Manor Memorial Hospital

Manor Memorial Hospital

Problem

The potential of a competing neighboring clinic poses an obstacle in the progress towards achieving DHC's service and profitability objectives. There are also unfavorable demographic shifts out of urban and into suburban areas, which cause a need to adjust the focus of the target market.

Objective

In the short run DHC needs adjust the image in the community to increase the number of first time and returning patients.

In the long run DHC needs to be grow and satisfy the current patient base to be prepared when and if a competing clinic does appear. We need to be able to retain our customers so they will not take their needs to our competition. We have to increase customer satisfaction, for both the long and short run, to keep returning customers and the continued flow of word of mouth.

Limitations

* There is an unfavorable demographic shift that shows less young, upwardly mobile families in our target area because they are moving to the suburban areas. We are now depending more on higher median age and Medicare coverage patients.

* Narrow advertising possibilities - Only allotted $5,200 per year to be spent on "informational advertisement" in weekly newspaper.

* Currently only have one full time physician.

* Physical distance - our real customer is only a few blocks away. We usually don't receive patients that are of a greater distance than five blocks away.

Strategy Alternatives

#1. Increase public marketing to generate higher awareness. Ex: local billboards, signs in subway and bus system (only in local downtown area)

Pros: Attract new, first time customers

Cons: Not sure the effectiveness or have room in budget. Cost might outweigh benefits

#2. Improve DHC relations with the business community. Ex: work deals with individual businesses to gain their loyalty in service

Pros: Greatly increase patients from the surrounding businesses. The area currently has 11,663 within the five-block radius. This strategy would more effectively reach these potential patients. If we could get people to come in once for their employee physical or workers compensation then this would increase our chance of them returning for their personal common illnesses and help increase the word of mouth advertising.

Cons: This focus could cause a lack of attention in other needed areas. The clinic would have to make staff and time changes to accommodate to the shift in majority of clients. There is also the potential of businesses not being interested in our proposition.

#3. Focus more on females, who already make up 60% of patients. Ex: offer more services like a gynecologist

Pros: Would probably bring even more first time female visitors and increase the patient numbers.

Cons: Potential for damage to our image. Could become known as a "woman's clinic." Some men might not feel comfortable knowing this type of service might be in the room next to them. Might change the atmosphere of the clinic. I also don't think this is something you could advertise in the paper. I think this is a good idea, however might cause more long-term harm than good to the clinic.

Strategy Choice

#2. Improve DHC relations with the business community.

Tactic 1 - Hire someone (like a sales rep) whose job is to be the contact for businesses. This person would develop the relationship with surrounding businesses and gain their loyalty and trust. They would go different location and develop relationships with various businesses that require physicals, sharing with them our new proposal and deals for businesses.

Tactic 2 - With the