NETMEDS

BUSINESS MODEL
Netmeds offers prescription-based medications, over-the-counter solutions, and health-
related items online. The company has certified drug specialists who screen the prescriptions
of the clients just before dispatching their orders.

The company is basically considering a B2B business model through which it offers
medicines to pharmacies or medical stores at wholesale rates. Presently the company offers
up to 20% discount on prescribed medicines to its customers.

Netmeds is basically saving its overhead costs by investing in distribution chain and by
partnering with various delivery agencies. Netmeds is able to lower its expense to run a
thousand of stores all around the country and is able to save all the expenditure on overheads.
It provides medicines and medical items at heavy discounts and still manages to earn more
than any physical chemist. Netmeds procures all the items from the same manufacturers and
sells them to the customers at discounted rates thereby sharing with them some tiny portion
of its savings in overheads.

VALUE PROPOSITION

Netmeds.com is a fully licensed pharmacy which is committed to adhere to all the guidelines
and standards as prescribed under the Drugs and Cosmetic Act of 1940. Netmeds.com is not
authorized to process any order without a proper prescription, and each order passes through
a strict verification process by a certified pharmacist.

Mr. Anand Pathak, Netmed’s sales and marketing director, stated that their philosophy
is ‘India Ka Khayal Rakhe, India Ki Pharmacy’. The core marketing strategy is
accessibility, affordability and providing quality healthcare across whole of India.
Accessibility indicates that their product and services are accessible across the whole nation.
By affordability, they indicate that they are not charging any extra amount, and even
rewarding customers with some hefty percentage of discounts. Quality health care implies
that they are providing consumers in non-metro cities the same quality of medicine and
healthcare that people in metro cities enjoy.

Dilemmas

 Firstly the major issue that they were facing was how to grow MGM’s non-gaming
amenities to be not just profit centers in their own right, but to be profit powerhouses on
the same level as slot machines or hotel rooms.
 Another dilemma was to understand whether the techniques of rewarding gaming
customer, which helped the Las Vegas and MGM Grand to grow successfully to its
current record levels of revenue and profit, be applied to the non-gaming customers to
support that uninterrupted growth.
 Lastly they were also unsure about whether the improved tracking and rewarding of non-
gaming customers can be implemented without negatively impacting the profitability.

Scope

 Netmeds which is currently a B2C model is considering to go B2B in the near future.
They have decided to offer medicines to the pharmacies at wholesale rates.
 Netmeds is further thinking of opening around 1000 franchise stores within the next five
years.
 Netmeds is also thinking of partnering with various banks to provide loans to applicant
eligible for a franchise
 Along with the launch of grocery delivery service via RIL-owned reliance retail, it will
also soon deliver wellness and fitness products as well.
 .Netmeds might also team up with other pharma/nutritional companies to target specific
group of patient by using the power of data analytics.
 Netmeds which is basically an online pharmacy and a part of the digital health market is
soon going to have a huge growth potential as the pandemic is still not over. People have
 now become more habituated in this form of medicine delivery. At any point of time they
are going to choose convenience over any other factors.
 After being acquired by RIL, Netmeds is surely going to expand its services to a whole
new level. May be they will provide options for availing online yoga and fitness tips and
training as today’s generation is much more health conscious.