Rajat Final Print

MINI PROJECT REPORT
Submitted in partial fulfilment of Master of Business Administration
Session-2021-2022
“HYPERLOCAL APP FOR RETAIL PHARMACIES”
Faculty Guide: Submitted By:

Ashish Shukla Rajat Chauhan
Faculty-Master of Business Administration ID: 31149
PRANVEER SINGH INSTITUTE OF TECHNOLOGY

Affiliated to Dr. A.P.J. AKTU
Pranveer Singh Institute of Technology

DECLARATION
I hereby declare that this submission is my own work. It contains no material previously
published or written by another person, nor has these materials to a substantial extent been
accepted for the award of any other degree or diploma of the university or other institute of
higher learning.
Rajat Chauhan

CERTIFICATE

ACKNOWLEDGEMENT
Mini Project Report is the one of the important part of MBA program, which has helped me to
gain a lot of experience, which will be beneficial in my succeeding career. For this with an
ineffable sense of gratitude I take this opportunity to express my deep sense of indebtedness
and gratitude to Dr. S. K. Bhalla, Director - Pranveer Singh Institute of Technology and
Dr. Harit Kumar, Head of Business Administration Department, for their
encouragement, support and guidance in carrying out the project.
I am very much thankful to, my Project Guide Mr. Ashish Shukla, Faculty – MBA
Department for his interest, constructive criticism, persistent encouragement and untiring
guidance throughout the development of the project. It has been my great privilege to work
under his inspiring guidance.
I am also thankful to my parents and my friends for their indelible co-operation for achieving
the goals of this study.

Table of Contents
DECLARATION ...................................................................................................................ii
CERTIFICATE..................................................................................................................... iii
ACKNOWLEDGEMENT....................................................................................................iv
1. Executive Summary ....................................................................................................... 3
2. DESCRIPTION OF BUSINESS IDEA ..................................................................................... 4
3. INTRODUCTION............................................................................................................. 5
3.1 Retail Pharmacy: .................................................................................................... 5
3.2 Domains of Pharmaceutical Dispensing: .................................................................... 6
3.2.1 Organized retail pharmacy:..................................................................................... 6
3.2.2 Unorganized retail pharmacy: ................................................................................. 6
3.3 E-pharmacy:........................................................................................................... 9
4. FEASIBILITY STUDY: ......................................................................................................12
4.1 Product/Service Feasibility: .........................................................................................12
4.1.1 Concept Testing:...................................................................................................12
4.1.2 Usability Testing:..................................................................................................13
4.2 Industry/Market Feasibility: ........................................................................................14
4.2.1 PESTLE Analysis: ...................................................................................................15
4.2.2 SWOT Analysis: ....................................................................................................17
4.2.3 Potter’s five forces model:.....................................................................................18
4.3 Organizational Feasibility: ...........................................................................................19
Pranveer Singh Institute of Technology Page | 1

4.4 Financial Feasibility:....................................................................................................20
4.5 Market Feasibility: ......................................................................................................21
4.5.1 7 P’s of Market Feasibility:.....................................................................................21
4.5.2 STP Analysis- Segmentation, Targeting and Positioning: ............................................24
5. Conclusion...................................................................................................................27
6. BIBLIOGRAPHY.............................................................................................................28

1. Executive Summary
This project study covers the feasibility of a business idea – a “HYPERLOCAL APP FOR
RETAIL PHARMACIES” in the city of Kanpur, Uttar Pradesh. The study is the preliminary
of a business plan. Therefore, it aims to discover the environment surrounding the retail
pharmacy app business in Kanpur, Uttar Pradesh.
The project study employs descriptive approach, using both quantitative and qualitative data
from various literature source. The data collection includes both primary and secondary data.
The primary data and secondary data are collected from books, articles, and reports.
The study evaluates the business idea, using a feasibility analysis. Four different aspects of a
business idea are analysed: product and service feasibility; industry and market feasibility;
organizational feasibility; financial feasibility. Different tools are used to deliver the results
such as PESTLE, Potter’s Five Forces, financial and resources theory.
Food chains like Swiggy entered pharma retail business. A hyperlocal app called Dunzo
collaborated with various chain pharmacies like Apollo and Himalaya etc. So is this the end of
small independent retail pharmacies or are they going to survive the market turmoil. If yes,
how they are going to survive and what strategies can be adapted etc. Considering all these
aspects I decided to come up with a strategic survival business plan for retail pharmacies. The
key results of this project include market situation and feasibility related to a retail pharmacy
hyperlocal app business and estimated finance for the business. In conclusion, the hyperlocal
app for retail pharmacy is a feasible idea.

2. DESCRIPTION OF BUSINESS IDEA
HYPERLOCAL APP FOR RETAIL PHARMACIES IN THE ERA OF E PHARMACIES
The new buzz word in the e-commerce is hyperlocal which is set in the market for delivery of
product in residential area, they cater the need of customers in limited area. Local retail and
service provider are got their lease of life in business. Customers are more satisfied with this
hyperlocal platform; they can get any product which is available in their local area directly to
their door step.
Purpose of these collaborations is to increase the consumer base of chain pharmacies as well
as to decrease the customer trust issues of ordering via E-pharmacies.
The market scenario of retail pharmacies is going to be very competitive due to increased
penetration of E- pharmacies. Because of the e pharmacy, retail pharmacies lost some
percentage of customer base, so to increase the customer base for retail pharmacy we came up
with a business plan.
Our business plan is about creating a hyperlocal platform for retail pharmacies.
App will be created for:
• Retail pharmacy shops
• For customers
• For delivery persons
The app will be interlinked between retail pharmacy shops to customers and customers to the
delivery boys.
Customer order details will be sent to preferred retail pharmacy as well as delivery boy. Re tail
pharmacist will verify prescription details and order number. Delivery boy will collect the
ordered medicines and delivers it to concerned customer address.
Delivery boy will have the GPS system which can be tracked by the customers to give live
track of medicine delivery.

3. INTRODUCTION
Pharmaceutical industry is widely fragmented throughout the country. Association Chamber
of Commerce of India (ASSOCAM) has estimated that pharmaceutical sector will reach to
USD 55 billion by 2020 and which was USD 28 billion in 2017.
The growth of Pharma market is due to continuous increase in incidences of chronic diseases,
regardless of lack of organization and the corporate discipline. India’s domestic retail pharmacy
market is estimated to be around $6 billion. Retail pharmacy market is in the midst of changes
and there is a need for more efficient organization of retail pharmacies.
The organized and unorganized pharmacies have to operate together as an outstanding
distributor of the drugs as the industry is highly government regulated and their massive
challenges are the manpower and money in unorganized pharmacies. As the industry is
growing rapidly it has created many opportunities for the E-pharmacy-pharmacy models which
is a promising trend and is challenged by the regulatory issues.
The growth of the pharma market in India can be attributed with the better diagnosis of
diseases, improved medicines and networks and availability of healthcare facilities distribution.
3.1 Retail Pharmacy:
Retail Pharmacy market is tremendously practiced across the globe and sells the
pharmaceutical products which includes over the counter drugs, prescription drugs and FMCG
products along with the other pharmaceutical products. It contributes in the welfare of the
humanity and also provides socio economic benefits to the society as it helps in creating the
jobs and community development etc.
There are more than 8, 00,000retail stores in India as of estimated and 2018 data which covers
the 70% of generic drugs, 21% of non-prescription drugs and 9%patented drugs.

3.2 Domains of Pharmaceutical Dispensing:
The dispensing of pharmaceuticals is divided into two domains on the basis of sales volume,
distribution system.
3.2.1 Organized retail pharmacy:
They work under the (Central Drugs Standard Control Organization and State Drugs Standard
Control Organization) issue the RDL (retail drug license), the licence authority under which
unorganized pharmacies work. They follow centralized inventory management system.
List of some retail chain pharmacy are:
• Noble plus pharmacy and skin care: the most trusted and preferred chains in Mumbai
which have the 20+ outlets and the 10,000 customers. The availability of product is 24/7.
• Apollo pharmacy: Asia’s largest healthcare group with 3000+ outlets in key locations
which is accredited with international quality certification. Availability of product is 24/7.
• Med plus health services: the second largest retail pharmacy in a country with 1400+
outlets.
3.2.2 Unorganized retail pharmacy:
These are small pharmacies with the inefficient management system which in turn results in
wastage of time and resources. These are major contributors in domestic pharmaceutical sales.
They provide high volume support as they are present in every corner of India and hence serves
as big source of employment in India. It has potential to drive high market growth due to high
base sale. Operating margin is to be estimated as 20%
Figure1: Operating Margin of pharmacies distribution channels

Operating Model used for procuring the product from several distributors and stockiest (who
procure it directly from the manufacturing units).
Figure2: Operating Model of The Retail Pharmacies in India
Strength And Weakness of Retail Pharmacies:
Strength Weakness
• The retail pharmacy is well spread and • High expense of rent
within the reach of the large population • Lowering of profit margin if the expense of
• Undertake delivery to the customers salaries and rent are accounted
• Lower customer acquisition cost • Limited inventory
• Better customer loyalty • Facility problems
• Time saving • Labour problems
• Supplier problems
• Infrastructure

Challenges faced by the Retail Pharmacy:
➢ Low industry margin: Retail pharmacy is highly fragmented and unorganized. They are
established across the country. Drugs are bought in smaller quantities from the drug
distributors by the retail stores at higher prices compared to what E-pharmacies procure
from manufacturers and hence they get lower profit margins.
➢ Sustainability of the retail Pharma industry: The sustainability of the retail pharma
industry is affected by the lower profit margins as the increase in the competition and
increase pressure on the price control as the profit margin for the retail pharma is 15-20%.
Adaptation of the technology can increase the productivity of the industry and also serve
the services to the consumers.
➢ Drug misuse: There are significant number of cases regarding dispensing of medicines
without prescription which has increased rate of drug misuse in the country. For example,
the use of addictive substance such as DXM (dextromethorphan) which is being misused
and which can lead to emotional damage and withdrawal symptoms such as depression and
memory loss. There are many cough suppressants which have codeine, which is also highly
addictive and can be misused.
➢ Counterfeit medicines: Retail pharmacies have been alleged to sell sub-standard and fake
medicines which has increased the risk of adverse effects of medicines. This however we
find is rarely true.
➢ Poor Documentation/Tracking of prescription: Selling drug without proper
documentation of sale causes difficulty in drug recall process as it happens due to selling
of drugs without providing bill/invoice for the purchase, hence no proper buyer records
exits and reporting is affected.
➢ Poor inventory management: In India, it is not feasible for a single E-pharmacy to store
a wide range of products, which forces consumers to v isit multiple pharmacies for

procuring all their medicines. This is an inefficient method which lead to over stock and
increase in cost. Fluctuations in supply and demand are not properly matched on the system
and due to the use of different platform software’s by the vendors and retailers. Inventory
forecasting, pricing, storing, replenishing the exhausted goods, must not be encouraged.
Strategies adopted by the successful retail pharmacies:
Consumer maintains relationship with the pharmacist based on the mutual trust and the strong
rapport. This proactive approach is essential for fostering the trust and satisfying customers,
retailers need to stock business a good range of product varieties.
Retail pharmacies work on lower margin high sale formula and create discount practises is to
attract customers. Flexibility of payment in any form e.g., debit card, credit card, UPI or cash
etc. to customers and also allows for a quick service and customer satisfaction.
3.3 E-pharmacy:
Also known as E-pharmacy, internet pharmacy, cyber pharmacy or mail order pharmacy. They
operate over the internet and sell pharmaceutical preparations to customers who order E-
pharmacy and physical delivery. E-pharmacy availability of wide drugs range is for
pharmaceutical companies as they continue to reshape the future of medicines which are being
purchased.
Figure 3: Operating Margin of E-pharmacy Pharmacies

Current market value is 930 Rs. Crore
There are more than 290 E-pharmacy pharmacies. They mainly concentrate on chronic disease
market since they operate on high profit and high sales. Their labour and infrastructure costs
are very less compared to the retail pharmacies.
Figure 4: Operating model of E-pharmacy Pharmacies
Operating Model:
They operate by efficient use of Warehouses and tie ups with pharmacies at strategic locations.
Once the order is placed and the prescription is verified then the product is dispatched to the
fulfilment centre where the goods are packed and sent for the delivery.
Strength And Weakness of E-Pharmacy Pharmacies:
Strength:
➢ Time saving: It takes very less time and effort than travelling to local pharmacy and
sometimes one might have to visit 4-5 pharmacies to get his desired medicine. But in case of
E-pharmacy pharmacies it just takes a second to minutes to log in and get access to E-pharmacy
app or website and buy any medicine by uploading the proper prescription.
➢ Cost saving: it enables to widen the customer base by reducing the working capital,
overhead costs, and increase in margin which translates to cost advantage for the end
customers.

➢ 24/7 accessibility or convenience: It is easy to buy or order medicines E-pharmacy,
provides fast and hassle-free purchasing of medicines. For Individuals who live in a great
distance, elderly or disabled people it is easy to get their medicines delivered at door step
through E-pharmacies.
They also enable the access to rural areas where there is limited presence of the retail pharmacy
and E-pharmacy helps the consumer to choose from the wide range of the products.
Easy comparison of medicines: Cost comparison of medicines can be made as they have a wide
range of choices and have a larger stock than conventional pharmacy stores and they also
impart the knowledge of the medications.
Weakness:
➢ Chances of drug abuse, drug misuse, and misdiagnosis: When E-pharmacies fail to read
the prescriptions, which results in improper medication it can af fect the patient and lead to
severe drug interactions.
➢ Promote self-medication
➢ Purity and quality of drugs is not assured as there are chance of delivering substandard,
counterfeit, and adulterated products.
➢ Health privacy issues which is very much important and E-pharmacy website should
publish their policies. They should keep the personal information of users safe and should not
share with any third parties.
Limitations for E-pharmacy:
Some drugs cannot be sold under the E-pharmacy pharmacy, comes under the narcotic and
psychotropic category. The E-pharmacy portal has to maintain the confidentiality of customer
information but they are duty bound to disclose the information to the state or central
government whenever it is required for any public health purposes.

4. FEASIBILITY STUDY:
The hyperlocal retail pharmacy app which provides a wide variety of FMCG and medications
as well as over-the-counter medications such as cough medicines, pain relievers and personal
hygiene products / supplies.
A retail pharmacy which are licensed and have trained pharmacists will be selected to dispense
the drug and promote safe and effective use of the drugs. Pharmacists advise on over -the-
counter treatments and are an important source of consultation on drug side effects.
The company provide its services through its website on the Internet / or through the phone
application where individuals can submit their requests to it and requests will be delivered to
their homes at any time of the day (24/7 service).
The feasibility study of the hyperlocal retail pharmacy app comprises of product, industry,
market, organizational and financial stability.
Types of feasibility study:
• Product/Service Feasibility
• Industry/Market Feasibility
• Organizational Feasibility
• Financial Feasibility
4.1 Product/Service Feasibility:
In order to determine Hyperlocal retail pharmacy app product feasibility, The Concept testing
and Usability testing have to be implemented.
4.1.1 Concept Testing:
There is a need for a paradigm shift in the healthcare delivery system in India. About 75% of
India’s population living outside urban cities has access to only 35% medical facilities and 16%
hospital beds. Such disparity has compelled India to neglect prev entive and public health

measures. This, among other aspects related to the pandemic, has pushed the country into the
current state marked by limited access to healthcare in a mass health exigency. Hyperlocal
retail pharmacy app shows the promise to bridge this gap in the future by removing many
infrastructural challenges and reducing the time taken by a patient in getting medicines. The
industry may see further refinement and simplification of business models and may eventually
lead to consolidation and growth. Our work force is going to be well trained to operate within
the framework of our company’s corporate culture and also to meet the needs of all our
customers. Company will have a CRM software that will enable us manage a one -on-one
relationship with our customers no matter how large the numbers of our customers’ base grows.
We will ensure that we get our customers involved in the selection of brands that will be on
our app and also when make some business decisions. Hyperlocal Retail Pharmacy app will
retail a wide range of prescription drugs from different manufacturing brands to customers
through partnered pharmacies who are based in Kanpur. Company will also engage in the sale
of beauty products, cosmetic, postcards (greeting cards), baby products, convenience foods and
other related products (small scale medical equipment / instruments).
4.1.2 Usability Testing:
Pharmacies across the world followed a basic business model which underwent a little
change over the last few decades. The patient consulted their practitioner who would
prescribe drugs. This prescription would then be shared with pharmacist who supplied these
drugs. With app for retail pharmacies, patients have more choices and control over managing
their health. App offers accessibility to people with limited mobility and people in remote
areas. These provide Medi alerts (personalized medicine reminder service), discounts,
doorstep delivery within a short time, and validation of prescription through licensed
pharmacists. Information about substitutes and adverse effects is also available on these
app/sites.

Hyperlocal pharmacies app will be an integrated solution offering teleconsultations, online
diagnostics appointment and home delivery of medicines at the convenience of the customer.
Most of their initiatives revolve around customer experience. Suitable arrangements will be
made to ensure that the medicines are packed, transported, and delivered in such a way that
their integrity, quality, and effectiveness are preserved. The delivery mechanism will preserve
the confidentiality and privacy of the end customer and the specific drugs ordered / medical
conditions treated, etc.
4.2 Industry/Market Feasibility:
The market trend in pharmacy industry is directly influenced by a country’s healthca re reform
policies. The fact that the pharmaceutical industry is highly regulated means that any
entrepreneur who wants to run a hyperlocal retail pharmacy store must be ready to play by the
book. Retail Pharmacies are now making use of technology to effec tively manage their
clientele base.
The fact that we are going to open our doors to a wide range of customers does not in any way
stop us from demanding and screening prescriptions as required by the law. Our staff are trained
to effectively service our customers and still play by the rules governing the industry. Our
customers can be categorized into the following households, corporate executives, business
people, elderly people, expectant mothers, sports men and women, students.
The marketing and sales strategy of hyperlocal retail pharmacy app will be based on generating
long-term personalized relationships with customers. In order to achieve that, we will ensure
that we offer medications at lower prices, compared to what is obtainable in Kanpur. We will
also ensure that we have a wide range of drug supplies in our database for both quick shipment
and at partnered store front pick up.
Company will going to explore all available conventional and non – conventional means to
promote our business like placing adverts on both print (community based newspapers and

magazines) and electronic media platforms, sponsoring relevant community programs,
leveraging on the internet and social media platforms like; Instagram, Facebook, twitter, etc.
to promote our brand, install our bill boards on strategic locations all around Kanpur, engage
in road show from time to time, distribute our fliers and handbills in target areas and position
our flexi banners at strategic positions in the location where our partner retail store is located.
4.2.1 PESTLE Analysis:
Political factors: Political factors play a major role in determining the aspects that can affect
hyperlocal retail pharmacy app long-term viability. Company will be exposed to multiple types
of political environments and political system risks. In the India, there is an increasingly
growing focus on health care authorities. This means that the government looks for savings
across the board, putting pressure on drug pricing, pharmaceutical services and selec tion of
drugs.
Economic factors: Economic factors play a major role in retail pharmacy app because this
allows us to partner stores, remodel stores, purchase different products. However, if the
economy is doing bad the outcome is the opposite. In this case company would have to
downsize, which means closing stores, not adding new items, and purchasing smaller amounts
of items. Consumer shopping habits have changed over the past years and more specifically in
the new economy. Some of the habits have significantly affected purchases of prescriptions
and OTC healthcare products.
Socio-cultural factors: The way society’s culture does something has a pretty big impact on
how a company has to do something. This plays a big role in how they market to their
customers, who their target demographic is, and how they strategize. Company has to make
sure that they not only market to their target demographic for their retail products and their
pharmacy products. Therefore, the pharmacy needs to capitalize on the opportunities to
remain productive in a highly competitive industry. There is the issue of obesity amongst the

elderly and the youth. This comes with associated health risks. Patients and carers’ are now
seeking more information from the store online. Their expectations have changed and are now
demanding thus, offering an opportunity for the company to make more sales.
Technological factors: Technology is an extremely important factor in basically all businesses
in today’s world. This is because basically everything is technological anymore in at least some
aspects. The company will also use the website to update its clients on new induction and how
to safely use its drugs. This is enhanced by a highly professional, active and highly efficient
customer care. Company will also have some technology like the coupon printer that a lot of
customers use when they walk in the partnered store. The company also needs technology for
the cash registers and data management.
Environmental factors: Environmental factors over the past years, government are now
becoming more aware of the need for pharmacies to be proactive in this field. Company needs
to link its marketing plans with environmental issues.
This will provide an opportunity to incorporate it within its Corporate Social Responsibility,
market and development of new products by identifying eco-friendly opportunities. By doing
so, the hyperlocal retail pharmacy app will enhance its growth opportunities and increase its
sales volumes.
Legal factors: Company faces a wide range of Indian legislative and regulatory restrictions.
Additionally, there is a growing culture of litigation. With the evolution of the internet,
legislative boundaries are also stretched and patients are now demanding more rights when it
comes to their healthcare programs. Therefore, the company needs to focus more on the quality
of its products and follow all the government laws.

Figure 5: Six keys’ areas covered in PESTLE analysis
4.2.2 SWOT Analysis:
STRENGTH WEAKNESS
Customer convenience Awareness for the app
Fast delivery Profit margin
Easy availability of medicines Poor inventory management at retail
Discounts pharmacy
Home delivery Weak promotions
Customer feed back
OPPORTUNITY THREATS
Customer attraction Competitors (DUNZO, SWIGGY store)
Promotions through social media Economical like GST
Providing discounts as comparing to the Changing the regulations
competitors Cultural threats
Improving customer service

4.2.3 Potter’s five forces model:
Figure 6: Potter's Five Forces of Competitive Position Analysis
Potter’s Five Forces as a useful tool for analyzing the industry attractiveness. Po tter’s work
looks at the industry structure and a company’s competitive strength and positioning relative
to that industry depicts the five forces.
Threat of new entrants:
• For Retail pharmacies threat of new entries will be high as med plus are opening chain stores.
• It involves a huge knowledge of the market and resources.
• New E-pharmacies with their chain stores can enter into business
Bargaining Power of Buyers:
• Bargaining power of buyer will be high.
• As buyer has various options to buy their medicines and also hyperlocal app will take some
time to be trusted by their customers so to overcome this company has to present their
differentiated product with special environment and cost of the products will be genuine and
delivery charges will be low which satisfy the customers.

• More features in the app like medication daily routine notification, tie-ups with local blood
testing labs are a unique feature.
Bargaining power of Suppliers:
• App will be developed one time as per need.
• There will be purchase of medicines from distributors or manufacturing unit for maximum
discount for bulk which will be cost effective and sustain for a long time.
Competitive Rivalry:
• Cities such has Bangalore, Pune has many such hyperlocal app like Dunzo and Swiggy.
• Kanpur is a suitable place for such a concept base app business and as it is a new concept
there won’t be many competitors.
• No other app provides such different features where people can choose according to their
need of medication and medical test.
Threat of Substitutes:
• There are many substitutes like many ecommerce websites and app for FMCG products.
4.3 Organizational Feasibility:
Our hyperlocal app business will be built on a solid foundation. From the outset, we have
decided to recruit only qualified people to man various job positions in our organization. We
are quite aware of the rules and regulations governing the pharmaceutica l industry which is
why we decided to recruit experienced and qualify employees as foundational staff of the
organization. All our employees will be well trained and equipped to provide excellent and
knowledgeable customer service. Company will hire experts who have good understanding of
the retail industry to help us develop marketing strategies that will help us achieve our business
goal of winning a larger percentage of the available market in Kanpur.
These are the positions comprising in our company leadership:
• CEO (pharmacy owner, superintendent pharmacist and supervising pharmacist)

• Pharmacist Manager
• Pharmacist technician
• Information Technologist
• Sales agents
4.4 Financial Feasibility:
For our business plan we need funding, so we are approaching some venture capitalists like
angel investors (a US based investors, who help for startups), or from PRADHAN MANTRI
YOJANA for startups.
Total investment for our start up: INR 30 Lakhs
Owner investment: INR 16 Lakhs
Loan from investors: INR 14 Lakhs
For advertisement in the metro cities: 2 lakhs
Building is on lease: for 2 years 5 lakhs
Registration in licensing authority: 50,000.
Machinery and infrastructure: 18 lakhs
No. employees in a branch: 5
Salary for each employee: 30,000Rs per month
Salary for all employees: 1.5 lakhs per month
Commission to be received from retail pharmacies: 10 Rupees per order generated
Delivery charges on customer: 6 Rupees per delivery
For delivery our company will be collaborating with bike rentals so that delivery can be done
at its minimum cost.
Salary for delivery boy per month: 9,000 Rs.

Forecasting:
First, I will start my business plan in Kanpur city then business will run in metro cities like
Delhi, Kolkata, Mumbai, Hyderabad, Bangalore, and Chennai.
Number of targeted retail pharmacies in a city: 100
Total number of delivery boys: 30
Salary for each delivery person: 9,000 Rs per month. (Basic salary)
Salary for 30 delivery persons per month: 2.7 lakhs
Each delivery will cover: approx. 4Km
Per day 30 deliveries will be targeted by each delivery person that will generate 180Rs per day.
From 1500 deliveries will generate 9000Rs per day, in a month the profit generated will be
2,70,000 Rs from delivery charges.
Commission from each retail pharmacy per order will be 5Rs
From 100 retail pharmacies, it will be 500Rs per order
If 30 orders will generate 15,000Rs per day then for a month it will be 4,50,000Rs.
Total profit from the delivery charges and commission will be 7,20,000Rs per month
Profit after paying salaries to the delivery persons in a month will be 3,00,000Rs.
4.5 Market Feasibility:
4.5.1 7 P’s of Market Feasibility:
Marketing mix is the most useful tool for the management to create the marketing plan and
choose the smart tactics. It has basic 7 components Product, Price, Place, Promotion, Physical
evidence, People and Process. To bring the maximum outcome management should blend all
7ps and implement on their decision-making strategy.
• Product:
Hyperlocal Pharmacy App is a medical and pharmacy services company. The product range of
the app is all daily use consumer items majorly consisting of pharmacy products. It is the new

retail pharmacy app and provider of prescription drugs, other medication and FMCG products.
It provides a range of product and services which helps to provide affordable services of good
quality at low costs. App will have an approximately 100 stores partnership, where these retail
stores will deliver affordable drugs and help patient to recover at low costs. In app they have a
strong network of customer relationship management where medical consultant and
pharmacists help people with minor problems, screening and testing. They also monitor
illnesses and counsel people.
• Price:
Pricing is a market variable, growing number of pharmacies have built their market
strategy/market positioning, it is more generally the case that the state has exerted its buyer’s
power reducing the price of medicines; so, our app will have to adjust to this new reality.
Maintaining affordability and access to the medication will be the utmost priority at hyperlocal
retail pharmacy app. Company will uses various management pricing tools to cut down on
pricing in its marketing mix, it is a big challenge company pose. Value purchasing prices are
there to ensure drug is sold at the actual value rather medicines the market prices. After
extensive analysis of high sales of the drug, we will be making strategies to buy that drug in
bulk to fulfil the extensive demand of the customer at minimal price.
• Promotion:
Promotion is a combination of techniques used throughout the product life cycle for the three
participants in the market (consumer, retailers, wholesalers), for short-term increase in sales
and increase the number of new customers. Sales promotion in contrast to other means of
marketing communications, you can quickly effect on the supply and demand immediate
change consumer behaviour. The choice depends on the purpose of promoting the object of the
upcoming impact, i.e., the target audience. Thus, the objectives of stimulating

consumers with the highest importance, are increasing the number of customers, and increase
the quantity of goods purchased by the same buyer.
The most important tools for promoting markets are financial, in particular, in the world used
a large number of discounts is best way of promotional strategies like discount on sales
given to regular customers, Progressive discount, the discount on the amount or quantity
purchased. Given to the buyer if they buy it before a certain quantity of goods, Seasonal
discount given to the buyer in the form of discounts on freight, preferential or interest-free
credits, distribution of free samples, Discount on sale of old equipment.
• Place:
It is mandatory for a company to be available at the reach of the consumer and partners. Thus,
finding it available at the specific location as well as in the city markets is very important to
achieve the product plan objectives. The Place also concerns with levels of operation of the
store and the number of employees that are needed.
Company should partner with retail pharmacies in most of the places and streets pharmacies in
the city and make sure the availability of the product so that the customers can buy it whenever
they require. The distribution network should be stronger which leads to the success of the
marketing effort. The elements of physical distribution involve warehousing, transportation,
bulk packaging, material handling, etc.
• Physical evidence:
Hyperlocal pharmacy app are the contact points. The services they provide are tangible in
nature. They provide bills, medical reports which are the physical evidences. Interaction of
customer and the staff is also included in physical evidence along with people.
• People:
There are sales people, managers, staff and pharmacists which forms an organization. People
is perhaps another most important aspect and the element of retail marketing business. People

in the company are the ones that help the customers to find their product to help them with a
particular product. It also includes the capacity of the staff and the efficiency and availability.
The staff should be capable and efficient to carry out the functions of the company smoothly.
The interaction of the staff with customers should be a profession as well behaved and helpful.
• Process:
Process is defined as the way through which a customer has to undergo to a vail the services.
Assisting, monitoring and counselling the patients is a part of the process that app company
manages. The pharmacist also assists in illnesses queries, and provide basic medication
solutions which all is the part of the process. Hence this gives an overview of marketing mix
of Hyperlocal retail pharmacy app business.
4.5.2 STP Analysis- Segmentation, Targeting and Positioning:
1. Segmentation:
Market Segmentation is a process of dividing a market into distinct groups of buyers with
different needs, characteristics, or behaviour that might require separate products or marketing
programs is called Market Segmentation (Kotler and Armstrong, 2006). Hyperlocal retail
pharmacy app will focus on Socio-Economic segmentation base in consumer markets as it will
have a concentration on social class people as those who need more information on medication
which will be widely available on the online app/website. Customers also make use of offers
sent by e-mail, newsletter, etc. The biggest customer segment mainly includes young
customers preferring hyperlocal app. The reason for this is online access to detailed product
information on the app web pages, through online counselling, but also through references
provided by the other company clients.
2. Targeting:
After a company has defined market segments, it can enter one or many segments of a given
market and should make decision about how many and which custo mer groups to target . Target

Marketing is a process of evaluating each market segment’s attractiveness and selecting one or
more segments to enter (Kotler and Armstrong, 2006). The concept of target marketing is a
logical implication of the basic philosophy of marketing. Our company will target segments in
which it can profitably generate the greatest customer value and sustain it overtime. At the
highest level, our target patients can probably be defined as anyone who needs prescription
medication or other health-related products. Our app will partner with the retail pharmacy will
be located in hospital neighbourhood with many young families, paediatric patients may be a
large target audience. Our app will also focus on retail pharmacies and customers which are
located near a gym, consider our target audience to be those who are looking for health
supplements and nutritional products. Most people want to feel valued, especially by their
pharmacy. By connecting with our target customers and delivering products or services that fill
their unmet needs, company will create a group of people who identify with our business. When
people feel valued, they will share their experience with others. And maintaining loyal
customers who market on our behalf, with word-of-mouth referrals, can be our best marketing
plan of all.
3. Positioning:
Once the company has decided which market segments to enter it should decide what positions it
wants to occupy in those segments. Market Positioning is arranging for a product to occupy clear,
distinctive, and desirable place relative to competing products in the minds of target customers. A
products position is the place that the product occupies relative to competitors in consumers’ minds.
To be a successful business, we must make digital marketing part of your overall plan. To do that,
it is important to be active on Facebook, by not only posting regularly to our page, but also replying
to comments, answering questions, and addressing reviews (good and bad). In addition, make sure
our two or three differentiators are prominent on our website, Google My Business Page, and all
social media platforms. Not participating in this part of marketing does not mean we won’t have a

presence online. People can still talk about our pharmacy through online reviews and social media
comments. So as the business owner, it is important to control the messaging, or someone else will.

5. Conclusion
This Project report concluded the feasibility study. The study’s objective is to evaluate the
viability of a hyperlocal app for retail pharmacies in Kanpur, Uttar Pradesh. This is an
important step before create a business plan. Business importance and relevance are also
defined.
The project explains related theories such as PESTLE, Potter’s Five Forces, financial and
resources theory, including business idea, business concept, product feasibility, industry and
market feasibility, organizational feasibility and financial feasibility. Furthermore, the project
report also includes the concept of the business plan to give readers a clear picture of the
business. Primary and secondary data is utilized to provide in depth analysis of industry and
market, organization as well and financial requirements.
After analysing all parameters regarding the retail pharmacy market gaps, some of the
suggestions to improve retail pharmacies sale and to improvise the business plan from the side
of retail pharmacies as they should improve their inventory management by moving from
manual inventory management to computerized inventory management. Retail pharmacies
should improve relationship with doctors and must revert back to them in any queries related
with patient medication or for any updated information.

6. BIBLIOGRAPHY
➢ Mohd. Ayub, Prof. M. Mustafa, “consumer buying behavior of retail pharmacy
industry with special references to delhi and ncr, international journal of management
studies”,ISSN(Print) 2249-0302 ISSN (E-)2231-2528, pg.no: 1-17, Vol-IV, Special
Issue-2, November 2017.
➢ Shruti Srivastava, Arun Bhadauria, Sunil Dhaneshwar, Suneel Gupta, 2018, “e
commerce in pharmaceutical business in India: prospects & challenges”, International
Journal of Research and Analytical Reviews, Volume 5, Special Issue, April 2018, E-
ISSN 2348 –1269, Print ISSN 2349-5138, UGC Approved Journal.
➢ Mrinalini Shah, Sumi Jha, 2007,” Emergence of Organized Pharmacy Retail in
India: Challenges and Opportunity”, Journal of Business and Retail Management
Research (JBRMR) Vol. 2 Issue 1 October 2007.
➢ Hana Lostakova, Marketa Curdova, Viktor Janouch,” purchace behavior of E-
pharmacies clients”, ISSN 2029-9338 (E-) ISSN 1822-6515 (CD-ROM), economics
and management: 2012. 17 (3), vol.no: 03, pg.no: 1098-1107.
➢ Prabal Chakraborty and Prof Alok Satsangi, “E- Pharmacy in India: A study on
Digital Marketing perspective”, International Journal of Research in Engineering, IT
and Social Sciences, pg.no: 232-242.
➢ Yogesh D Sabde, Vishal Diwan, Vivek S Saraf, Vijay K Mahadik, Vinod K
Diwan and Ayesha De Costa2, “Mapping private pharmacies and their characteristics
in Ujjain district, Central India”, doi:10.1186/1472-6963-11-351, pg.no: 1-8.
➢ A. Didar Singh, Mr. Jayant Singh, “E-pharmacy in india: last mile access to
medicines”, pg.no: 33-44.
➢ Ankit Goyal, Nirod Kumar Singh, Akshay Zanjurne, “E-pharmacy in india an
exponential growth opportunity”, pg.no: 1-55, 2019.

➢ Yub m. And Mustafa m. 2017. “An overview of unorganized retail pharmacy in
Indian pharama industry”.
➢ Rosalind Miller, Catherine Goodman, 2016, “Performance of retail pharmacies
in low- and middle-income Asian settings: a systematic review”, Health Policy and
Planning, Volume 31, Issue 7, September 2016, Pages 940–953, 08 March 2016.
➢ https://www.mbaskool.com/marketing-mix/services/17444-cvs-pharmacy.html
➢ https://www.pharmacyowners.com/what-a-target-audience-is-and-why-it-
matters-to-your-pharmacy

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MINI PROJECT REPORT

Submitted in partial fulfilment of Master of Business Administration

“HYPERLOCAL APP FOR RETAIL PHARMACIES”

Faculty Guide: Submitted By:

PRANVEER SINGH INSTITUTE OF TECHNOLOGY

Pranveer Singh Institute of Technology

Pranveer Singh Institute of Technology

Pranveer Singh Institute of Technology

Dr. Harit Kumar, Head of Business Administration Department, for their

encouragement, support and guidance in carrying out the project.

under his inspiring guidance.

the goals of this study.

Pranveer Singh Institute of Technology

1. Executive Summary ....................................................................................................... 3

2. DESCRIPTION OF BUSINESS IDEA ..................................................................................... 4

3.1 Retail Pharmacy: .................................................................................................... 5

3.2 Domains of Pharmaceutical Dispensing: .................................................................... 6

3.2.1 Organized retail pharmacy:..................................................................................... 6

3.2.2 Unorganized retail pharmacy: ................................................................................. 6

4. FEASIBILITY STUDY: ......................................................................................................12

4.1 Product/Service Feasibility: .........................................................................................12

4.1.1 Concept Testing:...................................................................................................12

4.1.2 Usability Testing:..................................................................................................13

4.2 Industry/Market Feasibility: ........................................................................................14

4.2.1 PESTLE Analysis: ...................................................................................................15

4.2.2 SWOT Analysis: ....................................................................................................17

4.2.3 Potter’s five forces model:.....................................................................................18

4.3 Organizational Feasibility: ...........................................................................................19

Pranveer Singh Institute of Technology Page | 1

4.5 Market Feasibility: ......................................................................................................21

4.5.1 7 P’s of Market Feasibility:.....................................................................................21

4.5.2 STP Analysis- Segmentation, Targeting and Positioning: ............................................24

Pranveer Singh Institute of Technology Page | 2

pharmacy app business in Kanpur, Uttar Pradesh.

such as PESTLE, Potter’s Five Forces, financial and resources theory.

app for retail pharmacy is a feasible idea.

Pranveer Singh Institute of Technology Page | 3

their door step.

as to decrease the customer trust issues of ordering via E-pharmacies.

penetration of E- pharmacies. Because of the e pharmacy, retail pharmacies lost some

with a business plan.

App will be created for:

• Retail pharmacy shops

• For delivery persons

ordered medicines and delivers it to concerned customer address.

track of medicine delivery.

Pranveer Singh Institute of Technology Page | 4

Pharmaceutical industry is widely fragmented throughout the country. Association Chamber

USD 55 billion by 2020 and which was USD 28 billion in 2017.

and there is a need for more efficient organization of retail pharmacies.

The organized and unorganized pharmacies have to operate together as an outstanding

is a promising trend and is challenged by the regulatory issues.

3.1 Retail Pharmacy:

jobs and community development etc.

Pranveer Singh Institute of Technology Page | 5

3.2.1 Organized retail pharmacy:

unorganized pharmacies work. They follow centralized inventory management system.

List of some retail chain pharmacy are:

which is accredited with international quality certification. Availability of product is 24/7.

3.2.2 Unorganized retail pharmacy:

base sale. Operating margin is to be estimated as 20%

Figure1: Operating Margin of pharmacies distribution channels

Pranveer Singh Institute of Technology Page | 6