy

Value Proposition: Experience world-class healthcare and hospitality at an affordable price; revitalize and renew without the wait.

Positioning Objective: Fast mover advantage in:

Quality Leveraging Medical Tourism Services

Key Value drivers: Low cost, exceptional value, credibility, ability to meet customer’s unique needs

+Marketing StrategySales Objectives

Objectives: Increase to 4% market share 308% revenue increase Year One:

Revenue: $14,659,750 Surgeries performed: 916

Year Two Revenue: $24,963,012 Surgeries performed: 1576

Year Three Revenue: $36,064,385 Surgeries performed: 2300

+Market Strategy: Channel Strategy BIHJRC Distribution Channels

DIRECT INDIRECT

BIH Website Referral Offices (25)

Target Customers

+Market StrategyPromotion Objectives

Inform the target audience about BIHJRC through our chosen media vehicles

Increase awareness 40% about BIHJRC among our target audience

Persuade more people in need of joint replacement to travel overseas to Bumrungrad

Stimulate demand for Bumrungrad in the joint replacement market

Reinforce the Bumrungrad brand through the use of advertising

+Promotion Strategy

Digital Marketing Campaign Search Engine Optimization Google AdWords Digital Ad Campaign

Social Media Team

Direct Response Advertising Infomercials in the U.S. and Canada Sponsored Newspaper Columns Sponsored Magazine columns

Ads in International Papers/Magazines New York Times Sunset Magazine Departures/American Express Magazine AARP

Health Fairs

Redesign BIHJRC website

+Marketing: Pricing Strategy

Penetration Pricing

Bundling with optional

accommodations

Price sensitive target market

Many competitors/substitutes

Although prices are low, they are

within the top tier of Thai hospitals

+Implementation:

Three Year Pro Forma P & L

Total Revenue: $75, 687,146

Total Expenses: $62,298,090 Operating Costs Administrative Costs

Marketing Expense: $7,568,715

+Implementation:Year 1 Campaign Plan

% of Budget 2014 ExpenseDigital Marketing Campaign 16% 234,556 Search Engine Optimization (SEO) 3% 43,979 Google AdWords 3% 43,979 Digital Ad Campaign 10% 146,597

Social Media Team 4% 58,639 International Social Media/Online Content Team 4% 58,639

Sponsored Advertisements 35% 513,091 Sponsored Television Programs in U.S. 25% 366,494 Sponsored Television Programs in Canada - Sponsored Newspaper Columns 5% 73,299 Sponsored Magazine Columns 5% 73,299

Ads in International Papers/Magazines 15% 219,896 New York Times 8% 117,278 Sunset Magazine 5% 73,299 Departures / American Express Magazine - AARP 2% 29,319

Personal Promotion 25% 366,494 Booth at Health Fairs 25% 366,494

Website Enhancement 5% 73,299 Redesign the JRC Website 5% 73,299

Totals 100% 1,465,975$

MarComm Budget

+Implementation:Year 2 and 3 Campaign Plan

% of Budget 2015 Expense 2016 ExpenseDigital Marketing Campaign 11% 274,593 396,708 Search Engine Optimization (SEO) - - Google AdWords 3% 74,889 108,193 Digital Ad Campaign 8% 199,704 288,515

Social Media Team 4% 99,852 144,258 International Social Media/Online Content Team 4% 99,852 144,258

Sponsored Advertisements 45% 1,123,336 1,622,897 Sponsored Television Programs in U.S. 17.5% 436,853 631,127 Sponsored Television Programs in Canada 17.5% 436,853 631,127 Sponsored Newspaper Columns 5% 124,815 180,322 Sponsored Magazine Columns 5% 124,815 180,322

Ads in International Papers/Magazines 20% 499,260 721,288 New York Times 8% 199,704 288,515 Sunset Magazine 5% 124,815 180,322 Departures / American Express Magazine 5% 124,815 180,322 AARP 2% 49,926 72,129

Personal Promotion 20% 499,260 721,288 Booth at Health Fairs 20% 499,260 721,288

Website Enhancement 0% - - Redesign the JRC Website - -

Totals 100% 2,496,301$ 3,606,438$

MarComm Budget

+Timeline Launch

The Advertising launch will begin in January of 2014 and will focus on the US Underinsured Boomer market In this year we will establish an in-house social media team

comprised of diverse nationalities. We will invest in establishing a website devoted strictly to the

joint replacement center. A budget emphasis will be on sponsored media including

television programs, magazine and newspaper columns and presence at Health Care fairs throughout the United States in key markets.

Years 2015 and 2016 will target the same advertising executions with the addition of two international magazines and sponsored television programs, magazine and newspaper columns

+Conclusions

Currently the medical tourism industry is booming, Life expectancies are increasing, and economies are booming in emerging and developing nations

The BIHJRC currently meets all of the customer value drivers in each of the three marketing segments: Underinsured Boomers, Privileged Patriarch/ Matriarchs

The marketing plan we propose will take advantage of the BIHJRC strengths and opportunities to

“Invite the World to Bumrungrad.”