3. Touch topics . . .
A brief on Marketing
The Indian Healthcare scenario
Healthcare divide in India
Government – An healthcare marketer
Healthcare – An entrepreneurial Venture
Will not touch up on strategies for Marketing
4. What is Marketing ?
They are all functions that link the business with customer needs and
wants in order to get the right product to the right place at the right
What is healthcare marketing ?
Marketing of health-related products and services.
Healthcare Marketing Wins Patients, Enhances reputation and Grows
5. What is modern healthcare . . ?
It is a systematic delivery of preventive & curative care by
professional & paraprofessionals
A modern healthcare system is the organization of people,
institution and resources to deliver healthcare services to meet
the health needs of our target population
6. The Healthcare scenario
• Healthcare is one of India’s largest sectors, in terms of
revenue and employment, and the sector is expanding rapidly
• During the 1990s, Indian healthcare grew at a compounded
annual rate of 16%
• Today the total value of the sector is more than $34 billion.
• This translates to $34 per capita, or roughly 6% of GDP.
By 2012, India’s healthcare sector is projected to grow to nearly
7. Growth Drivers . . .
India’s booming population, currently 1.1 billion and increasing at
an annual rate of 2%
Fastest growing economy in the world
Shift from ruralization to urbanization
Increasing number of hospitals in Tier-II and Tier-III cities is the
major driver for private sector growth
Insurance penetration into both Private & Government sector
Limited resources of the govt. has led to private players entering
Rise in income, today at least 50 million Indians can afford
to buy Western medicines, a market only 20% smaller than that of
8. Disease Assessment and Potential
• Chronic degenerative diseases & Lifestyle diseases
• While ailments such as poliomyelitis, leprosy, will soon be eliminated
• Communicable diseases such as dengue fever, viral hepatitis,
tuberculosis, malaria, and pneumonia, have developed a stubborn
resistance to drugs.
• Sub-standard housing, inadequate water, sewage and waste
management systems & a crumbling public health infrastructure
9. Contd . . .
Indians live more affluent lives and adopt unhealthy western diets, high
in fat and sugar the country is experiencing a healthcare crisis of
The Diabetes Capital of the World
Heart Disease capital of the World
Cancer Capital of the World
Healthcare a bottomless opportunity !
10. The Healthcare divide in India
to healthcare, there are two India’s !!!
1. A country that provides high-quality medical care to middle-class
Indians and medical tourists
2. 65% of the population live in rural sector who have limited or no
access to quality healthcare care.
Today only 25% of the Indian population has access to allopathic
medicine, which is practiced mainly in urban areas, where 2/3 of India’s
hospitals are located. Many rural poor rely on alternative forms of
11. Healthcare Infrastructure Requirement
Enormous private capital is required to enhance India’s healthcare
India has approximately 860 beds / million population. One-fifth of
the world average, which is 3,960, according to WHO
An estimated 450,000 additional hospital beds required at an
investment estimated at $30 billion
Government to fund only 15-20% of the total, hence providing
opportunity for private players to fill the gap
12. Healthcare - An entrepreneurial venture
New entrepreneurs setting up hospitals
New funding opportunities
- Private equity participation
- Venture Capitalists
Expansion of footprints by existing players like; Apollo Hospitals,
Fortis, Narayana, HCG .
New formatted chains like Apollo Clinics, Day Care, Diagnostics,
Rehab & Dental
By 2020, the Indian healthcare industry is estimated to be worth
US$ 250 billion.
13. Top areas for Healthcare Private Equity Investment
Super Specialty / Multi specialty Hospital set up
Single specialty based Hospitals
Ambulatory surgery center chains
Diagnostics, Dental, Rehab chains
Hospital information technology & health systems
15. Government as the Healthcare Marketer
Some of the Government health campaigns that made strong impact on the
•A very popular slogan “ Hum do Humare Do”
16. Why only a boy? Are these not girls For a healthy family, wait three years
before your second child
17. Need marketing for healthcare....
1. All Hospital ventures are capital intensive
- Technology & Infrastructure
- Human Infrastructure
2. Breakeven are longer than other sectors
3. Technology out paces Breakeven
- Cost of technology
- Technology getting obsolete
4. Top line, bottom line, EBIDTA, Net profits , P&L, Balance
sheet , Market Capitalisation , Stock prices all have
18. Do we need marketing for healthcare ?
Yes. . .
- Create a critical mass for consumption
- Generate a strong need for hospital related services
- Match aggressive competition
- Penetrate insurance products & services
- Market destinations for healthcare in global markets
- Make hospital venture a profitable Investment.
19. What does healthcare marketing do. .
Hospital mktng Its about
connects creating a
physicians & experience
The doctor is
the biggest Compassionate
factor for Healthcare healthcare is
retention of Market what hospital
customer mktg does
Healthcare Hospital mktg
mktng wins pts also has a TG,
to grow its Needs &
revenue & mission
20. Healthcare Marketing is Unique
• Some resistance to change as it is relatively new
• No real way to measure return on investment
• Legal barriers
• Propensity to spend is extremely less..
• Most decisions are not made by the end user
• Price most often is not a factor
• Product information difficult to convey
• Provider differences are unclear
21. Dynamics in healthcare. . .
• Unorganized sector to Organized Sector
• Curative approach to Preventive approach
• Out of pocket payments to Insurance or employer paid
• Doctors concentrated in urban areas to increased competition in
• Break even from 7 yrs to 3yrs .
• Lack of system & accountability to increased emphasis on systems
• No quality check on service to Consumers demand quality
Price 7 th P of Marketing
The Indian healthcare sector can be viewed as a glass half empty or a
For companies that view the Indian
glass half full..
healthcare sector as a glass half full, the potential is
Hence, Healthcare marketing is a necessity !!!