The Sasktel's Case Analysis (Essay Sample)

LIFESTAT CASE ANALYSIS
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INTRODUCTION.The executive committee of SaskTel recently approved the proposal of launching LifeStat into the Canadian healthcare marketplace. SaskTel's senior marketing director, Pat Tulloch, was given the task to develop an effective marketing plan for the new health-monitoring device. She had to come up with an effective plan within a fortnight after the approval of the proposal. Tulloch then had to present her marketing plan to the executive committee for them to review. The overall challenge she faced was the decision on how SaskTel would manage its distribution as well as promotional decisions and conduct a financial analysis to evaluate the potential profit of the product. LifeStat, a health monitoring device that was developed by SaskTel, serves the purpose or closing the gap between caregivers and their patients. It lets SaskTel's clients examine their glucose levels, blood pressure, and heart rate levels without the need of having to visit a hospital. The information a client gather is then transmitted to SaskTel's data center. A physician or professional caregiver can monitor the personal health of a client at any time of the day.MARKETING GOALS1. The overall goal is to recoup the costs by selling the maximum number of units.2. The objective of LifeStat itself is to provide a product that helps hypertension and diabetes patients that is easy to use, and also to bridge the gap of communication between patients and their caregivers.3. The pricing objective is stated to provide a reasonably priced product while generating a profit and covering costs. The promotion objective at the moment is to create awareness of the product.4. The channel objective for LifeStat is to have a product readily available for purchase through retailers and on their websiteSYNOPSISCanada's Health SystemThe health care system in Canada is universal. It is funded through donations and taxes and primarily characterized by an aging population. However, the main problem is overcrowding in hospitals.SaskatchewanSaskatchewan is the sixth largest province in Canada having a population that 14.88% is of aboriginal descent. It has the highest number of people aged 65 years or older.SaskTelSaskTel is a full-service Communications company located in Saskatchewan. It has an executive team that makes the go-ahead decision for the products and services the company introduces in the Canadian market. One of the services, it is planning to offer is the LifeStat health monitoring system.LifeStatLifeStat helps the hypertension and diabetes patients to monitor their health status while they are at home or work. It had successful clinical trials. With customers willing to purchase the products in pharmacies, the suitable distributors were narrowed down to; Shoppers Drug Mart, Safeway Pharmacy, and London Drugs. However, LifeStat wasn't the only product people could use to monitor their health. The competition was stiff from products such as MedStar, Motiva Interactive, and Care Companion.Diabetes Customers8.3% of Canada's population had been diagnosed with diabetes. In Saskatchewan, the number of individual living with diabetes was approximated to be 78, 412. Diabetic products were being promoted by Diabetes Association of CanadaHypertension customers.14.9% of the Canadian population had been diagnosed with hypertension. 153,937 of the people in Saskatchewan was part of that percentage. This number was expected to grow by 2011.SWOT ANALYSISSTRENGTH:
Diverse Portfolio:SaskTel is a premium telecommunication company with a wide range of products. The company has ventured into heath care technology. In addition, it offers products and services ranging from directory assistance, security monitoring, hospital-room communications tin the health care sector and telecommunications.Technically Advance ProductSaskTel is offering a good service and product to hypertension and diabetes patients by launching LifeStat. These patients can regularly be monitored and be checked for medical diagnosis in the future.Relationship with Canadian Government:There's quite a healthy relationship between Saskatchewan province and SaskTel because the government is supporting company in different areas using leverage.Financial Stability:With several businesses in its profile, the company is financially stable.WEAKNESSESLack of Expertise:The company lacks expertise in the medical industry because it has been operating as a telecommunication company.Costly product:The price of the product is not pocket-friendly as compared to the level of income of the citizens in the country.Increase in clinical costs:The clinical costs within Canada were rising forcing SaskTel to increase the prices of LifeStat.OPPORTUNITYMarket Growth:The health care industry market had been predicted to grow at a rapid rate of 15% within the next five years.THREATS.MedStar:Health monitoring system offered by CyberNet Medical to the general public.Motiva Interactive:Health monitoring device that Philips Medical System offered the public.Care Companion:Health monitoring system that AMD Telemedine, Inc. provided the public.Demanding distributors:The distributors were demanding a significant portion of the profits.IDENTIFICATION OF PROBLEM.The major problems SaskTel faced was getting the product off the ground and making it successful within the first six months.
ALTERNATIVES TO SOLVE THE PROBLEMS AND THEIR EVALUATION.1. Launch strategy2. Distribution channel3. Promotional strategy
Alternative 1:National wide LaunchThe population in Canada is 31,612,897 people. 2,623,870 people, representing 8.3% have been diagnosed with diabetes, whereas, 4,710,322 people representing 14.9% have been diagnosed with hypertension. The promotional budget for a national wide launch was put at $ 1.2 million. Based on a survey, 8% of the diabetic people in the nation said they would purchase LifeStat. Launching a national wide promotion campaign may appear to be aggressive. Information about the product will reach potential customers thus increasing the product awareness. However, this idea didn't seem to be reasonable and achievable.Saskatchewan Launch:The population in Saskatchewan is 968,157 people.8.1% had been diagnosed with diabetes, whereas, 14.9% had been diagnosed with hypertension. The promotional budget for a Saskatchewan launch was put at $ 300,000. According to a survey, 2% of the hypertension patients said they would purchase LifeStat. Launching promotion campaign in Saskatchewan would reach potential customers thus increasing the product awareness. Moreover, this idea didn't seem to be reasonable and achievable.Alternative 2Shoppers Drug Mart:With over 1000 stores in Canada, Shoppers Drug Mart made a large portion of the pharmaceutical retail market. The main advantage it had over the other distributors is its national wide channel. It expected to maintain $ 709.05, 45% margin, on all hardware. Though using Shoppers Drug Mart would increase the product awareness, there was doubt about whether it was reasonable and achievable.London Drugs:According to a survey, London Dru