Conducting a market segmentation
analysis to identify underserved
customer segments in a specific industry
Introduction
Market segmentation involves subdividing the overall heterogeneous market
for a product/service into distinctive subgroups with similar needs and
characteristics. It is a critical strategic tool that helps marketers develop
targeted offerings for each segment. This report will conduct a segmentation
analysis within the Australian healthcare industry to identify potentially
underserved customer groups. Specifically, it will focus on the field of
elective surgery and non-emergency medical procedures. Understanding
current gaps can guide providers seeking opportunities to better meet latent
demand.
The analysis will first outline the key steps undertaken: definition of the
target market and segmentation criteria, identification of relevant segments
within that scope, estimation of their sizes and potential attractiveness as
targets. Findings will then discuss specific segments believed underserved
with recommendations for how providers might better serve those needs.
The information aims to shine light on population subgroups and scenarios
representing growth areas if provider value propositions can be adapted
accordingly.
Segmentation Methodology
Target Market Definition
The target market of interest is the Australian population seeking non-
emergency or elective surgical procedures and hospital services. This
includes both insured and out-of-pocket patients requiring non-life-
threatening operations or treatments performed through either public or
private hospitals.
Segmentation Criteria
Several potential criteria were considered for parsing this landscape into
meaningful subgroups. Ultimately, the dimensions of geographic location,
stage of life, and health status were selected as most relevant for surfacing
distinctions in needs and behaviors within this context.
Identification of Segments
Combining the above criteria identified the following broad potential
segments warranting examination within the target scope:
- Rural/regional residents
- Young professionals (age 20-40)
- Families with children
- Older adults (age 60+)
- Chronically ill patients
- Carers of dependent relatives
Of course, additional micro-segments may exist. However, a starting
segmentation considering these characteristics seemed appropriate at the
strategic level for illuminating differences and potential underserved cohorts
worthy of further exploration.
Segment Evaluation
Each subgroup was evaluated in terms of its estimated size based on
Australian Bureau of Statistics (ABS) demographic data and perceived
attractiveness as an expanded target. Attractiveness took into account
factors like ability to pay, growth potential over time, and how well current
provider offerings match needs – to surface any gaps.
Analysis of Underserved Segments
Upon evaluating each proposed segment, two groups – regional residents
and carers – were believed most meaningfully underserved by existing
supply and in need of tailored provider responses. A closer examination of
these cohorts uncovered opportunities for improved service to better address
unmet demand. Recommendations are made accordingly.
Regional Residents Segment
Size and Growth
- Comprising 31% of Australia’s population, around 7.7 million individuals live
outside major cities.
- Projections expect non-metropolitan populations to rise 18% by 2031
versus just 13% growth for capitals.
Characteristics and Needs
- Geographically dispersed across vast distances from services.
- Travel imposes considerable costs and inconvenience for
appointments/treatments.
- Higher prevalence of chronic disease versus city-dwellers.
- Connectivity limitations restrict access to digital/telehealth alternatives.
Current Hospital Provision
- Public facilities concentrated in population centers, though sparser
coverage regionally.
- Private hospitals overwhelmingly located only in major cities for economies
of scale.
- Ambulatory and day procedures comprise rising share of demand but
underserved rurally.
Opportunity Assessment
- Regional residents represent substantial market size with substantial latent,
under-catered demand.
- Travel barriers inhibit access disproportionately for this cohort versus urban
populations.
- Growth rates exceeding cities highlight cohort becoming more strategically
important over time.
Recommendations for Providers
- Develop targeted regional/rural hospital branches or ambulatory care clinics
nearer dispersed populations.
- Partner with local General Practitioners to boost referral networks in non-
metropolitan communities.
- Leverage technology like telehealth/digital health monitoring more
intensively to “bring services closer” for the cohort.
- Consider scheduled outreach/fly-in surgical programs periodically visiting
remote towns.
- Tailor specialized programs/packages catered to needs, limitations, and
financial profiles of regional residents.
If implemented, such responses could serve to better connect this notably
underserved and expanding non-urban patient group with the care they need
closer to home. Demand potential seems high if access barriers are reduced
in considered ways. However, viability requires careful evaluation of activity
volumes and operating efficiencies specific to less densely populated
contexts.
Carers Segment
Segment Size and Importance
- Over 2.7 million Australians provide informal unpaid care to family/friends
with disabilities or chronic illnesses.
- Demand on carers is escalating due to population aging and discharges
from hospitals to home-based care environments.
Characteristics and Challenges
- Time-poor juggling care duties with work/family roles.
- Suffer high rates of physical/emotional strain and health issues due to
pressures/responsibilities.
- Difficult to find respite opportunities or attend to their own healthcare
needs.
Current System Impact
- Carers facilitate bulk of post-acute, palliative and aged care performed
outside formal services.
- Relieving carer burden seen as necessity to support broader wellbeing of
those receiving care at home.
- Yet providers deliver little direct support/programs catered specifically for
overburdened carers.
Latent Needs and Opportunity
- Tailored health/wellness packages or respite offerings could significantly
relieve caregiver strain.
- “Carer wellness clinics” integrated or co-located with dependent care
recipients’ treatment.
- Expanding digital/telehealth could monitor carer stress/needs remotely.
- Potential partnerships with charities/NGOs active in caregiver support
space.
- Dedicated carer education/counseling programs valuable add-on for
hospitals.
With carers shouldering expanding responsibilities vital for healthcare
system functioning, an argument exists this cohort represents an
underserved group that - if better served – could generate strong returns via
improved outcomes in the caring relationships they facilitate. However,
finding solutions feasible from a business model may require creative
thinking and cooperation across sectors.
Recommendations and Conclusion
In summary, an industry segmentation analysis of the Australian healthcare
landscape identified potentially underserved regional residents and carers of
dependent individuals as two cohorts worthy of providers redirecting
attention and resources towards.
Recommendations to better serve these populations’ latent needs and
expand access to medical services for further growth included:
- Develop new or expanded regional hospital facilities, specialist outreach
programs and ambulatory offerings
- Promote telehealth technologies more assertively to bridge geographic
barriers
- Design tailored programs, education and packages for time-poor carers
- Partner cross-sector with charities/NGOs active in carer support space
- Consider integrated “carer wellness clinics” located adjacent care recipient
treatment
- Commit to better data collection on latent regional/carer demand for future
planning
While viability must be carefully assessed, catering innovatively to the unmet
needs of such subgroups represents an opportunity for healthcare
organizations seeking under-tapped growth areas or improved community
service. Realizing benefits will require collaborative effort from multiple
players, but holds potential to seed considerable future returns through
boosting access for expanded patient bases.
Market segmentation involves subdividing the overall heterogeneous market
for a product/service into distinctive subgroups with similar needs and
characteristics. It is a critical strategic tool that helps marketers develop
targeted offerings for each segment. This report will conduct a segmentation
analysis within the Australian healthcare industry to identify potentially
underserved customer groups. Specifically, it will focus on the field of
elective surgery and non-emergency medical procedures. Understanding
current gaps can guide providers seeking opportunities to better meet latent
demand.
The analysis will first outline the key steps undertaken: definition of the
target market and segmentation criteria, identification of relevant segments
within that scope, estimation of their sizes and potential attractiveness as
targets. Findings will then discuss specific segments believed underserved
with recommendations for how providers might better serve those needs.
The information aims to shine light on population subgroups and scenarios
representing growth areas if provider value propositions can be adapted
accordingly.
Segmentation Methodology
Target Market Definition
The target market of interest is the Australian population seeking non-
emergency or elective surgical procedures and hospital services. This
includes both insured and out-of-pocket patients requiring non-life-
threatening operations or treatments performed through either public or
private hospitals.
Segmentation Criteria
Several potential criteria were considered for parsing this landscape into
meaningful subgroups. Ultimately, the dimensions of geographic location,
stage of life, and health status were selected as most relevant for surfacing
distinctions in needs and behaviors within this context.
Identification of Segments
Combining the above criteria identified the following broad potential
segments warranting examination within the target scope:
- Rural/regional residents
- Young professionals (age 20-40)
- Families with children
- Older adults (age 60+)
- Chronically ill patients
- Carers of dependent relatives
Of course, additional micro-segments may exist. However, a starting
segmentation considering these characteristics seemed appropriate at the
strategic level for illuminating differences and potential underserved cohorts
worthy of further exploration.
Segment Evaluation
Each subgroup was evaluated in terms of its estimated size based on
Australian Bureau of Statistics (ABS) demographic data and perceived
attractiveness as an expanded target. Attractiveness took into account
factors like ability to pay, growth potential over time, and how well current
provider offerings match needs – to surface any gaps.
Analysis of Underserved Segments
Upon evaluating each proposed segment, two groups – regional residents
and carers – were believed most meaningfully underserved by existing
supply and in need of tailored provider responses. A closer examination of
these cohorts uncovered opportunities for improved service to better address
unmet demand. Recommendations are made accordingly.
Regional Residents Segment
Size and Growth
- Comprising 31% of Australia’s population, around 7.7 million
individuals live outside major cities.
- Projections expect non-metropolitan populations to rise 18% by 2031
versus just 13% growth for capitals.
Characteristics and Needs
- Geographically dispersed across vast distances from services.
- Travel imposes considerable costs and inconvenience for
appointments/treatments.
- Higher prevalence of chronic disease versus city-dwellers.
- Connectivity limitations restrict access to digital/telehealth
alternatives.
Current Hospital Provision
- Public facilities concentrated in population centers, though sparser
coverage regionally.
- Private hospitals overwhelmingly located only in major cities for
economies of scale.
- Ambulatory and day procedures comprise rising share of demand but
underserved rurally.
Opportunity Assessment
- Regional residents represent substantial market size with substantial
latent, under-catered demand.
- Travel barriers inhibit access disproportionately for this cohort versus
urban populations.
- Growth rates exceeding cities highlight cohort becoming more
strategically important over time.
Recommendations for Providers
- Develop targeted regional/rural hospital branches or ambulatory care
clinics nearer dispersed populations.
- Partner with local General Practitioners to boost referral networks in
non-metropolitan communities.
- Leverage technology like telehealth/digital health monitoring more
intensively to “bring services closer” for the cohort.
- Consider scheduled outreach/fly-in surgical programs periodically
visiting remote towns.
- Tailor specialized programs/packages catered to needs, limitations, and
financial profiles of regional residents.
If implemented, such responses could serve to better connect this notably
underserved and expanding non-urban patient group with the care they need
closer to home. Demand potential seems high if access barriers are reduced
in considered ways. However, viability requires careful evaluation of activity
volumes and operating efficiencies specific to less densely populated
contexts.
Carers Segment
Segment Size and Importance
- Over 2.7 million Australians provide informal unpaid care to
family/friends with disabilities or chronic illnesses.
- Demand on carers is escalating due to population aging and discharges
from hospitals to home-based care environments.
Characteristics and Challenges
- Time-poor juggling care duties with work/family roles.
- Suffer high rates of physical/emotional strain and health issues due to
pressures/responsibilities.
- Difficult to find respite opportunities or attend to their own healthcare
needs.
Current System Impact
- Carers facilitate bulk of post-acute, palliative and aged care performed
outside formal services.
- Relieving carer burden seen as necessity to support broader wellbeing
of those receiving care at home.
- Yet providers deliver little direct support/programs catered specifically
for overburdened carers.
Latent Needs and Opportunity
- Tailored health/wellness packages or respite offerings could
significantly relieve caregiver strain.
- “Carer wellness clinics” integrated or co-located with dependent care
recipients’ treatment.
- Expanding digital/telehealth could monitor carer stress/needs remotely.
- Potential partnerships with charities/NGOs active in caregiver support
space.
- Dedicated carer education/counseling programs valuable add-on for
hospitals.
With carers shouldering expanding responsibilities vital for healthcare
system functioning, an argument exists this cohort represents an
underserved group that - if better served – could generate strong returns via
improved outcomes in the caring relationships they facilitate. However,
finding solutions feasible from a business model may require creative
thinking and cooperation across sectors.
Recommendations and Conclusion
In summary, an industry segmentation analysis of the Australian healthcare
landscape identified potentially underserved regional residents and carers of
dependent individuals as two cohorts worthy of providers redirecting
attention and resources towards.
Recommendations to better serve these populations’ latent needs and
expand access to medical services for further growth included:
- Develop new or expanded regional hospital facilities, specialist
outreach programs and ambulatory offerings
- Promote telehealth technologies more assertively to bridge geographic
barriers
- Design tailored programs, education and packages for time-poor carers
- Partner cross-sector with charities/NGOs active in carer support space
- Consider integrated “carer wellness clinics” located adjacent care
recipient treatment
- Commit to better data collection on latent regional/carer demand for
future planning
While viability must be carefully assessed, catering innovatively to the unmet
needs of such subgroups represents an opportunity for healthcare
organizations seeking under-tapped growth areas or improved community
service. Realizing benefits will require collaborative effort from multiple
players, but holds potential to seed considerable future returns through
boosting access for expanded patient bases.
Market segmentation involves subdividing the overall heterogeneous market
for a product/service into distinctive subgroups with similar needs and
characteristics. It is a critical strategic tool that helps marketers develop
targeted offerings for each segment. This report will conduct a segmentation
analysis within the Australian healthcare industry to identify potentially
underserved customer groups. Specifically, it will focus on the field of
elective surgery and non-emergency medical procedures. Understanding
current gaps can guide providers seeking opportunities to better meet latent
demand.
The analysis will first outline the key steps undertaken: definition of the
target market and segmentation criteria, identification of relevant segments
within that scope, estimation of their sizes and potential attractiveness as
targets. Findings will then discuss specific segments believed underserved
with recommendations for how providers might better serve those needs.
The information aims to shine light on population subgroups and scenarios
representing growth areas if provider value propositions can be adapted
accordingly.
Segmentation Methodology
Target Market Definition
The target market of interest is the Australian population seeking non-
emergency or elective surgical procedures and hospital services. This
includes both insured and out-of-pocket patients requiring non-life-
threatening operations or treatments performed through either public or
private hospitals.
Segmentation Criteria
Several potential criteria were considered for parsing this landscape into
meaningful subgroups. Ultimately, the dimensions of geographic location,
stage of life, and health status were selected as most relevant for surfacing
distinctions in needs and behaviors within this context.
Identification of Segments
Combining the above criteria identified the following broad potential
segments warranting examination within the target scope:
- Rural/regional residents
- Young professionals (age 20-40)
- Families with children
- Older adults (age 60+)
- Chronically ill patients
- Carers of dependent relatives
Of course, additional micro-segments may exist. However, a starting
segmentation considering these characteristics seemed appropriate at the
strategic level for illuminating differences and potential underserved cohorts
worthy of further exploration.
Segment Evaluation
Each subgroup was evaluated in terms of its estimated size based on
Australian Bureau of Statistics (ABS) demographic data and perceived
attractiveness as an expanded target. Attractiveness took into account
factors like ability to pay, growth potential over time, and how well current
provider offerings match needs – to surface any gaps.
Analysis of Underserved Segments
Upon evaluating each proposed segment, two groups – regional residents
and carers – were believed most meaningfully underserved by existing
supply and in need of tailored provider responses. A closer examination of
these cohorts uncovered opportunities for improved service to better address
unmet demand. Recommendations are made accordingly.
Regional Residents Segment
Size and Growth
- Comprising 31% of Australia’s population, around 7.7 million individuals live
outside major cities.
- Projections expect non-metropolitan populations to rise 18% by 2031
versus just 13% growth for capitals.
Characteristics and Needs
- Geographically dispersed across vast distances from services.
- Travel imposes considerable costs and inconvenience for
appointments/treatments.
- Higher prevalence of chronic disease versus city-dwellers.
- Connectivity limitations restrict access to digital/telehealth alternatives.
Current Hospital Provision
- Public facilities concentrated in population centers, though sparser
coverage regionally.
- Private hospitals overwhelmingly located only in major cities for economies
of scale.
- Ambulatory and day procedures comprise rising share of demand but
underserved rurally.
Opportunity Assessment
- Regional residents represent substantial market size with substantial latent,
under-catered demand.
- Travel barriers inhibit access disproportionately for this cohort versus urban
populations.
- Growth rates exceeding cities highlight cohort becoming more strategically
important over time.
Recommendations for Providers
- Develop targeted regional/rural hospital branches or ambulatory care clinics
nearer dispersed populations.
- Partner with local General Practitioners to boost referral networks in non-
metropolitan communities.
- Leverage technology like telehealth/digital health monitoring more
intensively to “bring services closer” for the cohort.
- Consider scheduled outreach/fly-in surgical programs periodically visiting
remote towns.
- Tailor specialized programs/packages catered to needs, limitations, and
financial profiles of regional residents.
If implemented, such responses could serve to better connect this notably
underserved and expanding non-urban patient group with the care they need
closer to home. Demand potential seems high if access barriers are reduced
in considered ways. However, viability requires careful evaluation of activity
volumes and operating efficiencies specific to less densely populated
contexts.
Carers Segment
Segment Size and Importance
- Over 2.7 million Australians provide informal unpaid care to family/friends
with disabilities or chronic illnesses.
- Demand on carers is escalating due to population aging and discharges
from hospitals to home-based care environments.
Characteristics and Challenges
- Time-poor juggling care duties with work/family roles.
- Suffer high rates of physical/emotional strain and health issues due to
pressures/responsibilities.
- Difficult to find respite opportunities or attend to their own healthcare
needs.
Current System Impact
- Carers facilitate bulk of post-acute, palliative and aged care performed
outside formal services.
- Relieving carer burden seen as necessity to support broader wellbeing of
those receiving care at home.
- Yet providers deliver little direct support/programs catered specifically for
overburdened carers.
Latent Needs and Opportunity
- Tailored health/wellness packages or respite offerings could significantly
relieve caregiver strain.
- “Carer wellness clinics” integrated or co-located with dependent care
recipients’ treatment.
- Expanding digital/telehealth could monitor carer stress/needs remotely.
- Potential partnerships with charities/NGOs active in caregiver support
space.
- Dedicated carer education/counseling programs valuable add-on for
hospitals.
With carers shouldering expanding responsibilities vital for healthcare
system functioning, an argument exists this cohort represents an
underserved group that - if better served – could generate strong returns via
improved outcomes in the caring relationships they facilitate. However,
finding solutions feasible from a business model may require creative
thinking and cooperation across sectors.
Recommendations and Conclusion
In summary, an industry segmentation analysis of the Australian healthcare
landscape identified potentially underserved regional residents and carers of
dependent individuals as two cohorts worthy of providers redirecting
attention and resources towards.
Recommendations to better serve these populations’ latent needs and
expand access to medical services for further growth included:
- Develop new or expanded regional hospital facilities, specialist outreach
programs and ambulatory offerings
- Promote telehealth technologies more assertively to bridge geographic
barriers
- Design tailored programs, education and packages for time-poor carers
- Partner cross-sector with charities/NGOs active in carer support space
- Consider integrated “carer wellness clinics” located adjacent care recipient
treatment
- Commit to better data collection on latent regional/carer demand for future
planning
While viability must be carefully assessed, catering innovatively to the unmet
needs of such subgroups represents an opportunity for healthcare
organizations seeking under-tapped growth areas or improved community
service. Realizing benefits will require collaborative effort from multiple
players, but holds potential to seed considerable future returns through
boosting access for expanded patient bases.
Market segmentation involves subdividing the overall heterogeneous market
for a product/service into distinctive subgroups with similar needs and
characteristics. It is a critical strategic tool that helps marketers develop
targeted offerings for each segment. This report will conduct a segmentation
analysis within the Australian healthcare industry to identify potentially
underserved customer groups. Specifically, it will focus on the field of
elective surgery and non-emergency medical procedures. Understanding
current gaps can guide providers seeking opportunities to better meet latent
demand.
The analysis will first outline the key steps undertaken: definition of the
target market and segmentation criteria, identification of relevant segments
within that scope, estimation of their sizes and potential attractiveness as
targets. Findings will then discuss specific segments believed underserved
with recommendations for how providers might better serve those needs.
The information aims to shine light on population subgroups and scenarios
representing growth areas if provider value propositions can be adapted
accordingly.
Segmentation Methodology
Target Market Definition
The target market of interest is the Australian population seeking non-
emergency or elective surgical procedures and hospital services. This
includes both insured and out-of-pocket patients requiring non-life-
threatening operations or treatments performed through either public or
private hospitals.
Segmentation Criteria
Several potential criteria were considered for parsing this landscape into
meaningful subgroups. Ultimately, the dimensions of geographic location,
stage of life, and health status were selected as most relevant for surfacing
distinctions in needs and behaviors within this context.
Identification of Segments
Combining the above criteria identified the following broad potential
segments warranting examination within the target scope:
- Rural/regional residents
- Young professionals (age 20-40)
- Families with children
- Older adults (age 60+)
- Chronically ill patients
- Carers of dependent relatives
Of course, additional micro-segments may exist. However, a starting
segmentation considering these characteristics seemed appropriate at the
strategic level for illuminating differences and potential underserved cohorts
worthy of further exploration.
Segment Evaluation
Each subgroup was evaluated in terms of its estimated size based on
Australian Bureau of Statistics (ABS) demographic data and perceived
attractiveness as an expanded target. Attractiveness took into account
factors like ability to pay, growth potential over time, and how well current
provider offerings match needs – to surface any gaps.
Analysis of Underserved Segments
Upon evaluating each proposed segment, two groups – regional residents
and carers – were believed most meaningfully underserved by existing
supply and in need of tailored provider responses. A closer examination of
these cohorts uncovered opportunities for improved service to better address
unmet demand. Recommendations are made accordingly.
Regional Residents Segment
Size and Growth
- Comprising 31% of Australia’s population, around 7.7 million individuals live
outside major cities.
- Projections expect non-metropolitan populations to rise 18% by 2031
versus just 13% growth for capitals.
Characteristics and Needs
- Geographically dispersed across vast distances from services.
- Travel imposes considerable costs and inconvenience for
appointments/treatments.
- Higher prevalence of chronic disease versus city-dwellers.
- Connectivity limitations restrict access to digital/telehealth alternatives.
Current Hospital Provision
- Public facilities concentrated in population centers, though sparser
coverage regionally.
- Private hospitals overwhelmingly located only in major cities for economies
of scale.
- Ambulatory and day procedures comprise rising share of demand but
underserved rurally.
Opportunity Assessment
- Regional residents represent substantial market size with substantial latent,
under-catered demand.
- Travel barriers inhibit access disproportionately for this cohort versus urban
populations.
- Growth rates exceeding cities highlight cohort becoming more strategically
important over time.
Recommendations for Providers
- Develop targeted regional/rural hospital branches or ambulatory care clinics
nearer dispersed populations.
- Partner with local General Practitioners to boost referral networks in non-
metropolitan communities.
- Leverage technology like telehealth/digital health monitoring more
intensively to “bring services closer” for the cohort.
- Consider scheduled outreach/fly-in surgical programs periodically visiting
remote towns.
- Tailor specialized programs/packages catered to needs, limitations, and
financial profiles of regional residents.
If implemented, such responses could serve to better connect this notably
underserved and expanding non-urban patient group with the care they need
closer to home. Demand potential seems high if access barriers are reduced
in considered ways. However, viability requires careful evaluation of activity
volumes and operating efficiencies specific to less densely populated
contexts.
Carers Segment
Segment Size and Importance
- Over 2.7 million Australians provide informal unpaid care to family/friends
with disabilities or chronic illnesses.
- Demand on carers is escalating due to population aging and discharges
from hospitals to home-based care environments.
Characteristics and Challenges
- Time-poor juggling care duties with work/family roles.
- Suffer high rates of physical/emotional strain and health issues due to
pressures/responsibilities.
- Difficult to find respite opportunities or attend to their own healthcare
needs.
Current System Impact
- Carers facilitate bulk of post-acute, palliative and aged care performed
outside formal services.
- Relieving carer burden seen as necessity to support broader wellbeing of
those receiving care at home.
- Yet providers deliver little direct support/programs catered specifically for
overburdened carers.
Latent Needs and Opportunity
- Tailored health/wellness packages or respite offerings could significantly
relieve caregiver strain.
- “Carer wellness clinics” integrated or co-located with dependent care
recipients’ treatment.
- Expanding digital/telehealth could monitor carer stress/needs remotely.
- Potential partnerships with charities/NGOs active in caregiver support
space.
- Dedicated carer education/counseling programs valuable add-on for
hospitals.
With carers shouldering expanding responsibilities vital for healthcare
system functioning, an argument exists this cohort represents an
underserved group that - if better served – could generate strong returns via
improved outcomes in the caring relationships they facilitate. However,
finding solutions feasible from a business model may require creative
thinking and cooperation across sectors.
Recommendations and Conclusion
In summary, an industry segmentation analysis of the Australian healthcare
landscape identified potentially underserved regional residents and carers of
dependent individuals as two cohorts worthy of providers redirecting
attention and resources towards.
Recommendations to better serve these populations’ latent needs and
expand access to medical services for further growth included:
- Develop new or expanded regional hospital facilities, specialist outreach
programs and ambulatory offerings
- Promote telehealth technologies more assertively to bridge geographic
barriers
- Design tailored programs, education and packages for time-poor carers
- Partner cross-sector with charities/NGOs active in carer support space
- Consider integrated “carer wellness clinics” located adjacent care recipient
treatment
- Commit to better data collection on latent regional/carer demand for future
planning
While viability must be carefully assessed, catering innovatively to the unmet
needs of such subgroups represents an opportunity for healthcare
organizations seeking under-tapped growth areas or improved community
service. Realizing benefits will require collaborative effort from multiple
players, but holds potential to seed considerable future returns through
boosting access for expanded patient bases.
Market segmentation involves subdividing the overall heterogeneous market
for a product/service into distinctive subgroups with similar needs and
characteristics. It is a critical strategic tool that helps marketers develop
targeted offerings for each segment. This report will conduct a segmentation
analysis within the Australian healthcare industry to identify potentially
underserved customer groups. Specifically, it will focus on the field of
elective surgery and non-emergency medical procedures. Understanding
current gaps can guide providers seeking opportunities to better meet latent
demand.
The analysis will first outline the key steps undertaken: definition of the
target market and segmentation criteria, identification of relevant segments
within that scope, estimation of their sizes and potential attractiveness as
targets. Findings will then discuss specific segments believed underserved
with recommendations for how providers might better serve those needs.
The information aims to shine light on population subgroups and scenarios
representing growth areas if provider value propositions can be adapted
accordingly.
Segmentation Methodology
Target Market Definition
The target market of interest is the Australian population seeking non-
emergency or elective surgical procedures and hospital services. This
includes both insured and out-of-pocket patients requiring non-life-
threatening operations or treatments performed through either public or
private hospitals.
Segmentation Criteria
Several potential criteria were considered for parsing this landscape into
meaningful subgroups. Ultimately, the dimensions of geographic location,
stage of life, and health status were selected as most relevant for surfacing
distinctions in needs and behaviors within this context.
Identification of Segments
Combining the above criteria identified the following broad potential
segments warranting examination within the target scope:
- Rural/regional residents
- Young professionals (age 20-40)
- Families with children
- Older adults (age 60+)
- Chronically ill patients
- Carers of dependent relatives
Of course, additional micro-segments may exist. However, a starting
segmentation considering these characteristics seemed appropriate at the
strategic level for illuminating differences and potential underserved cohorts
worthy of further exploration.
Segment Evaluation
Each subgroup was evaluated in terms of its estimated size based on
Australian Bureau of Statistics (ABS) demographic data and perceived
attractiveness as an expanded target. Attractiveness took into account
factors like ability to pay, growth potential over time, and how well current
provider offerings match needs – to surface any gaps.
Analysis of Underserved Segments
Upon evaluating each proposed segment, two groups – regional residents
and carers – were believed most meaningfully underserved by existing
supply and in need of tailored provider responses. A closer examination of
these cohorts uncovered opportunities for improved service to better address
unmet demand. Recommendations are made accordingly.
Regional Residents Segment
Size and Growth
- Comprising 31% of Australia’s population, around 7.7 million individuals live
outside major cities.
- Projections expect non-metropolitan populations to rise 18% by 2031
versus just 13% growth for capitals.
Characteristics and Needs
- Geographically dispersed across vast distances from services.
- Travel imposes considerable costs and inconvenience for
appointments/treatments.
- Higher prevalence of chronic disease versus city-dwellers.
- Connectivity limitations restrict access to digital/telehealth alternatives.
Current Hospital Provision
- Public facilities concentrated in population centers, though sparser
coverage regionally.
- Private hospitals overwhelmingly located only in major cities for economies
of scale.
- Ambulatory and day procedures comprise rising share of demand but
underserved rurally.
Opportunity Assessment
- Regional residents represent substantial market size with substantial latent,
under-catered demand.
- Travel barriers inhibit access disproportionately for this cohort versus urban
populations.
- Growth rates exceeding cities highlight cohort becoming more strategically
important over time.
Recommendations for Providers
- Develop targeted regional/rural hospital branches or ambulatory care clinics
nearer dispersed populations.
- Partner with local General Practitioners to boost referral networks in non-
metropolitan communities.
- Leverage technology like telehealth/digital health monitoring more
intensively to “bring services closer” for the cohort.
- Consider scheduled outreach/fly-in surgical programs periodically visiting
remote towns.
- Tailor specialized programs/packages catered to needs, limitations, and
financial profiles of regional residents.
If implemented, such responses could serve to better connect this notably
underserved and expanding non-urban patient group with the care they need
closer to home. Demand potential seems high if access barriers are reduced
in considered ways. However, viability requires careful evaluation of activity
volumes and operating efficiencies specific to less densely populated
contexts.
Carers Segment
Segment Size and Importance
- Over 2.7 million Australians provide informal unpaid care to family/friends
with disabilities or chronic illnesses.
- Demand on carers is escalating due to population aging and discharges
from hospitals to home-based care environments.
Characteristics and Challenges
- Time-poor juggling care duties with work/family roles.
- Suffer high rates of physical/emotional strain and health issues due to
pressures/responsibilities.
- Difficult to find respite opportunities or attend to their own healthcare
needs.
Current System Impact
- Carers facilitate bulk of post-acute, palliative and aged care performed
outside formal services.
- Relieving carer burden seen as necessity to support broader wellbeing of
those receiving care at home.
- Yet providers deliver little direct support/programs catered specifically for
overburdened carers.
Latent Needs and Opportunity
- Tailored health/wellness packages or respite offerings could significantly
relieve caregiver strain.
- “Carer wellness clinics” integrated or co-located with dependent care
recipients’ treatment.
- Expanding digital/telehealth could monitor carer stress/needs remotely.
- Potential partnerships with charities/NGOs active in caregiver support
space.
- Dedicated carer education/counseling programs valuable add-on for
hospitals.
With carers shouldering expanding responsibilities vital for healthcare
system functioning, an argument exists this cohort represents an
underserved group that - if better served – could generate strong returns via
improved outcomes in the caring relationships they facilitate. However,
finding solutions feasible from a business model may require creative
thinking and cooperation across sectors.
Recommendations and Conclusion
In summary, an industry segmentation analysis of the Australian healthcare
landscape identified potentially underserved regional residents and carers of
dependent individuals as two cohorts worthy of providers redirecting
attention and resources towards.
Recommendations to better serve these populations’ latent needs and
expand access to medical services for further growth included:
- Develop new or expanded regional hospital facilities, specialist outreach
programs and ambulatory offerings
- Promote telehealth technologies more assertively to bridge geographic
barriers
- Design tailored programs, education and packages for time-poor carers
- Partner cross-sector with charities/NGOs active in carer support space
- Consider integrated “carer wellness clinics” located adjacent care recipient
treatment
- Commit to better data collection on latent regional/carer demand for future
planning
While viability must be carefully assessed, catering innovatively to the unmet
needs of such subgroups represents an opportunity for healthcare
organizations seeking under-tapped growth areas or improved community
service. Realizing benefits will require collaborative effort from multiple
players, but holds potential to seed considerable future returns through
boosting access for expanded patient bases.
