CHIẾN LƯỢC PHÁT TRIỂN TRUNG TÂM DV KỸ THUẬT VÀ YTDP STRATEGY OF DEVELOPMENT OF SCIENCE CENTER OF TECHNICAL SERVICES AND PREVENTIVE MEDICINE PART I ORIENTATION FOR DEVELOPMENT OF CENTER I General Development Orientation Making the center a unit: providing services of top quality under laws and regulations - Quality assurance with criteria: SUSTAINABLITY- DEVELOPMENT - PROFESSIONALISM - HIGH EFFICIENCY - Principles: Solidarity, striving for the development of the Institute - Motto: All for service quality and customer satisfaction II Specific development orientation: Construction and development of the center to make it a large-scale vaccine center with high-quality and reputable service in Hanoi; towards the development of preventive care services, lump-sum and high quality family care health services Building a prestigious test center based on the exploitation of all modern equipment and staff as well as technicians with expertise in the field of subclinical diagnostic tests for infectious diseases of laboratories in the Institute; focusing on the development of specialized diagnostic tests for infectious diseases Making Centre a distribution unit of high-quality vaccine with many categories and at reasonable price; developing a distribution network for the medical centers -1- of provinces and districts and projects of vaccine vaccination services in the northern region and the country in the future PART II IMPACT ELEMENTS BUSINESS OPERATIONS AT CENTER I The process of formation and development Center was established on Jan 01st 2007, and has achieved the following results: Professional activities: Complying with the provisions of law - Activity of consultancy on testing and vaccination: directly at Center No 131 Lo Duc, via exchange 1088 - Vaccination of vaccines and antisera for disease prevention for community, implementation of vaccination service contracts for agencies and schools - Performance of basic tests and intensive tests: Currently, the number of laboratory tests for customers increased to more than 50 different types of tests Accounting Department - Financial accounting for Services Center and Cimade Center to complete tax documentation and procedures as required by Government - Financial management and revenue-generating activities of the Institute - Payment for the purchase vouchers of Center - Combination with inventory and Sales Department for comparison and inventory of goods and biological products, etc Department of sales and plan - Importing, exporting goods for processional operations and business - Managing contracts of vaccination, professional lease with the Institute laboratories, contract of sale and purchase of chemicals, vaccines, etc - Exploiting the small hall such as libraries, training faculty hall, etc - Specialized cold car for storage and transport of vaccines - Selling testing reagents -2- - Searching, introduction and exploitation of new goods and services for operations and business - Promoting marketing and sales: The achieved results - Results of service revenue over the years Type Vaccination at service center 2010 2011 Expected in 2012 12,619,747,419 24,000,000,000 32,500,000,000 987,367,239 1,300,000,000 1,600,000,000 1,447,148,773 3,168,190,962 3,960,238,703 Production of mosquito incense 292,135,000 260,000,000 260,000,000 Service examination and consultancy 493,499,748 920,000,000 1,380,000,000 Contractual vaccination, sale at store 403,178,521 4,500,000,000 1,200,000,000 Test, hall, biological products and environment 814,672,785 1,400,000,000 1,540,000,000 17,057,749,485 35,548,190,962 42,440,238,703 Test Insecticide store Total revenue Table of gross profit of each group of products and services over the years (2010-3rd quarter of 2012) Unit: Million dong No Products and services Vaccination + Vaccine Test Insecticide 2010 Value 3rd quarter of 2012 2011 Rate % Value Rate % Value Rate % 3,340.88 74.25 7,832.92 79.98 5,902.63 75.47 340.12 7.56 435.53 4.45 369.49 4.72 531.10 11.80 949.84 9.70 847.51 10.84 -3- The types associated with the Institute Total 287.24 6.38 575.06 4,499.35 100.00 5.87 9,793.35 701.87 8.97 7,821.50 100.00 100.00 II Analysis of business environment Macro-economic environment Year 2007 2008 2009 2010 2011 2012 GDP (%) 8.44 6.18 5.32 6.78 5.89 About 5.2% Year 2007 2008 2009 2010 2011 GDP/person (USD/year) 836 1.024 1.100 1.200 1.300 + The above data shows GDP per capita increased relatively steadily over the years 2007-2010, and decreased and unstable since 2011 On the other hand, if compared with other countries in the region, the level of available income of the people is still low + Economic growth and per capita income affect the health service of the Center -4- + There are many difficulties in Vietnam's and world economic situation in 2012; people's incomes fell, unemployment rate rose; many companies went bankrupt It is expected that the year 2013 will be a very difficult year for the Government, businesses and people Policy and law environment - Stable political situation - The health sector is making many transitions to meet the requirements of protection, care and improvement o the health of people in the Socialist-oriented market economy - However, this also leads to fiercer competition in the market, requiring the center to constantly improve its competitiveness and efficiency of operation to survive and grow Population Environment - It is forecasted that, in 2012, Vietnam's population will exceed 88 million people - With annual population growth rate of about 1.57% on average, Viet Nam has a young population, including 61.7% under 30 years old, so Vietnam is indeed a potential market for vaccination services - Objective advantages: people's living standards is being improved; better awareness of community of infectious diseases prevention and control Analysis of products and services at Center - Vaccination service: with a relatively high price of vaccines, so the target market is average to high income objects in Hanoi - Contract vaccination service: not limited by geographical distance like vaccination for children; provided to units and businesses at any location - Target market for distribution of vaccines: 28 Northern provinces; especially some provinces of Thai Binh, Ha Nam, Hai Phong, Phu Tho, Quang Ninh, Vinh Phuc, etc -5- - Testing: Exploiting in-depth testing of the Institute, contracts with clinics, centers and hospitals in Hanoi area Analysis of competitors 5.1 Market of vaccination - Analysis of competitors: + Vaccination Division located at No 70 Nguyen Chi Thanh: advantages include the new facility rebuilt in 2010; on a narrow street, at the center of new residential area, with good economic conditions, and high population However, the disadvantages include non-scientific procedures, too high population; some customers must wait on the sidewalk or leave the division immediately after injection without supervision for 30 minutes, etc + Vaccination division located at No 50C Hang Bai: well-known at Hoan Kiem, Hai Ba Trung, Hoang Mai for a long time However, currently, narrow area and non-standard working procedures like Division at No 70 Nguyen Chi Thanh +Vaccination division No Son Tay: no investment; development in the direction of extension services; a small clinic with 3-5 medical staff / shift + Vaccination divisions such as VABIOTECH, SafPo and other private divisions: the advantage of infrastructure, relatively spacious but non-standard experience and professional procedures Activity for profit motto is placed on top; consumption of vaccines brings about high profits thanks to lower price of injection service by 3rd countries than the center + In particular, vaccination service at provincial and ward health center and at home is currently provided by healthcare staffs in Hanoi very dynamically but are very difficult to be controlled in terms of quantity and quality This action is contrary to the provisions of the Health Ministry, contrary to the vaccination process, so it should be stopped sooner or later under general rules  In general, despite some brand advantages over other units, but the facilities and service are not perfect 5.2 Market of vaccine distribution -6- - The distribution market in current provinces: the market for distribution of service vaccines (here in after called the vaccines outside the National Expanded Program on Immunization), the Institute is a young unit So many companies were involved in this market 5-10 years ago; Typically, Hong Thuy, Duc Minh, Thien Y, Biovaccine, etc However, after a period of implementation, a number of companies were not keen on provincial markets (Hong Thuy) or failed to gain market share, so temporarily left the market Only AMV Group (Duc Minh), Biovaccine is currently relatively strong in the provincial distribution market - The market segment targed by the Institute: According to the above analysis, currently, only Duc Minh, Biovaccine Deming and Thien Y are developing the distribution programs in the province relativity extensively: Content Strengths Weakness Duc Minh Biovaccine, other units Vaccine: Rather great quantity and various categories Vaccine: Rather reasonable price for provincial market Human resources: Medical Representatives coming to provinces regularly - Close relationship with health centers in provinces→ districts → communes → people Human resources: Medical Representatives coming to provinces regularly Good regime of discount and customer care: separated, distributed to many objects, simple procedures, workshop and party for the system Good regime of discount and customer care Payment of debts to health center until consumption of all goods and receiving receivables from customers Payment of debt within month to customers Recovery of excessive goods from customers No recovery of goods but agreement to answering questions of customers about products Vaccine: most manufactured by 3rd countries, not the most pure and Limited quantity of products, distribution of products mainly -7- manufactured by VABIOTECH and available in National Expanded Program on Immunization advanced products In the year 2013: - Purpose: + Initial relationship with the provincial, city/ district health centers based on the Institute's prestige (existing relationship / reputation in the preservation and use of vaccines in the Institute in the National Expanded Program on Immunization) to organize media programs to approach medical staffs at local facilities + + Proceeds from the "distribution" of vaccines to lower-level health centers are limited to scale of market survey 5.3 Testing market: - Direct competitors of the Center are hospitals: With modern equipment, large number of samples, tests at hospitals save a lot of cost biological products, leading much lower production price than tests at the Center Sampling and getting results often take place during the day, making it more convenient for customers - In fact, most conventional tests at the Center are currently deposited at the Friendship Hospital, Hanoi Medical University Hospital; only the difference should be gained, leading to a very low profit That test results at the Centre are not accepted by hospital is also one of reasons for a limited number of customers - The competition of conventional tests with hospitals is probably impossible Objectives for development and competitiveness in the future is to focus on key development of intensive and specific tests which can be done by only the Institute such as test of autoimmune diseases, flu test, Rubella (ELISA), HIV test; to develop pricing and discount policies in accordance with the general situation III Advantages and disadvantages Advantages -8- - With a history of over 60 years, National Institute of Hygiene and Epidemiology has been always a leading unit in the field of scientific research and public health and intensive test The Institute's prestige is considered as a enormous advantage for manufacturing and business operations of the Center - Leaders of the Institute always provide direct instructions and support to activities of the Center; extend the autonomy mechanism and take selfresponsibility to create favorable conditions for the Center to take initiatives in manufacturing and business operations - The center has received the enthusiastic support of all officers and employees of the Institute - The center has appointed some regular personnel with capacity, education and much experience in this field as key staffs At the same time, the Institute employed some young qualified staffs with professional experience to work at the Centre Difficulties - The economic downturn affecting the development of the Center - Almost saturated hot growth - Failure to meet the needs of growth of facilities and people - The fierce competition for the services of the Center 2.1 Management mechanism: - Center's accounting by enterprise, under the management of the Institute which is accounting by administrative unit - Currently, the Center has not gained a business license, so has not set a solid legal basis to extend business - Opening more clinics needs practice registration, business registration and ability to meet the requirements for manpower, facilities are appraised by state competent agencies 2.2 Facilities - Center after being repaired still cannot meet the growing demand -9- - The area used for offices is limited, so it cannot meet the human resource development Analysis by internal and external factors - We have the following comments: Center is responding well with the current opportunities and threats in its working environment The Center continues to implement strategies to respond better to take advantage of opportunities and minimize the possible negative impacts of external threats - The Center is at only average level of general internal strategic position - The Center should consider internal factors to improve the competitiveness of enterprises, especially in the context of current international market with very fierce competition Conclusion: + The investment should be made in the sales system as a top priority to bring about more contracts for the Center + Also, investment and expansion of offices in areas where prices are not too high are also required PART III DEVELOPMENT PLAN FOR 2013 We rely on the following bases to build development strategies: - Based on the market situation - Based on the practical situation of the Center to work out strategies to exploit the strengths and prevent weaknesses - Based on the Vietnam's situation in international economic integration - Based on the development orientation of the industry I Specific objectives: The organization: - Strengthening the structure and improving efficiency for development of business: employing and training staff, replacement and recruiting new ones , - 10 - retraining unsatisfactory staffs; transferring positions in case of inappropriate arrangement of personnel in the previous period - Providing the Institute some suggestion on allocating a number of regular staffs to the Center for purpose of human resources stabilization, training of next generations with much contribution and experience - Developing and improving working processes and regulations - Training and improving qualifications; exchanging experience - Maintaining a healthy working, civilized, professional, highly ethical, enthusiastic and thoughtful working environment Facilities: - Maintaining machinery as scheduled; procuring working tools; - Searching for customers and partners to provide equipment and modern machinery to serve the needs of the business development of Center on the development orientation of the Management Board of Institute - Ensuring a clean working environment meeting hygiene standards in health sector in order to meet the needs of customers - Maintaining the website, regularly updating information and answering questions to get better access - Making the area after HIV house a closed examination and consultancy division Business Strategy - Continuing to build, develop and strengthening the Center according to the objectives: - Ensuring and improving the quality of services: reception, professionalism, cashier, testing, business, etc - Monitoring the implementation of professional procedures - The strengthening and completing the Center at No 131 Lo Duc is the core issue; however, at this location, the development will be maintained at a certain level, it is difficult to make a breakthrough, so ability to achieve a high growth rate is very difficult Therefore, if possible, the Center should review and open - 11 - more two or three facilities in the city of Hanoi This is also a great opportunity for the Center to reach new customers in the areas of young population, economic development and high population - very potential market - Opening new facilities must comply with the following principles: + Firstly, the name and brand of the facility remain Science Center of Technical Services And Preventive Medicine - Institute of Hygiene and Epidemiology (facility 2- facility 3) + Secondly, professional processes are unified and managed closely similarly to standards at the Centre No 131 Lo Duc, absolutely no difference This is the most important principle + Thirdly, in terms of management, the new facilities will be under the management and supervision of the Board of Management of the Center and Board of Directors of Institute + Fourthly, to reduce the risks in business operations, the unit should work with other ones and persuade partners to comply with the three criteria stated above - Developing a center for business and sale of vaccine sales of high quality, various categories and reasonable price for the medical centers of provinces, districts, communes and the projects in the northern region and cross the country in the future + Negotiating with vendors of vaccines and chemicals for the Center to be a distributor + Maintaining stability of operations with customer; actively providing customer care; increasing sales in the region + The sale staffs should establish partnerships, learn about difficulties and advantages of each locality and propose solutions to overcome such challenges by coming to the locality + Developing policies to cooperate with the new customers PART IV MARKETTING PLANNING/CUSTOMER CARE - 12 - I Service delivery strategy Capacity building for staffs: - Regularly inviting lectures to train staffs and send staffs for short and long term training courses (all doctors working in the Center are not only good at providing advice on vaccination schedules but also have a good knowledge of disease as well as ability to find out common diseases of children, reproduction, nutrition) - Inviting prestigious experts in each specialized field to be involved in consultancy, exchange of experiences on issues that attract attention of health personnel and logistics sector employees - Developing standard practice procedures in accordance with regulations of the State and the specialized agencies; regularly training and maintaining weekly / monthly / quarterly professional activities to exchange professional experience during working - Inviting vaccine companies and suppliers to regularly exchange information during the use of products Vaccination Services - Fully operating the market segment of high-income objects (inner city schools, financial institutions, post office, gas and oil sector, etc) - 2nd quarter of 2013: opening one more immunization facility outside the Institute - 4th quarter of 2013: reviewing operations of facility No to open facility No - Opening more facilities outside the Institute: + The first method: associating with the preventive medicine centers of districts in the form of cooperation and profit sharing The center will be responsible for vaccine and professional process and human resources, etc Partners shall be responsible for facilities Depending on the level of cooperation, two parties will discuss the profit sharing ratio Advantages: low cost for infrastructure investment, location rental, and taking advantage of available clients of the partners Cons: Risks to lose the brand; it is required to set conditions for close association - 13 - + The second method: renting the place, opening facilities of National Institute of Hygiene and Epidemiology Pros: good facilities, no brand confusion Cons: Very high initial investment costs, etc Tests: Promoting the test contract for the agencies, enterprises, promoting indepth tests of the Institute Vaccine distribution: Focusing on the provinces with good economic conditions, focusing on delivery of only high quality products of reputable companies II Pricing strategy Price of service vaccination: Test price Price of vaccine distribution: III Brand promotion - Affirming and promoting the brand through media programs, quality and service attitude - Organizing community activities: advocacy, promotion of products, conferences, workshops, etc - Developing promotions, discounts on important holidays of the year on the basis of the general development of the Institute - Maintaining, paying more attention to the advice channel, customer care via telephone No 1088 - Proactively reaching new customers through phone calls, mailing, direct contact For customers who have used the services of the Center, continuing to call, send a message to remind the vaccination schedule, new vaccines, etc IV Advertising and sales promotion - Promotions expected in 2013 + Search keyword ads on Google + Selective advertising on a number of newspapers, prestigious magazines + Printing advertising content on cargo containers at the Center - Promotional materials include: - 14 - + Printing catalogue for an overview of the main activities of the Centre + Flyers: adult and children vaccination schedule, brochures of specific disease (provided by the unit) + Developing clips of infectious diseases, the Center for viewing in waiting room, advertising on television - Sales promotion: through discount and promotion policy, together with this plan - Customer care: V Direct Marketing - Selecting staffs who actively give service packs to customers - The sales staffs of the Center plan to each unit / customer under goals and strategies set out for each period + 1st quarter: Focusing on schools (teachers, students - parents) + 2nd quarter: Focusing on financial agencies + Third quarter: Focusing on provincial areas + Fourth Quarter: Focusing joint venture agency, bank, post office - Approach: It is required to organize talks, provide communication materials analyzing the benefits of vaccination of some specific vaccines to customers - 15 - ... modern machinery to serve the needs of the business development of Center on the development orientation of the Management Board of Institute - Ensuring a clean working environment meeting hygiene... to meet the requirements for manpower, facilities are appraised by state competent agencies 2.2 Facilities - Center after being repaired still cannot meet the growing demand -9- - The area used... external threats - The Center is at only average level of general internal strategic position - The Center should consider internal factors to improve the competitiveness of enterprises, especially