University Report: MKT4001 Analysis of BUPA Marketing Strategies

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This marketing report provides a comprehensive analysis of BUPA, a leading international healthcare company. The report begins with an executive summary and table of contents, followed by an introduction outlining the scope of the analysis. Section 1 delves into BUPA's marketing environment and planning process, including an overview of the company, its marketing planning components, and a PESTEL analysis of the BEAM concept. It also examines the extended marketing mix (7Ps) and its contribution to effective marketing planning. Section 2 focuses on segmentation, targeting, and positioning (STP), exploring segmentation strategies for both consumer (B2C) and business (B2B) markets, targeting methods, and positioning recommendations for the new BEAM concept. Section 3 concludes with a marketing mix analysis, followed by a list of references. The report examines BUPA's competitive landscape, political, economic, social, technological, environmental, and legal factors, providing insights into the company's marketing challenges and opportunities. The report also highlights the importance of marketing mix elements like product, place, promotion, price, people, process, and physical evidence in attracting customers and achieving business goals. The report emphasizes the need for BUPA to continuously adapt its marketing strategies to maintain its position as a market leader in the healthcare industry.
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Marketing Report: BUPA
Student Name:
University Name:
Date: 26 June 2019
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Executive Summary
BUPA is the international health and Care Company, including around four million
members in approximately 200 countries of the world (Shalbafiyan, 2015). It has hired
approximately 40,000 people in the UK and provides private medical insurance, insurance for
income protection, critical illness insurance along with a complete range of treatment in about
35 private hospitals in the UK. The organisation is very successful in the UK (Smith,
Fischbacher and Wilson, 2017). Along with this, the industry of private medical depend on it
nowadays. In outcome to this, around 17 British provident association has connected to offer
the private healthcare for all the essential public, such as BUPA or British United Provident
Association. Nevertheless, it’s hugely from the last two decades that more upsurge is viewed
within the organisation prominence, such as AXA PPP Healthcare, BUPA, etc (Smith,
Fischbacher and Wilson, 2017).
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Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Section 1 – Marketing Environment and Planning Process.......................................................4
a) About Bupa and its marketing planning components........................................................4
b) Environmental audit in the form of a PESTEL analysis for the BEAM concept................4
c) Extended marketing mix 7Ps and how the development of the extended marketing mix
contribute to effective marketing planning for BEAM...........................................................7
Section 2 – Segmentation, Targeting & Positioning................................................................10
a) Segmentation of new BEAM concept for consumer (B2C) AND business (B2B) markets.
..............................................................................................................................................10
b) Targeting methods............................................................................................................10
c) Positioning and recommendation on how the new BEAM concept would be positioned in
the consumer OR business market........................................................................................11
Section 3 – Marketing Mix Analysis.......................................................................................11
References................................................................................................................................15
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Introduction
Though the private health care demand coming through the Arabic countries is getting
dwindled, including the state of art development facilities in the countries, it is noted that the
internal demand for providing the private healthcare has grown continuously (Shalbafiyan,
2015). In the last fifty years, it is indicated that BUPA has still stayed as the largest, leading
and independent healthcare organisation, including 4 million members in around 200
countries all over the world, with 40,000 employees and 35 hospitals in the UK (Smith,
Fischbacher and Wilson, 2017). This report will try to analyse the marketing environment
and process of planning; Segmentation, Targeting & Positioning, and marketing mix analysis
of the company.
Section 1 – Marketing Environment and Planning Process
a) About Bupa and its marketing planning components
BUPA differentiated products and service development, by the healthcare provision
and promotion of healthcare permit customers to control their health as the partnership for a
lifetime (Smith, Fischbacher and Wilson, 2017). BUPA focuses on building healthcare
leadership, which also relate to companies, individuals, and healthcare providers for
enhancing the quality and healthcare system governance and improve affordable healthcare.
BUPA is the popular provider of the healthcare services, and the company has experienced
the vital growth in revenue generated from home care services (Smith, Fischbacher and
Wilson, 2017). The company rely over developing the marketing plan for initiating its
operations and for that they had conducted the survey and market analysis.
b) Environmental audit in the form of a PESTEL analysis for the BEAM concept
PESTEL analysis
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Political- a complete deferred tax provision is created as needed through the Financial
Reporting Standards (FRS) (Dehiman and Sharma, 2010). The government expects to offer
access to disabled individuals. Every policy of the government will lead to a significant effect
over the rules of business in BUPA, so the policies are to raise the hospital risk factors
(Dehiman and Sharma, 2010). The government of the UK has also established the public
health system for its citizens (Smith, Fischbacher and Wilson, 2017). UK government not
only support the public healthcare system, but it also tries to stabilise the healthcare
operations in order to initiate the private hospital’s health development. In the private, public
hospitals situation, the medical institution of the UK is required to go for the right space
development (Smith, Fischbacher and Wilson, 2017).
Economic- at the time of inflation, people used to have less amount for spending on leisure
activities (Dehiman and Sharma, 2010). It is analysed that high rate of interest implies that
people will have less expenditure. It was noted that only 30% of the total households through
their income would spend £2 on every week on medical insurance (Smith, Fischbacher and
Wilson, 2017). It is analysed that the highest earners will be most likely to receive the
medical insurance under their remuneration package, where else few staff will offer the
benefits for the low paid and casual, permanent employees (Connell, 2016).
Social- it is noted that in the present time, more and more individuals are getting ill each day
minor or either severe, and NHS waiting list is usually too long. They are initiated to be a part
of the private hospitals and healthcare, in order to have a better recovery and best services. It
is noted that sometimes, due to the insufficient funds, public hospitals failed in fulfilling the
requirements of patients (Smith, Fischbacher and Wilson, 2017). For the purpose of
maintaining the system of public health, hospitals should be run in an effective manner
(Torabi, 2011). UK government has also increased the private funding for the healthcare
system so that all the private hospitals can get more profits, and these profits will come back
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into the society, lead to the reduction of burden over the public hospitals (Torabi, 2011). All
these actors have made BUPA have enough funds, optimisation and equipment in the
healthcare environment, where else the reputation will also increase for hospitals to attract
more customers (Smith, Fischbacher and Wilson, 2017).
Technology- any information is shown over the internet for easy and fast access. It also
includes various advanced technologies and equipment’s, which make the patients access it
easy and comfortable, and BUPA service and clinical quality are made available online with
all other details required by patients (Odile, 2015). BUPA not only includes the most
advanced equipment’s for medical, but it also includes the world leading technology of
medical science and doctor of medicine are also highly talented and skilled in various
medical areas, which offer the world-class treatment to their patients (Ayoobiyan, 2012).
Through this excellent conditions of treatments, it enhances the therapeutic impact, where
else the low cost make the patients all over the world to get attracted towards it to take the
best treatment (Odile, 2015). Mainly the people from Asia come here to take their treatment
at affordable cost, as this hospital has great appeal (Ayoobiyan, 2012).
Environment- if inflation gets an increase, this result into the loss of a job, which implies that
there will be high state advantage payments as well as low tax revenue; therefore, the
commitment towards BUPA will be analysed (Afshani, 2010). Globalisation forces also
impact the UK healthcare industry, BUPA medical outsourcing. The yearly UK revenue
offers the best medical services to around $1 billion (Odile, 2015). This create Britain to be
the one, where patients can easily see the Doctors in queuing time and in a short time. This
depicts that the globalisation forces for the UK economy have changed due to the rapid
medical industry development, where else the impact of globalisation will get stronger, which
will make BUPA greater (Odile, 2015).
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Legal- Health, employment and safety laws are analysed in the UK, and it is required that all
medical equipment’s and machines should fulfil the standards of safety (Odile, 2015).
Micro environmental aspects
Competitors
BUPA has three main competitors, such as AXA PPP Healthcare, PruHealth, and
BCWA Healthcare (Afshani, 2010). An organisation working in the healthcare industry try to
compete as per the medical facilities state of the art, as well as hygiene standard, supply chain
forward and backward integration, as well as advanced technology (Odile, 2015). BUPA
compete within the healthcare chains and within medical technologies of the world. It holds
the highest and diversified healthcare system within the industry with more than 10000 beds,
200 clinics as well as 2500 pharmacies around the country (Odile, 2015).
c) Extended marketing mix 7Ps and how the development of the extended marketing mix
contribute to effective marketing planning for BEAM
In the period of globalisation, the patients purchase suitable healthcare services all
over the world that result in health tourism development (Afshani, 2010). For the purpose of
attracting the medical tourist, investors of BUPA had set up the 5star hospitals in all the
developing countries of the world, where doctors are given licensed (Berry and Seltman,
2017). The BUPA hospitals always try to attract the patients through offering them with high-
quality services and that too at the reasonable cost (Afshani, 2010).
In concert with the medical tourist as per the product mix, in relation with both the
private and public hospitals at the moderate status (Afshani, 2010). It is analysed that
continuous medical treatment is the highest medical tourist priority. BUPA consider medical
tourist about explaining the process of treatments and also take responsibility for the
subsequent issues after returning back to the country (Berry and Seltman, 2017). The human
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resource development, system development of both marketing and information, development
of a product like compiling, various patient service packages, and health industry
coordination with the tourism industry is between the need for promoting the UK medical
industry (Berry and Seltman, 2017).
In concert with the public mix, both the private and public hospitals have approved
the moderate status. It is analysed from the studies that the hospital position holds the highest
significance due to the time and service availability principles (Berry and Seltman, 2017).
Along with the availability and proximity, the hospitals should be located at a place that is
best for healthcare, because if hospitals are located near to the crowded and industrial areas,
then the same might lead to many issues (Ghadamgahi, 2011). The place where the hospital
is located should be easily accessible to clients. Place mix can also result in challenging
access, and the considerable gap might lead to the rise in cost and minimise the motivation of
customers for choosing the hospital (Berry and Seltman, 2017). It is analysed that as most of
the private hospitals are situated near to the traffic areas in the UK, the hospital status is
worse in comparison with the public hospitals (Ghadamgahi, 2011).
Referring to the promotion mix, the public and private hospital status are not
desirable, in the way that public hospital should the week condition of acceptability, and
where else the private hospitals are not accepted in such circumstances (Menon, 2016). This
might happen because of the lack of updated websites, absence of mass media and television
for propaganda. Research depicted that between the variables of mechanism, only the
advertising media hold an essential correlation for attracting the patients (Ghadamgahi,
2011). This illustrates that the opportunities for advertising in global media are the area of
healthcare, high-quality services, physicians and technology can result in attracting the
patients (Menon, 2016). It is expressed by the researcher that country advertising capability
and healthcare facility in the global media, informing about the embassies of country,
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offering the pamphlets and brochures for tourist, creating the information of port, taking part
in the global medical exhibitions, preparing for the health centres pictures and placing them
at airports and terminals can support in attracting the patients (Ghadamgahi, 2011). Similarly,
Corbina, Kelley and Schwartz (2011) has recommended that one of the critical weak point
related with the industry of medical tourism is the absence of awareness about the foreign and
internal medical tourist concerning the real capabilities of the global health services, absence
of relevant and professional information, and the disturbances in the hospitals PR electronics
in the UK (Menon, 2016).
In concert with the price mix, it is analysed that public hospitals in the UK hold a
better status in comparison with the private hospitals (Ghadamgahi, 2011). This happens
because of the increased service of traffic and not offering discounts and low discounts in
healthcare centres. In general terms, the cost is considered as the initial factor for motivation
for patients (Pan and Chen, 2014). The medical care cost in the developed nations has
resulted in seeking affordable healthcare, as compared with less developed countries (Burger,
Malhotra and Naresh, 2012). It is noted that patients are always looking for the healthcare
services that are of high quality and at a reasonable cost. Considering the people mix most of
the public and private hospitals are in an acceptable situation (Pan and Chen, 2014). It is
recommended that relevant staff training and the collection of the desired qualification can
assist the healthcare centres in offering healthcare services. In such a case, medical education
programs help a lot in assisting medical tourism (Burger, Malhotra and Naresh, 2012).
Referring to the process mix, both the private and public hospitals are in better
condition, and the public hospital condition is in better condition as compared with the
private hospitals (Pan and Chen, 2014). This has happened because public healthcare centres
can quickly implement clinical governance and EFQM better in comparison with private
healthcare centres (Odile, 2015). One of the significant process mix indicators is to inform
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the families and patients about the service delivery details (Burger, Malhotra and Naresh,
2012). Various studies have focused on the patients to have the right to be informed about the
treatment, care as well as consequences to be involved in the process of treatment (Ben,
2003).
The physical attraction mix status is not desired within both the private and public
healthcare centres, and this shows the absence of enough attention towards both the exterior
and interior attraction of healthcare centres (Ben, 2003). It is reported in the study that low
facility standards have to lead to the old buildings of hospital and absence of awareness
concerning the hospital health conditions (Tasan, 2016).
Section 2 – Segmentation, Targeting & Positioning
a) Segmentation of new BEAM concept for consumer (B2C) AND business (B2B) markets.
Segmentation support in analysing the features of a various population group, which
hold common attributes (Corbina, Kelley and Schwartz, 2011). BUPA apply the
psychographic as well as demographic segmentation strategies, including the variables like
marital status, age, gender, region, and income. The health checks of the centre are
segmented through age and rise in coverage as well as complexity with the patient age
(Corbina, Kelley and Schwartz, 2011). The outcome support respondents that might not know
about the health problems for analysing the illness and treating the diseases at the starting
stage. In the year 2016, around 6% of the respondents were explored to have diabetes, where
else 9% were diagnosed through hypertension (Corbina, Kelley and Schwartz, 2011).
b) Targeting methods
BUPA group hold the presence in the massive range of providing in the market of
healthcare; that’s why they are applying the differentiated targeting strategy (Corbina, Kelley
and Schwartz, 2011). BUPA has explored that sometimes it took time in the market for
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evolving with the concept, which moved the primary care towards the branded clinic chains
(Corbina, Kelley and Schwartz, 2011). Over the period of time, it is viewed that clinics
located in the enormous urban markets, which has more mobile, youngsters and nuclear
households get more successful in attracting the patients as well as performing the right
finances (Corbina, Kelley and Schwartz, 2011). It is analysed that in the market, including an
older population and set up a relationship with doctors; uptake is usually slow. Therefore,
BUPA is quite selective about the hospital location.
c) Positioning and recommendation on how the new BEAM concept would be positioned
in the consumer OR business market.
Positioning support in creating the corresponding image in the customer’s mind. It
applies the advantages as well as the strategy of product class positioning (Corbina, Kelley
and Schwartz, 2011). With the purpose of offering the patients with the positioning customers
and better care for the previous preventative care, BUPA has given the leverage over the
network towards mine information, which can be applied for enhancing the care (Corbina,
Kelley and Schwartz, 2011). For instance, the concepts of BUPA with the BEAM patients
can buy diabetic drugs and offer them with details about the solutions related to sugar related
disease management. At BUPA, women who come there for the pregnancy test or either to
monitor the ultrasounds are adequately informed about the BUPA priceless initiative
(Corbina, Kelley and Schwartz, 2011).
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Section 3 – Marketing Mix Analysis
BUPA
Product BUPA offers the quality services of healthcare,
including round 53 branches around the UK.
Prominently, BUPA is accessible for its heart
treatment, HIP and Knee replacement surgeries
apart from other ailments issues. The hospital
specialises in heart, Spine, Urology Critical
Care, Orthopaedics, Gastroenterology, Cancer
Care, and Neurosciences (Berry and Seltman,
2017).
Place BUPA is priced premium, and the hospital
affords to do the same, due to its positioning
and the assurance along with the reliability
over the BUPA brand. Apart from this, it also
assists that there are various locations and
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BUPA specialities (Berry and Seltman, 2017).
Therefore, patient feel the assurance of getting
well-being.
Price BUPA includes 10000 beds around 53
locations in the UK. The hospital is located at
London, Birmingham, Manchester, Cambridge
and Leeds city centres (Berry and Seltman,
2017).
Promotion BUPA initiate the centres by the community
initiatives:
SACH – this initiative is related with
saving the child heart
CURE – this initiative is related with
increasing the preventives along with
rehabilitative treatment of cancer for the
economically backward (Berry and
Seltman, 2017).
SAHI – this initiative is related with the
society to provide aid to people who are
hearing impaired
DISHA – this initiative is related with the
project related with distance health care
advancement
People Presently, BUPA is involved with 19,000
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doctors, paramedics, nurses, management
professionals and clinical employees to handle
around 8500 beds in approximately 53
hospitals around the UK (Berry and Seltman,
2017). Apart from this, BUPA hold various
courses as well as research facilities to increase
the innovation.
Physical Evidence BUPA is popular for providing quality
healthcare services at a reasonable cost. It also
offers the services for every ailment as well as
diseases, and make sure that there is a healthy
recovery of the patient, and employees give
quality care (Berry and Seltman, 2017). BUPA
also organized the site survey process along
with that it also cares about different hospital
parameters.
Process The highest achievement earned by BUPA is
by providing quality healthcare services around
the breadth and length of the UK (Berry and
Seltman, 2017). These operations itself include
the setup documentation and procedures. It also
consists of the key players involved in scripting
the nation medical landscape. This is core due
to the continuity of the group at the helm of
different game-changing UK healthcare
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innovations. BUPA is ISO 9002 accredited
(Berry and Seltman, 2017).
References
Afshani, A. (2010). The role of public relations in the development of the health tourism
industry. The third regional congress of the international health service.
Ayoobiyan, A. (2012). Relation between mechanism of informing and attracting medical
tourists in private hospitals of Isfahan. Tehran: University of research sciences.
Ben, R. (2003). ‘Why Measure Performance? Different purposes Require Different
Measures’. Business Source Premier. Public Administration Review, 21, pp. 586-606
Berry, L. L. and Seltman, K. D. (2017). Building a Strong Services Brand: Lessons from
Mayo Clinic. Business Horizons, 50, pp.199 –209
Burger, P., Malhotra, C. and Naresh, K. (2012). Product Line Management in Hospitals; an
Exploratory Study of Managing Change. Journal of health care marketing, 11(3), pp. 82- 87.
Connell, J. (2016). Sun, Sea, Sand & ... Surgery. Tourism Management School of
Geosciences. University of Sydney.
Corbina, C. L., Kelley, S. W. and Schwartz, R. W. (2011). Concepts in Service Marketing
For Healthcare Professionals. The American Journal of Surgery, 1, pp. 1–7
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Dehiman, A. K. and Sharma, H. (2010). Services marketing mix in library and information
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at: http://crl.du.ac.in/ical09/papers/index_files/ical78_246_697_1_RV.pdf [Accessed on: 26
June 2019].
Ghadamgahi, F. (2011). Knowledge, attitude and self-efficacy of nursing staff in hospital
infections control. Military Medicine Journal, 13(13), pp. 1-17.
Menon, M. K. (2016). Goodnight, Janelle M. Wayne, Robin J., Assessing Advertising
Content in a Hospital Advertising Campaign: An Application of Puto and Wells Measure of
Informational and Transformational Advertising Content. Journal of Hospital Marketing &
Public Relations, 17 (1), pp. 27-44
Odile, R. M. (2015). Modelling the Impact of Internet Atmospherics on Surfer Behaviour.
Journal of Business Research, 58, pp.1632- 1642
Odile, R. M. (2015). Modelling the Impact of Internet Atmospherics on Surfer Behaviour.
Journal of Business Research, 58, pp.1632 – 1642
Pan, F. and Chen, C. (2014). Enhancing Competitive Advantage Of Hospitals Through
Linguistics Evaluation On Customer Perceived Value. Journal of American Academy of
Business, 5 (1/2), pp. 481-485
Shalbafiyan, A. A. (2015). The health tourism development Solutions (with the medical
tourism approach). University of allameh Tabatabaei
Smith, M., Fischbacher, M. and Wilson, F. A. (2017). New Service Development: From
Panoramas to Precision. Anne European Management Journal, 25(5), pp. 370 –383
Tasan, M. (2016). Study of the status of the tourism and transport services market in the
countries members of the D-8 Group. Tarbiat modares University.
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Torabi, A. (2011). Social marketing in the health services. Journal of social security, 8, pp.
127–142.
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