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 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).
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 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.
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:
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 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.
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 refers to the incremental profit that generated for each selling of the healthcare services to the people (Purc?rea, 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.
|
15.42% |
18.58% |
21.85% |
|
|
14.32% |
18.66% |
20.14% |
|
|
6.39% |
12.65% |
16.54% |
|
|
7.16% |
10.25% |
13.45% |
|
|
3.52% |
7.41% |
5.26% |
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.
The following milestones will identify the Fresenius Kidney Care key marketing programs. This provides the implementation of one time budget of this healthcare center.
|
Start date |
End date |
Budget (in dollars) |
Employees position |
Department |
|
|
1/1/2019 |
2/1/2019 |
0 |
Manager |
||
|
1/1/2019 |
30/6/2019 |
22747 |
Manager |
Marketing |
|
|
1/7/2019 |
30/12/2019 |
27899 |
Manager |
Marketing |
|
|
1/1/2019 |
30/6/2019 |
4789 |
Manager |
Marketing |
|
|
1/7/2019 |
30/12/2019 |
5147 |
Manager |
Marketing |
|
|
1/1/2019 |
30/6/2019 |
17894 |
Manager |
Marketing |
|
|
1/7/2019 |
30/12/2019 |
22587 |
Manager |
Marketing |
|
|
1/1/2019 |
15/1/2019 |
0 |
ABC |
Department |
|
|
1/1/2019 |
15/1/2019 |
0 |
ABC |
Department |
|
|
1/1/2019 |
15/1/2019 |
0 |
ABC |
Department |
|
|
101,063 |
|||||
|
Start date |
End date |
Budget (in dollars) |
Manager |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
0 |
|||||
|
Start date |
End date |
Budget (in dollars) |
Manager |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
0 |
|||||
|
Start date |
End date |
Budget (in dollars) |
Department |
||
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
0 |
|||||
|
Start date |
End date |
Budget (in dollars) |
Department |
||
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
1/1/2022 |
15/1/2022 |
0 |
ABC |
Department |
|
|
0 |
|||||
|
101,063 |
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.
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 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.
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:
Worst Risks of this healthcare firm are as follows:
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.
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.
(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.
(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.
References
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