GROUP MEMBERS

Suvitha K Vikram AM.BU.P2MBA16056

Swathy S AM.BU.P2MBA16057
Thomas Joy AM.BU.P2MBA16058
Veni Vijayan AM.BU.P2MBA16059
Vidya V AM.BU.P2MBA16060

1mg.com Vignesh S
Vishnu Priya
AM.BU.P2MBA16061
AM.BU.P2MBA16062
STRATEGY MANAGEMENT : GROUP Vishnu S Babu AM.BU.P2MBA16063
6
Vivek Vikram AM.BU.P2MBA16064
Vivek Vijayakumar AM.BU.P2MBA16065
Ibin Iqbal AM.BU.P2MBA16066
AMRITA SCHOOL OF
BUSINESS
 ABOUT THE COMPANY

 Founded : 2012
 Type of company : Private
 Parent : HealthKartplus
 Mission : To make healthcare understandable, accessible and affordable
 Headquarters : Gurgaon, Haryana
 Founders : Prashant Tandon, Vikas Chauhan, Gaurav Agarwal
 Categories : E-Commerce, Internet, Health Care, Retail
 Website : www.1mg.com
 KEY POINTS OF THE COMPANY

 Heart : Content (Read about medicines, articles etc) and

e- pharmacy, e-consultation and e-diagnostics
 USP : Traffic is higher compared to other competitors
 Unique Platform Users : 3.5 million users
 Monthly Platform Visits : 12 million
 Page Views : 40 million
 Cities Covered : 275 ( Tier1,2 And 3 Cities)
 BUSINESS MODEL

 VENDORS : Commissions

 CONTENT : Advertising models (health care companies)

FEATURES

 Fitness Supplements
 Medial Devices
 Personal care
 Trends
 Health conditions
 Ayurveda
 Lab Tests
 Ask Doctor
 Articles
 MARKET OPPORTUNITY

GOVERNMENT INITIATIVES OTHER MARKET OPPORTUNITY

 Goods and Services Tax (GST) - Indian  Reliance JIO with more than 100 million
Pharmaceuticals industry customer base

 'Pharma Vision 2020' aimed at making India a  Trusted by 85 million people

global leader in end-to-end drug manufacture

 Drug Price Control Order and the National

Pharmaceutical Pricing Authority

 Digital Push by the government

 WEAKNESS
SWOT ANALYSIS

STRENGTH
• Deliver medicines to customers doorstep • Delay in delivering to the
• Availability of all medicines at one click destination
• Convenience in placing order through call
or by uploading prescription

OPPORTUNITY THREATS

• Expansion of their business • People depends more on

• Government Initiatives physical stores than
online
• Legality issues
• Government subsidies
PORTER’S FIVE FORCES THREAT OF NEW ENTRY

Low ( Laws
and
regulations)
DEGREE OF RIVALRY
High (Competitive Industry, retailers strength)
BARGAINING POWER OF SUPPLIERS BARGAINING POWER OF BUY

Moderate (Government High (Customers

regulations) – cannot have other choices)
add more on prices

THREAT OF SUBSTITUTE
High (Same
products are
available in the
retail store)
 LEAN Unique Value Unfair Advantage Customer Segments
CANVAS Solution Proposition
• Promise/buy in bulk
• 1mg claims more than 5  Healthcare
million app downloads providers
• Provides innovative  Online customers
Problem and sell at discount
model
• Non-availability of • Online platform. • Customers to access
all brands at one knowledge about healthcare content
• Can buy medicine and tools.
pharmacy store. by placing order by substitutes that can
• Less information often save 80%- 90% on • Acclaim top media
uploading the companies.
on prescription, prescription on the their healthcare bills.
medicines and • E-diagnostics service • Received m-
website or calling. billionth award for
reports aims to bring a similar
• Analyze the trends transparency to lab tests being best app in m-
of best medicines Key Metrics market, providing a health in South-Asia.
and diseases. • Track website traffics complete solution for
• Number of articles consumers most common
produced and healthcare need.
published.
• Online questions Channels
and answers. • Websites
• Blogs
• Social media
COST STRUCTURE  Hosting
 Customer Acquisition costs  People, etc.
 Distribution costs
 Advertisement Revenue.
 Vendor Commissions REVENUE STREAMS
REGULATORY ISSUES

 According to 'Self-regulation Code of Conduct’ an e-pharmacy can only sell medicines with an
e- prescription.
 Medicines can be sold only through the pharmacies which are duly registered under the Drugs
And Cosmetics Act.
 Orders can be taken from the customer either over phone or internet from the areas where
the pharmacy retail license applies.
 E-pharmacy players must partner with government.
 All the medicines delivered must be verified and certified by the registered pharmacist.
 An online pharmacy must ensure a proper mechanism to address the queries and grievances.
 COMPETITORS

 Netmeds.com: Delivers herbal products and healthcare products for

mothers as well as babies.

 Merapharmacy.com: Reminds you about the specified times when

you need to take the medicines.

Medidart.com:Ithasmorethan1.7lakhregisteredusersand delivers medicines to 3000 pin code

COMPETITORS

 Buydrug.in: Buy Drug Pharmacy is a direct pharmacy, not a marketplace. You

can get medicines from Buydrug.in over phone and SMS.

 Medplusmart.com: They don’t have the delivery service facility. We can

search shop for medicines on their website. They will be informed about the
time to pick up your order from the nearest MEd Plus store.

 ApolloPharmacy.in: They have international quality certification, they

operates 24 hours. It offers merchandise of over 4000 products in different
categories.
CONSOLIDATIONS
DATE ACQUIRED TOTAL EQUITY FUNDING TYPE OF THE COMPANY

Dec 14,2016 MediAngels $1M Delivery, Hospitality

Jul 5,2016 Medd $150000 Healthcare, Delivery

INVESTORS
COMPANY CATEGORY INVESTED
AMOUNT

HBM Bio technology,medical,venture $15M

Healthcare capital
Investments AG
Intel Capital Enterprise,Cleantech,venture $6M
capital
Kae Capital Finance $15M
Maverick Finance, venture capital $37M
Capital
Omidyar Financial sevice, venture $41M
Network capital, enterprise software

Sequoia Capital Impact investing, Angel $47M

investment, venture
capital
OPERATIONAL CHALLENGES

• Complex law frame : GREENZONE.

• Structural opacity for the consumer
• Logistics : Storage of medicines ( need more suppliers for fast supply)
• Immediacy
• High risk
 STRATEGIES THEY HAVE APPLIED

 Providing best deals and discounts for new users as well as old users.

 MobiKwik Super cash offer- availed for orders paid via MobiKwik wallet on 1mg. Max. super cash that can be
availed is INR 200.

 Get personalized package suggestions.

 1mg follows promise/buy in bulk and sell at discount model. Since prescription medicine, diagnostics and
preventive healthcare has a huge margin, it allows 1mg to buy in bulk at distributor/manufacturer (medicine) and
service provider (diagnostics & preventive healthcare). And, in turn sell it at discounted rates to consumer.

 1mg tie up with a local medicine retailer in a particular area pin code, all the orders for that particular area are
forwarded to that vendor , he readies the medicine and the delivery boy from 1 mg collects the medicines and
deliver it to the customer. The discounts to the customers are borne by both the retailer and 1mg.

 Focus on analyzing price differences across medicines and providing consumers with the most affordable option.
 STRATEGIES THEY HAVE APPLIED

• 1mg is centered around cheap ‘generic’ medicines, which are drug products usually made once the original patent
has expired, allowing any company to produce the drugs at a much lower cost. It’s both a database of medical
information and an iPhone and Android app for ordering generic drugs via your phone.

• In 2015 1mg joined The Indian Internet Pharmacy Association (IIPA) officially formed with the mission to promote
and protect the public health by ensuring that its members operate in accordance with the existing Drugs &
Cosmetics Rules.

• In 2015 1mg.com acquired Homeobuy to expand to homeopathic medicine space.

• In 2016 1mg bought labs aggregator Medd.in

• After 100 crores Series B Funding 1mg grew to become the “Wikipedia” of medicine information, highlighting saving
potential of 70-80% on medicine costs by considering alternate brands for the same generic salt and creating
transparency for the consumer .
• Focus on creating more value for users using digital platform and technologies. do lot of targeted digital marketing
campaigns.
WHAT SHOULD THEY DO NEXT?

• Rapid Expansion : To cities all over India

• Advertisement model : Revenue
• Schemes : Yearly purchase schemes
• Reminder Mechanism : For customers
• Emergency Requirement : Ambulance service and blood bank (acquisitions)
THANK YOU