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10 Steps: Marketing Plan

for Maxicare

Oliver ChanCristina GarciaRose Ann Palma

Ateneo Graduate School of BusinessAteneo School of Medicine and Public Health

10 January 2011

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

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

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

5. Gap is all other companies focus on savings.

6. Market size is P29.8 Billion. Maxicare niche is P5 Billion.

Maxicare’s Primary Target Market and Positioning

Maxicare’s Marketing 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 nationwide.

10. Uses a best in service approach to win.

Maxicare PRIMARY TARGET MARKET (PTM) are corporations

• Large corporations (ex. San Miguel, BDO, Call Centers) who take care of their workers (executives, 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

My PTM’s NWE

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

• Corporations CHOOSE Maxicare because they want an equally, or even more successful corporation as their partner in healthcare (reputation 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, nationwide coverage.

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

Direct and Indirect Competitors

Competitive Position Map

Competitive Position 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 competitor 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.

Estimate 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 Description

Product DescriptionPlan Type

Room and Board Accomodations

Maximum Benefit Limit (Php)

Product Description

Out-Patient Care In-Patient Care

Product Description

Preventive Care Annual Check-Up

Product Description

Emergency Care

Product Description

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: Competitor

Promo: Competitor

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 executives and employees in social class A, B, C, aged 18 to 60 years old.

• It is accessible nationwide 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.

Recommendations• More aggressive advertising

campaign

– Form affiliations with popular TV shows (Salamat Doc)

– Sponsor a segment in the show

– Advertise aimed towards the PTM

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

Recommendations

• Tie-ups with lifestyle institutions • Discounts in popular gyms,

sports clinics, spas and salons

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

Recommendations

• 34 + 1• Ex: Sykes = 10,000

employees• 285 free 1 year health

insurance• Savings: 3.7M• Revenue: 126M

Recommendations

• Car Raffle• Every new member = 1 raffle entry

SUMMARY

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

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

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

5. Gap is all other companies focus on savings.

6. Market size is P29.8 Billion. Maxicare niche is P5 Billion.

Maxicare’s Primary Target Market and Positioning

Maxicare’s Marketing 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 nationwide.

10. Uses a best in service approach to win.

10 Steps: Marketing Plan

for Maxicare

Oliver ChanCristina GarciaRose Ann Palma

Ateneo Graduate School of BusinessAteneo School of Medicine and Public Health

10 January 2011