Bunrungrad hospital and my points of view

1. Bumrungrad has emerged as the leading privately managed hospital in Southeast Asia.

Comment on this hospital company:

Its core value is ‘the ability to recover fast’. Then, applied with augmentation to it offer its target people as a good product.

First, the Bumrungrad differentiated its product in order to tap local or existing market. Then, it invested huge investment its Thailand SBU to become star category. This SBU was in dog position due to Thailand economic recession in 1997. The Bumrungrad applied the product development strategy and added new features in its original product. Then defined its new position and conducted successful promotion. When it got success in Thailand, it extended it activities to foreign markets. At that time, the Bumrungrad implemented ‘market development strategy’. When it extended its market to oversea, it provided its distribution channel with very comfortable arrangement. In deed it used convenience strategy. For pricing, the Bumrungrad had cost leadership method to compete similar and expensive hospitals. Later, it applied ‘market diversification’ for more target segments. The basic concept of it success is market concept approach.

In January 1997, the Bumrungrad shifted to its new facility located at the centre of Bangkok. It established the 12-floor building with 554 beds and 21 operation theatres. This new hospital was equipped with the most modern medical equipment. Besides, 600 physicians, nearly half of them were trained at U.S. and others were from different parts of the world. For management, the Bumrungrad hospital hired an international management team led by American professional.
In order to project itself as a global hospital complying with international standards, the Bumrungrad began an aggressive marketing strategy. Above and beyond, it obtained ISO 9002 quality certifications in 1997 and it can pursued the ISO to certified on its hospital as Comprehensive Tertiary Acute Medical Centre in 1999 in order to get international recognition with their party validation.

The Bumrungrad also decided to use the Internet as an information and marketing medium to promote its services to foreign patients. It built an website ‘ www.bumrungrad.com ‘ in 1997. Its website served health care information, medical facilities available, range of treatments of Bumrungrad, ‘Find a Doctor’ section, and online appointment system (Appointments were confirmed within two hours.). According to estimates in 2001, nearly 150 appointments were booked every day through its site. Moreover, the patients could view their medical records in this site.

When they developed their market globally, they used promotion and made ensure for distribution channel. As a tactic of promotion, the Bumrungrad participated in an international road show organized by the export promotion department of Thailand commerce ministry. They took this advantage on Thailand’s promoting medical tourism as an ‘export’ product. As a follow up, the Bumrungrad opened its representative offices in Ho Chi Minh (Vietnam), Yangon (Myanmar), Dhaka (Bangladesh), and Vientiane (Laos) and these offices helped the foreigners to procure visa, to make travel arrangement, and to calculate estimate health care cost in accordance with their treatment. These offices coordinated with Bangkok airport staff and the main Bumrungrad hospital staff. The Bumrungrad also sent its sales representatives to other Southeast Asian countries for awareness and promotion exercises. These exercises intended to attract foreigners who had to undergo surgery from those countries where quality health care was either not available or was too expensive.

After that, the Bumrungrad started its new service for routine health checkups to new segment. Initially, it targeted the Japanese and it improved itself to be able to carry out this service. It tied up with a travel agency in Thailand catering mainly to the Japanese visitors and recruited a Thai doctor who could speak Japanese. Later, the Bumrungrad also opened other representative offices in Sri Lanka, Nepal, the Maldives, U.K. and the Netherlands.

As other wooing for foreigners, the Bumrungrad tied up with Thai Airways International owned by the government in April 2000 in order to run health care package trips to Thailand. As results, advertisements and catalop information on Bumrungrad appeared in the magazines of Thai Airways and their Royal Orchid Holiday “brochures”. The Bumrungrad offered tow options – the ‘Health Examination for Women or Men’ and the Executive Physical’.

In late 2000, the Bumrungrad launched another campaign to attract the patients in the U.K. As its distribution channel, it tied up with a U.K. based company, UK Healthcare Enterprises, and offered an ‘instant and affordable’ full package of healthcare service in which there were airfares, medical charges, accommodation. Nevertheless, the entire cost was a mere one-third of that in a hospital in the U.K. Then, the Bumrungrad extended to European countries with similar services. Apart from Europe, the Bumrungrad offered Japan and the U.S. with the services that were not covered under medical insurance including cosmetic surgery, laser surgery, skin resurfacing, skin and dental treatment and comprehensive checkups.
The Bumrungrad also got the opportunity on 9-11 attack on the U.S by offering many people from the Middle East and other Islamic countries who were uncertain of going to the U.S. and Europe for medical treatment. The Bumrungrad built its staff capacity to provide these new-targeted people. The entire staff of 1300 people was given sensitivity training on the fundamentals of Islam. For the first time, a Halal kitchen and Islamic prayer room were placed in the hospital. In addition, the appointed Arabic interpreters on board to communicate with the patients and arranged other specific cultural needs of Muslim patients. The Bumrungrad could pursue 10,000 patients from the Middle East in 2001.

The Bumrungrad used Arabic newspapers and tied up with Middle East travel agents to promote its customized services. Bumrungrad’s efforts at wooing were very fruitful.
In order to increase influx of foreign patients, the Bumrungrad opened an International Patient Centre (IPC) in mid 2002 and the IPC provided procuring visa, language translation, insurance, transport, interaction with a doctor from their homeland, and even repatriation.

In November 2002, the Bumrungrad tied up with Mandara Spa to offer relaxation programs. These programs targeted Japanese who preferred natural treatments. Specially trained Spa staff, in consultation with the doctor concerned, offered these treatments.

Along with its aggressive global marketing initiatives, Bumrungrad also took proactive measures to ensure it provided the right kind of ambience and service erperience to foreign patients. This helped the Bumrungrad generate tremendous word-of-mouth publicity.

2. The customer experience of Bumrungrad

Although the Bumrungrad was located in Thailand, it had a western-style ambience. The accommodation the Bumrungrad provided to visitors was equivalent to a five-star hotel. The lobby room was created with a ceiling as high as two floors, teak pillars and plush sofas and armchairs. The marble floors covered with attractive oriental carpets and the hostesses trained in different languages, also pursued the high-class visitors and patients. Many restaurants, McDonalds, Starbucks, Thai and Japanse restaurants, in the lobby for people of different nationalities, were also one of the main attritions. These facts created this ambience made the patients feel at home.

The Bumrungrad intended to provide a very international ambience in order to remove threaten of hospital and change the people attitudes to health and idea of hospital as a place to come not just when you are sick, but when you want a health check.

As a great customer experience of Bumrungrad, it ensured that its patients were treated in quick time. It had a reputation of utmost efficiency. In April 2002, it installed internet cafes known as BH Cyber Corners, in the hospital to supply information needs. The cafes were located in the lobby room and at the outpatient room centre.

In 2001, the Bumrungrad upgraded the internet service with medical information system called Hospital 2000 and the system facilitated dealings with customers of different nationalities. As results, the customers could register online and could communicate in any 17 languages. The Bumrungrad provided the patients with their records, payment particulars, medical bills, and pharmacy labels in their selected language.

The Bumrungrad was famous for its heart centre formed with two cardiac, two exclusive cardiovascular operation theaters, a coronary care unit with 14 beds, an exclusive testing lab, and a consultation centre. It also had women centre equipped with a consultation clinic with private facilities, a health-screening program and full obstetrics facilities, including labor rooms, birthing rooms, a nursery, and an intensive care unit for newly born babies.

The Bumrungrad was also distinctive from other by having cosmetic surgery center treated a number of foreigners and Thais. The centre had both American Board and Thai Biard certified plastic surgery physicians. The centre serviced for forehead lift, facelift, eyelid surgery, rhinoplasty, facial implants, breast lifting, enlargement and reduction, and reconstructive plastic surgery.

The Bumrungrad also provided the accommodation facilities to patients with two royal suits, 19 VIP suits, 57 deluxe rooms and 119 single, semi-private and budget 4 bed wards. The deluxe and VIP suits and royal suit rooms were installed PCs, internet connections. The Bumrungrad categorized the 554 beds into Medical/Surgical/OB/ Pediatrics, Adult Intensive Care, Cardiac Care (CCU), Pediatric Intensive Care, and Level III Neonatal Intensive Care. The Bumrungrad also made sure for airlift with a helicopter in a case of extreme emergencies.

The Bumrungrad’s 600 physicians assisted by technical staff who could operate a complete array of diagnostic and treatment tools including linear accelerators with 3D computer planning, beauty therapy, and radiation simulators, as well as all operations in the out-patient chemotherapy center and cancer consultation centre.

Service marketing mix

Product

The Bumrungrad’s product is originally health care with ability to recover fast. It offers for health service. Its segmentations are local people and international communities such as Japanese, Middle East, Europe, U.K and U. S. as well as South East countries and South Asia countries. The Bumrungrad targets to Thai middle classes, patients from Southeast Asia countries, foreigners who had to undergo surgery from those countries where quality health care is not available or is too expensive, the patients from the countries where health care cost are high and insurance net is low, people from Middle East and other Islamic countries who are uncertain of going to the U.S. and Europe for medical care, and Japanese who preferred natural treatments. In 2003, Bumrungrad’s main clientele comprised patients from Southeast and South Asia, who required specialist medical services, particularly in acute cure; patients from the Middle East; and patients from Europe, U.S. and Japan requiring elective surgeries like plastic surgery. They always applies marketing concept. The Bumrungrad tries to get customers’ lifetime value. The Bumrungrad applies all of product strategies, market penetration, product development, market development and even diversification to make sure its SBU making profit and obtain good customer perceived value. The Bumrungrad targets its market position to be global hospital. The Bumrungrad later tries for bran extension with BH International (BHI)


Place

The Bumrungrad’s market trend is global trend and its covering environment is ‘Macroenviroment’. As a global trend health care company, the Bumrungrad has to consider all of forces affected such as the demographic forces, economic forces, natural forces, technological forces, political forces and cultural forces.
Eg Economic recession, 9-11 attack, Islamic cultural needs, etc

Price

The Bumrungrad applies cost leadership. As one of its segments is Thai middle class, it tries to service low price. The Bumrungrad charges one third of U.K price or 80 /85 % of U.S. medical cost. In Thailand, the Bumrungrad applies going-rate pricing policy as it has fierce competitions

Promotion

The Bumrungrad spend its investment in promotion wisely.
Obtaining ISO certificates
Building a website
Participating in an international road show of the export promotion department of Thailand commerce ministry
Opening reprehensive office oversea
Sending sales representatives to other countries
Getting strategic alliances as a promotion activity
Trying to appear Thai Airways magazines and Royal Orchid Holiday brochures
Using Arabic newspapers and travel agent
Some other promotions such as ‘Dragon baby campaign’

SWOT of Bumrungrad

Strengths

Strong financial background
Good Management team
Good human resources
Strong technology support
Good facilities
Staff attitudes
Flexible operating system to run the hospital in nay situation
Excellent marketing strategies
Cultural diversity

Weaknesses

Limited local resources people
A little high medical cost for low income people
Limited local promotion

Opportunities

Thai economic policy
Good strategic alliances
Other countries’ high health care cost and low insurance net
Other country’s out-sourcing policy for health care
Homeland security policy of US, UK and European countries
Technology support

Threats

Economic recession
Fierce competition
Limited cultural environments
Political uncertainty in Thailand
Rapid technology changes
Unstable political situation in targeted market countries

At the moment, the Bumrungrad gets a little leading role in market, but others can copy its strengths. Although, it applies semi cost leadership and semi focus strategies, it can not cut more prices. As a result, it will need to find some alternatives to compete with others Hospital Company.

The Bumrungrad should remodel its structure with timely manner, as technology is changing from time to time. It may need to extend its market and seek more segments. At the same time, it is supposed to do more brand extension. It may need to have “after sale service” to delight the customers.

The above is my just learning and exercises.