Business Plan on Medical Shop 2.

0
NEW PLAN FOR THE EXISTING BUSINESS

Prajwal V J
 Business Plan on Medical Shop 3.0
Introduction
India’s domestic pharmaceutical market turnover reached 1.573 lakh crore in may
2020. India is the largest provider of generic drugs globally. Indian
pharmaceutical sector supplies over 50% of global demand for various vaccines,
40% of generic demand in the US and 25% of all medicine in the UK. Even for
covid-19, India is the country which supplied vaccines to around 22 countries.
Pharmaceutical industry produces drugs that aims to cure diseases, use as
medication to patients, that is prescribed by the doctor. Retail shops are the one
which will be providing medicines directly to the patients which is prescribed by
the doctor. Medicines are the products which is very much required at the time of
emergency situations related to health, treat illness, etc. So in order to provide
those medicines retail medical shops plays prominent role to provide required
medicines at that time. The business plan on medical shop, this plan comprises
with strategies, analysis of various parameters that can be used for improving the
existing business to get more revenue, to be better than competitors, to increase
brand image
Executive Summary
This retail medical shop “Uma Medicals” started in 1996 in a semi-urban region
named Koratagere, Tumakuru District. This shop is situated beside the
Government hospital. The customers will be the patients from the government
hospital or patient from other clinic or the customers which requires other
cosmetics and healthcare related products. This shop will also serves which are
required to customers which is not available at that time and makes sure to satisfy
the customer. As this shop is serving nearly about 25 years, the customers have
great awareness of this shop and has got very good reputation and image in the
society.
Problem statement
• There is huge competition in the current market in every businesses.
Obviously the retail medical shops are also increasing in every city or
areas.
• There are so much of various alternative medicines we can see under one
composition so it would be difficult for the pharmacists to order every
product
• Proper monitoring expiry date of all the products is essential in order to
prevent losses
Objectives

• To sustain and doing well irrespective of huge competition

• To attract customers and to increase sales

About firm
• Uma Medicals was established in the year 1996, This shop is standalone
sole-proprietorship firm situated in Koratagere of Tumakuru District. This
shop is situated beside the government hospital and other small clinic is
also there near the shop. Most of the customers are from the hospital and
clinic, other customers will also be there who requires other general
products.
• Our mission is to get more customers, satisfy their needs and to increase
sales revenue
• Our vision is to have largest market share in this city.

Products and services

We offer wide range of products like general medicines, Pharmacy medicines,
prescription only medicines, baby care products, cosmetics, small medical
equipments, surgical products, ortho related products, stationery products,
chocolates, nutrition related products for baby, women and adult, etc

New ideas and strategies

For any organization or firm or even for any product or service, it is required to
improve or upgrading its features, quality, technology used in order to sustain for
longer duration. Because every product has its declining period also, so in order
to compete well and to sustain longer we need to update our techniques, up to
date information, adapting new technologies to become quick and accurate, etc.
Some strategies and ideas planned to add to the existing shop are,
• Introducing organic products, fitness related products, etc
Organic products may includes the food products, vegetable oil, other
personal care products
Fitness related products may include fitness supplements, protein powders
and vitamin tablets, etc
 These products are costly and requires lot of marketing to give awareness
about those products. Also since the place is semi-urban, it is less likely
that the people will buy those costly products. But to make difference, it is
necessary to take risk and give a try

• Implementing retail management software

The retail management software that enables us to maintain proper data
such as stock, sales and purchase reports which helps in having up to date
information about all required data that helps to estimate for future and
utilizing the existing resources well. This also helps in reducing the loss
which may occur as we can plan to return or sell the products which are
near to expire.

• Giving benefits and offers

Around these 5 years the customers will ask for the discounts, if discounts
are not given, then the customers will switch to other shops which is the
big threat for the shop. So we need to make strategy so that customers will
attract to the benefits and also we should not incurr loss.

• Starting to deliver the products to their home directly because it may help
for customers who are busy in their work. Eg: for diabetic patients and BP
patients require the medicines regularly, so if they couldn’t come outside
and buy they can call us and get the products at the door.
Market analysis
• The products like medicines that includes tablets, capsules, syrups,
ointments, injections, inhalers, suppositories, health drink powders, drops,
surgical products, small equipments, ortho related products, cosmetics, etc
are the products which are available here that are moving and only few
products which are new and expected to move.
• Target Customers are the patients who visits nearby hospital and clinic
other people who reside in the city and the rural villages around the city
who requires medicine and other related products to satisfy their needs.
• Around 17 shops of the same kind can be seen in the same city targeting
consisting of 1.7 lakh population in Koratagere Taluk. So there are lot of
competitors that can affect our business
• At present, roughly the market share is around 10% in our city.
• Using the social media platforms for marketing products
Financial analysis
INR Mar-18 Mar-19 Mar-20 Var % Var %
18-19 19-20
Revenue 43,98,036.0 29,76,000.0 31,29,242.0 -32.3% 5.1%
Cost of goods sold 35,18,428.8 22,32,000.0 25,03,393.6 -36.6% 12.2%
Gross Profit 8,79,607.2 7,44,000.0 6,25,848.4 -15.4% -15.9%
Operating 1,31,941.1 89,280.0 93,877.3 -32.3% 5.1%
expenses
-12.4% -18.7%
EBITDA 7,47,666.1 6,54,720.0 5,31,971.1
D&A 0.0 0.0 0.0
EBIT 7,47,666.1 6,54,720.0 5,31,971.1 -12.4% -18.7%
Interest expenses 0.0 0.0 0.0
EBT 7,47,666.1 6,54,720.0 5,31,971.1 -12.4% -18.7%
Taxes 89,719.9 78,566.4 63,836.5 -12.4% -18.7%
Net Income 6,57,946.2 5,76,153.6 4,68,134.6 -12.4% -18.7%

From the above statement of the firm, revenue was decreased from year 2018 to
2019 which is -32.3 %, then from 201919 it increased to 5.1 % and the cost of
goods sold was also decreased from 2018 to 2019 i.e, by - 36.6 % and increased
by 12.2% from 2019 to 2020. Also operating expenses was decreased -32.3 %
from 2018 to 2019, but increased at 5.1 % from 2019 to 2020. Finally, the net
income also decreased from 2018 to 2019 by 12.4% and again decreased by
18.7%.

Best case:
Forecast
Mar-21 Mar-22 Mar-23 Mar-24 Mar-25
32,54,411.7 33,84,588.1 35,19,971.7 36,60,770.5 36,60,770.6
(24,40,808.8) (25,38,441.1) (26,39,978.8) (27,45,577.9) (27,45,577.9)
8,13,602.9 8,46,147.0 8,79,992.9 9,15,192.6 9,15,192.6
(65,088.2) (67,691.8) (70,399.4) (73,215.4) (73,215.4)
7,48,514.7 7,78,455.3 8,09,593.5 8,41,977.2 8,41,977.2
0.0 0.0 0.0 0.0 0.0
7,48,514.7 7,78,455.3 8,09,593.5 8,41,977.2 8,41,977.2
21,150.0 19,757.9 18,240.5 16,586.6 14,783.8
7,69,664.7 7,98,213.2 8,27,834.0 8,58,563.8 8,56,761.0
(92,359.8) (95,785.6) (99,340.1) (1,03,027.7) (1,02,811.3)
6,77,304.9 7,02,427.6 7,28,493.9 7,55,536.1 7,53,949.7

The above table shows the estimation for the next five years at the expected best
results from the actual sales.
Base case:
Forecast
Mar-21 Mar-22 Mar-23 Mar-24 Mar-25
31,91,826.8 32,55,663.4 33,20,776.6 33,87,192.2 33,87,192.2
(25,53,461.5) (26,04,530.7) (26,56,621.3) (27,09,753.7) (27,09,753.8)
6,38,365.4 6,51,132.7 6,64,155.3 6,77,438.4 6,77,438.4
(1,27,673.1) (1,30,226.5) (1,32,831.1) (1,35,487.7) (1,35,487.7)
5,10,692.3 5,20,906.1 5,31,324.3 5,41,950.7 5,41,950.8
0.0 0.0 0.0 0.0 0.0
5,10,692.3 5,20,906.1 5,31,324.3 5,41,950.7 5,41,950.8
21,150.0 19,757.9 18,240.5 16,586.6 14,783.8
5,31,842.3 5,40,664.0 5,49,564.8 5,58,537.3 5,56,734.5
(63,821.1) (64,879.7) (65,947.8) (67,024.5) (66,808.1)
4,68,021.2 4,75,784.4 4,83,617.0 4,91,512.8 4,89,926.4

The above table shows the sales estimation at the same level as we got from
previous years. This case is neither best nor worst

Worst case:

Forecast
Mar-21 Mar-22 Mar-23 Mar-24 Mar-25
31,60,534.4 31,92,139.8 32,24,061.2 32,56,301.8 32,56,301.8
(25,91,638.2) (26,17,554.6) (26,43,730.2) (26,70,167.5) (26,70,167.5)
5,68,896.2 5,74,585.2 5,80,331.0 5,86,134.3 5,86,134.3
(1,89,632.1) (1,91,528.4) (1,93,443.7) (1,95,378.1) (1,95,378.1)
3,79,264.1 3,83,056.8 3,86,887.3 3,90,756.2 3,90,756.2
0.0 0.0 0.0 0.0 0.0
3,79,264.1 3,83,056.8 3,86,887.3 3,90,756.2 3,90,756.2
21,150.0 19,757.9 18,240.5 16,586.6 14,783.8
4,00,414.1 4,02,814.7 4,05,127.9 4,07,342.8 4,05,540.0
(48,049.7) (48,337.8) (48,615.3) (48,881.1) (48,664.8)
3,52,364.4 3,54,476.9 3,56,512.5 3,58,461.7 3,56,875.2

It is the worst case when the losses are more because of reduced sales and due to
competition or other reasons.
SWOT Analysis
Strengths:
• Old shop which has been serving since 25 years
• Great awareness and reputation will be there in society
• Situtated at the centre of the city.
• Very much near to the Government hospital
• As our home is behind the shop only, we will be serving the medicinal
products during the time of emergency which is also the unique thing that
can be seen in our city.
Weaknesses:
• Sometimes product may not be available at that time due to heavier demand
at that particular time
• No accurate information about the available stock, daily sales, required
products to place order.
• As the product line is more, when the patients get prescribed from another
city, in those cases sometimes the product may not be available as there are
lot of pharmaceutical companies existed in our country. Hence it is very
difficult to made all the products available in the single shop
Opportunities:
• There are some technologies which can be implemented to attract more
customers
• Using new marketing strategies to have greater market share
• Using websites, social media platforms to give awareness about the
product to show all the available products
• Using retail management software to have proper up to date information
regarding stock, sales, products near to expiry and also the other reports
related to the products with respect to sales, product, suppliers, etc
Threats:
• Heavy competition will affect the success of business and so there is a
chance of losing customers
• Online pharmacy like Pharmeasy, netmeds, so on is other competitors
which may affect more in future
• Jan aushadi medical stores made a huge impact in decreasing our sales
• Lot of new rules, regulations has to be followed
• Customers will ask huge discounts that leads to reduce in profits
Technical Analysis
• There are lot of management software solutions available in the market.
Implementing retail management software that enables us to maintain
proper data such as stock, sales and purchase reports which helps in
auditing also.

• This software also helps in knowing the products which may expire in a
few days or months so that we can always be aware about those products
and helps to return or to sell it as early as possible. Also ensures to
minimize the loss.

• Planning to have a database of the permanent customers and starting to

deliver the products to the customers on time directly to their home
whenever they require during the working hours.

• Sending e-receipts to the customers through the normal message from the
retail management software.

Conclusion
• As the shop is having great image in the city, competition can be
overcomed. But still it requires to improve the shop by implementing new
technologies trying different strategies, introducing more products, using
the resources, proper maintaining stocks, etc to increase revenue and to
attract more customers.
• Implementing the technologies alone cannot make good impact but all
those techniques need to be followed on daily basis.
• Nothing is permanent in the business or in the world. So we have to keep
on trying to make strategies, techniques to improve the business and get rid
of competition and to always be at least challenger in the market.