Business Plan for Medical Courier services

XYZ Marketing Plan
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XYZ Marketing Plan
Executive Summary
Over the last two years, the world has experienced a massive global pandemic that has disrupted lives and economies. Efforts to adjust to a new normal have resulted in changes in lifestyles and the delivery of goods and services. As a result, many business opportunities have emerged, which has seen startups become increasingly lucrative. One of the industries where innovations and new opportunities have thrived is healthcare. Specifically, medical courier services have been on the rise due to the growing number of patients receiving care at home (AlAbbasi et al., 2021). The risks of lack of access to urgent care for COVID-19 may have triggered a sharp rise in medical delivery services as illustrated in the case of China (Zheng et al., 2021). A recent market report showed that the demand for same-day delivery and express delivery is steadily rising, which requires an expansion of the healthcare transport and logistics infrastructure ( Research and Markets, 2021). These trends are the basis for the business opportunity outlined in this business plan – a medical courier service. This business opportunity is also supported by the assumption that the end of COVID-19 will not diminish the demand for medical delivery services.
Service
The medical courier is a service that will be provided to a variety of clients, both individual and corporate. As a service, medial courier focuses on the delivery of medical products to users. The medical industry often operates on a 24/7 basis, which means that products need to be delivered any time of the day and any day of the week (HHM, n.d.). The medical courier industry is rapidly growing, which presents opportunities for startups, especially small and medium enterprises (SMEs) that can offer the flexibility of services desired by most pharmaceuticals. Additionally, the growth is fueled by the fact that manufacturers often do not have their own couriers, which makes them reliant on third parties. The competition for clients means that most courier service providers are findings new niches and innovative ways to revolutionize the market. in most cases, the basic component of the service is that it requires a provider with a transport and logistics infrastructure. A vehicle and a driver, and the ability to pick up and drop off medical packages comprise the core structure of the service. Additionally, the medical express will differ from ordinary express since the medical express will have contracts with the health departments to handle the packages in safe and disinfected storage without mixing them with other goods.
Medical couriers tend to offer a diversified portfolio of services, most of which are in high demand. Examples include STAT delivery, shipment tracking, same-day delivery, and express delivery. However, it is also important to acknowledge that clinics and hospitals tend to have their own courier services since they carry more pharmaceutical products in-house. Even though projections indicate that these enterprises may monopolize the medical courier services, there are massive gaps and emerging markets that make medical courier services potentially lucrative for a start-up. Examples include home-based care and online drug purchases that require the services of a medical courier. Even clinics and hospitals without such an infrastructure may require third parties, especially if the third parties can offer considerable cost savings. Overall, the service that will be offered comprises the delivery of medical products to various clients, including patients at home, chemists, clinics, and hospitals. The service will be provided through a set of delivery vans, drivers, and a logistics office that coordinates pick up, delivery, tracking, and routes. A customer care unit handles calls and complaints from clients, while a marketing unit actively searches for new clients.
Attracting Customers
Customers will be attracted to this venture due to the gaps it fills and other benefits offered, including cost savings. As mentioned earlier, manufacturers of medical products do not have their own courier services and infrastructure, which means that they will be attracted to a courier service provider. Before exploring ways to attract customers, it is important to clarify who the customers are and the different needs each of the has. In essence, the medical courier market can be classified into several categories, including international services, pallet shipment and warehousing, standard courier services, and rush and on-demand services. The customers across these markets comprise labs, hospitals, blood banks, pharmaceuticals, and medical equipment and suppliers. Hospitals and clinics may have their own delivery systems linking them with the manufacturers. Those without such an infrastructure depend on third parties, which means that they will be attracted to a courier service provider that offers efficiency and cost-saving opportunities.
Diagnostic labs, blood banks, and pharmaceuticals are the main target customers for the medical courier services the rationale is that these firms often lack transport means, and products are often ordered and delivered to them. With manufacturers also lacking the infrastructure, the medical courier service provider fills this gap. Pharmaceuticals may experience constant demand for their products. However, setting up a logistics infrastructure may be costly for them, which forces them to outsource. Labs lack the same consistency in demand, which means that the products are often ordered on an on-demand basis. It makes less sense to develop a logistics infrastructure. All these customers will require a reliable courier, most likely on a long-term basis. Establishing a lasting relationship with the customers will be key to ensuring that customers are attracted to the venture.
The features and the nature of the service offered will also attract customers to the venture. In essence, many clients will prefer on-demand services to have idle assets in their portfolio. Dealing with multiple clients means that the venture’s assets will not be idle. Additionally, the economics of scale will also apply, which allows the venture to offer more affordable services. The venture will also be seeking to establish long-term relationships through contracts and partnerships with major clients. For example, contracts with hospitals and clinics ensure that the venture gets all the delivery tasks without having to compete with rivals. In the case of home and express deliveries, an online platform that allows users to order from partnering manufacturers will be built. All orders through the platform will create opportunities for the courier services to deliver all packages.
Marketing the Idea
The idea of medical courier service will be marketed to the relevant customers using different approaches. Even though it has been established that the demand for the service is growing, it cannot be assumed that the venture will automatically attract clients. According to Thabit and Raewf (2018), marketing is the main factor of success in organizations since marketing forms the link between the firm and its customers. The concept of the marketing mix will be deployed to guide the marketing initiatives of the venture. In this case, several typologies of the marketing mix can be used, with the basic model comprising the 4 Ps: product, place, price, and promotion. In healthcare products, the number of elements can increase to form the 10 Ps discussed by Lim (2020). Where the additional elements include people, process, packaging, physical evidence, policy perspective, and partnership. In this case, the primary focus will be the 4 Ps due to the position the venture occupies in the value chain.
Product
The idea of the product has already been described earlier, where it has been established that the venture will offer courier services. The term 'product' in the marketing mix is used to refer to the physical product or the service offered to customers (Išoraitė, 2016). In this case, courier services are offered by the venture to both private and corporate clients. The packages will be packaged by the selling firm, which means that the venture will only be responsible for pick-ups and drop-offs. In other words, the firm functions as a third party or intermediary between the buyers and sellers by offering the delivery or logistics infrastructure for the clients to use. The main aspect to market the service is the efficiency and convenience for the customers, and the potential for cost savings.
Price
Price is a critical aspect of the marketing mix since it determines the affordability of the product. The venture will seek to take advantage of economies of scale by serving a large customer base. Additionally, multiple delivery vehicles and a centralized control office make operations more efficient, which will translate into the prices paid by the customers. Affordability will be the main selling point regarding the pricing where the venture makes an effort to offer prices below the prevailing market prices.
Place
Place is another important element of the marketing mix, also referred to as distribution. The venture offers services within Los Angeles, with later expansion to other major cities and states in the United States. The venture links pharmaceutical manufacturers and retailers, as well as other clients that require medical products delivered. With the expansion, the entire United States will be served by the company, which will also see the establishment of international shipping and domestic flights. However, the initial setup will comprise an office in Los Angeles and delivery vans and drivers picking up packages and delivering them within the city and the rest of California.
Promotion
Promoting the service will be critical to ensuring that customers are attracted to the venture. Considering that most of the customers will be corporations, the idea of business-to-business (B2B) marketing discussed by Kearns (2022) will be applied. In this case, marketing campaigns will need to be targeted, creative, and full of insights since the details of the service will be critical in the customers' intention to purchase. As a result, flyers and banners, as well as catalogs will be designed and distributed to the various targeted businesses. the local news media and business-related publications will be essential since it is expected that business executives usually subscribe to such publications. In other words, advertising through the selected media will play a critical role in drawing attention to the business. the internet and social media will also be critical in advertising the service.
People and Qualifications
The venture will depend on several people with varied skills and qualifications. The core of the business is the delivery vehicles and the drivers, which makes them the primary personnel. Since the business seeks to operate on a 24/7 basis, the drivers will be working on shifts. The divers will require basic driving qualifications, including current licenses. Secondary skills may include the ability to read and follow plans and routes. Another group of personnel comprises marketers, who will require higher levels of qualifications. A college degree and up to 2 years of working experience will be required. The rationale is that the venture is a startup whose success will depend on the results of the marketing department. A marketing manager and up to five sales personnel will be hired for this department. Their qualifications include the ability to design and execute marketing campaigns and reach out to individual target customers.
A logistics department will be established to coordinate the primary operations of the venture. The office will be responsible for planning pick-ups, deliveries, and routes for the drivers. By coordinating with the marketing department, the logistics office will keep in touch with the customers through a direct line where operational arrangements can be made. This means that if changes in delivery schedules occur then the department is notified immediately to take the necessary actions. The logistics unit will also be responsible for tracking packages and managing a roster for the drivers. A human resource manager will be responsible for all recruitment practices. This will be the smallest function within the organization, followed by the finance department. The major function of the finance department will be budgeting, accounting, and financial planning. The qualifications for these departments will include the necessary college degrees and working experience. other specialists include helicopter pilots who will be used to quickly transport donated organs and medical materials and equipment. Mechanical engineers can also be involved, especially where the maintenance of transport equipment is necessary.
Managing and Directing
The medical courier service is a startup venture, which means that critical decisions have to be made regarding its management and directing. According to Houston (2022), business management for a startup is often complex because it depends on the entrepreneur's managerial capabilities and experiences. In this case, the entrepreneur has no prior experience in managing a business, which means that critical lessons have to be learned along the way. However, managing the venture will require cooperation between the departments mentioned above. The work of the manager will be to coordinate the functions of all units and departments so they are all aligned with the primary goal of making the venture successful. The management team will comprise the heads of logistics, marketing, human resource, and finance. The roles of the heads are unique to the departments they run, but convergence has to be established to align all their duties with the corporate-level strategies and goals. As the entrepreneur and leader within the venture, managing the business will often require relying on the technical expertise of the department heads. However, the mission and vision will be provided by the leader, which will guide all strategic initiatives.
Directing a business is a function that is not very different from managing. However, the focus is usually on the direction that the company takes and the broad objectives that need to be achieved (Leonard, 2019). In other words, the directing function goes beyond giving orders despite the need to have tasks completed. The directing function begins with supervising the workers and motivating teams through guided leadership that is communicated to all organizational members. The venture is built on various market insights that indicate the direction of the entire i...