Market Positioning Strategy for Vinmec

The assignment requires analyzing Vinmec's market position, identifying target markets, creating a brand blend, and developing a positioning statement. The purpose is to understand how Vinmec can differentiate itself in the Asian medicine market and achieve business success.

10190070_ME_A2.2_Hoang Nhat Tan

Contents
INTRODUCTION........................................................................................................... 3
MAJOR FINDINGS........................................................................................................ 4
Task 1: Marketing Mix............................................................................................. 4
Task 2: Marketing plan and SWOT...........................................................................8
CONCLUSION............................................................................................................ 13
REFFERENCES........................................................................................................... 14

INTRODUCTION
As the flow of business grows, marketing becomes an integral part of every business.
Companies increasingly appreciate the importance of marketing departments, having
strong contacts and aiding the marketing department as a place to connect other
departments such as sales, development, and finance. In this report, I will focus on
analyzing the marketing aspects of two major medical companies in Vietnam, Vinmec
and Family Medical Mractice (FMP).
Vinmec is a non-profit healthcare system developed by Vingroup - a leading private
economic group in Vietnam with the mission of "Caring with talent, ethics and empathy".
Born in 2012, Vinmec Currently, 7 general hospitals have been put into operation and
developed a development strategy with 10 hospitals across the country by 2020. With
outstanding facilities, a team of leading specialists and doctors; Applying the world's
latest treatments and excellent service quality, Vinmec has now become the international
standard healthcare address in Vietnam.
As the first foreign-owned medical service provider in Vietnam, Family Medical Practice
was originally established in Hanoi in 1994. However, the more thereafter, the more the
clinic grew. as well as increasing in quantity. The clinic has 100% foreign capital and is
built according to international standards. Therefore, when going to the clinic, the patient
will be provided with the best medical examination and treatment services. From an
original clinic, but now Family Medical Practice has expanded its branch. The clinic
facility is located in Ho Chi Minh City, Da Nang and ambitious to open more clinics to
serve the needs of medical examination and treatment in many places.

MAJOR FINDINGS
Task 1: Marketing Mix
The 7P Marketing model is one of the ideas that go hand and hand with the corporate and
organizational leadership trend of motivating marketing. This 7P marketing model
consists of three steps: 1 process is '4P,' i.e. 4 simple marketing planning elements. It is a
series of customer solutions (or strategies), from ideas to product creation, in which the
product is an unforgettable variety of benefits; the next class is marketing solutions,
ranging from value to discount to consumer price; the next type is delivery and revenue.
Marketing mix: The marketing mix refers to the collection of factors or techniques used
by a company to sell its label or service. The 4Ps are the traditional advertisement mix-
price, brand, promotion and location. Today, though the promotional mix also includes
many other Ps as vital mixing elements such as branding, placement, individuals and
even politics.
1. Products
Vinmec is located in the business ecosystem of Vingroup, a group with the largest
financial potential and scale in Vietnam, so Vinmec is a large-scale invested hospital,
modern facilities. with a team of leading medical doctors in the world. Vinmec provides
medical service packages with different medical departments such as general clinic, ENT,
psychiatry, gynecology, maternity ... Moreover, Vinmec is the first hospital to develop a
Scientific research institutes in the System have been established as "Stem Cell Research
Institute and Genetic Technology", "Cancer Research Institute", ... combined with Vinuni
University with non-profit purpose towards strong development of Vietnamese medicine.
Vinmec provides medical examination and treatment packages for companies and
organizations in order to provide health care services for companies to have a healthy
working environment. In addition, Vinmec provides insurance services with individual
service packages and membership card issuance, although depending on the need to use
vinmec provides various types of insurance on health issues such as: heart health,
accidents, bones and joints, ...

Located in the same high-end hospital segment, FMP is better known for its health care
services targeting individual customers and households. The use of modern technologies
allows FMP to examine and treat a wide range of services and departments such as the
Orthopedic Trauma Specialist and the chiropractor department, the Radiology Diagnostic
Specialist, Specialties: Dermatology, Emergency Medicine, Pediatrics, Osteoarthritis ...
Another special feature of Family Medical Practice clinic is providing emergency
services * 9999 for emergency guidance. emergency by phone. If needed, there is also a
modern ambulance designed as a mobile operating room to save the patient's life.
2. Price
As a specific industry with human health products, so the calculation of prices in the
medical field is also based on many different factors. Health is increasingly being
mentioned more and more in modern life, so the prices of health care services also
increase rapidly, divided into different classes. With the advantage of being a private
hospital invested in modern facilities, equipment and 5-star service, Vinmec offers a
relatively high price compared to public hospitals, specifically 1.5 to 2 times higher.
However, vinmec also launched special incentive packages such as issuing membership
cards with different levels depending on the needs of use to stimulate the need for
medical examination and treatment of customers, in addition vinmec also offers life,
illness and injury insurance packages for customers to reduce costs when there is a
physical incident. The prices are also reasonably allocated based on the purchasing power
of the market, and Vinmec regularly offers incentives for large-scale enterprise visits to
help solve health problems for companies.
In the same segment with Vinmec, FMP also offers quite high prices compared to public
hospitals, different from Vinmec, FMP uses the dollar to set the price instead of Vietnam
dong. FMP encourages customers to book appointments in advance, to participate in
purchasing promotional packages to reduce medical expenses. In addition, FMP also
provides vouchers to use the services at FMP with preferential prices. In summary, the
price is quantified based on the health of the customer, the hospital's procedures and
treatments as well as the necessities of the examination, in addition to the prestige and
quality Service quantity is also an important factor.
3. Place
Vinmec is located in the Vietnamese ecosystem of the vingroup group, so the size of the
hospital and clinic is extremely diverse. With a system of 7 hospitals and 6 clinics in big
cities such as Hanoi, Ho Chi Minh City, Da Nang, Quang Ninh, Phu Quoc, Nha Trang
and Hai Phong. With the orientation of developing 10 hospitals in the coming years,
Vinmec has been building more medical facilities across the country to serve the needs of
the people. In addition, Vinmec or FMP both provide high-efficiency, fast and 24/7

ambulance service to connect users with the hospital. With the development of modern
technology, vinmec also applies remote examination procedures via internet to guide and
provide medical information in a more convenient way for its customers.
The scale of FMP stops at the clinic level, established the first facility in Hanoi, FMP has
undergone more than 20 years of development and formation. Currently, with 3 branches
in Hanoi, Ho Chi Minh City and Da Nang, FMP provides services to customers in big
cities with a high standard of living compared to the general premises.
4. Promotion
To meet overall strategic goals, vinmec uses unique marketing strategies in the health
industry, combined with the sprawling real estate ecosystem of vingroup, vinmec has the
best reputation and coverage. Focusing on product quality instead of price is the perfect
strategy to change user habits towards using private hospital services. Besides attractive
advertisements, Vinmec is also active in community building and development,
responding to volunteering activities in rural areas. Many non-profit children's
vaccination programs are conducted to develop the health of the young generation in
Vietnam.
FMP also has many incentives for customers such as 30% discount when opening
membership cards, organizing seminars on public health issues. Such events are also
opportunities for FMP to reach out to customers.
5. People
Staff at medical facilities like Vinmec and FMP are paramount. The team of nurses and
doctors is a key factor in the success of a hospital, with a world-class reputation, it is not
difficult for Vinmec and FMP to attract customers who believe in their service quality.
The marketing team has a duty to help spread the great value that the team of doctors
brings to attract customers. Therefore, the recruitment of employees at vinmec is
extremely strict, it is difficult to select excellent employees who deserve high
remuneration. The training phase is also extremely focused because health care attaches
great importance to the right information, so the marketing staff needs to have a strong
mentality and make the right decisions.
Likewise, at FMP, they found that interacting and listening to customers in particular is
very important in marketing plans in general and hospitals in general, so their recruitment
process is very analytical. analysis and transaction consistency. Best customer support.
6. Physical evidence

Vingroup has invested in the system of Vinmec International Hospitals with modern
medical equipment, equivalent to leading hospitals in the US, UK, Germany, Japan and
Singapore ... to support diagnostic and treatment. The "giants" in the medical industry are
accelerating, investing significantly to "attract" patients to treatment through the system
of modern facilities, equipment and machines. However, the private health system has
also proved to be no less competitive, even beyond the stereotypes about private health,
there are steady developments towards academic health. Being ready to invest in a
modern medical equipment system is one of the fundamental steps to achieve this goal.
Because besides good human resources, modern and smart system of supporting
machinery and equipment is the prerequisite for improving quality fairly. Safer,
minimizing the risk of complications and infections after surgery, pain relief, less blood
loss, fast recovery, aesthetics ... are the advantages of robotic surgery. Accordingly,
Vinmec has applied this method since mid-2018 with the famous robot Da Vinci.
7. Process
The medical examination and treatment procedures at Vinmec are standardized according
to international procedures. The patient needs to prepare identification documents when
visiting the hospital, offer preferential promotions at the front desk and move to the
medical examination area. After payment of hospital fees. A detailed report on your
health will eventually be sent back in 7 working days. This helps the patient avoid
waiting for long-term results in the hospital, but is detrimental to asking questions
directly to the doctor.
At Family Medical Practice international clinic, the examination and treatment process is
fully applied as follows:
→ Step 1: The patient comes to the patient counter and tells the information.
→ Step 2: Wait for the STT to enter.
→ Step 3: The doctor presents a clinical examination for initial diagnosis as well as
indication of the subclinical examination.
→ Step 4: The patient pays the fee and then performs the laboratory examination.
→ Step 5: Laboratory examination.
→ Step 6: Buy medicine and pay the cost.

Task 2: Marketing plan and SWOT
Company overview:
Vinmec is a non-profit health care organization founded by Vingroup-a leading private
economic community in Vietnam with the goal of "Caring with talent, ethics and
empathy"
Founded in 2012, Vinmec currently has 7 general hospitals in service and has developed
a growth plan for 10 hospitals across the country by 2020. With excellent facilities; a
team of leading experts and doctors; continuing to implement the new treatment
strategies of the world with perfect service efficiency, Vinmec has so far been the
international benchmark healthcare address in Vietnam.
Over the years, Vinmec has been continuously working to validate the great goal it
pursues by being the First private health system in Vietnam: functioning for non-profit
purposes. There are 2 hospitals that follow JCI criteria-the most strict safety standards in
the country. There is a tendency to spend methodically in study and science and
technology to increase the standard of medical tests and care. On the rise, Vinmec has
been structured into 3 closely linked components:
1. Hospital chain
2. Research Institutes
3. Training system (in collaboration with VinUni University).
Vision: Vinmec is committed to developing an international medical system through
breakthrough research, in order to deliver excellent treatment quality and excellent care.
Mission: Caring with talent, ethics and empathy.
Core values: 4 letters C-A- R-E with the meanings:
 Creativity - Creativity: Constantly creating and innovating to bring the best
solutions to patients.
 Accountability: Responsible for the highest degree to patients and their family
members for ethics, skills, knowledge and professional standards at Vinmec.
 Reliability - Confidence: A commitment to doing only the best for the patient,
providing the highest reliability to the community.
 Excellence - Perfection: Towards the highest quality of service and the best
medical examination and treatment process.

SWOT
SWOT analysis (analysis of strengths, weaknesses, opportunities and threats) is a method
for recognizing and evaluating internal and external factors that may affect the viability
of a plan, product, venue, or entity. For a strong enterprise like Vinmec, promoting
strengths and opportunities and reducing weaknesses, and facing challenges are
indispensable for the company.
 Strengths:
Vinmec - the largest private hospital in Vietnam at the present time strengthens its
advantages through: Their leaders are experienced in business as well as in healthcare. To
get the position today, the hospital has recruited the leading medical doctors in Vietnam
as well as internationally, they meet the high requirements, great precision and
meticulousness in the medical industry. Vinmec's remuneration policy is also considered
to be much better than the common ground, and the salaries of nurses, doctors and staff
are higher than in public hospitals.
In addition, with the support of Vingroup, Vinmec has developed extremely strongly
according to the ecosystem across Vietnam, Vinmec's image has been promoted to a
position as the largest private hospital in Vietnam.
 Weaknesses:
However, a thriving business is one that can capture its weaknesses and improve it.
However, a thriving business is one that can capture its weaknesses and improve it.
For Vinmec, this is a hospital that has weaknesses in a bulky management system,
lacking close links between other hospitals. In the prevention of Covid 19, the leading
public hospitals in Vietnam had a meeting to come up with a solution, due to lack of
connection, Vinmec did not participate. Next, Vinmec is in the high-end segment with
expensive prices, so people in the middle and low classes cannot access.
 Opportunities:
With 7 hospitals, 6 international clinics spread across the country with more than a team
of 600 doctors, more than 1,900 nurses and more than 150 pharmacists - Vinmec is
currently the largest private healthcare system in Vietnam. To achieve this goal, Vinmec
has invested heavily in the human factor - from the team of doctors, nurses, pharmacists
to personnel in the administrative and service sectors ... All staff at Vinmec has many
opportunities to learn and practice to improve knowledge and experience at home and

abroad. From the project, a series of Vinmec doctors, pharmacists and nurses were
granted scholarships to study at home and abroad, exchanging expertise with leading
experts from medical training institutions. popular. Vinmec also invests in full
scholarships for personnel to study for master's and doctoral programs at top universities
and hospitals in the US, Australia, Japan, France, ...
Moreover, Vinmec also takes a short cut when building a medical research complex to
invent inventions that help people, so Vinmec has the opportunity to become a hospital -
a leading research center. Vietnam, providing the best quality medical services.
 Threats:
Although the demand for medical examination and treatment is huge, international or
private hospitals cannot avoid the laws of competition in the market. Concerns about
competition from low-cost public hospitals or private hospitals in the same segment force
Vinmec to make a difference.
Product quality does not have too many differences, international private hospitals use
modern equipment and technology, so the treatment process for patients has many
similarities, which leads to Vinmec may lose its advantage because its fixed price is
higher than the market.
In addition, the slow market growth due to birth control or family planning policies and
the rapid rise of other private hospitals have also intensified competition.
Marketing objectives:
Firstly, with its development advantages, Vinmec's goal is to perfect the remote medical
system. As a leading private hospital in Vietnam, located in the development ecosystem
of Vingroup, Vinmec has a strong foundation and abundant financial potential, develops
remote medical technology to help people cost-cutting disease and travel time will attract
more customers.
Secondly, with the global health situation in the time of Covid's epidemic, Vinmec has
medical research facilities with modern technology, which can cooperate with
Vietnamese government and foreign partners to research and development of vaccines to
prevent the spread of Covid 19. In cases where foreign institutions have researched and
developed vaccines, Vinmec has financial potential as well as modern facilities. investors

importing vaccines for distribution in Vietnam. As a result, the value brought by the
community will be extremely great, and accordingly the image and position of Vinmec
will be enhanced.
Segmentation, Targeting and Positioning:
- Segmentation: market segmentation is a concept that goes against mass marketing
and marketing a wide range of products. The goal of market segmentation is to
break down the market into sections that can better capture each customer file.
(Solution.com.vn, 2019). Segmentation by customer size: In order to meet the
needs of different scales, Vinmec identifies customers by scale such as individual
customers, households and companies, collectives. Specifically, Vinmec focuses
on the individual customer segment and companies, for individual customers, the
maternity and maternal care services account for a large market share and is
provided with many modern equipment. The hospital's maternity ward's reputation
is well-known. For the general medical service providing in the company that
offers outstanding profits to bring profits to hospital growth.
- Targeting: A target market belongs to a group of potential clients whose products
and services a business wants to sell to. The category also contains specific clients
for whom the promotional efforts of a company are focused. A target customers
for a product or service is one part of an overall market. (Investopedia, 2019)
Relating to Vinmec, identify target customers through standards of leads. Through
the data of users visiting the hospital's website, identifying the needs of customers
and then offering incentives to reach customers.
- Positioning: Market positioning depends on its ability to influence the customer's
understanding of a brand or product compared to peers. The purpose of business
positioning is to develop an image or identity of a brand or item for customers to
interpret it in some way. (Institute of Corporate Finance, 2019)
Brand positioning is an important step to improve the image of the hospital in the
eyes of the people. Works on customers' imagination, puts customers at the center
and develops services based on those needs. Vinmec understands and always
focuses on developing the brand of a private international standard hospital, with
the outstanding development of Vietnamese medicine as well as the world, the
latest technology is also equipped with a team of medical doctors. The most
experienced doctor has brought brand value to Vinmec hospital.

Qualities of products
Vinmec FMP Bach Mai
We can see that, despite being in the low price segment, with the quality of
medical examination and treatment that has been tested over the years, Bach Mai
Hospital is still the leading flag in the Vietnamese health sector. Vinmec has a
focus on high-end customers, so despite the competition, it is still developing quite
well.
Tactics and actions:
a. Tactic:
• Goods: the production of their own goods is an important necessity at this
moment, because the working apparatus is not very effective, corporations need to
make attempts to produce more products and have rewards for each product.
• People: using human capital as a foundation for business growth, but the bank
also needs human resources. The behaviors of the employees and the customer
service of the departments of the company need to be changed.
• Price: the basis for the valuation of the market on the basis of the macro-
economic base, PESTLE and internal variables. As a pioneer in the financial
market, thus, businesses need to review the price of each commodity and give
priority to growing rewards for each service they offer to their customers.
b. Act:
• Products: Companies need to encourage product creation in order to introduce
product development. For example, at a monthly conference, the organization has
P
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to ask the employees of the product marketing department about the possibility of
a product that would offer more benefits and fair pricing to customers.
• People In general, in order to strengthen the workforce structure of the bank, it is
important to provide tighter discipline for each division of workers in particular,
the preferential schemes would be strengthened to raise awareness. From staff to
clients. In addition, customer support personnel must be educated more
extensively to provide consumers with comfort during purchases.
• Price: Retail pricing relies on a variety of internal and external variables, so it is
important to inform the effect of both factors on the customer's appetite for the
product to be placed on the market. They will for example, increase the
effectiveness of card protection in private hospitals. This helps clients feel more
optimistic about the company and makes them want to use Vinmec instead of
other hospitals.
-> By adjusting the components of the marketing mix, the overall aim is to please
the consumer, while increasing job productivity, encouraging quality marketing,
improving revenue and helping the sales department. Achieve a lot of targets and
rewards for your company.
CONCLUSION
The marketing mix is an ideal business support mechanism and the strengths and
prospects for companies. The brand's marketing strategy not only does this, it also
minimizes the shortcomings and problems of the company. Since then, Vinmec
has continued to develop its marketing campaigns and to support the targets set by
the organization. Vinmec is a corporation that seeks to assert its place in the
market for Asian medicine. Finally, on the basis of a brand blend, they will
identify the success of the company by the efficacy of the campaign.

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