Lifetron Hospital: In Search of Right Service Marketing Strategy

• Ramendra Singh
• Prabhat Kumar Dwivedi
• M. Rao

Dr. Nidhi Bhatnagar, Managing Director at the Lifetron Hospital, was worried about the possibility of a shortfall in her expectation against the reality. She had envisioned several positive outcomes when she started in Kanpur, in 2013. Three years later, on account of reduced bed occupancy, Lifetron still remained a referral hospital instead of a first choice hospital. Moreover, the hospital continued to deal with the cases that were previously mishandled and which unfortunately led to an increased death rate statistics. Consequently, she had been unable to build confidence, especially in rural areas due to the lack of affordable and accessible healthcare facilities. Given this scenario, the case challenges students to assess an appropriate service marketing strategy for the hospital. Given that Nidhi was unsure of the rural dynamics of healthcare seekers and was in a dilemma on what necessary actions they need to take. Whether she needs to follow the tried and tested strategies currently practiced by others or she take risks in experimenting with a different marketing strategy. According to CK Prahalad’s book “The Fortune at the Bottom of the Pyramid” the poor became a potential market targeted by many and Lifetron Hospital was one of them. The Bottom of the Pyramid (BOP) according to Prahalad was a ‘missing market’. The total BOP market varied according to different sources but was estimated to be around 3-4 million. However, for Lifetron one needs to know if there really is a ‘fortune’ at the bottom of the pyramid, especially when seen against the PHC and quack doctor scenario. Can this fortune be as easily tapped as proponents suggest? 

*The case was revised on 22nd April 2024 with relevance to the company’s update reflected on the Case Study and Teaching Note.