Positioning And Differentiation Strategies Marketing Essay

With increased competition, organizations are seeking to enhance their brands' competitiveness through effective positioning where differentiation has become a crucial element. UnitedHealth Group and WellPoint Inc. Group have been discovered as two organizations in healthcare industry for evaluation of their program of setting and differentiation strategies. The research records the best strategies' software as well as compares and contrasts their request by the two organizations.


Organizations Overview

UnitedHealth Group is a father or mother company to various health insurance and healthcare service organizations. It's the second largest publicly traded US Company in health insurance providing healthcare services worldwide in healthcare consulting, niche services and healthcare management. (UnitedHealth, 2013a) On the other hand, WellPoint Inc. Group is probably the largest health benefits organizations in the US with over 36 million people in its affiliated health ideas as well as 67 million being offered by its subsidiaries. It includes a wide range medical products. (WellPoint, 2013a)

Positioning Strategies

Positioning strategies refers to the applications used by organizations in determining their services to customers' intellects against the opponents' brands. (Karadeniz, 2009) In that respect, effective positioning will involve considering the target market, the difference with competition, how the difference can be communicated to customers and the worthiness of the difference to the customers. (Manhas, 2010) In this value, both organizations employ positioning strategies that seek to identify and solve brands' positioning and differentiation from comparing brands, identify opportunities for potential market segments to present new brands and reposition the existing ones as well as discovering the underserved sections that the prevailing brands serve. (Gwin & Gwin, 2009) In addition, it entails participating in effective communication with the target market. (Kardeniz, 2009)

UnitedHealth and WellPoint position their services to customers depending on deal factors, availability, prices and gain factors. (Kotler & Keller, 2006) The positioning strategies applied include setting within the marketplace through differentiation of the products and services and placing through the creation or establishment of new markets from the competitors. (Mita & Bettman, 1989)

In this consideration, UnitedHealth Group positions itself as a business with all relationships relevant to the medical including that of right doctors and patients, right patient data and doctors, right information and consumers as well as between patients and their needed medication. The organization has also founded itself as the national exchange middle for essential information and since a leader in healthcare technology system. An example is the organization's Health Coverage by which it straight provides various health insurance ideas for students, individuals and people aged below 64 years through Golden guideline Insurance setting itself as a preferred service provider for the prospective segments. (UnitedHealth, 2013a)

On the other side, WellPoint looks for to make healthcare easier through improvement to their system as well as enhancing the clients' healthcare access. The organization uses health associated companies and health care plans to drive innovation, empower customers as well as control healthcare costs positioning itself as an efficient service provider. (WellPoint, 2013a)

Differentiation Strategies

In a bid to establish competitive benefits, UnitedHealth and WellPoint deliver services that provide valued top features of quality, reliable delivery and overall flexibility. (Spencer, Joiner & Salmon, 2009) They achieve this through the use of various types of differentiation including service differentiation, price differentiation and topic offers that establish segments which will vary from the mass market. Furthermore, they carry out differentiation through added services as well as through communication with focus on segments. (Grimm & Malschinger, 2010)

In that respect, United Health seeks to put itself through added services and creativity. An example is the Health4Me mobile software that offers consumer health information regarding benefits, signed up nurses' information as well as medical doctors and medical center locations. UnitedHealth's malignancy attention is also differentiated in transaction through a payment model that bundles payments to ecologists ensuring continuity of the patients care as well as enhancing their medical care quality. Furthermore, UnitedHealth's iPlan combines health reimbursement accounts with high deductible health plans which expand the ordinary plans to include company group's health cost savings accounts. The organization also has differentiated service delivery through its good care coordination which stations resources right to doctors and consumers removing the last authorization. (UnitedHealth, 2013b)

On the other palm, WellPoint applies some differentiation to its service delivery to position itself as a highly effective health care service provider. Some of the differentiation strategies applied include its collaboration with IBM to determine the IBM Watson program program that helps doctors review huge quantities of data and get results in under three seconds boosting the organization's ability to deal with complex cases. The business also provides its clients with an internet feedback tool through which they provide feedback on their experiences with medical doctors as well as rate their services. Furthermore, WellPoint provides a virtual enrollment center which provides customers with a platform to activate the organization's employees as well as access benefit plans, professional medical strategies and prescriptions information. (WellPoint, 2013b)

Thus each organization seeks to position itself as a preferred health care service and benefits supplier. To do this UnitedHealth looks for to concentrate on the mark market's needs of professional medical information by offering differentiated service which has more info provided as added services and through healthcare education from Optum insights. On the other hand, WellPoint seeks to put itself as a business whose services are easier and effective to gain access to. This is done through the various innovations aimed at making consumer activities as efficient as possible. However, both organizations involve some similar strategies in their concentrate on effective usage of healthcare data to position themselves as efficient providers of services predicated on informed decisions. This is clearly noticeable in UnitedHealth's usage of its large healthcare data while WellPoint utilizes the IBM Watson software program to gain access to and analyze professional medical data. (WellPoint, 2013b)


The research has proven effective setting as important in establishing successful brands that can handle effectively competing when confronted with increasing rivalry in the health care industry. Differentiation has also come out as a key element of setting strategies as it seeks to set an organization's brand in addition to the competition through various differentiation strategies. In conclusion, UnitedHealth Group and WellPoint Group have been demonstrated to be making use of some similar placement and differentiation strategies as well as contrasting strategies in a bet to set their brands as unique compared to the rivalling brands.

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