Executive Health Group
1. How would you evaluate EHG’s efforts to date?
Although the company implemented efforts to increase corporate revenues by making operations more efficient, for example by changing paper filing systems and revamping key elements of its product line, these efforts were insufficient. Corporate revenues had remained stagnant for the last 3 years. Marketing, Advertising and Promotions - The marketing efforts included radio and print media which generated 29% of appointments booked for examination but upper management didn’t think it was bringing enough business so they pulled the plug on radio advertising. Sales efforts were inadequate because EHG was unable to communicate directly to their sales target, which are high and mid-level executives. They only had access to healthcare benefits manager and this created problems, because benefits managers were more interested in limiting access due to budget restrictions. Pricing— The product line offered members a relatively broad exam and follow-up. However, because of the rapid increase in examination prices, they were losing business accounts to competitors. Consumer Behavior- The companies efforts in educating their customers were not successful. The customers are not making full use of the available services, because only 20 to 30 percent of the patients returned after their first visit and with each subsequent future exam, the percentage became less and less frequent as time went on.
2. Assess the market opportunity for EHG. How valuable is the typical EHG examinee? The market opportunity for EHG is limited if their business model remains the same. Expanding their services to other population segments, their market opportunity could increase. They need to also continue to differentiate their exams to EHG to continue to gain market share. The typical EHG service could be easily replicated and offered for a lower cost. The typical EHG examinee is a high-level...
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