University College Dublin

National University of
Ireland Dublin
Marketing Management

Assignment 2

UCD ID: 14208652

Student ID: CT0188990
Name: Liu Man
Words: 3218

Contents

1.Executive Summary................................................................................................................................2
2. Situation Analysis..................................................................................................................................2
2.1 Market Summary.........................................................................................................................3
2.2 Market Needs.............................................................................................................................4
2.3 Market Trends..............................................................................................................................5
2.4 Market Growth............................................................................................................................5
2.5 PEST Analysis.............................................................................................................................5
Political factor------------------------------------------------------------------------------------------------6
Economical Factors -----------------------------------------------------------------------------------------6
Social Factors-------------------------------------------------------------------------------------------------7
Technological Factors---------------------------------------------------------------------------------------7
2.6 SWOT Analysis...........................................................................................................................7
2.7Five Forces...................................................................................................................................8
Threat of new entrants-------------------------------------------------------------------------------------8
Threat of substitute products or services----------------------------------------------------------------9
Bargaining power of customers(buy)--------------------------------------------------------------------9
bargining power of suppliers------------------------------------------------------------------------------9
Intensity of competitive rivalry-------------------------------------------------------------------------10
2.8 Keys to success--------------------------------------------------------------------------------------------10
2.9Critical Issues-------------------------------------------------------------------------------------------10
3.Marketingplanning------------------------------------------------------------------------------------------------10
4. Marketing Strategy...............................................................................................................................11
4.1 Mission......................................................................................................................................11
4.2 Marketing Objectives................................................................................................................12
4.3 Target Markets...........................................................................................................................12
4.4 Strategies..................................................................................................................................12
4.5 Positioning.................................................................................................................................13
5. MPLEMENTATION CONTROL........................................................................................................14
5.1. Implementation.........................................................................................................................14
6.Conclusion............................................................................................................................................14
7.Reference:.............................................................................................................................................16

1.0 Executive Summary

The following report presents the marketing strategy of ID Hospital. ID Hospital is a
famous medical hub in Asia, which has advanced technology medical systems,
research and development methodology, as well as the best medical staff. With the
development of science and technology, ID Hospital has become a medical hub with
the most advanced technology. In order to explore a bigger market, the hospital makes
a marketing plan and expert to get more information.
According to the survey taken by the hospital, they made the objectives as follows:
(1) Create brand new image for ID Hospital.
(2) Be highly accepted among the consumers from all over the world.
(3) Gain a profit 12 billion by the end of 2020.

2. Situation Analysis

The fine development of cosmetic surgery technology aims to establish a more perfect
"plastic design". In the past, simple cosmetic surgery to repair as ordinary surgery,
which aims to solve the defects of the pathological procedure of human nature and
fine degree is still not fully play (Duncan, T.I. 2004). But today's plastic technology,
begins to focus on life and beauty, the main purpose of the customer is in becoming
"more beautiful", so, personalization, personal plastic design becomes the key to
customer visits (Lauterborn, R.F. 2010).
On the one hand, more than cosmetic surgery using minimally invasive technique of
suture, surgical incision in general are controlled within 2 cm, incision finer,
technique of suture and more perfect (Morgan,R.M .& Hunt,S.D. 1994). Different
projects, on the other hand, began to develop unique technology, the technology used
in the preoperative design, such as plastic hairdressing hospital development in Henan
province "gold five line" breast implants, "10 position measurements of liposuction",
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the three elements of the "gold" edges, whether it is a necessary to brand promotion or
the need of technology itself, all of these, as the narrowing of the technical differences
and homogeneity, cosmetic surgery is developing towards a more "refined" way.
With technology constantly updated, it will promote the development of cosmetic
beauty industry directly.

Technology updates, made plastic surgery safer and less damage, better effect, and
most often plastic surgery implant materials are also constantly updated and improved
year by year, which are safe to human body, better compatibility with the body's
tissues, closer range of physical characteristics, more natural and more real, which in
turn make more people begin to accept plastic fake body.

With the further development of internationalization and globalization in recent years,

in order to keep pace with the international advanced technology of hair exhibition,
domestic plastic industry on a large scale of talent exchange and academic exchanges
have become routine. Orthopedic hospitals look through the international
communication, update technology, develop new markets, and often use brand
promotion international experts so as to play a brand effect. In short, the world of
cosmetic surgery technology difference is narrowing, while technology of
homogeneity is big.

2.1 Market Summary

As is known to all, ID have a plastic surgery clinic to achieve the market development
space, while South Korea is a holy site in the cosmetic industry, so for the hospital,
the market is huge. According to a survey directed by ID Hospital, average six
persons in ten have the intention to be beautiful, and the most reliable place they think
is the hospital. The ID Hospital is the most famous all over the South Korea, and it is
easy to spread to everywhere around the world.

Psychographic
When it comes psychographic, people are successful in their career and have the
ability to enjoy their life in their social group. They usually think that they should be
perfect, not only in life but also in appearance, therefore, they are the potential
customers of the ID Hospital.
Geographic
ID Hospital has made significant growth, and to date, covers more than 200 stores
across 26 countries located in the South Korea and some Asian countries, Moreover, it
had launched an e-store in 2008, Facebook page and mobile application that offers
access to a worldwide service, which serve both domestic and international customer.
Demographic
ID Plastic Surgery Clinic has being targeting young women at the age of 20-40, most
of them are females who have step into the working society. Forty-eight percent
females among them are 23 to 34 years old, which covers a wide age range, including
young users to active adults. The fashion-conscious people tend to be ages 20-40.
These people are social oriented and show high concern on fashion trends to enhance
personal image in social circle. In their opinion, their looks are more important than
their money.
Behavior Factors
As people living standards rise, the more people pay attention to the quality of living
standards. Beauty, however, is the best investment, so the people in front of the tag is
oneself become more outstanding, which is the trend for cosmetic (David, F. 2000).
Fact is as expected, investigation and study showed that in order to be more goodlooking people tend to go to cosmetic surgery, because in their eyes, money doesn't
matter, but the important thing is spent on themselves.

2.2 Market Needs

With the progress of economy and science developed, the concept of social change,
and the competition, more and more people tend to go through cosmetic surgery to
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change their image, hope for good life, enrollment, employment, work, love,
marriage, social life, so as to improve their quality of life, realize own dream, or even
change your life ( Lawrence, C. 2001). In this form of influence, medical cosmetic
surgery organizations begin to rapidly increase, bringing more and more capital and
talent into the industry.

2.3 Market Trends

Twenty years ago, the great majority of plastic surgery hospital in plastic repair is
given priority, and beauty was just secondary. Service subjects were mostly the
trauma, burn, due to congenital factors, or disease caused by the body has obvious
deficiency, dysfunction of patientsPhilip, K. 2003).
For today's cosmetic surgery, in addition to carry out the traditional plastic repair, the
main purpose is regarding beauty. More will be changed with the help of modern
medical cosmetic surgery technology and more will strive for the beauty of face, body
and skin. Healthy people, who may have good physiological and psychological health,
are called "customers".

2.4 Market Growth

As a new industry, cosmetic surgery also gets affected by the change of the times and
the change of the service object, and ever constantly changing customer requirements.
In order to adapt to this change, cosmetic surgery scope of subjects is becoming more
and more (Alan, R. & Jack, T. 2001).

Starting in psychology, medicine, nutrition,

aesthetics, ethics, fashion, market and marketing, etc., it touches most of the academic
disciplines.
Timeline
1960-1980: Science and technology are behind, peoples focus on beauty is not
very big.
1980-1990: The development of the science and technology had some
breakthrough, but their awareness of beauty have not reached the corresponding level,
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so there were few cosmetic customers.

1990-2000: With the progress of science and technology and the progress of the
society, people with wealth begin to pay close attention to facial plastic surgery
2000-2010: The progress of science and technology makes cost reduction, so
more and more people avail cosmetic surgery
2010-2015: Beauty has become a fashion; cosmetic surgery is also a kind of
fashion

2.5 PEST Analysis

P E S T Analysis refers to Political, Economical, Social, and Technological factors
that influence the marketing planning of a brand or product to a new market.

Political Factors:
The Korea government regard medical tourism as its sunrise industry, which aims
to achieve the goal of developing tourism and cosmetic surgery at the same time. The
department of Tourism and the Seoul travel guide decide to increase the
advertisements to promote the development of its medical beauty industry. The action
will undoubtedly make agencies like the ID hospital become more popular among
customers from other countries. The law of Korea clearly ensured that medical beauty
industries have the right to promote their services to foreigners.

Economical Factors:
The medical beauty industry of Korea has become a typical example of the advanced
cosmetic industry. Its highly developed medical beauty industry attracted customers
from both Asia and Europe. To some extent, its reputation has spread all over the
world, so that if the ID hospital expanded abroad, it will be more competitive than its
competitors from other counties.

Social Factors:
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As time goes by, with the improvement of peoples living standards, now it is very
common to have cosmetic surgery. More and more people are frank to admit that they
have or going to have cosmetic surgery. Some people even prepare a cosmetic surgery
for their son or daughter as 18th birthday gift. Time has changed, so do peoples
thoughts. Further, the world holds an open attitude to medical beauty.

Technological factors:
Generally speaking, the differences between the level of medical technology of China
and Korea is slight. While, both Japanese and Koreans are strict to themselves, they
always do things cautiously, and they are characterized by carefulness. In Korea,
doctor is regarded as a holy profession, so that it is very difficult for them to get the
medical license. In addition, the advantages of Koreas medical technology lie in the
fact that the doctors have a high demand on specialization of their profession. For
instance, some of them focused on eye surgery, others focused on nose surgery. Those
doctors believe in the truth that practice makes perfect, so that their technology is
reliable.

2.6 SWOT Analysis

Strengths:

Weakness:

-superior geographical environment

-high cost of surgery

-largest medical resource in South -unfamiliar environment and language

Korea

barrier for foreign patients

-safe and convenient hospital building

-highly trained staff and advanced
technology equipment

Opportunities:

Threats:

-plastic surgery becoming popular -news

of

botched

trend

accidents

-updated aesthetic concepts

-medical malpractice

-effective

consumer

operations

or

protection -less qualified doctors

agreements

2.7 Porter Five Forces Strategy Analysis

Porter five forces analysis is a framework that is used to analyze level of competition
within an industry and business strategy development. These forces are closely related
to the micro environment of a market. All in conclusion, the five forces are as the
follows:
Threat of new entrants
According to a survey, there are about 45 million people in Korea, but there are about
2500 plastic surgery hospitals. In the world famous cosmetic street of Seoul, there are
about 200 medical beauty agencies. The competition at home is so fierce, not to say
new entrants from other countries. In a word, if ID hospital wants to win, it must
make the best use of its advantages, and fully make use of its brand effects.

Threat of substitute products or services

At present, the threat of substitute products or services may come from some beauty
product or make-up product, and some beauty devices or machines. Nevertheless,
such threats have no powerful ability to compete with plastic beauty surgery hospitals.
Products and services of the ID hospital belong to the medical appliance grade. Its
effects are obvious and it can last for a long time, and the beauty is much more
natural. In other words, the medical beauty industry is unique and special.
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Bargaining power of customers (buyers)

To be frank, the medical beauty industry is a kind of luxurious consumption.
Generally, only when people satisfied their basic living requirements or necessities of
life then they start to pay attention to their appearance. What is more, only those who
are rich enough have the ability to pay for the plastic beauty surgery. Most famous
stars tend to undergo medical beauty operations. So, that is to say, once the customer
make up his mind to change, he would care little about the price or cost of the surgery.
As a result, the bargaining power of customers can almost cause no negative effect to
ID hospitals marketing.

Bargaining power of suppliers

ID hospital has long held the idea of providing the best service with a proper price. Its
prices of products and services are comparably reasonable, which will undoubtedly
contribute its bargaining power. Besides, ID hospital aims to win popularity through
its first class services, so, the bargaining power only play a small part in its
competition, which will not have large effects on its development.

Intensity of competitive rivalry

As to the intensity of competitive rivalry, this may be account the most significant
factor that will influence ID hospitals marketing expansion. As is well known, the
medical beauty industry is a newly developed industry, and it is the most promising
field. To ID hospital, the fierce competition pressure is both a challenge and an
opportunity to improve itself.

2.8 Keys to Success

The keys to success of ID Hospital is propagandizing the brand and building a perfect
image for customers. In addition, ID Hospital has established total customer
satisfaction by delivering the values of quality, service and pricing as well as
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satisfaction to the customers. Through these keys to success, it has become a potential
profitable and sustainable company that foresees the success for future by laying a
platform for expansion.

2.9 Critical Issues

To attract the broad masses of customers to do operations, the key is to make the
people believe the hospitals technology and service quality. If the hospital wants to
be successful all over the world, it must be reliable for customers. According to the
survey, the price must be decreased, because the high fee can not apply for everyone
who wants to be more beautiful. In addition, the level of services also should be
increased. For example, the language is one of the most important factors. Foreigners
can communicate better with the doctors and nurses if that comes true.

3.0 Marketing Planning

In order to successfully enter into a new market, I think the ID hospital can make a
marketing plan from the following several aspects: first of all, it should make the
fullest use of its advantages over technology, products, first class services and rich
experience; secondly, it should value the importance of the brand, if the brand is well
known, the services would turn to be more appealing by increasing its price, but not
reducing it; in addition, it should rethink the weak points of its products or services,
thus to provide better services. Another important point is: before entering the market
abroad, the managers should firstly make some investigation into the situation of the
target market place, and the factors such as its competitors, the brands popularity, the
employment costs, the tax expenses must be carefully analyzed.

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4. Marketing Strategy
The growth of fashion industry has caused an increase in competition market
worldwide. With such growth, ID hospital faced several challenges especially in the
strong competitive market.
The main focus of ID hospital marketing strategy is to extend its service, expand its
influence in overseas market to increase customers base and maintain good customer
relationship to retain loyal customers of ID hospital (Burr, V. 2003). Through the
continuation of improvement and innovation, customers are able to experience
product varieties, which will project a better brand image in the mind of consumers.

4.1 Mission
ID hospitals mission statement, a statement of its organization values by offering
services to its customers. Indeed, ID hospital has shown values that keep customers
loyalty and likings (Xing,Q,P. 1995). Not only the service is in better quality, it also has
provided distinctive line that captures the women's choice and many alternative ways
of pay, which can make customers feel better.

4.2 Marketing Objectives

Every organization has its own core competences and brand equity. Building up
strong brand equity makes brand valuable. There is a need for ID Hospital to have
brand differentiation.
Some objectives that ID hospital has to achieve according to the marketing plan:
Increase customers
Build effective campaign to bring in new customers
Build three hospitals named ID Hospital by the end of 2016
The profit expect to achieve 12billion per year in 5years
Build another three hospitals named ID Hospital by the end of 2020

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4.3 Target Markets

According to the plan, the target market is Asia in the beginning two years. After the
first stages goal is achieved, the second should be taken, and make the brand all over
the world.

4.4 Strategies
Strategy indicates a long-term goal and a plan of action that effectively creates a
vision for the organization. In order to remain competitive and sustainable, in order to
achieve its goal, the following strategies for the next few stages must be taken:
Firstly, a lot of media must be adopted, because they can spread the brand and
make it known by every one.
Secondly, increase the quality of service and make good impression for
customers, only in this way can the hospital achieve the goal of becoming famous.
Thirdly, after attracting customers, the price of operations must be reduced.
Fourthly, when the market occupies the market of Asia, maintain this situation
for a period of time and then expand to the international market.

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4.5 Positioning
spread its brand

hig
h

hig
h

cooperati
on

low

lo
w

ID Hospital has been one of the most popular hospital which is considered the first
hospital in Asia that specializes in maxillofacial surgery and known as the high
quality of technology and service. In todays market, it is shown that there is an
increase in beauty conscious consumers (Singaporeans are beauty conscious, 2010).
Hence, ID hospital will position itself as a high quality group that offers variety of
beautiful operations. For instance, it cooperates with a lot of common hospitals and
offers great support with maxillofacial surgery. In the mind of consumer, the beauty is
priceless and there is no chance for all of people to change faces. On the one hand ,the
hospital makes every effort to spread its brand; they hope the brand can be known by
everyone. On the other hand, it also makes cooperation with different common
hospitals and clinics. Through this way, the hospital can make full use of its resources
and high technology (Krishna C. 2001). In order to move towards such positioning, it
has to maintain its current awards and also improve the award in their different
specification, such as fame, technology and service quality.

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5. Implementation Control
5.1 Implementation
The milestones chart on the next page identifies the key marketing programs. This is
to help the marketing managers of the company to assign the tasks, make sure the
tasks are successfully done on time and on budget.
Milestones

Plan

Milestone

Start Date

END Date

Budget

Manager

Department

Marketing

4/9/2015

6/9/2015

Bob

Marketing

8/9/2015

12/12/2016

700,000

Tim

Marketing

10/9/2015

20/2/2017

90,000

Tim

Marketing

Spread brand

20/9/2015

20/9/2010

11,070,000

Marketing

cooperation

20/9/2017

20/9/2020

3,500,700

Marketing

plan
completion
Broadcast
advertising
Print
advertisement

Total

15,360,000

6. Conclusion
It is obvious that the medical cosmetic industry is an industry with great demand and
development. With the development of the times, the status of cosmetic beauty
industry is increasing. In order to extend its brand, ID hospital aims at making
scientific marketing strategy, clearly grasp the law of development of the market and
the real needs of consumers. The market investigation and analysis can help make
conclusions about the present and the future development trends of the cosmetic
industry, and can make a series of strategies to achieve the companys strategic goals:
expanding brand awareness and cooperating with many medical clinics and hospitals,
15

making full use of their resources and technology to achieve its profit targets.

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Reference
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university.
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61(41): 26.
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[7]Philip, K. (2003) Concepts Every Manager Needs to Know. American: John Wilry &Sons.Inc
[8] Alan, R. and Jack, T. (2001) Positioning, the battle for your mind. United States of American:
McGraw-Hill companies.
[9]Vivien,B. (1995) An Introduction to Social Constructionism. London: Routledge.
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(Grreat Britain Journal Of Nature), 41(8), pp.22-24.
[12] Krishna C. (2001). Using customer information effectively. Available At:
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[Accessed 8 April 2015].

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