From Metros to Tier-2 Cities: Evaluating the Growth Path for a Trusted Mother & Child Care Brand

A leading mother and child care hospital chain, sought to expand its footprint beyond metro cities. With 15+ established centers offering advanced maternity, neonatal, and pediatric care — including state-of-the-art NICU and PICU facilities — the group had built strong brand equity and patient trust.

The leadership team wanted to explore Tier-2 cities across India to understand if similar demand, infrastructure, and specialist talent existed — and how the brand’s model could be adapted to these emerging markets.

That’s where our team stepped in.

Research Objectives

Conduct a comprehensive feasibility study across five Tier-2 cities in Madhya Pradesh, Gujarat, Maharashtra, Odisha, and Andhra Pradesh, assessing:

• Local demand for branded mother & child care services
• Competition from existing hospitals and chains
• Infrastructure and connectivity
• Growth potential, including areas with high inward migration from nearby districts and towns
• Understand doctor engagement strategies and motivations, including full-time, visiting, and procedure-only models
• Identify parent preferences in choosing mother & child care hospitals, including expectations on quality, convenience, experience, and pricing
• Benchmark the client’s brand against competitors and identify white-space opportunities
• Provide data-backed recommendations for establishing a specialized mother and child care hospital in the five Tier-2 cities, including positioning, service offerings, and growth strategy

Approach

Secondary Research

• Market Sizing & Trends: Evaluate the mother & child care segment across Tier-2 cities in Madhya Pradesh, Gujarat, Maharashtra, Odisha, and Andhra Pradesh
• Competitive Landscape: Identify key hospitals and chains, their service offerings, capacity, pricing, and positioning
• Infrastructure & Connectivity: Assess transport links, residential clusters, migration inflow from nearby districts, and urbanization patterns in each location
• Regulatory & Policy Context: Review local regulations, health insurance penetration, and government schemes impacting mother & child care

 

Primary Research

Parent Insights

• Conducted in-depth interviews and focus groups with expectant mothers, new mothers, and dual-income households
• Captured preferences and pain points in hospital choice: NICU/PICU quality, doctor trust, convenience, experience, postnatal services, and pricing
• Assessed demand for experience-driven care, including home visits, digital appointments, newborn photoshoots, and celebratory services

Doctor & Physician Insights

• Interviews with gynecologists, pediatricians, neonatologists, and other specialists to understand engagement models, motivations, and expectations
• Assessed availability of local talent, willingness to join full-time or visiting consultant models, and preferred revenue-sharing structures
• Identified critical factors influencing long-term doctor retention and patient referral patterns

Feasibility Validation

• Evaluated five shortlisted locations in each city based on population density, accessibility, existing healthcare facilities, migration inflow, and real estate availability
• Conducted mystery audits of competitor hospitals to analyze service quality, patient experience, pricing, and operational efficiency

Benchmarking & Analysis

• Compared the client’s existing brand perception and clinical strengths against local competitors.
• Identified gaps and opportunities for differentiation in service offerings, patient experience, and super-specialty care
• Mapped market entry strategy: optimal locations, pricing strategy, doctor engagement, and service mix for high-impact launch

 

Key Insights 

Market Demand & Patient Preferences

• Strong unmet demand for high-quality mother & child care in Tier-2 cities, particularly in areas with high inward migration
• Live births and high-risk pregnancies are concentrated in urban clusters, creating opportunities for specialized NICU/PICU services
• Parent preferences are shifting toward experience-driven care: digital appointments, home visits, postnatal wellness, newborn photography, and celebratory discharge services
• Affordability and trust remain key decision drivers; parents rely heavily on recommendations, reputation, and perceived clinical quality
• Rising interest in IVF and fertility services, with patients increasingly seeking integrated maternity and reproductive care

Doctor Engagement & Talent Availability

• Local talent pool includes pediatricians, gynecologists, and neonatologists, but super-specialty availability is limited, creating white-space opportunities
• Doctors prefer flexible engagement models, including full-time, visiting, or procedure-only roles
• Revenue sharing and timely remuneration are critical to attract and retain star consultants
• Physician trust and collaboration are crucial for referrals, especially for NICU and high-risk maternity care

Competitive Landscape

• Tier-2 cities have a mix of independent hospitals, small maternity clinics, and emerging multi-specialty chains
• Existing players are strong in basic maternity and pediatric care but offer limited super-specialty services or integrated mother & child care
• Pricing sensitivity varies: urban affluent migrants are willing to pay a premium for trust, quality, and experience; mid-income groups are more cost-conscious
• The client can differentiate by offering comprehensive, branded mother & child services, including IVF, NICU, and postnatal care under one roof

Infrastructure & Growth Potential

• Selected locations benefit from good road connectivity, urban expansion, and proximity to residential clusters
• Areas with high in-migration from neighboring towns and districts provide strong catchment potential
• Real estate availability varies: larger parcels suitable for hospital infrastructure are limited in some city centers but exist near emerging urban corridors
• Digital-first appointment systems and marketing can accelerate patient acquisition, given increasing online search behavior of prospective parents

Benchmarking 

• The client’s brand, clinical expertise, and patient-centric approach provide a strong foundation to replicate in Tier-2 cities
• Offering a full-service, integrated mother & child hospital positions the client above local competitors
• Early investment in super-specialty services, IVF, and NICU capabilities can create a sustainable competitive advantage

Impact & Recommendations – Strategic Implications

• High Potential for Expansion: Feasibility study confirms strong demand for a branded, integrated mother & child hospital across Tier-2 cities with high inward migration
• Location Selection: Prioritize locations near urban clusters with good connectivity and growing residential developments to maximize patient access and visibility
• Service Differentiation: Establish NICU/PICU, IVF, pediatric super-specialties, and postnatal wellness services to address unmet needs and differentiate from existing providers
• Doctor Engagement Strategy: Implement a hybrid engagement model, combining full-time, visiting, and procedure-only consultants, with competitive revenue-sharing to attract and retain talent
• Experience-Driven Care: Integrate digital-first services, home care, celebratory maternity offerings, and premium patient experiences to appeal to modern parent personas
• Pricing & Positioning: Offer tiered pricing to balance affordability for mid-income segments while maintaining premium options for affluent parents
• Brand Leverage: Utilize client’s existing brand credibility and clinical expertise to build trust quickly in new markets

Outcome

The feasibility study provided the hospital’s leadership with a clear blueprint for expansion — identifying where, how, and when to scale next.

It enabled data-backed decision-making for site selection, service design, and partnership strategy — ensuring sustainable growth while preserving the brand’s hallmark of compassionate, quality care.