Bumrungrad's Global Services Marketing Strategy

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Case Details:

Case Code : MKTG091
Case Length : 18 Pages
Period : 1980-2004
Pub Date : 2004
Teaching Note : Available
Organization : Bumrungrad Hospital Public Company Limited
Industry : Healthcare Industry
Countries : Thailand

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Promoting Healthcare Services Globally

In the late 1990s, Bumrungrad participated in an international road show organized by the export promotion department of Thailand commerce ministry. It was around this time that Thailand began promoting medical tourism as an 'export' product - one which could earn valuable foreign currency for the country (Refer Exhibit I for the medical tourism industry scenario in Thailand).

Soon, Bumrungrad opened representative offices in Ho Chi Minh City (Vietnam), Yangon (Burma), Dhaka (Bangladesh) and Laos (Cambodia).

The offices provided assistance to foreigners, helping them to procure visas and make travel arrangements, and providing cost estimates to patients intending to get treated.

They even coordinated arrangements for picking up and dropping off patients at Bangkok airport with the Bumrungrad hospital staff. Sales representatives were sent to other Asian countries to create awareness and promote Bumrungrad...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

The In-Hospital Experience

Bumrungrad had a western-style ambience in the hospital to woo foreign patients. The lobby of the hospital resembled a five-star hotel, with a ceiling as high as two floors, teak pillars and plush sofas and armchairs. Attractive oriental carpets covered the marble floors, while flowering trees and shrubs were tastefully arranged around...

Pricing of Healthcare Services

Well-planned pricing was a major contributor to Bumrungrad's success. The healthcare costs at Bumrungrad were significantly cheaper than those at similar medical facilities at Hong Kong, Singapore and the US (Refer Table I).

On the importance of pricing, Schroeder said, “If you're flying several thousand miles, the issue is the combination of quality and price. As long as quality is held to be as good or better, price is the most compelling factor.” The room rent included nursing care and general medical services....

The Benefits

By 2002, Bumrungrad's strategy of wooing foreigners reaped rich dividends with the hospital witnessing more than three-fold growth in the number of foreign patients between 1997 and 2003. (Refer Table III). By 1999, foreign patients accounted for 28% of its total customers compared to 11% before the 1997 crisis...

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