Medical Tourism of Malaysia in Shanghai

1. Executive Summary

Prime Beauty International Medical Centre (PBIMC) is exploring on feasibility to extend its wing in Shanghai, the leading city in economic performance, foreign trade growth and infrastructure development.

The objective of this strategic marketing plan is to boost PBIMC’s medical tourism package in Shanghai by introducing world-class aesthetic related medical facilities and professionals in PBIMC, follow by post-surgery vacation.

Marketing analysis reveals the combination of healthcare, aesthetics to be precise, and travel at Malaysia is a great attraction compare to our counterpart. On top of world-class medical professional and facilities mentioned, the acceptance of aesthetic surgery and purchase power among Shanghai residents further ascertains the feasibility to promote this package in Shanghai. However, the barriers should not be taking lightly as the stringent legal processes and existing competitions in medical tourism may be a threat to PBIMC. PBIMC’s International Marketing Team conducted a comprehensive SWOT analysis on this new marketing plan, the outcome stated it is feasible to explore in this high investment project.

PBIMC targets on middle-income group who are perceived reshape normal structures of the body, face or body, able to improve appearance and boost self-esteem. Marketing strategy focused on rolling out attractive combination of aesthetic care and travel destination. Flexibility to tailor individual package and reasonable price distinguish PBIMC at China. The everything-under-one-roof concept promises hassle free yet efficient services through the whole journey.

A concise action plan details the set up procedures till control measure gains strong support from PBIMC’s top management.

2. Environmental Analysis

In business for over ten years, Prime Beauty International Medical Centre (hereinafter referred to as PBIMC) has comprehensive and safe facilities and environment. PBIMC was founded as a 100-beded private medical centre in Kuala Lumpur specializing in beauty and aesthetics businesses. PBIMC has evolved into a premier medical centre specializing in beauty and aesthetics where the company emphasizes to be a world-class health care organization of choice.

Malaysia is a top choice for medical tourism because Malaysia features state-of-art medical facilities and a medical community with international training and recognition. Moreover, the vast majority of Malaysia’s specialist surgeons are British-trained and accredited. PBIMC is a world-class medical centre in the heart of Kuala Lumpur is available immediately and has no waiting lists. There is complete patient-doctor privacy. Prices quoted are with full pricing transparency and without any hidden extra charges.

A. The Marketing Environment

i. Political

The Political Environment of a country will strongly affect the marketing decisions of PBIMC. Economic free zones were established when the “Open Door Policy’ was introduced in 1979 to facilitate foreign investment like PBIMC to venture into China. Politically, “Guan Xi” (means relationship) is one of the most important elements for building up business in China. “Guan Xi” traditionally refers to friendship, bond, or trust originating from a previous dealing with each other.

ii. Social Cultural

For PBIMC to successfully launch the Medical Tourism of Malaysia in Shanghai, the company would need to understand Shanghainese social and cultural background.

Shanghainese is also very proud of their own dialect and they regard their dialect superior to other Chinese dialects and foreign languages. Hence, PBIMC will have to employ the Shanghainese in their Representative Office (RO) as this will help in communicating with the local potential customers and to build up good 'Guan Xi' with the locals.

iii. Legal And Regulatory

The legal and regulatory requirements are crucial points in barriers and modes of entry for PBIMC. According to Global Travel Industry News on 8th of January 2008, Deputy prime minister of Malaysia, Najib Tun Razak announced that the visa for health tourists to Malaysia has been extended from 30 days to six months effective immediately in order to meet our aim to promote health tourism in the country. Therefore, for Shanghainese to visit Malaysia as health tourist, they would need to apply for visa to enter Malaysia.

To start the business, PBIMC would need to set up a RO. An overseas enterprise that wishes to establish a RO in China may entrust a local agency to handle the matter and submit application on its behalf. Details of the applications are stated in Appendix 1.

After receiving the approval, the foreign RO will need to further register with various government bodies before its official opening. Information of further registration is detailed in Appendix 2.

iv. Economic

Shanghai with the Gross Domestic Product (GDP) of 556 billion Yuan ($71 billion) in the first 6 months of 2007 and 13% more than corresponding period 2006 shows the rapid growth of Shanghai market. Shanghai’s GDP was approximately 1.04 trillion Yuan in year 2006.

With the population of 18.45 million in year 2007 and Year-end registered resident population of 18.15 million in year 2006 , the total year-end registered population in Year 2006 was 13.68 million which consists of 6.8 million of female population, and that was about half of Shanghai total registered population. In Year 2006, there is a total of 128 thousands of people migrated to Shanghai while only 35 thousands of people migrated out from Shanghai. The average annual wages of staff and workers are 29,569 Yuan in year 2006 while there were only 26,823 Yuan in year 2005 . There is a sign of increase of wages for 2,746 Yuan. PBIMC is targeting female markets for those who are between 17 years old to 59 yeas old, and this group of population contributes to approximately 9 million out of Shanghai total population . PBIMC is also targeting at expatriates residing in Shanghai. And there are approximately of 120 thousands foreigners residing in Shanghai in year 2006.

B. Competitor Analysis

The various competitors as discussed