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 r...

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...turning. It also starts to build protection against the possible threat of a competing neighboring clinic.

Strategy Verses Limitations

This strategy allows us to adjust along side the demographic population changes. Instead of focusing on families we are not focusing on the business people in the five-block radius. The increase in patient numbers would increase profits to allow for an additional fulltime physician and increase in office hours.

Conclusion

This strategy would not only build business's business but would in turn also increase personal business. Building strong relationships with individuals and business provides loyalty. If a new clinic does open up within our customer radius, then we shouldn't have to fear losing a significant amount of patients because we have met their satisfaction. Our long run goal is then to keep this satisfaction