HEALTHCARE MARKET ANALYSIS IN SALEM

Client

A well-established hospital in Salem, Tamil Nadu, planning to expand its business operations with key investments in infrastructure, services, and specialized treatment options.

Object

The primary objective was to evaluate the feasibility and potential return on investment (ROI) of the proposed expansion. The study focused on understanding consumer preferences, decision-making factors for choosing a hospital, and competitive positioning in the local healthcare market.

Research Approach

To provide comprehensive insights, the study was divided into three key modules:

1. Consumer Research
   • Target Respondents: The study targeted individuals residing in Salem who had recent experiences in selecting a hospital for surgical procedures, specifically those who underwent surgeries in 2023 and 2024.
   • Survey Approach: Direct responses were collected from patients who underwent surgeries. In cases where patients were unavailable, their family members, who played a significant role in the hospital selection process, were surveyed.
   • Data Collected: The survey explored key factors influencing the choice of hospital, including hospital reputation, quality of medical care, specialized services, proximity, cost, and word-of-mouth recommendations.
2. Competitor Analysis
   • Hospital Visits: We conducted visits to major hospitals in Salem that are seen as direct competitors.
   • Assessment Focus: These visits allowed us to evaluate competitors’ service offerings, infrastructure quality, patient care standards, pricing, and market positioning.
   • Insights: This analysis provided a clear picture of where the client hospital stands relative to competitors and highlighted potential areas for differentiation.
3. Financial Projection and ROI Estimation
   • Projection Model: Based on the data from consumer research and competitor analysis, a financial projection was created to estimate the expected ROI of the expansion.
   • Key Metrics: Factors such as anticipated patient inflow, pricing strategy, operational costs, and revenue streams from new services were considered in calculating ROI.
   • Outcome: The projection offered a realistic estimate of the financial benefits of the expansion, helping the client make data-backed investment decisions.

Conclusion

The research provided the hospital with valuable insights into the local healthcare market, consumer expectations, and competitive landscape. With a positive ROI projection and clear strategies for differentiation, the client was well-positioned to proceed with their expansion plans confidently.