Product Management

Certification Program
Assignment: Competitor
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Analysis Name: Apurva Singh
Industry: Online Medicine

Email:
[email protected]
List major players in
Edit Master text styles With assistance of 50+ new startups in different segement and region of
the online medicine India, total worth of online pharmary market is over a billion dollor

space Some of the online pharmacy players exist in Indian Market are:

1) NetmMed
2) 1MG
3) Applo Pharmacy
4) Medibuddy
5) Practo
6) PharmEasy
7) Care on GO
8) Metapharmacy
9) Buydrugs
10) Healthcart
11) mChemist
12) Medlife
13) Zigy
Introduction of
Edit Master text styles Company Services: Order Medicine, Book Lab test, Order healthcare
PharmEasy products and daily essential.

Parent Entity: API Holdings

CEO: Mr. Dharmil Sheth

Funding: Series D

Acquisition: Acquired Medlife

Target Segment: Urban Family, Masstige

Category: Medicine, Diagnotics Test, Chronic Care products, Healthcare

products

Private Brands: Medlife Welleness Retails Pvt Ltd, Everhub, Liveasy

Revenue Model: Sponsored listings Model, advertisement model,

Commission Model
Identify direct and
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indirect competitors of Bussiness Model Direct InDirect

PharmEasy (2 each) Market Place Netmeds, 1MG

Big Brand OTC drugs/He Amazon pantry, Physical Retail/Medical

althcare Products seller Flipkart Grocery Store, MFine, Practo

Private Labels Patanjali, ApolloPharmac

y
 PharmEasy Vs 1MG

Choose any 1 direct

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competitor to proceed
further. Let’s call it DC1
for now.
Company Online Doctor Diagnostic Healthcare Healthcare Ayurvedic Alternate Homeopat Insurance
Order Consultati Tests device subscriptio products Brands hy
on n Solutions Products

PharmEasy Yes Yes Yes No No Yes No NO No

1MG Yes Yes Yes Yes Yes Yes Yes Yes Yes
 Company Background
Compare the company
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backgrounds of DC1 and
PharmEasy.
Conpany Specfic PharmEasy 1MG

Founder Mr Dharmil Sheth Mr Prashant Tandon

Founded 2015 2015

Parent Company API Holdings Sequoia Capital

No. of employee 1000+ 750+

Total Funding $ 328.5 million $ 173.5 million

No of investors 18 (Series D round) 13

Acquistions 1 (Medlife) 2 (MediAngels, Dawailelo)

 Business models -
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PharmEasy
Business & Business Model Value added Geographical Target Revenue Revenue Model
Products services reach Customers

Subscriptions Franchise + Health Experts Deliver the Urban family Average Order Sponsored
based Partnership Advice Blogs - products espicially in South Value Listings
Sells English at 22000+ India and English - Rs. 965
pincode in speaking people (June’19) Advertisement
Lab Tests Digital storage of more than 1000
health records cities. Average Order Commissions
No prescriptions Frequency - 1.50
free consultation 2M+ Indian family from users in a
served month (June’19) High margin on
Over the counter own
drug Market Share - brands
18%
Private Labels, (June'19)
Everhub, Live
easy
 Business models –
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1MG
Business & Products Business Value added Geographical Target Customers Revenue Revenue Model
Model services reach
Subscriptions based Only Health Experts 25M+ Order Urban family Average Order Sponsored Listings
Sells Partnership Advice delivered espicially in North Value -
Blogs - English in 1000+ cities India and Hindi Rs. 792 in June’19 Advertisement
Promote Substitutes and speaking people
Medicines Hindi Average Order Commissions
Frequency - 1.40
Lab Tests Digital storage of from High margin on
health records users in a month own brand
Paid consultations (June’19)

Over-the-counter Insurance Support Market Share -

Drug 29%
(June'19)
Private Labels - 1Mg,
Ayush, 1Mglabs
 PharmEasy was started to deliver medicine online but after
seeing the market demand, it started providing Lab Tests and
Health Package to the customers.
Shift in business
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Offline pharmacies retail stores (brick and mortal retail
model - PharmEasy pharmacies) are currently responsible for 99% of the medicine
sales per year, with E-Pharmacy contributing to only 1% of the
total medicine sale in India. (source)The biggest reason
for this is the most of the pharmacies stores sells the medicine
without any prescriptions and even the customer feels
expensive choice to consult the doctors.

PharmEasy started providing Free Consultations to the

customers where the customer needs to select the medicines
and the PharmEasy will provide free doctor consultation before
delivering the medicine.
Strengths and
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Strengths Weaknesses

Weaknesses -
PharmEasy The largest Network Less control on delivery agents

There are many large and existing

Strong pricing control and high
healthcare product
margin on some products
brands are available so need to
because of its own healthcare
face a strong competitions
product brands.
with them.

Strong pool of satisfied customers

where 43.30% Need to improve SEO and
customers visit the webpage direct presence on social media
on the sites.
Strengths and
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Strengths Weaknesses

Weaknesses – 1MG Good network with insurance

Relatively a new market entrant
providers

Need to increase cities coverage

Strong financial backing because of
and setup team to
Sequoia Capital
reduce delivery time

Top player in Homeopathy product New entrant in less lucrative market

Strong SEO where 70.57% traffic

Need to improve customer retention
from search and 26.51%
rate.
traffic directly
 Competitive Analysis - Performance

Specification 1MG PharmEasy

Products In 5+ space In 3+ space
Return Policy 7 days 30 days
Delivery time 2 to 7 days 1 to 7 days
Competitive
Edit
App store Master(Play
downloads text
Analysis
styles
Store) 10M+ 5M+
- Performance 4.4 (319k Reviews) on playstor, 4.7 on 10S
4.5 (209K Reviews) on playstore, 4.4 on 10S
App store rating (Play Store) store

Search medicines from more than 34 Search healthcare products from 10 categories,
categories, Refills
App Features
book appointments, Pill Reminder reminder

186559 followers on FB 98095 followers on FB

Social Media Profile

Overall visits per month - 9426242, Average visit Overall visits per months - 1785703, Average
duration - 04: 14 minutes, Page visits - 2.762, visit
No of website visitors per day Bounce duration - 04: 03 minutes, page visits - 4.477,
rate - 60.37% Bounce Rate - 64.76%

#219 in India, 70.57% traffic from search #881 in India, 58% traffic from goole search
Alexa Ranking and traffic source

# 1 on play store and # 3 on 10S in Medical # 11 on play store and # 4 on 10S in Medical
Leaders boards on iOS and Play store Category Category
 After PharmEasy acquired Medlife, they have become the
single largest competitor in ePharmacy. Their combined
market share has become more than 45% with the largest
pool of doctors, labs, and pharmacies. Now, it can reduce
the delivery time to 1 day or even shorter. Netmeds is
Predict
Edit Masterthe future
text styles acquired by RIL and Amazon has lunched Amazon Pharmacy.
Now, online pharmacy players will have to face a strong
initiatives competition.

To compete with strong financial backing companies, 1Mg will

have to setup teams from scratch to reach the new
cities and deliver the products faster in the existing cities. They
will also have to work on cutting the delivery cost.

Now, to add new customers and improve the retention rate, it

may start approaching the customers in different
ways. It may add pet products as well as may add pet
counselor together with the existing products. They may start
concentrating not only on humans’ healthcare products but
also on humans beloved pet animals’ products. This
strategy may also help them to get hold in the rural area
market as well.

It may also release the application in local languages to add a

new group of customers.