Download American Eye Center

ATENEO SCHOOL OF MEDICINE AND PUBLIC HEALTH
American Eye CenterGreenbelt
Marketing Paper
Agoncillo, Anika
Asperas, Heinz
Bernardo, Pristine
Cosalan, Samantha
Cruz, Bianca
De Leon, Zephanie*
Rivera, Joanna
Tanbonlion, Hannah
June 3, 2009
Marketing
I.
Executive Summary
The American Eye Center (AEC) is a Department of Health (DOH) and Philippine
Health Insurance Corporation (PHIC) accredited full-service ambulatory surgical facility. It was
established in the year 1995 and specializes on simple to complex diagnostic, therapeutic and
surgical needs for the eye. Their mission is to improve the quality of life of individuals by
providing unparalleled eye care services. They envision being the country’s premier ophthalmic
center to provide world-class and comprehensive care. It boasts of its long experience in the field
within Southeast Asia and hires the best doctors and health workers. It also houses the latest
medical equipments to provide its patrons with the best care there is.
AEC is currently located at the fifth level of Shangri-La Plaza mall along Edsa and Shaw
Boulevard, Mandaluyong City. Majority of their patients come from the National Capital Region
particularly from Quezon City and Manila. To maintain their competitive advantage, AEC will
open up a new branch at the fourth level of Greenbelt 5, Makati. For this marketing plan, their
new branch, American Eye Center-Greenbelt, is proposed to tap a new market such as those
belonging within the Makati Central Business District. Awareness of the new branch will be
addressed through different forms of advertising, sales promotion, personal selling and public
relations. In doing so, AEC hopes to perform at least 200 eyes for LASIK surgery per month and
100 eyes for cataract operations per month. AEC also aims to invade the market and increase
their market share.
2
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
II.
Current Marketing Situational Analysis
a. Industry Analysis
Blindness is still considered to be an important public health issue in our country. Though
declining, the prevalence of blindness is still above the cut-off set by the World Health
Organization. A National Survey on Blindness conducted in 2002 presented that the prevalence
of visual impairment is 4.62%, bilateral blindness (0.58%), monocular blindness (1.07%),
bilateral low vision (1.64%) and monocular low vision (1.33%). However, because of the
increasing population, the actual number of Filipinos who are suffering from blindness is still
high.
However, 75% of these cases of blindness are preventable and treatable. Cataract, which can
be treated through surgeries, is the leading cause of blindness which comprises around 62% of
the cases. On the other hand, 100,000 of the Filipinos are suffering from glaucoma, which can be
treated when detected early. In fact, it is the third leading cause of bilateral blindness, next to
errors of refraction. It is also important to note that most of these patients are elderly.
Thus, the increasing awareness and the advocacy of Vision 2020 resulted to the boosting
demand for surgeries to cure eye diseases that cause blindness. Introduced just recently in the
Philippines, LASIK or Laser-assisted in situ Keratomilieusis, became popular, not only to the
elderly but also to the working class.
The boom of medical tourism in the Philippines also contributed to the boost in eye
treatments and surgeries. In fact, based on the 2007 DOH report, over P1 Billion of revenue was
brought in by about 28,000 foreigners who sought medical treatment in the country and is
expected to increase every year (Camus, 2009). According to American Eye Center, 30% of its
patients who have undergone LASIK eye surgery were foreigners. On the other hand, there are
only about 10% of the patients of Asian Eye Institute are foreigners.
Hospitals do this through partnerships with other hospitals. St. Luke’s Hospital, for
example, collaborated with international medical insurance systems of other countries to obtain
medical accreditation. On the other hand, Asian Hospital allied with Bumrungrad Hosptial of
Thailand by selling 40% of its shares to the latter, which is known to be successful in the
industry of medical tourism.
Buying habits
3
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
In a recent consumer survey, the cost of the procedure is a major obstacle for undergoing
surgeries. The amount of cataract surgeries ranges from P 30,000 – P120,000 per eye while the
amount of LASIK surgeries ranges from P 35,000 to P 80,000. The cost of these procedures is
affected by several factors, which include office overhead, supplies, preoperative testing,
equipment, professional fees of surgeon, and the laser, custom wavefront technology and
Intralase for LASIK.
In the same survey, it was also found out that fear remained to be the major obstacle for
undergoing laser vision surgeries. Among the respondents, 57% said that they feared an
unfavorable outcome, 54% feared post-surgical side effects, 53% feared the lack of adequate
information, while 49% expressed a general fear of medical procedures.
In a survey conducted by the group, the respondents were asked to rank the following reasons
for choosing an eye specialty clinic. These include respectable doctors, efficient service, friendly
staff, convenient location and reasonable prices. Based on the overall ranking, it was found out
that the respondents chose respectable and good doctors as their primary reason for choosing an
ophthalmology clinic. The reason for this is that allowing other people to perform certain
procedures for them, particularly eye surgeries, means that the patient entrust their most valued
thing, which is health, to the experts. This may also explain why efficient service follows next to
respectable and good doctors. Convenient location, friendly staff and reasonable prices are the
last three criteria for their preference.
Competitive analysis
In Metro Manila, there are two ophthalmology clinics that is leading the market, namely,
American Eye Center and Asian Eye Institute. As the pioneer in laser-assisted eye surgeries,
American Eye Center shares 80% of the market share in refractive surgeries. However, in terms
of cataract surgeries, Asian Eye Institute takes the lead. American Eye Center takes only 20% of
the market share. Other ophthalmology clinics such as Eye Republic Opthalmology Clinic and
Makati Eye Laser Center may not have a large share in the industry but they have also a
significant impact on the industry.
Because of the boost of medical tourism industry, many ophthalmology departments of
tertiary hospitals are widening the scope of the services they offer by exploring into other subspecialized operations. St. Luke’s International Eye Institute has opened the Vision Laser Center,
4
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
which is the first hospital-based Refractive Excimer Laser Surgery in the country. The said
center also offers LASIK, LASEK, PRK and Near Vision Conductive Keratolasty (CK). Since it
is hospital-based, most patients will prefer this over specialty clinics because of convenience.
Porter’s Model
Suppliers
Bargaining power of suppliers
In the industry of ophthalmology,
services are directly given to its
clients; there is no need for
suppliers.
New Entrants
Threat of potential new competitors
Since eye diseases are not only
increasing in number but are also
getting more sophisticated,
ophthalmology departments of
hospitals are also exploring into subspecialization in order to perform
more complicated treatments and
surgeries. Considering that it is
hospital-based, it will be preferred
by most patients because of
convenience. Moreover, the boost in
medical tourism encourages more
ophthalmology centers to improve
and widen the scope of their
services.
Industry Competition
Rivalry among competing firms
Though Asian Eye Institute is the
only main competitor of American
Eye Center, there are a number of
specialty eye centers that also offers
the same kind of services as the two
leading companies. Though they
only comprise a smaller percent of
the market share, this share is still
significant and may even get bigger.
Customers
Bargaining power of buyers
Since health is at stake in this, the
need for good and respectable
doctors that would handle them is
important to gain the trust of
patients. Moreover, the kind of
service an eye specialty clinic offers
will also determine a center’s lead in
the market. However, it is still
important to consider that cost of
equipment and fear are causes of
patients’ resistance to avail the
services.
Substitute Products
Threat of substitute products
Aside from the use of eyeglasses or
contact lenses, there is nothing that
can substitute LASIK or similar
refractive surgeries. Moreover,
treatments of eye diseases such as
cataract, glaucoma, macular
degeneration, etc. is not an option
especially that it may cause to
greater damage for the patients.
5
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
b. Current Product situation: American Eye Center-Shangri-La
1. Services offered and Prices
American Eye Center offers the latest diagnostic and therapeutic services for all of their
clients’ eye problems. Their prices vary according to the problem their patients present. AEC
also gives discount to senior citizens and to those with PhilHealth. They are accredited by
different Health Maintenance Organization (HMO)’s like MEDICard, VALUECARE and the
like. In addition, if the patient is a senior citizen and a PhilHealth card holder, AEC offers
further discounts. For the complete list of prices, HMOs accredited and HMO fees, please refer
to Appendix A for details. AEC offers services for consultation, diagnostic procedures for
detection of eye diseases and treatment and management. These services are:

Diagnostic Procedures
o Visual fields perimetry w/ readers fee

This test involves the use of a bowl-shaped machine called a
perimeter. Its goal is to be able to measure all areas of one’s eyesight,
including peripheral vision.
o Cataract work-up

Corneal topography

A fast and painless procedure used to detect any irregular shape
of the corneal surface. It may also serve as a diagnostic tool to
measure the progression of disease.

Specular microscopy

Specular microscopy is a procedure for measuring the number,
density and quality of the endothelial cell that are found at the
back of the cornea. A microscope is used to enlarge one square
6
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
millimeter of cells and a camera captures the image of these
enlarged cells.

Biometry

Biometry is a procedure that utilizes sound waves to gauge the
length of the eye and the thickness of its internal structures.
This test is done before performing cataract surgery to identify
the ideal intraocular lens power that the eye needs.
o UTZ (Ultrasound) w/ reader’s fee

A transducer is used to receive reflected sound waves which are
analyzed to yield information about the structures of the eye. The
rationale behind this test is similar to that of the fetal ultrasound’s.
o Disc photo

Allows the detection of changes in the optic disc. This procedure also
permits the quantitative measurement of the retinal nerve fiber
structure
o Fundus Photo

Captures the image of the inner surface of the eye. Structures that are
seen include the retina, the optic disc and the fundus.
o Optic coherence tomography(OCT3) per eye (present)

Optical Coherence Tomography (OCT) is a procedure for acquiring an
impression of images about 1-2 mm from the surface of translucent or
opaque objects at a resolution comparable to that of a low-power
microscope. This procedure is highly advantageous because it doesn’t
7
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
use any ionizing radiation. It also doesn’t require the subject or sample
to undergo any preparations prior to the examination. Most
importantly, a clear and instant view of the tissue morphology of the
sub-surface layers can be obtained.
The rationale behind this technique is similar to the one used in
ultrasound, only in this case, light rather than sound waves are being
used. An optical beam is aimed at the tissue and the portion of this
light that is reflected, termed coherent light, is gathered. The light
segments that fail to reflect on anything, scatter and appear translucent
or opaque. Through this procedure, eye parameters can be measured,
pathologies such as retinal separation and macular degradation can be
accurately measured. It may also be used for the assessment of skin
morphology.
o Prism lens

Prism lenses are contraptions that can help alleviate the strain that both
eyes may experience when they are working as one. It may also assist
people with double vision by aligning the two images into one. Prism
lenses can be incorporated in both glasses and contact lenses.
o Famsworth (ordinary)
o Famsworth –M100

The Farnsworth-Munsell 100-hue tests for color vision.
o Punctum plug: collagen
8
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing

Collagen punctual plugs are temporary dissolvable plugs that are
inserted in the puncta or tear duct of the eye, preventing the drainage
of fluid from the eye. These are commonly used to treat dry eye.
o Punctum plug: silicone

Silicone punctual plugs are permanent plugs that are inserted in the
puncta or tear duct of the eye, preventing the drainage of fluid from the
eye. These are commonly used to treat dry eye.
o Pentacam

In a Pentacam procedure, a rotating Scheimpflug camera captures
Scheimpflug pictures of the anterior eye. The product images include
details from the anterior corneal surface to the posterior crystalline
capsule. It is used for refractive and screening procedures.

Consultation
o General consultation- follow-up
o Specialty/sub-specialty consultation (initial and follow-up)
o Retina
o Glaucoma
o Oculoplastic and lacrimal system

This is surgery that involves the lacrimal system of the eye. Surgeries
consist of correctional techniques for blocked tear ducts, removal of
the lacrimal gland or a part of the lacrimal sac, revival of the flow of
tears from the lacrimal sac to the nose in cases of dysfunctional
9
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
nasolacrimal ducts. It may also involve making an incision in the
lacrimal sac to promote drainage of fluid
o Neuro-ophthalmology

A subspecialty of both neurology and ophthalmology that caters to eye
problems that originate from the nervous system
o Low vision and vision rehabilitation
o Pediatric ophthalmology


Eye care for children
Therapeutic and surgical procedure
o Laser-Assisted-in-Situ KEratomilieusis (LASIK) per eye

This procedure corrects nearsightedness and astigmatism. LASIK, a
microkeratome, is like a small blade that cuts the surface of the cornea
to create a flap. The actual laser procedure is performed by the
LADARVision System®. It only takes 5-7 minutes per eye and 4-12
hours of recovery.
o Extrascapular cataract extraction via phacoemulsification with (mono) IOL
implantation – per eye

This procedure is also known as small-incision cataract surgery or the
“no-needle, no-stitch” technique. A tiny probe is inserted in the eye
through a small incision made at the side of the cornea. The probe then
emits ultrasound waves that soften and dissolves the cloudy center that
has formed in the lens. A suction is then used to remove the dissolved
material. After this, a small, rigid lens is inserted into the eye. This
10
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
procedure is self-sealing and does not need sutures to recuperate. It
only takes about 10-20 minutes to perform.
o Extrascapular cataract extraction via phacoemulsification with RESTOR
multifocal lens implantation – per eye
o KERAPHEL per eye

Keratomilieusis, phacoemulsification and excimer laser done in series
for high myopia
o KERARING implant per eye

Keraring implants are intrasomal corneal ring segments that help
correct surface irregularities and reduce refractive errors that are
involved in keratoconus although it is specially crafted as a remedy for
corneal ecstatic disorders. The ring itself is composed of a plastic
material that is used in cataract surgery. Implants are advised when the
disease is on its advanced stage already and the shape of the cornea
cannot anymore corrected with the use of contact lenses.
o Incision & curettage (I&C) package per eye
o Pterygium Excision –package per eye(present)

Pterygium is the benign thickening of the external surface of the eye
and may overlap the cornea. The procedure involves removing the
abnormal tissue and replacing it with an autograft using tissue
adhesive.
o Pterygium excision w/ conjunctival grafting – package per eye
o Yag capsulotomy – package
11
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing

After cataract surgery, the capsule or the outer membrane of the lens
that is left behind may start to form lens fibers that eventually
translates into a membrane that may occlude the vision. Yttrium
Aluminum Garnet or YAG Laser Capsulotomy may help restore
proper vision by using a laser to remove the obscuring membrane. It is
a painless procedure that takes less than 5 minutes.
o Pan retinal photocoagulation (PRP) – package

A Pan-Retinal Photocoagulation (PRP) may be done at the appropriate
stage to inhibit the continuous growth of abnormal blood vessels. This
procedure, if done at the appropriate time, may prevent blindness.
o Laser iridotomy – package (present)

Laser Iridotomy is a technique used to treat angle closure glaucoma. It
is used in cases wherein the iris is blocking the trabecular meshwork,
the structure responsible for draining the eye fluid. In here, a small
hole is opened in the iris, changing its configuration and allowing it to
move away from the trabecular meshwork. By freeing the trabecular
meshwork, the drainage system of the eye is once again free to work
properly. The hole is usually put in the upper portion of the iris,
making it impossible to see under the upper eyelid.
o Focal laser – package

For patients with diabetic retinopathy
o Trabeculectomy – package (present)
12
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing

In Trabeculectomy, a part of the trabecular meshwork and its
surrounding structures are removed into order to relieve the intraocular
pressure. The aqueous humor now drains underneath the conjunctiva
where it is absorbed. In essence, a new drain is made in the eye to
compensate for the inefficiency of the existing one. This surgery is
typically done under local anaesthesia.
o Blepharoplasty – package (upper AND lower lids)

Blepharoplasty is a surgical procedure that restructures the upper or
lower eyelid through the removal or repositioning of extra tissue and
reinforcement of the muscles and tendons surrounding it. While upper
eyelid blepharoplasty is done to help improve vision by removing
excess skin that may hang over the eyelid, lower eyelid blepharoplasty
is usually performed for cosmetic reasons.
o Blepharoplasty – package (upper OR lower lid only)
o Muscle surgery (1 to 2 muscles)
2. Market segment
Based on the current prices of the services offered by AEC and the current location of the
clinic, it is evident that the company targets eye-diseased patients of higher socio-economic
class, particularly A and B. According to the Synovate, the market research arm of Aegis Group
Plc., Class A and B are those who have monthly family incomes more than P50,000 per month.
Although it is not conclusive, the data gathered from the socio-economic survey
conducted by the group from a representative sample of AEC’s clients is consistent with the
information obtained from the interview. The socio-economic status of each patient was
classified based on their equivalent index values which are based on the computation made by
the group. The index values for Class A, B, C, D, and E are the following: 0.86-1.00, 0.69-0.85,
13
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
0.43-0.68, 0.26-0.42, and <0.26, respectively. Based on this study, almost 55% of the sample
population belongs to A and B.while 37% is from Class C, while the rest are from class D and E.
Table 1Graphical representation of market segment according to Socio-economic status (SES)
However, the company does not limit their target to Class A and B patients. As shown in
the chart, 37% of the patients belong to Class C and 7% from Class D and E. They also
accommodate patients from the lower socio-economic class, particularly those who are
beneficiaries of health insurances particularly Philhealth, Maxicare, Valuecare, etc.
Table 2 Graphical representation of clients according to location: NCR, Luzon, Visayas, Mindanao, outside
the Philippines
14
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
Table 3 Graphical representation of clients according to location: NCR
Considering the current location of AEC, it can be noted that 41% and 57% of its clients
come from the National Capital Region and Luzon respectively. For NCR, majority come from
big cities particularly Quezon City and Manila. Pasig, Makati and Mandaluyong City ranks third,
fourth and fifth respectively in cities which contribute to the number of patients consulting in
AEC. These aforementioned cities are areas within the vicinity of the clinic and contribute to
almost 53% of its clientele within the past year up to the present.
However, the bustling growth of medical tourism in the country compelled AEC last
August and September 2008 to venture in expanding their target not just to other regions in the
Philippines, but also to other parts of the globe, particularly in Japan and Korea. Considering that
AEC is only in its beginning stage in the medical tourism industry, only 1% of its clients are
foreigners in which 87% come from North America, 6% from Asia, 4% from Europe, 2% from
Australia and 1% from Africa.
Due to the nature of services offered, the number of patients of each age group can be
correlated to the number of patients availing the services offered of AEC. Since cataract usually
starts at late adulthood and most of them are suffering from errors of refraction, most of the AEC
patients are from ages 40-59 which comprise 33% of the total number. Following the said age
group are the elderly who are ages 60 and above and those who are ages 23-39 who comprise the
15
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
bulk of the economically productive class. Both age groups have the same percentage which is
27%. This can be explained by the need of good vision in the working class which is further
shown in the number of refractive corrections and LASIK surgeries which are done in AEC. In
fact, the said procedures comprise 73% of the total surgeries done in AEC. On the other hand,
cataract and glaucoma is prevalent in the elderly, thus, most of them avail of
phacoemulsification, which is about 24% of the total surgeries.
Table 4 Graphical representation of clients according to location outside the Philippines
Due to the nature of the services offered, most of AEC patients belong to the
economically productive class which ages from 19-59, and retirees who ages 60 and above.
Since good eye refraction is a need in almost all occupations, most refractive corrections and
LASIK surgeries are availed by those who belong to the working class. On the other hand,
cataract is prevalent in the elderly, most of them avail of cataract surgeries, which compose the
bulk of the major operations done in AEC.
16
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
Table 5 Graphical representation of clients according to age group
Table 6 Graphical representation of clients according to reason for consult
17
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
Table 7 Graphical representation according to type of surgery procedure done on the patient
3. Market positioning vs. product positioning
As the pioneer of laser surgeries in the Philippines, AEC is considered to be one of the
leading ophthalmic ambulatory centers in the Philippines. It specializes in correcting refraction
errors through LASIK surgery and in doing no-stitch cataract surgeries with the use of state-ofthe art equipment. However, AEC is more known for its refractive surgeries than cataract
surgeries which can be explained by its high market share in the said field. Moreover, AEC is not
just known for its advanced technology but also on the quality of service it offers. It lives on its
mission and vision which is to “improve the quality of life of individuals by providing
unparalleled eye care services and becoming the premier ophthalmic center providing worldclass and comprehensive eye care.” AEC is known because it has the most experienced and welltrained ophthalmologist, optometrists and nurses of the country. As a matter of fact, it is
managed by Associated Eye Specialists, which is the longest-running group of ophthalmologists
in the country. Experience-wise, AEC has an advantage over all ophthalmologic centers in
Southeast Asia since it has already conducted over 35,000 refractive surgeries. Because their
doctors are sub-specialized, patients are assured that they will be properly and rightly diagnosed
with their disease and will be given the right treatment and surgery accordingly.
18
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
4. Current Promotional Tactics
AEC (Shangri-La branch) first promoted their clinics through referrals from doctors in
Medical City and from former patients. AEC gives importance to providing excellent service and
believes that with this, their clients will then advertise the Center through word of mouth. It was
only during August-September of last year that they started posting billboards and ads on
newspapers. AEC has a billboard outside of Shangri-La mall which features Efren ‘Bata’ Reyes,
a prominent billiards player, whose vision is very much important to his profession. They also
have ads posted on international newspapers like the Korean newspaper Ilyoushinum and the
Japanese magazine Primer as well as on local newspapers such as the Philippine Free Press. With
this, they aim to campaign for medical tourism in the country in addition to promoting their
services. For a sample of their current magazine ads, please refer to Appendix B.
AEC-Shangri-La participated in six exhibits and conducted seminars on LASIK surgery.
They also have partnerships with SM Prestige as well as different companies like Meralco,
Petron, etc. For a complete list of the companies, please see Appendix C.
Below is a graph representing the number of new patients in AEC six months prior to the
advertisements as well as six months after.
Table 8 Graphical representation of new patients over the past year
19
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
c. Competitive situation
1. Asian Eye Institute (AEI)
The main competitor of the American Eye Center is the Asian Eye Institute (AEI). The
main branch of this establishment is located at the Rockwell Center in Makati while their
satellite branches can be found at TriNoMa and Mall of Asia. Most of the major surgeries are
done in their main branch while other minor procedures can be performed at the satellite
branches.
The Asian Eye Institute is a bit younger than the American Eye Center, having only been
established in 2001, six years later than when the American Eye Center was first erected.
However, its services are also parallel to that of American Eye’s. Also, AEI’s Harvard-trained
doctors are not affiliated with any other hospitals and are exclusive to the Institute.
The Asian Eye Institute and the American Eye Center both offer the same services for
eye care and management of eye problems. Examples of these are LASIK, Cataract surgery,
diagnostic and therapeutic procedures for Uveitis, Retinal diseases and Glaucoma, oculoplastic
surgery, pediatric ophthalmology, low vision rehabilitation, refraction and provision of contact
lenses and glasses. However, as said earlier, Asian Eye takes a lead in the field of cataract
treatment and surgeries compared to American Eye Center.
The prices of these services in AEI are a bit higher than what AEC charges its patients. A
table comparing the prices of the services being offered by the two companies is shown below.
However, due to limited resources, only a few prices were obtained from the AEI.
20
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
Service
LASIK
Asian Eye Institute
Php82,000++ (a complete
American Eye Center
Php70,000 for both eyes
one month package that
covers consultation, LASIK
Php35,000 per eye
surgery and follow-up
check ups)
Glaucoma
Php 60,000 – 110,000
Trabeculectomy package
(depends on the grade of the – Php45,967
lens)
Cataract
Php 59,000 – 114,000 per
Php 65,000-100,00 per eye
eye (depends on the lens)
Php 118,000 – 228,000
Double the price if both
Consultation
Php 840.00 – first time
Php 535.00 – first time
Php 620.00 – follow up
Php 400.00 – follow up
Similar to American Eye Center, it is also active in the field of medical tourism. In fact, it
partnered with Bumrungrad Hospital of Thailand, which is known in Asia as the leading
company in the industry of medical tourism.
A service that AEI uniquely offers to its foreign patrons is a Medical Travel Package.
This package allows foreign patients to get their eyes checked while still being able to tour
around the Philippines. This package allows AEI to schedule the medical appointment of the
patient, land transportation and a vacation itinerary for the whole duration of their stay. It also
offers language interpretation services for their patients who feel more comfortable using their
native tongue. The languages that they cover are Japanese, Korean, Chinese, Indian, Indonesian
and German. The Medical Travel Package and the language interpretation services are not
offered by AEC. These services might be an additional attraction for foreign patients because it
allows them extra comfort and convenience.
21
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
The Asian Eye Institute also has an interactive website that aims to inform people about
their company and the services that they offer. It gives a history of AEI, a description of their
medical staff, a list of the services that they offer and an interactive program that describes their
branches.
Since the American Eye Center considers the Asian Eye Institute to be its main
competitor, it can be said that the target market of the Asian Eye Institute is the same as AEC’s
target market. As was mentioned earlier, the portion of the population that the American Eye
Center is more focused on is the Class A and B market. AEI may pose as a threat to the
Greenbelt 5 branch of the American Eye Center mainly because of its location. Both are located
in the Makati area and while Rockwell and Greenbelt might not be right next to each other, they
are still targeting a single market – the Makati crowd. Since the Greenbelt branch of AEC also
houses the same kind of facilities that the Rockwell branch of AEI has, then AEI might be less of
a threat than if the AEC-Greenbelt branch is just a satellite branch that contains fewer facilities.
As foreign patients are also part of the focus population of AEC, they put up a branch in
Makati, the business center of the Philippines to make them more accessible to foreigners who
are visiting the country for business. However, to increase their popularity with the foreign
crowd, the American Eye Center may need to improve on a couple of things, namely their
website and the creation of a medical tourism package.
The AEC website should be more informative and descriptive of their company and the
services that they offer. That way, website visitors will be more informed about what the
American Eye Center is all about. This greater information might serve as an extra assurance to
potential patients. Foreign patients might also be more enticed to go to AEC for treatment if their
trip to the Philippines might be made more convenient and enjoyable. Creating something highly
similar to the Medical Travel Package that AEI has might not be the best option. Instead, AEC
can coordinate with travel agencies and hotel near their branches to form a package that includes
eye treatment, air and land transportation and hotel stays.
22
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
III.
SWOT analysis
2.
3.
4.
The Makati market is very
penetrable
An abundance of cataract
cases and other eye diseases
Booming medical tourism
attracting more foreign
patients
Increased awareness and
concern about proper eye
care
Threats
1.
2.
Weakness
1.
2.
1.
Their name is already established
The “American” in their name
appeals to the mindset of
Filipinos that products and
services from the West are better
3. Their strategic location makes it
easier for patients from the south
to access them
4. Their sub-specialized doctors
leaves little room for errors
5. They are well-known as experts
in the field of LASIK surgery as
can be attested by their 80%
market share of LASIK
procedures
6. The affiliation of AEC to various
HMOs and hospitals adds to their
credibility
7. Loyal patients who continuously
recommend the center to their
friends and family
SO Strategies
Opportunities
1.
Strengths
Other eye specialty clinics
which have already made
their mark in the Makati
district
People looking for less
expensive eye care services
in an effort to save because of
the economic recession
S1*S2*S6*S7 *01
The popularity of the American Eye branch
may make it easier to invade the Makati
market since they already have a base to
work with. Their connections with HMOs
and hospitals together with their existing
client base may also help bolster the
status of AEC in Greenbelt
S4*S5*O1
Their renowned expertise and
subspecialization may help ease the
increasing number of cataract cases
ST Strategies
S1*S2*S3*S4*S5*S6*S7*O1*O2
AEC is capable of holding its own against
other eye specialty clinic because of the
following reasons
they are already one of the leading
brands of eye care specialty clinic
they have a pool of loyal clients
they already have an edge: their
sub-specialized doctors who leave
little room for error
AEC has conquered the majority of
market shares in LASIK screening
Their affiliation with various
companies might serve as proof of
their excellence
2.
3.
4.
Lower market share in
cataract surgery
Lack of publicity in the Makati
area
Needs a more informative
website
Absence of services and
packages for foreign patients
that other competitors have
WO Strategies
W3*W4*O3*
Use the website to advertise AEC to
foreigners and advertise promos and
packages that might attract them
W1*W3*O4
Educate patients and potential
patients about the importance of eye
care through the website
WT Strategies
W1*W2*W3*T1
Should market their company in the
Makati area and make offers that will
attract more patients
S6*T2
Their affiliation with various HMOs may
assure potential patients of getting quality
eye care at an affordable price
23
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
Marketing Goals and objectives1
IV.
a. Statement of Goals
i. To increase profitability through sustaining growth in market share
ii. To establish American Eye Cataract Center-Greenbelt as the number one
ophthalmic center in Metro Manila
iii. To expand target market scope
b. Short-Term (6 months)
i. To increase awareness out the new branch of AEC among target market
particularly those within the Makati CBD area by 30%
ii. To inform target market about the services offered by the new branch of
AEC by 15%
iii. To reduce barriers preventing eye-diseased patients from availing the
services offered by the center
c. Medium (6 months to 1 year)
i. To elevate the awareness of the new branch by 50%
ii. To increase market share in cataract by 30%
iii. To maintain the lead in terms of market share in refractive surgeries
iv. To perform at least 200 eyes for LASIK surgery per month
v. To perform 100 eyes for cataract operations per month
d. Long-Term
i. To become the number one eye care facility within Metro Manila,
particularly in Makati
ii. To expand operations to other Asian regions beyond the Philippines
V.
Marketing Mix Strategies and Programs
a. Market Targeting (for Greenbelt 5)
1. Size of new market
The city of Makati belongs to the National Capital Region. As of the year 2000, the
National Statistics Office (NSO) tallied its population to about 444,867 (4.73%). Ranking 7th
1
Goals and objectives provided are from interview done with Dr. Arroyo on May 25, 2009 as well as from the
makers of this marketing paper.
24
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
among 17 cities and municipalities in the NCR, 29% of this recorded population belong to the 014 age group, 67% belong to the economically productive age or 15-64 and 4% belong to those
65 years and above. According to sex, 52% of its population constitutes females.
Also in the year 2000, NSO records state that Makati’s average annual family income
increased by 15% [from 1997] amounting to Php534,058. and an annual average family
expenditure increase by 24.3% [from 1997] amounting to Php423,023. This implies that Makati
ranks highest in family income and expenditures among all cities belonging to the NCR.
The business establishments situated in the area gives one an idea of the city’s economic
activities. Majority of these business establishments are located in the Ayala-owned district.
Makati City is considered to be the financial center and the economic hub of the Philippines. The
Makati Central Business District (CBD), which is located along Ayala Avenue, houses most of
the main offices and headquarters of the biggest business companies in the Philippines which
include the Philippine Bank of Communications (PBCom), Philippine Stock exchange, Bank of
the Philippine Islands (BPI), IBM, Procter and Gamble, Citibank, Ayala Corporation,
Development Bank of the Philippines, Metrobank, Intel Philippines, Nestle and JG summit.
Numerous call centers can also be found in this area.
Makati CBD is surrounded by first class residences where most of the wealthiest families
and famous personalities are living. Included here are Forbes Park and Dasmariñas Village.
Other villages situated near Makati CBD are the gated communities of Urdaneta Village, Bel-Air
Village, Palm Village, Magallanes Village, and San Miguel Village which are also resided by
well-to-do families.
Makati CBD also has numerous malls from department stores to luxurious malls.
Greenbelt 5, which is located in Makati CBD, is considered to be one of the newest and most
luxurious shopping malls here in the country. It houses imported specialty stores, first-class
restaurants, coffee shops and the like. Most of their customers belong from the upper class C? to
Class A based on socio-economic status (SES). Greenbelt 5 is also surrounded by high-class
condominiums and premier hotels.
25
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
As the common point of four places in Metro Manila, namely, Mandaluyong City, Pasay
City, City of Manila and Municipality of Pateros, many private and public vehicles pass through
Makati daily. In fact, there are four stations of MRT in Makati, namely, Guadalupe, Buendia,
Magallanes, and Ayala station, which is the gateway to Ayala Center where Greenbelt 5 is
located.
2. Demographic Characteristics
The target market will be comprised of patients who belong to the higher socio-economic
class, particularly classes A and B. These refer to those who have average monthly family
incomes P 50,000 and above. Moreover, the group operationally defines Class A patients who
reside in first-class, gated subdivisions, who finished college and post-graduate degrees in
prestigious schools in the country and abroad, and who has a high prestige profession based on
the classification of the US Census Bureau. On the other hand, Class B patients refer to those
patients who live in gated subdivisions or high-class condominiums, who finished college and
post-graduate degrees in private schools, and whose profession ranks next to the highest prestige
profession based on the same classification stated earlier.
AEC-Greenbelt will be targeting patients from 40 and above. As said earlier, these patients
are those who will be most probably affected by cataract. Since AECC aims to increase their
market share and profitability in cataract treatment and surgeries, the choice of this target market
will be consistent to their endeavor. However, this does not limit them from catering patients
from all ages, especially those from 20-39, which are probable patients for refractive surgeries,
which can also be helpful in maintaining their goals to be the leader in such field.
Moreover, AEC-Greenbelt will be targeting probable patients within the vicinity of Makati,
particularly in the Makati Business Central District. These include owners, CEOs, managers and
supervisors of known business firms, employees of local and international companies, call center
agents, and the like. Residents of Makati and other nearby cities particularly Mandaluyong City,
Pasay, Taguig and Manila are also part of the target market.
b. Product Development/ Innovation Program
Product positioning:
As AEC ventures in increasing its market share in cataract, the Greenbelt 5 branch will be
known as the American Eye Cataract Center (AECC). With the kind of competition this kind of
26
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
business has, quality of service will be the best asset that will help AECC emerge as number one
in treatment and surgeries, particularly in cataract. With this, the term excellence will be equated
with AECC. It will set the standard for the quality of service an ophthalmic center can offer to its
clients. AECC will be known for the personalized, high-quality, world-class service it offers to
its patients.
Though it will be known as a cataract center, it will not limit AECC to cataract surgeries. As
the AEC-Shangri-la branch, it will still be recognized to be leader in refractive surgeries and
other kinds of eye disease treatment.
Moreover, AECC will be known for its latest technology which is comparable to the best
ophthalmology centers in the whole world. Since it offers excellent service in reasonable prices,
AECC will be renowned in the whole world as the best place to go to have their eye treatment,
correction and surgeries done.
Competitive analysis?? Sorry, di ko alam if kasama ba to dito
As the pioneer in laser-assisted eye surgeries, American Eye Center shares 80% of the
market share in refractive surgeries. However, in terms of cataract surgeries, Asian Eye Institute
takes the lead. American Eye Center takes only ___ of the market share.
Aside from these highly specialized ophthalmology clinics, the ophthalmology
departments of other hospitals are also widening their offered services by exploring into other
sub-specialized operations. St. Luke’s International Eye Institute has opened the Vision Laser
Center, which is the first hospital-based Refractive Excimer Laser Surgery in the country. The
said center also offers LASIK, LASEK, PRK and Near Vision Conductive Keratolasty (CK).
c. Promotion Tactics
This market plan will incorporate almost the same strategies done by the AEC-Shangri-La
branch however other suggestions will be given to help the new branch of American Eye Center
increase their target market’s awareness on the existence of the branch. These tactics will consist
of advertising, sales promotion, personal selling and public relations. The duration of these
promotional tactics will run two months prior to the opening of AEC-Greenbelt and others will
run in a span of one year until expiry of contract.
27
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
The general message of these tactics will be what AEC-Greenbelt is about, a Cataract Center.
The theme of each will depend on the type or form of media used. There will be different ways
to show a certain tactic to agree with the characteristics of their market segment (i.e. age group,
means of communication, etc).
a. Prior to opening of new branch: AEC-Shangri-La
Objectives:
1. To provide cost-effective means of promoting the new branch of AEC
2. To tap a wider market particularly those who are not aware of AEC

A tarpaulin at the entrance of the Shangri-la branch of the American Eye Center
Since the Shangri-la branch of the American Eye Center is their only branch,
everyone who knows about the American Eye Center goes to this outlet to inquire, have their
eyes checked and get surgeries and other tests and procedures done. Since not all of these
patients live within the Ortigas radius, it is not always easy for them to go to Shangri-la to get
their eyes checked. It would be beneficial for both the Center and the patients if a sign will be
put up in the entrance of the Shangri-la branch of the American Eye Center and in other
prominent areas in the Center informing the patients of the existence of their Greenbelt 5
branch.
Target Audience. Patients who live in the south or in places nearer to the south will be
notified about an AEC branch that is near their place so that getting eye health care will be
less of a hassle for them. This added convenience for them may enhance their patronage of
the Center. The sign at the entrance of the AEC Shangri-la branch will also serve to inform
other mall goers who happen to pass by the American Eye Center of their new branch in
Greenbelt. Even if they are not AEC patients, at least they know that they can get excellent
eye care in an area other than Shangri-la.
Tone and mood of advertising. Hereon after, unless otherwise specified, tone and
mood parts per tactic will have the same theme unless otherwise specified. Since the clients
of AEC Shangri-la have different characteristics, the ad may be simple yet informative,
where short information about cataracts for example will be placed. At the bottom of the
tarpaulin will be the logo of AEC and some promoting lines like “VISIT US AT
28
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
GREENBELT 5”. They can also make the tarpaulin look interesting by putting just one liners
and placing photos that will arouse curiosity. This will draw attention more on the tarpaulin.
Pricing. AEC will have to shell out some money for the creation of a tarpaulin. On
the average, a 2x5 feet sized tarpaulin will cost around Php250.00 each. Since they will be
posting this ad at the entrance of their clinic, they might not need to pay additional
advertising fees to Shangri-la mall.

Flashing an ad or a short commercial about the new branch on the television sets in
the waiting area.
Posters and tarpaulins aren’t the only ways by which one can advertise. In this
modern age, technology has allowed us to use the television as a way to promote products,
services and even events. The waiting area in the AEC houses two large plasma television
sets where shows from both local and cable channels are continuously shown. Commercials
and other advertisements are part of these shows as well. The AEC can use these media
vehicles to their own advantage by flashing an ad or a short commercial about their new
Greenbelt 5 branch every so often. They may also do so through making short PowerPoint
slideshows and/or Flash Presentations to make it more less expensive.
Target Audience. The patients as well as families of the current clients of AEC will be
the target audience. The logic behind this is similar to the one stated in the previous number.
Although limiting, it is rest assured that their clients will be aware of the latest branch of
AEC. It is also possible that these people will tell their friends and relatives who live near the
Makati area about this new branch. There is no need to submit these ads and commercials to
television networks. AEC can create an ad or commercial by themselves and connect a DVD
player to the televisions in the waiting area. They only need to play the DVD of their
advertisement whenever is it scheduled or, for a more frivolous approach, whenever they
want to.
Pricing. The expenses for this project will only be for the creation of the ad or
commercial. For PowerPoint slideshow presentation, AEC need not shell out much budget
since it can be created using an existing template. For the Flash presentation, a freelance
designer will charge around Php5,000.00-Php10,000.00 depending on the length of the
presentation and the graphics to be used. Also, if the Center doesn’t have a DVD player, then
they may opt to buy one.
29
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing

Promote the new branch on American Eye Center Website
AEC has a website that people can visit to learn more about the company. Since this
website also provides them with exposure to the market, they can also use it to advertise the
opening of their new branch in Greenbelt 5. Most of the people who visit the AEC website are
those who are in search for more information about the Center. The opening of a new branch at
another location that may be conveniently near them may serve as an additional encouragement
for them to try AEC-Greenbelt, especially if they live or work near the area.
Target Audience. A bigger audience may be reached for this approach because of the
advent of user-friendly technology and hassle-free internet connections. As early as age 13 or
probably even earlier, they can access the website and look for things that they need to know
about AEC.
Tone and mood. Since a variety of ages and personalities will access the website, AEC
may opt to make the website more interactive. Changing of colors may be optional but it may
make the website more attractive. AEC can also put a kids section containing more
understandable words appropriate to kids.
Pricing. The only cost of this will be for the web or graphic designer that AEC will have
to hire, should they choose to do so. A freelance webpage designer charges a minimum of
Php20,000.00.
b. AEC-Greenbelt
Objectives:
1. To encourage continuous patronization from new customers
2. To increase consumer demand
3. To increase awareness on diseases and complications like blindness, glaucoma,
cataract, etc.

Sales Promotion: Loyalty Reward Program
Since most of their patients do not just seek consultation in a one time basis, a loyalty reward
program may be of benefit to them. Discounts may be given on the Nth visit or upon
accumulation of equivalent points to total amount paid. For example, upon accumulation of a
30
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
certain amount (i.e. Php200,000.00), a customer will be given a Loyalty Card. This card may be
transferable as long as the bearer is a part of the immediate family [Note: conditions may vary].
On the next consultation and/or operation of the patient, they will be offered a certain discount
(i.e. 10-20%). This will encourage the patient to continuously seek consultation in AECGreenbelt.
Target audience. Old and new patients alike will be targeted for this approach. However,
patients belonging in the 0-17 age group may not fully fathom this concept thus marketing of this
approach should be done through the clients’ parents/guardians.
Pricing. AEC has two options for this, one, they can have a standard loyalty card printed and
give these to their clients or two, they can just input the names of their loyal clients on a database
and retrieve their names only when needed. Laminated identification cards cost around Php
100.00 to 200.00 each.

Public Relations: Conference and Seminars
Since blindness is a public health issue, seminars and conferences conducted in areas like
Barangays and schools can be done to increase the public’s knowledge on these diseases.
Doctors from American Eye Center can give short talks and thereafter plug AEC-Greenbelt.
Theme. The theme per seminar may vary depending on the audience. If for example the
seminar is held at a school, the topic may be on errors of refraction. If the seminar is held at
barangays where majority come from the 40 to 60 and up age group, they may talk about cataract
and glaucoma.
Pricing. Pharmaceuticals and organizations may sponsor the seminar and invite the doctors.
In exchange, AEC doctors may provide further knowledge and information on certain topics.
AEC does not need to shell out money anymore since their services will suffice. If payment will
be required, an agreement between the organization and AEC may be made and they can just
provide a vouchers for a number of people in that organization.

Put up posters and give out flyers on strategic locations such as elevators, escalators
and walkways.
Elevators, escalators and walkways are spots that all mall goers have to pass by. It is their
only way of transferring from floor to floor or from building to building. Because of the huge
31
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
crowd that these settings accommodate, it would also be wise to put up posters announcing
the opening of the new Greenbelt 5 branch of AEC here. These are prominent places that are
destined for heavy exposure and exposure is what marketing is all about.
Target audience. The goal of this method is to reach out to those who are not yet aware
of AEC itself. Posters may be posted within Greenbelt 5 and in other establishments around it
(i.e. companies, call centers). Flyers may be given along walkways going towards
Pricing. The expenses for this method of promotion answer for the creation and printing
of posters and for the fees that the mall may require for putting up ads in their elevators, on
the walls of their walkways and in areas near their escalators. A size 11”x17” poster costs
Php 27.00 and a bigger one printed through a Laser printer costs Php75.00. The charge for
the layout design is Php 250.00 at a minimum. Flyers may be printed and have it photocopied
for only Php40.00. However, photocopied flyers may not be as appealing compared to those
glossy ones more commonly seen in malls.

Publish ads about the new branch in local and international magazines.
A marketing strategy that the American Eye Center currently employs is to publish
advertisements in periodicals such as magazines and newspapers, foreign publications, in
particular. This scheme has proven to be effective since the number of patients that the AEC
caters to multiplied in the months after they started advertising.
Since this marketing tactic has already proven to be successful, it only makes sense to
continue doing it and to apply it in the promotion of the new Greenbelt 5 branch. This time,
however, instead of just focusing on foreign periodicals, the local press can also be used as a
vehicle to promote the new branch. Ads can be placed in newspapers, magazines and even on
the websites of these publications. This way, the public will be made aware of the
establishment of the new branch.
Target audience. Both local and international readers will be targeted for this approach.
Foreigners will be an asset since it promotes medical tourism in the country as well.
Pricing. The cost of this promotional tactic covers the sponsorship fee that the magazines
require of the company who wish to advertise in their publication. On the average, a back
cover full page spread on a magazine costs Php 55,000.00 to 80,000.00. AEC may opt to use
the layout of their old ad to save on designing expenses however if AEC wishes to hire a
professional to create a new ad, that may also come with additional expenses. If they want to
32
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
save some money, they can easily take upon the load of creating an ad themselves.
Endorsers, should they be needed, should also be compensated whether in cash or in kind.
However, a commercial that does not need an endorser may be made to cut back on the
additional costs that an endorser may bring.

Write newspaper articles about the new branch.
Another way by which the American Eye Center promotes itself is through the use of
newspaper articles. They are affiliated with a writer – Bright Liwanag who writes articles
about AEC and gets them printed in various newspapers. Through this kind of promotion,
newspaper readers may gain a deeper understanding of the services that the American Eye
Center offers its patients, a kind of comprehension that posters and ads in magazines may not
be able to fully communicate to them. While posters and ads serve to make the public aware
of the existence of AEC and the services that they offer, many of these people are still in the
dark with regards to what exactly these offers and services mean. The immediacy and
inertness of ads and posters does not provide space for a full and in depth understanding of
what the Center is offering to the populace. Newspaper articles have the luxury of more
space and more time with their audience as these people have to sacrifice a few minutes of
their time to read articles. They may contain an explanation of what LASIK is about and
whether or not that procedure is being performed well at AEC.
Target audience. This kind of marketing strategy, which is currently being used by
AEC has proven to be effective in increasing their patient base. It was gathered, from the
researchers’ interviews that they use this kind of marketing tactic whenever they have
something new to promote. It would be an ideal vehicle for the promotion of the new
Greenbelt 5 branch of AEC. The article for this may contain a description of the new branch
its facilities. It may also stress on the convenience that the establishment of this new branch
may bring to the residents of the south. Since Makati is also the business center of Metro
Manila, the establishment of an AEC branch in the area might make it easier for foreigners to
avail of eye care while doing business – another point that the article may stress.

Promote the new branch on TV shows (plugs)
In the interview with Ms. Ella, she mentioned that the AEC also uses local television
as a means to advertise the company. The doctors are usually guests at some of the many talk
shows in a certain TV channel where they are interviewed about eye care. Opportunities such
33
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
as this can be used to promote the opening of a new branch. The guest doctor can simply
mention that AEC is expanding to Greenbelt 5 to cater to a wider market and to make it more
convenient for their patrons who live near the area. They can also make a general
announcement, inviting viewers to get their eyes checked at the AEC branch nearest to them.
Target audience. The target audience for this will be limited to only those viewing the
particular show. Mostly, the people who watches shows like these come from the older age
group from 23 onwards (SOURCE?).
Pricing. This scheme will not cost anything since the doctors aren’t charged by the
channel to appear on their program.

Promote the new branch on TV (ads)
Another way to promote the new branch and the current branch as well of AEC is to show
ads on television. This may seem costly but the reach of this will be wider since TV commercials
are the most effective means to reach out to the mass market (sa Wikipedia ko nakuha?
SOURCE). The idea is to insert the TV ads in between game shows like billiards tournaments or
boxing games. Another option is that AEC can simply air the advertisements at certain time slots
like one in the morning and one during primetime so that a bigger audience may be tapped.
Target audience. The target audience will be the people watching at a certain time slot. For
the morning, mostly the children and housewives watch and for primetime, a much bigger
market is being reached.
Pricing. TV commercial shoots costs Php200,000.00-400,000.00 and air time costs
Php150,000.00-300,000.00 for a 15-second air time.

Give promotional discounts for the employees of partner companies
The American Eye Center is currently affiliated with a number of companies. Some of
the offices of these companies are located near the Makati area, conveniently near the new
branch of AEC at Greenbelt 5. The Center’s association with these companies has probably
made the employees of their associate companies aware of their existence. One way to encourage
the patronage of this new branch is to give promotional discounts to employees of companies
that the Center is affiliated with. Promotional discounts can come in the form of getting 10% off
a certain procedure if you bring a friend with you or if you avail of a treatment at a certain period
of time.
34
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
It might seem like the company will be losing money by giving discounts and freebies
but this is only on a short-term basis. The goal of this promotional scheme is to make people
aware of the Greenbelt branch of AEC and to make them experience quality eye care at AEC.
Once they already have a feel of what AEC does and are assured of the quality of the service that
they provide, they will be more inclined to go back in the future and to refer the Center to their
friends and family.
Target audience. Companies in the Makati CBD.

Personal selling: Word of mouth
Long before the Center decided to publish ads on magazines and put up posters on
chambers, the main marketing strategy that they employed was simply word-of-mouth. Doctors
relied on their patients to spread the word about the American Eye Center. As can be seen by the
huge number of patients who walk through the double doors of the American Eye Center, this
strategy has been successful. Since its usefulness has already been proven, it might be ideal to
market the new Greenbelt 5 branch through this kind of marketing mechanism. The main movers
of this strategy are the doctors themselves. During their time with their patients, the doctors can
tell them about the new branch and the services that they offer and the possible convenience that
might be to the patient or to other people the patient may know. Friends and families of the
doctors and the other employees of the Center might also be asked to spread the word about the
new Greenbelt branch.
Target audience. The current patients and doctors of AEC-Shangri-La will be the ones to
promote the center. They will be able to reach out to friends and family.
Pricing. This move will not cost anything as all it involves is telling patients, co-workers,
friends and families about the existence of the new branch.
35
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
VI.
Timetable
Promotion Tactic
Before Opening
Opening
(June 2009 – August
(August 2009-May 2010)
2009)
Tarpaulin
Includes planning, lay-
TV ad - Shangri-La
outing and producing
Webpage
Loyalty card
Includes planning, lay-
Posters (11"x17")
outing and producing (i.e.
 Layout
posters, flyers)
Flyers (photocopied)
Magazine ads
Commercial will be aired
TV commercial shoot
on a specific date and time
 Air time costs
Note: The above specified schedule will not be exclusive on the said months alone.
Other tactics like the webpage and tarpaulin may spread throughout the whole year
until otherwise specified.
VII.
Budget
Promotion Tactic
Quantity
Price
Total
Tarpaulin
1
250.00
250.00
TV ad - Shangri-La
1
500.00
500.00
Webpage
1
20,000
20,000.00
Loyalty card
100
100
10,000.00
Posters (11"x17")
20
27
540.00
 1
 250
250.00
 Layout
Flyers (photocopied)
1000
40
40,000.00
Magazine ads
5
55,000
275,000.00
TV commercial shoot
1
200,000
200,000.00
 2
 150,000
300,000.00
TOTAL
851,040.00
 Air time costs
36
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
VIII. Projections (basis for evaluation of marketing strategy)
After implementation of the said strategies above, AECC or AEC-Greenbelt hopes to see
a 4% increase in their clients per month, 10% increase quarterly, and 60% annually. Below is
a graphical representation of the number of clients seeking consultation at AEC-Greenbelt in
a span of one year starting from the month of July 2009 and ends June 2010.
IX.
Conclusion/Summary
Opening of a new branch may imply a lot of different things like increase in profit, need for
expansion and so on. A new branch may also serve as a proof of the superb quality of eye care
services that patients can avail of in the American Eye Center because expansion translates to a
booming business and a booming business means that the product that they are selling is good. In
this case, the product that they are saying is good eye care.
AEC-Greenbelt need not go far in adjusting and making amends on their market strategy and
delivery of service because they, AEC-Shangri-La and AEC-Greenbelt, share a common market.
Promotional tactics may be reused however small revisions may be necessary to encourage more
people to consult in the new branch. Revisions include making their tactics more interesting and
more appealing to a broader target market and not just limiting themselves to a certain group of
people.
37
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
AEC’s best marketing strategy will be how they deliver their services to their clients, old and
new alike. Subspecialties and respectable doctors may be common among their competitors but
the assurance that AEC will provide efficient service will help them lead in the competition.
They should continue to improve their services like improving on waiting time and the like when
the need arises. This will be their best asset. This is their best asset.
Their most effective way in promoting their clinic is through word of mouth. By providing
the best eye care service there is, people will continue to patronize AEC and thus spreading the
news about how efficient and effective the Center is.
38
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
X.
References
Ericta, C.N. (2002). Medical care expenditures in 2000 reached P34.6 billion. Taken May 31,
2009 on the World Wide Web:
http://www.census.gov.ph/data/pressrelease/2002/ie00mdtx.html
Jimenez, C. (2008). Growing concern over eye disease. Taken May 31, 2009 from the World
Wide Web: http://www.gulfnews.com/world/Philippines/10194938.html
N.A. (2009). Medical tourism. Taken May 31, 2009 from the World Wide Web:
http://www.healthbase.com/resources/medical-studies--findings/research-studies-andfindings/mapping-the-market-for-medical-travel)
N.A. (2001). Zambia health information digest. Taken May 31, 2009 from the World Wide Web:
http://www.medguide.org.zm/zhid/zhid74.htm
39
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
XI.
Appendix
Appendix A.1: Prices
Diagnostic Procedure
Visual fields perimetry w/
readers fee
Cataract work-up
 Corneal topography
 Specular microscopy
 Biometry
UTZ (Ultrasound) w/
reader’s fee
Disc photo
Fundus Photo
Optic coherence
tomography(OCT3) per eye
Prism lens
Farnsworth (ordinary)
Farnsworth –M100
Punctum plug: collagen
Punctum plug: silicone
Pentacam
Consultation
General consultation- followup
Specialty/sub-specialty
consultation (initial and
follow-up)
Retina
Glaucoma
Oculoplastic and lacrimal
system
Neuro-ophthalmology
Low vision and vision
40
NEW RATE Facility Fee
Professional Fee
PACKAGE
2,600.00
2,250.00
410.00
750.00
300 both 300.00
eyes
500 both 500.00
eyes
600 both 600.00
eyes
2,660.00
Subspecialty
Followup
Neuroconsult
Followup
Low-
750.00
300.00
500.00
600.00
2,250.00
410.00
1,000.00
1,000.00
1,910.00
1,000.00
1,000.00
1,500.00
410.00
1,688.00
500.00
1,500.00
500.00
1,500.00
900.00
1,688.00
500.00
1,500.00
535.00
125.00
410.00
400.00
125.00
275.00
670.00
740.00
125.00
140.00
545.00
600.00
740.00
140.00
600.00
670.00
140.00
545.00
805.00
125.00
680.00
670.00
125.00
545.00
1,000.00
125.00
875.00
900.00
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
rehabilitation
Pediatric ophthalmology
Therapeutic and surgical
procedure
Laser-Assisted-in-Situ
Keratomilieusis (LASIK) per
eye
Extrascapular cataract
extraction via
phacoemulsification with
(mono) IOL implantation –
per eye
Extrascapular cataract
extraction via
phacoemulsification with
RESTOR multifocal lens
implantation – per eye
KERAPHEL per eye
KERARING implant per eye
Incision & curettage (I&C)
package per eye
Pterygium Excision –
package per eye
Pterygium excision w/
conjunctival grafting –
package per eye
Yag capsulotomy - package
Pan retinal photocoagulation
(PRP) – package
Laser iridotomy - package
Focal laser – package
Trabeculectomy – package
Blepharoplasty – package
(upper AND lower lids)
Blepharoplasty – package
(upper OR lower lid only)
Muscle surgery (1 to 2
muscles)
 Surgeon’s
professional fee
 Anesthesiologist’s
professional fee
 Additional 5,000 per
41
vision
consult
Followup
600.00
125.00
475.00
670.00
125.00
545.00
65,000.00
43,750.00
21,250.00
100,000.00
78,750.00
21,250.00
90,000.00
70,000.00
3,950.00
1,500.00
2,450.00
10,015.00
3,025.00
6,990.00
23,000.00
8,125.00
14,875.00
8,690.00
19,290.00
2,900.00
3,900.00
5,790.00
15,390.00
10,620.00
20,615.00
45,967.00
75,000.00
3,025.00
4,025.00
18,832.00
15,000.00
7,595.00
16,590.00
27,135.00
60,000.00
50,000.00
15,000.00
35,000.00
50,000.00
20,000.00
35,000.00

20,000.00

10,000.00
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing

muscle in excess of 2
muscles (Horizontal)
Additional 7,000 per
muscle in excess of 2
muscles (Vertical)
Appendix A.2: HMO Rates
MEDICard
Consultation fee – general consultation and ff-up
Sub-specialty consultation
Cataract work-up
Cornea topography
Specular microscopy
Biometry
Visual fields, OU (perimetry with reader’s fee)
UTZ (ultrasound) with reader’s fee
Disc photo, OU
Optical coherence tomography (OCT3)
Prism lens
Farnsworth (ordinary)
Farnsworth – M100
Punctum plug
Silicon plug
LASIK 32,500 per eye
ECCE via phacoemulsification with IOL implant*
Incision and curretage (I and C)
Pterygium excision
Pterygium excision w/ grafting
YAG capsulotomy
PRP with ot without focal (one or more sessions)
Laser iridotomy
Focal laser
Trabeculectomy
*For cataract surgery, cost of lens is 15,000/eye
MEDSERVE
Consultation (general/sub-specialty)
Optical coherence tomography (both eyes)
Automated visual fields (both eyes)
*other procedures charge as actual
Health Maintenance Inc.
Consultation
42
Php
275
300
500
200
500
2,000
2,000
600
2,500 both eyes
1,500 per eye
1,000 both eyes
400
800
425
1,275
30,000
2,000 per eye
3,000 per eye
9,000 per eye
5,000 per eye
16,000 per eye
5,000 per eye
14,000 per eye
17,000 per eye
200
3,275
2,525
200
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
VALUCARE
Consultation
Cataract workup
Corneal toography
Specular microscopy
Biometry
Glaucoma consult
UTZ w/readers fee per eye
Disc photo
Fundus photo
Optical coherence tomography (both eyes)
*other procedures charge as actual
AA International
Consultation
*other procedures vary upon patient’s coverage of plan
250
300
500
600
550
2,100
600
600
2,700
300
INTELLICARE
*procedures charge as actual
EA Phils.
*procedures charge as actual
Phaco surgery under HMO requires patient to file PHIC and cost of lens c/o patient.
*cost of lens is Php15,000/eye
Appendix B. Current Promotional Tactics of the AEC-Shangri-La
43
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
44
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong
Marketing
Appendix C. Accredited Health Insurance as of December 2008
1. Medicard Philippines
2. Maxicare Healthcare Corp
3. Intellicare
4. Medserv
5. Valucare
6. HMI
7. Netcare
8. ADB-Vanbreda
9. PLDT
10. Euro Assist Philippines (EA Phils.)
11. Meralco
12. Petron
13. DBP
14. PAGCOR
15. PCSO
16. U.S. Peace Corps
17. AII (Assistance Alliance International)
18. East West Business Solution
19. MEDASIA
20. Prestige International (S) PTE LTD
21. OTAI (Overseas Travel Accident Insurance)
22. GMC Services International Administration
23. My Perks DMCI
24. Embassy of India
25. Gulf Express Health and Leisure
45
Agoncillo, Asperas, Bernardo, Cosalan, Cruz, De Leon*, Rivera, Tanbonliong