upGrad

Product Management
Certification Program
Assignment: Competitor
Analysis
Industry: Online
Medicine

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Hello!
I am Manish Modi
I am here because I love to build products.
You can find me at [email protected]

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 1.
MAJOY PLAYERS LIST Let’s start

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 List of major players in the online medicine
space

COMPANY NAME
1. 1 MG
2. Net meds
3. MedLife
4. mCHEMIST
5. BookMeds

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 2.
INTRODUCTION PharmEasy

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 PharmEasy is one of the largest
pharmacy aggregators in India.
Which help patients connect

‘’ with local pharmacy stores and

diagnostic centers in order to
fulfil their extensive medical
needs.

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 3.
COMPETITORS Direct and In-Direct

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List of Direct and In-Direct Competitors

Direct In-Direct
1MG Apollo
NetMeds Care Pharma
MedLife GenMart

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4 .Company Comparisions

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Goals

PharmEasy DC1
Our goal at PharmEasy is to Our goal at DC1 is to make
make quality and affordable healthcare Understandable,
healthcare accessible to Accessible and Affordable
one and all

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Mission

PharmEasy DC1
Helps and connect patients create a platform that
with local pharmacy stores stood for transparent,
and diagnostic centers authentic and accessible
across India. information for all

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Strategies

PharmEasy DC1
▣ Pharmeasy is into hyper local The company used its app to
delivery of medicines . To help spread information on medicines.
you understand it is like They are using push notifications
Grofers for medicine. and emails to expand and let
▣ The customers are segmented people know that they are live in
based on the pin codes they their city. The company also uses
are staying and are matched offline advertisements depending
to the corresponding medical on the city. They use newspaper
stores in that area . advertisement and health camps
to spread information. But a
▣ The customer can order majority of their marketing is
through the app and get a digital.
cool discount of 20% or more 13
Current Number of Employees

872 Employees
PharmEasy

773 Employees
DC1
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Revenue
PharmEasy DC1
▣ PharmEasy’s trading entity, ▣ DC1 sales grew by 72% to Rs
run by Thea Technologies Pvt. 268.1 crore in FY20 from Rs
Ltd, earned Rs 637 crore in 156.2 crore in FY19.
FY20 - compared to Rs 340
crore in FY19

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PharmEasy Founder Profile

Dharmil Sheth, an engineer with an

MBA degree, is convinced about the
immense potential that technology
has in the health care space.
The health care business is like a
circle and you can enter at any
point,” says Shah, a doctor with an
MBA degree. “We eventually want
to be the go-to guys for all health
care needs.”

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DC1 Founder Profile

Prashant went to IIT-Delhi for

his Bachelor’s degree in
Technology and Stanford
University for his business
studies. He worked at
McKinsey & Co., Hindustan
Lever Ltd., and MapMyIndia
before co-founding DC1

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Acquisitions
PharmEasy DC1
▣ PharmEasy has ▣ DC1 has acquired Dawailelo
acquired Medlife on Aug 18, on Sep 01, 2017 with an un-
2020. They discloser amount
acquired Medlife for $1.2B.
▣ DC1 has also acquired
MediAngles on Dec 14, 2016
with an un-discloser amount

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Target Market
PharmEasy
▣ The Target market are the general customer, retail pharmacies & certified
diagnostic labs
SERVICES
Diagnostic Test
Healthcare Products
Order Medicines

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TAM (Total Addressable Market)
▣ The e-pharma market is expected to grow at a fast pace in India given the
tailwinds that the industry is witnessing. The total addressable e-pharma
market value stood at around 360 million U.S. dollars in 2019.

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SAM (Serviceable Available Market)
▣ It is possible to target the tier-1 & 2 Cities of India because the target audience is
more.
Example:- Delhi , Mumbai , Kolkata, Chennai ETC…

SOM (Serviceable Obtainable Market)

▣ In SOM we will be targeting the user who are educated to use smart phone and
person who will be required medicine as per the daily basis.

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 5.
COMPARATIVE
ANALYSIS PharmEasy VS DC1

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 PharmEasy Business Model
BUSINESS MODEL EXAMPLES PROS RISK
MARKET PLACE Paytm , Amazon 1. Can target large 1.Low Margin
,FlipKart customer 2. Unaware about the
2. Maintenance Cost customer segment
details
BIG BRANDS 1mg , Medlife 1. Strong Brand Pull 1.Brand power
2. Ride on with the dilution
marketing efforts of 2. High inventory
the brands Risk
PRIVATE LABLES Himalya , Apollo , Cipa 1. High Margin NA
2. More Supply
OFFLINE DISTRIBUTION The local medical 1. Fixed Customer Inventory Risk
CHANNEL FOR LONG TAIL shops and the False Information
PRODUCTS
distributers
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PharmEasy Business Model

▣ PharmEasy delivers medicines and other medical accessories across

Indian towns and cities. It is like Grofers for medicine. The pin codes
maintained by PharmEasy are used to identify pharmacies closest to
the customers. Customers can either access PharmEasy's website or
use its mobile app to order items. They are entitled to discounts of up
to 20% if they order using the mobile app.
▣ Due to various rules and regulations set by the Indian government,
the company doesn't deliver Schedule H drugs. Why do people
abstain from e-pharmacies? They aren't sure of where the medicines
come from. PharmEasy is dispelling this notion for good.

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 DC1 Business Model
BUSINESS MODEL EXAMPLES PROS RISK
MARKET PLACE Paytm , Amazon 1. Can target large 1.Low Margin
,FlipKart customer 2. Unaware about the
2. Maintenance Cost customer segment
details
BIG BRANDS 1mg , Medlife 1. Strong Brand Pull 1.Brand power
2. Ride on with the dilution
marketing efforts of 2. High inventory
the brands Risk
PRIVATE LABLES Himalya , Apollo , Cipa 1. High Margin NA
2. More Supply
OFFLINE DISTRIBUTION The local medical 1. Fixed Customer Inventory Risk
CHANNEL FOR LONG TAIL shops and the False Information
PRODUCTS
distributers
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DC1 Business Model

▣ DC1 provides services like diagnostics, medicine, preventive

healthcare and online Q&A to its users. Apart from this, they also have
native ads on their platforms for pharma companies. In the past one
year, The company has expanded its pharmacies to 600 cities and
also expanded their product range to include homeopathy and
Ayurveda range.

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 Product Comparative
Factors PharmEasy DC1
Business & Product Mix PharmEasy earns by displaying -
the sponsored results of various
pharmaceutical entities.
Value-added services Order Medicine Order Medicine
Health care Products Health care Products
Lab Tests Lab Tests
Medicine Details Doctor consultations on chat
Easy and Hassel Free Return Medicine Details
Better Discount Offers
Geographical reach 22000 Pincode Served 600+ Cities
Revenue model Over all revenue : FY20 637 Cr. Over all revenue :FY20 541Cr.
Daily Orders : Approx. 12K Daily Orders : Approx. 8k
Average Order : 5L-6L per Yr Average Order : 3L per Yr
Shifts in the business Customer Acquisition The website was started as HealthKartPlus a platform
for users to have all the information about the
model medicines. The platform became so popular and got a
huge response from the public and users asked the
company to start the delivery of the medicines
27 too. Thus DC1 was started.
 6.
COMPARE
STRENGTH &
WEEKNESS PharmEasy VS DC1

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Strength and Weekness PharmEasy VS DC1
Factors PharmEasy DC1
Payment Has Good Payment Facility and options Need to improve in this function area

Order Confirmation Uploaded Perception gets confirm easily Uploaded Perception gets rejected as
per customer feed back
Delivery Time Quick easy and Fast Take time to deliver minimum 2 days
and maximum 15 days

User Interface Need to improve customer experience for Easy to understand and easy to use
better understanding.

Customer Care Moderate but delayed in response Prompt response

Feedback

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Pain Points
DC1 PharmEasy

Pay First Method Change in the product Price (High

Cost)
Geo Location issue Delayed in Delivery Time
Internet Connectivity Issue Difficult to understand process by
(Application Crash Out) user
Lab Test Results are submitted Product Out of Stock
Late
Most of the products are out of Bad Customer Care Service
stock
Small cities take more time to Technical issues are more while
deliver the product. checking out many products.
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7. Product Details
and Performance?

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 Particulars DC1 PharmEasy
App Downloads 10M+ 10M+

App Rating 3+ 3+

User Experience of App 4.4 4.5

Overall Functionality and Not Available Best Experience as per

User Feedback review
Medicines 1L+ 1L+

Visitors 150M+ 130M+

Return Policy 30 Days 30 Days

Manufacture 60+ 51+

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 8.
Future Initiatives PharmEasy & DC1

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Future initiatives

Finance Tracking Discount

PharmEasy is buying back Esops Improvements in Tracking features More Discount and Cashback
worth $3 million to raise its market in PharmEasy Application option should be integrated using
impact. 3rd party application

Finance Operations Logistics

More Payment option should be More Doctor , Consultant Should be Small cities logistics should be
integrated. tie-up so that customer retention improved
will be increased.

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Thanks!
You can find me at
[email protected]
9375743866

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