Case Study Sample In Marketing Management

Introduction

The research paper has to investigate present marketing functions and systems of Sheikh Khalifa Medical City, along with different stakeholder management. In order to access market opportunities and issues in UAE, this report has to conduct PESTLE analysis of UAE, Porter’s five forces, and SWOT analysis for SKMC. Target market analyses have been introduced to access demographic views, ethnicity, locations, psychographic and geographic approaches of people in UAE. Based on review and measurement of several areas, contingency plan for SKMC has to be developed in this report.

1.    Situation Analysis

  • Customers: It committed the best medical facilities in the world and served advanced flagship institutions for the SEHA healthcare system. Furthermore, management of SKMC has promoted satisfaction based health and wellbeing through suitable awareness and education (Paden et al. 2018). People of Abu Dhabi and other cities UAE have access to the highest quality medical facilities and research-based clinical education for integrated business operation.
  • Competitors: SKMC has several competitors in the hospitality industry. Principal competitors of SKMC are NMC Specialty Hospital Abu Dhabi, Malaffi Compliant HIMS, Cleveland Clinic Abu Dhabi, Amana Healthcare, and American Hospital Dubai. Those organisations have supplied quality medical facilities and advanced technologies for patients.
  • Company: Sheikh Khalifa Medical City serves advanced facilities and medical treatments to patients and people in Abu Dhabi. SKMC has several hospitals and clinics in Abu Dhabi like Acute Care Hospital having 586 beds, 14 Outpatient Speciality Clinics. Besides, SKMC has a blood bank, an emergency care centre, and Behavioural Science Pavilion with 125 beds to deliver effective treatment towards people (ae, 2020). SKMC also has other types of famous hospitals like Abu Dhabi Psychiatric Hospital and Abu Dhabi Rehabilitation Center for adequate medical facilities. Further, Joint Commission International (JCI) has accredited the SKMC for the advanced inauguration of a blood bank.

2.    Market Opportunity and Issues

      I.          PESTEL analysis:

Factors Effect Impact
Political ●       Hospitality tax rate is 5%

●       Stable and productive political environment

●       Four political governing bodies are president, high council, Federal National Council, Local Emirs

Positive
Economical ●       GDP growth rate is 2.60%

●       Total revenue of UAE is AED 1.52 trillion

●       Hospital industry has grown by 60%

Positive
Socio-cultural ●       Total population of UAE is 9.4 million

●       1.5 per 1000 people

●       Average age of 30.3 years

●       People have concerned about high standard health care

Positive
Technological ●       Technological innovation and growth rate is 33.5%

●       13.5% of GDP of UAE has invested into AI adaptation

●       IoT and AT technologies have used in operation and treatment

Positive
Environmental ●       Federal Law Number 23 of 1999

●       Federal Law Number 24 of 1999(ecolex.org, 2020)              

Negative
Legal ●       Executive Council Resolution No 48 of 2014

●       Company Act 2015

●       UAE Civil Procedures Law of Federal Law No.5 of 1992

●       Federal Law Number 10 of 2008

Negative

Table 1: PESTEL analysis of UAE

Based on the above table, it has seen that except environmental and legal factors of PESTEL analysis. The tax rate for hospitality business is only 5%, and growth rate of technologies have significantly influenced present business operations. Economical and Socio-cultural factors have regulated the growth rate of the business environment in challenging business markets (Mataruna-Dos-Santos et al. 2018). Upgradation and installation of advanced IoT and AI technologies in hospital equipment development to use quality services to people can influence the marketing tradition of SKMC. On the other hand, every hospitality organisation should follow environmental and legal legislation to control both pollutants and quality of services. Federals laws have been introduced in the hospitality industry

    II.          SWOT analysis

SWOT analysis of SKMC regarding marketing management and strategies selections have analysed in the below table. It will assist marketing managers to control business operations and growth rate of organisation in challenging business markets.

Strengths Weaknesses
●       SKMC has highest number of hospitals and spaces for hospitals

●       Collaboration with Skidmore, Owings & Merrill LLP (SOM), ICME, and Tilke

●       Large number of beds and operational types of machinery (seha.ae, 2020)

●       The online information may not match with provided services

●       Health ministry of UAE does not order hospitals to deliver disclosure

●       Management and staff of SKMC wanted to collect more amount for treatment

Opportunities Threats
●       Facilities services by experienced and qualified doctors and lab-technician

●       Strategic positions and large space areas in Abu Dhabi

●       CEO and managers have focused on installation of advanced IoT and AI based technologies

●       Record and review information about treatment results

●       Competition and criticism have continuously increased in last few years

●       Death of patients have significantly increased during operations

●       Critical cases and severe operational cases have accepted by SKMC

●       Engagement of international stakeholders reduce transparency of operations

Table 2: SWOT analysis

  III.          Porter’s five forces

Porter’s five forces analysis have a significant role in evaluation of effective marketing strategies to improve various types of hospitality operations. Porter’s five forces analysis for SKMC have mentioned below points.

  • Competitors Threats: The competitors’ threats are one biggest rivalry for healthcare organisations in the UAE. Present competitors of SKMC are Cleveland Clinic Abu Dhabi, Amana Healthcare, and American Hospital Dubai. Hence, evaluation of advanced technologies and facilities at the cheapest price rate to patients is essential in the hospitality sector (Balogun, and Ogunnaike, 2017). At the same time, research and innovation needed to deliver treatment to complicated patients.
  • Substitute of services and product: It has seen that delivering same quality services like operations and healthcare treatment for patients at low price rate can substitute an organisation. However, developing the same type of medicine, including additional complex structures, can manage the belief of patients. Thus, management of SKMC should review several options to substitute services and products.
  • New entrants’ threats: This force is not applicable for the SKMC as the organisation has a prominent brand image in Abu Dhabi in the healthcare industry. At the same research and development, process of SKMC is one of the best in UAE.
  • Bargaining-of-buyers: In the case of the hospitality industry, patients’ intentions regarding quality of medicine and services have played significant roles. Hence, delivery quality facilities and advanced service should be delivered by different hospitals of SKMC (Preston et al. 2018).
  • Suppliers’ power: Suppliers power is extensive in the hospitality industry as most of the treatment and operations have depended on resources supplied by suppliers. Hence, collaboration with prominent and reliable suppliers can improve the quality of services.

3.    Key Marketing Objectives

Management and staff of SKMC have followed several key marketing objectives to influence brand image and revenue generation from challenging and competitive business markets. The marketing objectives of SKMC are as follows.

  • Increase number of beds and hospitals for people of Abu Dhabi community
  • Transform and develop quality healthcare system to supply highest standard medical services
  • Integrate bonding among all hospitals and blood bank to balance quality and safety standards (Infeldet al. 2019)
  • Improve values for transparent and quality services for medical treatments
  • Improve sustainable development within the city to supply compassionate and patient-oriented services
  • Organise superior clinical operations and high-quality comforts to patients through introducing IoT and AI technologies (designbuild-network.com, 2020)
  • Attract significant number of stakeholders and investors for the SEHA to gain more revenue

4.    Marketing Strategy

Due to the presence of high competition in the hospitality industry, the profit margin is lower than in other industries. Hence, development of brand image and customer satisfaction are essential in competitive business. Managers and director of SKMC should follow below strategies to manage market development.

  • Creativity: Creativity is the best marketing strategies and techniques for engagement of stakeholders. It has been seen that the Hospital sector has concerns about innovation of new technologies and medical equipment (Mardiah, and Wahyu, 2019). Adaptation and evolution of new techniques for new diseases are essential in medical organisation.
  • Loyalty: Loyalty about price rate and provide services to people regarding quality treatment can improve efficiency of brand image. Rate and performance of customer loyalty based services can increase the attraction of large numbers of consumers.
  • Technology: In the case of the professional hospitality market, IoT and AI-based medical testing and machinery can change traditional business. Technologies have changed traditional treatment and operations to ensure both safety and security of patients (cloud, 2020). Innovation of 3D technologies and robotic surgery, Machine learning technologies, and immunotherapy medicine can influence brand value of an SKMC.

Figure 1: Marketing strategies

(Source: Ikechi, Chinenye, and Chiyem, 2017)

  • Digital and social media marketing: Digital technologies and social media advertising can engage 41% of patients or customers of an organisation. Hence, collaboration with digital applications and social media pages can increase patients’ interests.
  • Internal marketing: Internal marketing is another marketing option for Hospital organisation to influence employees regarding promotion of medical services and treatments. Employees can tell friends, family members, and neighbours regarding the quality of services to people.

5.    Target Market

Healthcare and medical marketing have depended on targeting techniques and principles. While targeting patients, SKMC should focus on the areas below to attract a large area community.

Demographic of customers: Precise and careful identification of demographic culture of customers and approaches can increase brand image. Management of SKMC should review and analyse audiences such as culture. At the same time, the SKMC has targets higher income and affordable customers for operation or treatment of critical cases to gain more revenue. Educational background, annual family income, and occupations should review to access information regarding demographic context of patients (Madsen, 2017). Economic barriers and challenges of patients regarding treatment of critical cases should analyse to take adequate actions about compensation.

Age group: It has seen that medical organisations have focused on old and child ages patients due to the presence of critical cases. However, targeting all age’s patients can improve brand image.

Ethnicity: UAE is Islamic country in the Middle East; however, the number of foreign people is more than the total population. Hence, targeting people of different backgrounds through maintaining ethical cultures should use in business market (screen.cloud, 2020). In order to reduce conflicts with patients, doctors and staff of SKMC should use polite and perfect behaviour for patients. Moreover, management and board members have to use guidelines and policies.

Location: Nowadays, SKMC has delivered treatment to patients of the international community regarding existing facility services. Management can target people of Middle East countries to access new international patients to gain standard revenue.

Geographical conditions: Geographical segmentation is one of the advanced targeting techniques to gain the interests of different communities (Wondoh, Grossmann, and Stumptner, 2017). Hence, evaluation of interests of people from different geographical areas can deliver relevant opportunities to improve revenue generations. Evaluation of centralising market segmentation based on geographical conditions in UAE can control functions of treatment.

Psychographics: Psychological and physical barriers of patients should review to define adequate service required for the patients to gain benefits.

6.    Marketing Mix

Application of 4P marketing matrix can increase market management and revenue generation from competitive business markets. Application of 4 elements of market can increase benefits to explore patient’s experience.

  • Product: Development adequate services and medical facilities at low costs to customers can increase market share as well as business in a competitive business market. Boston Consulting group’s product portfolio matrix is one of the standard product development matrices. The first step for a manager is to access high profitable functional and service areas such as operations to invest a significant amount. High growth areas are another option for potential market development (Ikechi, Chinenye, and Chiyem, 2017). On the other hand, focusing on those areas, which can deliver revenue to the organisation, can improve products and service development. Functional areas that have less growth rate, as well as less possibility for market development, can refer to dogs.
   

Market share improvement

 

 

 

Business growth rate

  High Low
 

High

Star

Expansion of beds and medical facilities for patients

Questions Mark

Resourcing new medical equipment and medicine

 

Low

Cash Cow

Invest in innovation and research to increase market share

Dogs

Review and improve lowest growth rate areas

Table 3: BCG matrix 

(Source: Madsen, 2017)

  • Place: It has seen that the present location of SKMC is prominent for development and enhancement of new hospitals for people. Availability of standard transportation such as roads and flights facilities can provide opportunities for managing market competitions. Clean and infrastructure facilities have to be excellent in a hospital or healthcare organisation to access the interests of people. Furthermore, expansion for 24 hours of services to people at Abu Dhabi can control risks and challenges about the life of patients.
  • Price: Healthcare and medical organisation is one of the most significant parts in every country to be concerned about patients.
  1. Penetrating: In order to attract people, covering different types of insurance and med-claim should be followed. Penetration can be done through enhancement of quality services at lower costs (Charlton, Murray, and Kumar, 2018).
  2. Competitive: Providing offers for different operations and critical treatments at lower price rate is another option to improve the market.Delivering free health check-ups and introducing awareness programs may influence the intention of patients (net, 2020).
  3. Skimming: It is another option for pricing strategies to take high price rate for critical operations and risky health care treatment. Management of SKMC can segment functions based on demands and uniqueness in a competitive market
  • Promotion: It is an excellent aspect of the 4P marketing mix for healthcare organisations to overlook the competitive market. SKMC can collaborate with media channels to make advertisements for existing and upcoming healthcare facilities for patients. Moreover, promotion of services through organisational employees and social media channels are other options for SKMC. At the same time, Push-Pull strategy can be used in the promotional process (cloud, 2020). Organising shows and events can attract new suppliers and customers. Blogging and advertising can be used as pull tactics to increase demands of consumers.

 

 

7.    Marketing Metrics – Review and Control

Items/ Categories Illustration or metrics
Plan During development of marketing, metrics can supply ideas about different steps that can be used for reviewing the success of an organisation. Plan has been used to improve the satisfaction of customers and the performance of staff. Mortality and patients’ mortality rate should review according to the plan.
Objectives   ●       To access average stay and services quality provided by staff

●       Number of incidents and patients satisfaction analyses through centralised reporting software

●       Physical performance and revenue generation rate should investigate to change decision

●       Patient mortality rate, operating margin, and asset utilisation rate can review for controlling

Strategy Measurement and performance analysis of different activities of SKMC should review. Performance and Strategic missions should review to mitigate objectives. Scope and opportunities investigations can supply standard flexible business operations (designbuild-network.com, 2020). Application feasibility study and review can supply benefits to management.
Measurement/KPIs Key performance indicators can be used to review existing performance and reliability of objectives to increase business operation. Managers can use dashboard and graphs for key performance indicators.

Table 4: Marketing metrics

8.    Contingency Plan

The contingency plan can be used to revise and improve outcomes from present hospitality operations. Application of advanced and relevant contingency plan can increase risks and interrupting elements of SKMC for advanced market development system. Hence, the manager can follow the steps below.

  1. Review and analysis of potential risks and problems exist during hospital operations
  2. Analyse probable impacts and threats to prepare adequate plan
  3. Activate and initialisation of plan to control main problems (designbuild-network.com, 2020)
  4. Finally review effectiveness of contingency plan to control workloads and challenges

Figure 2: Contingency plan

Backups plan can be used to review and address challenges of marketing metrics through centralised data monitoring software. Management of SKMC can introduce alternative services for different hospitals, clinical centres, and blood banks to manage impacts on organisation (gerardcambon.net, 2020). Furthermore, evaluation of dashboard and alternative marketing metrics software can address planning and reviewing. Communicating with patients, staff, and suppliers can improve integrated market development plans.

Conclusion

Here, research paper has analysed SWOT, PESTEL, and Porter’s five forces to review marketing management functions of SKMC. Further, target market strategies and marketing operations have investigated for management of SKMC. Moreover, 4P Marketing mix has utilised to access brand promotional strategy in the competitive hospitality industry. At the same time, different market review tools and techniques have been introduced in the below context. 

References

Journals 

Balogun, B. and Ogunnaike, O.O., 2017. Healthcare Organisations in a global marketplace: a systematic Review of the literature on healthcare marketing. Journal of Marketing Management and Consumer Behavior1(5), pp.11-19.

Chaber, A.L. and Saegerman, C., 2017. Biosecurity measures applied in the United Arab Emirates–a comparative study between livestock and wildlife sectors. Transboundary and emerging diseases64(4), pp.1184-1190.

Charlton, K., Murray, C.M. and Kumar, S., 2018. Getting help quickly: older people and community worker perspectives of contingency planning for falls management. Disability and rehabilitation40(2), pp.159-167.

Edwards, G. and Seda, P., 2016. Empowering midwives in the United Arab Emirates. MIDIRS Midwifery Digest26(3), p.387.

Ikechi, A., Chinenye, E.P. and Chiyem, O., 2017. Marketing Mix Concept: Blending the Variables to Suit the Contemporary Marketers. International Academic Journal of Management and Marketing9(1), pp.55-65.

Infeld, M., Bell, A., Marlin, C., Waterhouse, S., Uliassi, N. and Fugh‐Berman, A., 2019. Continuing Medical Education and the Marketing of Fentanyl for Breakthrough Pain: Marketing Messages in an Industry‐Funded CME Module on Breakthrough Pain. World Medical & Health Policy11(1), pp.43-58.

Madsen, D.O., 2017. Not dead yet: the rise, fall and persistence of the BCG Matrix. Problems and Perspectives in Management15(1), pp.19-34.

Mardiah, M. and Wahyu, S., 2019. THE ROLE OF HOSPITAL MARKETING MIX TO THE SELECTION OF THE HOSPITAL CONSUMER. In Proceedings of the International Conference on Applied Science and Health (No. 4, pp. 1065-1071).

Mataruna-Dos-Santos, L.J., Khan, M.S., Ahmed, M.A.H.M.S. and Al Shibini, A., 2018. Contemporary scenario of Muslim women and sport in the United Arab Emirates: Pathways to the vision 2021. Olimpianos-Journal of Olympic Studies2(2), pp.449-474.

Paden, C.R., Yusof, M.F.B.M., Al Hammadi, Z.M., Queen, K., Tao, Y., Eltahir, Y.M., Elsayed, E.A., Marzoug, B.A., Bensalah, O.K.A., Khalafalla, A.I. and Al Mulla, M., 2018. Zoonotic origin and transmission of Middle East respiratory syndrome coronavirus in the UAE. Zoonoses and public health65(3), pp.322-333.

Preston, T., Guess, W., Hopkins, K., Harding, J. and Sarofim, S., 2018. Marketing’s Influence on Consumer Health, Healthcare Professionals, and the Healthcare Industry. Back to the Future: Revisiting the Foundations of Marketing, p.269.

Wondoh, J., Grossmann, G. and Stumptner, M., 2017, October. Contingency management for event-driven business processes. In OTM Confederated International Conferences” On the Move to Meaningful Internet Systems” (pp. 314-333). Springer, Cham.

Websites

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ecolex.org (2020), protection-and-development-of-marine-resources-federal-law-no-23-of-1999, viewed on 20th February 2020, https://www.ecolex.org/details/legislation/protection-and-development-of-marine-resources-federal-law-no-23-of-1999-lex-faoc036695/

gerardcambon.net (2020), viewed on 20th February 2020, <https://gerardcambon.net/porters-five-forces-model-analysis-of-healthcare-sector/>

screen.cloud (2020), marketing-strategies-healthcare, viewed on 20th February 2020, <https://screen.cloud/blog/marketing-strategies-healthcare>

seha.ae (2020), about us, viewed on 20th February 2020, <https://www.seha.ae/SKMC/English/aboutus/Pages/Formation-of-SKMC.aspx>