Marketing Promotional Strategy

HEALTHCARE INDUSTRY (Presentation 1)

Offices Growth

Dental offices: 167,935 3%

Primary care doctor: 130,526 4%

Specialist doctor: 217,322 4%

Chiropractors: 61,476 1.6%

Psychologists: 135,959 3.8%

Physical Therapists: 93,967 4.8%

Podiatrists: 12,990 1.7%

Optometrists: 34,040 3.1%

All alternative healthcare providers: 179,930 3.8%

QuickBooks has 9.7% market share = 100300 clients

Goal: increase market share in this target segment by 2% (25% increase in sales) = 25000 clients

Total: 125400 clients after 1 year of introducing new product

NEW PRODUCT: “QUICKBOOKS PROHEALTH” (Presentation 2)

All-in-one product that will satisfy all needs and wants of any healthcare clinics.

Based on QuickBooks Online platform: Software as a service

Real time collaboration between clients and accountants

Basis function of QuickBooks

1. Vendors – Enter Bills/Pay Bills, Account Payable

2. Customers – Accounts Receivable

3. Employees – Payroll

4. Company - Chart of Accounts.

5. Banking - Write Checks, Check Register to view banking activity, and the Print Checks function to print bills

Additional functions in QuickBooks ProHealth

1. Patient Scheduling Function.

Automation of sending text or voice messages to patients for reminding appointment.

2. Practice Management

3. Electronics Health Records: medical history, treatment plan, etc.

4. PRICING (Presentation 3)

· Discuss assumptions regarding the price elasticity of our target market.

QuickBooks Online: $39.47/month

QB + NueMd (scheduling software) = $39.47+ $16.50/month = $55.97/month

(They have to buy 2 separate software if they don’t have QuickBooks ProHealth)

QuickBooks ProHealth: $49.47/month

Decrease $6.5/month

Price elasticity:

Demand is price sensitive to price change since PEoD = 1.72 > 1

As the price decreases by 12%, the demand increased by 20%.

· Choose a pricing strategy for the SBU to take with your new product. Tell us why you made this choice.

1. We would use Market Penetration Pricing because we want to build sales and gain market share by 2% to meet our goal. Our product is a combination of 2 software (accounting, scheduling). It serves all health clinics’ needs. They would pay a higher price if they acquire two separate software to deal with payroll and patient scheduling matter.

2. Since our product is a software, the costs would drop significantly as sales continue to grow (experience curve effect).

3. Because we offer our product at a low price, the profit margin is relatively low. It would discourage competitors from entering the market by introducing similar products.

QuickBooks Existing Channel Strategy

Direct Channel One Intermediary

Direct Channel

Manufacturer

Manufacturer

Direct Channel: Intuit QuickBooks is available for purchase by the customer online on Intuit QuickBooks site.

Direct Channel One Intermediary: Intuit sells QuickBooks software to retailers such as; Office Depot, retailer then sells it to customers.

To maximize our profits with Intuit QuickBooks ProHealth, we must focus on selling through a direct channel rather than selling through a retailer.

Retailer

Customer

Customer

Supply & Demand

Quantity Demanded 10.0 20.0 30.0 40.0 50.0 60.0 1.071E6 800000.0 530000.0 260000.0 125000.0 50000.0 Quantity Supply 10.0 20.0 30.0 40.0 50.0 60.0 50000.0 70000.0 80000.0 100000.0 125000.0 300000.0

Price Old55.97$

Price New49.47$

QDemand Old100,300

QDemand New125,400

% Change in Quantity Demanded20%

% Change in Price-12%

Price Elasticity of Demand-1.72