Background: Carolina HeartCare (CHC) plans to spend $6 million to transform 6 recreational vehicles (rv’s) into health labs. The rv’s will tour the Carolinas offering a $99 heart-health workup to anybody who wants one. The workup consists of a detailed questionnaire and some basic diagnostics (blood pressure, ultrasound of the ankle (yep, ankle), cholesterol test, etc). Using the information from the questionnaire and the diagnostics, a statistical analysis will determine the customer’s risk of a heart “malfunction” in the next year, the next three years, and the next five years. Similar question-based analyses are free online; expensive diagnostic-based analyses are available from doctors; CHC merges the two. None of the statistical analyses can outperform a coin-flip.
How should they pursue their position—profit margin or market share. Why?
CHC can position itslef as most efficient and low cost alternative for health checkup analysis because of lack of existence of such players.
They should be visible across all centres. They must equally ask patients to get their previous body checkup reports to gauge better overview of person. Distribution must be majorly at lower middle income areas where median average households income is less so by keeping costs low and attracting bulk customers profit margins can stay intact through economies of scale.
They can also offer quick body checkup facilities and reports to better understand the problem from its roots and close the issue within 3 days.
Word of mouth advertising works best with no advertising cost so customer delivery has to be great and in long run it saves huge cost and boosts profit margins.
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