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Dr. Pradeep Kumar Pillai, MBA, MA, PhD Executive Manager Al Rawabi Trading (LIFCO Group) Dubai, UAE.

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Presentation on theme: "Dr. Pradeep Kumar Pillai, MBA, MA, PhD Executive Manager Al Rawabi Trading (LIFCO Group) Dubai, UAE."— Presentation transcript:

1 Dr. Pradeep Kumar Pillai, MBA, MA, PhD Executive Manager Al Rawabi Trading (LIFCO Group) Dubai, UAE

2 National Conference on “ INDIAN TOURISM – CHALLENGES & OPPORTUNITIES” (6 th & 7 th October 2012) Influence of Branding in Medical Tourism (With Special Reference to India) Pradeep Kumar Pillai

3 Medical Tourism (Healthcare Tourism) “Where people travel often – long distances to overseas destinations to obtain medical, dental, and surgical care while simultaneously being holidaymakers, in a more conventional sense.” (Connel 2006). The medical tourism sector which is growing at a rate of 20%-30%, is all set to become a $100 billion sector by 2012 ( New York Daily Times). The latest published data on US medical tourism comes from the OECD in the late 2011 report which states that Americans spent $600 million in medical care outside the US in 2009. The growth was around 13% from 2004 to 2009 The top 10 medical travel destinations are Brazil, Costa Rica, Hungary, India, Malaysia, Mexico, Singapore, South Korea, Thailand, and Turkey. Reasons for Growth of Medical Tourism: –Long waiting time ( Europe) –High increase in cost (USA) –Affordable international air travel –Affordable surgeries –Fulfilling personal ambitions - Ayurveda, Yoga, Meditation etc.

4 Medical Tourism - India India, the undisputed economic powerhouse has been growing at a rapid momentum. Even at this rate of development also, major part of the market is untapped. It has been getting serious attention of people from various parts of the globe as formidable medical travel hub. In India, revenue from healthcare sector account for 5.2% of the GDP and it employs over 4 million people now. By end of 2012, it can reach 6.5% to 7.2% of the GDP (CII-McKinsey “ Health in India”) Medical services in India are particularly affordable at a price as low as 20% of that of US. At the same time, alternate therapies such as yoga, ayurveda, aromatherapy and acupuncture is available in the country. The country also has got a rich tradition of cultural heritage which has been popular for tourist attraction. These factors provide unique core competency for India to be a strategic player in healthcare tourism globally. Market size and growing consumer propensity can be cited as the major factors that generate high level of expectation about the Indian market.

5 Cost Comparison - Country wise MEDICAL TREATMENT BUDGETS ( IN USD) TREATMENTUS/UKTHAILANDINDIA Bone Marrow Transplant250,00062,50030,000 Liver Transplant300,00075,00040,000 Open Heat Surgery150,00014,2507,000 HP Replacement17,0007,0004,500 Knee Surgery20,000-24,0007,0004,500 Cataract2,000-5000 Data from various sources

6 Leading Healthcare Providers 1. Apollo Hospitals 2.All India Institute of Medical Science, New Delhi 3.Aravind Eye Hospitals, Madurai 4.B.M.Biral Heart Research Centre, Kolkata 5.Beach Candy Hospital, Mumbai 6.Escorts Heart Institute and Research Center Ltd, New Delhi 7.Fortis Hospital, Chandigarh 8.Jaslok Hospital, Mumbai 9.Mallya Hospital, Bangalore 10.Narayana Hrudayalaya, Bangalore 11.Sankara Netralaya, Chennai 12.Tata Memorial Hospital, Mumbai 13.Wockhardt Chain Hospitals

7 Branding & Strategies of Healthcare Providers A brand is how we identify products, service, people, places etc. However, a brand is more than just a logo or identify, it represents a symbolic construct created within the minds of people that consists of all the information, expectation and personality associated with a product or service. This is true in the case of medical tourism also. The people whom the healthcare service provider treats are “patient ambassadors” who bring “repeat business” from their friends, relatives or known people. So an organization need to develop a strategy for branding their service in the healthcare market. Porter’s Generic Strategy of Differentiation and Low Cost can be applied by many of the healthcare providers by combining country specific factors of India coupled with the low cost of medical treatment. The tourist destinations in India can be the platform for differentiation and medical expenses can be focused for low cost. All the three stages of consumer buying behavior such as Pre-Purchase, Purchase and Post-Purchase should be given utmost importance so that the brand get reinforced in the minds of the target customers as well as the existing customers.

8 Promotional Initiatives The major promotional activities centers around institutional framework to promote the brand globally. Various organizations are formed, such as: 1.Medical Tourism Association (MTA). 2.Joint Commission International (JCI) 3.National Accreditation Board for Hospitals & Healthcare Providers (NABH) 4.Confederation of Indian Industry (CII) 5.Initiatives by Ministry of Tourism in India  “Incredible India”, the campaign by Ministry of Tourism in India aims at positioning the country as a destination for tourism which is used by the healthcare providers to attract customers around the world.

9 How Branding Help the Hospitals? Strong brands control its own existence  If the brand is good and branding is effective, it ensures customers’ loyalty.  Many of the leading health care providers in India got a long brand existence. E.g.. Apollo, Escorts, AIIMS etc. Positioning  Ensures positioning between physicians, staff and customers. It guarantees consistent communication between the organization and the different stakeholders. Social Media  Since social media is widely used, online reviews have helped in boosting the brand name of many of the leading healthcare providers (BW Sept 2012). Total Quality Initiatives  Internal branding helps hospitals to implement TQM principles.

10 Barriers in Branding Taxonomy Risk Mitigation in Medical Tourism Brand Awareness Industry Cannibalism Safety and Hygiene Quality Control Accreditation Provision for follow up care Communication/ Language Insurance Policy Modern Equipments and Technology

11 Steps To Be Taken F- Factor Knowing more about cultural background Develop referral system among doctors internationally Warranty Promote new tourism products and add it with health care tourism. Do your home work : –What is your vision ? –What is your position in the market ? –What brand are you building ?

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