Comfort Dental Spa Marketing

Plan

Francis Madamba |
1. Executive Summary

Comfort Dental Spa is an upscale dental practice located on the north side of Chicago. It

is owned and operated by Dr. Francis Madamba. He bought the office 3 years ago from a

retiring dentist. He then remodeled the office and led it towards a new vision. He transformed

the office from an outdated dental office into a state of the art dental office with advanced

technology. 2014 was the first year of Comfort Dental Spa in its current incarnation.

Through a combination of industry benchmarked customer service and flexibility,

Comfort Dental Spa will quickly gain market share. While a majority of patients are seeing

routine dental care, a growing number of patients are looking towards cosmetic dentistry to

enhance their smile and appearance. Moving towards more cosmetic dentistry is ideal as it

services wealthier patients who are not dependent on insurance plans.

With Dr. Madambas experience and expertise along with his customer-centric business

model, he will be able to rapidly grow his already large and loyal patient base. Profitability has

already been met on November 2014. His sales for 2014 is at $1,533,000.00. With his current

plan, he hopes to exceed $2,000,000.00 in sales by the end of 2017.

2. Product / Service To Market

This is a marketing plan for Comfort Dental Spa; an upscale dental office on the north

side of Chicago. It will show the current facts and figures of the dental office and its vision for

the future to further its growth and development.

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3. Situational Analysis

Company:
Mission Statement
At Comfort Dental Spa, we strive to provide the best dental care and experience to our

patients, our family, and our friends. Upon entering our office, you will be warmly greeted by

our friendly team and calming atmosphere without the usual long wait because your time is

important to us. We will provide exemplary dental care in a state of the art facility that provides

the most comfortable and relaxing environment with great affordability and excellent value. The

entire team strives to stay on the cutting edge of dentistry by continuously attending higher

education classes at the worlds most premier post-dental education institutes for advanced

learning. We take pride in our profession.

SWOT Analysis
The following SWOT analysis demonstrates the strengths and weaknesses in Comfort

Dental Spa. It also describes the opportunities and threats facing Comfort Dental Spa.

Strengths - Dr. Madamba has a strong skill set necessary for all procedures.
- Active dental license for 22 years.
- Well trained support staff; both clinically and in the front office.
- Growth opportunity to all staff members.
Weaknesses - Lower cash flow from moving into a newer and larger office.
- Rising overhead costs.
- Higher charges than the industry average due to a more upscale clientele.

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Opportunities - Office located in an upper middle class neighborhood of Chicago.
- Population base with a higher than average household income.
- Two income families.
- Customers looking for quality services and cosmetic dentistry.
- Word of mouth marketing and referrals.
Threats - Drastic change in dental industry. Constant staff training is necessary.
- Possible increase in malpractice insurance.
- Increased competition.
- Very high customer expectations in the population base.
- Increased overhead.

Customer:
Segments
To better understand the dental needs of the community, a survey would be mailed to

households within a 15 mile radius of the office. In addition, it would be mailed to households

with a household income greater than $40,000. This is also regardless of age as Comfort Dental

Spa would see patients of all ages. The following survey would be mailed to these households.

Do you presently have a dentist that you visit on a regular basis?

() Yes

() No

How did you find your dentist?

() Referral by friend/neighbor

() Referral by acquaintance

() Referral by another dentist

() Referral by doctor

() Advertisement

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() Phone book

() Saw office/sign

() Internet

() Other

Do members of your household go to (check all that apply):

() One dentist

() More than one dentist

() An Orthodontist

() Other dental specialist

() Other

If two weeks go by and you had not yet made an appointment, would you like them to call back again?

() Yes

() No

I would prefer the following payment plan for my dental care:

() Payment required at the time of care (cash/check)

() Payment by charge cards at the time of care (VISA, MasterCard, etc.)

() Monthly payment plan at 1.5% interest per month.

() Payment due within 30 days

() Other

Dental charges may vary subject to the amount of time that the dentist takes to complete a procedure, as well as the kind of work

performed. If the cost were the same, what kind of dentist would you prefer?

() Takes a little longer to get the job done, but talks to you during the procedure (cost $90, 45 minutes time)

() Completes the work more rapidly and talks less (cost $90, 30 minutes time)

() Completes the work very rapidly (cost $90, 20 minutes time)

Do you feel that procedures should cost more when the dental office utilizes advanced technology?

() Yes

() No

() Not sure

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Would you expect the dentist who takes longer to do a better job?

() Yes

() No

() Not sure

What do you like best about your personal dentist?

What would you suggest that might make a visit to your dentist more pleasurable?

The most common reason for not going to the dentist is:

() I do go for regular check-ups

() Transportation

() The cost of care

() I dont need to go very often

() I forget to go

() I dont like dentists

() There is nothing wrong with my teeth

() Other

Since when have you made regular visits to the current dentist?

() less than 6 months

() 6 months 1 year

() 1-2 years

() 2-3 years

() 3+ years

How often do you go to the dentist for checkups?

() Every 6 months

() At least once a year

() At least every 2 years

() It depends, I go when I have trouble with my teeth

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 Would you like your dentist to notify you when it is time for a 6 month check-up?

() Yes

() No

() Not sure

If you would like your dentist to notify you when it is time for a check-up, how would you prefer to receive this notice?

() Phone call

() Mail

() Text message

() E-mail

() other

Utilizing the above dental survey, the following market segments are possible for Comfort

Dental Spa:

Middle to high income

College educated
White collar
Married with children
Teens
Senior Citizens

With this list of market segments, the following are the market targets for Comfort Dental Spa.

Middle to high income

Married with children
College educated

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The market targets are possible for Comfort Dental Spa. The following demographic profile was

researched for the area within a 15 mile radius of Comfort Dental Spa:

Population 150,000
Projected population growth in 10 years 9%
Median household income in 2013 $85,000
Median age 36
% of population College educated 57%
% of population with Grad or Prof. Degree 29%

Population
Under 18 30.2%
18-24 7.6%
25-44 29.4%
45-64 26.7%
65 and above 6.2%

Competition:
Positioning Map:
The following positioning map shows where Comfort Dental Spa ranks along with its
competition.
High quality
Comfort
Dental Delany
Spa
Dental

Heartland
Dental
Aspen

Sears
Dental
Service Low price

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4. Product

At Comfort Dental Spa, we will provide all phases of dentistry to our patients under one

roof. With a warm inviting atmosphere, our patients will feel very relaxed while receiving the

best dental treatment they have ever had. For the comfort of our patients, we have a coffee bar

available. There is also childrens section so that the kids feel comfortable.

We have state of the art dental products. We utilize digital radiography to our patients. It emits

less radiation than traditional radiographs.

We have the most cutting edge equipment such as the CEREC. It allows us to fabricate a crown

for our patients in only 1 visit. No need to have temporary crowns and only 1 time to receive

anesthesia.

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 Comfort Dental Spa also utilizes lasers. This will help our patients whiten their teeth or

create a better environment for their gum tissues.

We also offer dental implants to restore missing teeth

Comfort Dental Spa utilizes the latest in rotary endodontic equipment. No more multiple

appointments for root canals. Our patients can have a root canal done comfortably in no more

than an hour.

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 If straighter teeth are what our patients want, we can offer them Invisalign. Utilizing a

set of clear dental trays, we can move our patients teeth for a better smile without the use of

metal wires in the mouth.

We follow all OSHA guidelines and sterilize all instruments in our state of the art

sterilization room. And after all procedures, we offer our patients warm towels after the dental

procedures so that they can freshen up.

We have early and late appointments available to allow time for our patients with busy

schedules. We also have convenient Saturday hours as well. For the patients convenience, we

will file to their insurance dental plan. We also offer several payment and financial options.

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5. Distribution

Comfort Dental Spa, being a dental office, will sell its services to the customers within its

building. By providing this service, Comfort Dental Spa maintains a close relationship with their

customers. The trust the patients have with Comfort Dental Spa will help increase word of

mouth referrals.

The channel length is a zero level channel. We are promoting directly to the clientele.

This is a direct market channel. The following is a chart of the logistics of Comfort Dental Spa.

Inputs Output
- Building
- Electricity
- Phones
- Dental materials
- Dental instruments - Happy patients with happy
- Dental chairs and beautiful smiles.
- Computers
- Software
- Labor
- Patients
The labor force of Comfort Dental Care is as follows:
1 Dentist
2 Registered Dental Hygienist
3 Certified Dental Assistants
1 Office Manager
1 Sterilization Technician
2 Business Assistants
1 Financial/Insurance Coordinator

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 Comfort Dental Spa is 4000 sq. feet. The front of the office includes a reception room

with a coffee bar, a kids play area, a front desk and check out desk, the office managers office,

the financial coordinators office, and the guest lavoratories. In the clinical part of the office,

there are 4 dental treatment rooms for the dentist, 3 dental hygiene treatment rooms, a

radiography room for panoramic x-rays and CT scans, consultation room, and the sterilization

room. In the back of the office are the doctors office, the staff breakroom/lockers, and staff

restrooms. There is an employee parking lot behind the building and a patient parking lot in

front that can hold 15 vehicles.

(Floor plan of Comfort Dental Spa)

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6. Communications

Comfort Dental Spa is involved with direct selling. They are selling directly to the

customer. The first way that they would communicate with the population would be by their

own webpage. Their webpage is designed by one of the citys best internet designers. Comfort

Dental Spa believes that they can give their patients a rich source of information of their practice

and products. Comfort Dental Spa has invested a good portion of their marketing budget to their

webpage to provide their patients with the perception of total professionalism.

There is a number of dental offices within a 15 mile radius from Comfort Dental Spa.

With a high noise level, Comfort Dental Spa would use a pull strategy to communicate with their

patients. They would place ads in the Chicago magazine to help promote themselves to a higher

level of clientele. They would work with the neighborhood chamber of commerce to promote

the office with new households.

Since Comfort Dental Spa has a zero level channel and are promoting their product as a

service, they communicate directly with their patients. They do not have to communicate

through a mediator. Communication with their customers would involve the following

marketing communication mix:

Internet
Magazine advertisement
Chamber of Commerce
Phone book
Seminars

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7. Pricing

Pricing at Comfort Dental Spa for patients with dental insurance is simple. They would

have to follow the maximum allotted charge permitted by the dental insurance company. They

patient would have to pay their portion.

For patients without dental insurance or with procedures not covered by dental insurance,

Comfort Dental Spa utilizes location pricing. With the upper middle class neighborhood,

Comfort Dental Spa charges higher than average. With the state of the art advanced technology,

Comfort Dental Spa feels that the higher price is justifiable. Patients will pay the higher price for

higher quality procedures. They also will pay the higher price for a calming environment and the

experience.

8. Financials

Then following chart is the financial information for Comfort Dental Spa in 2014. In the

month of December, the office was closed between Christmas and New Years Day. The wages

total for the month of December was also increased by $50,000.00 due to the year-end bonuses

given to the staff.

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 Sep
Jan July
Feb Mar Apr May June Aug t Oct Nov Dec
INCOME
Beg Cash 4200 4670 4340 5010 5680 6850 7520 8190 9860 1053 1120 1190
Balance 0 0 0 0 0 0 0 0 0 00 00 00
1280 1200 1300 1300 1350 1300 1300 1400 1300 1300 1300 1000
Prof Services 00 00 00 00 00 00 00 00 00 00 00 00
Total 1700 1667 1734 1801 1918 1985 2052 2219 2286 2353 2420 2190
Revenue 00 00 00 00 00 00 00 00 00 00 00 00

EXPENS
ES
Lab Fees 8200 8200 8200 8200 8200 8200 8200 8200 8200 8200 8200 8200
Dental
Supplies 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000
Marketing 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000
Insurance 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000
Interest
Expense 6500 6500 6500 6500 6500 6500 6500 6500 6500 6500 6500 6500
Legal & Prof
Serv 1100 1100 1100 1100 1100 1100 1100 1100 1100 1100 1100 1100
Office
Supplies 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000
Mortgage 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500
Taxes &
Licenses 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
Utilities 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 1250
Wages 0 0 0 0 0 0 0 0 0 0 0 00
Total 1233 1233 1233 1233 1233 1233 1233 1233 1233 1233 1233 1733
Expenses 00 00 00 00 00 00 00 00 00 00 00 30

Cash @ 4670 4340 5010 5680 6850 7520 8190 9860 1053 1120 1190 4570
Month End 0 0 0 0 0 0 0 0 00 00 00 0

Based on the Comfort Dental Spas monthly expenditures, the monthly break-even point is

$123,300.00.

The following is the sales forecast up to the year 2017.

Sales Forecast for 2014 2015 2016 2017

1,533,000 1,686,300 1,854,930 2,040,423
Professional Services .00 .00 .00 .00
1,529,630 1,647,968 1,775,804 1,913,864
Expenditures .00 .00 .00 .00

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We have forecasted an annual increase in sales of 10%
We have forecasted an annual increase in expenditures of 8%.
The following chart is Comfort Dental Spas marketing Expense budget.

Marketing Expense
Budget 2014 2015 2016 2017
Internet 20,000.00 20,000.00 20,000.00 20,000.00
Advertisement 25,000.00 25,000.00 25,000.00 25,000.00
Phone Book 2,000.00 2,000.00 2,000.00 2,000.00
Seminars 10,000.00 10,000.00 10,000.00 10,000.00
Other 3,000.00 3,000.00 3,000.00 3,000.00
Total Market
Expenditures 60,000.00 60,000.00 60,000.00 60,000.00
Percent of Sales 3.91% 3.56% 3.23% 2.94%

9. Controls

Comfort Dental Spa will measure success by analyzing the monthly numbers. As long as

the dental office collects more than it spends, Comfort Dental Spa will be successful.

There are a number of risks present to Comfort Dental Spa. These risks are:

Problems generating a sufficient customer base.

A general public rejection of cutting-edge procedures
Losing patients to other dental offices
An economic downturn that significantly diminishes target customers
discretionary income.

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 If for any reason Comfort Dental Spa cannot support itself on an ongoing basis, its exit

strategy would be to sell the dental office. This would include all dental equipment and patient

records.

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