Group 2 Assignment Marketing Plan Cmi132 Final
Group 2 Assignment Marketing Plan Cmi132 Final
Group 2 Assignment Marketing Plan Cmi132 Final
LEVEL 1.2
GROUP 2 STUDENTS:
LECTURER: MR MASHERO
QUESTION:
You are the marketing team for a new Medical Aid Company Budget Medical Aid:
Design a marketing plan following the following stages. (100 Marks)
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TABLE OF CONTENTS
EXECUTIVE SUMMARY………………………………………………………………………………………………………3
CHAPTER ONE………………………………………………………………………………………..….........................4
Company,introduction………….………………………………………………...…………………………….4
Vision, mission, core values…….……………………………………………………………………………..4
CHAPTER TWO…………………………………………………………………………………………………………………..5
Situational analysis…………………………………………………………………………………………………5
Micro-environmental Factors…………………………………………………. …………………………….5
Macro-environmental Factors……………………………………………………. …………………………6
CHAPTER THREE……………………………………………………………………. …………………………………………10
Marketing Objectives…………………………………………………………………………………………….10
CHAPTER FOUR …………………………………………………………………………………………………………….….11
Marketing Strategies…………………………………………………………… ……………………………….11
CHAPTER FIVE…………………………………………………………………………………………………………………….13
Action and Budget………………………………………………………………………………….………………13
CHAPTER SIX……………………………………………………………………………………………………………………….16
Evaluation and Control……………………………………………………………………………………………16
CHAPTER SEVEN……………………………………………………………………..………………………………………….17
Gantt Chart…………………………………………………………………………………………………………….17
Conclusions…………………………………………………………………………………………………………….17
REFERENCE…………………………………………………………………………………………………………………………18
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EXECUTIVE SUMMARY
Budget Health Medical Aid Society is registered in terms of the Medical Services Act [Chapter
15:13]. The Society was established on the 23rd of June 2013 to contribute to the provision of
medical assistance to the people. It is an open medical aid society which accepts any willing
member of the Zimbabwean citizenry. The Society, with its Head Office situated at number 26
East Road, Belgravia, Harare, offers premium and standard schemes.
Budget Health Medical Aid Society aims to demystify the notion that medical insurance is a
preserve of the elite through providing affordable medical cover to all social classes while
maintaining the highest standards of safety, consistency and efficiency. It is designed for
individuals and corporates wanting access to private medical cover in Zimbabwe.
The package has 3 schemes, Core, Core Extra and Superior with annual global limits ranging
from US$5 000 to US$50 000 per member per annum. The schemes are tariff driven as we use
AHFoZ (Association of Healthcare Funders of Zimbabwe) rates.
Our marketing plan is to be the leading medical aid company providing the best healthcare
funding options to members of our different plans, schemes and programs within the borders of
Zimbabwe. We aim to bring foreign and latest technologies and unique advantages to our
Zimbabwean through our global strategic partnerships.
The estimated growth in the healthcare funding industry is expected to be 30% by 2026 with a
budget of $270 000 per annum. Our target market stretches from the insurance marginalized
communities, the informal and formal sectors of our growing economy. Our product range will
cater for all societal classes though 60% will be constituted by the low-income earners and 40%
being the middle to high income earners.
Budget Health Medical Aid will use a competitive pricing model and also make use of social
media, influencers, mass media promotional methods such as TVs and Radios to promote our
services.
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CHAPTER 1: INTRODUCTION
BACKGROUND
● A wholly Zimbabwean owned and fastest growing Medical Aid Society registered in
● The Society was established on the 23rd of June 2013 to contribute to the provision of
● The Society, with its Head Office situated at number 26 East Road, Belgravia, Harare,
● Provides affordable medical cover to all social classes while maintaining the highest
● Members have access to all private institutions of their choice within our provider
network.
● Gives members value for money and modern ways of healthcare funding.
Vision
To be recognized as the leading regional health care organization providing personalized world
class service with utilization of expert local knowledge.
Mission
To provide professional, efficient, and personalized health care services to our customers whilst
remaining sensitive to the needs of all our stakeholders.
Core Values
Confidentiality
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Compassion
Caring
Understanding
SWOT Analysis:
These are the strength and weaknesses for and against our marketing plan.
Strengths
Strong human resource base with years of experience and marketing expertise.
Access to modern technology and marketing software.
Strong balance sheet and access to sources of finance
Wide e-business network.
Strong closed supplier network.
Large captive market.
Weaknesses:
Small brand on the market.
High production costs and labor costs.
Opportunities:
Large marginalized market.
Easy of entry into the business.
Growth potential.
Potential partnerships with major health suppliers.
potential investments into downstream industries.
Threats
competition from already established firms.
unstable macroeconomic environment
unstable exchange rate
inconsistent polices
high inflation
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PESTEL Analysis
Political
Unstable political environment with an unstable exchange rate
Corruption scares away investors and foreign direct investment.
Economic
The unstable economic environment headlined by the bilateral dispute between Harare
and London will weigh down the plan’s objectives
The inconsistent economic policy announcements the RBZ are going to be major risk
Social
A portion of our target market still belong to the apostolic sects who still don’t believe in
taking medication thereby reducing our intended market share
The target market still believe in their tied and tested brands and have resistance to
change
Technology
The country is lagging behind in information communication technology and the broad
band is not widening fast enough
Quite a big chunk still have no access to internet connectivity which is adverse to our
intended electronic marketing initiatives
Ecological:
The global world is now environment conscious
Companies and legislation now encourage a green world.
Legal:
There is need to follow the cumbersome legal route of obtaining and maintaining licenses
which comes at a cost.
There is need to register with the health services board which is cumbersome.
There is need to register with the regional funder associations.
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There is need to align our operations with the laws of the country.
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Cumulative experience and access to distribution channels constitute a threat to new entrants.
This is because, over the years, clients have developed relationships with their providers such
that it is difficult for a new company to get create links with service providers and get business in
such an environment.
The main differential factor could be an established brand as these insurance companies interact
with individual providers in the private sector. Over the years, Budget Health has established
trust with its clientele, generating strong customer loyalty. However, owing to changes in
consumer tastes and preferences, such as customers seeking more benefits from medical aid
packages, new entrants are slowly gaining momentum, rendering Budget Health and companies
such as CIMAS as the biggest pool of private players, to target by agents, brokers and insurance
companies.
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There are thirty-six (36) registered medical aid funds, which creates room for clients to switch
services. However, Budget Health, in addition to medical aid, offers health insurance, thus
creating high switching costs for clients as they have to switch to ‘medical-aid only’ companies
when they choose a different firm. Furthermore, buyer propensity to substitute is low for clients
with high-risk medical conditions and these constitute the bulk of Budget Health customers. In
addition to that, the price of substitute products is high in the long-term, therefore clients
continue to choose Budget Health as their medical aid provider. The perceived level of product
differentiation is also high as Alliance offers medical insurance products besides medical aid and
as the company also offers tailour-made products to meet client requirements.
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Budget Health Medical Aid Society aims to demystify the notion that medical insurance is a
preserve of the elite through providing affordable medical cover to all social classes while
maintaining the highest standards of safety, consistency and efficiency.
We would like to grow our sales by 60% in 2026 and increase our market share by 7% on the
minor societies segment as per the Association of Healthcare Funders of Zimbabwe categories.
Market
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Price:
The pricing model is to accommodate the different social classes. It is value-based pricing for the
middle to upper income earners. We will also use penetration pricing for the low-end products.
According to RBZ financial Report 2022, 7% of our population borrow money for medical
reasons and it is mainly the low-income earners hence our drive to target them using price
penetration.
Place:
Our Head Office is in Belgravia. The suburb is ideal, as it is closer to where most service
providers in the capital city are located. We intent to employ intensive distribution strategies in
Harare and Bulawayo to achieve a wide market coverage. Our services will be available at
reception waiting rooms of various service providers, online platforms and through independent
sales agents.
Promotion:
Mass media communication is ideal for our target market. For example, the use of newspapers,
billboards, branding public transport etc. Targeted promotion through association’s conference
sponsorship and attendance is also ideal.
The graph below show preferences of members as far as communication is concerned. With this
data, we are able to effectively communicate with our members.
Figure 1: Communication preferences:
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Total
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People:
The service is emotive and there is need to have our staff trained in customer service, handling
difficult and emotional clients, palliative care as well as having an insurance and medical
appreciation. The graph below show issues faced by our members that we need to address:
Total
Billing
Call centre accessibility
Claims processing and
payments
Membership amendments
Treatment preauthorisa-
tions
Process:
The Budget Health Medical Aid scheme cover can be purchased online, through email, website,
WhatsApp channels or by visiting our office or one of the sales agents. Upon completion of the
enrolment application forms, the policy will be generated automatically. During the membership
period, digital and traditional means of policy servicing will be of use so as to cater for the
diverse clientele.
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Product:
We have various products targeting various industries and markets within the low to middle
income earners. For example, the Educare plan is designed for students therefore it has to be
affordable and yet providing basic medical cover for scholars. We will continue improving our
products in line with market needs, actuarial recommendations and profitability.
Pricing
The main focus is on 2 types of products therefore we have 2 different pricing models we are
using, value based pricing and penetration pricing. The value based pricing if for the middle
income earner products whereas, the penetration is being used on the low income earner
products.
Distribution
The company will adopt an intensive distribution strategy to achieve its goals of capturing a wide
market as well as ensuring convenience and accessibility to our members. We will employ sales
agents and enlist brokers in Harare and Bulawayo as a start. The company will also provide
marketing support to our agents. This support will include promotional materials, training
programs etc. to ensure that our medical aid receive adequate visibility and generate demand.
In the future, we will expand our customer service centres to other towns as per the demand so as
to support the sales agents and members. The figure 3 below shows client distribution in
Zimbabwe.
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Total
Banket Banket Beira, Mozambique Beitbridge Bindura
Bindura bulawayo Bulawayo Byo Centenary
Chinhoyi Chiredzi Chitungwiza Chitungwiza, Harare Concession
Glendale Goromonzi Gweru Harare Harare
Harare - zimbabwe Harare & Beatrice Harare and Marondera Harare Zimbabwe Harare, Zimbabwe
Harare/karoi Hwange Kadoma Kariba Kariba
Karoi Karoi-Zimbabwe Kwekwe MABVUKU Marondera
Masvingo Mukumbura (Mt Darwin) Murambinda Murewa Mutare
Mutare Mutorashanga Mvurwi Nkayi Norton
Ruwa Southleapark Harare Victoria Falls Victoria Falls. Zimbabwe
Zimbabwe
Promotion:
Start with mass advertising so as to raise awareness. This can be through Radio chats, TV, social
media promoted posts and opinion leaders. We will adopt paid adverts approaches and
promoting our posts on social medical. We will also make use of SEOs and other online
initiatives to boost our brand.
Budget Health brand speaks to a niche market with the brand itself defining what we stand for –
having a budget medical aid that takes care of your needs, this demystifying the notion that
medical aid is for the elite.
Resource Allocation
We will start with 3 resource areas in the marketing dept. The resources need support of agents,
brokers and sales people.
Duties Allocation:
Marketing Executive - responsible for overall supervision and executive decision making.
Marketing manager - responsible for the day-to-day brand marketing. This resource will
also work on design and feed into the distribution channel.
Sales Agents - the key deliverables are boosting sales with healthy business and meet
targets.
These are used by management to analyse and assess their marketing activities and
programs over a specific period of time.
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Annual plan control - done by senior managers to determine if planned marketing results
are meeting expectations through sales analysis, market share analysis, sales to expense
ratio and financial analysis.
Profitability plan control: done by marketing manager through determining where the
firm is earning profits and where they are losing money by determining profitability for
product, territory, and segment and trade channel.
Efficiency control: done by line and staff management and marketing manager through
determining spending efficiency by sales force, advertising, sales promotion and
distribution
Strategic control: is done by senior managers through determining if the business is
following the best options with respect to market, product and channels by doing market
audit and ratings.
Marketing Budget
The business is funding full marketing costs from capital injected. From Y2, Q1, 2024.
Our marketing budget will focus on:
High-return channel
Budget for customer retention
Budgets for new marketing channels moonshot.
Budget to align with the business goals (demystifying the notion that medical aid is for
the elite)
Proposed Budget:
Mode Cost – US$ Target
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Control measures are essential for evaluating the effectiveness of a marketing plan.
As we are a new medical aid company with a growth focus, we will use the following measures
as a control:
Quarterly Sales analysis – monitoring revenue, market share, sales growth over time.
Marketing research – frequent research to gather insights on market trends and buyer
behaviour.
Quarterly Customer surveys and feedback – these help in product development and
improvements.
Ongoing Service Level Agreements to measure KPIs. These include turn-around times
for email responses, call centre answering calls, placing authorisations.
Ongoing use of and adherence to the marketing budget.
Quarterly assessment of ROI – this also speaks to the marketing budget as we do not
want to be over budget.
Quarterly competitive analysis – keeping abreast with what is on the market and adjust
accordingly.
Bi-annual calculation of the Return on Marketing Investment (ROMI) – this is by
comparing revenue generated/sales attributed to marketing efforts against the cost of the
activities.
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Gantt Chart:
CONCLUSION:
In conclusion, the above marketing plan is very comprehensive, touching all crucial aspects
based on the Company’s SWOT, Competitive and PESTEL analysis. Key to this plan is the
target market and objectives; low-income earners and demystifying the presumption that Medical
Aid is for the elite, the high society, at the same time adhering to the deontological principles
since its main target are families.
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REFERENCES
https://www.rbz.co.zw/documents/BLSS/2022/
Zimbabwe_FinScope_Consumer_2022_Survey_Report accessed.03 October 2023,
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