
Acquisition Strategy
Acquisition Strategy for leading Generic Pharmacy

Elevator Pitch:
Medkart Pharmacy wants to create an impact in the life of patients by providing affordable generic medicines, making them easy to access, and creating trust among patients with authenticity.
The vision of Medkart is to redefine the positioning of medicines in India by being a one-stop-shop for generics. Three 3A philosophies are followed by Medkart: Awareness, Availability, and Acceptance.
Ideal Customer Profile:





Conversation/ Insight from Doctor:
Ques. When given an option will you prescribe generic medicines to patients?
Ans. Yes, I am fine with prescribing generic medicines. But nowadays patients are well aware of the brand, when I say generic, they react and ask questions like are these unbranded medicines? These medicines are cheap, will they be effective?
Doctor: “What I have observed in the medical field is that there is a Placebo effect among patients and it is hard to convince them. Moreover, if I interact with someone from the affluent class and I prescribe them medicines worth 50 INR, they develop a different reputation for me. And I have observed that they don’t come back for a follow-up. Nowadays patients have started relating medicines with Brand and Price”
Market Estimates
India e-Pharmacy Market Report 2021: Market Stood at $344.78 Million in 2021 and is Expected to Witness Robust Growth of 21.28% to 2027
Source: Here
India E pharmacy market is segmented into:
Drug type: Prescribed Drugs- 66.41%, OTC Drugs- 33.59%
Product type
Operating platform
Business model
Region
Company
The major players operating in the India E pharmacy market are:
API Holdings Private Limited (PharmEasy)
Tata Digital Limited (1mg Technologies Pvt.ltd)
Apollo Pharmacy Pvt. Ltd.
Netmeds Marketplace Ltd (Reliance Retail)
Practo Technologies Private Limited
Lybrate, Inc.
Docprime Technologies Private Limited
Care On Go
mChemist Global Pvt. Ltd
Medsonway Solutions Pvt Ltd.
Growth drivers for the Online Pharma Segment of India
Unorganized nature of traditional pharma retail- Traditional pharma retail sector is highly unorganized as there are multiple retailers at multiple locations leading to challenges such as the sale of substandard and counterfeit drugs, price wars amongst various retailers, and limited availability of drugs. The proliferation of e-pharmacies can help curb this menace, as it’ll allow consumers to purchase drugs from a highly organized online platform.
Governmental Support- During covid times, the Central and State governments understood the necessity of E-Pharmacies and classified them as an essential service, and also promoted them on the Aarogya Setu App.
Value and convenience offered: E-pharmacies can help ensure the supply of genuine and authorized drugs (a wide variety of drugs that are safe for consumption) at affordable prices (by eliminating middlemen and offering discounts) with easier accessibility (online platform, home delivery & improved digital payment infrastructure).
Tremendous Potential Untapped in Tier II and Tier III cities: E-Pharmacies still have a lot of scope for expansion in tier II and III cities, which can be achieved by making huge investments in the improvement of logistics channels in these cities.
Challenges for the sector
Cyberthreats and Data Security: These online platforms depend heavily on valuable insights derived from customer data (personal details, buying behavior, etc.) to deliver a seamless customer experience. Thus, exposing this data to the risks of data breaches and other cyber threats.
Need for constant Technological Upgradation: In order to ensure its survival and growth in the Indian markets, E-Pharmacies need to constantly focus on utilizing the latest technological advancements (AI, AR, VR, NPL, etc.) to deliver the best possible service to its customers.
Need for a strong Legal and regulatory framework-The legal regime governing the offline sale of pharmacies is also applicable to E-Pharmacy, as there is no special regime just for these players. The government needs to establish a special legal framework for E-Pharmacies in the near future, to protect the interests of the consumers and to serve as a backbone in facilitating growth in this sector.
Outlook for E-Pharmacies in India
Based on a few industry reports and analyses, the E-pharmacy market in India is expected to increase at a higher CAGR of around 40-45% as compared to Global E-Pharmacy markets that are expected to increase at a CAGR of around 15-20%.
Scope for Internet Penetration- In India, there is still a lot of scope for internet penetration and it is expected to increase at a CAGR of 8.78% between 2020-255. As a result of this, E-Pharmacies would continue to grow in India, with the gradual increase in internet and mobile phone penetration. Apart from this, constant technological up-gradation will continue to support this growth.
Increasing investments and consolidation activities - This sector is also attracting huge investments from some of the largest conglomerates around the world.
Increase in medicine spending- Medicine spending in India is expected to grow between 9-12% over the next five years.6
Source: https://home.kpmg/in/en/blogs/home/posts/2021/12/e-pharmacy-pharma-retail.html
LTV to CAC ratio
CAC: 500 INR (Assumption)
LTV: Average Monthly Order Size x Profit Margin x Order Frequency per month x For 12 months
This comes out as: 800 x 20% x 1/month x12 months= 1920 INR
LTV/ CAC= 1920/ 500= 3.84 It is a above healthy LTV to CAC ratio. (A healthy LTV/ CAC ratio is 3:1)
Channels:

Acquisition:
APP Sign-up/ Login Flow

Updated:

App Home Screen:

Organic Traffic:

Referral:


Referral Message:
“Hey Deepak, I have just saved 400+ INR while ordering my monthly medicines via Medkart. You too can save money by ordering WHO and GMP-approved Generic Medicines via Medkart, is Gujarat’s largest and most trusted Generic medicine pharma chain.
Download the app via this link: Here and you will get a flat 50 INR off on your first order. This reward is applicable for the next 30 days only, Download Now!!!”
Placement of Referral Option:
- After placing order, using the happy feeling generated after placing an order at reduced price as compared to that of branded medicines
- Give motivation of Platform currency. “If you refer our app to your friends, we will add 50 INR in your Medkart account which can be used to buy anything. Moreover, we will provide additional 50 INR discount to the referee on their first order”
Tracking Referral:

Advertising:
YouTube channel: https://www.youtube.com/c/MedkartPharmacy

Advertising Ideas and Scripts:
Trust reinforced by Doctor
Characters: Father- Doctor, Son- around 15-16 Years
Script:
Son to Father: Papa you prescribe so many medicines to patients, how are these medicines manufactured?
Father to son: These are manufactured by big pharma companies after research and launched in market after approvals from WHO, Government bodies etc.
Son to Father: These medicines are costly, not everyone can afford them
Father to son: There are generic medicines available as well, they are similar to branded ones, with similar efficiency and effectiveness.
Son to Father: Are they safe?
Father to son: Yes, they are WHO and GMP approved
2. Trust: What are generic medicines?
Characters: Father- Doctor, Son- around 15-16 Years
Script:
Son to Father: Papa you take so many medicines on daily basis, which company or brands do you use?
Father to son: I consume generic medicines, they are not from a specific brand
Son to Father: What are generic medicines?
Father to Son: Medicines are manufactured by pharma companies after research and launched in market after approvals from WHO, Government bodies etc. They have specific patent, when that patent expires any approved drug manufacturing facility can manufacture them
Son to Father: Are they safe?
Father to son: Yes, they are WHO and GMP approved
3. Basic Discussion
Characters: 2 young boys
Script:
Boy 1: Hey you know today I saved 700 INR while ordering medicine for my father
Boy 2: How did you do that?
Boy 1: My grandfather advised me to buy generic medicines and today I compared the price difference between generic and branded ones, dude, branded ones are much costly
Boy 2: Oh so you ordered generic medicines, but they are not that effective right?
Boy 1: My grandfather has been consuming generic medicines since many years now
Boy 2: Oh that’s nice, I will also have a look at it. 4. Patient to Patient conversation
Characters: Cancer patient to Diabetic patient
Script:
C: Hey, you seem to be tensed today?
D: Yeah, I have been taking medicines for diabetes and the prices of medicines are increasing day by day making it difficult for me to buy
C: Have you ever tried generic medicines?
D: Are generic medicines available for diabetes as well?
C: Bro I am suffering from cancer and I am consuming generic medicines for all my prescribed medicines, you should give it a try. They are effective, efficient, and approved by authorized bodies
D: I will surely consider generic and order it today, thanks
Product Integrations:
Medkart is still in the early scaling stage, and integrations with other established and renowned brands/ products like Practo, DocsApp, Medibuddy, etc. will be difficult. Even if it happens it will be not a budget-friendly tie-up.
However, integrations are possible in the Payment domain:
Possible integrations:
- Razorpay
- Wallet: Freecharge, Amazon pay, Phonepe, Airtel payment bank, Paytm, Mobikwik, etc.
Content Loops:
- Content from Quora (Medkart should share content on Quora about generic medicines)
- SEO optimized blogs
- Patient Stories and Testimonials
- Tie up with a few doctors who believe in generic medicines
- Sharing reports for generic medicines
- Articles about controlling diabetes, hypertension, etc. add a reference to Medkart in the article
Thanks 🙂