Mayo Clinic Maternity Ward Marketing Plan

Molly Blackman, Lisa, Nguyen, Pavan Patel, Brittany Pacetti, Val Palimidy, HAS 3160 University of North Florida

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Contents
Index Page ................................ ................................ ................................ ........................... 2 A Brief Description of the Business or Company ................................ .............................. 3 Organizational Mission Statement ................................ ................................ ..................... 3 Role in the Strategic Planning of the Company ................................ ................................ .. 4 4 Ps (and consideration to the other 3 Ps) ................................ ................................ ........ 5 Target Market Market Segmentation ................................ ................................ ............... 6 Goals/Objectives of the Marketing Plan ................................ ................................ ............. 8 Market Research to Support the Marketing Plan ................................ ................................ 8 SWOTs ................................ ................................ ................................ ................................ 9 Use of Branding ................................ ................................ ................................ ................ 11 Promotion/Advertising................................ ................................ ................................ ...... 11 Identification of Staffing Needs ................................ ................................ ........................ 12 ROI / Measuring Outcomes ................................ ................................ ............................. 12 Conclusion ................................ ................................ ................................ ........................ 13

Mayo Clinic3 Description and History of Mayo Clinic Mayo Clinic is a nonprofit world-renowned healthcare organization. Mayo Clinic developed gradually from the medical practice of a pioneer doctor named Dr. William Worrall Mayo, who settled in Rochester, Minnesota in 1863. His dedication to medicine became a family tradition when his sons, Drs. William James Mayo and Charles Horace Mayo, joined his practice in 1883 and 1888, respectively (Mayo Clinic, 2013). Mayo Clinic is best known for its superior quality of care, service to their patients, research, and education (Pacetti, 2013). Through the years, Mayo Clinic has nurtured and developed its founders' style of working together as a team. Shared responsibility and consensus still provide the framework for decision making at Mayo (Mayo Clinic, 2013). Mayo has three clinic locations, Florida, Minnesota, and Arizona. Teamwork in medicine is carried out today by more than 55,000 doctors, nurses, scientists, students and allied health staff at Mayo Clinic locations in the Midwest, Arizona and Florida (Mayo Clinic). Millions of people all over the world drive long hours just to be seen by a doctor at one of the Mayo Clinic locations. Mayo Clinics marketing mix creates a differentiation from other competitive organizations in many ways; Mayo offers top quality services and state of the art technology and equipment that many other healthcare organizations do not or they do not have the ability to do so (Pacetti, 2013). Mayo only accepts certain insurance carriers and their pricing for their services are expensive. What Makes Mayo Clinic Different? The Mayo Clinic is one of the top quality healthcare organizations in the world. They take pride in serving their patients and they believe in putting the patient first, which is one of the reasons why they are considered the best in healthcare. The Mayo Clinics marketing mix is different from other competitive organizations because their services and medical technology is

Mayo Clinic4 far more advanced than most healthcare organizations (Pacetti, 2013). This is due to their advances in their medical technology and equipment, their expertise of specialty doctors, and research and education (Pacetti, 2013). Mayos mission is to provide the best quality care to their patients and their value is to put the needs of the patient first. In conclusion, The Mayo Clinic is advanced healthcare organization (Pacetti, 2013). Mayo Clinics New Venture The Mayo Clinic is opening a Maternity Center located at 4500 San Pablo Rd Jacksonville, FL 32224, which is right next to the Mayo Clinic Hospital. Mayo is ready to offer their outstanding quality services to mothers and their newborn babies. The Mayo Clinic Maternity Center will have the most qualified and skilled medical personnel working to serve mothers and newborn babies. It will be the mission of the Mayo Clinic Maternity Center to provide a compassionate, highest quality, patient and family centered care atmosphere and become the regions preferred provider of maternity services. The Mayo Clinic Maternity Center will offer a high level of comfort and care for the mother and family including: Private, spacious birthing suites, separate private postpartum room, rooming-in option for mothers who want their babies in their rooms, intensive care labor area for high-risk deliveries, and a Well-Baby Newborn Nursery (Baptist Health). The Mayo Clinic is ready to expand and start their new venture in labor and delivery in Jacksonville, Florida. Role of Strategic Planning Strategic planning is a management tool that is used by organizations to focus its energy to ensure its members are working towards common goals, and also to assess and adjust the organizations direction in response to a changing environment (NAMAC, 2009). Organizations also uses strategic planning by defining the answers to three basic business questions; where are

Mayo Clinic5 we now, where do we want to be and how do we get there? (Rosenfarb, 2013). Famously known for treating rare medical diseases and providing high quality care at low costs, Mayo Clinics first priority is that the needs of the patient come first. In order to best satisfy customer needs, Mayo Clinic will provide maternal and child health services by developing a birthing center directly next to the Florida hospital. This will allow innovative target segments to be attracted to the new medical services provided by Mayo. Research departments within the facility will be able to provide more exploration to reduce the rates of infant mortality. Classes in childbirth education will be provided to help couples understand the birthing process. Mayo Clinics new birthing facility is devoted to improving birth outcomes and the quality of birth for women with a strategic focus of increasing unit sales volume, improving margins and investment returns (Strategic Marketing). The Marketing Mix In order to develop a strategic plan the marketing mix must be considered to best satisfy the customers needs efficiently and profitably. It includes the seven ps: product, place, price, promotion, packaging, positioning, and people. The market strategy goal is to attract, retain, and grow customers, while facing other competitors trying to do the same thing (Strategic Marketing). Product To better serve the needs of consumers, services specialized in maternal and child health will be available for women during any stage of pregnancy. Mayo Clinic would like to create a facility that is state of the art, well equipped for any possibility, and comfortable and spacious for expecting mothers and new born babies.

Mayo Clinic6 Pricing To ensure the needs of women are met while delivering the best quality care, most insurance plans will be accepted. Since women who deliver in birth centers usually stay for a shorter time and use fewer interventions, the average cost is about a third less than a hospital birth (BabyCenter, 2013). The purpose of the Maternity Center is to create affordable health care for all women who are expecting instead of only those with expensive insurance. Promotion Historically, word-of-mouth has built a solid reputation for Mayo Clinic over the past 100 years; however, todays generation relies heavily on social media and mass advertising. To announce the construction of the new birthing center, attempts to notify the target segments will include mass marketing, social media, billboards, commercials, and health fairs. Placement The birthing center will be located directly next to Mayo Clinic so in case of an emergency, there is a direct connection where women can be transported immediately to the hospital saving valuable time (Mayo Clinic Health System, 2013). Packaging The new birthing facilitys visual appeal is important for patients to feel comfortable in a hospital environment. To make it feel more like home, the new facility will include large nicely decorated private suites to cater to mother and child, with soothing colors to create a relaxed and warm atmosphere. Families will also have plenty of space to lounge or use the kitchenettes that are available.

Mayo Clinic7 Positioning Mayo Clinics receives extensive public relations coverage when celebrities, pro athletes, and government leaders visit for care. In small U.S. towns, word of mouth about someones good experience at Mayo Clinic often leads to local feature story in the news, TV, or radio, and is frequently picked up by regional and national news services (Strategic Marketing). Mayo Clinics Maternity facility will be located in the Jacksonville, Florida location. It will be positioned to appeal to all consumers who have used Mayo Clinic. People To ensure patients are receiving the best care, the birthing center will be staffed by highly trained nurses and physicians that are up to date on latest birthing techniques and technology through continuing education and training. The hired staff will undergo extensive training for 3 months before the facility is opened. They will also have a 90-day probation period where they will be highly scrutinized and monitored to ensure that all safety needs are met. Market Segmentation Market segmentation is a significant part of marketing; it is a necessary means to the process of developing a business. Marketing segmentation is used to gain a greater understanding of the customers needs. Marketing segmentation is the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment (Ross, 2010) The Mayo Clinic is now going to open up a maternity center at 4500 San Pablo Rd Jacksonville, FL 32224, which is right next to the Mayo Clinic Hospital. This means many different things for woman and their future babies. The Mayo Clinic has a very prestigious reputation and it is expected to carry onto the maternity

Mayo Clinic8 center when opened. When opening up this maternity center we have to look at many different aspects of targeting our consumers. We have to look at their age, gender, occupation, location, interest, and income. Each one of these different categories will help us maximize our consumer base and will help us meet the needs of these particular individuals to the highest standard. We have to look at the average age of woman that gives birth in Jacksonville along with what kind of insurance they have. It is very understood that there are already other birthing centers in Jacksonville, but I can assure you if Mayo Clinic opened up a center then those other options would decrease in consumer size. With the Mayo Clinics reputation for its high standards in care, quality and purpose this center will definitely be a success. Goals/Objectives of the marketing plan All objectives should be carefully quantified, reasonable, attainable, and possible especially in terms of an achievable time or date (Rosen, 2009). This section is very important because it can be the determining factor of success or failure for a business. One of the goals for Mayo Clinics Maternity Center is to provide an optimal childbirth experience. One of the longterm goals is maintain the same reputation of the sister clinics. Another long-term goal would be to care for more than 3,500 infants a year. These goals are attainable and can possibly be done before the time limit given for each one. The staff of Mayo Clinic want to provide only what is best for the mother and baby. Some of our objectives will be to establish and maintain strong relationships between physicians and patients, to grow in numbers of infants cared for monthly, and to control patient wait time. With a proper and effective marketing plan all these goals and objectives will be achieved.

Mayo Clinic9 Market Research There are approximately forty percent of female ages 20-39 living near Mayo Clinic in Jacksonville, FL (Zip Skinny). This indicates a high percentage of women in child bearing age. There are also approximately twenty-five percent of females ages 20-39 living in Florida (CLR Search). The population living close to Jacksonville, FL will have greater access to this birthing facility without having to commute far. It will however, benefit others who live in Florida or outside of Florida. Those whose family is already seeking medical care at Mayo Clinic from another state can take advantage of giving birth to their child at the maternity ward. Mayo Clinics not-for-profit organization will attract people of all incomes. As a not-for-profit organization, Mayo Clinic is mandated to serve to the underserved population. The populations average household income around Mayo Clinic is $55,000 (Zip Skinny). The low-income underserved population will not be intimated to seek care here. Residents near Mayo Clinic are seeking birthing care in near hospitals such as Baptist Medical Center Beaches. Baptist Beaches currently cared for 1,170 births (Baptist). Mayo Clinics birthing center will be able to care for this population that is currently seeking care at Baptist Medical Center. Expectant mothers will not have to commute far to other hospitals such as St. Vincents, Memorial, or Shands Hospital. Mayo Clinics birthing center is believed to succeed. Mayo Clinic is known for their experienced doctors in every specialty. Neonatology specialists will be practicing in this birthing center to care for the mothers and their children. Specialists will be there during emergent times to care for unexpected incidences during these births. Past patients of Mayo Clinic have rated it as high patient satisfaction. Mayo Clinics ongoing superb reputation will attract patients to this

Mayo Clinic10 facility. The past satisfaction of the patients will spread to families and friends who will then seek care at Mayo Clinics Birthing facility. Strengths Mayo Clinic is a nonprofit worldwide leader in research, education, and medical care. Mayo Clinics research provides rapid discoveries to improve the treatment and prevention of injury and disease (Mayo Clinic, 2013). Mayos Clinic high reputation will attract expectant mothers to the birthing facility. Mayo Clinics revenue will provide the ability to open up the maternity ward. Weaknesses Because there are already hospitals in close proximity that provide a maternity ward, the need for Mayo clinic to offer this new service is slim. It will increase the expenses of the hospital substantially, creating a need for new investors. Opportunities Mayo Clinics birthing facility will be able to expand to provide prestigious care to the local communities and other residents out of state or even those from out of the country. The opening of the birthing facility will provide career opportunities. Mayo Clinic will be able to provide an Education Department for those seeking Neonatology Specialty in the future. By opening up a maternity center, Mayo Clinic has the opportunity to increase revenue and sales. This money can go towards paying off the maternity ward and also creates a prospect for more expansion.

Mayo Clinic11 Threats Other hospitals such as Baptist Medical Center, St. Vincents, Memorial, and Shands already provide upgrade birthing centers. These hospitals have birthed for years, therefore patients may have more trust and loyalty to these hospitals. Use of branding Mayo Clinic has created its own unique brand. The latest logo shows three shields intertwined to represent the three main focuses of Mayo Clinic: patient care, research, and education (Dasy, 2012). The primary focus of Mayo Clinic is to provide the utmost care one patient at a time represented by the biggest shield of the three. Over a million people visit Mayo every year in the Jacksonville, Florida location alone (Mayo Clinic, 2013). People choose Mayo Clinic because of 10 specific viewpoints. Mayo Clinic is a not for profit organization, they have experienced doctors in every specialty, they take the time needed for their patients, they have highly satisfied patients, they continue to innovate themselves, and they are a top rated institution that has advances in the latest technology, and education. Promotion/advertising Mayo Clinic has proven itself as one of the top leading health care facilities. It is nationally recognized by seven prestigious organizations for: its excellence in care, safety, reducing mortality rates for high rick procedures, preventing medical errors, and reducing hospital readmissions (Mayo Clinic, 2013). Using certificates and awards for advertising is an important marketing tool. People will expect the maternity ward of Mayo Clinic to have the highest standards of quality and excellence in relation to the main Mayo Clinic. To insure that the new facility is publicized; it will be advertise with billboards, health seminars, commercials, and social media. The new Maternity center will be promoted towards all expecting mothers. We

Mayo Clinic12 will not discriminate against incomes. This will allow a higher quantity of expecting mothers to take advantage of the new facility. Identification of staffing needs Our facility will house 50 rooms for the expecting mothers to give birth comfortably. It will have 10 more rooms than Baptist Medical Center making it competitive for the market. A substantial amount of staff will be needed including: Doctors, LPNs, RNs, midwives, receptionists, cleaning staff, anesthesiologists, department manager, nursing manager, admissions, health administrator. Mayo Clinic Maternity Center would like to extend the number of staff to 170 members to ensure that the new facility is well equipped. Each member will have to undergo rigorous training to meet the expectations of working at Mayo Clinic. ROI/Measuring outcomes

Before opening a new company or organization creating an ROI needs to be considered. ROI stands for Return on investment and it is a performance measure used to evaluate the efficiency of investment. It compares the magnitude and timing of gains from investment directly to the magnitude and timing of investment costs. (Cruz, 2009) It is one of most commonly used approaches for evaluating the financial consequences of business investments, decisions, or actions.

If an investment has a positive ROI and there are no other opportunities with a higher ROI, then the investment should be undertaken. A higher ROI means that investment gains compare favorably to investment costs. In all cases this is suitable; one should see the results of the ROI before proceeding. On the other hand, if the investment outweighs the income then you have to consider other factors before deciding on continuing. The formula to calculate ROI is

Mayo Clinic13 Return on Investment= (Gains from Investment Cost of Investment) / Cost of Investment. (Spector, 2011) The ROI for opening a maternity center outside of Mayo clinic is positive, Mayo Clinic and its consumers would benefit by having this brand new maternity center. Mayo Clinic would be able to expand and will be able to reach out to a new patient base, which are mothers of all ages and their babies. Mayo Clinics pricing is relatively high compared to other health care organizations but the quality of their care and services is relative to their price. By investing in Mayo Clinic Maternity Center, we are not only targeting a client base for today or tomorrow, but for years ahead. Our high cost investments for the Maternity Center will benefit the organization, along with the mothers and babies. The Mayo Clinic Maternity Center is going to plan for the future with their services, technology, equipment, education, and research in order to be the top Maternity Center in the world. This will include the Mayo Clinic spending millions of dollars on their investments, but it will pay off throughout the years with women all over Florida wanting come to Jacksonville, Florida to get the best experience and quality of care and services for themselves and their newborn babies. The Mayo Clinic has a hotel on their premise, which will allow families and friends from all over the area to come and stay while the mother is at the Maternity Center waiting to have her new baby. This is an example of ROI that the Mayo Clinic invested in, having a hotel on the premise of the clinic and hospital, so family and friends can stay close to their loved ones for however long they want. The Mayo Clinic planned for the future with building a hotel on their premise, knowing that one day there will be many reasons why a hotel would be needed. Conclusion The Mayo Clinic is ready to offer their outstanding quality services to mothers and their newborn babies. The Mayo Clinic Maternity Center will have the most qualified and skilled

Mayo Clinic14 medical personnel working to serve mothers and newborn babies. By investing in Mayo Clinic Maternity Center, we are not only targeting a client base for today or tomorrow, but for years ahead. We want to continue to be the best in patient care and services, so we can provide mothers and their babies the best quality care and service. The Mayo Clinic Maternity Center will have the most advanced medical technology and equipment in order to stay ahead in the labor and delivery market. We will have our doctors and medical personnel stay updated on the latest research and Education on labor and delivery, so our mothers and babies get the best care possible.

Mayo Clinic15 References Baptist Health Locations. (n.d.). Retrieved July 20, 2013, from http://www.baptistjax.com/locations BabyCenter (2013). Birth centers: alternatives to hospitals. Retrieved July 22, 2013 from http://www.babycenter.com/0_birth-centers-alternatives-tohospitals_2007.bc?page=1. Cruz, Jose N. "Social Media ROI - What Does It Mean?" New Media Drivers License. New Media Driver, 4 May 2009. Web. 25 July 2013. Dacy, M. (2009). Logo Logic: What do those shields mean? | Sharing Mayo Clinic. Retrieved July 26, 2013, from http://sharing.mayoclinic.org/2009/03/09/logo-logic-whatdo-those-shields-mean/ History of Mayo Clinic. (n.d.). Mayo Clinic. Retrieved July 24, 2013, from http://www.mayoclinic.org/history/ Jacksonville Population by Age. (n.d.). Retrieved July 20, 2013, from http://www.clrsearch.com/Jacksonville-Demographics/FL/Population-by-Age Maternity Center | Elliot Women's & Children's Services | Elliot Health System. (n.d.). The Elliot Health System | Elliot Health System. Retrieved July 24, 2013, from http://www.elliothospital.org/_newsite/wcc_maternity.php Mayo Clinic Health System (2013.) Birthing centers. Retrieved July 22, 2013 from http://mayoclinichealthsystem.org/locations/eau-claire/medical-services/birthing-centers. NAMAC (2009). What is strategic planning? Retrieved July 22, 2013 from http://namac.org/strategic-planning-what.

Mayo Clinic16 Pacetti, B. (2013). Strategic Marketing Mix | Mayo Clinic. Unpublished manuscript, Department of Public Health, University of North Florida, Jacksonville, Florida. Pregnancy & Childbirth | Maternal & Newborn Care | Baptist Health. (n.d.). Baptist Health | 800 Prudential Dr | Jacksonville, Florida 32207. Retrieved July 24, 2013, from http://www.baptistjax.com/services/maternal-and-newborn-care/pregnancy-and-childbirth Rosen, Andrew S. "Setting Marketing Goals & Objectives." Setting Marketing Goals & Objectives. Boys and Girls Club Marketing America, 6 Oct. 2009. Web. 25 July 2013. Rosenfarb, N. (2013). The role of strategic planning in building business value. Divestopedia. Retrieved July 22, 2013 from http://www.divestopedia.com/2/1112/pre-sale/preparation/the-role-of-strategic-planningin-building-business-value. Ross, Susan. "Target Markets and Market Segmentation - KnowThis.com." KnowThis.com. Know This LLC, 21 Nov. 2010. Web. 25 July 2013. Spector, Greg N. "Return on Investment (ROI)." Return on Investment (ROI). Audit IT, 4 Mar. 2011. Web. 25 July 2013. Strategic Marketing, (n.d). Market strategy integrating the firms efforts for marketing success. Retrieved July 22, 2013 from http://www.axcesscapon.com/sites/default/files/book_info_files/MM21c-ch09-preview.pdf.

Why Choose Mayo Clinic.(n.d.). Retrieved July 20, 2013, from http://www.mayoclinic.org/why-choose/index.html

ZipSkinny. (n.d.). Retrieved July 20, 2013, from http://zipskinny.com/index.php?zip=32224

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