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Sara Mullins
MM522
Marketing Management
Spring 2011
1.0 Executive Summary
If you are the CEO, it matters. If you are the Director, it matters. If you are the Waste Engineer,
it matters. After a long and remarkable life, one thing really matters. Your health. When you
are 82 years old, having retired from an industrious career, applauded by many to be the best in
your class, the top dog, the leader of many, only one thing can make your life liveable and that is
your health. There is not enough money in the world to restore years of neglect and abuse. Poor
posture, poor nutrition, and poor circulation will all make you impoverished in your retirement
years. Take care of it now. Find a great chiropractor and make a practice of seeing him or her
regularly. What follows is a marketing plan that will set apart our firm—one that is dedicated to
bringing chiropractic to the forefront in healthcare.
2.0 Situation Analysis
The firm faces two critical issues:
Identifying New Patients
Developing Patient Loyalty
The most important aspect is loyalty because it is inherently less costly to maintain a patient than
to obtain a new one.
The firm should consider three primary macro environmental issues:
Competition
Discretionary Income
Perceptional Value
Capabilities of the firm include the ability to serve 18 patients per day, practicing 4 days per
week for a total of 72 patients, which is below average allowing room for growth. Additionally
the firm is able to share physical therapy and massage offerings with the salon / spa located in
the office. This is a rare opportunity, placing the firm in a unique position to gain market
advantage through referrals from the spa.
2.1 Market Summary
Market definition: Adults of both genders, single or married, between the ages of 20 to 64,
professionals and technical workers with an income of $50,000 or greater living in the zip code
areas immediately adjacent to the office. These zip codes include: 33759, 33761, 33763, 33765,
34695, 34698, and 34677.
Demographic size: The median age of the US population was around 36.8 in 2009; people in the
age range of 31 to 50 make up 29% of patients (www.IBISWorld.com.) Baby boomers will
continue to affect trends as they age. The total number in this demographic living in the area
defined is over 150,000. This number is derived from the Census 2000 data by searching each
zip code selected for number of population in the year 2000, (www.census.gov) and with the
assumption that the area has experienced 10% growth since the year 2000.
(http://www.clearwater-fl.com/info/about/demographics.asp)
Growth: As the population ages and as health care costs continue to rise many more will look to
alternative health care to maintain healthy lives well into retirement. The area population has
grown by roughly 10% every decade since 1950.
(http://www.clearwater-fl.com/info/about/demographics.asp)
Trends: Greater attention to nutrition and whole foods. Cost of prescription medications will
drive patients to seek drug-free alternatives. As insurance companies allow less benefit
coverage, more patients will begin to pay out-of-pocket.
Strengths: The firm’s principal physician is knowledgeable, has a good ‘bedside’ manner, is
hospitable, and exhibits a desire to develop trustworthy relationships with clients. Additionally,
there is a strong relationship with the salon / spa located within the office which adds a serenity
and peaceful atmosphere for the comfort of patients.
Weaknesses: The office space may not allow for the smooth transition from one patient to
another in order to accommodate 18 per day. The current limited staffing prohibits freedom of
the physician to focus solely on ‘knock your socks off’ service and patient attention.
Opportunities: Baby boomer aging will lend an increase in age related physical aches and pains
which chiropractors can address. An increase in public education of the virtues of alternative
health care will contribute to growth of demand.
Threats: As health insurance benefits dwindle due to costs, competition for patients from other
providers such as medical doctors (MD’s), physical therapy groups, and osteopathic practitioners
may pose a threat.
2.3 Competition
There are five chiropractic providers within the three-mile radius when a “Google” search is
conducted using the zip code. None are directly located on the same street or immediate vicinity.
The competitors utilize multi-media promotion: billboards, trade and specialty magazines,
newspaper, and television. Additionally they are developing referral source relationships with
injury attorneys and health club organizations. The two top competitors are Melilli Chiropractic
Care, and Dr Monte Venis—Back & Neck Pain Center. Upon visiting each office here is what
the firm discovered:
Melilli Chiropractic Care has been in business for over 15 years. While their office is
professional looking, it is hard to find, and the signage has very small print that is hard to
read when driving by. Upon entering, the waiting area has a clinical and cold feel. When
asked for a brochure, the assistant seems harried and distracted. The office collaterals are
cheap looking stock items with the name stamped rather than imprinted on the back.
They are un-integrated, have outdated photographs, and contain too much reading to be
engaging. There are no business cards in sight and no published rates.
Dr Monte Venis has been in practice for 25 years. The office has a corner location
situated across from the local high school, and is easy to locate due to large signage. The
parking, however, is inadequate, difficult to navigate, and is paved with large gravel that
makes walking to the door precarious. Someone in severe pain due to a fall might be
hesitant to take the risk of slipping on the gravel or to experience irritation and
discomfort from the un-level surface. Dr. Venis’ waiting room has a musty odor and
very little natural light. The assistant is helpful at first but becomes inattentive quickly.
There is no personal selling. As in the case with the Melilli firm, the collaterals are
unattractive, cheap, and stamped on the back.
Due to the wide variation of modalities and philosophies of each firm, their share or position in
the market is divided because there is no unity of services provided.
2.4 Service offering
The firm’s services include addressing spinal pathology, musculoskeletal care and health through
manipulation, traction, pain reduction and injury prevention, diet and nutritional counseling,
therapeutic exercise training, stretching techniques, specific physical therapy methodology,
holistic health philosophies and education.
2.5 Keys to Success
Consistent execution and great reputation
Multi-faceted marketing approach
Higher profile and visibility
Patient call-to-action and incentives
Effective loyalty programs
Strong referral source relationships
2.6 Critical Issues
The firm’s services are delivered in-house. Most critical is keeping current patients while
gaining new ones.
3.0 Marketing Strategy
The strategy includes use of public relations, internet website , direct marketing, promotional
events, sales events, educational collateral, and speaking engagements designed to showcase the
attributes of Clearwater Chiropractic Center (the “firm”) as a preferred provider for back and
neck pain relief. All items used for distribution will be carefully chosen and integrated to
portray the brand of care.
3.1 Mission
Clearwater Chiropractic Center is in business to provide back and neck pain relief through non-
invasive therapy. We will educate the public that chiropractic care is about diminishing pain by
a means that is holistic and that promotes overall good health of the individual through research,
service, and advocacy of strength and safety.
3.2 Marketing Objectives
The firm has set aggressive objectives that are necessary to not only remain competitive but to
provide enough cash flow to firmly establish the business base.
First Year Objective: Increase annual patient visits from 2200 to 2600. A patient may
visit 12 to 20(or an average of 16) times annually for treatment and maintenance care.
Therefore the number of new patients should increase by a minimum of 33 or 2.7 new
patients per month to reach this goal.
Second Year Objectives:
1. Increase new patient number again by 33 annually, boosting visits by 528 to a
total of 3128 annually.
2. Solidify patient loyalty by introducing frequent buyer clubs such as educational
seminars, yoga classes, and nutritional evaluations. This is similar to the Wal-
Mart approach, the more time a patient spends in the office the more he or she
tends to buy. The goal is that at least 50% of visits will be repeat patients by the
end of the year.
Third Year Objective:
1. Add 34 new patients. This will increase the new patient load over the three years
by 100. The translated schedule equals 3800 patient visits or 78 per week in 49
weeks annually (allowing the physician 3 weeks for vacation.)
2. Increase revenue opportunities by launching internal medical diagnosis and / or
treatment by September 30, 2013.
3.3 Financial Objectives
The increase of patient load will naturally increase revenue. Nearly 45% of the firm’s current
patients pay cash at $40 per visit, equaling total revenue of $44,550. A full 30% are covered by
health insurance at an average underwritten co-pay of $22.50 ($15 to $30) per visit for total
revenue of $14,850. Auto accident victims, comprising 25% of current patients, pay roughly an
average of $145 per visit, for a total revenue of $79,750. The firm believes that a mix of the
three sectors each comprising 1/3 of the business is optimal. By increasing the auto accident
referrals by 120 visits annually (or 2.4 visits each week) the revenue will increase by $17,400.
3.4 Target Markets
The firm’s target markets will include adults between the ages of 20 and 64 who have household
income of over $50,000 and who purchase insurance for medical treatment. These adults will
likely reside within 30-40 minutes driving range in the zip code areas immediately adjacent to
the office. According to the year 2000 Census, the market size is 143,116 and growing by 10%
annually. (www.census.gov) (See Table 1.1)
2000 Census Data
Zip Code PopulationHouseholds w/Income Ages 20-64
>$50,000 33759 20,071 2948 11,155 33761 19,594 3888 9,332 34698 34,235 5527 17,846 34677 19,628 4101 11,442 34695 18,156 3760 10,557 33763 18,029 2686 7,741 33765 13,403 1560 8,239
143,116 76,312
Table 1.1
3.5 Positioning
The firm will offer essential chiropractic care in a relaxed spa-like environment. Its main focus
is on taking the time to truly listen to the patient’s needs while offering the most gentle
adjustment technique and treatment. The result is an experience that goes beyond chiropractic to
encompass holistic and non-intrusive care addressing mind, body and soul.
Using social media such as Facebook, the firm will utilize testimonials from satisfied patients in
the form of comments posted on the firm’s Facebook page. This will help further confidence
and acceptance of alternative health services.
3.6 Strategies
First, to create market momentum in order to retain current patients and increase loyalty, the firm
will introduce a postcard mailer in the first two months to the patient database. Also, to gain new
referrals from this marketing activity, the postcard mailer will include incentives to bring friends,
family, and/or associates to introduce them to the services.
Additionally, due to the retainer relationship with the Toronto Blue Jays baseball team the firm
can position itself for market category leadership in the sports injury arena. This will be
accomplished through the use of celebrity endorsement on quality collateral materials such as
brochures, direct mail pieces, and signed photographs prominently displayed in the offices.
Finally, the firm will support the marketing strategies by conducting bi-annual competitive
analysis to determine pricing. Typically the firm will remain above competitor’s pricing and
continue to push value versus cost through advertising and education. The two main
characteristics that set the firm above others are: the spa-like atmosphere and the amount of time
the doctor spends with each patient.
3.7 Marketing Mix
Product: The basic product is a single spinal adjustment. Included in the initial visit is free
evaluation, electron and laser heat therapy, and ten-minute shiatsu table massage.
The main benefit of going beyond the drab experience of chiropractic is the way the service is
wrapped in individualism and presented with amazing attention and customer service. A patient
will go away from the visit feeling as though he has a relationship with the doctor.
The third year the firm will introduce internal medical diagnostic evaluations and treatment at
prices consistent with medical insurance reimbursement. This will enhance the overall push for
health and wellness, adding value to the visit.
Pricing: In order to maximize current profit the firm will continue to charge the per visit fee of
$30 allowed by insurance carriers. The firm will raise prices for cash patients to $45 per visit
and auto accident patients will pay $135 - $165 per visit. As an incentive, the firm will offer
value-added bundled rates to corporate groups that refer employees. The bundle will include an
hour-long relaxation massage prior to the chiropractic adjustment for a rate of $65.
Place: There is currently only one channel of distribution, the main office. The drive to the
office building is lined with attractive landscaping. Parking is underneath mature Live Oak trees
and located conveniently to the building. As you approach the neat, brick and glass medical
offices you see on the upper window a large and readily identifiable logo of an artistic rendering
of a man's bare back (kinda sexy) with the words 'Clearwater Chiropractic Center' in large letters
emblazoned next to it. The wide double glass doors also have a logo for the salon / wellness spa
which shares space with the doctor. Upon entering, you are immediately in a spacious and
modern lobby with ample natural lighting, complete with contemporary and comfortable
furnishings. There is soft new age music playing overhead and a few sedate floral arrangements
and candles set the relaxing atmosphere. On the left is our chiropractic office and to the right is
the spa that has low lighting. An attractive receptionist dressed in a soft colored clinical coat
smiles and says hello. If you already know where you are going, you will seat yourself in the
chiropractor's chairs. Otherwise the receptionist will direct you and offer a glass of water.
Attractive health related magazines are strategically placed. The wait is brief until the doctor
ushers you into a consultation room with a padded therapy breakaway table. The room is painted
in a muted color and is lighted with a home-like floor torchier with a. low-wattage bulb. His
voice and manner are gentle but confident as he asks a few questions of your health concerns. He
listens intently to your answers and offers a suggested treatment, explaining that his goal is to
heal your pain in as few sessions as possible. On agreement you are introduced to heat laser
therapy to relax the back muscles. In a short time, the doctor uses a tool that gently thumps your
spine to facilitate adjustment. Before you realize it, your treatment is finished and you are
escorted to another quiet and low-lighted room where you are treated to a ten-minute shiatsu
massage while covered with a warm blanket. The doctor recommends two more treatments and a
massage next door, which only costs $25 for an hour. He then walks you over to the spa to book
your massage with his 'favorite' therapist, finally shaking your hand with a smile as you depart.
You feel refreshed and ready to face the world!
Promotion: The current logo design is easily identified and understood by the buyer. The logo
and firm name are of a good size and placed conspicuously on the front window of the ‘shop’,
readable from a distance. Each piece of collateral and logo must match the current logo to
reinforce brand visibility. All future advertising must be coordinated to promote objectives and
positioning.
1. To generate ongoing interest, the firm will utilize an interactive ‘Facebook’ blog, and
create an online survey with a prize drawing offering one free shiatsu table massage
along with complimentary gift basket of nutritional supplements on a quarterly basis.
The winner will be posted, with appropriate signed release, on the Facebook thread.
2. The firm will seek web-site links through channel providers.
3. A push for referrals from medical channels will include a ‘killer’ all-natural snack or
dessert delivered to professional offices along with a concise flyer of services offered and
the phrase ‘Now Accepting New Patients’ prominently displayed.
In the initial new patient evaluation there will be a methodical introduction of services available
i.e. personal selling, along with a glossy packet of information for the patient to take home.
Included in the packet will be incentive coupons for future visits bundled with a massage,
incentives for new patient referral, and internet Facebook and Linked In information for the new
patient to ‘friend’ the firm as well as invite others to ‘friend’ the firm.
Attached are supporting marketing activities to create momentum:
May
Since May includes Mother’s Day and National Women’s Health Care Month, the firm will
conduct free screenings and free facials with paid visit for all current female patients for the
entire month. A postcard mailer (see Postcard A) will be sent out at the end of April. The mailer
will include information for the screening, an invitation to bring a friend, mom, sister, or
daughter (new patient), as well as requesting registration by email for a free massage give-away
and consent for future email notifications. This will help capture email addresses for current
patients. Postcards will also be hand delivered to offices of referral sources, particularly where
women go: gynecologists, podiatrists, fitness centers, weight loss centers, hair / nail salons,
cosmetologists, etc. At the conclusion of her visit, each patient will receive a small card of
upcoming events & incentives that she can keep in her wallet for future reference.
Postcard A
June
This month includes Father’s Day and US Open Golf Championship (June 16-19.) The firm will
partner with the nearby golf range to offer free golf-swing analysis with every paid chiropractic
visit. A postcard mailer (see Postcard B) will go out to current male patients in a similar fashion
as the May mailer. There will be an invitation to bring a buddy, and register for a free putting
session give-away via email with consent for future promotions. Hand delivery of cards will
include referral sources and places where men go: MD’s, ER waiting rooms & doctor’s walk-in
clinics, physical therapists, sports locker rooms, sporting goods centers, fitness centers, etc.
After each patient has completed his visit, he will be handed a small card with upcoming events
& incentives.
Postcard B
July
This is the time to celebrate Family Reunion Month with an evening Open House. The focus
will be on raising awareness of household health through bringing the entire household in for
free evaluations. The Open House will include partnering with the varying healthcare providers
in the office park who wish to participate. There will be goodie bags with free coupons and
offerings for dental exams, skin care products, ‘eat well / live well’ information and samples, etc.
The Open House will be conducted in the style of a progressive dinner where patients must get
their card stamped by each provider to enter to win a prize package for a family reunion-catering
package. At each station there will be a snack or beverage and a representative to answer
questions.
August
August is National Spinal Muscular Atrophy Awareness Month. This is a good time to draw
attention from professionals who sit at a desk all day, or health care professionals who strain
their back from patient care. The firm will promote lunch-time brown bag educational sessions
in one large office building or health care facility for each week of August. The sessions will
include live demonstrations of stretching techniques and exercises to promote healthy spines.
There will be small promotional items imprinted with the firm’s logo, location, and phone. Also
available will be a sign-up sheet requesting email addresses from each attendee who will give
permission to receive upcoming event information.
September
The firm supports giving back to the community by aiding children in need. September is back-
to-school month and the firm will partner with the Toronto Blue Jays baseball team to donate
free backpacks to students through the local school. The backpacks will include a postcard
printed with safety tips on appropriate backpack use, and coupons for pre- and post-sport spine
care evaluations / education. This public relations activity will enhance the community concept
of chiropractic care. The firm will seek free press by writing a press release highlighting the
event.
October
The firm will partner for Trunk or Treat on Halloween night with Calvary Baptist Church,
located at 110 McMullen Booth Road. The church has a large membership of over 4000 people,
many of whom are in the appropriate demographic for the market segment. This annual church
event traditionally has cars in the parking lot with their trunks opened and full of candy, offering
a safe place for children to participate. The firm will have goodie bags to distribute with
appropriate treats, and postcards that read “Back pain got you spooked?” The postcards will
have a call to action for a “Skeleton Scan.”
3.8 Marketing Research
Research will be conducted for new patient buyer decision-making habits. With the addition of
revenue, an outside firm will be hired to conduct formal surveys on these habits. Additionally,
surveys of existing patients will add insight to the kind of loyalty programs that will be effective
in patient retention. The firm will continue to develop on-going feedback from referral sources
as to what services are desirable for future revenue streams. This feedback will be gathered
through short surveys requesting input from healthcare providers. The questions will be
designed to discover where there are gaps in providing healthcare whether it be patient load,
degree of illness, limitations on insurance coverage, and location access, to name a few.
4.0 Controls
Costs
Costs must be considered in implementing the marketing plan during this growth phase.
Many of the marketing activities have been designed to minimize cost while increasing
exposure to the community. A stipend of $30 is paid to the spa for each auto injury
patient for massage. Additionally, there are costs associated with this marketing plan as
outlined in the Appendix A. These costs will be monitored monthly to assure compliance
with the budgeted items.
Revenue
As stated in the marketing objectives, with a new auto injury patient addition of 2.7 per
month at 2.4 visits per week, revenue will begin to increase by $355 weekly. If the
desired results are not met, the activities will be re-evaluated for effectiveness and either
adjusted for timing or for the number of targeted population.
Customer retention
The goal is a retention ratio of 50% returning patients. Placing the letter “R” to indicate
‘returning’ next to the patient’s name in the appointment schedule will capture the data.
This number will be easily tabulated at the end of each month with a simple spreadsheet
calculation.
4.1 Implementation
The firm currently employs, on a part-time basis, administrative assistant personnel. He or she
will be instrumental in the implementation of the attached schedule (see Appendix A.)
The assistant will:
Order collaterals for the May and June events in April.
Order collaterals for July event in June.
Procure commitments from the spa for massages & facials.
Procure commitment from the golf pro for golf swing analysis.
The doctor will:
Visit with each health care provider in the office park starting in May to generate good
will and anticipation for the July event.
Initiate personal selling techniques with each new patient.
Make sales calls to attorney’s offices to form a referral relationship.
4.2 Organization
The principle doctor will be doubling as sales personnel for the first six months. After the first
year of marketing objectives is reached, the doctor may choose to hire an outside sales person on
a per diem basis. The assistant will continue in his or her role for supporting marketing activities.
4.3 Contingency Planning
In the event of economic downturn or change in health care provision, there are two things to
consider:
1. The ability of the firm to stay in an office setting.
2. The ability of the firm to continue to market in the manner stated.
There are two things the firm may choose to do in these cases. One would be to reduce visits to
‘house calls’ in order to reduce overhead until such time as the economy turns around. Secondly,
the firm may choose to rely more on word-of-mouth advertising by simply asking for referrals
from current patients.
5.0 Conclusion
In the interest of driving home the message, health matters. It is the firm’s commitment to the
patient, to the community, and to the economy that prevention is the best medicine. Through
chiropractic care, the firm seeks to deliver the highest quality service through an experience that
is truly delightful.
Marketing Management
References
Groves, Dr. Robert, Director (2010). U.S. Census Bureau. Retrieved from :
http://www.census.gov.
Horne, William, City Manager (2011). MyClearwater.com. Demographics and Census
Information. Retrieved from http://www.clearwater-fl.com/info/about/demographics.asp
Panteva, Nikoleta (2011). Still standing: Rising health consciousness among baby boomers will
boost demand. Retrieved from: http://www.ibisworld.com.
Appendix A
Location Office Prepared By S Mullins Clearwater Chiropractic Center Quarterly Marketing Plan
Authorized By
Monthly Budgeted Revenue $12,000 Budg. Rev. $12,000 Budg. Rev $12,000 Monthly Projected Revenue $12,216 Proj. Rev. $12,324 Proj. Rev $12,486
Monthly Advertising/ collateral Budget $481 Adv $551 Adv $816
Monthly Event Budget $85 Event $90 Event $300 Total Monthly Budget $481 Total $551 Total $816
Events May June July Marketing 1 Event Women's Health Day 1 Event Golf Swing Analysis 1 Event events are Date 7-May Date 4-Jun Date for existing #Guests 25 #Guests 25 #Guests and new Audience returning patients & guests Audience returning patients & guest Audience customers. Cost $ 50 Cost $ 50 Cost 2 Event 2 Event 2 Event Family Reunion Open House Date Date Date 9-Jul #Guests #Guests #Guests 100 Audience Audience Audience returning families Cost Cost $ - Cost $ 300 3 Event Spa Day 3 Event Father's Day Cook Out 3 Event Date 21-May Date 18-Jun Date #Guests 10 #Guests 10 #Guests Audience returning patients & guests Audience returning patients & guest Audience Cost $ 35 Cost $ 40 Cost $ - 4 Event 4 Event 4 Event Date Date Date #Guests #Guests #Guests Audience Audience Audience Cost Cost Cost Marketing Cost: $ 85 Total Cost: $ 90 Total Cost: $ 300
Advertising 1 Media 1 Media 1 Media Families First Magazine Dates Dates Dates July issue Cost Cost Cost $ 150 2 Media 2 Media 2 Media Dates Dates Dates Cost Cost Cost
3 Media 3 Media 3 Media Dates Dates Dates Cost Cost Cost 4 Media 4 Media 4 Media Dates Dates Dates Cost Cost Cost Advertising Cost: $ - Total Cost: $ - Total Cost: $ 150
Collaterals Items listed 1 Type direct mail postcards 1 Type direct mail postcards 1 Type correspond Quantity 100 Quantity 100 Quantity to events Cost $ 235 Cost $ 235 Cost listed. 2 Type Flyers 2 Type 2 Type Cost should Quantity 50 Quantity Quantity include any Cost $ 35 Cost Cost invitations, 3 Type event cards 3 Type event cards 3 Type direct mail postcardsflyers, Quantity 50 Quantity 50 Quantity 100 brochures, Cost $ 50 Cost $ 50 Cost 290 cards, 4 Type 4 Type Business Cards 4 Type printing & Quantity Quantity 1000 Quantity mailing. Cost Cost 100 Cost Collateral Cost: $ 320 Total Cost: $ 385 Total Cost: $ 290
Non-Event Advertising 1 Media Website 1 Media Website 1 Media Website Message register for prize giveaway Message register for prize giveaway Message register for prize giveawayList any Timeframe quarterly Timeframe quarterly Timeframe quarterly on-going Cost $ 60 Cost $ 60 Cost $ 60 advertising 2 Media 2 Media 2 Media eg: internet, Message Message Message billboard, Timeframe Timeframe Timeframe magazines, Cost Cost Cost directories, 3 Media 3 Media 3 Media resources. Message Message Message Timeframe Timeframe Timeframe Cost Cost Cost 4 Media 4 Media 4 Media Message Message Message Timeframe Timeframe Timeframe Cost Cost Cost
Advertising Cost: $ 60 Total Cost: $ 60 Total Cost: $ 60
Networking Events & PR Events to be hair salons, women's gyms men's gyms, sports locker rooms Safety Harbor 3rd Friday, June 17
attended or articles to publish.
Outreach Goal should Goal: 8 Goal: 8 Goal: 8 be number Message: women's health Message: men's health Message: family health of sales Cost: $ 16 Cost: $ 16 Cost: $ 16 calls/month.
Total Costs $ 481 $ 551 $ 816