HANOI UNIVERSITY

FACULTY OF MANAGEMENT AND TOURISM

Vinmec
Service Marketing
Report

Group 6 - Tutorial 2
Tutor: Phan Thi Kim Ngan
Members:
Nguyen Thi Chuyen ID: 2004050009
Ngo Hong Giang ID: 2004050015
Nguyen Thuy Hanh ID: 2004050022
Tran An Thu ID: 2004050049
Nguyen Thu Trang ID: 2004050056
TABLE OF CONTENTS

02 Abstract 12 2. Price

03 Introduction 13 3. Place

05 The impact of the pandemic on

Vinmec’s demand
15 4. Promotion

07 1. Perishable 17 5. People

08 2. Intangible 19 6. Peocess

08 3. Variability 21 7. Physical evidence

09 4. Inseparability 22 Blueprint

10 7Ps Analysis 23 Recommendation

11 1. Product 30 Conclusion

31 References

1
 ABSTRACT
Throughout the Covid-19 pandemic, from 2019 until now, while
numerous industries have been devastated and some even gone
bankrupt due to the epidemic such as: entertainment industries,
F&B industries or hotel industries, a service industry which has
been affected the least is the health-care sector. To give the
whole insight on how this industry came through the crisis, a
study has been conducted and delivered online with our keenness
and consideration. This research investigates the health-care
service in whole and the Vinmec company in specific, which can
give out an overview on this problem through informative traffic
organic data, theories of service marketing, SEO search tool
along with a number of former researches. This study will brief
the readers on the influences of Covid 19 on the industry
(perishable, intangible, inseparability and variability), the way
the company operated either the 7Ps marketing mix or the
blueprint to gain back the adequate profit for handling business
in a year and the solutions came up to deal with the pandemic as
soon as possible. Moreover, the study will also deliver some
recommendations for the company’s further solution in the
future.

2
INTRODUCTION

Vingroup, Vietnam's foremost private

consortium, has invested to develop Vinmec,
which is a non-profit medical system
including two JCI-accredited facilities. Vinmec
was founded in 2012 and till now has boasted
seven international-standard hospitals and
four clinics due to the leading healthcare
specialists and comprehensive services.

On the basis of development momentum,

Vinmec has been divided into three
components: hospitals, research institutes,
and educational institutions. In 9/2016, Vimec
claimed the title “The Most Improved Local
Hospital” accreditation by “Asia Hospital
Management Association” and in the following
year, they were recognized as the first
independent TAVI Interventional Cardiology
Center in Vietnam.

With the location distribution along from the

NGUYEN VIET QUANG Northside of Vietnam to the Southside,
VINMEC'S CHAIRMAN Vinmec carried out the core values as
Creativity, Accountability, Reliability and
Excellence.

3
INTRODUCTION

In such a condition of pandemic

catastrophe, it's unlikely that none of the
industries have been harmed, and Vinmec is
no exception. Because the Covid 19 froze
all social acts, fewer people came to the
hospital for treatment; instead, they stayed
at home and self-treated with the help of
specialists on social media platforms. VISION

But, the company has been really quick-

witted and agile in the way of conducting
the 7P marketing mix strategies, Vinmec
VINMEC AIMS AT
had made extensive use of both online and BECOMING VIETNAM’S
offline platforms to interact with citizens
and provide service, which only a small
LEADING HOSPITAL
percentage of health-care service providers CHAIN
could do at the time.

In this study, the impact of the Covid 19

crisis will be examined, and all marketing
methods will be presented and analyzed,
leading to recommendations to the
corporation that may be beneficial in the
long run.

4
THE IMPACT OF
THE PANDEMIC
ON VINMEC’S
DEMAND

Perishable
Intangible
Inseparability
Variability

THE IMPACT
Since 2020, the new coronavirus
pandemic has generated a global
public health emergency. According
to WHO, the pandemic has caused
486,761,597 confirmed cases worldwide
with more than 6 million confirmed deaths.

Governments have addressed Covid-19 by reducing contact rates

within the population such as school and workplace closings,
workforce reductions, public event cancellations, public
transportation closures, international travel restrictions, and
quarantines. These actions have made an impact on the world’s
economy, including the healthcare industry (Health System Tracker,
2021).

The COVID-19 pandemic has had a significant impact on health

systems' ability to continue providing essential health services.
According to a report by The Global Fund, the fear of catching
COVID-19 from their visit was the reason for people not seeking
medical care. In addition to directly killing people worldwide, the
COVID-19 epidemic is also interrupting crucial health services and
undermining years of progress in combating other deadly illnesses.

The effect has not excluded Vietnam, according to VN Express,

many private hospitals report losses when medical examination and
treatment activities "freeze" while they still have to pay extra costs
for COVID-19 prevention. During the 4th outbreak, many hospitals
had to go through 3-5 months to stop or limit the admission of
patients to minimize the transmission. In particular, the total
revenue of Vinmec has experienced a decline of 3,025 trillion VND
in 2019 to 2,7 trillion VND in 2020 (Vingroup Annual Report 2019-
2020).
6
THE IMPACT

Looking deeper into problems, we find out the

four main characteristics of service that
contribute to the healthcare industry's revenue
decline.

PERISHABLE
Since healthcare services are very perishable,
services in the hospitals cannot be kept or
inventoried like products. Doctors’ advice and
appointments to patients are perishable, if the
clinic is closed for an amount of time, then the
unutilized capacity cannot be saved for future
purchase. As a consequence, the hospital will
then lose money on such closed days because of
COVID-19

7
THE IMPACT
INTANGIBLE
In marketing services, intangibility
refers to a consumer's inability to
predict the value of utilizing a
service. According to Lehtinen &
Lehtinen (1982), service quality
must be evaluated and judged on
two levels: the service delivery
process and the service delivery
results. If clients cannot directly
experience the service of Vinmec
during the quarantine period, they
will have difficulty deciding
whether or not to employ the
services of a healthcare provider if
they are not provided with enough
information about the service
quality.

VARIABLITY
It is the most customized service which consumers buy and yet its
variability stands as proof of the difference between health care services
and other services. Health care is a service that presents a considerable
variability in physician performance and service delivery. The variability
not only refers to the changeable skills of physicians and service style
but also to technical skills referring to the equipment used for analyses
and diagnostics. During the time of social distancing, Vinmec hospital
has been equipped with advanced machinery and support platforms for
online medical examination. Therefore, Vinmec service variability has
changed considerably in this period.

8
THE IMPACT
INSEPARATABILITY
Inseparability is the characteristic that refers to the fact that a producer or the
provider of the service cannot be separated from the process of delivering the
service at a certain moment in time.

Health care services are inseparable from the service provider mainly because it
is a service that addresses the contribution of individuals. So patients for a
clear, accurate diagnosis must be physically present where the health service is
delivered.

For the first time in history, a health crisis has slowed down economic activity
across all industries, including the healthcare industry. The Covid-19 outbreak
leads to doctors being unable to treat their patients optimally because all
people have to practice social distancing to reduce social contact to protect
themselves and others whereas urgent cases related to Covid-19 must be given
priority; which prevents patients with milder illnesses from going to hospitals
and receiving treatment directly from doctors.

9
 Product

Physical
Evidence Price

7PS
Process Place

People Promotion

7PS ANALYSIS

10
7PS ANALYSIS

PRODUCT

Vinmec international general hospital

has three main types of products and
services: specialist examination
services, medical examination and
treatment service packages and
emergency services.
Specialist examination services
Obstetrics and gynecology and assisted
reproduction, Heart, Pediatric,
Oncology - Radiation therapy, General
health, Digestion - Hepatobiliary,
Musculoskeletal,...
Medical examination and treatment
service packages:
Maternity package, Armor Screening
Pack, Umbilical cord blood, General
health check, Cancer screening,
Insurance & Membership Program,
Hepatobiliary screening, Cardiovascular
screening and other service packages

Emergency services
Vinmec was the first to use the Hybrid
Discovery IGS 730 technology to
perform complex procedures.

11
7PS ANALYSIS

PRICE
At Vinmec, the service pricing list is highly broad, and prices are
usually variable on a per-service basis
Depending on the service, Vinmec's service prices range from
300,000 vnd to 25 million vnd. In general, the more complicated the
procedure, the higher the cost.

12
7PS ANALYSIS

PLACE
distribution
Although being affected severely by the covid 19 pandemic, Vinmec International
Hospital website just witnessed a slight decrease in the organic search traffic with 2,8%
within 6 months from September 2021 (the time when the disease can spread with the
top speed) to the end of February 2022.

https://www.semrush.com/website/vinmec.com/

However, the website still experienced high results from traffic from search at 93.60%
and direct at 5.95%.

https://www.similarweb.com/website/vinmec.com/#traffic-sources
13
7PS ANALYSIS

PLACE

BOOKING A GENERAL CHECK-UP

When the covid-19 pandemic is spreading out
speedily, all of the services are locked down,
except for the emergency. Patients are even
encouraged not to visit the hospital so often to
avoid getting covid-19 if they are not actually
in urgent condition.

At Vinmec, the patients do not have to go to

the hospital for a general check-up, booking
service is preferred the most during the
quarantine. The patients can easily book
appointments online directly through website
www.vinmec.com or call the hotline. The
booking procedure not only reduces the
customer waiting time but also bridges a gap
between people when the pandemic super
spreads.

BRANCHES
Currently, Vinmec International Hospital system
consists of 7 hospitals and 4 internationally general
clinics throughout big cities in Vietnam. The patients
from those cities or the neighborhood can come to the
hospital to experience the best service ever.
Moreover, Vingroup is going on establishing more
Vinmec Hospital branches and fluctuating along with
more innovation to meet the customer’s requirements.

14
 7PS ANALYSIS

PROMOTION
Vinmec International Hospital system currently brings out so many promotions which
help to attract the customer’s attention, especially saving them a certain amount of
money when experiencing the services from the hospital.
A check-up after getting covid-19 (15/3-31/3/2022):
Discount 10% for the first 100 customers when using the service during March
2022.
Save up to 20% for the dietary supplement to protect customer’s health after
covid-19.
Save up to 70% for a general check-up at Vinmec when paying through Viettel Pay
Free general check-up weeks
Big preferential treatment for the birthday of Vinmec Hospital

https://www.facebook.com/Vinmec/

15
 7PS ANALYSIS

PROMOTION

There are so many prevalent

campaigns created by Vinmec
International Hospital to maintain the
quality of services provided to attract
more potential customers and fight
against the covid-19 plague.
Save 10% for general check-up
Save 5% for VIP check-up

https://www.facebook.com/Vinmec/

Celebrating International Women’s

day by discount up to 50% for the
first 200 customers

https://www.facebook.com/Vinmec/

16
7PS ANALYSIS

PEOPLE
WELL-TRAINING
Vinmec supplies staff with some of the online works since Covid
SESSIONS FOR 19 is a barrier owing to the social distance it creates. Employees
PERSONNELS are well-trained for 24/7 counseling and for being extremely
creative in all posts on how to deal with customers' post-covid
ADDITIONAL STAFF situations, which is a popular topic these days.
FOR ONLINE BASE
SERVICE
Vinmec creates value to clients by allowing them to request
diagnoses at any time, which helps boost not just the hospital's
DOCTORS FOCUS
engagement with citizens via the Internet, but also the
ON TELEHEALTH
conversion rate. If the posts can touch the people's problems,
they may be able to convert them into patients.
STAFF EXECUTE THE
COVID PROTECTION Beside the core service of the hospital is the health-care service,
GUIDELINES a safe-keeping supplementary service is executed on the Covid 19
pandemic by the doctors and nurses, too. They are trained to keep
self-social distance and constantly check the temperature of all
patients as well as remind them to sanitize hands when entering
the hospital.

17
7PS ANALYSIS

PEOPLE
Moreover, for clients that still come to the hospital, the company still provides the
reception service with staff giving out safety instruction like temperature check or
hand-sanitizing and proper guidelines to get the diagnosis.

A huge difference between Vinmec human resource redesign and other hospitals is
that when other hospitals try to supply more HR in order to go for the field hospital
plan, Vinmec, based on a high interaction, database network system, decides to gain
the number of workers in order to cure patients with Covid from afar - telehealth.

Furthermore, doctors and nurses continue to do direct diagnoses for patients admitted
to the hospital, but only on a limited basis, which either reduces infection rates,
prescribes medications, or aids in the treatment of major infections when necessary.
Vinmec has made far greater use of the allied health assistant workforce in this
context.

18
7PS ANALYSIS

PROCESS
For the best results in Covid cure, Vinmec
Hospital has chosen to initiate training
sessions for medical personnel regarding the
COVID-19 epidemic. According to some
service theories, they do an excellent job of
balancing the requirements of
patients/customers while also ensuring
effective pandemic prevention.

ABOUT THE TREATMENT PROCESS

Because doctors and nurses have such close
contact with Covid-19 patients, according to
the script theories of service marketing, it is
mandatory for them to wear protective
clothing, special design gloves, and medical
facilities when treating patients with
Coronavirus or interacting with patients with
suspected SARS CoV-2 virus infection. The
workforce is divided into three zones, each
representing three different levels of
infection: Zones with a high risk of infection
(Red Zone); zones with a medium risk of
infection (Yellow Zone); zones with a low risk
of infection (Green Zone).

19
7PS ANALYSIS

PROCESS
In addition, as being scripted on the plan,
doctors and nurses in zones yellow and red are
"completely equipped" with protective
equipment even when cleaning medical
facilities after usage in order to ensure the
safety of all other patients. The masks are
always provided free of charge to the
employees so that the doctors can work to
their full potential without the fear of
catching infection. The Script at each zone's
staff area delivers the goal of keeping the
doctors safe, which maintains the human
workforce for the hospital to not fall into
shortage of human resources.

For the patients, the role should be fulfilled is

the right order of the treatment process: the
patients have to firstly take the PCR test, then
come to the isolation zone, take the covid test
everyday to check if infected or not, if get
infected, the patients will comply the
instruction of the hospital to move to the
curative department, get treatment and
medicine on a regular basis until cured off the
disease; if not infected within 30 days of Covid
checking, the patients are allowed to arrive
home and come back to work.

20
7PS ANALYSIS

PHYSCIAL EVIDENCE
It does play an essential role in health care services, as the
fundamental benefit a customer seeks is appropriate diagnosis and
cure of the problem.

SMART BUILDING INFRASTRUCTURE

According to the Vingroup Annual Report 2020, Vinmec prioritized
enhancing service quality at current facilities above constructing new
hospitals and clinics during 2020. Vinmec Ocean Park and Vinmec
Smart City in Hanoi are currently under construction and are
scheduled to open soon. Vinmec wants to indicate through a smart
building infrastructure that offers the hospital to meet all of the
patient's needs.

SMART APP
OneVinmec, the first medical
service application, was
launched in May 2020 to meet
the requirements of its
patients while limiting the
spread of the pandemic.
Vinmec will expand its medical
services after this initial step,
while maintaining safety,
confidentiality, and efficiency.
This not only helps improve
the customer experience but
also considered as physical
evidence for differentiating
itself as an unique and worth-
to-pay hospital.

21
BLUEPRINT

In this parts, our team will detail many blue printings of phases
that connect to customers (patients) and doctors, as well as
what they do in these phases.

HOSPITAL BLUEPRINT

22
RECOMMENDATION

Products
Promotion

23


RECOMMENDATION

PRODUCT
Diversify types of medical treatment
Vinmec hospital should expand more types
of centers for research and application of
medical advances (research and application
in drug production, inheritance of
traditional medicine applications,
technology center, gene...) as well as new
types of services such as medical tourism
services. They can also associate with
travel agencies to organize hospital tours
in combination with medical examination.

Make a difference
The hospital can apply a weekend health
check program where additional check-ups
are performed every Saturday and Sunday
instead of only operating on Saturday
morning. This activity will receive benefits.
There is a great response from customers,
especially companies that sign a contract
for general health check-ups with the
hospital. In addition, Vinmec needs to
develop a membership card program
designed as an insurance model with a
longer term (2-3 years instead of 1 year
like the current one) and in addition to
preferential levels, attractive programs and
more suitable to the needs, time and
ability of the guest.

24
RECOMMENDATION

PRODUCT
Offer the perfect service packages
Sign up to use the perfect package. For example, the package of
maternity services (birth package, cord blood storage package,
postpartum screening package, package vaccine package...) should form
a perfect package to avoid losing registration time. Sign up for services
many times and save costs and convenience for customers.

25
RECOMMENDATION

IMPLEMENTING TECHNOLOGY AND AI

The Vinmec International Hospital is certainly impacted by covid-19 pandemic so it
seems necessary to prepare several plans in order to deal with, even when the
pandemic passes out. Along with these methods, the Vinmec International Hospital is
supposed to hold its powerful position throughout every single stage of the global
epidemic.

Vinmec is well-known as one of the prestigious

international hospitals in Vietnam.
Therefore, it is proper that implementing technology and devices with AI into the
working process of the whole hospital system is going to be viral at Vinmec.
Especially, at this time, when the covid-19 pandemic is superspreading out so
quickly, the experience from the patients will reflect the high professional level of
the hospital.

26
RECOMMENDATION

IMPLEMENTING TECHNOLOGY AND AI

Improving online booking system
During the quarantine, every activity is limited as much as possible, apart from emergencies.
Instead of going straight to the hospital to book an appointment for a general check-up,
patients could use a booking app of Vinmec hospital to set up a meeting with the doctors.
This method will literally reduce the customer waiting time and save energy for both staff
and patients. The patients no longer have to wait for a long time to be in their turn or even
be sent home since the hospital is overloaded.

Smart banking payment

E-wallet encourages customers to use more services from the hospital because it is super
convenient to limit the chances of directly interacting between people and reduce the
probability of getting positive with covid-19.

Establishing an IA system
Robot is widely used in daily life whereas it seems to be strange to be used in hospitals. AI
is the greatest invention of human beings ever and it is much greater than that when AI-
based robots are developed and applied to help patients. Vinmec can actually use robots
equipped with AI at the main lobby to guide the patients the direction to everywhere they
want. Moreover, an AI-based robot should be provided with a recognizing function which is
expected to figure out people getting positive with covid-19 when they show up in the
lobby. Whenever it recognizes something extraordinary, it will prevent people from going on
with the “bip bip” sound and help to protect Vinmec hospital from breaking out.

AI-based devices can also diagnose the customer’s health through analyzing their sample as
well. The patients only need to stay at home and follow the direction from the doctor to do
some simple tests which totally can be done at home and send them to the hospital; then
the sample will be diagnosed by the innovative technology of AI-based devices before
giving the feedback to the patients about their health. In a nutshell, implementing high
technology is one of the key reasons to help Vinmec remain its dynamic position in the
hospital market and foster the Vinmec International Hospital’s reputation.
27
RECOMMENDATION

PROMOTION
Advertising
For Vinmec’'s customers in general and domestic customers in particular, the most
effective advertising is in the media or in the form of advertising on the internet.
Vinmec should increase advertising on media such as outdoor advertising that
creates a prominent image of Vinmec, newspaper advertising that is flexible and
widely disseminated, and advertising messages that can be viewed over and over
again. time. Changing the design, form as well as content of leaflets, brochures,
creating attention for customers with beautiful images, full of information.

In addition, the hospital should send brochures and leaflets to the hospital's clinics
and partner companies and encourage them to send customers to the hospital with
an attractive commission. In particular, Vinmec should focus on advertising through
its customer policy because this is the most effective and cost-effective word-of-
mouth communication channel.

28
RECOMMENDATION

PROMOTION
Sponsorship
Vinmec should strengthen sponsorship
of some charity programs or competitions
such as medical code of conduct, skills
improvement contests, or sponsor medical
school students with excellent results,
poor students overcome difficulties...
contribute to charity organizations. In addition, the hospital can organize events,
conferences, seminars on new treatment methods, management methods and
hospital development... However, the programs that Vinmec sponsors must be
selective and the consideration of funding costs, how it affects customers to target
the target market, makes customers pay attention to Vinmec.

Evaluating effectively
In order to perfect the tools of service development, Vinmec should regularly
evaluate the effectiveness of promotion tools to make reasonable adjustments, such
as for less effective tools, Vinmec International General Hospital should understand
the cause for re-adjustment or elimination. Regularly renewing and diversifying
promotion tools to bring novelty and attraction to customers, especially loyal
customers of Vinmec.

To get the best results, Vinmec also has to regularly observe, review and evaluate the
promotion activities of competitors. From this activity, Vinmec can draw out what
they have achieved and still need, what strengths they have compared to
competitors, then they can take advantage of certain opportunities and overcome
their limitations.

29
CONCLUSION
In sum, the Covid 19 pandemic has a good and bad impact on the
majority of health-care businesses. Some suffer from a labor shortage
as a result of inadequate infection protection for doctors and nurses,
or as a result of a loss of control over the number of patients seeking
treatment, resulting in an overburdening of patients to care for. Most
hospitals' ways of conducting business have altered as a result of the
crisis; most have attempted to convert from direct service diagnosis
in hospitals to a field hospital model; however, Vinmec Hospital, on
the other hand, provided citizens primarily with telehealth services,
which proved sufficient based on the results of high traffic direct and
searches. Although at the beginning of the epidemic, the hospital
witnessed a reduction in the demand of clients due to either the
limitation of the times to come to the hospital or the social
distancing rule, the company quickly regained control of the
situation and devised some new long-term strategies; this
demonstrates that if the health-care industry can do good in
handling the clients and distributing workforce, all companies would
rebound to the usual profit or maybe even exceed the goal profit set.

30
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