ABCD Pharmaceutical Stores CASE STUDY You already know that medicines are an essential need just like food and water. it's a great Idea to start pharmacy business in India. It is one of the fastest-growing industries in India. Business Opportunity: 1. Pharmacy Store- The pharmacy store is a profitable and interesting business. The pharmacy store is the first step of our entrepreneurial movement. Our pharmacy shop will remain open for 24X7. Generally, 24 hours of medicine shops provide medicines all the time day and night. So, these stores earn more revenue than the medicine stores that maintain an opening and closing time. 2. Online App - Online pharmacy is the most trending business model currently throughout the globe. Actually, the ease of buying makes the business highly successful across the globe/country. What we Need for this setup: a. A Logistics team for supply products. b. A Pharmacist team for medicine & prescription handle and billing. c. An accounting team d. Software and web handling team. e. We have to collect medicines according to orders from the wholesaler. For this investment is little bit more but we can expand our business country wide and can get huge order. 3.Medicines vending machine - We can put our vending machine in the gated community & corporate office where only general medicines (medicines which don’t need prescription) will be available. Market Strategy: 1. Clinic’s Referral: When patient will visit clinic for doctor’s consultation, after consultation, Doctor may suggest patient to take medicines. When patient will collect the prescription from front office during that time, executive will ask if she can place the order for medicine. All medicines are available, and you will get up to 15% discounts on these medicines. And within 4-5 hours the medicines will be delivered at patient’s doorstep. The patient will have options to pay either at the counter or during delivery through COD or Online payment. Moreover, delivery will be free of cost. Deal with ABCD pharma store and XYZ clinic – Delivery charges Rs. 50 will be added in your doctor’s fees. If patient will not order any medicine, then 50% delivery charges XYZ clinic will take and 50% ABCD pharmacy will take. And If they place the order, 2% commissions will be given to clinics. 2. Hospital’s Referral: Some of the hospitals in rural area don’t have their own pharmacy. So, we have to target those locations and open a store there. Whenever medical staff will give the requisition for medicine to the patient relative they will give the instructions that you have to go to that medicine shop for buy those medicines and they can get 15% off on medicines. 3. Senior citizen facility: So many cases in India we can see that only senior citizen people are present in the home. For them sometimes it’s very difficult to visit medicine shops. So, for them doorstep delivery facility will be available with subscription. We have some subscriptions facility which we will discuss later. But for senior citizen there is special subscription which is called ‘Super60’ and the amount is 66 for 2 months (Will deliver the medicine 4 times within 2 months). 4. Discounts: We are here to give you up to 20% discounts. 5. Complimentary offer: You get 100ml sanitizer whenever you buy Rs. 1000 Medicines or above. 6. Design pharmacy better: Drop your prescriptions in the counter and collect tokens. There will be display screen when your turn comes go to the pickup counter. Drop off to pick up time will not be more then 10-15 mins. High Level Pharmacy Design Display for Token NO. Your text here Drop Your Collect Your Prescriptions Prescription s Tv Screens where our pharmacy Ads will display (Including online,vending machine etc.). x just 10 mins Your waiting time is Collect Your Drop Token Feedback EXIT Entrance 7. Customer Retention: Waiting Area We have some special plan for those customer who will be in our system for 2 years and above. We will arrange some medical camps for them where free health check-up will be provided. Health check-up will include Blood pressure, BMI, CBG with free Medical officer consultation. Business Model: 1. Decentralised model- medication management systems that allow pharmacy to store and drugs near the point of use. we will divide into 4 regions. We have 4 warehouses in 4 regions. East Zone, West Zone, North Zone, South Zone. C Warehouse West Warehouse South Warehouse North Hub Hub Hub Hub Store Store Store Store Warehouse East Note: We will have multiple hubs and stores. This symbol ( ) means, ff we have any order which is not available in any zone then we will arrange that medicine from another zone for our customers. For e.g. Customer from south zone wants YYY medicine but that medicine is not available here because that medicine is prescribed by north zone doctor. So, we will arrange that medicine from our North zone warehouse, but we will take delivery charges from that customer. 2. Subscription model- we have some subscriptions facility a. Monthly subscription: Cost Rs. 111/- Facility- Free home delivery and 1 free consultation if you don’t have any prescription for your medicines. b. Subscriptions for 3 months- Cost Rs. 222/- Facility - Free home delivery and 2 free consultations if you don’t have any prescription for your medicines. c. Subscriptions for 6 months- Cost Rs. 333/- Facility - Free home delivery and 3 free consultations if you don’t have any prescription for your medicines. d. Subscriptions for 1 year- Cost Rs. 555/- Facility - Free home delivery and unlimited free consultation if you don’t have any prescription for your medicines. If you have our subscriptions just need to upload your prescriptions with your add-on orders. We will call and consult with you for any query. Franchising Model- Cost & Investment for Opening ABCD Pharmacy Franchise: Area Requirement: 150 – 350 Sq. ft Total Investment: 7 – 10 Lacs (depending on the location and the size and condition of the premises). Agreement Terms: 5 Years Our Franchisee Support 1. Help to select store location and lease finalization. 2. Help to set up the store by providing layout plan like our other franchise stores. 3. Help with the advertising material and branding. 4. Special training for the store staffs. 5. Audit support Why ABCD Franchise? 1. We will operate a network of stores across 6 states initially. 2. we will take royalty fees which is not fixed and not very high. It’s depends on revenue. 3. Focus will be providing quality service and excellent customer support. 4. Special focus on the newly launched products to make its way to our franchise stores so that these are available in the stores even before doctors start prescribing it. Supply Chain network: Manufacturer Distribution centre/ Distributor’s warehouse Wholesale pharmacy Our (ABCD pharmacy) warehouse Hub (for online) Retail Shop Customers User Needs/ Pain Points: a. Delivery charges: Delivery charges are pain for every customer. Because of this many customer does not order from online. So, if we try to wave of this delivery charges then we can get some more customers. For e.g. we have subscription facility and we will give some more facilities. Like who don’t want to go for subscription they can send invitation to their friends/ family members from our app. If they use their code and order medicine from our application, then that person (who send the invitation) will get 3 free deliveries. b. All India Medicine delivery: As I discussed before that sometimes people came from north to south for check-up. And when they go back to their home destination, they are unable to get those prescribed medicines. So, for that reason we have that facility to deliver those medicines within some span of time. We have Internal North zone south zone east zone west zone interconnected facility. c. Que on retail shop: We have token facility for that and TAT is just 10 mins. So, when customer will come they will have mindset that it will take just 10 mins time so we can wait. And In the meantime they can enjoy our different kind of advertisement regarding our various mode of services on the screen. d. Customer Care Service: Whenever customer face some difficulties then they try to reach out customer care department. But customer cares are really pain point for everyone. Because they use to tell same dialogues to everyone for every problem. For reference I wold like to attach some images which I took from some pharmacy app. Refund policy: Our refund policy will be very prompt and transparent. When customer will not get some medicines, we will refund money within 3 working days. Some company doesn’t even try to return that even after 1 week Sales Channel: 1. Social Media: Nowadays social media is very crucial part of our lives. If we post about our company on a social media platform such as Facebook, Instagram, Twitter and it will reach millions of people within a minute. 2. Banners/ Posters: With an attractive images and some useful information we can make one banner and place it in a proper location. Location like in front of movie theatre Inox, PVR etc. or else inside any shopping mall. 3. Advertisement video in Hospitals, Clinics, Metro stations, Movie theatres. 4. Clinics Referrals as we discussed before. 5. Online ads 6. Flyer (Pamphlet) – It is a form of paper advertisement which distributed in a public place. Nowadays it’s little bit back dated somewhere because may be people are busy and don’t have time to read this. But If we create pamphlet where we highlight Discount part in a bigger font. So, at a glance they can only see that discounts or free items. So that they can get interest to read rest of items. And distribution location should be in front of Hospital. So majority of people know now they will buy medicines. As we all know maximum of the hospitals not give any discounts and take MRP of every medicines. So, I think it this kind of sales channel will be beneficial for our company. Inaugural Offer: After opening shop or online app we will introduce inaugural offer where If customer will buy items for Rs. 500/- or above after discount. Then we will give them 50 mask free. Nowadays mask is very important in our daily life. We will make a banner outside our shop and popup messages in our application. Like this way we can attract customers and retain them. If we will give 50 mask free should we get any losses?? Answer is NO. Because if I calculate this it will be likeWe are buying everything wholesaler. For reference of wholesaler price am attaching below images – But if people buy from anywhere the cheapest rate for decent quality mask is Rs. 300/- (100 pcs) Now the calculation is – 100pcs mask normal rate 300 Rupees That means 1 pc 3 rupees what people are buying from market. If we will buy 1 pc mask on an average Rs. 1/- (will get in less price) Then 50 pcs mask cost is Rs. 50/When they will buy minimum Rs. 500 medicine then our profit will at least 15-20% after discount. If I consider 15% then our profit is 75 rupees. If we will give 50 rupees’ mask on their 1st 500 rupees’ order, then also we have some profit that is 25 rupees. To attract the customer on very 1st day this kind of offer will crack.
