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Pate Memorial Hospital

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I.Summary of the Facts

A.Market – Medical and Health Services

1.HMO – Health Maintenance Organization

2.PPO – Preferred provider Organization

3.Economic Market – Monopolistic Competition

1. Preventive and primary health care services
2. Emergency care services
3. X-ray and laboratory testings

a. Core – providing basic health services to people in need.
b. Secondary

1)providing cautionary screenings to forecast and prevent health problems

4.PLC – Between Growth and mature (many hospitals however technological advances in each hospitals make a product differentiation)


1.Middle to higher end.

3.Elasticity – Relatively elastic (due to available liquor alternatives) to relatively inelastic (“since “quality of the higher priced products was perceived more consistent and therefore consumer was willing to pay”)


1.Seco advertised/represented as the national drink of Panama. This idea is reinforced by the usage of the drink by the national airline of Panama on its international flight

2.Expansibility – expansible


1. The Panama Liquor Co. (Headquarter)
2. Other Central American Countries
3. Panama’s Tocumen Airport

3.Channel: Manufacturer (PL) – Agent (distributors) – Wholesalers – Retailers – Consumers


1.Pate Hospital is a non-for-profit hospital

2.Total exemption from export taxes, sales taxes and exemption from income tax on the profits obtained on export sales if PL decides to export products to USA.

II.Statement of the Problem/Opportunity

A.Primary – Whether or not to enter the US Market


1. Product Positioning Strategy

– Seco represented as a completely new category of “other spirits-beverages” OR Seco can be represented as a new type of Vodka.

III.Recommended Action

A.Primary – Enter the US market – fast growth and strong demand is attractive


1.Enter the US with Seco as its own category of liquor. This will allow the Seco liquor to differentiate itself from other brand of distilled spirits.

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