Fresenius Kidney Care: A Comprehensive Marketing Plan for Expansion

This report evaluates the marketing plan of Fresenius Kidney Care, focusing on its expansion into the New York market. It examines market insights, contribution margins, implementation strategies, and CRM plans. The plan aims to address the gap in kidney care services in the northeast region of the United States, particularly in New York City, which has a high demand for such services. The report includes an analysis of expected dollar amounts, linking expenses to strategy, and key success factors. Market research methodologies, including focus groups and questionnaires, are discussed, along with contingency planning and financial projections for the first three years of operation. The goal is to establish a strong market position and increase profitability by providing cost-effective and high-quality kidney care services.

Marketing Plan of Fresenius
Kidney Care

1
Table of Contents
Introduction.................................................................................................................................................2
Fresenius Kidney Care................................................................................................................................2
Numbers, projections, and insight of the new markets in the northeast.......................................................2
Fresenius expected dollar amounts from northeast market..........................................................................3
Marketing plan............................................................................................................................................4
Linking expenses to strategy and tactics..................................................................................................4
Contribution margin................................................................................................................................4
Implementation........................................................................................................................................5
Fresenius keys to success........................................................................................................................7
Market research.......................................................................................................................................7
Contingency planning..............................................................................................................................8
CRM plans...............................................................................................................................................8
Market projections...................................................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

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Introduction
The primary purpose of the paper is to evaluate the marketing plan of Fresenius Kidney
Care that provides all related kidney treatment to the people of New York, US. In relation to this
marketing plan, the paper will also demonstrate the market insights, contribution margin,
implementation and CRM plans related to the marketing procedures. Besides this, the key
success factors, market research, and contingency planning will also be further discussed in this
paper.
Fresenius Kidney Care
Fresenius Kidney Care is a healthcare service company that will provide kidney care
services or transplantation procedure to the people of the northeast region of the United States.
The company will be targeted to expand their business in the northeast region of the US
especially in the New York market. The healthcare center will begin with experienced and
skilled employees of fifty members. With the advancement of time, the employee numbers
increases but their main motive is to provide best services for the people in accordance with
kidney care.
The main factor of choosing this New York market of the United States only because no
such kidney care centers are well established in this market. Therefore their healthcare services
will provide various benefits for the patients or customers (Dreachslin, Weech-Maldonado, Gail,
Epané & Wainio, 2017). Thereby, the implementation of the healthcare facilities people
suffering from kidney problem can easily cure themselves in the healthcare center, and thus it
introduces in the Northeast New York market of the US (Goldberg, Trivedi, Mor, Jung &
Rahman, 2017).
Numbers, projections, and insight of the new markets in the northeast
Fresenius Kidney Care will be going to start their healthcare services in the northeast
region of the United States, and for this, they have selected the New York market. The New
York City has nearly possessed 20 million people, and for this reason, there is a lot of demands
for the kidney care services (Hsiao, Shu, Chen & Hsieh, 2015). In addition, it also enhances the
job sector for the people in this region. From the financial report regarding the job for healthcare
services in New York has fallen that creates a big issue for the people of this region. Lack of

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kidney care services enable the patients to go to various nearby cities for curing themselves, and
this creates problem to the people suffering from kidney related diseases (Ubel, Comerford &
Johnson, 2015). Hence after starting the Fresenius Kidney Care center, the people will thereby
get huge benefits in treatment plans and their problems should diminish a lot from past decades.
Fresenius expected dollar amounts from northeast market
After analyzing the New York Market, the Fresenius Kidney Care center has evaluated
that as the city possess a tremendous lack of health-related services especially for kidney-related
purposes, therefore, this city will thereby help them to enhance the business growth of this
healthcare firm (Alyahya, Hijazi & Harvey, 2018). Therefore the healthcare firm will expect a
high dollars amount from this northeast market of the United States. Hence, with the help of this
marketing plan, the Fresenius Kidney Care has made the expected dollars amount from this
northeast market, and it has been shown in the graph below:
Month
1 Month
2 Month
3 Month
4 Month
5 Month
6 Month
7 Month
8 Month
9 Month
10 Month
11 Month
12
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
Expected dollars amount
Sales Expenses
Graph 1: The expected dollars amount of the Fresenius Kidney Care in the northeast
market of New York
The graph demonstrates the expected dollars amount of this healthcare firm in the new
northeast market of the US. From the graph, it is clear that at the beginning of the firm the

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expenses rate are high because various types of equipment are required for setting the healthcare
procedure. However, with the advancement of time their expenses rate increases and the sales
rate in comparison to that decreases. Hence following this procedure, the firm has eventually
increased their sales rate after one year at a high rate.
Marketing plan
Linking expenses to strategy and tactics
The marketing plan of Fresenius Kidney Care is made for getting a clear idea about the
market of the northeast US. In order to increase the sales rate and also to build a good position in
this healthcare firm in the New York market some linking expenses tactics as well as a strategy
should be made by the firm. As it is a healthcare firm that provided all sorts of treatment related
to the kidney and thereby in the beginning expenses of buying medical things are high (Chang et
al., 2016). Therefore to maintain the expenses and sales rate some strategy should be made by
the firm. One of the strategies is that in the beginning the firm should make expenses on the
kidney treatment-related product and appoint skilled employees of not more than 50 members.
By this strategy, although they face some problem in management procedure, this will be
helpful for lowering the expenses. Apart from this, at the beginning of the healthcare firm, the
management team should offer cost-effective services so that every people suffering from kidney
related disease can easily afford the treatment procedure. Therefore, with the help of this tactics,
the firm can able to make a good position in the market and thereby with enhancement of time it
eventually increases the business sales rate in this northeast market of the United States.
Contribution margin
Contribution margin refers to the incremental profit that generated for each selling of the
healthcare services to the people (Purcărea, 2016). The contribution margin is thereby subtracted
the variable cost from the selling price or the revenue thus obtained (Sciulli & Missien, 2015).
Therefore, with the help of this marketing plan, the contribution margin of this Fresenius Kidney
Care healthcare center has been denoted in accordance with the three consecutive years. Hence,
to calculate the contribution margin of this kidney center care the following table is provided that
determine this margin on a yearly basis.

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Fresenius Kidney
Care profitability
ratios
Year 1 Year 2 Year 3
Gross margin 15.42% 18.58% 21.85%
EBITDA margin 14.32% 18.66% 20.14%
Operating margin 6.39% 12.65% 16.54%
Pre-Tax Margin 7.16% 10.25% 13.45%
Net margin 3.52% 7.41% 5.26%
Table 1: The contribution margin of the Fresenius Kidney Care for three consecutive years
From the table, it is seen that with the advancement of time the contribution margin of
this kidney care firm has been increases. The company will be going to start their healthcare
center in the northeast market of the United States, and therefore they made an estimated
contribution margin in accordance with the three consecutive years. The table suggested that
when the healthcare center stands in a good position in the New York market, then their
contribution cost automatically increases from the previous year.
Implementation
The following milestones will identify the Fresenius Kidney Care key marketing
programs. This provides the implementation of one time budget of this healthcare center.
Milestones
Advertising
procedure
Start date End date Budget (in
dollars)
Employees
position
Department
Completion of a
marketing plan
1/1/2019 2/1/2019 0 Manager Marketing
1st advertisement
campaign
1/1/2019 30/6/2019 22747 Manager Marketing
2nd advertisement
campaign
1/7/2019 30/12/2019 27899 Manager Marketing
1st direct mailing
campaign
1/1/2019 30/6/2019 4789 Manager Marketing
2nd direct mailing
campaign
1/7/2019 30/12/2019 5147 Manager Marketing
The 1st direct sales
effort
1/1/2019 30/6/2019 17894 Manager Marketing
The 2nd direct
sales effort
1/7/2019 30/12/2019 22587 Manager Marketing
Name me 1/1/2019 15/1/2019 0 ABC Department

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Name me 1/1/2019 15/1/2019 0 ABC Department
Other 1/1/2019 15/1/2019 0 ABC Department
The total budget
for advertising
101,063
PR Start date End date Budget (in
dollars)
Manager Department
Name me 1/1/2022 15/1/2022 0 ABC Department
Name me 1/1/2022 15/1/2022 0 ABC Department
Name me 1/1/2022 15/1/2022 0 ABC Department
Other 1/1/2022 15/1/2022 0 ABC Department
Total PR Budget 0
Direct marketing Start date End date Budget (in
dollars)
Manager Department
Name me 1/1/2022 15/1/2022 0 ABC Department
Name me 1/1/2022 15/1/2022 0 ABC Department
Name me 1/1/2022 15/1/2022 0 ABC Department
Others 1/1/2022 15/1/2022 0 ABC Department
The total budget
of direct
marketing
0
Web development Start date End date Budget (in
dollars)
Department
Name me 1/1/2022 15/1/2022 0 ABC Department
Name me 1/1/2022 15/1/2022 0 ABC Department
Name me 1/1/2022 15/1/2022 0 ABC Department
Other 1/1/2022 15/1/2022 0 ABC Department
The total budget
for web
development
0
Others Start date End date Budget (in
dollars)
Department
Name me 1/1/2022 15/1/2022 0 ABC Department
Name me 1/1/2022 15/1/2022 0 ABC Department
Name me 1/1/2022 15/1/2022 0 ABC Department
Others 1/1/2022 15/1/2022 0 ABC Department
The total budget
of others
0
Totals 101,063

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Fresenius keys to success
The keys to success in this Fresenius Kidney Care business are as follows:
Value of markets and percentage of the market is owned- The Fresenius Kidney Care
has the ability to cure the peoples who have to suffer from kidney related diseases in the New
York City of the United States. As they provide health services, so it will help them to establish
in this corresponding market easily, and thereby they need about 5051 dollars for starting the
business procedure (Washington, Farmer, Mor, Canning & Yano, 2015). With this amount, the
healthcare firm will thereby constitute 2% of the respective market in New York City. However,
with the advancement of time and by following various strategies the firm will able to increase
their budget by at least 5% from their previous year.
Controlled growth- Growth should be controlled with the proper executing strategy
because expanding the business in a new market is not an easy procedure and therefore proper
planning is necessary (Rossow, Ivanitskaya, Fulton & Fales, 2015). In order to increase the
profitability and market share, the healthcare center should strategically manage their treatment
procedure and also the cash flow process. Therefore, by following this strategy, the center can
easily increase their business position and market share in New York City.
Market research
In accordance with the New York City, the Fresenius Kidney Care firm has mainly
concentrated on two types of market research of which one is focusing on the group of eight to
ten people and the other on the market information of the perspectives consumers. To know
about the market needs regarding healthcare facilities, predetermined questionnaires were made,
and these questions were asked to the focus group. Besides this, a free-flow discussion format
was also provided that help the firm to know about the insight and information regarding the
healthcare services of the selected city in the United States. In other words, questionnaires were
also provided to the prospective customers to know about the market information of this New
York City.
The questionnaires were thereby submitted to a total number of 150 potential consumers,
and the responses show that mainly the elderly adults have participated in this research
procedure. The response rate is quite higher than that of the expected rate, and this determined
that after starting the healthcare center in this area not only the peoples are benefited, but the

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overall business will also enhance their profitability within few years (Dillon & Mahoney, 2015).
As it has been mentioned earlier, the expected market owned by the healthcare firm is about 2%
which with the advancement of time can increase in the future.
Contingency planning
The Fresenius Kidney Care provided all sorts of kidney care services to the peoples
suffering from kidney related problems especially in the northeastern side of the United States
and therefore starting of the healthcare firm the contingency planning are important for the firm.
The contingency planning includes both the risks and difficulties as well as the worst case risks
of this healthcare firm (Simon-Tuval, Horev & Kaplan, 2015).
Risks and difficulties of this healthcare firm are as follows:
 Challenges generated due to the sufficient visibility of healthcare products in the respective
New York market
 The unsuccessful approach of the key strategic alliances
 Overly debilitating and aggressive actions by the competitors (Hollak et al., 2016)
Worst Risks of this healthcare firm are as follows:
 Determining that the respective business failed to support the current market ongoing
process
 Inability to enhance sufficient capital
 Lack of equipment for treating the respective patient
CRM plans
In today's environment customer retention is increasingly challenging for healthcare
services, and therefore about 30% of consumers have changed their doctors as well as clinics due
to negative consumer service experiences. Therefore the plan of this Fresenius Kidney Care firm
is to understand the patient's conditions and then offer the particular treatment for them. The
CRM plan of this healthcare firm will be to integrate the records of every patient by using
electronic record so that the management team can easily facilitate patient care, check-in process
and also patient billing procedure (Whalen & Boush, 2014). Another CRM plan includes the fact
that the management team will record all the back office project accounting system as well as the
enterprise content management system respectively.

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In addition, the healthcare firm will also use CRM applications so that the management
team can easily mitigate and prevent the medical errors and also their crushing impacts to their
patients, public perceptions, their families and the trust of their communities (Ishfaq & Raja,
2015). Besides this, the CRM data integrated with both clinical data and medical history so that it
can provide a direct impact on the delivery procedure of the medical services (Elrod &
Fortenberry, 2017). Therefore, with the help of these CRM plans the Doctors, pharmacists,
nurses, and other medical staff members have always be relied on training, skills as well as
technology in order to provide effective and safe care for the patients those who have suffered
from kidney related problems.
Market projections
Chart 1: The various healthcare services will be provided by the Fresenius Kidney Care
(Source: Whalen & Boush, 2014)
The chart demonstrates that self-management will be the most important procedure for a
patient suffering from kidney-related health problems. In addition, the chart defines that
prevention is the best approach that helps the patient to get rid of any kidney related problems.
Besides this, a proper balanced should be maintained in terms of health literacy and coordination
of care so that it helps the patient to understand the respective problem they face. Therefore, it is
clear that the main projection of the healthcare center is to provide proper patient care and
thereby teaches them about the healthcare procedure that they should use to prevent themselves
from any kidney related problems.

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Chart 2: The projections of this healthcare firm in relation to the new market of New York
City
(Source: Elrod & Fortenberry, 2017)
The following chart defines that the main focus of this healthcare center is to attract the
people of New York City and thereby it constitutes about 46.8% of the people of this market. In
addition, it also is seen that the solid strategy is to constitute 28.5% and 24.7% of the US long
distance and outside of US population. Therefore, the chart suggested that the Fresenius Kidney
Care projections are mainly lying on the people living in the New York City and from this, it is
expected that they will capture two percent of the total New York market. However, with the
advancement of time, their market capture increases from a past time. In other words, after
reviewing the market of this northeast region, it is clear that the Fresenius Kidney Care can make
2304 dollars of the amount as a profit at the end of the first year and this number will increase
after each year.
Conclusion
The New York market is chosen for the marketing plan of Fresenius Kidney Care that
offers all kidney related healthcare services to the people of this region. The marketing plan
demonstrates the insights of the market along with the firm marketing procedure that should be
helpful for the firm.

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