Consultation Diagnostics 24 Hrs Pharmacy Value Added Services

Preventive Healthcare

Presented by : Group 9
Ambreen Fatma (91066)
Anmol Sukhwal (91072)
Deepak Negi (91077)
Harsh Lakhotia (91082)
Nitika Sinha (91097)
 Apollo Hospitals
• Apollo Hospital Enterprise Limited was started by
Dr. Prathap C Reddy in the 80’s
• Apollo group has set up hospitals in Chennai,
Hyderabad, Madurai, New Delhi, Ahmedabad,
Kolkata, Pune, Bangalore etc
• Need for preventive healthcare was emphasized
in order to reduce the cost of providing
healthcare services

 Apollo Health & Lifestyle
Limited
• Apollo Health & Lifestyle Limited (AHLL) was
incorporated in the year 2000
• AHLL’s vision is to provide quality primary
healthcare as an inexpensive proposition to
people
• AHLL wanted to create a nationwide chain of 250
franchise based clinic by the end of 5 years but
managed to create only 50 clinics by the year
2006
• Focused on 3 propositions:
 ambience, convenience & value for money
pricing.
 COMPETITIVE ANALYSIS
Private hospitals:

Primary care centers:


• Max healthcare : • VLCC: beauty &

Primary to healthcare service
secondary provider

• Fortis: Acquire • MV diabetes clinic:

Escorts In southern India,

for diabetes.
• Wockhardt
hospitals: Started • Throcare: diagnostic
service related to
as a pharmacy co.
thyroid.
• Strategy of super
• Dr. Batra’s clinic:
specialty hosp
Offers super


specialty
 Issu e s
W h e th e r o r n o t th e firm sh o u ld
 co n tin u e w ith th e fra n ch ise m o d e lo r

 se t u p a n o w n e d m o d e l

W h e th e r o r n o t to la u n ch th e clin ics


u n d e r a n e w b ra n d o r to exp lo it th e
b ra n d im a g e o f A p o llo h o sp ita ls fo r
th e A p o llo clin ics

Decision of Franchising
Advantages


• One of the best ways to enter a market

• Provides scope for rapid expansion

• Most commonly used in service distribution and

retailing

• No upfront investment required from the

company

• More control on brand value and process

 Problems with the Franchisee
 Unable to obtain license for pharmacy

 Delaying monthly submission of payments

 Collecting money without registering patients

 Doctors complained of poor patients flow

 No royalty payment

 Problems faced by Franchisee

• Lack of support provided by Apollo

– Quality Doctors
– Customer Perception
• Not fulfilling the promises
• Insufficient revenue generations



 Challenges
• To increase the number of clinics
• Competition From Other Major Players
• Financial Challenge
– Inadequate revenue being generated
– Small turnover of 5 crores with only marginal
profits
• Difficult to influence customer perception
• Franchisee Issues
– Franchisors are skeptical about renewing the
franchisee contracts
– Delay in implementation by franchisees is
leading to blockage of territory
– Conversion rates of interested applicants is low
Brand
Brand
Perception
PerceptionofofApollo
Apollo Hospital
Hospitaland
and
Apollo
Apollo
Clinic
Clinic
 Service Pricing
The initial communication strategy
for The Apollo Clinic:
Value-for-money pricing

• Study on the best existing

service providers in that
region
• Tariff structure is then
benchmarked against these
service providers
• Offers its services at a low
premium as possible
• Follows value for money pricing
strategy
• Low price was their main target.
 Causes behind Service
Switching
• Pricing
– Perceives as expensive
• Competition
– Found better service providers
• Involuntary switching
– Customer moved

 Tangibility Spectrum
Salt
 Soft Drinks
 Detergents
 Automobiles
 Cosmetics
 Fast - food
Outlets
 In ta n g ib le
D o m in a n t

Ta n g ib le 
D o m in a n t Fast - food 
Outlets
Healthcare
Services
Airlines 
Investmen
t 
Managemen
t Consulting 
Teaching
14
 How Product Attributes Affect
Ease of Evaluation

Most Goods Most Services

Easy Difficult
to evaluate to evaluate

Medical diagnosis
Clothing

Chair

Foods

Haircut

Education
Restaurant meals

Legal services
Motor vehicle

Computer repair

Complex surgery
Entertainment
Lawn fertilizer

High in search High in experience High in credence

attributes attributes attributes

Source: Adapted from Zeithaml

1 : Customer gap :
qQuality doctors not available

2 : Provider gap 1 :
having the proper service quality design and standa
qAbsence of customer driven standards
qPoor service quality standards
Senior doctors not available in Apollo clinics
Franchisees did not belong to a healthcare person

3 : Provider gap 2 :
delivering to service design and standard
qDifficulty controlling quality with consistency
All franchisees provided different services
Issue of quality doctors

Gap 4 : Provider gap 3 :
Not matching performance to promises
qLack of integrated service marketing
communication
Absence of strong marketing program.
It was expected that Apollo’s name itself will
pull in patients.

qAbsence of customer expectation management

Quality doctors not available

qOverpromising
Made lofty promises of investing millions in the
brand
Apollo has not kept many promises, which it made
to them, while signing them on

qNo uniformity as each franchisee left to fend

for himself became increasingly desperate for
revenue.


 Zone Of Tolerance

ADEQUATE DESIRED

ZOT

Desired service
• For Apollo adequate service level is high
Zone of tolerance
• Zone of Tolerance is narrow
Adequate service
 Consumer’s Judgment of Service
Quality

RELIABILIT RESPONSIVE ASSURA EMPATHYTANGIBL
• Y NESS NCE ES
Health Appointment Easily Knowledg Acknowled Waiting
Care kept on accessible, no eable, ge patient room,
servic schedule, waiting time, skilled as a person, equipments
e diagnoses willingness to doctors listen well, , operation
prove listen and nurses,has theatre
accurate reputed patience
doctors
 ServiceScape For Apollo

A p o llo is a n in te rp e rso n a lse rvice s

typ e
S e rvice sca p e co m p lexity o f A p o llo is
e la b o ra te

Logo Of Apollo Clinic

A ttra ctive b u ild in g

N ice a m b ie n ce

High Quality services at

reasonable price
State Of The Art Medical
Equipments & patient
rooms
Proficient Doctors

Treatment with care

 Hard and Soft Standards
Hard Standards


• Waiting time
• Service delivery time
• Responsiveness
• No. of patients served per day


Soft Standards


• Courteous
• Ambience
• Resolution of problems
• Staff Proficiency
•
 What Customers Expect:
Getting to Actionable Steps

Requirements Diagnostici
Satisfacti Value : ty :
on Solution Abstract
General Low
Relationsh Provider concepts
ip
Dig Reliability
deeper Empathy Dimension
Assurance s
Tangibles
Dig
Responsiveness Price my
Understand
deeper problem Attributes
Proper Diagnosis

Dig Treatment on time

deeper Faster recovery Behaviors
Post service relationship and
actions

Concrete
High
27
 Customer’s Role

• Customer’s role in healthcare sector

are:
– Contributor to service quality and
satisfaction
• Active participation of patients
required
• Customer’s Direct contribution to
the:
– Quality of outcome
– Satisfaction of customer
 Service Production
Continuum
Customer production Joint production Firm production

1 2 3 4 5 6

Healthcare services

Level of Customer Participation

High level of customer participation
 Define Customer’s Jobs

ecruit , Educate and Reward Customers

Effective Customer Particip

Manage the Customer Mix

 Define Customer’s Job
• Provide accurate information about symptoms
and health Background
• Answer detailed questions
• Help to decide on a course of treatment
• Carry out the prescribed regimen leading to
recovery
 Educate Customer
• Provide patient handbooks giving details
about the
– Preparations required for arrival
– Procedures
– Visiting hours
– Billing procedures and medical insurance
–
 Manage Customer Mix
• Customers are expected to share time,
space, or service tools with each other
–
 Recommendations
• Give franchisee to people related to
healthcare industry

• Help the franchisee in the initial stage

• Come up with online consultation

• Should advertise to educate the customer

• Focus more on quality in comparison to

ambience

• Enhance its commitments

 Recommendations
• Proper market analysis before opening clinic
• Realistic targets
• Regular health check up campaigns
(corporate tie ups)
•