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INDIA’S MOST TRUSTED HEALTHCARE BRANDS 2017
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INDIA’S MOST TRUSTED HEALTHCARE BRANDS 2017

RESEARCH METHODOLOGY

Phase 1:
ibrands360 conducted a perception survey on ‘India’s Most Trusted Healthcare Brands’. The survey was initiated by generating a list of 1000 healthcare brands, which were shortlisted to 200 after a rigorous elimination process and further categorized as Multi-specialty/ Super specialty hospitals, OTC brands, Diagnostic centers, pharmaceutical companies, alternative medicines, wellness foods and cosmetics and medical equipments. The survey was initiated by generating a list of brands under each category based on secondary research. Our research methodology is kept in mind the needs of the consumers and the value of the brand. True value of a brand is based on both internal and external factors that influence the strength of a brand. Our methodology includes a deep consumer insight about the brand and an in-company audit to establish that the brand does fulfill all conditions of a strong brand. Our consulting models are based on proprietary models that makes us understand brands and their needs better.health-image

Phase 2:
Each of the brands generated under the list were scrutinized by the research team at ibrands360. Apart from the individual brand website, secondary research also involved studying existing listings/rankings, magazines and other sources. The research took into account the main parameters of Brand Awareness & Recall, Brand Image, Brand Promise, Brand Reach and Brand Sustainability & Innovation. The brands were contacted by the research team and apart from the secondary study, primary study was also conducted wherein brand audit questionnaires were filled by the respective brands.

Brand Evok:
A model to identify the inner qualities of a brand that can be positioned as a differentiation strategy. A tool to identify the right brand strengths. Each of the brands was scrutinized on its USP. The USP of the healthcare brand was taken into account to differentiate and eliminate it from its competitors offering similar services. The list of the top 1000 brands were scrutinized based on the USP of the healthcare brand and a list of 200 health care brands was generated.

Terminatorz:
A tool to diagnose problems and find the right solution to terminate the downturn factors. Gap analysis of the brand- Promised deliverables vis-à-vis the final deliverables to its customers. Segregating the top healthcare brands which are delivering close to what is being promised.

Brand Box:
A model that creates the ideas of innovations based on attributes and benefits a brand gives. Brand attributes and perceived customer benefits.

Brand Klik:
A model determining the most cost effective and innovative methods of branding that ensure the right reach. Brand Reach to ensure maximum coverage and penetration of the brand.

Final phase and Elimination Process:


The brands under each category were eliminated based on the cumulative scoring of the 5 member research team based on the awareness & recall, image, promise, reach and sustainability & innovation parameters. The topmost brands were further divided into platinum, gold and emerging categories. The platinum brands were the topmost brands in terms of maximum number of years of operation, high recall and trust factor. A total of 25 brands were shortlisted out of 55 in the platinum category. The next level of brands was categorized into the gold segment where 25 brands were shortlisted out of 100. This was followed by the brands in the emerging segment where 10 were shortlisted from a total list of 45 which have gained popularity amongst its target audience in the past 15 years.

iBrands360 further rated each of the healthcare brands as follows:


AAA+       Industry Leader –   Leader in the industry
AAA          Superlative –   Next in line to be the future leader
AA             Very Strong –   Close competitor to the Superlatives
A               Strong –        Strong trust level
B              Good –   Good Trust level
B              Average –   Need to work on strategies to be a stong contender
C              Weak –   Require quick turnaround to continue their presence                                  in the sector
C           Declining-   Declining trust level

INTRODUCTION

New life”- This was a recent headline in a prominent daily. The growth of a nation is not just about tallying its industrial, agricultural and services balance sheets. It is equally about tallying its performance on the human development indices. The state of its healthcare is one of the critical measures of how a nation state is performing. For a country the size of India, that is even more important. As India’s population has grown, health care has become one of the country’s largest sectors, both in terms of revenue and employment – and its growth is slated to continue. Estimates project that the current US $40 billion Indian health care industry will grow to US $280 billion by 2020.

The Indian healthcare industry is posed for a huge growth with the hospital industry comprising 80 pc of the total market. India is now acknowledged as the premier destination for medical tourism, owing to cheaper costs and treatments in the country. The government has very liberal foreign investment policy. Since January 2000, FDI is permitted up to 100% under the automatic route for the hospitals sector in India. Approval from the Foreign Investment Promotion Board (FIPB) is required only for foreign investors with prior technical collaboration, but allowed up to 100%.

The government is also encouraging the growth of this market through policies such as a reduction in import duties on medical equipment, higher depreciation on life-saving medical equipment (40%, up from 25%), and a number of other tax incentives.

While the population growth rate for India has steadily gone down, it is still at over 1.3 percent and is not expected to go below one percent in the near future. Also, it is interesting to note that our population aged above 60 years is projected to grow to around 193 million, compared with over 96 million in 2010. This change in the population pyramid is expected to fuel the demand for healthcare in general, particularly lifestyle diseases. In the past decade, India has witnessed a rapid increase in levels of wealth and disposable incomes. Coupled with a better standard of living and health awareness, this has led to an increase in spending on healthcare and wellness.

Lifestyle-related diseases comprised 13 percent of total ailments in India, according to a 2008 data, and this number is expected to increase to 20 percent by 2018. This is expected to trigger an additional demand for specialised treatment, which in turn, will lead to increased margins for hospitals since these diseases lie at the high margin end of the spectrum.

While out-of-pocket spending remains the mainstay of healthcare expenditure, health insurance is gaining momentum in India. The increasing penetration of health insurance is expected to significantly increase the affordability of healthcare services, driving up the demand for preventive healthcare and curative services. Medical tourism is also driving the healthcare market in India.

The fact that the treatment for major surgeries in India costs approximately 20 percent of that in developed countries; coupled with the high quality of care in Indian tertiary and specialty hospitals makes medical tourism attractive for patients from developed as well as emerging economies.

The Indian Health Insurance industry is valued at US$3billion, growing at a CAGR of 20% that is expected to reach around US$13billion by 2020. The driving factors for the health insurance sector are raising healthcare expenditure, increasing disposable income, desire for better quality health services and medical care. Health insurance accounts for 20% of the total general insurance industry in India. Information Technology has also been one of the important drivers of growth in the health insurance industry. There is a significant scope for enhancing healthcare services considering that healthcare spending as a percentage of Gross Domestic Product (GDP) is rising. Rural India, which accounts for over 70 per cent of the population, is set to emerge as a potential demand source.

Although the Indian health care sector is projected to grow at 21 percent annually, that growth is taking place in a system that suffers from significant underdevelopment. India remains below most of the world in key health care indicators, including its distribution of services and health care professionals. The challenge for Indian policy-makers is to find ways to improve upon the existing situation in the health sector and to make equitable, affordable and quality health care accessible to the population, especially the poor and the vulnerable sections of the society. The Government should take effective steps to ensure increase in the affordability to the health insurance schemes, especially amongst the rural population. With higher insurance penetration in the country, the accessibility to quality healthcare services would greatly improve. Government should provide advantages to the private sector in terms of long term tax benefits for establishing hospitals in the rural areas.

There is a huge potential in the market, since increasing healthcare awareness which has made people to become more health conscious has pushed the growth of this market. Some of the major players in the market are Healthkart, Snapdeal, Amazon and Healthgenie which are trying to capture the market by maximizing their operation to different cities. The online healthcare product market in the recent years has outgrown during FY’2015. The boom in the e-commerce market has also led to this rapid growth in the online healthcare product segment as more people have sought to prefer the online mode to buy healthcare products. The online healthcare product market forms nearly 0.1% contribution in the overall healthcare market in India, so there is a huge gap between the offline and online mode of sales which provides a huge opportunity to the new entrants to capture a significant market share.

In the medium term, the market for online healthcare products is likely to grow, driven by tremendous growth in number of online healthcare product providers, surge in product categories as well as rise in internet penetration. This is anticipated to post market revenues at INR 17 billion by FY’2018. According to the research report, the online healthcare products market will grow at a considerable CAGR rate thus exceeding INR 33 billion by 2020 due to the increasing number of product categories, new entrants in the market and rise in tech savvy population.

While rising disposable incomes, boom in tech savvy population and an increase in the preferences for health apps and products will result in increased spending on online healthcare products in India. However, government regulations as well as local pharmacy stores are few of the major challenges which will affect the growth of this industry in the future.

Healthcare insurance is gaining importance in India due to the increasing survival rate, increasing income, globalization and better opportunities. The impact potential of improved health care is greater in remote towns and villages than in urban areas. Since NGOs and non-profits are focusing on preventive health care (such as creating awareness about sexual health, HIV, vaccinations and sanitation), remedial health care – including the manufacturing and distribution of health care products and services – is where the true opportunity lies. And naturally, to successfully scale and address the staggering demand in India, business models must address the dual challenges of affordability and accessibility. India is home to several organizations that meet these challenges through innovation. The overall Indian healthcare market today is worth US$ 100 billion and is expected to grow to US$ 280 billion by 2020, a Compound Annual Growth Rate (CAGR) of 22.9 per cent. Healthcare delivery, which includes hospitals, nursing homes and diagnostics centres, and pharmaceuticals, constitutes 65 per cent of the overall market. As India’s health care industry continues to evolve, it is clear that opportunities exist for entrepreneurs, investors and experts to have a positive impact on people living in low-income areas. Public/private partnerships will remain important, and innovations will be needed – funded by development agencies, incubators, private investment funds and foundations.

India is a land full of opportunities for players in the medical devices industry. The country has also become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of population. Besides, Indian medical service consumers have become more conscious towards their healthcare upkeep. To sum up, there are vast opportunities for investment in healthcare infrastructure in both urban and rural India.

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