Marketing Plan for Hospital Has Low Demand

Executive Summary

The marketing plan details the various actions that Al-Salit will take into account in the process of introducing a new line of service. Specifically, the firm intends to establish a pediatric wing in order to improve the effectiveness with which it serves its customers. The new wing aims at improving the firm’s competitiveness by increasing the firm’s revenue hence its profitability. Additionally, the firm’s management team expects that the new wing will contribute towards the attainment of its commitment in serving customers. A comprehensive evaluation of the external and internal market environment is conducted by incorporating the PESTLE and the SWOT models. In order to develop sufficient competitiveness, the marketing strategy that the firm will adopt in marketing the new line of operation has been illustrated by outlining the specific service marketing mix strategies that the firm will take into account. The strategies considered include the product, price, place, promotion, process, people, and physical evidence. The financial projections section outlines the firms’ forecast with regard to costs and revenue. Finally, implementation controls that will be critical in ensuring that the project attains the intended objectives are outlined.

Firm description

Al-Salit Hospital is a well-established private hospital that operates in the United Arabs Emirates medical services industry. The hospital was established in 2004 and it has managed to establish itself as one of the best health care providers in the United Arabs Emirates. Currently, the hospital has a 120-bed capacity and is fully equipped with state-of-the-art technology in its Intensive Care Units, the laboratories, and the operation theatres. In the course of its operation, the hospital has integrated a number of service categories, which include impatient services, ambulatory services, and special services. The inpatient services include cardiology, urology, orthopedics, gastroenterology, internal medicine, and general surgery. The ambulatory services offered include outpatient clinics, radiological unit, pharmacy, and emergency department. On the other hand, special units include the intensive care unit, catheterization unit, and chest pain unit.

Despite its commitment towards positioning itself as a fully-fledged hospital, Al-Salit is deficient with regard to some services. For example, the hospital has not incorporated some departments as the pediatric care unit. In order to improve its competitiveness in the health care sector, the firm’s management team appreciates the importance of introducing pediatric care.

Vision and mission statement

Al-Salit hospital intends to develop itself as an organization characterized by deep-rooted health care values that will result in offering the best services to clients. The hospital aims at positioning itself as the best healthcare service provider in a market that is increasingly becoming globalized. In the course of its operation, Al-Salit intends to incorporate an international model of excellence within the healthcare service industry. Additionally, the hospital is committed at becoming a distinctive medical service provider that will attract a large number of public engagements.


Al-Salit’s decision to establish the pediatric wing is motivated by a number of objectives, which include financial and non-financial objectives.

Financial and non-financial objectives

  1. To increase the net profit with a margin of 15% within one year of its introduction
  2. To increase market share with a margin of 10% within one year after launching the pediatric wing
  3. To improve its commitment towards the provision of high quality services to customers, hence increasing the level of patient satisfaction.

Current market situation n

Businesses in various economic sectors are subject to changes in the external business environment. Therefore, it is vital for management teams to analyze the prevailing environment business environment in order to be effective in their strategic management (Berkowitz, 2011). Changes in the external environment are unpredictable and dynamic. Therefore, knowledge of the external business environment is vital in developing and maintaining competitive advantage. Such knowledge increases the probability of businesses surviving in the long term. Changes in the external business environment emanate from a number of sources. Some of these sources relate to political changes, economic changes, legal changes, social-cultural changes, and technological changes. Consequently, it is paramount for managers to adopt effective models in order to conduct comprehensive analyzes of the business environment (Fortenberry, 2010). One of the models that businesses should consider is the PESTEL model, which is applicable in analyzing the external environment within which the model is operating.

Political environment

Currently, the United Arabs Emirates political environment is relatively stable. One of the factors that have contributed to the high rate of stability relates to the adoption of an effective system of governance. In the quest to ensure that citizens receive the best care, the UAE government has incorporated policies that aim at supporting investors in the healthcare sector. This move has played a vital role in promoting the healthcare sector. An example of such policies relates to taxation. The UAE government offers taxation holidays to firms that support the minority groups such as the physically challenged and the elderly (Diane, 2008).

Economic environment

According to Radomski and Trombly ((2008), economic factors have a significant effect on hospital operations because they influence demand, profits, prices, and costs. In most cases, economic factors are beyond the control of hospitals because they are subject to forces of demand and supply. However, economic factors affect firms’ marketing mix and hence their performance. The UAE is one of the fastest growing economies within the Gulf Region. Additionally, the UAE healthcare sector is one of the fastest growing sectors. A large number of patients are considering going to the UAE for medical attention. Due to the high rate of economic growth, patients and their families are increasingly willing to pay more in order to receive good medical care. The country’s economic growth has made this aspect possible by increasing the consumers’ purchasing power.

Socio-cultural environment

Currently, patients are increasingly changing their expectations with regard to health care. One of the aspects that have led to this change relate to demographic changes. Consequently, it is vital for Al-Salit to improve its marketing capability in order to address market changes. Al-Salit’s management team should consider conducting continuous market research in order to assess the changes in market. The market research will improve the effectiveness and efficiency with which Al-Salit plans to cater for future population changes.

Technological environment

Technology is one of the most important components in hospital operation, which arises from the fact that it determines the quality of services provided by the hospital. Currently, the technological environment is undergoing significant transformation due to the high rate of research and development. New technologies are increasingly being developed within the healthcare sector in an effort to offer optimal series. Therefore, to develop its competitiveness, it is paramount for Al-Salit to implement emerging technologies. The new technologies will not only benefit the patients, but also the firm. The patients will attain a high level of satisfaction through personalized services that the firm will provide. Additionally, the hospital will also offer convenient medical care. For example, the hospital will be in a position undertake effective diagnosis on its clients.

Ecological environment

As one of the economies in the Gulf Region, the UAE is committed at ensuring that businesses operate in a social responsible manner. One aspect that relate to these requirements is environmental protection. The government is increasingly requesting businesses to consider utilizing environmental friendly products in order to limit the rate of environmental degradation. Considering this trend, Al-Salit will be required to institute effective waste disposal mechanisms. Through effective waste disposal, Al-Salit will significantly improve its public image.

Legal environment

The UAE government has instituted a comprehensive set of regulations that aim at guiding operations of firms in the healthcare sector. Some of these regulations relate to ensuring that clients get proper services.

Competitive environment

The UAE healthcare sector is characterized by a relatively high rate of competition. The competition emanates from the large number of healthcare service provides. Both local and international investors have ventured the healthcare industry in an effort to exploit the market opportunity presented. The high rate of economic growth has led to an increment in the rate at which firms in the sector are competing for market share. Moreover, hospitals are increasingly becoming multi-specialized in an effort to attain an optimal market position. In addition to the prevailing competition, the intensity of competition in the UAE healthcare sector is likely to be stimulated by new firms entering the market. However, one of the major challenges that are likely to face new entrants relates to the fact that hospitals are capital intensive.

SWOT analysis

The chart below illustrates an analysis of the firm’s strengths, weaknesses, opportunities, and threats.

The hospital is strategically located in Abu Dhabi hence making it easy to access.
The firm has instituted effective code of conduct that aim at improving the quality of service offered.
The hospital has trained and specialized doctors who are accredited by the Ministry of Health.
The hospital has instituted a post-process survey that is intended at developing patient-relationship.
The firm does not have not created sufficient publicity
The firm is in its growth stage hence its competitiveness in not adequate.
There is a high probability of the firm attaining a high market share by venturing into new healthcare segments.
People are increasingly willing to pay more in order to receive optimal healthcare. Therefore, there is a high probability of Al-Salit increasing its profitability.
High rate of competition may result in the firm facing challenges in increasing its market share.
Changes in customer loyalty may adversely affect the firm’s competitiveness.

Marketing strategy

Marketing strategies constitute the various actions that organizations intend to undertake in order to achieve the desired marketing objective and goal (Winston, 2012). In order to attain the desired level of competitiveness, Al-Salit will institute a comprehensive service marketing mix strategy as discussed herein.

Product strategy

Healthcare service providers should adopt customer perspective in their quest to achieve the set goals and objectives (Fortenberry, 2010). In the process of instituting the pediatric wing, Al-Salit will ensure that it is fitted with the state-of-the art technology, which will contribute towards the provision of more personalized services. Additionally, the hospital’s management team will ensure that qualified personnel offer services in the wing by hiring additional qualified nurses in order to cater for the large number of patients who are seeking healthcare services in the hospital. The hospital will also institute a training program that will aim at improving the nurses and doctors’ knowledge and skills with regard to pediatrics, which will contribute towards improvement in the level of satisfaction amongst clients.


Considering the fact that pediatric services will be a new product in the firm’s operation, penetration pricing will be adopted. This pricing strategy will entail setting the price for pediatric services at a relatively low price point compared to other healthcare service providers in the market.

Promotion strategy

In the quest to improve the level the clients’ preference towards its pediatric services, Al-Salit will employ both push and pull strategies in its marketing process. The push strategy will be achieved by entering into a contract with domestic healthcare insurance companies. The insurance companies’ responsibility will be to incorporate Al-Salit’s pediatric services within their referral system. The pull strategies to be employed by the firm include using both traditional and emerging marketing communication strategies. The traditional methods to be employed include public relations, advertising, and sales promotion. An effective message to be used in the advertising process will be designed. Diverse advertising tools, which include online advertising, press adverts, brochures, television, radio, and billboards will be used. On the other hand, public relations will be undertaken by sponsoring events such as sports to increase the rate of interaction between the hospital and potential clients. The firm’s promotion campaign will adopt the DRIP model whose objective is to differentiate, remind, inform and persuade clients.

Place-in a bid to reach a large number of potential customers, the hospital will establish a number of branches offering pediatric services in the country, which will aid in developing the level of convenience with which the clients access services.

People– The hospital is committed at developing a high level of customer loyalty. Consequently, the hospital will ensure that its employees are courteous in their service provision. Additionally, only qualified personnel will be hired to offer services in the new wing.

Process– The hospital will ensure that a high level of accuracy is incorporated in the process of offering services to clients, which will contribute towards customer satisfaction.

Physical evidence-in a bid to increase the level of patient satisfaction, Al-Salit hospital will ensure that the wing remains clean at all times. Additionally, an attractive ambience will also be ensured.

Financial projections

Al-Salit projects that its financial stability will increase significantly by offering pediatric services. Within one year after launching the pediatric services wing, the hospital projects that its annual revenue will grow with a margin of 15%, which will translate into an increment into a 10% increment in level of its profitability. Therefore, to achieve this goal, the hospital has to ensure that adequate measures are taken into account. The first issue that will be taken into account relates to budgeting. The Chief Financial Officer has projected that approximately $ 3 million will be used in rolling out the wing. The budget below illustrates the budge that the firm has set aside for the establishment of the new pediatric wing.

Cost item Amount in US $
Cost of purchasing the necessary equipments 1,500,000
Cost of installing the equipments purchased 100,000
Cost of hiring additional nurses and doctors 250,000
Cost of market research 50,000
Promotion cost using various mediums 100,000
Total cost 3,000,000

Implementation controls

Effective measures will be incorporated to ensure that the new wing is successfully implemented. Firstly, the firm will appoint a project manager who will assume the responsibility of ensuring that the new wing is implemented effectively. One of the aspects that the project manager will be required to undertake relates to developing a project team that will undertake the various implementation processes. A number of milestones will be set in order to assess the project’s progress. Additionally, continuous reviews on the performance of the wing will be undertaken in order to determine the effectiveness with which it aids in attainment of the set organizational goals.

Reference List

Berkowitz, E. (2011). Essentials of health care marketing. Sadbury, MA: Jones & Bartlett.

Diane, R. (2008). Recent trends in US services trade, 2008 annual report. New York, NY: Cengage.

Fortenberry, J. (2010). Healthcare marketing: tools and techniques. Sudbury, MA: Jones and Bartlett Publishers.

Radomski, M., & Trombly, C. (2008). Occupational therapy for physical dysfunction. Baltimore, MD: Wolters.

Winston, W. (2012). How to write a marketing plan for healthcare organizations. New York, NY: Routledge.

Removal Request
This essay on Marketing Plan for Hospital Has Low Demand was written by a student just like you. You can use it for research or as a reference for your own work. Keep in mind, though, that a proper citation is necessary.
Request for Removal

You can submit a removal request if you own the copyright to this content and don't want it to be available on our website anymore.

Send a Removal Request