1. Asian Health Inc.
( go global )
A presentation by Dr. Ritesh Malik for
London School of Economics MG-101

2. SECTION 1
PROFILE OF THE MARKET
AREA AND COMPANY
CHOSEN

3. PROFILE
1. Company : Asian Health Inc.
2. Industry : international healthcare
3. Demographic area : India as well as caters to the health
needs of the world
4. Operations :
• 2004 : Asian Hospital , a 500 bedded corporate hospital
opened in New Delhi to cater the increasing demands of
specialized care for the people of India .
• 2008 : acquisition of 26% stake in the Indian Pharmaceutical
giant Star pharma ( now Asian Pharma Inc. ) becoming the
largest stake holder of the firm .
• 2010 : in april 2010 the board decided to launch a medical
tourism company seeing the surplus international demand
for medical tourism .

4. Profile ( cont. )
5. Board members –
The company is run by a group of 6 people who
constitute the private board of the company .
6. Vision : the vision of the every employee from
the peon to the chairman of the company is to
provide state of art facilities at a reasonable cost
.
7. Logo :
8. Brand statement : go global

5. Growth Forecast
• It is estimated by MTA ( medial tourism
association ) that there will be a steap 30 %
annual growth in the medical tourism sector
of India till 2017 . This gives emmence hope
for rapid take over of the relative market
share .
• The cost of a heart bypass surgery in the
United States Of America is 2,00,000 usd .
The same surgery in India cost less than
10,000 usd including the stay at a 5 star hotel
and the return tickets .

6. Overview of the Market Area
1. The developing economies such as Thailand
, Spain , India etc are the market for cheap
healthcare .
2. It has become a potential industry for more
than 50 nations grossing more than a billion
USD $ GDP share .
3. More than 2 million Americans travel
annually in search of cheap healthcare as
well as tourism in developing economies .
This tolls to some 10 million people who
travel for health world wide per year .

7. Description of the Market Area
The market area is virgin as the
competition is low and the customers are
craving for quality health care . The basic
motive of Asian Health Inc. is to introduce
this virgin market to high standards of
health and cultures of different countries of
the world at a reasonable price .

8. Attractiveness of the market
The attractiveness of the market lies in the fact
that some 10 % of the cost of healthcare
which is claimed from the patient directly or
from the insurance company is the profit .

9. Characteristics
• Size : 10 b $ usd
• Origin : formal medical tourism was initiated
when the patients from the developing nations
had to go to the developed nations for health
care . This scenario was reversed in the late 19th
century with the corporate attention to the
healthcare sector in the developing countries
because of low real estate costs , low wages and
professional income of the doctors . This led to
the concept of medical tourism .

10. Competition analysis
• The basic competition of the company will be with the
companies like Bumrungrad International corp., med retreat
, world med assist etc. they have a strong reputation in the
market . But still the customer satisfaction needs to be
improved . Thus we still have huge potentials to fill the gap .
• Though our company has risen above the competition level by
not fighting on cost but on quality . Bumrungrad international
is the most profitable hospital in the world ( half the revenues
are from med. Tourism ) .
• Medto go is another medical tourism giant which has
tremendous market share in the medical tourism of America .
• Also the newly opened MEDANTA MEDICITY ( A Dr. Naresh
Trehan Project ) is also a strong competitor for our company .

11. SECTION 2
DESCRIPTION AND JUSTIFICATION
OF TARGET SEGMENTS

12. Customer Segments
1. Existing customers : people with no insurance
, this is the major segment for the need of
medical tourism for the fact that medical
care is very costly in the developed nations .
THESE ARE THE BASIC CUSTOMER BASE OF
THE COMPANY .
2. Emerging customers : these are those
customers who are waiting to adopt the
product by the power of words .

13. Customer segments ( cont. )
3. Potential customers : these are those customers who
undertake high involving surgeries such as cardiac ones which
give high revenue ( and higher profits ) . Paretos principle @)
% of customers will peap 80 % percent of profit .

14. ANALYSIS OF THE 4 P’S
• PRODUCT – high class quality healthcare .
• PLACE – at 16 of the central hubs of the world
. With JCI accredited hospitals
• PRICE – Just 1000 $ USD more than the
competitors. We are working on the intrinsic
factors rather than the extrinsic factors . Thus
quality is our major motive which is not the
centre of focus for our competitors .
• PROMOTION – usage of both traditional as
well as non traditional methods .

15. PROCESS OF MEDICAL TOURISM
Patient calls to the toll
free number or mails
the company
Surgery + post operative Complaint recorded
healthcare + tourism with the past history
Itinery is set and the Within 30 minutes a
patient is contacted by a doctor from india calls
junior advocate for legal and analyzes the
issues condition

16. Economics of the company
1. Headquarters – New Delhi , on the 13th floor of
the Asian Health Inc. hospital a 1,000 sq. ft area
has been alloted for the company operations .
2. Start up finance – a capital of 20 million $ usd is
required to start up the international operations
world wide . With 30 % of the finance alloted to
the marketing of the company .
3. Other offices : we have set 16 offices in different
demographic parts of the world .

17. Offices around the globe
Offices for regional health
Offices for developed economies management
• London • New Delhi
• Bankok
• New York • Spain
• Lisbon
• San Fransisco • Kochi ( kerala )
• Mexico city
• Zurich • Bangalore
• South africa
• Sydney • Egypt
• Dubai
• Toronto

18. SECTION 3 ANALYSIS OF
CONSUMER BEHAVIOUR

19. Psychology of the medical tourist
People usually opt for medical tourism for the
following reasons –
• Low expense ( at a fraction of what is in the
developed economies )
• Tourism
• Regional therapies ( Eg. Bangkok therapy
massage , Lisbon hot water spring treatment
, Indian Ayurveda etc . ) this gives a sense of
rejuvenation to the customers .
• Opportunity to experience the different cultures
of the world .

20. PEST Analysis
Poltical Economic
( national industry more than a bilion ( according to the Mc Kinsey medical
dollar valuation will lead to the growth tourism will gross in the top 10 sectors
of the country ) of the country in near future )
PEST
Social Technological
( increase in employment in the ( will increase the health standards of
country ) the national customers as well )

21. Competitive Advantage
This includes all the adverse effects the customers face
during a normal medical visit . We plan to curb all of
these and have a competitive edge over the other
companies :
 MEDICO LEGAL ISSUES : in case of a medico legal issue
the patient is the centre of troubles due to the fact that
the laws are different from country to country . Thus ,
Asian Health Inc. has a contract with the K Collinwood
and associates for the legal issues ( they are spread
oversees and are specialists in medico legal cases ) .
Before the departure of the patients , a junior advocate
will call them and explain them every detail of the legal
hassles which the patient may apprehend off .

22. Competitive Advantage ( cont. )
 LANGUAGE BARRIER : it is very difficult to converse in
developing countries specially with the lower staff ( who do
not know english very well ) . For this we have recruited
special staff or the international patients who are well
versed in english . And we have a multi lingual person at
each of our hospitals who knows more than 6 languages
fluently .
 QUALITY CARE : most of the medical companies claim of
having quality healthcare facilities but the actual condition
is very different . The intruments are not updated and the
staff is not well trained . For this , have made sure that all
hospitals in our network should be affiliated to the JCI (
joint commission international ) as well as the MTA (
medical tourism association ) . This ensure optimum quality
.

23. Competitive advantage ( cont.)
 POST OPERATIVE CARE : most of the hospitals do not
provide any post operative care . After the operation of
the patient there are specific regulations and diet
precautions which a patient must follow . According to
the international laws the patients should be under
medical assistance ( in an area of 5 km to a hospital )
after 2 days of surgery . This is not followed by the
usual medical tourism company hospitals . ASIAN
HEALTH INC. plans to take care of this in a very
different way . We plan to appoint a male nurse ( on
extra cost ) to patients who need tertiary levels of care
after the operation . This will ensure round the clock
safety of the patient .

24. Competitive Advantage ( cont. )
 Tourism – after the surgery and the post operative
care the patients are ready to experience the native
beauty of the country of visit , most of the medical
companies to reduce their expense and increase their
profit , make plans which do not include the best of the
country . For this we have tied up with the very famous
COX AND KINGS to organize exclusive trips to the most
exotic places of the world . Because we feel that
medical tourism is not just for medical care but also
and opportunity for people to have an exposure to
different cultures . We have even included a free cruise
to the lakshwadeep islands for the travellers to the
delhi hospital for medical care .

25. SWOT Analysis
STRENGHTHS
( Quality focus rather than the
extrinsic cost focus )
WEAKNESS
( Medicolegal implications are
costly )
OPPORTUNITY
( Fast growing sector far
away from saturation )
THREAT
( Increasing competition
and reducing costs for
medical care in the
developed nations )

26. Creative Market Space Entry
1. The company board has decided to rise above the competition and not
to directly collide with other companies with respect to the extrinsic
factors ( COSTS ) .
2. We have decided to charge 1,000 usd more than the normal companies
, but give total quality experience and focus on improvement of the
companies intrinsic factors ( eg. Service delivery ) .
3. We also plan to give patients a key chain after their treatment ( this will
be embeded with all the key reports and data of the clinical history of
the patient ) .
4. At the end of the treatment the patient will be given a card along with a
password . This will allow the patient to access his data of clinical history
any time he goes to any hospital in the world having such kind of a
software .

27. RESEARCH
• Research was conducted by the Medical Tourism Association , which states
that 8 out of 10 people in the united states of america had no issues using
the medical tourism ( it was conducted in the metropolitan cities only ) .
• Thus the idea of medical tourism is acceptable to the majority of people .
• We had a conversation with Dr. Rohit Singh ( Pain super specialist Scranton
Hospital ( Pennsylvania , USA ) . According to him the idea of medical
tourism has deeply penetrated the market of USA .
• We also had a conversation with Dr. Purushottam Lal ( chairman Metro
Hospitals group ) also suggests that 25 % of his hospital sales are
constituted by the medical tourism .

28. SECTION 4
PRODUCT CONCEPT STATEMENT AND
LIFE CYCLE

30. PRODUCT LIFE CYCLE
• Product Life Cycle (PLC) refers to different stages
through which a our service goes in its life time (
apprehensive ) .
• INTRODUCTION PHASE : Asian health inc. will not take
much time to get noticed by the customers due to the
fact that it already has a reputation of quality in the
field of health care and management . Thus the board
members apprehend that due to less competition the
introduction phase of the company will be comfortably
profitable .

31. Growth
• In the growth phase our service starts to pick up
pace in the market .It is now getting deeper in the
market .Its recognition, value, availability etc start
to increase .Moving from introduction to growth
stage can also be taken as the threshold point
where after the product/service starts to make
profit.We believe that our service will have a
longer growth stage as its demand is more and
supply is less .It has a huge potential .Statistics
show the growth rate at which the industry is
growing so it is time to see the other stages.

32. Maturity
• After the growth stage is the maturity stage. It is
every company’s aim to remain at this stage for
as long as possible, so is ours .In this stage, the
product or the service is at its peak. It is
generating maximum revenue and hence
maximum profit. It is densely populated in the
market, it is widely available and it is working at
its maximum potential. There is no further scope
of growth at this or after this stage till the time
some changes or new introduction is done.

33. Decline
• Lastly comes the decline stage. Though no
company wants to be in this stage . It comes
when the technology used, becomes obsolete
and competitors both new and old are out
with better and efficient product/service. In
our case if we do not regularly update the
machines or train the staff we will soon
discover that we are in the decline phase.

34. Result
• We believe that we will again start the trend of
introduction at the maturity stage by introducing
something innovative which has never be seen by
anyone before .It could be vaccination or a new
innovation which was in a along wait .This will
shift our PLC graph from moving to decline stage
to again heading towards the growth stage.
• A strong competitor is one whose PLC remains
above its competitors PLC. We will go for
DEMAND STIMULATION at that stage of the
service cycle .

35. SECTION 5
MARKETING MIX AND
RECOMMENDATIONS

36. MARKETING OPPORTUNITIES
1. Marketing by doctors and insurance companies , this
will be done on commission basis . For every case the
doctors will be getting 2% of the entire cash payment
.
2. Marketing by TRADITIONAL METHODS :
• Newspapers
• Internet
• www.asianworld.co.in ( we plan to start a community
for people who have undergone medical tourism as
well as those who are about to use it . This will act as
information channel . Thus we can promote medical
tourism .

37. TRADITIONAL METHODS
• Brand Virgin Atlantic : we have made VA as are
brand flight . For the transport of our passengers
internationally . This will give us opportunities to
advertise in the flight in the VIRGIN ATLANTIC
magazine as well as brochure distribution .
• Airports : advertisement at the international
airports of NEW YORK , LONDON , DUBAI
, SYDNEY . Terminal 3 of new Delhi airport will be
having a separate guest receiving lounge for all
the medical tourists.

38. NON TRADITIONAL METHODS OF
MARKETING
1. RECYCLE WORLD :
• We plan to carry out a campaign against the use of polybags
in New York , London , DUBAI, Sydney . This will be in
association with the largest non govt. organisation the
GREENPEACE . we plan to manufacture some 10 million
brown bags ( recyclable ) . On every bag we will have a ad of
the company . And on the other side it will be of the
Greenpeace . This will be a program for 4 days . By this we
will get media hype as well as recognition . This will be
carried out by the founders of Greenpeace . At the final day
of the campaign there will be a speech on global
environment conservation at Burj al Arab by Kumi
Naidoo, Executive Director greenpeace .

39. Marketing mix strategy ( cont. )
• TOILET CAMPAIGN : research suggests that a person has
maximum free time in the toilet . So we plan to advertise
heavily in the toilet cabins in the major cities in the world .
• The best marketing will be QUALITY : the more we focus on
the quality the more people will be attracted to us by the
word of mouth , by our regular customers . There is a
concept known as patient salesman , in this we will explain
our patients what all we do and what are the quality
measures which we use to ensure safety and total care of
the patient . Research also suggests that it takes 6 times
more resources an finances to create more customers by
traditional advertisements than by the word of mouth .

40. V*=QR* - C*
• V* - net benefit from consumption of the
service.
• R* - gross benefit .
• Q – probability of successfully evaluating
quality of good .
• C* - cost of service .
• Instead of the cost of service , our company
has planned to focus on the quality of the
good .

41. MARKETING WARFARE STRATEGY
• We plan to avoid the direct collision from the
other competitors on the basis of price , but to
improve our overall quality ( just being a bit
better than our competitors in everything ) .
• We also aim to serve our industry to the
employers who validate a medical insurance to
their employees . As that is very expensive we
plan to give packages to these companies at low
prices so that they can be relieved from the high
budgets of the insurance companies .

42. BCG matrix model
RELATIVE
MARKET
ASIAN MEDICAL SHARE
MARKET PHARMA TOURISM
GROWTH
INC. (QUESTION
RATE
( STAR) MARK )
ASIAN
HOSPITAL
( DOG )
( CASH
COW )

43. SOURCES OF COMPETITIVE
ADVANTAGE FOR ASIAN INC.
THUS WE ARE FOLLOWING THE
DIFFERENTIATION STRATEGY OF Competitive
MICHAEL PORTER advantage
AVOID BE BETTER THAN
COMPETITION THE COMPETITION
FOCUS ON
INTRINSIC FACTORS DIFFERENTIATION
VIRGIN INDUSTRY
RATHER THAN THE ADVANTAGE
EXTRINSIC ONES

44. FINANCIAL CHART
FOR THE FIRST 4
MONTHS OF
ASIAN HEALTH INC.
MONTH NO. OF MONEY PROFIT RMS
BEDS RECOVERE
OCCUPIED D
April 2010 1079 8 million $ 0.4 million 1.6%
$
May 2010 1809 16.8 0.9 million 2.4%
million $ $
June 2010 2550 24.7 1.5 million 2.2%
million $ $
July 2010 3490 30.98 1.9 million 3%
million $ $

45. THE GROWTH PERSPECTIVE OF
THE ASIAN HEALTH INC.
• THE GROWTH PROSPECTIVE OF 2010
2010 • 8 MILLION $ ( USD )
• THE GROWTH PROSPECTIVE OF 2011
2011 • 20 MILLION $ ( USD )
• THE GROWTH PERSPECTIVE OF 2012
2012 • 60 MILLION $ ( USD )

46. APPENDIX
• PHILIP KOTLER ( principles of marketing )
• Dr. Rohit Singh ( pain sp. ) USA
• Dr. Purushottam Lal ( Chief Cardiologist , METRO GROUP )
• Dr. Ravi Malik ( CMO , RADIX hospital )
• Case study on Bumrungrad International Hospital .
• Case study on medical tourism By medtogo .
• The concept of international global travel for health : an interview with Mrs. Suneetha Reddy
( chairman Apollo group ) ( youtube) .
• LAMBDEN STRATEGIC MARKETING
• LSE course slides on moodle
• Class lectures by Vishal Talwar sir ( his guidance helped us a lot to finish the project ) ( BCG
model , plc model )
• Medical tourism survey 2007 by treatmentabroad.com
• Apollo hospital marketing strategy for GLOBAL HEALTHCARE research .
• Artemis hospital marketing strategy research .
• Strategy followed by HOSPITAL CORPORATION OF AMERICA in early 90s for medical tourism .

47. EXECUTIVE SUMMARY
• Medical tourism is a rapidly growing practice of travelling across
international borders for healthcare .
• FACTORS THAT HAVE LED TO AN INCREASED POPULARITY
OF MEDICAL TOURISM :
• - High cost of healthcare in the developed countries because of
the high real estate prices , professional wages and the expense of
medical and surgical equipments .
• - Long waiting time for patients for certain procedures eg.
782936 canadians spend time on medical waiting in 2005 , average
waiting 9.4 weeks .
• - Specially the uninsured people face problems related to the
high cost of medical treatment .
• - Even the people who are insured do not get reimbursement for
certain orthopaedic operations eg . knee replacements

48. Thank you..!
A presentation by Dr. Ritesh Malik
for Internship at London School of
Economics Marketing Project 101