To devise industry analysis and marketing plan for the development of a commercial laboratory in Karachi


Master of Business Administration

Faculty / School

Faculty of Business Administration (FBA)

Project Coordinator (Internal)

Dr. Nasir Afghan

Committee Member 1

Dr. Nasir Afghan, Institute of Business Administration, Karachi

Project Type

MBA Research Project

Abstract / Summary

Indus hospital is one of the well-known hospitals of Pakistan that offers free of cost health care services to people who cannot afford quality health care services. Indus hospital has campuses spread over Sindh and Punjab and is working with federal and provincial government to manage effectively various hospitals. Sehatmand Zindagi is a brand of diagnostics and treatment centers across Pakistan established by Community health Solutions (CHS). Sehatmand Zindagi comes under the umbrella of Indus hospital and offers free treatment for tuberculosis (TB) while offering other test facilities at a reasonable rate to cover the core operation cost to make it sustainable over the long run. The objective of our research is to devise industry analysis and marketing plan for the development of Sehatmand Zindagi. Our research comprises of an in-depth analysis of the diagnostic lab industry in Pakistan which includes studying the market trends, key players, brands & their equity, consumer buying behavior, consumer preferences and their purchase intention. To achieve our research objectives, the project was divided into three stages. During the first stage, we carried out project planning followed by current findings review, industry research, focus group sessions and personal interviews of patients and doctors. After analyzing their insights, the research models of Brand Equity (BE) and Purchase Intention (PI) were formalized. In the second stage, quantitative analysis was undertaken which comprised of questionnaire building, pilot study and data collection through surveys. Our questionnaires had to be designed to gauge customer's perception and preference of various attributes of the diagnostic labs and how they have an impact on perceived quality, brand loyalty, brand awareness and ultimately brand equity. A pilot study was conducted on a sample size of20 people and adjustments were made to make the survey more comprehensive. For the final survey, a sample size of 375 responses was selected by using convenience sampling. The third stage of our project comprised of an extensive data analysis and interpretation through SPSS to devise the marketing plan. We ran through different tests on the survey data to deduce results from them. Recommendations and ultimately the marketing plan were developed based on results, outcomes and findings from the overall research conducted. The marketing plan recommendation consists of the 4 P's of marketing mix to launch diagnostic labs throughout Pakistan. Some of the findings from the report are as follows: • Patients are influenced to a great extent by doctor's recommendations while looking for a diagnostic lab to conduct tests. • People of every age are in need of diagnostic tests, but the bull's eye market is older adults having age of 50 or above. • Accuracy in results, environment & cleanliness of labs, and professionalism of staff are some of the factors patients are concerned about to a considerable extent while judging the quality of a lab. • There is still an untapped market of people who are unaware of the usefulness and significance of diagnostic tests in the process of cure from illness and to stay healthy; and who cannot afford high prices of tests. • People belonging to household income group of more than PKR 100,000 spends the most on the diagnostic tests. • Easy access to reports and their availability with convenience effects patients' decisions to a great extent in selecting a lab for diagnostic tests. • Apart from patients directly coming to the centers, following patients may also be targeted for tests: o Patients referred by GPs o Patients referred from nearby hospitals o Third party patients (insured) o Patients belonging to corporates (regular check-ups) • People considers proximity to their residence while opting a lab for diagnostic tests. • Most of patients are of opinion that accuracy in results depends upon professionalism of lab staff, and brand history & brand equity of lab. And some of the recommendations from the report are as follows: • Sehatmand Zindagi has a wide network of doctors which it can use for specialized marketing of its services because doctor's recommendation is an important factor in visiting a lab. • Sehatmand Zindagi can also partner with insurance companies so that all the customers of an insurance company get their tests done from Indus labs. • Sehatmand Zindagi should start a promotional activity, "Sehmand Gharanay Khushaal Zindagi" highlighting the importance of hygiene by educating the lower class in their daily life. This would be a CSR activity for Indus Hospital and would result in positive reviews about the lab. • The lab should also target the untapped market, and create awareness among them with respect to significance of diagnostic tests; so that they become prospective customer of the lab. • Customized pricing strategy with respect to segments is to be offered. • Sehatmand Zindagi can also offer mobile testing facilities where patients can get basic tests done on the go while at the same time this would be a marketing tactic where Sehmand Zindagi vans would be roaming throughout the cities establishing a positive brand image in the minds of customers. • The lab is to work with the overarching goals of public health impact, social business model, and introducing and scaling up improved diagnostics. • Sehmand Zindagi should highlight the free 113 treatment that it is offering as this would help in decreasing TB in the country while at the same rime would highlight the role that the lab is playing in making Pakistan a healthy country. • Network of lab is to be spread across the country with proportion of urban and rural divide. The branches will be established keeping in view the overall revenue generation and business sustainability. • The lab is required to adopt a specialized and strong form of marketing and sales campaign targeting doctors, insurance companies, and corporations. • The labs to be launched have to have professional staff, well equipment, good hygiene condition, accuracy of results, and suitable ambiance. We believe that Indus hospital desire to maintain sustainable labs is very important so as to provide free TB treatment and better health care services to people who cannot afford it.

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