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10 Steps: Marketing Plan

for Maxicare

Oliver Chan Cristina Garcia Rose Ann Palma

Ateneo Graduate School of Business Ateneo School of Medicine and Public Health

10 January 2011

1.  Maxicare’s PTM are large and medium-sized corporations with social class A, B, C employees.

2.  Who want to feel secure of healthcare financing and delivery.

3.  Who have other options such as Intellicare, Medicard, Philhealth

4.  Gap is all other companies focus on savings. 5.  Market size is P29.8 Billion. Maxicare niche is P5

Billion.

Maxicare’s  Primary  Target  Market    and  Posi5oning  

Maxicare’s  Marke5ng  Mix  and  Strategy  

6.  Pre-­‐paid  health  delivery  system.  

7.  Maxicare  packages  are  priced  at  a  premium  of  10%  compared  to  other  HMOs  with  a  range  from  P8,000  –  P67,000  /  year.  

8.  Uses  sales  agents,  doctors,  events,  Maxibears,  and  company  website.  

9.  Available  naKonwide.  10.  Uses  a  best  in  service  approach  to  win.    

Maxicare  PRIMARY  TARGET  MARKET  (PTM)    are  corpora5ons  

•  Large  corporaKons  (ex.  San  Miguel,  BDO,  Call  Centers)  who  take  care  of  their  workers  (execuKves,  managers,  regular  employees)  –  18-­‐60  years  old  –  Male  and  Female  –  Class  A,  B,  C  –  Single  or  Married  

•  Lifestyle:  Working  individuals,  employed  •  Behavior:  Premium  healthcare  at  its  finest  

Good  health  is  “wealth”  

Being  healthy  makes  you  feel  beYer  about  yourself  

Maxicare  makes  you  feel  secure  about  your  health/access  to  healthcare  services  

My  PTM’s  NWE  

•  CorporaKons  NEED  access  to  medicines  and  doctors  for  their  health  needs.  

•  CorporaKons  CHOOSE  Maxicare  because  they  want  an  equally,  or  even  more  successful  corporaKon  as  their  partner  in  healthcare  (reputaKon  and  credible  HMO).  

–  Maxicare  is  one  of  the  largest  HMO  in  the  country  =  small  chance  of  closing,  big  pool  of  clients  to  spread  and  minimize  risk,  naKonwide  coverage.  

–  CorporaKons  EXPECT  excellent  service  with  Maxicare.  They  expect  to  get  the  best  services  for  the  price  they  are  paying.  

         Direct  and  Indirect  Compe5tors  

Direct  

Indirect  

Variables  

• IntelliCare  • MEDICard  • Valuecare  • Other  HMOs  

• PhilHealth  • albularyos/hilots  • Internet  health  websites  • government  health  centers  •   small  private  clinics  • Price  • Packaging  • Scope/coverage  • Delivery  of  service  • Reputation  • Accessibility  • Partner  physicians  

Compe55ve  Posi5on  Map  

Compe55ve  Posi5on  Map  

•  Maxicare  is  priced  higher  than  its  rivals  and  did  not  follow  the  trend  of  sacrificing  services  to  offer  lower  prices.  

•  Some  insurance  companies  were  not  able  to  serve  clients  because  of  the  very  low  priced  rates  hence  had  to  close.  

Maxicare  focuses  on  healthcare  at  its  finest.  Best  in  Product  /  Service  

Based  on  compe5tor  data,  HMO  market  is  P10.5  B  industry  and  Maxicare’s  share  is  

1.698  B  (16%  market  share)  

Based  on  Maxicare  data,  where  Maxicare  share  is  25%,  total  market  

size  is  P20  billion    

•  Maxicare  Data:  Membership  base  is  500,000  –  *average  annual  fee  of  P13,058  –  (500,000  *  P13,058  =  5  Billion)  

•  Maxicare  claims  market  share  of  25%  

•  Then  total  healthcare  market  size  is  5  billion  /  0.25  =  P20  billion.  

Es5mate  market  size  using  customer  data  (Market  size  =  59  B)  

Only  45%  have  insurance.  Filipinos  with  insurance    =  94  million  x  45%  =  42.3  million  

Market  size  =  42.3  M  Filipinos  x  P1,400    =  59  billion  

HMO  industry  is  dominated  by      3  major  brands  

Product  Descrip5on  

Product  Descrip5on  

Large  Private  

P200,000  

Regular  Private  

P150,000  

Regular  Private  

P100,000  

Semi  Private  

P60,000  

Plan  Type  

Room  and  Board  Accomoda5ons  

Maximum  Benefit  Limit  (Php)  

PLATINUM  PLUS   PLATINUM   GOLD   SILVER  

Product  Descrip5on  

Out-­‐Pa5ent  Care   In-­‐Pa5ent  Care  

Product  Descrip5on  

Preven5ve  Care     Annual  Check-­‐Up  

Product  Descrip5on  

Emergency  Care  

Product  Descrip5on  

Promo:  At  Present  

Promo:  At  Present  • Maxicare  uses  various  media  to  advertise  and  market  their  services  • Maxicare  is  up  to  date  with  the  latest  trends  in  accessing  information  

Promo:  At  Present  

Promo:  CompeKtor  

Promo:  CompeKtor  

Price:  Fixed  Plans  

Price  

Price:  Customized  Plans  

Place:  Accessibility  

Maxicare  is  a    “Best  in  Healthcare  Service  Provider”    

•  Maxicare’s  main  strategy  is  to  provide  finest  healthcare  available  to  execuKves  and  employees  in  social  class  A,  B,  C,  aged  18  to  60  years  old.  

•  It  is  accessible  naKonwide  and  available  24/7  through  website,  hotline,  SMS.  

•  Has  an  excellent,  premium  priced  healthcare  insurance,  serviced  by  the  leading  hospitals  and  doctors  of  the  country.  

Recommenda5ons  

•  More  aggressive  adverKsing  campaign  

–  Form  affiliaKons  with  popular  TV  shows  (Salamat  Doc)  

–  Sponsor  a  segment  in  the  show  

–  AdverKse  aimed  towards  the  PTM  

–  Asian  Wall  Street,  The Economist, Business  secKon  of  newspapers    

Recommenda5ons  

•  Tie-­‐ups  with  lifestyle  insKtuKons    •  Discounts    in  popular  gyms,  

sports  clinics,  spas  and  salons  

•  Wellness  Package  •  Fitness  First  +  Maxicare  •  Bikram  Yoga  +  Maxicare  

Recommenda5ons  

•  34  +  1  •  Ex:  Sykes  =  10,000  employees  

•  285  free  1  year    health  insurance  

•  Savings:  3.7M  •  Revenue:  126M  

Recommenda5ons  

•  Car  Raffle  •  Every  new  member  =            1  raffle  entry  

SUMMARY  

1.  Maxicare’s PTM are large and medium-sized corporations with social class A, B, C employees.

2.  Who want to feel secure of healthcare financing and delivery.

3.  Who have other options such as Intellicare, Medicard, Philhealth

4.  Gap is all other companies focus on savings. 5.  Market size is P29.8 Billion. Maxicare niche is P5

Billion.

Maxicare’s  Primary  Target  Market    and  Posi5oning  

Maxicare’s  Marke5ng  Mix  and  Strategy  

6.  Pre-­‐paid  health  delivery  system.  

7.  Maxicare  packages  are  priced  at  a  premium  of  10%  compared  to  other  HMOs  with  a  range  from  P8,000  –  P67,000  /  year.  

8.  Uses  sales  agents,  doctors,  events,  Maxibears,  and  company  website.  

9.  Available  naKonwide.  10.  Uses  a  best  in  service  approach  to  win.    

10 Steps: Marketing Plan

for Maxicare

Oliver Chan Cristina Garcia Rose Ann Palma

Ateneo Graduate School of Business Ateneo School of Medicine and Public Health

10 January 2011