10 Step Marketing Plan for Maxicare

Chan, Oliver S.

November 2010

Maxicare’s Primary Target Market and Postitioning1. Maxicare’s PTM are large corporations with social class A, B, C employees.

2. Who want to feel secure of healthcare financing and delivery.

3. Can choose Intellicare, Medicard, etc.

4. Gap is all other companies focus on savings.

5. Market size is P13.15 Billion. Maxicare niche is P5 Billion.

Maxicare’s Marketing Mix and Strategy6. Pre-paid health delivery system.

7. Maxicare is priced at a 10% premium compared to Medicard.

8. Uses sales agents, doctors, events, Maxibears, and company website.

9. Available nationwide.

10. Uses a best in service approach to win.

1. Maxicare PRIMARY TARGET MARKET (PTM) are corporations

Large corporations (ex. San Miguel, BDO, Call Centers) who take care of their workers (executives, managers, regular employees)

Social Class A, B, C

20s – 50s, M/F

Lifestyle: Working individuals, employed

Behavior: Premium healthcare at its finest

2. PTM’s Needs, Wants and Demands (Maslow’s Heirarchy of Needs)

I want to feel medically safe when I get sick.

BIG companies deal with BIG companies (status)

Corporations choose Maxicare because… Corporations need…

To provide health insurance for their employee’s safety.

Big corporations want an equally, or even more successful corporation as their partner in healthcare. Maxicare is one of the largest HMO in the country = small chance of closing, big

pool of clients to spread and minimize risk, nationwide coverage.

Corporations expect excellent service with Maxicare. Safe with Maxicare as a partner in financing healthcare.

3a. Direct and Indirect Competition Direct:

Indirect:

Variables: Coverage, Price, Accessibility, Convenience, Brand.

3b. Competitive Position Map

Price / Coverage Matrix Minimal Coverage Wide Coverage

High Price

Average Price

Low PricePhilHealth

Medicard

Maxicare

Cocolife

Accessibility / Brand Matrix

PhilHealth Medicard Maxicare

NCR

Luzon

Visayas

Mindanao

3b. Competitive Position Map

4. Maxicare focuses on healtcare at its finest.Best in Product / Service

Maxicare is priced higher than its rivals and did not follow the trend of sacrificing services to offer lower prices.

Some insurance companies were not able to serve clients because of the very low priced rates hence had to close.

5a. Based on competitor data, HMO market is P6.3 B / yr with a membership base of 2 M.

5b. Market Size using Company’s Data Market size of healthcare plan holder is 2 million.

Maxicare’s has over 500,000 members as of December 2009 – 25%.

Average cost per plan is P50,000 / yr.

5b. Based on Maxicare data, where Maxicare share is 25%, total market size is P20 billion Maxicare Data: Membership base is 500,000

*average annual fee of P10,000 (500,000 * P10,000 = 5 Billion)

Maxicare claims market share of 25%

Then total healthcare market size is 5 billion / 0.25 = P20 billion.

5c. Estimate market size using customer data Data usage still cannot be determined due to high variability in usage of

healthcare insurance.

5. Concluded that healthcare insurance market isP13.15 Billion Competitor data: P6.3 Billion

Company data: P20 Billion

(6.3 + 20) / 2 = P13.15 Billion

6a. Healthcare Insurance is dominated by 3 major brands

6b. Product Description Maxicare, established in 1987, serves as a prepaid health care system that

finances and delivers healthcare services. It has nationwide coverage with its main offices located in NCR.

It is a healthcare insurance partner with top hospitals in the country such as The Medical City, St. Luke’s, Asian Hospital, and Makati Medical Center.

Membership types available are Silver, Gold, Platinum, and Platinum Plus with annual fees ranging from P8,000 to P1 M.

They offer corporate and individual packages.

Services are offered 24/7 via telephone hotline or SMS.

Maxicare Services

7. Price

Prices range from P8,000 – P50,000 per annum depending on the customer’s demographics and plan type. It is priced at a premium of around 10-20% compared to other Healthcare Insurance.There is a “quick plan computation” in Maxicare’s website to cater to pricing queries. Above is an example of such.

8a. Promo

Maxicare promotes its products mainly through sales agents closing deals with corporations.

Other promotional avenues are through doctors bringing in their patients, sponsoring events, Maxibears, and company website

8a. Promo

8b. Competitor Promo

8b. Competitor Promo

9. Maxicare is accessible nationwide Directly apply with Maxicare’s Sales Department;

Leading hospitals have an office for Maxicare clients and new applicants;

Through Corporations like San Miguel, BDO, BPI, People Support, Teleperformance, Sitel, Etelecare, AIG.

10. Maxicare is a Best in Healthcare Service Provider

Maxicare’s main strategy is to provide finest healthcare available to executives and employees in social class A, B, C, aged 20 to 50 years old.

It is accessible nationwide and available 24/7 through website, hotline, SMS.

Has an excellent, premium priced healthcare insurance, serviced by the leading hospitals and doctors of the country.

SUMMARY

Maxicare’s Primary Target Market and Postitioning1. Maxicare’s PTM are large corporations with social class A, B, C employees.

2. Who want to feel secure of healthcare financing and delivery.

3. Can choose Intellicare, Medicard, etc.

4. Gap is all other companies focus on savings.

5. Market size is P13.15 Billion. Maxicare niche is P5 Billion.

Maxicare’s Marketing Mix and Strategy6. Pre-paid health delivery system.

7. Maxicare is priced at a 10% premium compared to Medicard.

8. Uses sales agents, doctors, events, Maxibears, and company website.

9. Available nationwide.

10. Uses a best in service approach to win.

10 Step Marketing Plan for Maxicare

Chan, Oliver S.

November 2010