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    Marketing Philosophy and Strategy at American Intercontinental Brainstorming Conference

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    You have been invited to attend the American Intercontinental Brainstorming Conference, a meeting of elite entrepreneurs and marketing executives. You will use this forum to discuss a new product you wish to launch and the marketing plan you will develop over the next five weeks. Since nondisclosure and confidentiality agreements have been signed, this venue provides a unique opportunity to share ideas with peers about your product.

    Describe in detail KAISER PERMANENTE. Discuss how this product is new to the marketplace. At this point, there is no need to discuss the aspects of your marketing strategy. Of course the product is healthcare services. Assume that the development phase is over and you are ready to launch the product into the marketplace. Please remember that this assignment is about marketing a product/service to your target customer group and that we'll be going through the steps to do that.

    Give advice to at least two other participants. You may have some great ideas that can help another individual or perhaps there are some questions you need to be asking about their product.

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    Solution Preview

    Kaiser Permanente began at the height of the Great Depression with a single inventive young surgeon and a 12-bed hospital in the middle of the Mojave desert. When Sidney R. Garfield, MD, saw the thousands of men involved in building the Los Angeles Aqueduct, he also saw something else - an opportunity to provide health care for those workers. He borrowed money to build Contractors General Hospital, six miles from a tiny town called Desert Center, and began treating sick and injured workers. But financing was difficult, and Dr. Garfield had trouble getting the insurance companies to pay his bills on time. And though not all of the men had insurance, he refused to turn away any sick or injured worker. As a result, often he was not paid for his services. And it wasn't long before the hospital's expenses were far greater than its income.

    On October 1, 1945, the Permanente Health Plan officially opened to the public, taking its name from the Permanente Creek that flowed through Henry Kaiser's first plant in California's Santa Cruz Mountains. In just 10 years, 300,000 Northern California members were enrolled in the Health Plan. In these early years, the success of the Health Plan was largely the result of union support. Two unions in particular?the International Longshore and Warehouse Union, and the Retail Clerks Union?were the driving force behind bringing the Health Plan to Los Angeles.

    In 1952, the name of the Health Plan and the hospitals was changed from Permanente, which some felt had little meaning outside the organization, to Kaiser, which was recognized nationwide because of Kaiser Industries and Henry J. Kaiser himself. The medical group chose to keep the Permanente name, in part to make it clear that they were not employees of Henry Kaiser.

    Kaiser Permanente is actually a consortium of three distinct entities ...

    Solution Summary

    A discussion of the marketing philosophy and strategy for KAISER PERMANENTE.