Project Report

FTMBA, Trimester 5, 2022-24

Date: 19th Nov 2023

Submitted To: Dr Preeti Khanna

Submitted By: Group 2

NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

SVKM’S School of Business Management

Digital Product Design and Development

NAME ROLL NUMBER

Spandan Chatterjee C039

Sagar Srivastava C039

Ketan Das E044

Saransh Gupta E045

Arpit Jain E051

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Table of Contents

1. Company and Product Synopsis...............................................................................................3

2. Industry Analysis....................................................................................................................... 4
3. Marketing and Customer Acquisition Strategy.................................................................... 23
4. Operational Strategy............................................................................................................... 30
5. Gamification and Rewards......................................................................................................32
6. References................................................................................................................................. 35

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 1. Company & Product Synopsis

Introduction to the Digital Product:

Our innovative mobile application, named "MedSathi" is poised to revolutionize the

pharmaceutical landscape in India by seamlessly connecting medium and small-scale
pharmacies. With a primary focus on leveraging the Open Network for Digital Commerce
(ONDC), our product aims to streamline the procurement and delivery of pharmaceuticals,
including medicines, medical devices, and lab test bookings. This digital solution is designed to
cater to the needs of both pharmacies and consumers, contributing to a more efficient and
accessible healthcare ecosystem.

Purpose:

MedSathi serves as a comprehensive platform that bridges the gap between consumers and local
pharmacies, creating a unified space for the procurement and delivery of pharmaceutical
products. The application is dedicated to enhancing the overall efficiency of the pharmaceutical
supply chain, facilitating the seamless ordering and delivery of medicines, medical devices, and
other essential healthcare products.

Target Audience:

The primary target audience for MedSathi encompasses both medium and small-scale
pharmacies seeking a digital solution to enhance their operations. Additionally, consumers
seeking convenient access to pharmaceutical products and healthcare services form a crucial part
of our audience. By addressing the needs of these key stakeholders, MedSathi aims to create a
symbiotic relationship, fostering improved accessibility, and efficiency within the pharmaceutical
sector.
Our primary focus regions are Tier 1 cities.

Problem Statement:

The traditional pharmaceutical supply chain in India has often been characterized by
inefficiencies, lack of connectivity, and limited accessibility, especially for medium and
small-scale pharmacies. Consumers, on the other hand, face challenges in obtaining timely and
reliable access to essential medications and healthcare products. MedSathi addresses this gap by
providing a centralized digital platform that connects pharmacies with consumers, streamlining
the procurement and delivery process.

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Value Proposition:

MedSathi offers a transformative solution by providing:

- Efficient Connectivity: Medium and small-scale pharmacies can connect with a broader
consumer base, expanding their reach and improving operational efficiency.

- Seamless Ordering and Delivery: Consumers can easily order medicines, medical devices, and
book lab tests through the app, enjoying the convenience of doorstep delivery.

- Enhanced Access to Healthcare Services: The application contributes to improved access to

healthcare services by creating a unified ecosystem that prioritizes efficiency and accessibility.

As a result, MedSathi not only addresses the existing challenges within the pharmaceutical sector
but also delivers tangible value to pharmacies and consumers alike, making it a pivotal player in
the evolving digital healthcare landscape.

2. Industry Analysis

Competitive analysis
Overview of Key "E-Pharma" Companies in India

Major Players

Name Website

MedPlus Health Services Limited http://www.medplusindia.com/

1mg http://www.medplusindia.com/

Apollo Pharmacies Limited http://www.apollopharmacy.in/

NetMeds Marketplace Limited http://www.netmeds.com/

PharmEasy (91Streets Media Technologies Private http://www.pharmeasy.in/

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Ltd.)

Emerging Players

Name Website

Healthkart http://www.healthkart.com/

Medsonway Solutions Pvt Ltd http://www.medsonway.com/

mCHEMIST Global Private Limited http://www.medsonway.com/

Truemeds http://www.truemeds.in/

Players Benchmarking

Website Benchmarking

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Prominent players in the e-pharmacy sector:

1. MedPlus
MedPlus Health Services Limited, commonly known as MedPlus, is a pharmacy retail
store operator in India
• The company operates through five major business divisions: Pharmacy,
MedPlusmart, MedPlusLab, MedPlusLens, and RiteCure
The company has an online platform called MedPlusMart involved in online pharmacy
retailing
▪ The mobile application of MedPlusMart is available on Google Play Store and Apple Play
Store
▪ The MedPlusMart provides products under two major category– Health Store and
Pharmacy

2. 1mg

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1MG is a prominent and trusted consumer healthcare platform in India. It offers affordable
healthcare services and cost-effective alternatives. Additionally, it empowers the public by
providing e-consultations and e-diagnostic services, enhancing their understanding of medication
therapy. 1MG is dedicated to offering the most appropriate healthcare products and services to
consumers and caregivers at convenient prices.

- Headquarters: Gurgaon
- Operations: Web portal and mobile app available on Android and iOS

3. Apollo
Apollo Pharmacies Limited operates as a wholly-owned subsidiary of Apollo Medicals
Private Limited (AMPL), which is a part of the Apollo Hospitals Enterprise Limited
• The company has a strong retail network of around 3,766 stores (as of FY 2020) across
India
• The pharmacy provides a wide range of OTC pharmaceuticals and fast-moving
consumer goods (FMCG)
• The company provides private-label products through its brand Apollo in categories
such as personal care, nutrition, healthcare and devices, beauty, and baby and mother
• It also offers a range of value-added services to its customers such as tele-
consultation, home deliveries, prescription refill reminders, diagnostic reminders, and
loyalty discounts
• The pharmacy is accredited with International Quality Certification

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 4. NetMeds
Netmeds is an official online platform offering the delivery of over-the-counter and prescription
drugs. Currently serving around 5.7 million people across 670 cities and towns, Netmeds
provides an easy-to-use platform for acquiring a wide range of products online. Their qualified
pharmacists review and authenticate uploaded prescriptions and dispense the required
medications, including over 70,000 prescription drugs for various ailments and non-prescription
items like nutritional supplements.

- Headquarters: Chennai

5. PharmEasy
PharmEasy, launched in 2015, strives to provide reliable healthcare products and services across
1000+ cities, covering over 22,000+ pin codes. The platform acts as an intermediary between
consumers and local pharmacies, offering diagnostic services for a wide range of medical needs.
PharmEasy's vision is to ensure quality medicines are accessible to every Indian citizen while
saving them time and money.

- Headquarters: Mumbai

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 6. Healthkart
• Healthkart was established in 2011; it serves through its online and offline channels
• The company offers nutrition, health, and fitness products and services
• It has a total funding of around INR 4,326.17 Mn over four rounds of funding
• As of May 09, 2019, the company had raised funds from a Series G round
• It has more than 200 brands and vendors listed on its website, including Muscletech,
Dymatize Nutrition, and Ultimate Nutrition
• The company also owns nutrition brands such as Incredio, MuscleBlaze, and HealthViva
• Healthkart sells more than 10,000 health, fitness, and personal care products across
different categories and brands

7. Medsonway
• MedsOnWay is an online medicine delivery start-up, based in Pune
• It has collected a total funding of around INR 42.55 Mn
• As of November 06, 2017, the company had raised its funding from seed round
• The company’s portfolio includes online pharmacy and corporate healthcare
management

8. mCHEMIST
• mCHEMIST is an online platform that offers herbal, ayurvedic, and nutritional medicinal

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products
• It delivers prescription medicines, healthcare supplements, herbal supplements, daily
wellness aids, and healthcare devices

9. Truemeds
• Truemeds is an online pharmacy store that sells medicines from different brands and
manufacturers
• It is a privately held company with 15 employees
• The company has incorporated AI-based proprietary Triple Check (TC) flow to get the
orders verified by doctors before delivery
• It has a total funding amount of around INR 54.68 Mn
• As of May 16, 2020, the company had raised around INR 47.12 Mn in seed round
• Key competitors of Truemeds include Alto, Echo, Dawaai, and DocMorris
• Info Edge Ventures is one of the key investors of Truemeds

Other Players:

1. CareOnGo
CareOnGo, India's first mobile chain of co-branded pharmacy stores, offers a technology-driven
platform for local retail stores to manage their inventory systematically under one umbrella.
Users can conveniently purchase medicines via their smartphones and benefit from medicinal
alternatives, discounts, daily alerts, and confidentiality.

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- Headquarters: New Delhi

2. Medlife
Medlife is one of India's largest online healthcare platforms, providing a one-stop solution for
healthcare needs. Their mission is to offer the best healthcare facilities to every Indian citizen,
offering a wide range of genuine products at discounted rates. Medlife's services include
e-consultations with healthcare specialists, health assessments through Medlife labs, and secure
health record management. They serve clients across about 25,000 pin codes in India and have
received recognition as a "Hot Bangalore Brand" in the Young Organizations category.

- Headquarters: Bengaluru

3. Myra Medicines
Myra Medicines, a Bengaluru-based startup, addresses the issue of medication unavailability in a
timely manner. The company has partnered with a network of 40 distributors across India. Myra
offers substantial employment opportunities and was acquired by Medlife in 2019 through an
all-stock transaction deal.

- Headquarters: Bengaluru

Recent Developments

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Overview of the market opportunity

Summary

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E-pharmacy market overview:

E-pharmacy Market Segmentation:

Key highlights
• The e-pharmacy market is categorized into two segments – Chronic and acute therapy
• In 2021, the chronic therapy segment dominated the market, accounting for 61.83% of the
overall revenue
• It is expected to continue its reign during the forecast period. However, its market share is
estimated to decline, from 61.83% in 2021 to 52.34% in 2027
• Acute therapy is anticipated to witness promising growth during the 2022 - 2027e period. Its
market share is estimated to increase, from 38.17% in 2021 to 47.66% in 2027
• About 12% of Indian population is above 54 years of age who are major chronic patients,
which is expected to grow at 14% by the end of 2022 thus E-pharmacy sector is estimated to
serve 210 million chronic patients
• Partnership with hyperlocal offline players is expected to improve the delivery timeline of
e-pharmacy companies, allowing them to serve patients with acute short-term ailments

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Chronic
• Consumers with chronic conditions require long-term treatment, and thus, have recurring need
for medication
• People prefer e-pharmacy platforms owing to the availability of a wide range of medicines at
discounted prices than local pharmacy stores
• In addition to improved accessibility and affordability, these forums offer several value-added
services such as treatment plan creation, adherence management, self-monitoring, and
self-assessment

Acute
• Customers are expected to prefer e-pharmacy platforms for the management of acute ailments
such as common cold in the next few years
• The adoption of the click-and-mortar model and partnerships between e-pharmacy brands and
local pharmacy merchants are anticipated to speed up delivery times that were previously
impractical to achieve through centralized hubs
• Acute therapy is the fastest growing segment than chronic therapy at a CAGR of 26.71%
during 2020-2027e period

Factors driving the growth of the online pharmacy segment in India:

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1. Disorganization in Traditional Pharma Retail: The conventional pharmacy retail industry
in India is highly fragmented, with numerous retailers spread across various locations. This leads
to challenges like the sale of substandard and counterfeit drugs, price wars among retailers, and
limited drug availability. The rise of e-pharmacies can address these issues by providing
consumers with a well-organized online platform for purchasing medications.

2. Governmental Support: Recognizing the importance of e-pharmacies, both the Central and
State Governments, particularly during the COVID-19 pandemic, classified them as essential
services. They also promoted e-pharmacies through the Aarogya Setu App. Various government
initiatives such as Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), Digital India,
Ayushman Bharat, Startup India, and the National Digital Health Mission (NDHM) have been
introduced to boost growth and facilitate a more business-friendly environment in the online
pharmacy sector.

3. Value and Convenience: E-pharmacies can ensure the supply of genuine and authorized
drugs at affordable prices by eliminating middlemen and offering discounts. They also provide
enhanced accessibility through online platforms, home delivery services, and improved digital
payment infrastructure. This combination of value and convenience makes e-pharmacies a
preferred choice for consumers in India.

4. Untapped Potential in Tier II and Tier III Cities: E-pharmacies still have significant
growth potential in smaller cities and towns (Tier II and Tier III cities). To tap into this potential,
substantial investments are needed to improve logistics channels and expand the presence of
e-pharmacies in these areas.

5. Increase in medicine spending: Medicine spending in India is expected to grow between

9-12% over the next five years.Therefore, it would be safe to say that E-Pharmacies have a bright
future and will continue to boom in the Indian Markets. Factors such as rise in internet
penetration, investments and medicine spending, improvement in supply chain logistics, digital
payments infrastructure and legal/regulatory framework, measures to ensure data safety and sale
of authorized drugs, will help in this endeavor. E-Pharmacies need to focus on delivering value
apart from offering the products.

6. Scope for Internet Penetration: In India, there is still a lot of scope for internet penetration
and it is expected to increase at a CAGR of 8.78% between 2020-255 . As a result of this,
E-Pharmacies would continue to grow in India, with the gradual increase in internet and mobile
phone penetration. Apart from this, constant technological upgradation will continue to support
this growth.

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Driving factors of the E-pharmacy

Stakeholders in the E-pharmacy Ecosystem

Concern Areas for Stakeholders

Technology Landscape

Artificial Intelligence (AI):

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• AI can fundamentally assist with analytics by providing more data-driven approach towards
patient classification
• AI based e-pharmacy solutions includes an automated technology that uses automation features
to acknowledge prescription and administer drugs, with
minimal contribution from a pharmacist
• With the volume of clinical data developing at a surprising rate, AI is helping the e-pharmacies
use it to further develop and advance the general cost of drug
development
• Besides, the demand for vast data handling and effective delivery assistance has put
AI-empowered solutions at the forefront of the arising e-pharmacy
revolution

Example:
• 1mg supports AI to create a merged health forum to get a complete insight into an individual’s
health
• The combined health forum can be used to create data and disease progression models for
chronic conditions
• Various AI models create standardized data to convert hard copy of the prescriptions into
systematic data algorithms
• Further the digital prescription is simplified into standardized data by the pharmacists to get the
medicine name
• NetMeds uses AI to predict demand and product needs by pincode and connects it to the
warehouse that services that specific pincode.

Machine Learning (ML):

• The application of machine learning tools provides an opportunity to increase drug discovery
and development and provide new medicines to patients more
quickly
• ML could save e- pharmacy market players around INR 8,000 Bn annually because of greater
efficiencies in clinical trials
• Along with developed patient care, ML has reached a phase where it can be used to predict an
upcoming epidemic, which will act as a boon to e-pharmacy
companies to pace-up their production rates in advance

Example:
• PharmEasy uses machine learning for providing suggestion on alternative medicine, diet, and
tests

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• NetMeds implements machine learning for catalog mapping, detection of new pack sizes, and
synchronizing with suppliers

Deep Learning:

• Deep learning enhances the e-pharmacy industry by analyzing data at excellent speed with high
accuracy rates
• It utilizes a layered algorithm of database to abstract data at an amazing rate
• Deep learning utilizes mathematical representations which helps in easing data interpretation to
consumers through e-pharmacy apps
• It has the potential to significantly improve healthcare by adding rich layers to healthcare
solutions

IoT:

• The internet of things (IoT) gives the e-pharmacies new opportunities, including; better control
of drug manufacturing, maintenance of equipment and
developed supply chain
• E-pharmacy and IoT will move the focus towards a new and better technological approach in
handling database of patients
• IoT has made health-monitoring technology accessible and affordable. While doctors are
increasingly prescribing healthcare devices, pharmacists are
teaching patients their benefits
• The data accumulated by the sensors can be utilized for arranging maintenance and repair,
avoiding basic issues, limiting personal time, and furthermore
guaranteeing workplace safety

Blockchain:

• Blockchain has massive scope to improve the operations related to payment security,
prescription authentication, permit exchange and authentication, and
product tracking
• It can aid e-pharmacies to manage inventory levels, and thus, meet the surging demand
• It has significant advantages such as:
-Security of data
-Transparency of database operations
-Traceability
-Efficiency and speed
-Automation

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Big Data and Analytics:

• Big data analytics can help to reduce cost of data processing and fast-track clinical trials by
examining and determining data points
• They include demographic and historical data of participants, and remote monitoring
information of patients

Market Challenges

Data Security and Cybercrime

• Data security and patient confidentiality are concerns that challenge the key players
• Online transactions are inadequately protected; several sites do not secure customers' data;
post-purchase emails often contain unencrypted connections to
customer data
• Such vulnerabilities can lead to consumer misrepresentation and insufficient information
protection.
• Moreover, cybercrimes related to the COVID-19 pandemic, including online sales of fake
medicines, forged test units and non-delivery scams have increased

Discount Impacting Profitability

• Providing attractive discount is one of the key strategies implemented by online pharmacies to
acquire customers in the highly competitive market
• However, the heavy discount affect the profitability of players, often leading to cash burns
• Discount as high as 35% exceed the profit margin, which is usually around 30%, incurring loss
• On the other hand, huge offers by e-pharmacies negatively impact traditional sales

Customer Service
• E-pharmacies experience challenges in improving customer experience and addressing
complaints
• They face issues related to delay in delivery, overpricing, order manipulation, replacement, and
deferral or refusal in refunds

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• Customer service centers are unresponsive in many cases, which impacts the brand image
• Various e-pharmacy platforms have poor or no-order-tracking and data update systems
• Moreover, language barriers impact customer service

Lack of consensus on regulatory e-pharmacy models

• Low-income states should consider about looking to the regulatory experience of their higher
income counterparts, which have been wrestling with e-pharmacy for
longer
• Illegal or rogue e-pharmacies that operate without license, offer medicines without
prescriptions, and sell fake medicines and merchandise. This is one of the biggest
challenges that hinders market growth
• Regulatory agencies tasked with addressing these problems are understaffed and overburdened
• Conventional pharmaceutical regulators do not have proper equipment to screen online
exchanges and their complex connections with transportation, online
advertising and payment services. They are also devoid of the power and resources to control
large companies

Dangers from inappropriate medicine provisions

• Sale of medicines without prescriptions can be a threat to consumers' health
• Antibiotics taken without prescription may result in resistance to antibiotics over time. This
could be hazardous for health as it will become difficult to treat infections
if these drugs become less effective and it can occur due to lack of insights among consumers
• Storage of medicines and their delivery through an unbroken cold chain is also a matter of
concern. Hence at a broader level, clinical error is common in several e-
pharmacies

Demand of our mobile app and how it addresses a specific need or gap in the market

ONDC
The Open Network for Digital Commerce (ONDC) is a groundbreaking technological project
designed to transform the digital commerce landscape in India. Its main goal is to tackle various
issues that consumers and businesses encounter in the online marketplace, such as monopolistic
practices, the use of multiple delivery applications, and convenience problems. ONDC plans
to utilize cutting-edge technology to create a fair and open digital commerce network. By
adopting this innovative approach, ONDC aims to promote competition, empower consumers,
and improve user-friendliness in the digital commerce sector.

ONDC brings together these different providers, giving you more choices, and competitive
prices while fostering healthy competition.

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ONDC empowers you to select items from a wide spectrum of vendors, ranging from small
neighborhood stores to large supermarket chains. This means you have the freedom to explore a
variety of products and find the best deals.

It also allows the buyer or seller to choose delivery agents from other apps if the selected app’s
delivery agent is unavailable to provide delivery services.

ONDC offers a wide array of potential benefits for both users and sellers, including:

1. Enhanced Choice and Competition: ONDC brings together multiple e-commerce sellers,
providing consumers with a more extensive selection of options at competitive prices.

2. Cost Savings: A significant advantage of ONDC is its affordability, making it a cost-effective

choice compared to other food delivery apps. This cost-effectiveness can help users save money
on their orders, making it an appealing option for budget-conscious individuals and families.

3. Discounts and Promotions: ONDC on Paytm features promotional deals and discounts for its
users. These can encompass reduced prices at specific restaurants or on particular menu items,
free delivery, and seasonal special offers.

4. Support for Small Businesses: ONDC provides small businesses and local vendors with a
platform to reach a broader customer base by integrating them into a shared marketplace.
Customers can also access a wide range of products that may not be available on traditional
e-commerce platforms but are readily accessible locally.

5. Government Backing: As a project supported by the Department for Promotion of Industry

and Internal Trade (DPIIT) of the Government of India, ONDC benefits from government
endorsement, offering users credibility and assurance.

6. Customer Support: Integrated into the app, ONDC offers dedicated customer support to
promptly address any concerns or questions users may have. Users can reach out to the support
team for assistance with order tracking, payment issues, or general inquiries.

7. More focus on apps in Indian languages: It provides a platform for small retailers to reach a
wider audience with their products and services.

What does our App offer (Value Proposition):

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1. Convenience and Accessibility: The app offers a convenient way for users to order essential
healthcare products from the comfort of their homes. This is especially significant for individuals
with limited mobility, busy schedules, or those who prefer the convenience of online shopping.

2. Wider Product Range: Our app can leverage ONDC's network to bring together various
e-commerce sellers in the healthcare sector. This translates to a more extensive range of products
available to users. Many consumers may struggle to find specific medical devices or prescription
medications in their local pharmacies, but with the app, they can access a broader selection.

3. Affordability: Through ONDC, our app can offer competitive pricing. This is particularly
important for consumers who seek cost-effective options for their healthcare needs. Many
individuals and families are looking for ways to save on healthcare expenses, and your app can
help meet this demand.

4. Support for Local and Small Businesses: By integrating with ONDC, our app can also
support local and small healthcare businesses. This is crucial as it allows these businesses to
reach a broader customer base. It helps in creating a level playing field in the market and
prevents monopolistic practices.

5. Government Backing: Being connected to ONDC, which has government support, provides
our app with credibility and trustworthiness. Users are likely to have confidence in using a
platform endorsed by the government, especially for healthcare-related purchases.

6. Customer Support: Our app's integrated customer support can promptly address users'
concerns and inquiries, which is essential for building trust and ensuring a positive user
experience.

7. Promotions and Discounts: Offering promotional deals and discounts through the app can
attract budget-conscious consumers. Many users actively look for savings and special offers
when purchasing healthcare products, and our app can cater to this demand.

8. Crisis Preparedness: In times of health crises, such as the COVID-19 pandemic, an app that
facilitates easy access to healthcare products can be a valuable tool. It can help individuals and
healthcare providers quickly source essential items.

9. Data Privacy and Security: Ensure that our app prioritizes data privacy and security,
especially when dealing with healthcare information and transactions. Users expect their
sensitive healthcare data to be handled with the utmost care.

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By addressing these needs and gaps in the market, our mobile app has the potential to become a
valuable resource for consumers, healthcare providers, and businesses in the healthcare sector,
ultimately contributing to improved healthcare accessibility and convenience in India.

3. Marketing and Customer Acquisition Strategy

Target Audience
1. Patients and Caregivers:

Individuals who need to order prescription medications, over-the-counter drugs, and

healthcare products for themselves or their family members.

2. Elderly Population:

Older individuals who may require regular access to medications and healthcare
products.

3. Busy Professionals:

Working individuals who may have limited time to visit physical pharmacies and
prefer the convenience of ordering healthcare products online.

4. Chronically Ill Patients:

Individuals with chronic health conditions who need regular access to prescription
medications and medical supplies.

5. Local Pharmacies and Healthcare Providers:

Establishing partnerships with local pharmacies and healthcare providers, labs etc
can also be part of your target audience to encourage them to recommend and use
your app for prescriptions and supplies.

Marketing Strategies

Unique Selling Proposition

Wide Range of Products: The app offers a comprehensive range of medicines and medical
equipment, catering to various healthcare needs.

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Quality Assurance: All products listed on the app are verified for quality, ensuring that
customers receive only the best.

Competitive Pricing: The app provides medicines and equipment at competitive prices, making
healthcare more affordable.

Convenience: The app offers home delivery, making it convenient for customers to receive their
healthcare products.

Streamlined Process for Sellers: The app provides a simple and efficient platform for sellers to
list their products, manage inventory, and handle transactions.

Acquisition:

· Digital Marketing: Use SEO, social media marketing, and PPC ads to reach potential
customers.

· Referral Program: Implement a referral program where users get incentives for referring
the app to others.

· Partnerships: Partner with healthcare institutions and pharmaceutical companies to reach

a larger audience.

Engagement:

· Personalized Experience: Use data analytics to provide personalized product

recommendations to users.

· Content Marketing: Regularly publish informative articles and updates related to

healthcare on the app.

· Interactive Features: Include features like health trackers, reminders for medicine intake,
etc., to increase user interaction with the app.

Retention:

· Customer Service: Provide excellent customer service to address user queries and issues
promptly.

· Loyalty Program: Implement a loyalty program where users earn points for every
purchase, which can be redeemed later.

· Regular Updates: Continually update the app with new features and improvements based
on user feedback.

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Go-To-Market Strategy

Acquisition Channels: Identify and prioritize acquisition channels such as social media ads,
search engine marketing, influencer collaborations, content marketing, and partnerships with
healthcare providers.

Customer Acquisition Cost (CAC): Set clear KPIs and targets for CAC. Measure the cost of
acquiring each user from different channels to optimize budget allocation.

Engagement and Retention: Implement strategies to enhance user engagement and retention,
such as personalized recommendations, loyalty programs, and timely notifications for
prescription refills or health reminders.

Marketing Approach:

Content Strategy: Develop informative content like blog posts, videos, or webinars about
healthcare, medication management, and the benefits of using the app. Collaborate with
healthcare professionals to create authoritative content.

Influencer Partnerships: Collaborate with healthcare professionals, pharmacists, or health-related

influencers to endorse the app and create trust among the audience.

Partnerships and Alliances: Forge partnerships with pharmaceutical companies, local

pharmacies, and healthcare providers to expand the product catalog and ensure quick and reliable
delivery.

Community Engagement: Create forums or online communities where users can discuss
health-related topics, share experiences, and interact with experts. This fosters a sense of
belonging and increases brand loyalty.

Measuring Success:

KPIs and Metrics: Track KPIs like user acquisition, conversion rates, retention rates, average
order value, customer satisfaction scores, and Net Promoter Score (NPS) to measure the
effectiveness of marketing efforts.

A/B Testing: Continuously run A/B tests on different marketing strategies to optimize
performance and identify the most effective approaches.

Feedback and Iteration: Encourage user feedback through surveys, reviews, and customer
support interactions. Use this data to iterate and improve the app's features and user experience
continually.

Campaign 1: Pre-launch Awareness Campaign

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Storyline:

Before the app's launch, the goal is to generate buzz and anticipation within

the target audience.

· Teaser Campaigns: Create teasers across social media platforms, hinting at the upcoming
solution. Engage the audience with intriguing messages about the convenience and reliability
of the upcoming app without revealing too much.

· Countdown Campaign: Initiate a countdown to the launch day, intensifying curiosity.

Utilize a dedicated landing page where interested users can sign up for early access, offering
exclusive perks or discounts upon launch.

Campaign 2: Influencer and Partner Collaborations

Storyline:

Leverage partnerships and influential voices to amplify the app's reach and

credibility.

· Healthcare Professional Collaborations: Partner with healthcare professionals or clinics

to endorse the app's reliability and usefulness in managing prescriptions and healthcare
needs.

· Influencer Endorsements: Collaborate with health-related influencers to create authentic

content showcasing their positive experiences with the app, emphasizing convenience and
ease of use.

Campaign 3: User Engagement and Retention

Storyline:

After the launch, efforts concentrate on engaging users and fostering long-term

relationships.

· Personalized Recommendations: Implement an algorithm-driven recommendation

system suggesting products based on users' previous purchases or health needs, enhancing
user experience and retention.

· Health Awareness Campaigns: Launch periodic health awareness campaigns within the
app, educating users on health-related topics, preventive care, and the importance of regular
check-ups.

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Campaign 4: Seasonal and Promotional Campaigns

Storyline:

Plan periodic campaigns aligning with seasonal trends or special occasions.

· Seasonal Health Campaigns: Run campaigns during flu seasons or allergy peaks,
highlighting relevant products and healthcare tips to cater to specific seasonal needs.

· Promotional Campaigns: Organize occasional promotional events, offering flash sales,

bundle discounts, or free shipping for a limited period, encouraging purchase spikes.

Marketing Budget

Marketing budget strategically across the various online and offline channels based on their
effectiveness and reach. Consider using marketing automation tools to streamline your
marketing campaigns and optimize your budget.

1. App Store Optimization (ASO): ASO tools, keyword research, and app store listing
enhancements

2. Content Marketing: Content creation (blogs, articles, videos), Content distribution and
promotion

3. Social Media Marketing: Social media advertising, Social media management and
content creation

4. Influencer Marketing: Collaboration with healthcare influencers

5. Paid Advertising: Google Ads and Facebook Ads campaigns

6. Referral Programs: Incentives for user referrals

7. Partnerships: Collaboration with local pharmacies and healthcare providers

8. Localized Marketing: Customized marketing materials and campaigns

9. User Experience Enhancement: UX improvements and app updates

10. Customer Support: Support team salaries and resources

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 11. Data Security and Privacy Assurance: Investment in data security measures

12. Regulatory Compliance: Compliance measures and legal consultation

13. Analytics and Iteration: Analytics tools and optimization

14. Miscellaneous and Contingency: Unforeseen expenses and contingencies

Marketing Measurement

KPIs

Regularly track key performance indicators (KPIs) such as website traffic, app downloads,
user engagement, and conversion rates to measure the effectiveness of your marketing
campaigns. Use data-driven insights to refine your strategies and improve results over time.

These KPIs can provide insights into various aspects of our app's performance and overall
business success. Here are some important KPIs to monitor:

1. App Downloads: Measure the number of downloads of your app from app stores. This
KPI reflects the initial user interest in your app.

2. Active Users: Track the number of active users who regularly engage with your app.
This KPI shows user retention and ongoing interest.

3. Conversion Rate: Calculate the percentage of app visitors who take a desired action,
such as making a purchase or signing up for a service. A high conversion rate indicates the
effectiveness of your app in converting users.

4. Average Order Value (AOV): Monitor the average value of orders placed through your
app. Increasing AOV can boost revenue.

5. Customer Acquisition Cost (CAC): Calculate the cost of acquiring each new customer
through marketing efforts. A lower CAC is generally favorable.

6. Customer Lifetime Value (CLV): Estimate the total revenue a customer is expected to
generate during their engagement with your app. A higher CLV is desirable.

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 7. Churn Rate: Measure the rate at which users stop using your app. Reducing churn is
essential for long-term success.

8. User Engagement: Track user engagement metrics like time spent in the app, number of
sessions, and user interactions.

9. App Store Ratings and Reviews: Monitor user ratings and reviews on app stores to gauge
user satisfaction and make improvements as needed.

10. Repeat Purchase Rate: Measure how often users return to make additional purchases
through your app.

11. Cost Per Acquisition (CPA): Calculate the cost associated with acquiring each new
customer through advertising and marketing efforts.

12. Return on Investment (ROI): Assess the effectiveness of your marketing campaigns by
measuring the return on investment.

13. Inventory Turnover: Monitor the speed at which your inventory (pharmaceuticals and
healthcare products) is sold. A higher turnover indicates efficient inventory management.

14. Response and Resolution Time: Measure the time it takes to respond to customer
inquiries and resolve their issues. Quick responses improve customer satisfaction.

15. Customer Feedback and Surveys: Collect feedback and conduct surveys to understand
user preferences and areas for improvement.

16. Regulatory Compliance: Ensure that your app complies with all relevant healthcare and
data protection regulations.

17. Revenue and Profit Margin: Monitor your app's revenue and the profit margin to ensure
the business is financially viable.

18. Customer Support Metrics: Track metrics related to customer support, such as response
time, issue resolution rate, and user satisfaction with support services.

These KPIs provide a comprehensive view of your app's performance and business success,
helping you make informed decisions, optimize strategies, and adapt to changing market
conditions.

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4. Operational Strategy:

The business model of MedSaathi is that of a generic eCommerce marketplace - bringing

together buyers and sellers. On the seller side we allow local pharmacies to register with us on
the ONDC platform by providing basic information about themselves. After registration a
background check is done to ensure the pharmacy meets the eligibility criteria and has the
required licenses. These verified pharmacies are then visible to the consumers on the buy-side
app. On the buy-side, we allow individual consumers to search for medicines and get them
delivered to their address from a local pharmacy. For the detailed Information Architecture refer
here

Steps involved in e-Pharmacy Model to Dispense Prescription Medicines:

1. The consumer receives a prescription from their healthcare practitioner.

2. The consumer uploads or scans the prescription to the e-pharmacy platform.
3. A registered pharmacist reviews the prescription and verifies that it is valid.
4. If the prescription is valid, the pharmacist forwards it to a licensed pharmacy retail store.
5. The pharmacy retail store dispenses the medication and sends it to the consumer's agent.
6. The consumer's agent receives the medication and delivers it to the consumer.

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Revenue Model:

● Commission fee: MedSaathi will earn a commission on each prescription that is

dispensed through the app. The commission rate is typically a percentage of the total
cost of the medication ~5%
● Subscription model: MedSaathi will offer its customer the option of having a
subscription for their monthly medicine requirements. These customers will get
access to discounts on prescriptions, lab tests and enjoy free delivery.
● Advertising: This will be a key source of revenue for MedSaathi, there are two
sources of ad revenue:
○ Listing/search ads: Local Path Labs can promote their test packages on the
app for a fee. Similarly, Local pharmacies can list their store on top of search
results as shown in the image below:

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 ○ Home page campaigns: Brands/Pharmacies/Manufacturers can pay a premium
to list their products and run campaigns on the home screen. The campaign
could include quizzes/games the users can play and win freebies - this
increases user engagement and builds brand awareness.
● Data monetization: MedSaathi will gather and analyze user data which can be sold
to pharmacies or manufacturers. Pharmacies can use this data to decide which
location to set up new shops - based on the demand seen on the platform. Another use
case for pharmacies will be regarding the demand of certain medicine, pharmacies
can get access to data on trends seen on medicines sold - brands, location, treatment
category etc

5. Gamification and Reward System:

1. Prescription Points System:

● We plan to reward users with points every time they upload a prescription or make a
purchase.
● Reward: Accumulated points can be redeemed for discounts on future purchases,
encouraging users to stay loyal to the app.

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2. Referral Rewards:

● We would encourage users to refer friends, family, or even their local pharmacies to
join.
● Reward: Provide discounts, exclusive offers, or additional prescription points for
successful referrals, fostering a sense of community and expanding the user base.

3. Medication Adherence Challenges:

● We aim to introduce challenges that prompt users to adhere to their medication

schedules.
● Reward: Users who consistently adhere to their medication schedules could earn
special badges, additional prescription points, or exclusive discounts.

4. Health and Wellness Achievements:

● We intend to set health goals or milestones for users, such as completing a certain
number of lab tests or maintaining a regular exercise routine.
● Reward: Achievers can receive special recognition, personalized health tips, or
discounts on wellness-related products available on the app.

5. Gamified Quiz and Education Modules:

● We are developing interactive quizzes and educational modules related to

pharmaceuticals, health, and wellness.
● Reward: Users can earn points or badges for completing quizzes, enhancing their
knowledge, and staying engaged with the app.
● 6. Seasonal Challenges:
● We plan to introduce special challenges or events during holidays or health
awareness months.
● Reward: Users participating in these challenges can earn unique badges, seasonal
discounts, or even enter exclusive prize draws.

7. Loyalty Tiers:

● We aim to create tiered loyalty levels based on users' engagement and spending.
● Reward: As users progress through tiers, they unlock increasingly valuable rewards,
creating a sense of achievement and exclusivity.

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8. Personalized Health Milestones:

● We aim to recognize and celebrate users' health milestones, such as completing a

certain number of prescriptions or maintaining good health.
● Reward: Provide personalized messages, virtual celebrations, or additional benefits
for reaching significant health milestones.

9. Time-Limited Flash Sales:

● We plan to introduce occasional flash sales with exclusive discounts on popular

products.
● Reward: Users who participate in these time-limited sales can enjoy significant
savings, creating a sense of urgency and excitement.

By integrating these gamification and reward system elements, MedSathi can create an
interactive and rewarding experience for users, ultimately enhancing user retention and
attracting new users to the platform.

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References

https://parth-shah.medium.com/competitor-analysis-online-medicine-space-in-india-b2177d4ca5
bc#:~:text=PharmEasy%3A%20Direct%20and%20indirect%20competition,new%20entrant%20i
nto%20the%20market

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9804119/

https://kpmg.com/in/en/blogs/home/posts/2021/12/e-pharmacy-pharma-retail.html
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9804119/

https://www.ibef.org/blogs/e-pharmacies-and-online-pharma-distribution-companies-in-india

https://paytm.com/blog/ondc/ondc-explained-what-is-ondc-and-how-to-place-an-order/#:~:text=
Does%20Paytm%20handle%20the%20delivery,network%2C%20handle%20the%20delivery%2
0process.

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