A REPORT

ON

A STUDY ON BUSINESS DEVELOPMENT

DISTRIBUTION AND BRAND PROMOTION OF
PHARMA MOBILE APP RX PLUS.

BY

ANKIT
(15BSP0189)

Rx Health Services and Solutions Private Limited

GURGAON

BATCH 2015-17

1
 A REPORT
ON

A STUDY ON BUSINESS DEVELOPMENT

DISTRIBUTION AND BRAND PROMOTION OF
PHARMA MOBILE APP RX PLUS.

BY

ANKIT
(15BSP0189)

Rx Health Services and Solutions Private Limited.

A report submitted in partial fulfilment of the requirement of PGPM Program of
IBS Gurgaon

Distribution List:

Company Guide: Mr. Om Prakash Singh (CEO)

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 AUTHORISATION

This is to certify that the project entitled “STUDY ON BUSINESS DEVELOPMENT

DISTRIBUTION AND BRAND PROMOTION OF PHARMA MOBILE APP RX
PLUS” is submitted as partial fulfilment of the requirement of PGPM Program of ‘IBS
GURGAON’ and is a record of my own bonafide work and has been carried out under the
guidance of my company guide Mr Om Prakash Singh, CEO, Rx Health Services And
Solutions Private Limited and Faculty guide, IBS Gurgaon. This work has not been submitted
else or any other purpose.

ANKIT

15BSP0189

3
 ACKNOWLEDGEMENT

I would like to express my profound gratitude to all those who have directly or indirectly
helped me to accomplish my goals. To start with, I would like to thank the organization Rx
Health Services and Solutions Private Limited for providing me the chance to undertake this
internship study and allowing me to explore the area of finance which was totally new to me
and which would prove out to be very beneficial to me in my future assignments, my studies
and my career ahead.

I would like to thank my Chief Executive Officer for putting his trust in me. I wish to place
on records my deep sense of gratitude and sincere appreciation to my company guide and
mentor, Mr. Om Prakash Singh (CEO), Rx Health Services and Solutions Private Limited for
guiding me throughout the project and giving me all support required.

I would also like to thank my Mentor, Prof. Shweta Sharma without whom this study has not
been completed. I am deeply grateful to him for his invaluable suggestions, feedback and
support throughout my internship. Lastly I would like to thank my family, friends and
colleagues for their valuable help and support.

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 TABLE OF CONTENTS

PARTICULARS PAGE NUMBER

Abstract 4
Need of the Study 5
E-Commerce in INDIA 6
E-Commerce in Pharmacy 7
Online pharmacy over the Internet 8
Benefits of online pharmacy 9
Company Overview 10
Recommendation 11
Segmenting 12
Marketing Mix 13

SWOT Analysis 14
Michale Porter Analysis 16
Detailed progress of project and result 17
obtained till date
Future Prospect 20

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 Executive Summary
This project report is the planning activity for the summer project at RX health services and
solutions private limited in Gurgaon, India. The report provides a comprehensive knowledge
about healthcare industry its’ scope and weaknesses in healthcare system in India. The report
is focuses Health Information Systems Plan (HISP) and also the awareness of healthcare
system in India.

India being a country with a population over a billion and such a vast population requires
large number of medical services but it’s not the case. Only a fraction of Medical service
providers are there to serve such a large population and even the people of the country is also
not aware about the healthcare facilities provided by private players in the market. People
living in an area find hard to locate a doctor, ambulance and other services mainly outsiders,
until and unless they are living in that specified area for a longer period of time. To help
under such circumstances, RxPlus entered with a solution by building a Healthcare
Information System and also started to create awareness among the people of the country
especially in 4 metropolitan cities. So by seeing this there is multiple opportunities are
available in healthcare industry for employment and future business. As RxPlus is already in
Healthcare and its name they come with a web portal called rxplus.in to act as middlemen
between healthcare facilities seekers and the healthcare facilities providers.

In today’s rapidly changing world of e-commerce, almost anything can be bought over the
Internet and delivered right to your front door. Virtually every day there is news of yet
another company selling some type of product online. We have done Digital campaign.

Digital campaign will focus in some key issues of irregular medicinal habit and find a
medicines at doorstep with preferred discounts. Promote services through newsletter and sms
campaign. We follow a basic three steps that is click, upload, and deliver. To get more
customer base we have convinced customer to download our App RX plus

This Information System not only provides the information about medical service providers
but will also help in monitoring and improvement for the Health of populations. It will act as
a single platform where all medical stakeholders can interact with each other. As internet is
not available at everywhere for the patients to avail the information about health facilities, so
for availing the information they have two more options via phone call and SMS. It gives
outstanding functions such as selecting and searching the faculty and facility available at
various healthcare stakeholders. This service will provide patient a new kind of connectivity
with healthcare service providers with an additional option for maintaining Electronic Health
Records for them.

From the internship we came to know that the scope of healthcare industry is immense and
there are so many business opportunities are present for IT industry.

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 LIST OF ILLUSTRATIONS

PARTICULARS PAGE NUMBER

MUTUAL FUNDS STRUCTURE 11
GROWTH IN ASSETS UNDER MANAGEMENT 21
Current Asset Under Management Of the Companies In Mutual 22
Funds
IDFC Premier Equity Fund Holdings 27
Birla Sun Life Equity Fund Holdings 28
ICICI Prudential Dynamic Plan Holdings 29
Reliance Quant plus Fund Holdings 30
HDFC Equity Fund Holdings 31
Risk Measure of the Equity Funds 32
COMPARISION OF THE FUNDS ON THE BASIS OF THEIR 33
RETURN
IDFC Dynamic Bond Fund Holdings 34
Birla Sun Life Dynamic Bond Fund Holdings 35
ICICI Prudential Income Plan Holdings 36
Reliance Dynamic Bond Fund Holdings 37
HDFC Floating Rate Income Fund Holdings 38
Debt Fund Analysis 39
COMPARISION OF THE DEBT FUNDS ON THE BASIS OF 40
THEIR RETURN
IDFC Tax Advantage (ELSS) Fund Holdings 41
Birla Sun Life Tax Relief 96 Holdings 42
ICICI Prudential Tax Plan Holdings 43
Reliance Tax Saver ELSS Fund Holdings 44
HDFC Tax Saver ELSS Holdings 45
Tax Saving Fund Analysis 46
COMPARISION OF THE TAX SAVING FUNDS ON THE BASIS 47
OF THEIR RETURN
COMPARISION OF COMPANIES ON THE BASIS OF THEIR 48
AUM
Summary of Responses of Questionnaire 49
Regression Analysis: 54
Factor Analysis 57
INTRODUCTION

Health Care Industry:

The health care industry, or medical industry, is the sector of the economic system that
provides goods and services to treat patients with curative, preventive, rehabilitative,
palliative, or, at times, unnecessary care. The modern health care sector is divided into many
sub-sectors, and depends on interdisciplinary teams of trained professionals and
paraprofessionals to meet health needs of individuals and populations.

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The health care industry is one of the world's largest and fastest-growing industries.
Consuming over 10 percent of gross domestic product (GDP) of most developed nations,
health care can form an enormous part of a country's economy.

In the greater India, the hospitals are run by government, charitable trusts and by private
organizations. The government hospitals in rural areas are called the (PHC)s primary health
centre. Major hospitals are located in district head quarters or major cities. Apart from the
modern system of medicine, traditional and indigenous medicinal systems like Ayurvedic
systems are in practice throughout the country. The Modern System of Medicine is regulated
by the Medical Council of India, whereas the Alternative systems recognised by Government
of India are regulated by the Department of AYUSH (an acronym for Ayurvedic, Yoga,
Unani, Siddha & Homeopathy) under the Ministry of Health, Government of India. PHCs are
non-existent in most places, due to poor pay and scarcity of resources. Patients generally
prefer private health clinics. These days some of the major corporate hospitals are attracting
patients from neighboring countries such as Pakistan, countries in the Middle East and some
European countries by providing quality treatment at low cost. In 2014, India spent 6% of
GDP on health care, or US$36 per capita. Of that, approximately 19% was government
expenditure.

Healthcare in India features a universal health care system run by the constituent states and
territories of India. The Constitution charges every state with "raising of the level of nutrition
and the standard of living of its people and the improvement of public health as among its
primary duties". The National Health Policy was endorsed by the Parliament of India in 1983
and updated in 2002.

Malnutrition

47% of India’s children below the age of three are malnourished, almost twice the statistics of
sub-Saharan African region of 28%. World Bank estimates this figure to be 60 million
children out of a global estimated total of 146 million. Although India’s economy grew 50%
from 2001-2006, its child-malnutrition rate only dropped 1%, lagging behind countries of
similar growth rate. Malnutrition impedes the social and cognitive development of a child,
reducing his educational attainment and income as an adult. These irreversible damages result
in lower productivity.

Diseases

Diseases such as dengue fever, hepatitis, tuberculosis, malaria and pneumonia continue to
plague India due to increased resistance to drugs. India is ranked 3rd among the countries
with the most number of HIV-infected. Diarrheal diseases are the primary causes of early
childhood mortality. These diseases can be attributed to poor sanitation and inadequate safe
drinking water in India.

Poor Sanitation

As more than 122 million households have no toilets and 33% lack access to latrines, over
50% of the population (638 million) defecates in the open. This is relatively higher than
Bangladesh and Brazil (7%) and China (4%). Although 211 million people gained access to
improved sanitation from 1990-2008, only 31% uses them. 11% of the Indian rural families

8
dispose of child stools safely whereas 80% of the population leave their stools in the open or
throw them into the garbage. Open air defecation leads to the spreading of diseases and
malnutrition through parasitic and bacterial infections.

Inadequate Safe Drinking Water

Access to protected sources of drinking water has improved from 68% of the population in
1990 to 88% in 2008. However, only 26% of the slum population has access to safe drinking
water and 25% of the total population has drinking water on their premises. This problem is
exacerbated by falling levels of groundwater, caused mainly by increasing extraction for
irrigation. Insufficient maintenance of the environment around water sources, groundwater
pollution, excessive arsenic and fluoride in drinking water pose a major threat to India’s
health.

Healthcare NGO

The Smile Foundation is one of the top ten NGOs of India. It was formed in year 2002 with
the objective of providing education and health to the underprivileged. According to the
statistics provided by the foundation, urban population which occupies only 1/4 of India’s
poor population has less than 4% of basic healthcare facilities provided by the government.
Therefore access to healthcare remains a challenge to India’s health sector both in the urban
and rural areas.

In addition, The Smile Foundation believes that the two main reasons for the poor health
conditions of the people in India are the lack of awareness and the high opportunity cost
incurred by the people when they forgo a day of wages to seek medical consultations. To
tackle these issues, the foundation brings forth a series of initiatives which include bringing
healthcare services to the needy, promoting healthcare awareness and changing the mindset
of the people towards seeking medical aid.

One such initiative would be the introduction of the Mobile Health Van - Smile on Wheels.
These health vans travel into inaccessible places to reach out to the inhabitants and provide
them with primary healthcare. Till date, the foundation has 10 such mobile vans located in
126 areas that are spread across 9 states of India. With its wide reach to the population of
India, the program has benefited over 250,000 people.

Healthcare Infrastructure

The Indian healthcare industry is seen to be growing at a rapid pace and is expected to
become a US$280 billion industry by 2020.

Rising income levels and a growing elderly population are all factors that are driving this
growth. In addition, changing demographics, disease profiles and the shift from chronic to
lifestyle diseases in the country has led to increased spending on healthcare delivery.

In order to meet manpower shortages and reach world standards India would require
investments of up to $20 billion over the next 5 years.

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 Healthcare industry trend

Health care industry trends manifest an upward growth but several areas need to be
attended to for enhancing health care services for the common man. Different countries like
Indonesia, Russia, Mexico, Brazil, India, Turkey and China comprise approximately 1/5th of
the worldwide health care sales. Health care industry trends also suggest that the medical
related conditions in the developing countries which are chronic in nature will be similar to
the ones existing in the developed countries. In order to meet international standards, the
existing health care industry is required to alter the mode of operation for generation of
higher revenue and greater contribution to the Gross Domestic Product of the country.

Facts about the health care industry trends:

 The cost related to health care was seen to rise in the 90s. Americans not possessing
any health care coverage or any kind of health insurance attained the 42 million mark.

 It has been anticipated that the elderly sick people will impose considerable stress on
the health care sector of US.

 The total number of different health care programs and different health care insurance
coverage are likely to increase in the coming years. There has been an escalation in
the medical plans from 42.5 million in the year 2006. The health care industry trends
also show that it is likely to attain 70.2 million in the year 2025.

 The health care industry trends also indicate that the expenses for preventive measures
is negligible as compared to the amount spent on treating chronic diseases which
accounts for 70% of the fund used for health care.

 Trends suggest that there are very less Americans (around 23%) who make an effort to
prevent any lifestyle diseases by consuming the optimum level of vegetable and fruits.

Development of Healthcare in India

In mid 80’s most of the hospitals in India were owned by the government and treatment was
free of cost. The implementation of the health policy in 1983 had encouraged private sector to
participate in healthcare delivery. Therefore, with private sector participation, various private
entities have blossomed in India of which 97% are in the unorganized sector and some are still
not registered. Such establishment has called for the provisions for regulations, standards and
accreditation. Through 1986–1996, growth in the private sector surpassed that in the public
sector by a wide margin as the private sector is a preferred choice compared to public
healthcare due to greater perception of ‘assurance’ in minds of the Indian consumer.

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The Indian healthcare industry is seen to be growing at a rapid pace and is expected to become
a USD 280 billion industry by 2020. According to the Investment Commission of India, the
healthcare sector has experienced phenomenal growth of 12% per annum in the last 4 years.
Rising income levels and a growing elderly population are the driving factors of such growth.
In addition, changing demographics, disease profiles and the shift from chronic to lifestyle
diseases in the country has led to the increased spending on healthcare delivery. Despite
having centers of excellence in healthcare delivery, these facilities are limited and are
inadequate.

In order to meet manpower shortages and be on par with the world standards, India would
require up to USD 20 billion investments over the next 5 years. It has been estimated that
40% of the primary health centers in India are understaffed. According to WHO’s statistics,
there are over 250 medical colleges in the modern system of medicine and over 400 in the
Indian system of medicine and homeopathy (ISM&H) and India produces over 250,000
doctors annually in the modern system of medicine and a similar number of ISM&H
practitioners, nurses and para professionals. The existence of policy regulations and the
establishment of public private partnerships are solutions to the problem of manpower
shortage to propel the growing healthcare industry. India is now looking at establishing
academic medical centers (AMCs) for the delivery of higher quality care with leading
examples such as The Manipal Group, Fortis Hospitals, Appollo Hospitals, & All ndia
Institute of Medical Sciences (AIIMS) which have been set up. In the year of 2016 RxPlus
has entered in the national healthcare information exchange process to facilitate the right
healthcare information services to the citizens of India

Rxplus.in is a comprehensive App and web based service powered by Rx Health Services
and Solutions Private Limited Company. Rxplus.in has the unique feature of Search and
Select. This service in India has started in the month of February 2016 in the 4 metropolitan
cities (Delhi NCR, Mumbai, Hyderabad and Kolkata) of India. Rxplus is also trying to go
down the line in Cities of India such as Bangalore, Lucknow etc. to provide healthcare
information exchange.

Scope of Healthcare Industry

Health care industry focuses on treating patients suffering from any ailment. The treatment is
done by trained professionals. Now let’s focus on Indian scenario.

Although Indian health care system has gradually improved over the years, it still lags behind
our neighbouring countries. The poor state of this industry may be attributed to lack of
enough government push, as estimates reveal that per capita health care spending is far below

11
international recommendations. It is to be noted that Developed nations spend about 10% of
their GDP in health care, while Indian spending is 5.25% of GDP.

The focus is definitely catching up on this industry and approximately 12% of the scope
offered in India has been tapped. Currently valued at approximately $17 billion, it is expected
to grow at 13% every year. The health care spending can reach $53 billion to $73 billion
making it 6.2% of our GDP in next 5 years. Still leaves lot of scope to match up with
standards set by the developed countries

This industry in India provides employment to about 4 million people in various categories.
So it can be any one's guess on number of positions that would be created in next 5 years. The
vast difference in treatment costs in India vs Developed countries, and the improving
standards and health care infrastructure as placed India as one of the favourite destinations for
treatment. Several foreign companies are eying this opportunity and willing to invest in
India's health care business.

This would definitely give rise to the medical tourism industry, which would help in
providing a financial push more on Medical tourism some time later.

Opportunities in Health Care Sector

Healthcare opportunities can be categorized broadly under four heads:

1. Medicine

2. Dentistry

3. Nursing

4. Pharmacy

Each of these categories contains multiple job opportunities, including the support
mechanism.

1. Medicine is the science and art of healing. It encompasses a variety of health care practices
evolved to maintain and restore health by the prevention and treatment of illness.
Contemporary medicine applies health science, biomedical research, and medical technology
to diagnose and treat injury and disease, typically through medication, surgery, or some other
form of therapy. Though medical technology and clinical expertise are pivotal to
contemporary medicine, successful face-to-face relief of actual suffering continues to require
the application of ordinary human feeling and compassion.
2. Dentistry is the branch of medicine that is involved in the study, diagnosis, prevention,
and treatment of diseases, disorders and conditions of the oral cavity, maxillofacial area and
the adjacent and associated structures and their impact on the human body. Dentistry is
widely considered necessary for complete overall health. Those who practice dentistry are

12
known as dentists. The dentist's supporting team aids in providing oral health services, which
includes dental assistants, dental hygienists, dental technicians, and dental therapists.

3. Nursing is a healthcare profession focused on the care of individuals, families, and

communities so they may attain, maintain, or recover optimal health and quality of life from
conception to death. Nurses work in a large variety of specialties where they work
independently and as part of a team to assess, plan, implement and evaluate care.
Nursing Science is a field of knowledge based on the contributions of nursing
scientist through peer reviewed scholarly journals and evidenced-based practice.

4. Pharmacy is the health profession that links the health sciences with the chemical sciences
and it is charged with ensuring the safe and effective use of pharmaceutical drugs.

The scope of pharmacy practice includes more traditional roles such as compounding and
dispensing medications, and it also includes more modern services related to health care,
including clinical services, reviewing medications for safety and efficacy, and providing drug
information. Pharmacists, therefore, are the experts on drug therapy and are the primary
health professionals who optimize medication use to provide patients with positive health
outcomes.

5. Allied Health professionals are clinical health care professions distinct from medicine,
dentistry, and nursing. Allied health professionals make up 60 percent of the total health
workforce. They work in health care teams to make the healthcare system function by
providing a range of diagnostic, technical, therapeutic and direct patient care and support
services that are critical to the other health professionals they work with and the patients they
serve.

Present Health care System in India

Inflation is sky rocketing, and there is nothing new in that. Over the past couple of years,
India has seen a steady rise in Inflation, which is not being complimented by the rise in salary
of majority of the population of India. The facilities offered by the Public Health Care system
is just not enough for the majority, Private Health care needs to supplement it. The
Government Hospitals are overburdened with long queues of patients and limited staff, and to
add to the worries, most of the high end medical equipment’s primarily lie un-utilized due to
lack of skilled technicians. So it is no rocket science to deduce that middle class in India are
looking to Private health care offerings.
Private hospitals in India are comparatively very expensive for treatments. Patients are
required to pay through their nose to get the required treatment. This should be an eye-opener
for the Government to justify the tax payer, by focusing more on Public Heath care system.
Although, lots of initiatives have been taken, but this has not materialized at the execution
level.

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Health care industry in India and the GDP

Expenses incurred by the Indian Government on health care are the highest amongst
developing countries. India's expense on health care sector comprises 5.25% of the GDP.
Chances are that the health care market could experience a hike and attain a figure ranging
between $53-$73 billion five years from now. This in turn will reflect an increase in the gross
domestic product to 6.2% GDP. The health care industry in India earns revenues accounting
for 5.2% of gross domestic product.
Employment opportunities are provided to as many as 4 million people in the health care
segment or other related sectors catering to the health care industry in India in some way or
the other. Owing to the vast differences in medical expenses in western countries and that of
India, India has become one of the favourite for health care treatments.

Due to the progressive nature of the health care sector in India, several foreign companies are
intending to invest in the country.

SWOT Analysis of Indian Healthcare Industry:

Strengths

 Low cost of production.

 Large pool of installed capacities

 Efficient technologies for large number of Generics.

 Large pool of skilled technical manpower.

Weakness

 Very low key R&D.

 Low share of India in World Pharmaceutical Production (1.2% of world production

but having 16.1% of world's population).

 Very low level of Biotechnology in India and also for New Drug Discovery Systems.

 Lack of experience in International Trade.

 Low level of strategic planning for future and also for technology forecasting.

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Opportunities

 Aging of the world population.

 Growing incomes.

 Growing attention for health.

 New diagnoses and new social diseases.

 Spreading prophylactic approaches.

 Saturation point of market is far away.

 New therapy approaches.

 New delivery systems.

 Spreading attitude for soft medication (OTC drugs).

 Spreading use of Generic Drugs.

 Globalization

 Easier international trading.

Threats

 Containment of rising health-care cost.

 High Cost of discovering new products and fewer discoveries.

 Stricter registration procedures.

 High entry cost in newer markets.

 High cost of sales and marketing.

 Competition, particularly from generic products.

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  More potential new drugs and more efficient therapies.

NEED OF THE STUDY

The modern mobile app pharma are trying to bring a change in the buying habits of the
consumers. But will the efforts meet the desired results?

Neighbourhood Chemists, labelled under the ‘unorganized’ category have been operating in
the Indian market for the past many decades now. However, the rise in technology has given
birth to mobile app in the pharma sector. In fact, names like Netmed, Med Plus, Medicdeal,
Medidart and Mchemist have been trying to bring a change in the buying habits of the
consumers.

During the year 2012-13, the market recorded a growth of 16.5%, as per the data from All
Indian Origin Chemists & Distributors (AIOCD). Currently valued at Rs 65,000 crore (US$
11.58 billion), market estimates suggest that this segment will grow at a rate of 15 per cent
CAGR over the next 5 years. But have these mobile app have been able to attract enough
consumers. But as the Indian consumer gets more concerned about the health issues, it is
expected that there will be a gradual shift towards the pharma mobile application.

Apart from the fact that pharma mobile application offer a one-stop shop for all health needs
to the consumers, it is the confidence that the consumer is getting genuine medicines which
gives them the competitive edge. Share of fake/counterfeit medicines is estimated at 15 - 20
per cent of the total Indian market, as per a report from FICCI’s National Initiative against
Piracy and Counterfeiting. For the record, pharma application stands at a much high
percentage in markets like China, Russia, Mexico and Brazil as compared to India. For
instance, as per a McKinsey report, Chinese pharma market has a 50 per cent share while
Russia, Mexico and Brazil stand at 36 percent, 35 percent and 30 percent respectively.

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Even after the clear advantages these pharma application holdover the conventional
pharmacists, it will take some time for the consumers to move beyond their ‘trusted’
neighbourhood chemists. Clearly, there is a lot of headroom in this segment of the market and
as a result, organized players are currently in a phase to build a network that will be future-
ready. In other words, there is no doubt over the fact that the share of pharma application is
well poised to go up in the coming times and one should not be surprised to see many more
established names joining this industry in the near future.

OBJECTIVE OF THE STUDY

The objectives of the Study are;

 To study the market potential of Healthcare sector in Delhi NCR.

 To understand competitive market for the Rx Health Services And Solutions Private
Limited Company.

 To understand people mentality about Rx Health Services And Solutions Private Limited
Company.

 To understand the present situation of the health sector in India.

 To understand the future business opportunities around Healthcare industry.

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 RESEARCH METHODOLOGY
The project was carried out for understanding advertising and sales promotion
strategies of Healthcare Business in India Its Future Growth and opportunities for the
industry. Healthcare sector comprises of many segments, which include hospitals, medical
infrastructure, medical devices, clinical trials, outsourcing, telemedicine, and health
insurance. The global economic slowdown has affected many segments of the economy.
However, as comparison, the healthcare sector has outperformed the broader market.
Health care system runs by the constituent states and territories of India. The Constitution
charges every state with "rising of the level of nutrition and the standard of living of its
people and the improvement of public health as among its primary duties". The National
Health Policy was endorsed by the Parliament of India in 1983 and updated in 2002.
However, the government sector is understaffed and underfinanced; poor services at state-run
hospitals force many people to visit private medical practitioners.
India’s pharmaceutical market is highly dynamic and presents significant upsides for
both local firms and foreign multinationals. However, as with all emerging markets, there are
under-appreciated risks to investments. BMI forecasts that combined sales of prescription
drugs and over-the-counter (OTC) medicines will increase from US$15.7bn in 2009 to
US$54.2bn in 2019 – a compound annual growth rate of 13.2%.In our Q410 Business
Environment Ratings, India has maintained its status as the eight most attractive
pharmaceutical market in Asia Pacific, ahead of Malaysia but behind Hong Kong. According
to the World Health Organization (WHO), private per capita expenditures on health increased
by more than 15% in the last 5 years in emerging markets such as Malaysia, Vietnam,
Indonesia and India. Moreover, based on medical claims analysis, premium costs in Asia will
double in the next five years.

18
The main competitors of Rxplus.in (A product of Rx Health Services And Solutions Private
Limited) are Practo.Com, Just Dial, HealthCare Magic and yellow pages companies and they
are well established in the existing market.
Practo Technologies Pvt. Ltd, India’s largest and best-funded healthcare technology start-up, is
maximizing its use cases by adding a bunch of offerings apart from its doctor discovery service.
Practo helps you find and book appointments with doctors, clinics, salons & spas, gyms and
diagnostic labs in your city. You can also ask free health-related questions on Consult and get
free answers from doctors and health experts. You can also create and manage your health
records or read exclusive health tips from doctors and health experts. Practo lists 200,000+
verified doctors and clinic profiles, so you have the widest range of options to choose from
Just Dial Private Limited, a company incorporated under the Companies Act 1956 with its
registered office at Building M, 501-B, Palm Court Complex, Besides Goregaon Sports
Complex, New Link Road, Malad (W), Mumbai 400 064, that governs your use of the search
services offered by JustDial through its website www.justdial.com ("Website"), telephone
search, SMS, WAP or any other medium using which JustDial may provide the search
services (collectively "Media"). When you access or use any of the Media you agree to be
bound by these Terms and Conditions.
Yellow Pages refer to a telephone directory of businesses, categorized according to the
product or service provided. As the name suggests, such directories were originally printed on
yellow paper, as opposed to white pages for non-commercial listings. The traditional term
Yellow Pages is now also applied to online directories of businesses.

Problem Identification and Problem Formulation:

The hospital services market represents one of the mοѕt lucrative segments of the Indian
healthcare industry. Various factors such increasing prevalence of diseases, improving
affordability and rising penetration of health insurance continue to fuel growth in the Indian
hospital industry. With continuous increase in demand, the industry expected to witness
growth of around 8% in 2009 over the previous year.
Government hospitals, some of which are among the best hospitals in India, provide
treatment at taxpayer expense. Most essential drugs are offered free of charge in these
hospitals. Government hospitals provide treatment either free or at minimal charges. For
example, an outpatient card at AIIMS (one of the best hospitals in India) costs a onetime fee
of rupees 10 (around 20 cents US) and thereafter outpatient medical advice is free. In-hospital
treatment costs depend on financial condition of the patient and facilities utilized by him but
are usually much less than the private sector. For instance, a patient is waived treatment costs
if he is below poverty line. Another patient may seek for an air-conditioned room if he is
willing to pay extra for it. The charges for basic in-hospital treatment and investigations are
much less compared to the private sector. The cost for these subsidies comes from annual
allocations from the central and state governments.
By 2019, revenues estimated to reach USD 52-69 billion, 6.2 to 8.5 per cent of GDP;
employment will double.
 The pattern of healthcare spending will also change
 The share of outpatient spend will decrease from 61 percent to 53 per cent
 Lifestyle diseases will drive the growth of outpatient spend

19
 Lifestyle diseases will drive the growth of outpatient spend Cancer and heart diseases will
drive most of the growth of inpatient spend
 80,000 additional hospital beds required every year for the next 3 to 4 years to meet
growing demands

Business Opportunities for healthcare industry:

1. India needs an investment of USD 203 billion to meet the ‘Health for All’ target by 2017
2. Significant requirement in increase in number of beds per 1000 population – from 3 beds
per 1000 population to 5 beds per 1000 population by 2017 (in both private and public)
3. This translates to an addition of 2.2 million beds requiring investment of USD 77.9
billion, majority of which will come from the private participation
4. Increasing preference for private medical care amongst the urban population
5. High growth domestic market arising from increasing health awareness
6. Rapid growth in private sector companies owning and managing hospitals
7. Cost of advanced surgeries in India is about 10 per cent of that in USA

Challenges for Healthcare Industry:

Various Challenges faced by healthcare industry are
 Low consumer awareness about differences in quality of care across different provider
types
 By 2017, 4,53,785 doctors and 1,290,174 more nurses will be required by the Indian
Healthcare Industry, which is both a big challenge and an opportunity
Having well organized healthcare system the services provided by healthcare industry is not
up to the mark. The people of the country are facing the problem for getting right information
at right time. The Product of Rxplus (rxplus.in) is made with the motive to provide free
customer assistance 24x7.

Scope of the study :

Though the study is limited to the rxplus.in (A product of Rx Health Services And Solutions
Private Limited) within the area of Delhi NCR, it is very useful for those coming healthcare
industries to take strategies of advertisement and sales promotion for their product. It is also
useful to the stakeholders for the awareness of present situation of Indian health services and
the need of healthcare industries.

Review of Literature:

20
The study of “Advertising and sales promotion strategies of rxplus.in was carried out for
understanding advertising and sales promotion strategies of Healthcare Business in India
and its future growth and opportunities. Healthcare sector comprises of many segments,
which include hospitals, medical infrastructure, medical devices, clinical trials, outsourcing,
telemedicine, and health insurance. The global economic slowdown has affected many
segments of the economy, however the healthcare Industry was one of them was not affected
by the economic slowdown. The healthcare industry is growing rapidly and the industry has
lot of scope in the future. The scope of healthcare industry is not only limited with the
healthcare but also it also providing opportunities to several sectors such as IT (Information
Technology), Insurance, Tourism, etc.
In modern world healthcare is providing several opportunities to IT Industry in term of
electronic medical records (EMR), Appointment Scheduler. The concept of EMR is getting
popularity among the healthcare stake holders. The industry is providing opportunity to
Insurance sector in terms of health insurance. Healthcare industry is providing scope to the
Tourism Field in the form of Medical Tourism. The main aim of the market research of
Practo.com was to understand the scope of healthcare information exchange because it is
totally innovative concept in India. The secondary objective of this research was to develop a
database for rxplus.in about healthcare service providers such as their timing of availability,
their experience, their expertise, their charges, etc.

Public and Private share of Hospitals :

21
(Source: Ministry of Health and Family Welfare)

Information Technology in Healthcare Industry:

The healthcare industry today after twenty five years, since computers started influencing
our society, is standing at the threshold of a world of possibilities thrown up by technologies
such as Virtual Reality, Cyber surgery, Micro - robotic Surgery and 3D image modelling. It is
said that the Internet should be used for the benefit of mankind. Internet pundits have
always felt that development and delivery of Medicine will be one area where this medium
is likely to have immense benefit to mankind.

For e-healthcare and telemedicine to emerge as a viable alternative modality for

delivering medical care and expertise there are a few preconditions that are to be met.
Some of these are,

 Adaptation of Information technology by hospitals especially in terms of networking

and Hospital Management systems.

 Increasing awareness on IT among medical professionals.

 Better Internet access; possibility the mad vent of broadband in India that can
transfer video files faster.

 4Standardization of various protocols (like DICOM in teleradiology) and acceptance of

these protocols by the relevant equipment manufacturers.

 Decline in the cost of telemedicine hardware to make it more financially viable.

 Govt. encourages a Public – Private enterprise.

22
  Large Corporate leading in overseas healthcare contracts - TCS, Cognizant, etc.

At present, the major constraint is in terms of the financial viability of e-healthcare

initiatives. However there have been several isolated initiatives from various organizations
and hospitals for implementation of projects. For example The Indian Space and Research
Organization has today 32 telemedicine location in India and is investing heavily to help
Indian healthcare to graduate in this technology and then use it for its own purpose in the
future to monitor Indian astronauts who undertake journeys in space. Most of the
developments in this field are likely to focus around the needs of ISRO. The answer to make
projects financially viable also probably lies in pooling together resources by various facilities
within a geographic locality and sharing the benefits and revenues thus created. To
elaborate on this point, several

Hospitals within a city like e.g. Salem can share a common Tele-pathology service or
Teleradiology service. The benefits of such a pooled service are obvious. Investigations
can be viewed by a group of expert consultants. Such a model will reduce the initial project
costs and with the patient traffic from several affiliated hospitals can achieve economy of
scale and thus reduce costs of trained manpower and material costs and also provide a very
efficient and optimal service to the community.

E-Healthcare Solution:
India is well placed and potentially the ideal location for experimenting with e healthcare
solutions for the following reasons:

 India has best computer Technocrats India has a very skilled medical fraternity
private healthcare emerging as a key-player in the country Indian Healthcare
spending likely to increase to 200,000 crores by 2019 from present 86,0000 crore.
Potentially India a very suitable location and resources pumped in this sector now are
likely to be of great benefit

 Rxplus is engaged in providing the latest in nationally recognized medical care to

patients with a variety of ailments and medical conditions.

 Rxplus ensures patient access to expert care for any specialty. This unique network
architecture provides expert care to our patients and a level of confidence in
receiving the latest Medicare to offer.

Healthcare Tele-medicine Software

 Browser based

 Built on HL7 and DICOM standards

 Open Source Technology Linux

23
  Offers Real time and delayed Access

 Streaming without transfer, real-time ECHO, US

 Statistical Reporting

 Interface with Legacy Machines

 Flexible clinical reporting formats

Some other healthcare software’s:

Electronic Medical Record (EMR)

Appointment Scheduler

Account Management etc.

E-COMMERCE IN INDIA

In the last five years, online retail -- both direct and through marketplaces going from
nascence to critical mass. So much so, today it has started to threaten the traditional brick-
and-mortar retail. Recognizing the danger, many physical chemist have started to establish or
beef up their online presence. CRISIL Research believes some of them, who play to their
strengths of physical reach and multi-location presence, will be able to build successful and,
more importantly, complementary, business models – just as it happened in the US India’s
online retail industry has grown at a swift pace in the last 5 years from around Rs 15 billion
revenues in 2007-08 to Rs 139 billion in 2012-13, translating into a compounded annual
growth rate (CAGR) of over 56 per cent. The 9-fold growth came on the back of increasing
internet penetration and changing lifestyles.

CRISIL Research expects the buoyant trend to sustain in the medium term, and estimates the
market will grow at a healthy 50-55 per cent CAGR to Rs 504 billion by 2015-16. The entry
of new players in niche segments such as grocery, jewellery and furniture, along with large
investments by existing players in the apparel and electronics verticals, will be the drivers.

In terms of size, India’s online retail industry is very small compared with both organized and
overall (organized + unorganized) retail in the country. This speaks volumes of its potential.
We expect the industry’s revenues to more than double to around 18 per cent of organized
retail by 2016 from around 8 percent in 2013. Yet, its share of the overall retail (organized +

24
unorganized) pie will be just over 1 per cent. That compares with 9-10% in the US and UK,
and around 4-5% in China. Impact on business of traditional retailers evident over the past 4-
5 years, competition from online retailers such as Flipkart (in books, music and electronics),
Myntra and Jabong (in apparel) has eaten into the revenues of physical retailers. Specifically,
competition in the last three years has been intense compelling many to go online even as
their net store additions slowed.

E-COMMERCE IN PHARMACY

The rise of e-commerce in India has led to the emergence of niche healthcare portals in the
country. Gone are the days when one had to go to the neighbourhood chemists for buying
medicines, a handful of healthcare start-ups are now willing to deliver them right at your
doorstep. The rising acceptance of e-commerce among consumers in India has led to the
emergence of niche healthcare portals in the country along with many other niche categories.
At a time when the generic e-commerce category is facing fierce competition, the niche
channels offer better margins and as a result, many niche segments like healthcare, beauty
products, gifting etc. All have come up in the last few years. Current e-commerce market in
India is around US$ 10 billion and is all set to grow multi-fold in the coming years, according
to Internet and Mobile Association of India (IAMAI). Another report from IAMAI and IMRB
suggests that the number of claimed Internet users at 137 million has seen a growth of 16 per
cent over last year. This number is estimated to grow up to 250 million by December 2016.
Out of the total size of the e-commerce industry, the healthcare segment is a small fraction
but it is expected that the convenience and access to the consumers will be a differentiator for
the online segment as compared to the traditional pharma retail. There are many other
websites who focus on individual segments like baby care, beauty products, health
supplements etc.

Some initiatives in market

25
1. Rx Plus.in
2. Drugstore.com
3. Drugsneed.com
4. 1Mg/HealthKart.com
5. Dawaaii.com
6. Medist.in
7. Medplus
8. Netmeds.com
9. MChemist
10. Onerx.in

ONLINE PHARMACY OVER THE INTERNET

Different types of online pharmacy sites

First of all it is important to distinguish different types of online pharmacy

1- Traditional pharmacy services online

There are websites, which offer traditional pharmacy services online only. These pharmacy only based
sites will only dispense medicine to a consumer who has first obtained a prescription from a doctor
and then submitted it to the online pharmacy. Pharmacy-only sites are the least controversial because
they do not actually initiate the drug sale. These sites process valid prescriptions, which have already
been obtained from a licensed physician. The most significant legal problem with these sites occurs
when the pharmacy fails to obtain the appropriate official license for each country where it intends to
do business.

2- Drug stores and Chemist shops

A second type of online pharmacy is referred to as online drug shops. This is an appropriate
description because these web sites are primarily engaged in the sale of drugs. Here, essentially
everything a consumer must do in order to obtain a controlled substance or any other prescription

26
drug, is simply go to the site and purchase the drug with a cash on delivery. With these sites, no
examination is necessary and no medical questionnaire needs to be answered. Online drug shops often
operate from foreign countries and are therefore usually beyond the reach of local law and authorities.
Although many consumers do not realize it, online drug shops are considered illegal by most law
enforcement agencies.

BENEFITS OF ONLINE PHARMACY

Much less controversial is the pharmacy only sites. Here, there is no doubt that under proper
circumstances, pharmacy only sites can provide enormous benefits. The principal advantages most
often cited are:

Lower prices through increased competition among pharmacies; more thorough and private
consultations with a pharmacist;greater access to medicine for seniors or people who live in rural
areas; speed and ease of choosing and ordering products; comparative shopping among different
retailers to get the best deals; access to a huge amount of health care information that is usually
unavailable at a conventional pharmacy. With computer based systems it is also possible to check if
you can prescribe two medicaments together or not. There is much more information.

27
 COMPANY OVERVIEW
Bdizital is an IT company headquartered in Gurgaon that creates software products for the
healthcare industry. RxPlus and DrPlus is an online pharmacy app with centralized hub in
Gurgaon, Haryana at backend.

RxPlus is often regarding as next door online pharmacy. It provide all type of medicine like
allopathic, homeopathic, Ayurveda, cosmetic and baby care products. RxPlus is integrated
with a very user friendly interface, which allows you to handle all your medications under
one platform. All you need to do is take a photograph of the prescription, register and upload
the same to get quality medicines delivered at your door step. RxPlus is an initiative for not
only bringing Pharmacy to doorstep but also help you in maintaining your health record,
online. It’s a platform through which you can order your medicines directly from your mobile
after downloading the Mobile App through Google Play store.

DrPlus allowing patients to search for doctors and conveniently book appointments online to
providing doctors with efficient practice management solutions, the company focuses on
making medical information digitally accessible to patients and doctors. Overall it aims to
create the most efficient healthcare experience for people around the world.

Rx Health Services And Solutions Private Limited, an Indian IT startup catering to the
healthcare industry, the company has reached out to doctors across borders through its
growing suite of practice management products. All focusing on one aim, to improve
healthcare for patients with better practice management for doctors.

28
RxPlus.in the one and only place for reliable relevant and complete health information.
Health Line 24x7 is a one-stop destination for in-depth and exhaustive patient centric
information on healthcare.

At RxPlus.in, the consumer can search a comprehensive database of all the healthcare service
providers listed from across the five metros. These healthcare service providers have been
categorized on basis of various parameters of consumer’s choice to make things easier. This
categorization will help you to compare and evaluate the healthcare service provider not only
on the criteria of location and specialization but also on other benchmarks like- experience
level, education details, fee, timing, emergency handling, home visit, awards won, etc. Our
aim is to help you select the most suitable healthcare service provider. RxPlus.in does not end
with the search; we even have the facility to schedule appointment of the healthcare
practitioner for you and free home delivery of medicine

RxPlus.in provides robust information on all medicines categorized by pharmacology - action

time, common dosage, what to do in a missed dose, over dose, precaution during pregnancy,
for kids and for old age, side effects, used to treat diseases, price comparisons by various
manufactures, availability in locations, brands available, substitutes or alternatives, etc.
At RxPlus.in the consumer gets access to all this information and more. Apart from being a
credible source of health information, RxPlus.in is also a platform where you can connect to
people suffering from similar diseases/conditions; take opinion and guidance from expert
medical professionals, etc. on the various discussion forums.

MISSION

To enhance healthcare experience for people around the world. It is working towards
transforming the way people find doctors online, the way they interact over phone and help
doctors manage their practice with ease.

PRODUCTS

RxPlus and DrPlus, is a comprehensive practice management solution which helps doctors to
schedule appointments, send SMS/email reminders to their patients, access patient’s medical
records, and conduct billing and accounting. It comes along with a cloud telephony solution
that gives doctors a single contact number, allowing patients to book appointments 24/7 and
reach out to doctors during a medical emergency.

DrPlus Search is an online platform for patients to find doctors online and book instant
confirmed appointments with them.

29
Advantage of Rx Plus and Dr Plus App

 Orders are executed at the doorstep of customer through human interface termed as health
buddy.

 Minimum Order for Free Delivery Rs100/-

 Two hours’ time commitment for delivery.

 Already have 10000+ customer touch base in the Delhi NCR and Mumbai.

 The motto or goal is to provide customer satisfaction and one stop solution for any
prescribed medicine requirement.

 Appointment Scheduler (Book, cancel and reschedule appointments with ease.)

 Total Security (Access and transfer your data securely on Virtual Private Cloud.)
 Digital Health Records (Keeping track of your patient reports and prescriptions was
never this easy.)
 Great Customer Support (Reach our experts on phone, live chat and email anytime.)
 Follow up reminders (Send out automated SMS and Email reminders for follow up
and routine check-ups.)

30
 Access Anywhere, Anytime (On the go or on a vacation? Your practice is now just a
click away with our Android app.)
 Never miss patient calls (At a conference or on the go, attend to your patient’s needs
on time.)
 24x7 Appointment Scheduler (Your patients can now book and confirm appointments
over phone- anytime, anywhere.)
 No more busy tones (Your patients will always be heard. Call waiting is now history.)
 Instant Call Recordings (Keep track of your clinic activities even on the go, with
quick access to call recordings.)
 One Number for all your practices (Your patients can now reach you quick and easy at
any of your clinics on one number.)
 Smart Emergency Caller ID (Be there by your patients, when they need you the most.)

SEGMENTING

TYPE OF SEGMENTING

1. Age

 Age classification will define required product concentration according to mainly two
major classification.
 Senior Citizen : Pharmacy requirement high.
 Youngster: Nutrition and Dietary Supplement requirement will be high.

2. Gender

 Women: Beauty related product and women health related issues.

 Man : Economical & Fast Service Guarantee.

31
 Beauty Related Product: Promote metro sexuality within man while women are already
inclined to it.
 Dietary Supplement: Make women aware preferable home maker, about what will be
good for whom in her family and why. Target kids as your easier way of knowledge
partner to reach to home maker.

3. Income

Income Group will help to understand the Social Pyramid and hence promotion of product
will be according to pocket size. Right product for right person saves money. Classification of
Basket in terms of income group predominance in region of locality will easy in sales
approach.

4. Health Profile

Health Profiling :Most vital information for pharmacy related items an backward integration
stocking of material for central storage.

5. Lifestyle

Life style products, discounting and offers must communicated well to local customer, on
basis of their purchasing behavior and that would help to generate consequent increase in top
line.

MARKETING MIX
The marketing mix includes all tangible elements that allow you to market your product. This
includes facilities, your employees, the product itself, the cost strategy, the process of selling,
and how you promote and advertise. The extent to which the marketing manager gets
involved in these elements depends on how marketing focused your business is. A product
focused organization will probably start with an idea for a new product, then try and
determine who is likely to buy it. A marketing focused business starts with the consumer and
tried to figure out what they want to buy. Some product focused businesses are very
successful but it is generally accepted that a marketing focus provides a greater chance of
success.

Consumer : Tech savvy people of urban and semi urban areas of Delhi NCR and
Mumbai.For chemist operation, local resident within 10KM radius ( it can be more or less

32
depends on chemist shop) will be the target, need & want are to defined by franchisee. Then
we can add more value to consumer.

Cost: Here cost not price, because to satisfy client its cost not price. Price is predefined sells
concept and experience to its customer. So its obvious to make customer happy, cost need to
paid.

Communication: Not promotion its communication about as product are predefined so viral
advertising focus on service parameter and price are main focus point. Advertising required
for start up awareness among local resident.

Convenience: More convenience more satisfied and loyal customers, significant raise in Top
line.

Positioning Rx Plus : Rx Plus is one stop solution to all of your medical need and
requirement within your budget. Their assistance is as local as neighborhood buddy.

Market Research

Marketing managers need to have a good knowledge of the customer. This means building up
an accurate picture using the resources that are available. It is important to take personal
opinion out of as many decisions as possible – you probably don't think in the same way as a
typical customer. Information can be gathered from questionnaires, focus groups, the internet,
interviews, buying habits and many more sources, but it's important that the information is
examined in a scientific way using proper statistical methods. Gut feel can only take your
business so far.

Development of Marketing Strategy and Plan

33
Marketing planning should be at the core to any business and is usually presented in the form
of a written marketing plan. The marketing plan should provide direction for all relevant
members of the organization and should be referred to and updated throughout the year. The
main reason for the marketing plan is that it provides a structured approach that forces the
marketing manager to consider all the relevant elements of the planning process which might
be missed if a more rushed approach is adopted.

Customer relationship

 Campaigns Management – Telemarketing and Emails

 Loyalty Program Management
 Frequent Flyer Program (FFP) Management
 Customer Surveys
 Customer Analytics
 Emergencies

Rx Health Services And Solutions Private Limited Analysis

The six environmental factors of the Rx Health Services And Solutions Private Limited
analysis are the following:

Political factors
 Taxation Policy
 Trade regulations
 Governmental stability
 Unemployment Policy, etc.
Economic factors
 Inflation rate

34
  Growth in spending power
 Rate of people in a pensionable age
 Recession or Boom
 Customer liquidations
Socio-cultural
 Age distribution
 Education levels
 Income level
 Consumerism
 Population growth
 Life expectancies
 Expectation of society from the business
Technological factors
 Internet
 E-commerce
 Social Media
 Electronic Media
Environmental factors
 Competitive advantage
 Waste disposal
 Energy consumption
 Pollution monitoring, etc.
Legal factors
 Unemployment law
 Health and safety
 Product safety
 Advertising regulations
 Product labelling
 labour laws etc.

SWOT ANALYSIS

Strength:

 Offer more discount to end user making it economical for tertiary consumer.
 Biggest chemist chain in Delhi NCR
 Ethical image
 High margins
 Low cost of operations
 18*7(2 hour of delivery time)
 Network as local medicine shop.
 Health Buddy a way to localize the effort of reaching each doorstep pin code wise.
Same Model of any courier company.
35
  Strong backend team for digitization and Stocking.
 Leader of innovations
 Loyal satisfied customers
 Affordable prices of various IT solutions and other enterprise solution in the market
 Well defined service portfolio
 Strong Relationship with Clients.

Weakness:

 Pharmaceutical regulations
 New in the IT market
 Supply chain management is weak
 Availability in very few city
 Brand awareness of is low which is also a reason for its low sales.
 Lack of ways to judge the quality of products
 Lack of true experience
 Less internet knowledge in the small cities

Opportunity:

 Online pharmacy is an emerging new market for E retail in Pharmacy product.

 Technology( GPS tracking)
 More lucrative discount to attract customers
 Provide mobile application which can run minimum usage of internet connection
 Many other services such as diagnostics and other health related product can be
originated from the franchisee.
 Franchisee will be a Point of Sales, of company owned product in near future or they may
act as distributor of such products.
 It can become a one stop solution for any medical emergencies.
 Capture more market share by introducing solutions in new markets with Improvements
and innovations so it will help to establish them in those markets.
 Increase its brand awareness through excessive marketing and better market
communication.
 Take risk willingly in product innovations to capture more market share and increase the
sales.
Threats:

 Open market, local medicine shop provide doorstep delivery now a days.
 Government policy
 Market competition
 Doctor commission
 Promotional activities of competitors are stronger
 Brand name of competitors are well known, for e.g.: Practo.
 Big Players like Emami, Med plus, Apollo, Blueprint, Dwanantari etc. have retail
franchise and decentralized stocking system. Lag time of delivery is less and no minimum
order constraint.
 Big players of Medicinal retail also started prescription digitization service.
 Add on services if not provided, utility of service may become same like others.

36
 FDI in Multi brand retail is approved by Union Government so more foreign player will
come to grab market share with advance technological infrastructure.

COMPETITOR OF RX HEALTH SERVICES AND SOLUTIONS

PRIVATE LIMITED

RxPlus has proven itself as best among these in terms of numbers of doctors, numbers of
chemist shops, number of diagnostic centre, pathology lab services and customer support.
The main competitors of Rxplus.in (A product of Rx Health Services And Solutions Private
Limited) are Practo.Com, Just Dial, HealthCare Magic and yellow pages companies and they
are well established in the existing market.
Main competitor in market

 Practo.com

37
 Drugstore.com
 Drugsneed.com
 mocdoc.in
 1Mg/HealthKart.com
 Medist.in
 hyddoctors.com
 meetmydoctor.in
 Docsuggest.com
 Medplus
 Netmeds.com
 MChemist

PRACTO TECHNOLOGIES PVT. LTD

Practo Technologies Pvt. Ltd, India’s largest and best-funded healthcare technology start-up, is
maximizing its use cases by adding a bunch of offerings apart from its doctor discovery service.
Practo helps you find and book appointments with doctors, clinics, salons & spas, gyms and
diagnostic labs in your city. You can also ask free health-related questions on Consult and get
free answers from doctors and health experts. You can also create and manage your health
records or read exclusive health tips from doctors and health experts. Practo lists 200,000+
verified doctors and clinic profiles, so you have the widest range of options to choose from
JUST DIAL

India’s local search service provider Just Dial has raised Rs 327 crore from private equity
investors Sequoia Capital and SAP Ventures. While Sequoia Capital brought in Rs 305 crore,
SAP Ventures invested Rs 22 crore in this latest round of funding. With this, Sequoia now
owns around 19% in Just Dial, while other investors in the company such as Saif Partners and
Tiger Global together own close to a 60% stake in the company that has raised Rs 580 crore
so far.

Founded in 1996, Just Dial allows people to search for local information using the internet,
phone, WAP and text messages. This fundraising would delay Just Dial’s awaited IPO, which
is expected to be one of the largest public issue by an Indian company in the consumer
Internet business.He further added that the company is now looking at an IPO in the first
quarter of 2013 and would refile its DRHP with market regulator SEBI to go ahead with the
IPO.

SWOT Analysis of Competitor’s

Strengths:

 Support sales activities by understanding your customers’ businesses better

 Qualify prospective partners and suppliers

 Keep fully up to date on your competitors’ business structure, strategy and prospects

38
  Obtain the most up to date company information available

 Global relationships with all major Techno companies worldwide

 Availability all over.

 Strong management team.

Weaknesses:

 Products are very costly

 Very few competitors providing health care solutions.

Opportunities:

 Provide products in different areas

 Products should be cost effective

Threats:

 Availability of other Enterprise solution vendors

 Availability of products at very effective cost by other vendors.

MICHALE PORTER ANALYSIS

39
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Potential of new entrants into industry

New entrants into a market bring new production capacity, the desire to gain a foothold in the
market, and sometimes, substantial resources with which to compete. These new competitors
may come from several sources: market areas or segments you currently do not serve,
indirect competitors with competing products, customers and suppliers. The potential for the
entrance of new competitors into a market principally depends on barriers to entry and the
expected reaction of the incumbent firms. Barriers to market entry include: economies of
scale, brand preferences and customer loyalty, capital requirements and government policies,
such as tariffs and trade restrictions and regulatory policies. Whether these barriers are judged

40
as high or low depends, in part, on the resources and competencies of the potential new
entrants. The IT industry was voted second behind the legal profession when judged on career
prospects in a survey of more than 1,000 teenagers commissioned by the government's
Foundation Degrees. IT was also voted as one of the top three sectors for those young people
who dream of becoming the boss, but 68% of UK teens did not feel they had an adequate
understanding of the range of jobs available in the IT industry. The survey also found that the
IT profession has an image problem among young women, where 21% of female respondents
said IT was a male-dominated field. On a more positive note, the IT industry was judged the
second most "aspirational" sector to work in by teenagers. Nearly 90% said they were
prepared to work long hours to advance their careers and 58% said they would not be
deterred by extra study.

Threat of new entrants to an industry

 If new entrants move into an industry they will gain market share & rivalry will
intensify

 The position of existing firms is stronger if there are barriers to entering the market

 If barriers to entry are low then the threat of new entrants will be high, and vice versa

Barriers to entry are, therefore, very important in determining the threat of new entrants. An
industry can have one or more barriers. The following are common examples of successful
barriers:

Barrier Notes

Investment cost High cost will deter entry

High capital requirements might mean that only large
businesses can compete

Economies of scale Lower unit costs make it difficult for smaller newcomers to
available to existing firms break into the market and compete effectively

Regulatory and legal Each restriction can act as a barrier to entry

restrictions E.g. patents provide the patent holder with protection, at least
in the short run

Product differentiation Existing products with strong USPs and/or brand increase
(including branding) customer loyalty and make it difficult for newcomers to gain
market share

Access to suppliers and A lack of access will make it difficult for newcomers to enter
distribution channels the market

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Retaliation by established E.g. the threat of price war will act to discourage new
products entrants
But note that competition law outlaws actions like predatory
pricing

What makes an industry easy or difficult to enter? The following table helps summarise the
issues you should consider:

Easy to Enter Difficult to Enter

Common technology Patented or proprietary know-how

Access to distribution channels Well-established brands
Low capital requirements Restricted distribution channels
No need to have high capacity and output High capital requirements
Absence of strong brands and customer Need to achieve economies of scale for
loyalty acceptable unit costs

Power of suppliers
If a IT firm’s suppliers have bargaining power they will:

 Exercise that power

 Sell their products at a higher price

 Squeeze industry profits

If the supplier forces up the price paid for inputs, profits will be reduced. It follows that the
more powerful the customer (buyer), the lower the price that can be achieved by buying from
them.
Suppliers find themselves in a powerful position when:

 There are only a few large suppliers

 The resource they supply is scarce

 The cost of switching to an alternative supplier is high

 The product is easy to distinguish and loyal customers are reluctant to switch

 The supplier can threaten to integrate vertically

 The customer is small and unimportant

 There are no or few substitute resources available

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Just how much power the supplier has is determined by factors such as:

Factor Note

Uniqueness of the input If the resource is essential to the buying firm and no close
supplied substitutes are available, suppliers are in a powerful
position

Number and size of firms A few large suppliers can exert more power over market
supplying the resources prices that many smaller suppliers each with a small market
share

Competition for the input If there is great competition, the supplier will be in a
from other industries stronger position

Cost of switching to A business may be “locked in” to using inputs from

alternative sources particular suppliers – e.g. if certain components or raw
materials are designed into their production processes. To
change the supplier may mean changing a significant part
of production

Power of customers
Powerful customers are able to exert pressure to drive down prices, or increase the required
quality for the same price, and therefore reduce profits in an industry.
A great example in the UK currently is the dominant grocery supermarkets which are able
exert great power over supply firms.

Several factors determine the bargaining power of customers, including:

Factor Note

Number of customers The smaller the number of customers, the greater their
power

Their size of their orders The larger the volume, the greater the bargaining power of

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 customers

Number of firms supplying The smaller the number of alternative suppliers, the less
the product opportunity customers have for shopping around

The threat of integrating If customers pose a threat of integrating backwards they

backwards will enjoy increased power

The cost of switching Customers that are tied into using a supplier’s products (e.g.
key components) are less likely to switch because there
would be costs involved

Customers tend to enjoy strong bargaining power when:

 There are only a few of them

 The customer purchases a significant proportion of output of an industry

 They possess a credible backward integration threat – that is they threaten to buy the
producing firm or its rivals

 They can choose from a wide range of supply firms

 They find it easy and inexpensive to switch to alternative suppliers

Threat of substitute products

A substitute product can be regarded as something that meets the same need

Substitute products are produced in a different industry –but crucially satisfy the same
customer need. If there are many credible substitutes to a firm’s product, they will limit the
price that can be charged and will reduce industry profits.

As an example, consider the many substitutes that consumers now have to buying a software
for browsing the internet:

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The extent of the threat depends upon

 The extent to which the price and performance of the substitute can match the
industry’s product

 The willingness of customers to switch

 Customer loyalty and switching costs

If there is a threat from a rival product the firm will have to improve the performance of their
products by reducing costs and therefore prices and by differentiation.

ANALYSIS OF TASK/RESEARCH UNDERTAKEN

Research Design

Statement of research problem:

In overall scenario of Rx Health Services And Solutions Private Limited the followings are
the problems:-

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1. Sales generation.

2. Convincing client.

Statement of research objectives:

 Mapping of competitors of company

 Generating clients for the websites

 Creating awareness among doctors

 Collecting information about doctos.

3 Research design and methodology:

Importance of service
Services are activities or benefits that one party offer to another that are essentially
intangible, inseparable, variable, perishable and do not result in ownership of any- thing.
Service sector dominates the Indian economy today, contributing more than half of our
national income.
Importance of online appointment with doctors
Doctor's appointments are missed each and every day by people who either forget to show up
or choose not to call and cancel their appointment. This article will look at some of the
reasons why it is important to try to and keep doctor's appointment and what to do if you
must cancel.
At my previous doctor's surgery (office) in the UK, the surgery would regularly post the latest
numbers of people who had not shown up for their doctor's appointments. I was amazed at
the staggering amount of people who failed to show up for their appointments. It was not just
a few individuals who did not show up. A large number of people regularly missed their
scheduled doctor's appointments.
If you are a receptionist it can be very frustrating to work under these conditions. You will
have to call patients when it is their turn to see the doctor and be left standing when no one
appears. Then you must inform the doctor that the patient did not show up.
One of the reasons why it is best to try and keep your doctor's appointment is because it is the
polite thing to do. Would you arrange a job interview with a company you were serious about
working for but then fail to show up? It is highly unlikely. Yet, members of the medical
profession routinely have to deal with patients who do not show up for their appointments.
It is also important to keep your appointment if you will be receiving the results of blood
tests, and other test results that will determine your medical condition. This in turn will help
doctors see what the next step should be in your course of treatment. If you miss the
appointment, you are not only wasting your doctor's time. You could also place your health at
risk if you do not start your treatment as quickly as possible.
Sometimes, it is just not possible to keep a doctor's appointment. It may clash with a business
meeting at work or your child's emergency visit to the dentist's. If you can, try to inform your

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doctor's surgery of the cancellation 24 hours in advance. But if that is not possible, let them
know as soon as you can. That way, your appointment slot can be given to someone else who
may be in need of a last minute appointment. Keep in mind that breaking an appointment
without first calling to cancel can prevent someone else from being seen and it wastes the
time of doctors and the rest of the team.
Importance of marketing research
Market research allows you to identify threats and opportunities in the market place and
provides the information on which you can make informed decisions. The more accurate
the information - the better the decision. Market research therefore reduces the risk
involved in making these decisions. It also reduces the risk of not being able to make
decisions because you did not have the information at hand (for example, a change in the
market that catches you by surprise).
Market research helps you to:
 Identify new products or services.
 Spot or anticipate market trends or changes.
 Determine if customers are satisfied, and if not, what is wrong.
 Keep one step ahead of your competitors.
 Spot trends or warning signals in your own business.
 Decide which advertising medium works best for your business.
 Keep up to date with new technology in your industry.
 Tell you if a new idea is likely to be viable or not, and so on.
Market research is therefore the business tool that helps you reduce the risk that a new
idea will fail, and helps reduce the risk of being in business. In short, it helps you both
stay in business and build a more profitable business. However, in most businesses very
little research is conducted. This is because people are unsure how to perform such
market research properly.

Methodology
Under Research Methodology there are three types of methods for marketing research. They
are as follows:

 The observation method

 The experimental method
 The survey method inclusive of panel method.

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In observation method data are collected on the direct observation. No talks take place. By
observing the person the analysis makes the inventory as to product used by him at his home
or kept as retailers stocks. In experimental method it is based on the concept that small-scale
experiment is useful to indicate the expectations of large-scale experiment. The survey
method information is gathered directly from individuals by three ways:

 Telephone

 E-Mail

 Personal

 Interview

The survey method by route ride I usually went with Pepsi van also with salesman. I met the
retailers from outlets to outlets. This survey method helps me a lot to understand about the
distribution system and to understand the problem of retailers and other people.

.In addition to the personal interview by questionnaire technique. In this survey method I
saw that the respondent was shown the exhibit and advertisement to give his personal
opinion and attitude. In this method the direct interaction of occurred with the retailers and
I could collect the reliable information from them it has also cost disadvantage that’s why
some were difficult to covered.

DETAILED PROGRESS OF PROJECT AND RESULT OBTAINED TILL

DATE

In the starting of our internship we have to cover all the metro stations across Delhi NCR.
Our target was to do two tie up with chemist shops at every single metro station and our team
completed the target given by our team leaders. This process took 15 days of our internship.

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After 15 days each and every metro station was saturated (2 tie up at each metro station) by
our team. List of registered chemist shop name is given below:

S.NO. DATE PLACE TIE UP CHEMIST SHOP

NAME
1. 19/02/2016 New Ashok Vihar Lifeline Medicos
2. 19/02/2016 New Ashok Vihar Gupta medical store
3. 22/02/2016 Jangpura Jhankar chemist
4. 22/02/2016 Jangpura Health care chemist
5. 22/02/2016 Moolchand All india chemist
6. 23/02/2016 Khan Market Preet medicos
7. 23/02/2016 Kailash colony Shivam medicos
8. 24/02/2016 Inderlok Nath medicos
9. 24/02/2016 Inderlok Muskan medicos
10. 24/02/2016 Kanhaiya nagar Sharma medicos
11. 24/02/2016 Kanhaiya nagar Yadav chemist
12. 25/02/2016 Nangloi Shivangi medicos
13. 26/02/2016 Nirman vihar Savitri medicos
14. 26/02/2016 Vaishali Family Care medicos
15. 26/02/2016 Vaishali Chandra laxmi pharmacy
16. 29/02/2016 Dwarka Sector 7 Tie up
17. 29/02/2016 Dwarka mor Tie up
18. 08/03/2016 Old Faridabad Sri Power Solution
19. 17/03/2016 Gurgaon Live pharmacy
20. 17/03/2016 Gurgaon All is well pharmacy

After that our team focused towards to increase downloads/signups of RxPlus application. On
daily basis, our team leaders assign a specific area where we have to go for
downloading/signups. We did download/signups by giving promotional offer. We set up
canopy at specific location which was assign by our team leaders and where we increase
download/signup of our app RxPlus. We also did organic marketing and distributed pamphlet
with newspaper vendor for promotion of RxPlus app and increase RxPlus app
downloading/signup and done branding of our application.

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S.NO. DATE PLACE DOWNLOAD/SIGNUPS
1. 01/03/2016 Govind puri 2
2. 02/03/2016 Saket 2
3. 03/03/2016 Nehru Place 21
4. 04/03/2016 Nehru Place 14
5. 06/03/2016 Subhash Nagar 50
6. 15/03/2016 Okhla Phase 2 32
7. 16/03/2016 Pragati maidan 8
8. 16/03/2016 Nzamuddin Area 7
9. 18/03/2016 Gurgaon 10
10. 21/03/2016 Lajpat Nagar 5
11. 21/03/2016 Govind puri 5
12. 22/03/2016 Palwal 4
13. 26/03/2016 Palwal 1
14. 28/03/2016 Saket 7
15. 28/03/2016 Malviya nagar 10
16. 29/03/2016 Gurgaon 19
17. 30/03/2016 Gurgaon 12
18. 31/03/2016 Gurgaon 20
19. 01/04/2016 Gurgaon 18
20. 04/04/2016 Gurgaon 19
21. 05/04/2016 Gurgaon 16
22. 06/04/2016 Gurgaon 19
23. 07/04/2016 Gurgaon 22
24. 08/04/2016 Gurgaon 34
25. 09/04/2016 Gurgaon 28
26. 11/04/2016 Gurgaon 32

After successful registration we create a unique id for each chemist shop and registered them
in our database. We told them their unique id and password for their order process i.e. how
there order will come, how they will notify in case of new order, how will they deliver their
order, if they want to cancel the order in any worst condition how they can, how they will

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collect money from our consumers, how will chemist shop give money to our company. We
make them understood all the backend processes.

S.NO. DATE PLACE BACKEND PROCESS WITH

REGISTERED SHOP
1. 01/03/2016 Govind puri Bhagat chemist
2. 09/03/2016 Kanhaiya Nagar Yadav Chemist
3. 09/03/2016 Kanhaiya Nagar Sharma Medicos
4. 09/03/2016 Inderlok Muskan medicos
5. 10/03/2016 Jangpura Jhankar Chemist
6. 10/03/2016 Jangpura Health Care Chemist
7. 10/03/2016 Moolchand All India Chemist
8. 11/03/2016 Green Park Helpline Medicos

Findings and Recommendations

A. Findings :

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  Youth generation is more interested about the product as well as this kinds of health
line. So there is vast opportunities in Indian market as …. % of population is youth.
 Just Dial have been made a brand image in the market and the popularity of Health
line 24*7 is very negligible compare with that as it is very new in the market. Apart
from that there are sulekha.com, yellow pages etc.
 I found that when I explained our services then 50% of the people are just satisfied,
33% are impressed and approximate 20% people told that it is a helpful service.
 As a part of market research, after influencing, approximately 55% people saved the
RxPlus health line number but 45% didn’t saved the number.
 During demo call to Health line 24*7 only 10% people asked for their disease but rest
of 90% made the demo call only for registration.
 During market research it was clear that approximately 32% of the people made
demo calls from their own number, 55% don’t want to make any calls as they think
they might get problem in future. And 13% people even didn’t make any call.
 Doctors don’t want to give there detail (past and photos).
 Rural area doctors don’t want them to get engage in it.

B. Conclusions and Recommendation:-

This project work gave knowledge not only about retail business but also the
consumer behaviour. It also gave lessons about how culture of the location affects the
organization working style. It showed the strategic and analytical approach gives
flying colours to the retail business.

The different trainings are necessary for all kinds of job. A manager needs to know the
entire work take place in the organization to motivate employee and to groom with the
organization. The survey work gave me a chance to consult directly consumers and
know their expectation with the company. The analysis of active and non- active items
taught me how a data can give different angle to approach and make a full proof
strategy to satisfy customer. I have learnt about space management, basic needs of the
consumer, employee motivation, stock take, dealing with customer and many more
grass root level knowledge.

My internship gave me full exposure of an organization which will help me in my

future job. I have known the difficulties faced by a manager and learnt how come up
with more lustre. I have faced an organization practically and I am very much happy
to apply my MBA knowledge during summer internship program.

 As young generation is interested and there is vast market, so an attractive

and effective promotional strategy should be adopted.

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  Like Just Dial, Practo.Com also has to focus to make a brand image in the
market.
 As people are not interested to tell about their diseases then free medical
camp is recommended to organize for all level of people on society.
 By campaign people awareness about the usefulness of the health-line is
recommended.

FUTURE PROSPECT

Future of E- commerce as predicted by various market research agency of repute is to grow at

CAGR of 55 to 56% annually by 2020 in respect to past growth scenario starting from 2007.
According to the Union Budget 2014-15 FDI investment will come in Health Care and online

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pharma, but online pharma will be favored as in terms of specific needs or want of consumer
daily requirement. In term Delhi NCR scenario big retail is not possible and so digital or
online pharma have a immense opportunity. Rxplus will have set of client who regularly
served by health buddy franchisee, this will give the mother company to launch new set of
customized product in FMCG domain to market direct to consumer. Real-time stock
information with zero lag time will enhance service standard because, out of stock create
negative impact on client mind. In coming times mobile apps formation , even corporate
building and IT park must have a health buddy corners.

RECOMMENDATION

•Awareness Development will be on ground and Digital . On Ground BTL(Below the line)
will exercise confidence on franchise Partner in their task where they can directly
communicate their key attributes of S&S services to people. It may be through a small Health
Camp in Locality organized by S&S. Budget per person will be understood, post to
settlement with original database of participants at the end of at least one two activations.

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•Digital campaign will focus in some key issues of irregular medicinal habit and find a doctor
and medicine at doorstep with preferred discounts. Promote services through newsletter and
sms campaign. Use Linked In, Quikr etc to create awareness and communicate opportunity of
HEALTH BUDDY.

•Brand Building is time taken exercise its like personifying an object as human friend in
need. Time to Time Campaign in Outdoor, TVC which could potentially use in digital media
platform like you tube videos. Newsletters and SMS campaign will regular initiative for
CRM team.

•Emotional Marketing is Sponsoring , CSR initiative like fight against potential cause of
Malnutrition. PR related events in School activities for youngster awareness campaign about
healthy eating and good life will give you a positive image among the parents and home
maker, the decision maker. School activity example BMR , ideal height & weight, diet chart
creations, sports they must play.

•Loyalty Marketing will be done for the customer who can get a benefit of 15% discount for
next one year who will potentially reach at level of Rs x purchase in Quarter. Whereas create
slab of 8%, 10%, 12%, 15% discount over the purchase behavior of client in a year.

•Trade Marketing online discounts and Trade offs . Doctors appointment support , find a
doctor , Polyclinic Support will be add on which will help to reach more set of customer.

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