A SUMMER INTERNSHIP PROJECT REPORT ON TITLE: --- “COMPETITOR STUDY & BRAND PROMOTION” At
From 5th May to 8th July, 2012
NAME: -
Rupak Jyoti Neog
BATCH: -
SS – 2011- 13
STUDENT ID: -
D1113SSISBEPGP10091 (KOL-5-CT-1051)
COMPANY: -
MedPlus Health Services Pvt. Ltd.
PHONE NUMBER: -
+91-9953695411
EMAIL ID: -
[email protected]
SECTION: -
SC-2
DATE OF SUBMISSION: -
11/07/2012
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[2]
DECLARATION
I,
, the undersigned, a student of Indian Institute of Planning and
Management (IIPM), New Delhi, declare that this project titled “COMPETITOR STUDY & BRAND PROMOTION” for MEDPLUS HEALTH SERVICES PVT. LTD., HYDERABAD is submitted in partial fulfillment of the requirement for the internship project for the Post Graduate in Business Management awarded by Indian Institute of Planning and Management (IIPM), New Delhi. This project is my original work and has not been previously submitted as a part of another degree or Business Management of another Business School or University.
The findings, research and conclusion of this report are based on my past experience, during the tenure of my Internship at MEDPLUS HEALTH SERVICES PVT. LTD., HYDERABAD.
RUPAK JYOTI NEOG M.B.A (MARKETING) 2011-2013 INDIAN INSTITUTE OF PLANNING AND MANAGEMENT (IIPM)
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“Every achievement is not an end, but a beginning of a new journey”
The spirit of summer internship program lies in not merely doing the project but to get a firsthand experience of the industry and to prepare ourselves for tomorrow's managerial needs.
I would like to thank my project company guide at MEDPLUS HEALTH SERVICES PVT. LIMITED, Mr. Anand Kumar, Deputy Manager, Operations Department for his selfless support and encouragement during my entire internship program. He had provided me the unflinching guidance and support throughout the training program. My sincere thanks to Mr. Arindam Chaudhuri (DEAN: IIPM) for giving me the privilege to be associated with such an esteemed organization and carry the institute name forward. I am very thankful to him. I would like to specially thank Mr. Bhudevji (Pharmacist, store-in charge) & Mr Prakash for their full support and guidance throughout my project. I would also like to express my gratitude to all the present employees of Medplus Health Services Pvt Ltd., who by their patience and co-operation, have made my research rewarding and fun-filled experience. This project would have not been possible without the untiring support provided by my family and friends. The input and guidance provided by my senior have been invaluable. I would like to express my gratitude to all these people.
[4]
PREFACE
Corporate world is operating in an environment that is turbulent and ever changing. In this environment information is crucial to compete successfully in the market, where the market research plays an important role as it provides various information about the market to the company and facilitates strategic decision-making so that the organization may achieve its objectives Medplus Health Services Private Limited A major force in the pharmaceuticals and healthcare segment, Medplus Health Services Pvt. Limited, incorporating Healthcare Solutions & Pharma Solutions, has an unequivocal vision to become the most admired pharmaceutical company, with leadership in market share and profits. Healthcare Solutions This is a division with a dream to build a differentiated and a profitable pharmaceutical business with a dominant share of market in each segment in which it has a presence. With a dream to transform the industry first in India and then globally. With a dream to penetrate every nook and corner of the country with modern medicine. With a dream to move beyond pharmaceutical product offerings and make an entry into healthcare services.
The project undertaken “Study of competitors and Brand Promotion” @ Medplus Health Services Pvt Ltd was an effort to analyze the market of of Medplus. The main objective of the project was to know the retailers (customers) of the given company. The main target of the survey was to know the sales of the customers, so that by using this data, the company can craft its strategy to increase the sales. The present report is aimed at articulating and systematizing the definite concept of market research.
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1. Executive Summary------------------------------------------------------------------------- 7 2. Introduction of the subject of the project------------------------------------------------- 8 3. Research objectives & Methodology----------------------------------------------------- 9-15 4. Introduction to the Indian Pharma Retail industry-------------------------------------- 16-44 4.1 Brief Summary-------------------------------------------------------------------------- 17 4.2 Key growth drivers--------------------------------------------------------------------- 18-28 4.3 Major Industry players----------------------------------------------------------------- 29-39 4.4 Legal regulations------------------------------------------------------------------------ 40-41 4.5 M & A/PE Deals in Retail pharma--------------------------------------------------- 42-44 5. Company Profile----------------------------------------------------------------------------- 45-60 6. Corporate Profile----------------------------------------------------------------------------- 61-63 7. Literature Review---------------------------------------------------------------------------- 64 8. Analysis & Interpretation------------------------------------------------------------------- 65-75 8.1 Analysis of percentage of sales of MedPlus at different areas in South Delhi---------------------------------------------------------------------------- 66-68 8.2 Brand Promotional activities----------------------------------------------------------- 69-70 8.3 What we did for brand promotion of MedPlus--------------------------------------- 71-74 8.4 Interpretation of market share of MedPlus-------------------------------------------- 75 9. Findings & Suggestions---------------------------------------------------------------------- 76-77 10. Limitations of the study---------------------------------------------------------------------- 78 11. SWOT Analysis of MedPlus---------------------------------------------------------------- 79-80 12. Conclusion-------------------------------------------------------------------------------------- 81 13. Recommendations----------------------------------------------------------------------------- 82 14. Annexure---------------------------------------------------------------------------------------- 83-84 15. Bibliography------------------------------------------------------------------------------------ 85
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Executive Summary
In the project, the nature of study is exploratory whereby the efforts have been made by executing the survey in the malviya nagar , in south Delhi. A systematic as well as well-designed approach has been adopted while conducting the project about market charaterstics. It is followed by methodology which is adopted has been defined with the help of collected data a detailed interpretation about the company has been given there, the company profile is defined covering different type of product devices supplied by Medplus & its competitors like Apollo pharmacy, Religare wellness ,Ashok chemist, Narang Bros pharmacy ,Batra pharmacy & etc. The our target area was the Malviya nagar to facilitate the work and personal interview method was adopted for the collection of the data as a primary source whereas the secondary data was collected from different books, company library and the other business websites. Personal interview was conducted. Data was extracted on the basis of feedback. The analyses was done with the help of the clear graphical representation using pie charts, bar graphs and other graphs. The next step was the most important step for looking at the actual findings of the project and recommend to the company what can be incorporated for the future improvements. According to the data collected, Medplus is the second highest selling brand in this segment among these selected companies. From this analysis, it was suggested that though Medplus is the second highest selling brand in this segment, Medplus medical representatives must maintain good relationship with the customers and the medicine counters. The competitors representatives are much more active in some parts of these area. To maintain the market, it is very necessary to become more active and make the customers and medicine counters aware of the new products as well as changes made in the existing products.
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INTRODUCTION OF THE PROJECT
SIGNIFICANCE OF THE STUDY:-
The project entitled “Competitors’ Analysis and Brand Promotion” with Medplus pharmacy in South Delhi is of great significance for the company. The survey was conducted in the period of May-July, 2012 which provides a number of useful information to the company about the customers, monthly consumption of various customers, sales of the products offered by competitors in the same segment etc. This information is very useful for the company to analyze the overall sales pattern of the concerned brand and knowing about the sales of competitive products in the same segment. All these information will guide the management in making their sales strategy pertaining to South Delhi, which will ultimately contribute in the objective of sales maximization of the company and improve the profits of the company. Further, the study is also useful for future researchers, as it will guide them in their research work pertaining to Market Survey of Pharmaceutical products. Last but not the least, the researcher has gained a lot from the research and acquired a good insight about the subject i.e. market survey in general and market position of the concerned pharmacy retail chain in South Delhi in particular.
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Research Objectives & Methodology
What is Market Research? Market research is the process of collecting and analyzing information about the customers you want to reach, called your target market. This information provides you with the business intelligence you need to make informed decisions. Market research can help you create a business plan, launch a new product or service, fine tune your existing products and services, expand into new markets, develop an advertising campaign, set prices, and/or select a business location. Nature of research A exploratory cum descriptive approach was followed since this involved conducting the survey in which data is collected about the sale of different products to know about the sale of various outlets in South Delhi. It is aimed specially at collecting information from various chemists of MedPlus in South Delhi. Research Design The field survey for the project was conducted through a structured questionnaire for chemists. The questionnaire content mostly close indeed and some open ended question aimed to know about the sale and availability of different products considered in the study. All the data collected is primary data as well as secondary data is used in study. Universe & Survey population The present study is conducted in South Delhi. Survey population is chosen from the universe on the basis of convenient random sampling. About 200 retailers are covered in the survey in South Delhi during study.
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Sample Size & Technique In this, a part of population is selected to serve as representative of the population on which research is carried out. This is necessary because sometime the size of population make it difficult to study its member of the population. In the present study more than 200 is covered in survey allotted area, hence sample size is about 200. The techniques used for choosing sample size are convenient sampling and random sampling.
Types of Market Research
Market research methods fall into two basic categories: primary and secondary. Your research might involve one or both, depending on your company’s needs. Primary research involves collecting original data about the preferences, buying habits, opinions, and attitudes of current or prospective customers. This data can be gathered in focus groups, surveys, and field tests. Secondary research is based on existing data from reference books, magazines and newspapers, industry publications, chambers of commerce, government agencies, or trade associations. It yields information about industry sales trends and growth rates, demographic profiles, and regional business statistics. The bulk of your secondary research now is available on the Internet thanks to the proliferation of sites that provide or sell data about individuals and companies and because most publications now are available online.
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DATA COLLECTION AND DATA RESOURCES
METHOD OF DATA COLLECTION
PRIMARY
SECONDARY
The study is based on primary data as well as secondary data is involved in it. The researchers have conducted a survey and primary data is collected with the help of structured questionnaire filled by the researchers during personal interview with respondents. Research Instruments Structured questionnaire contained close- ended questions and a few open- ended questions, is used as a tool for collection of data. Also there are some secondary data collected by company website, wholesalers, and company’s internal departments. Analysis Patterns In order to analyze the collected data the researchers have used the techniques of Percentage and Ratio analysis with the major drugs of the company which have a competitive market share.
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Using Market Research
Market research allows you to pinpoint a host of key business factors about your market. It can help you identify:
1) Growth trends in your business sector 2) Size of your target market 3) Best location for your business 4) How your business stacks up against the competition 5) Factors that influence buying decisions 6) Degree of demand for your product or service
It also can reveal key information about your customers and prospects, including: 1) Their demographic profile 2) The types of features or special services they want 3) What they like and dislike about your product or service 4) How they use your product or service
How often they buy and how much they will pay for your product or services. Once you analyze the results of your market research, you'll be in a better position to create a focused business plan, develop a targeted advertising campaign, set competitive prices, select a new business location, or take other steps to grow your company.
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The primary objective of the study is to analyze the competitive strength of different products of different companies in pharmacy retail segment.
Primary objectives: 1) To understand the sales of Medplus & its competitors. 2) To find out which factors have influence on sales. 3) To create brand awareness of Medplus among customers. 4) To find out solution to increase the sales of Medplus. Secondary objectives: 1) To find out which company is ahead of Medplus in sales. 2) To understand the supply chain of Medplus. 3) To get an industry overview. In order to achieve the above objective the study is divided into following sub-objectives:1) To find out the availability of different products in given four molecules of different companies. 2) To find sales volume of different types of products. 3) To compare of sales volume of different products in the same molecule and draw out their competitive strength. 4) To analyze the factors responsible for product for their high and low completive strength. 5) To find out problems regarding company products and services.
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Research Methodology The title of the project is “Study of Competitors & Brand promotion”. In order to fulfill the objectives a considerable amount of primary or raw data was needed. It was found necessary to conduct a direct market survey to understand the sales of Medplus & its competitors. Primary data were collected by visiting medicine counters ( chemists & druggists shops ) located in different places. This study is necessarily based on the limited knowledge and little practical exposure the constraints of resources and time have further imposed limits to the study boundaries. The respondents are very busy and could not afford more time to answer. Data resources Secondary data: Secondary data were collected from different websites, magazines, company brochures and customer’s review. Primary data: It has been collected by forming a proper questionnaire. Questionnaire is a systematic and structured manner of collecting data for conducting experiments. The nature of the questionnaire is very inductive and fundamental. It has been kept in a proper framework to make it clear to the customers. A sample questionnaire has been attached in the report. Primary data can be collected in the five main ways: a) Observation b) Focus groups c) Surveys d) Behavioral data e) Experiments
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Among these, “Survey Method” was selected to collect the primary data. More than 40 medicine counters were visited & collected the required data relevant to this project. Apart from this, daily minimum 50 houses were visited & an array of questions was asked by market survey and then collected the required data regarding the choices and options of purchasing medicines from Medplus. Type of Research: As far as this project is concerned, it is descriptive type of research work. The study was presented as a “Depth interview”. This is an unstructured, direct, personal interview in which a single respondent is probed by a highly skilled interviewer to uncover underlying motivation, beliefs, attitudes, and feeling on the topic. Research Instruments: a) Questionnaire b) Personal interview “Personal interview” method was chosen for this project. According to the requirement, it could be most appropriate to get data from a customer. Personal interview was taken. Questions were asked according to the situation to get the data as early as possible because only 5 to 6 minutes were available from the busy customers.
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Introduction to the industry Overview of Retail Pharmacy in India The Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent annually. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. Playing a key role in promoting and sustaining development in the vital field of medicines, Indian Pharma Industry boasts of quality producers and many units approved by regulatory authorities in USA and UK. International companies associated with this sector have stimulated, assisted and spearheaded this dynamic development in the past 53 years and helped to put India on the pharmaceutical map of the world. The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. It is an extremely fragmented market with severe price competition and government price control. The pharmaceutical industry in India meets around 70% of the country’s demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There are about 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units).These units produce the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations.
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BRIEF SUMMARY MARKET SHARE
The Indian pharmaceutical market is one of the fastest growing markets in the world. With a current valuation of approximately USD 11 billion, it is likely to be valued at USD 20 billion by the mid of this decade.
3%
Ranked thirteenth in terms of value, and fourth in terms of volume, it is estimated to be ranked amongst the top ten markets, by 2015 Retail pharmaceutical sector in India is highly fragmented, and the unorganized channel of pharmaceuticals currently dominates this space commanding over 97% of the total market share The total retail pharmacy market has been growing at an average of 18% per annum over the last few years, and is anticipated to grow by even higher numbers in the future
97 Organised sector
Organised retail pharmacy however, as a subset, has been growing at an average of 25%, and is expected to grow between 35 – 40% in this next decade
Unorganised sector
Organised Retail Pharma Growth 100 90 (millio m)
The sector currently has nearly 15 players serving through an aggregate of 12000 stores across the country
U S D
Both, the number of players and the total stores in operations shall increase with the increase in investments in this sector Analyst’s consensus suggests the retail pharma sector would witness investments in excess of USD one billion over the next few years
80 70 60 50
86 61 44
40 30 20 10 0 2010
High margins of 25-35% make the retail pharmacy a very lucrative business in India With increasing consciousness and disposable incomes, the organized pharmacy business shall experience plenty of opportunities for growth.
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2011 (E)
2012 (E)
KEY GROWTH DRIVERS: Key drivers for growth in the Retail Pharmaceutical industry in India have been identified as: 1. Aggregate growth in the Indian pharmaceutical sector
Indian pharmaceutical market has been described as ‘Resilient’ and ‘High Yielding’
Emerged as one of the highest defensive plays during the recent US subprime recession
Analysts view the journey ahead for Indian pharmacy on a truly optimistic note, and base their opinions on:
A. Increase in the growth rates of the Domestic Pharma industry
The industry over the last twelve months grew by a little over 20% as against 11.2% in the previous year Pharma sector in developed countries experienced growth rates of 5-6% during 2010
% Growth Of Markets
35 30
30
25 20 15
25
20 11
10 5 0
8
7
5
2009
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2010
2011 (E)
Developed Countries
India
6 2012 (E)
Indian Pharmacy market is valued fourth in terms of volumes and thirteenth in terms of value Expected to multiply manifold by the mid of this decade, clocking the highest CAGR of 12.8%, the Indian pharma market shall experience the highest volumes.
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Global market valuations of Pharmacy Markets 444 450
USD (billion)
400 350 300
248
250 200 150 100
31
38
19
32 13
50 0 USA
Germany
UK
38
China 2005
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2015 (E)
20 9
Brazil
7
15
Turkey
20 6 India
B. Government Stimulus Government of India views growth rates for the domestic pharmaceutical industry more optimistically Its vision 2015 statement indicates a CAGR of over 18% during the next decade Recently announced setting up of a venture fund that shall aim to infuse another USD 5 billion in the Indian pharmaceutical sector through industry players May open the FDI option for the retail sector in India
GOVERNMENT INITIATIVES VENTURE FUND
VISION 2015
FDI IN RETAIL
C. Attractive Sector Valuations Valuations for pharma continue to be attractive The sector trades at a P/E of 17.9x FY2010 and 16.3x FY2011(E) Large Caps Pharmaceutical companies trade at 18-20x FY2010 earnings; reflecting a 1030% premium to the broader market Mid Cap companies are trading at 8-14x FY10 earnings D. Increased contribution to country’s GDP The pharmaceutical sector currently contributes to about 2-3% of India’s GDP Increase in healthcare spending, Increased medical tourism in India, clubbed with Greater levels of investments, shall grow the total contribution of this sector to an estimated 8% of the country’s GDP by 2015 [21]
Increasing contribution to GDP 9.00 8.00 8.00
% Contribution to GDP
7.00 6.00
6.58
5.00
5.40
4.00 3.00 2.00
4.44 3.00
3.65
1.00 0.00 2010
2011(E)
2012(E)
2013(E)
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2014(E)
2015(
Thus, given the above facts, estimates and the sector’s healthy performance on the stock index during 2010, next decade certainly spells optimism for the Indian pharmaceutical sector More so, as the sector grows, the organized retail division is bound to scale unprecedented levels
Index Values
7,000.00 6,000.00 5,000.00
6,433.00 5,597.00
5,344.00
4,912.00
6,734.00
4,000.00 3,000.00 Jan-10
Mar-102
Jun-10 HCI
Sep-10
Dec-10
SENSEX
2. Increasing Domestic population India’s current population equals 1.16 billion Demographers expect India's population to surpass the population of China by 2030
Billion
Increase in population would call for higher investments and development of the pharmacy sector in India, which in turn implies growth in the retail pharmaceutical sector, more specifically the organized channel
1.6 1.5 1.4 1.3 1.2 1.1 1
1.34
1.40
1.37
1.33 1.16
2010
1.43 1.43
1.53 1.46
1.24 2015 (E)
2020 (E) India
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China
2025 (E)
2030 (E)
3. Higher Disposable Incomes India, an emerging economy is currently experience a growth in per capita disposable incomes Average household disposable income in India, during the 20 years prior to 2005, doubled to more than 100,000 rupees As a higher percentage of the population turns educated, the income levels would subsequently rise; which would continue increasing the Indian consumer’s consciousness and spends on wellness products
India's Increasing Disposable Incomes (USD billion) 984.00
2008
1,075.00
1,110.11
2010
2012(E)
1,146.37
2014(E)
1,183.82
2016(E)
Indians over the last two decades, increased the percentage allotment on health products from a mere 8% to a whopping 20%. Improving lifestyles shall further drive this number to greater levels Current % expenditure on Health Products
Projected % expenditure on Health products
8%
20%
80%
92%
Health products
Others
Health products
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Others
4. Changing Diseases Profiles Coupled with economic growth, India is witnessing a transition in the disease profile of its citizens As per WHO (World Health Organization), India shall have the highest number of cases relating to lifestyle disorders in the near future
LIFESTYLE RELATED DISORDERS
CARDIOVASCULAR DISEASES
DIABETES
In addition to the traditional health risks faced by the country, it shall also witness a new class of risks originating due to physical inactivity, diet related factors, and tobacco and alchohol related health hazards Changes in the disease profiles would only lead to an increase in demand as well as the consumption rates of pharmaceticals Given the improving conciousness amongst indian consumers, improved demands would only call for a higher demand for organised retail pharma stores
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OBESITY
5. Changing Attitudes Increased consciousness towards health and wellness, Rising affordability and Willingness to spend more on fitness is the mantra amongst the new age Indian consumer Such a change only spells tremendous opportunities for the growth of Consumer Wellness Business Given this attitude, and the overseas trend of the pharmacy sector transitioning from ‘Sick care’ to ‘Heath care’, India too shall over time stand on the same ground
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CONSUMERS PUSH OF INCREASING CONCIOUSNESS & BUSINESS’ PUSH OF INCREASED CARE SHALL BOOST THE ORGANISED RETAIL PHARMACY INDUSTRY
INCREASING CONSUMER CONCIOUSNESS
GROWTH OF ORGANISED RETAIL PHARMA BUSINESS
“SICK CARE” TO “HEALTH CARE”
“HEALTH CARE”
6. Attractive Margins Prices of essential drugs in India are controlled Inspite of existence of such controls, high margins of 25-30% prevail in the retail pharma segment 7. Growth in the OTC segment OTC products are those that do not require a prescription so as for a store to sell it Growing consciousness amongst consumers has led to an increase in the sale of such products [27]
8. Government regulations Government currently does not permit FDI in the retail segment in India. However, 100% FDI exists in the pharmaceutical sector Opening this sector for Foreign investments shall certainly enhance the growth prospects
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MAJOR PLAYERS IN THE ORGANISED RETAIL PHARMA INDUSTRY APOLLO PHARMACY DESCRIPTION
Division of the Apollo Hospitals enterprises – Asia’s largest healthcare Group India’s first and largest branded pharmacy network Over 1000 stores serving 24 hours daily First pharmacy store opened in Chennai in the year 1983 Operating in 17 states across India Provides genuine medicines from leading manufacturers Pharmacy outlets manned by qualified and trained pharmacist
VALUE ADDED SERVICES
Personalized pharmacy – refilling services Free health camps Toll free Helpline services Free health insurance on purchases over INR 6000 in a year Health newsletters 24 hours store operations
TIE UPS
Owned Hospitals ITC E-Choupals Godrej Aadhar
STORE FORMATS
Shop in Shop Hospitals High Street Stores
PRODUCT RANGE
PHARMACY ANTI CANCER DRUGS HEALTH CARE SURGICALS & DISPOSABLES
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GUARDIAN PHARMACY DESCRIPTION
Six year old retail chain in India offering Pharmacy, Wellness, Health and Beauty products Currently serves through 230 outlets Aims to have 400 operational stores by 2012 Has presence in 26 cities, spread across North, East and West India Stores have an international look and feel Stores managed by professionally trained pharmacists
VALUE ADDED SERVICES
Advisory services on drugs and their usage Maintain record of customer’s medicine requirements Guardian Xtravalu cards: Help earn points every time a customer shops Monthly health magazine: Guardian Health Chronicle Senior citizen discounts: 10% discount on medicines and an additional 1% discount on prescription medicines Free health Check up camps Community service: Provide cut strips of medicines to NGOs Online shopping option
TIE UPS
Individuals Corporates Retailers
STORE FORMATS
High Street stores Malls Neighbourhood stores
PRODUCT RANGE
PRESCRIPTION & OTC FOOD SUPLEMENTS SKIN CARE SELF DIAGNOSTIC
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HEALTH & GLOW DESCRIPTION
Joint venture in India between Dairy Farm International holdings ltd. of Hong Kong and Arko ltd Headquartered in Bangalore Largest organized health and wellness player in South India Currently has 65 operational stores across four cities Bangalore, Hyderabad, Chennai and Mumbai Aims to have over 200 stores operational in the near future
VALUE ADDED SERVICES
Drug advisory services International ambience Well qualified & trained staff for specialist care Home Delivery Gift coupons
TIE UPS
Individuals Corporate Retailers
STORE FORMATS
Express stores Concept stores Malls Hypermarkets Supermarkets
PRODUCT RANGE
PHARMACY COSMETICS HERBAL CARE FRAGRANCES
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RELIGARE WELLNESS DESCRIPTION
Part of the Religare group, which amongst other business interests carries the ‘Fortis’ brand Pioneering endeavor within India’s healthcare industry putting health solutions on the retail map. Incorporates setting up of a Pan India World Class Retail Network of health stores that would provide comprehensive solutions under one roof Hopes to have a chain of 1000 complete health stores all across India covering 400 cities by 2012 Stores managed by professionally trained employees
VALUE ADDED SERVICES
SRL Collection center Health food & Supplement advisory Ayurveda & Homeopathy advisory Customer loyalty programs: points on purchase Free Home delivery 24 hours operational stores
TIE UPS
Individuals Hospitals Corporates
STORE FORMATS
Hospitals Company owned stores Franchisee stores
PRODUCT RANGE
PRESCRIPTION & OTC FMCG & FMHG DIAGNOSTIC KITS PATHOLOGY COLLECTION CENTRE
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MEDPLUS DESCRIPTION
Established in the year 2006 with the aim of eliminating the risk of consumers purchasing fake drugs First store opened in Hyderabad in February 2006 Presently serves through over 1150 pharmacy stores in five states covering 98 cities and towns in Delhi NCR, Orissa, Andhra Pradesh, Maharashtra, West Bengal, Karnataka, and Tamil Nadu Owns India’s first exclusive hospital pharmacy chain – RiteCure Launched state-of-the-art diagnostic lab services which can aid in the prevention, detection, or management of a wide range of illnesses Guided by three themes - quality, convenience, and low prices Market share: 30% of the organized retail pharma market
VALUE ADDED SERVICES
Eleven integrated health centers Community Care initiative: Help reduce the pain of finding a good doctor Strive to Ensure Genuine medicines, accurate lab tests, and experienced Doctors Points based program: accumulate points on purchase which can be redeemed for gifts at a later stage Convenient locations Discounts on medicines, lab tests Free lab test vouchers on purchase of medicines
TIE UPS
Retailers
STORE FORMATS
High street stores Shop in Shop
PRODUCT RANGE
PHARMACY LAB SERVICES CLINICAL SERVICES HEALTH ADVISORY
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HIMALAYA HEALTHCARE DESCRIPTION
Part of the Himalaya drug company that was founded in 1930 Specialises in extending only Ayurvedic products to consumers Serving across 71 countries Converted Ayurveda’s herbal tradition into a complete range of proprietary formulations dedicated to healthy living and longevity
VALUE ADDED SERVICES
Online purchase option Global product delivery model Monthly contests: ‘Himalaya Babies of the month Contest’ Toll free phone number for Ordering within India Personalised messages for gifting Himalaya products Exhaustive Ayurveda knowledge bank on website
TIE UPS
Individuals Manufacturers Retailers Doctors
STORE FORMATS
Shop in shops Online purchase options High street stores
PRODUCT RANGE
PHARMACY PERSONAL CARE ANIMAL HEALTH HEALTH CARE
[34]
TRUST PHARMACY DESCRIPTION
Retail drugstore/pharmacy chain, conceptualized on the foundation of consumer needs; everything from medicines to preventive care, specified medications to community health camps Bangalore's largest walk-in one-stop drugstore - a pharma brought to perfection with its drive to provide for, and its dedication to consumer service. Single largest Retail Chain of organized Medical Shops in Karnataka Over 80 stores in Bangalore and Chennai Over 20,000 stock keeping units
VALUE ADDED SERVICES
Free height and weight check ups Free health camps for diabetes, blood pressure, bone density, dental and eye care Weekly consultations with a professional dietitians 24 hours home delivery Monthly offers on consumer goods Offers 1st of its kind ‘Trust Credit card’ for trust customers in association with Axis Bank
TIE UPS
Hospitals Sri Chandanmal Boathra Charitable Medical Centre, providing free medical care for the poor I-mint so as for customers to earn points on every purchase
STORE FORMATS
High street stores Concept stores Shop in shops
PRODUCT RANGE
OTC FMHG FMCG DIAGNOSTIC KITS
[35]
DIAL FOR HEALTH DESCRIPTION
An ISO 9001:2000 organisation, and headquartered in Ahmedabad, has set up several professionally managed pharmacy stores in Mumbai and Pune Established so as to do away with the service-gaps prevalent in the Indian retail pharmaceutical market ‘Good Purchasing Practices’, whereby the company purchases drugs directly only from wholesalers who have been authorized by manufacturing companies of repute Started operations in from Mumbai in May 2001 Presently 10 stores in aggregate located in Mumbai and Pune. The company has strategic expansion plans
VALUE ADDED SERVICES
Heath desks at all stores Telephonic orders & Home delivery Free routine checkups for regular customers Health camps Detailed healthcare for regular customers
TIE UPS
Physicians Hospitals Individuals
STORE FORMATS
High Street stores
PRODUCT RANGE
PHARMACY OTC HEALTH CARE PERSONAL CARE
[36]
ZYDUS WELLNESS DESCRIPTION
Zydus wellness, headquartered in Ahmedabad, is the Consumer products business division of the Zydus Cadila group Spearheads the group’s presence in the consumer and wellness segment Aims to promote ‘healthy living’ by anticipating the emerging and dayto-day needs in dietetic / health foods The Company is focused on empowering individuals who wish to adopt healthy eating habits and lifestyles. Offers healthier dietary options to the consumers First pharmacy brand to be listed on the Bombay and National stock Exchanges Serves directly in over 850 towns through over 500 strong field force
VALUE ADDED SERVICES
Qualified pharmacists at all stores Health advisory services Regular discounts and offers Large well designed & organized stores Telephonic orders
TIE UPS
Institutions Retailers Chemists
STORE FORMATS
Shop in shop Retail stores High street stores
PRODUCT RANGE
PHARMACY CLINICAL SERVICES HEALTH CARE PERSONAL CARE
[37]
RELIANCE WELLNESS DESCRIPTION
Wellness division of Reliance retail, a subsidiary of Mukesh Ambani led Reliance Industries limited Aims to add value to people’s lives by providing products and services that proactively work to enrich people’s body, mind and soul One of the latest entrants in the retail pharmacy market. Opened its latest store measuring 3100 sq. ft. in Mumbai in July last year. Shall open 1200 stores by 2012-2013 Includes over 8000 stock keeping units (SKU) Well qualified pharmacists and Optometrists available at the store
VALUE ADDED SERVICES
Medication compliance program: Reminder service, which facilitates convenient & on time replenishment of their health related products Wellness Events Local Health directory: Information of local hospitals & doctors for providing convenience to the consumers seeking specialist health services Free cashless accidental insurance upon their level of purchase Wellness Newsletter Reliance One: Common loyalty program enabling customers to earn and redeem points across all Reliance retail outlets
TIE UPS
Individuals Reliance group Employees
STORE FORMATS
Speciality stores Company owned
PRODUCT RANGE
PHARMACY FITNESS EQUIPMENTS HEALTH CARE ALTERNATE MEDICINE
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GLOBAL HEALTHLINE DESCRIPTION
Chain of retail pharmacy stores branded as 98.4o Brand of Global Healthline, promoted by Global Influence group International presence with domestic operations in Delhi and NCR and overseas operations in Europe and Middle East Established in the year 2002 Well educated pharmacists attend to customers walking in the company’s aesthetically beautiful stores 30 stores across the capital region and intends to open near about 400 stores by 2014 Mastered the aspects of pharmaceutical supply chain Centralized distribution process and location specific warehouses to ensure faster delivery of products and merchandise to stores
VALUE ADDED SERVICES
Qualified pharmacists at all stores Health advisory services Regular discounts and offers Large well designed & organized stores Telephonic orders
TIE UPS
Manufacturers
STORE FORMATS
Company Owned Shop in shops Institutions
PRODUCT RANGE
PHARMACY FMCG FMHG OTC PRODUCTS
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REGULATIONS PERTAINING TO RETAIL PHARMACY IN INDIA As stated above, the retail channel of pharmacy currently is not open for Foreign Investments The government has allowed 100% FDI for the pharmaceutical sector, which are tagged as single brand stores Retail pharmacy falls under multi brand stores, FDI options for which at present are still being reviewed by the concerned authorities Pharmacy stores require a license to set up shop as well as to sell drugs in India FDA (Food and Drug administration) grants licenses to those willing to enter the retail pharmacy business Licenses are issued as per the provisions of the Food and cosmetics act, 1940 No license is however required for the sale of Ayurveda products The store format and the area of the store are critical determinants in the retail pharmacy sector As for the area, a minimum carpet area of ten square meters is mandated
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Factors such as the availability of controlled temperatures for storage of drugs, is also one of the primary requirements, as a majority of drugs lose their effectiveness if not stored under the prescribed temperatures We thus see, that all organized retail pharmacy stores discussed in this report have highlighted the fact that they operate through stores that possess proper storage facilities
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M & A/ PE DEALS WITHIN THE RETAIL PHARMA SECTOR 1. Fortis Healthworld acquired CRS health Fortis HealthWorld, promoted by Ranbaxy Group, acquired 90 percent stake in CRS Health, a Delhi-based pharma and wellness retail chain for Rs 15 crore in 2008. CRS is the retailing arm of the SAK Industries Initially branded as Fortis health world and now renamed as Religare Wellness, it currently has over 50 stores. And The group is working towards having a chain of 1000 complete health stores across India covering 400 cities by 2012 2. MedPlus Health Services Pvt. Ltd raised USD 25 million through two Venture Capital firms MedPlus health services in 2007 received USD 5.2 million funding from Mauritius based iLabs management Llc. The balance USD 19.8 million was funded by NEA – Indo US Ventures, a Santa Clara, California based venture fund The funds were utilised to expand MedPlus’ operations across South India, through its partner company Optival Health solutions Both venture funds invested in MedPlus’ wholesale or cash-and-carry arm, as the so-called cash-and-carry is the only retail venture where India permits up to 100% overseas ownership.
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3. Morepen Laboratories Limited acquired Lifespring Morepen Laboratories Limited acquired 95% share in Lifespring, a chain of health & beauty stores from Total Care Pvt. Ltd in 2002 for a consideration of USD 2 million. At the time of acquisition, Lifespring operated six stores in New Delhi.
4. Guardian Lifecare raised USD 22 million in 2008 Guardian Lifecare raised USD 22 million by off-loading about 30% stake to an unnamed private equity in August 2008. Here too, the funds were utilised for store expansions, however in Northern India Through this acquisition and other strategic investments, Guardian Lifecare now aims to Expand to 1000+ stores in 50 cities across 12 states Establish a strong presence in both retail and hospital pharmacies Create over 150 store brands in 14 different categories Become a dominant player in the nutraceutical segment Build preferred relationships with all pharma manufacturers to maximize margins Build a strong national distribution company to support the retail network
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5. LifeKen Healthcare Pvt Ltd acquired Pill & Powder LifeKen Healthcare Pvt Ltd acquired Pill & Powder, a pharmacy retail chain based in Bangalore in October 2006 for an undisclosed amount. Through the acquisition, LifeKen achieved a total of 60 retail stores in India, of which 40 were located in Bangalore alone. 6. Religare Wellness acquired LifeKen Healthcare LifeKen, as given above, which acquired Pill and Powder in 2006, sold a controlling stake to Religare wellness in 2008. Thorough this acquisition, Religare further expanded its footprint in South and West India.
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Company Introduction Overview of the company:-
When Dr. Madhukar Gangadi came across a World Health Organization report indicating that up to 30% of the world's fake medicines originates in India, he knew something had to be done. A medical doctor by training and an entrepreneur by nature, Dr. Gangadi set out to establish a company that would take the risk out of buying medicines. The result was MedPlus.
The first MedPlus pharmacy outlet was established in February 2006 in Hyderabad. Today, MedPlus has nearly 1100 pharmacy outlets throughout India serving over 1,30,000 customers daily. As this pharmacy retail chain grew, so did their vision. MedPlus now wants to be the first call for routine healthcare. This chain has launched state-of-the-art diagnostic lab services which can aid in the prevention, detection, or management of a wide range of illnesses. It also started clinic services, to help reduce the pain of finding a good doctor. They call these services their "Community Care" initiative. MedPlus has almost 35% market share in organized retail pharma sector. The company has an annual turnover of over 700+ crores in this segment.
All MedPlus services are guided by three themes - quality, convenience, and low prices. At MedPlus it is fully ensured that the medicines they sell you are genuine, the lab testing it provide you is accurate, and the doctors you meet with are experienced. MedPlus brings affordability, convenience, and the promise of 100% genuine medicines to the Indian consumer. MedPlus is growing rapidly to provide consumers across India, easy access to quality medicines at low prices. Their locations are just steps from your doorstep and of course will even deliver to your home if you want. At MedPlus, you also enjoy low prices, including a 10% discount on medicines, up to a 30% discount on lab testing, and even free lab testing vouchers with medicine purchases to help you save even more. MedPlus is the fastest growing retail chain of retail pharmacies based out of Hyderabad, India. MedPlus hope that you will enjoy shopping at MedPlus as much as it enjoys bringing
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you their services. Their 65,000 employees are always ready to help you, and they are here for you 365 days per year.
Research and Development It continues to play a vital role in the achievement of company’s goals. It perfectly complements with company’s goals of leadership, quality and growth. From product to productivity, from quality control to cost reduction, Research and Development is helping MedPlus.
Human resource development It is recognized as the assets of any organization at all ranks. It is for the reason that considerable attention is given to Human Resource Development. The development programmers aimed at motivation and enhancing efficiency at all levels.
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Value Plus MedPlus consistently offers you quality service delivered through genuine medicines, wide availability, value pricing and home delivery. It now launches the first of its kind ValuePlus Programme for its esteemed customers. MedPlus offers you a premium range of gifts that translate to an effective discount of 20-30% on medicinal purchases. At MedPlus, you get a discount of 10% on medicines and 5% on general products. Now, you can opt for ValuePlus Points instead of the cash discount. Accumulation and reimbursement of ValuePlus Points will result in extremely attractive gifts for you. And, additional Points can be earned on higher bill amounts. If you choose to shop as usual, you retain the option of choosing a simple cash discount.
For example: If you buy medicines worth Rs 1000/- at MedPlus every week, you avail a cash discount of Rs.100. If you combine your weekly purchases to buy medicines worth Rs 4000/- at one go and opt for the ValuePlus Programme, you earn 400 plus 60 extra Points as bonus for the high bill amount (15%). In total you earn 460 ValuePlus Points that can be reimbursed for a Sandwich Toaster worth Rs. 1095/- (effective discount of 27%). Rupees Spent
Your Additional Bonus Points
Rs. 100 – 999
Get 5% worth bonus points
Rs. 1000 – 2499
Get 10% worth bonus points
Rs. 2500 – 4999
Get 15% worth bonus points
Rs. 5000 – above
Get 20% worth bonus points
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Gallery Of Gifts
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Terms & Conditions
ValuePlus “Programme” membership and its benefits are offered at the discretion of MedPlus Health Services and its affiliates collectively called “MedPlus”. MedPlus has the right to terminate the Programme or to change the Programme without prior notice.
The sale or barter of ValuePlus Points, awards or other benefits is strictly prohibited and may result in the cancellation of points, awards or other benefits.
ValuePlus Points may be redeemed by the cardholder's family members provided that the card associated with the points is presented at the time of redemption.
Gifts will always be available on the programme. However, particular gifts are available only till stocks last.
Membership in the Programme requires customers to fill all the correct information requested in the Programme registration form. Of these items, a customer must provide his/her name, gender, date-of-birth and phone number. Membership and points may be cancelled if the information filled by a customer is found incorrect.
Gifts redeemed for ValuePlus Points cannot be returned or exchanged.
All dispute subject to Hyderabad Jurisdiction only.
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Pharmacy Postions
Pharmacist MedPlus pharmacy is looking for smart, honest, hardworking candidates who have a D. Pharmacy or B. Pharmacy from an approved Institute or University (PCI Approved) with or without experience. Willing to learn with good knowledge of the drugs, able to read the prescriptions, confident in guiding the customers with pleasing manners. The incumbent should be hardworking and willing to make a career in retail pharmacy. Should have basic computer skills, flair in counter sales, confidence in cash handling. Experienced in hospital pharmacy or wholesale/Retail Pharmacy will be an added advantage. Attractive compensation consisting of base salary and performance bonuses.
Pharma-Aid MedPlus pharmacy is looking for smart, honest, hardworking candidates with an experience of at least 2 years in pharmacy or hospitals in dispensing medicines. Pharma aides work closely with pharmacists to interact with customers and assist with drug dispensing. Must have good knowledge of different medicine brands and confidence with customers. The incumbent should have passed 12th standard with good communication skills and pleasing manners. Basic knowledge of computers and confident in handling counter sales. Good in billing process and handling cash. Attractive compensation consisting of base salary and performance bonuses.
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CSA Anyone can join MedPlus pharmacy staff and help deliver medicines, interact with both new and existing customers, and grow our sales. Must be confident in communications, outgoing, and honest. The candidate must have passed 10th standard, be willing to learn, and be hardworking. Attractive compensation consisting of base salary and performance bonuses. Pharmacy Medicines are delicate items. If not produced under proper conditions they will not work effectively. If not stored at the right temperatures they will loose their potency. Unfortunately, it has been found that as many as 30% of the drugs produced in India could be fake or substandard. To make matters worse over 75% of unbranded medical shops do not use air conditioning, despite the Drugs and Cosmetics Act mandating the storage of medicines under 25°C. Why put your health at risk? MedPlus is different. MedPlus was started to make it safer for consumers to purchase medicines. source and sell only reputable medicines from the most trusted manufacturers. Every one of our 600 outlets utilizes air conditioning and refrigeration units to ensure that your medicines stay factory-fresh and work as expected.
even employ highly trained
pharmacists to provide you great customer care. MedPlus did not stop with just making your medicines safer. MedPlus also made them cheaper and more convenient to purchase. MedPlus sell all of our medicines at a 10% discount on MRP. MedPlus also offer free home delivery, free healthcare camps, and numerous additional savings opportunities. And since MedPlus have 600 neighborhood outlets and carry over 25,000 medicines, there is likely a MedPlus near you with all the medicines you need.
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Drug Sourcing
Quality medicines start with quality ingredients and quality manufacturing processes. MedPlus sell medicines from only the most reputable manufacturers - companies that are well known, companies that have a long track record, and companies that manufacture to world-class standards. Why is this so important? With approximately 20,000 drug manufacturers in India, telling the difference between a good company and a substandard one becomes difficult for consumers. To cut costs, unethical manufacturers produce drugs in plants which do not meet approved standards, reduce the amount of active ingredient in a medicine, and add ingredients which should not be in a drug to begin with. The resulting lack of purity and efficacy in a medicine can cause serious health risks to a consumer. Unfortunately, in many instances these substandard medicines are sold with the full knowledge of the retailer. Seeking to make a little more profit, the retailer accepts these medicines and passes them on to unsuspecting consumers. The retailer may even pay doctors for referring patients who have been prescribed these questionable medicines. MedPlus never gamble with your health. Before any company's product makes it onto our shelves, the company is checked by MedPlus and is only added after MedPlus are comfortable with it. For the same reason, MedPlus insist that all customers take a computer generated bill from us. This ensures that you can never be sold a medicine that was not approved by the company. And MedPlus does not pay doctors for pharmacy referrals.
Drug Storage
Reputable manufacturers take great pains to ensure that your medicines are manufactured in ideal conditions and to high standards. Unfortunately, those medicines can then be sold at retail chemists who do not take the same care to store the medicines in an ideal environment. Hot and humid weather can spoil the medicines at a typical chemist rendering the medicines useless long before its expiry date. Since this spoilage is not clearly visible on the medication consumers may purchase an ineffective medicine without notice. To combat this issue, India's Drug and Cosmetics Act mandates that most drugs should be stored under 25C. Perishable medicines, such as insulin, are even more sensitive to [52]
temperature and must be kept in cold storage. However, very few medical shops have the equipment necessary to maintain the climate controlled environment necessary to keep medicines "healthy". MedPlus is committed to protecting the quality of your medicines. Every MedPlus outlet is fully air conditioned. Fans distribute this cool air throughout the shop to ensure every medicine is equally cared for. Refrigerators are also used in every outlet to house injections and live vaccines.
Supplier Opportunity
Medicines are delicate items. If not produced under proper conditions they will not work effectively. If not stored at the right temperatures they will loose their potency. Unfortunately, it has been found that as many as 30% of the drugs produced in India could be fake or substandard. To make matters worse over 75% of unbranded medical shops do not use air conditioning, despite the Drugs and Cosmetics Act mandating the storage of medicines under 25°C. Why put your health at risk? MedPlus is different. MedPlus was started to make it safer for consumers to purchase medicines. MedPlus source and sell only reputable medicines from the most trusted manufacturers. Every one of our 600 outlets utilizes air conditioning and refrigeration units to ensure that your medicines stay factory-fresh and work as expected. MedPlus even employ highly trained pharmacists to provide you great customer care. MedPlus did not stop with just making your medicines safer. MedPlus also made them cheaper and more convenient to purchase. MedPlus sell all of our medicines at a 10% discount on MRP. MedPlus also offer free home delivery, free healthcare camps, and numerous additional savings opportunities. And since MedPlus have 600 neighborhood outlets and carry over 25,000 medicines, there is likely a MedPlus near you with all the medicines you need.
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Lines of Strategic Business Units(SBU):1) 2) 3) 4) 5) 6)
Retail pharmacies Hospital pharmacies Clinics Labs MedplusBeauty.com My Smart Shop
Path Lab Sometimes the best way to know what’s going on with your body is to know what’s going on inside your body. That’s where MedPlus Pathlabs comes in. We offer state-of-the-art lab testing so that you can prevent, detect, or manage disease. MedPlus can collect your lab sample and deliver your report at many of our pharmacy locations as well as at any of our clinics. Or, if you wish, we can even collect your sample from the comfort of your home. When we receive your sample, we immediately get to work on processing it so that you can get your result fast. Our central processing lab is ISO 9001 certified, and we utilise advanced fully automated equipment to ensure that your results are accurate – always. Of course, it wouldn’t be a MedPlus service if we didn’t also save you money. Tests from MedPlus are an average of 30% less expensive than other national pathology labs and corporate hospitals!
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Accuracy Did you know that a majority of pathlabs across India use outdated (manual) sample processing techniques and low quality equipment? This makes the results from most unbranded labs highly unreliable. Now, you have a branded alternative to unbranded healthcare - MedPlus Pathlabs. As with all MedPlus services, MedPlus Pathlabs is committed to quality. When you choose MedPlus for your diagnostic lab needs, you are choosing uncompromised accuracy. The following are just some of the ways MedPlus ensures the accuracy of your tests:
The use of fully automated equipment used by the best labs in the world.
ISO 9001 accreditation.
Highly systematic sample collection.
Partnerships with the most reputable suppliers.
Well-qualified and highly experienced staff.
Rigorous quality management system.
Clinic Finding a good doctor can be a real pain. Not so at MedPlus. Our neighborhood clinics located near you provide you expert professionals, modern facilities, and consistent services. All at a price that won't give you a headache. MedPlus Clinics house doctors, pathlab testing, and a pharmacy all under one roof, so that your health can get all the attention it needs at one place. MedPlus Clinics are designed to provide you the doctors you need most to diagnose routine illnesses, prevent disease, and manage chronic ailments. You will find general physicians, pediatricians, and gynecologists, in addition to specialists such as diabetologists and cardiologists. Nurses are also available throughout the day to administer vaccinations and first-aid as well as answer your general health queries. Additionally, because MedPlus believes education is at the centre of good health, all MedPlus Clinics offer frequent health seminars on a wide range of topics. So why go far? Your new family clinic is just next door.
For Patients
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At MedPlus Clinic, preventing disease and maintaining good health for you and your family is our primary focus. We offer a comprehensive range of general and specialty medical services. Some of our current medical services include: General Physician Services Acute diseases are typically those of rapid onset, brief in duration and often times severe in nature. Our doctors are able to provide treatment and management of non-life-threatening acute diseases including injuries, exacerbation of asthma, chest and throat infections, fevers, animal bites and many more. Following the acute care management of the illness or injury, patients are followed up by our doctors in a primary care non-urgent setting. Blood, urine and X-ray tests can be arranged immediately as can ECG's. Chronic Diseases are illnesses that require ongoing medical supervision and often develop and progress over a long period of time. Examples of chronic illnesses are Hypertension, Diabetes, Heart diseases, Kidney Disease, Gastrointestinal diseases, Emphysema, Asthma and other pulmonary diseases, and arthritis. At MedPlus, our doctors manage and treat all different chronic diseases no matter how simple or complex. At times, if necessary, different specialty doctors may be consulted. Continuity of care in the community is our goal at MedPlus. Establishing an on going physician-patient relationship of trust, confidentiality and respect is what we thrive on. Health Screening and Preventive Service Preventive Care is a continuing process between the patient and the physician. One of the most important things you can do for your health is schedule regular checkups. If you have chronic health problems or special needs, you may need to be seen more frequently. Good health care is the mutual responsibility of the doctors who take care of you as well as yourself. You need to be an active participant in managing your own care by asking questions to make informed decisions.
Comprehensive Diabetes Care Diabetes occurs in 16% of the population in metro India. People with Diabetes have a risk of cardiovascular disease 2-5 times greater than non-diabetics. People with Diabetes have a high risk of kidney problems. It is the most common cause of amputation of the lower limbs. It is also a leading cause of blindness and visual impairment. [56]
Investing in prevention and early detection of diabetic complications can effectively reduce the human and economic costs of diabetes. At MedPlus Clinic, we are committed to providing a comprehensive and caring service for all our diabetic patients. Our doctors will take the time to educate you about the disease, teach you self monitoring of blood glucose, and conduct regular check ups and lab tests to prevent complications. Our nutritionist will educate you about diet and lifestyle choices. Vaccinations & Travel Services Immunizations, also called vaccinations, are given to protect you from diseases. Each vaccine contains small amounts of a weakened disease organism or its products, which usually are given by injection. Your immune system develops antibodies to fight the disease, which then recognize and attack the organisms if you are exposed to them in the future. Sometimes an immunization does not completely prevent the disease, but it will significantly reduce its severity. Some immunizations are given only once, while others require several treatments over a period of time. The standard immunization schedule begins at birth. Immunizations are spaced throughout the baby’s first 18 months; some are repeated between the ages of 4 and 6. Few immunizations are needed after this age, those given yearly (such as a flu shot) or on a regular basis throughout adulthood (such as a tetanus shot). Immunizations are also needed for adults who don’t have a clear documentation or recall of childhood vaccinations and for specific occupations or travel purposes. Occupational & Pre-employment Health Screening MedPlus Clinic has resources to offer a wide variety of occupational health care services. The use of regular physicals and drug screenings aid companies in the prevention of absenteeism and employee attrition. Since good quality personnel choices are crucial to a company’s success and profitability, at MedPlus, we offer pre-employment physical examinations which demonstrate an employee’s potential to productively perform in a given job or work environment. Our pre-employment physical examination includes a screening questionnaire, complete physical exam by a doctor, and laboratory tests based on the risk factors and disease conditions of the employee. We will work with you to set appointments that will fit your schedule.
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Child Health Services Our doctors provide general paediatric service. In addition, we provide comprehensive well child check ups and strongly advocate these for all newborns. Well child check-ups are important for everyone from birth through age 5. Don't take good health for granted. Well child care is important so problems can be found early. Even if your children appear healthy, they still need regular checkups. Well, Child Checkups usually include the following:
Head to toe physical examination
Developmental Screening
Vision screening
Hearing screening
Anemia screening
Blood pressure screening
Urinalysis
Immunizations
Health education
Specialty Services
At MedPlus Clinic, we offer several specialist services like cardiology, nephrology, diabetology, orthopaedics, surgery, psychiatry, and many more. These vary by location. MedplusBeauty.com is India's preeminent online beauty retailer offering a wide and diverse selection of over 15000 beauty and personal care products across various categories and hundreds of brands. It is part of MedPlus, India's fastest growing healthcare retail chain.
At MedplusBeauty.com, our goal is to provide you a convenient, hassle free destination for all your beauty and personal care needs. You can choose from your everyday staples to some of the most luxurious beauty brands worldwide. Since all our products are sourced from reputed companies, we guarantee that all our products are original, whether domestic or imported. [58]
OPERATING STATES: MedPlus pharmacy is currently operating its retail business in 7 states. ANDHRA PRADESH TAMILNADU KARNATAKA MAHARASHTRA WEST BENGAL ODISHA DELHI
Now Expanding Aggressively( in two states ):
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Corporate Profile
Our Leadership
Dr. Madhukar Gangadi Founder & Chief Executive Officer Dr. Gangadi is responsible for the overall direction of MedPlus and its strategic relationships with key partners, suppliers and customers. A serial entrepreneur, Dr. Gangadi's previous ventures have primarily involved launching and growing successful IT outsourcing organizations. Dr. Gangadi is a seasoned executive who has taken a "hands on" approach to leading his companies. With his prior companies, Dr. Gangadi has been involved in nearly all aspects of the business, including sales, marketing, fundraising, and recruiting.
Dr. Gangadi has an MBBS from Kurnool Medical College and a MBA from the Wharton School of Business. As both a medical doctor and successful entrepreneur, Dr. Gangadi brings experience and knowledge of the healthcare business to MedPlus.
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Dr. Bhaskar Reddy MBBS, FRCS ( Edin University ) Chief Operating Officer (South) Director Apart from his professional experience as a surgeon, Dr. Reddy has valuable experience in the field of Education and is specialized in the arena of managing people, both at education and corporate level. He founded and successfully ran a Junior college known for its academic excellence. While he was at the helm, the college secured several state ranks at the intermediate level. He is well versed with various programmes aimed at improving the effectiveness of learning/teaching and Training. Dr. Reddy is using his background to oversee store openings throughout AP and Karnataka, while leading all of the company's training, recruitment, and retention efforts.
Mr. Atul Kumar Agarwal Chief Financial Officer Atul Kumar Agarwal is the Chief Financial Officer of MedPlus and has more than two decades of experience in Finance and Accounting in organizations like Tata Steel, PT Texmaco Group (Indonesia), Genpact, AB-InBev India. He has worked in the areas of Business and Corporate finance that included business planning, capital structuring, budgeting, creation of business support system (ERP implementation), corporate funding , working capital management, M&A, financial process outsourcing. Atul has hands-on finalization experience of accounts, financial audit, cost accounting, building cost systems and activity based management. Amongst other activities, he has been responsible for HR and commercial activities. He has chaired performance committees and advised boards on matters of corporate performance and governance. Besides being a permanent invitee on boards of various organizations, he also worked as CFO and member of board of Ab-InBev (India Operations) group entity.
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A B.Com graduate from Calcutta University, Atul is a qualified Management Accountant (Member of the ICWAI) and is also a Certified Management Accountant (Member of Institute of Management Accountants – USA). He has done the Senior Management program (SMP) from the Indian Institute of Management, Calcutta and is an alumni of the Institute.
Dr. Surendra Mantena – Chief Operating Officer( MedPlus Pathlabs ) Mr. Murali Krishna K.S. – Director Mr. Srinivas P – Chief General Manager Mr. Sudhakar Rao I – CGM(HR)
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LITERATURE REVIEW
The research undertaken on market survey of Medplus Brand in South Delhi is the first research of this kind in the particular segment and no existing literature is available on the concerned topic. But the researcher has reviewed the overall market position of Medplus Ltd. in Indian Pharmaceutical Retail industry and found that Medplus has gained 35% share in the domestic market at the retail level, with sales of Rs. 700 crore annually, Medplus growth prospects are extremely attractive due to introduction of many new and genuine products. In medicines, the antibiotics are the No. 1 segment in India. In fact there are a lot of antibiotics, which come under the star segment and 26% of the revenues come from Antibiotics for Medplus, in fact asthmatics are their main product contribution. Objectives of Research:This case study is related to Medplus Healthcare Limited, a leading Indian Pharmaceutical firm. Case study is for teaching purpose fit for audience like Management Graduates & Working Executives in courses related to Merger & Acquisition, Corporate Strategies, Strategic Management and Strategic Financial Management. Objective of the study is to provide platform to ponder: 1. What is long term strategy of firm to be global leader? 2. What are the challenges before firm in implementing strategy? 3. Why a mid-sized firm has been acquired in pharma retail chain?
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Analysis and Interpretation
In this section, analysis of market survey carried out in four different chemist shops of Medplus
located in four different places
in South Delhi
is
recorded
and
also a
comparative analysis of sales of medicines among these outlets is conducted carefully to analyze the market position of Medplus in South Delhi. Along with this survey, a comparative survey of Medplus stores with other nearby chemist shops which are its competitors has been carried out. Moreover to promote this brand and thereby increase the sales of Medplus, 15 free health check-up camps have been organized by Medplus in 15 different locations in Malviya Nagar in South Delhi. In these camps, two kinds of activities i.e. Diabetics and Blood Pressure level were checked. Name of four stores of Medplus in South Delhi where intensive as well as extensive market survey were conducted carefully : 1) 2) 3) 4)
Malviya nagar store Satyaniketan store Lajpat nagar store Bhogal store
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Analysis of Average Sales of MedPlus at different locations in South Delhi A. Analysis of sales of Medplus pharmacy in comparision to its competitors in Malviya Nagar:
Sl. no. 1 2 3 4 5 6
Store Name Narang bros. Apollo pharmacy Medplus Religare wellness Batra pharmacy Chawla Chemist
Amount of sales in avg.( Rs) 40,000 25,000 18,000 12,000 11,500 9,000
Pie Diagram of the above table in terms of sales :
Percentage of Sales 8%
Narang bros
10% 35%
Apollo Medplus
10%
Religare Batra pharmacy
15% 22%
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Chawla Chemist
B) Analysis of sales of Medplus pharmacy in comparision to its competitors in Lajpat Nagar:
Sl.no. 1 2 3
Name of the Store Isha madicos Medplus Viva pharmacy
Amount of sales in avg(Rs) 35,000 15,000 8500
Pie Diagram of the above table in terms of sales :
Percentage of Sales 14% Isha Medicos
Medplus
26% 60%
Viva pharmay
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C. Analysis of sales of Medplus pharmacy in comparision to its competitors in Satyaniketan store:
Sl. No. 1 2 3 4 5
Name of store Ashok pharmacy Religare Wellness Viva pharmacy Medplus Pandey chemist
Amount of sales in avg(Rs) 29,000 22,000 15,000 11,000 7,500
Pie Diagram of the above table in terms of sales :
Percentage of Sales Medplus 14%
Viva pharmacy 19%
Ashok pharmacy 38%
Religare wellness 29%
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Brand Promotional Activities There are different Promotional tools which are explained briefly as follows: 1. Advertising: Advertising is any paid form of non-personal communication of ideas or products in the “prime media”: i.e. televisions, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is intended to persuade and to inform. The two basic aspects of advertising are the message(what you want your communication to say) and the medium(how you get your message across). 2. Direct Marketing: Direct marketing creates a direct relationship between the customers and business on an individual basis. 3. Personal Selling: Personal selling refers to oral communication with potential buyers of a product with the attention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyers, but will always ultimately end with an attempt to “close the sale”. 4. Sales Promotion: Sales Promotion refers to provision of incentives to the customer or to the distribution channel to stimulate demand for a product. 5. Public Relations: Public relation is the communication of a product, brand or business by placing information about it in the media without paying for the time or media space directly. Each of the components of the promotional mix has strengths and weaknesses. There are several factors that should be taken into account in deciding which, and how much of each tool to use in a promotional marketing campaign: [68]
1) Resource availability and the cost of each promotional tool Advertising (particularly on television and in the national newspapers) can be very expensive. The overall resource budget for the promotional campaign will often determine which tools the business can afford to use. 2) Market size and Concentration If a market size is small and the number of potential buyers is small, then personal selling may be the most cost-effective promotional tool. A good example of this would be businesses selling software systems designed for super market retailers. On the other hand, where markets are geographically disperse or, where there are substantial numbers of potential customers, advertising is usually more effective. 3) Customer information needs Some potential customers need to be provided with detailed, complex information to help them evaluate a purchase (e.g. buyers of equipment for nuclear power stations, or health service managers investing in the latest medical technology). In this situation, personal selling is almost always required often using selling teams rather than just one individual.
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What we did for brand promotion of MedPlus First we started market research for collecting the data through questionnaire, in which we asked several questions to the people. The motive of the research was understanding the awareness of the people about the medplus pharmacy. After collecting the data we analyzed which pharmacy people refers to buy medicines and why they prefer that pharmacy. For brand and sales promotion we visited various places in south Delhi to analyze the market position and market share of Medplus in compression to its major competitors like Apollo Pharmacy, Religare Wellness, Batra Pharmacy, Viva pharmacy etc. After that we planned to organize free health check- up camps through different promotional activities to attract and aware the people of that particular area about the specific brand Medplus. For that we selected sixteen different locations in South Delhi for promoting the brand and increasing the sales of Medplus pharmacy. First of all, in order to organize camp activity in South Delhi, we were given a relatively large locality named “Malviya Nagar” where MedPlus has a large amount of market share compared to other localities in South Delhi. We approached and met the Counselor of that area as well as President (Secretary) of each society to enquiry about the whole location and identify the segmented target of people in each society. Then we organized sixteen free camps in the sixteen allocated locations in South Delhi. We organized three camps every week in three different locations and the day before organizing a camp per location we visited the specific location where the camp is to be held, searched the whole area, interacted with the people of that locality through a couple of questions related to the promotion of the brand “MedPlus” and then invited each and every member of that particular locality by giving pamphlets where details of the camp were clearly mentioned. In each camp, two kind of activities i.e. measurement of Blood Pressure and level of Diabetes had been carried out by the qualified Medical Representatives requited by MedPlus.
In adjacent figure, a sample of One of India’s largest pharmacy chains Over 1100 stores and growing…
Pamphlet format is shown:
FREE HEALTH CHECK UP CAMP For Diabetic and Blood Pressure
Venue: - E-3/1, opp.to Medplus store, Malviya Nagar Date : - 29th June 2012 Time : - 6.30 AM - 9.30 AM
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Some photos of Free Health Check-up camps organized in different locations are shown below:
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Analysis of Data collection of No. of visitors to the respective camps from different areas of Malviya nagar located in South Delhi: Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Name of the locality Shivalik A block Malviya nagar store Shivalik B-block Bhagat Singh park Hitesh Mehta Park Tikona park Hauz Rani area Amar Shanti Park D.D.A park Block-13 park Geeta Mandir E-8, E-9 block park E-3/1 Park Pragati park E & L block park
Date on which the camp was organized 26/05/2012 27/05/2012 01/06/2012 06/06/2012 08/06/2012 10/06/2012 13/06/2012 15/06/2012 17/06/2012 20/06/2012 24/06/2012 27/06/2012 29/06/2012 01/07/2012 04/07/2012
No. of visitors 40 68 44 106 74 61 71 27 80 84 70 52 73 66 58
No of visitors 120 100 80 60 40 20 0
Pie Diagram of the above table in terms of no. of visitors
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INTERPRETATION OF MARKET SHARE OF MEDPLUS PHARMACY
This part of the project report is about the market share of MedPlus in Various locations in South Delhi area particularly in Malviya nagar. The market share of different locations is calculated with help of conducted survey i.e. according to customer’s responses towards their purchase and knowledge. All the responses given by all the surveyed customers are taken together and the average of their responses are taken and according to that the market share of different pharma retail chains along with MedPlus’s share are calculated. The several pharma retail chains like Apollo pharmacy, Narang Bros and Religare Wellness in this particular segment, MedPlus’s market share is comparatively low and the reason behind it that the advertisement doing by the company is very less. Though MedPlus offers genuine and good quality medicines which are directly distributed to its outlets from the registered pharmaceutical companies like Ranbaxy, Cipla, GlaxoSmithkline, Abbott Laboratories, P & G, Dr Reddy's Laboratories, Sun Pharma Industries, Cadila Healthcare etc. In case of pharma retail chains other than the retail outlets mentioned above, MedPlus company has a good market share on the basis of his good image. Mainly company focuses on all classes of customers of a big society that was also observed during study.
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FINDINGS AND SUGGESTIONS
FINDINGS : 1. MedPlus has third highest market share in the category of various pharma retail chains, which are considered for study in South Delhi region only. 2. The company is providing superior quality products and more value for money than its competitors. 3. Sales of MedPlus’s products are more in urban areas than rural areas. 4. Company is not focusing on small customers, which are present in South Delhi interior can be future customers and still are not tapped by company.
SUGGESTIONS: 1. There is a customer care center and it has to cover a large area, so there is a need for sub-
dealers under the customer care center so that the products can reach to the customers faster. 2. Company should distribute its catalogue more and more, so that its products are more informative. 3. The representatives should be given frequent response for solving the problem. 4. If something found wrong or damaged, it should replace frequently. There should be no delay from company side. 5. Company should quickly replace material, which is unsold for a long time. 6. The number of retailers in South Delhi interior is to be looked with importance as there are large numbers of small customers but they are still to be tapped. 7. The representatives of the company should give more frequent visits to the places. The representatives should take the opportunity to have the scheduled visits to the customers. 8. The company should check the unavailability of any medicine from time to time and immediately order those medicines within a short period of time. [76]
9. The company should also analyze the bouncing package of medicines and examine and then reorder the medicines without any delay thereby should try to give maximum customer satisfaction as customers are the core target of this company for maximizing profits.
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LIMITATION OF THE STUDY
Following are the limitation of the study: 1. The scope of study is limited to SOUTH DELHI only 2. The study is related to period of May –July 2012 3. Response from the respondents may be different from actual view. Respondents might not
disclose the actual view.
4. Collecting information from people during the working hours was also critical. 5. The retailers do not show any interest in filling the questionnaire because they thought that it is not beneficial for them.
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SWOT ANALYSIS
Strengths: 1. Low cost of production. 2. Large pool of installed capacities. 3. Efficient technology for large number of Generics. 4. Large pool of skill technical manpower. 5. Increasing liberalizing of government of government policies.
Weaknesses: 1. Fragmentation of installed capacities. 2. Low technology level of capital goods of this section. 3. Non-availability of major intermediaries for bulk drugs. 4. Very low key R&D. 5. Low share of India in world pharmaceutical production (1.2% of world production but having 16.1% of world’s population) 6. Very low level of Biotechnology in India and also for New Drug Discovery Systems. 7. Lack of experience in International Trade. 8. Low level of strategic planning for future and also for technology forcasting.
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Opportunities: 1. Aging of the word population 2. Growing income 3. Growing attention for health 4. New diagnoses and new social diseases. 5. Spreading point of market is far away. 6. Net therapy approaches. 7. New delivery system.
8. Spreading attitude for soft medication (OTE drugs.) 9. Spreading use Generic drugs. 10. Globalization 11. Easier international trading 12. New markets are opening.
Threats: 1. Containment of rising health care cost 2. High Cost of discovering new product and fewer discoveries. 3. Stricter registration procedure. 4. High entry cost in newer markets. 5. High cost of sale and marketing. 6. Competition, particularly from generic products. 7. More potential new drugs and more efficient therapies.
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CONCLUSION
Total sale of MedPlus pharmacy in the South Delhi region:(Company sale) 15 lakh/- Average monthly (with the growth rate of 22% annually.) There can be various ways through which a business organization can achieve success in the markets. It can be rightly said that it revolves specifically around three parties or more the triangular linkages or the relationship between these three parties determine the success and failure of business organization . In the medium to long run, the domestic pharmaceutical market has increasing prevalence of respiratory segment. The basis of success in any competitive context can, at the most, elemental level commercial level commercial success and commercial success can be derived either from accost advantage or a value advantage or ideally from a combination of both .in other word, the organization with competitive Advantage tends to be cost leader in the industry or a seller of most differentiated product amongst all the players .at last the role of supply chain is very important in dharma industry . Supply chain Manager can provide considerable value to their companies by understanding the customer delivery requirement .The most important thing is maintaining a good relation with the doctors & the druggists .By considering these facts, MedPlus should create its strategies to increase its markets share of the pharma retail segment.
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Recommendations:
i.
The Medical Representatives of MedPlus should visit the doctors more often and try to convince them to prescribe more genuine and superior medicines as well as general products distributed by MedPlus pharma retail chain.
ii.
The updates of the medicines should be sent to the doctors and the medicine counters regularly.
iii.
It is advisable to maintain a good relationship among the doctors and the medicine counters.
iv.
MedPlus may try to decrease the discount on medicines thereby decreasing the cost of medicines to get competitive advantage in the pharma retail chain segment.
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ANNEXURE Questionnaire Customer’s Name
:…………………………………………………………………………………………………………
Location / Address
:………………………………………………………………………………………………………..
Mobile / Phone No.
:…………………………………………………………………………………………………………
Email ID
:………………………………………………………………………………………………………….
(1) Do you purchase the medicines from MedPlus Pharmacy Store? Yes
No
(2) Why are you interested in the above retail brand? Good quality
Good service
Network
Product price
(3) Do you think that Advertisement affects the sale of medicines? Yes
No
(4) Are you satisfied in which of the following factors? Discount policy
Value plus scheme
(5) Do you think that the amount of discount should be lowered from 10% to 20% in order to capture majority of market share? Yes
No
(6) Do you personally expect that all types of medicines and other general products must be available in MedPlus pharmacy store? Yes
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(7) Do the customers face any difficulties to get Medplus products? Yes
No
(8) Do you get updates whenever any change is made to an existing product or a new product is launched by MedPlus? Yes
No
(9) Does MedPlus provide you recent updates about the company’s offers in your mobile phones through Messages ? Yes
No
(10) Do you have anything to share/suggest about MedPlus products & services?
Answer:.…………………………………………………………………………………………………………………………… ......
………….................................................................................................................................... ......
………………………………………………………………………………………………………………………………………… …....
(Thanks for your cooperation)
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Bibliography
Reference books:
(1) Beri G. C., Marketing Research, Fourth Reprint, Tata Mcgraw Hill Private Limited, 2009. (2) Kotlar Philip, Marketing Management, Eleventh Edition, Pearsons Education, 2004. (3) Retail Management: A Strategic Approach, Tenth Edition, Prentice Hall (4) Itkar Sachin, Pharmaceutical Management, Vidyabharti Publication
Reference websites:
(1) http://www.medplusindia.com/ (2) http://www.MedplusBeauty.com/ (3) http://www.news.pharma-mkting.com/ (4) http://www.en.wikipedia.org/wiki/Indian pharmaceutical industry/
Name: -
Rupak Jyoti Neog
Student ID: - D1113SSISBEPGP10091 (KOL-5-CT-1051) Section: -
SC- 2
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