Lifetron Hospital: In Search of Right Service Marketing Strategy

Abstract

Mr. Ganesh Sahay and Dr Nidhi Bhatnagar, managing partners at the Lifetron Hospital, were worried about the possibility of a shortfall in their expectations against the reality. They had envisioned several positive outcomes when they had started in Kanpur, 2013. Three years later, on account of reduced bed occupancy, Lifetron still remained a referral hospital instead of a first choice hospital. Moreover, the hospital continued to deal with the cases that were previously mishandled and which unfortunately led to an increased death rate statistics. Consequently, they had been unable to build confidence especially in rural areas due to lack of affordable and accessible healthcare facilities. Given this scenario, the case challenges students to assess an appropriate service marketing strategy for the hospital. Given that Ganesh and Nidhi were unsure of the rural dynamics of healthcare seekers and both of them were in a dilemma on what necessary actions they need to take. Whether they need to follow the tried and tested strategies currently practiced by others or they take risks in experimenting with a different marketing strategy that seemed ethical to Ganesh. According to CK Prahalad’s book “The Fortune at the Bottom of the Pyramid” the poor became a potential market targeted by many and Lifetron Hospital was one of them. The Bottom of the Pyramid (BOP) according to Prahalad was a ‘missing market’. The total BOP market varied according to different sources but was estimated to be around 3-4 million. However, for Lifetron one needs to know if there really is a ‘fortune’ at the bottom of the pyramid, especially when seen against the PHC and quack doctor scenario. Can this fortune be as easily tapped as proponents suggest?