Harvard Case - Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market
"Be Well Hospitals - Branding a Mid-Tier Service in a Two-Tier Market" Harvard business case study is written by Piyush Kumar, Sonia Mehrotra, Geetika Shah. It deals with the challenges in the field of Service Management. The case study is 14 page(s) long and it was first published on : Jul 11, 2017
At Fern Fort University, we recommend Be Well Hospitals implement a multi-pronged strategy focused on service innovation, customer experience management, and strategic branding to establish a strong competitive advantage in the two-tier market. This strategy will involve leveraging technology, enhancing service quality, and building a distinct brand identity that resonates with the target audience.
2. Background
Be Well Hospitals is a mid-tier hospital chain operating in a two-tier market characterized by high-end, premium hospitals and lower-cost, basic hospitals. Be Well faces challenges in attracting and retaining patients due to its perceived lack of differentiation and struggles to compete with both tiers. The case study highlights the need for a strategic approach to branding and service delivery to overcome these challenges.
The main protagonists of the case study are the hospital's leadership, who are tasked with developing a strategy to improve Be Well's position in the market.
3. Analysis of the Case Study
Strategic Analysis:
- Porter's Five Forces: The healthcare industry is characterized by high bargaining power of buyers (patients), moderate threat of new entrants, and moderate rivalry among existing players. The threat of substitutes is low due to the essential nature of healthcare services.
- Competitive Advantage: Be Well needs to establish a clear competitive advantage by focusing on a specific value proposition. This could be based on service quality, affordability, or specialization in a particular area of healthcare.
- SWOT Analysis:
- Strengths: Be Well has a strong network of hospitals, experienced staff, and a good reputation for basic healthcare services.
- Weaknesses: Lack of a clear brand identity, limited marketing efforts, and perceived lack of quality compared to premium hospitals.
- Opportunities: Growing demand for affordable healthcare, increasing adoption of technology in healthcare, and potential for specialization in niche areas.
- Threats: Competition from premium hospitals, rising healthcare costs, and changing patient expectations.
Marketing Analysis:
- Target Audience: Be Well needs to identify its target audience and understand their needs, preferences, and pain points. This audience could be price-sensitive individuals, families, or specific demographics with specific healthcare needs.
- Positioning: Be Well needs to clearly define its position in the market and communicate its value proposition to its target audience. This could be achieved through differentiation based on service quality, affordability, or a specific area of expertise.
- Marketing Mix: Be Well needs to develop a comprehensive marketing mix that includes advertising, public relations, social media marketing, content marketing, and customer relationship management (CRM) strategies.
Operational Analysis:
- Service Quality: Be Well needs to focus on improving service quality by implementing service quality management systems, training staff, and using customer feedback to identify areas for improvement.
- Process Improvement: Be Well can leverage lean management principles and Six Sigma methodologies to streamline processes, reduce waste, and improve efficiency.
- Technology Adoption: Be Well can leverage technology to improve patient care, enhance communication, and streamline operations. This could include implementing electronic health records (EHRs), telemedicine, and mobile applications.
4. Recommendations
1. Service Innovation and Customer Experience Management:
- Develop a Service Differentiation Strategy: Be Well should focus on a specific area of healthcare where it can excel, such as specialized care for a specific demographic or disease, or offering a unique service experience.
- Enhance Service Quality: Be Well should implement a comprehensive service quality management system based on the SERVQUAL model, focusing on tangibles, reliability, responsiveness, assurance, and empathy.
- Leverage Technology: Be Well should invest in technology to improve patient experience, communication, and operational efficiency. This includes implementing EHRs, telemedicine, and patient portals for online access to medical records and appointment scheduling.
- Implement Customer Relationship Management (CRM): Be Well should invest in a CRM system to manage patient interactions, track feedback, and personalize communication.
- Develop a Service Recovery Strategy: Be Well should establish a clear process for handling service failures and complaints, ensuring prompt and effective resolution.
2. Strategic Branding:
- Develop a Clear Brand Identity: Be Well should create a distinct brand identity that reflects its value proposition and resonates with its target audience. This includes developing a brand name, logo, tagline, and brand story.
- Implement a Multi-Channel Marketing Strategy: Be Well should leverage a combination of traditional and digital marketing channels to reach its target audience. This includes advertising, public relations, social media marketing, content marketing, and email marketing.
- Build a Strong Online Presence: Be Well should create a user-friendly website and active social media presence to engage with potential patients and build brand awareness.
- Develop a Customer Loyalty Program: Be Well should implement a customer loyalty program to reward repeat customers and encourage referrals.
3. Organizational Change Management:
- Create a Culture of Service Excellence: Be Well should foster a culture that values service quality and customer satisfaction. This involves empowering employees, providing training, and recognizing outstanding service.
- Communicate the Vision: Be Well should clearly communicate its vision, strategy, and brand identity to all employees to ensure alignment and commitment.
- Encourage Innovation: Be Well should encourage employees to identify and implement service innovations to improve patient care and enhance the customer experience.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of Be Well's current situation, the healthcare industry landscape, and the needs of its target audience. They are consistent with Be Well's mission to provide quality healthcare services and are designed to establish a strong competitive advantage in the two-tier market.
The recommendations consider:
- Core competencies and consistency with mission: The recommendations focus on leveraging Be Well's existing strengths, such as its network of hospitals and experienced staff, while addressing its weaknesses, such as its lack of brand identity and perceived lack of quality.
- External customers and internal clients: The recommendations prioritize customer satisfaction and employee empowerment to create a positive experience for both.
- Competitors: The recommendations are designed to differentiate Be Well from its competitors by focusing on service quality, affordability, and a unique brand identity.
- Attractiveness: The recommendations are expected to improve Be Well's financial performance by attracting new patients, increasing patient retention, and enhancing operational efficiency.
6. Conclusion
By implementing these recommendations, Be Well Hospitals can establish a strong competitive advantage in the two-tier market, attract and retain patients, and achieve sustainable business growth. The focus on service innovation, customer experience management, and strategic branding will allow Be Well to differentiate itself from its competitors and position itself as a trusted and preferred healthcare provider.
7. Discussion
Alternatives:
- Focusing solely on price: While offering competitive pricing can attract price-sensitive patients, it may not be sustainable in the long run and could negatively impact service quality.
- Merging with a premium hospital: This could provide access to resources and expertise but may not be feasible or desirable for Be Well.
Risks and Key Assumptions:
- Implementation challenges: Implementing the recommendations effectively requires strong leadership, commitment from employees, and adequate resources.
- Market response: The success of the strategy depends on the response of Be Well's target audience.
- Technological advancements: The healthcare industry is constantly evolving, and Be Well needs to stay abreast of technological advancements to remain competitive.
8. Next Steps
Timeline:
- Phase 1 (Months 1-6): Develop a strategic plan, conduct market research, and implement initial service quality improvements.
- Phase 2 (Months 7-12): Launch branding campaign, implement CRM system, and invest in technology upgrades.
- Phase 3 (Months 13-18): Monitor progress, refine strategy, and expand service offerings.
Key Milestones:
- Develop a comprehensive strategic plan: Define the target audience, value proposition, and key initiatives.
- Implement a service quality management system: Establish standards, train staff, and monitor performance.
- Launch a branding campaign: Develop a brand identity, marketing materials, and communication strategy.
- Invest in technology upgrades: Implement EHRs, telemedicine, and patient portals.
- Develop a customer loyalty program: Reward repeat customers and encourage referrals.
By following these recommendations and implementing them effectively, Be Well Hospitals can achieve its goals of becoming a leading healthcare provider in its market and delivering exceptional patient care.
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Case Description
Be Well Hospitals - a multi-specialty secondary healthcare chain of hospitals is set up in the suburbs, industrial towns and district headquarters of the South Indian state of Tamil Nadu. The hospital chain co-founded by Dr. C.J.Vetrievel in 2011, fulfills the need of quality healthcare services in secondary healthcare market segment. They provide access to high-quality primary and secondary healthcare services at affordable price to the semi-urban and rural population through their chain of multi-specialty hospitals. In the four and half years, since its founding, Be Well has set up eight hospitals with a combined capacity of more than 280 beds and has treated close to 500,000 patients. The case describes Be Well's operations and the marketing initiatives it deployed to increase the adoption of its service concept in a two -tiered market. it provides information about the content of Be Well's past advertising communications and the media choices it made to build its brand. The management is grappling with the dilemma of brand building and educating potential customers about the high quality of care available at Be Well in a format that had a smaller footprint than its big city rivals. A complicating factor is creating a three-tier market with the limited resources in a setting where the customers are used to a two-tier service structure. They face a resource allocation challenge with regard to the mix of media-based and non-media based communication platforms. The management needs to decided on the choice of service attributes or dimensions around which the Be Well brand to be built and whether to focus on local branding of each hospital or develop a unified and common brand across all its facilities in the state.
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