Sunday, 5 May 2013
Project Report on Apollo Hospitals-Marketing Case Study
· Apollo Hospitals Enterprises Ltd (AHEL) was incorporated in 1979. Dr Prathap C Reddy, the Executive Chairman, is also the founder of the company. AHEL is a publicly held company, being the first listed entity in healthcare in India. It can also claim to be the first corporate entity in Asia to offer healthcare services.Apart from hospitals and pharmacies, the Apollo Group has wide-ranging interests in other fields of healthcare. The group companies include Apollo Health and Life Style Ltd, in neighbourhood clinics; Apollo Health Street Inc, which offers software solutions to hospitals; Apollo Telemedicine Networking
· Foundation, which uses electronic communication for diagnosis and treatment in rural areas; Med Varsity Online Ltd, an on-line portal for medical education; and Apollo Hospital Education and Research Foundation, which conducts educational and training programmes on nursing, hospital administration, physiotherapy, etc.
· The Apollo Pharmacy chain was started in 1983, as a facility to serve patients of the newly established Apollo Hospitals, in Chennai. The Apollo Pharmacy division is the entity through which AHEL retails medicines. AHEL developed its retail division, pharmacies and clinics into a full-fledged business in 2000.
· The initial wave of expansion of the company’s pharmacy chain was focused on cities where Apollo Hospitals were located, and hence its presence was strongest in South India. However, the emerging pattern is the company expanding its pharmacy chain into areas where it has plans to establish a hospital.
· The company aims to have 1,000 outlets by the end of 2009. At present, all the outlets are fully owned and managed by Apollo Pharmacy itself. New pharmacies are likely to be established mainly in tier-II cities, in line with Apollo Hospitals’ plan to develop hospitals in that category of location.
· In order to provide mobile consumers with more access points to its pharmacy stores, Apollo Pharmacy has, as part of its expansion plans, tied up with Indian Oil Corporation to establish convenience stores in Indian Oil’s service stations in India. It has also expressed an interest in Indian Railways’ proposal to set up pharmacies-cum-clinics at various stations to take care of passengers’ emergency medical needs.
· Apollo Pharmacy has low-value medicines manufactured by third parties, and sells them under its two private labels, Apollo and Doctors’ Choice. It also plans to launch a vitamin range under a separate private label brand.
· With Apollo’s presence being confined to the chemists/pharmacies sector, the company has a minor presence in retailing in India, ranking outside the top 20 retailers. However, it was the leading chemists/pharmacies player in India in 2008, with 600 outlets and a value share of just over 1%.
· In a highly fragmented market, Apollo managed to increase its value share over the review period. This was mainly as a result of outlets added on an annual basis by the company. The tie up with the Godrej Aadhar chain, owned by Godrej Agrovet, has enabled the company to take its presence beyond cities into rural areas.
· Apollo has a nationwide presence, with stores in North, South, East and West India. Having started off its operations in Chennai in South India, this region has the largest number of Apollo Pharmacy outlets. The company has not significantly expanded its operations into East and Northeast India, with outlets only in the cities of Kolkata, Bhubaneswar, Raipur and Bilaspur.
· In 2008, Apollo Pharmacy introduced NurseStations, a new service concept, at 30 of its most conveniently located outlets in the twin cities of Hyderabad/Secunderabad in South India. The centres function as a primary interface point for access to healthcare support and medical attention. Trained nurses at the centres assist consumers with obtaining appointments with relevant doctors; administer vaccinations; conduct routine medical tests; and also provide on-call services at home for a range of medical services, like dialysis, wound dressing and insulin injections. The launch of NurseStations is significant, given the context of latent consumer demand for patient-centric healthcare, and given that it could potentially expand access to affordable treatment for common family illnesses.
· Apollo’s strengths lie in its financial capacity and its brand name. The backing of the Apollo Hospitals Group provides the company access to capital for expanding its operations. The Apollo brand is associated with healthcare, and hence the association of Apollo Pharmacy with medicine products is strong. To encourage purchases from its stores, Apollo Pharmacy also provides free health insurance of up to Rs20,000 to customers who spend more than Rs6,000 per annum at its stores. Customers can also get a discount on purchases made at Apollo Pharmacy, or on any out-patient investigation or treatment at the company’s hospitals.
Source-Euromonitor International : Local Company Profile-April 2009
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