SastaSundar.com

Marketing Integration Plan

By

Korak K Majumder

• About Sastasundar.com • Market Study a.) E-Commerce b.) E-Retail in Pharmacy c.) Retail Pharmacy • SWOT Analysis • Marketing of Sastasundar.com • Segmenting and TG Mapping • Marketing Mix • Communication Mix • Franchisee Modeling and Success Parameter • Marketing Budget

Index

• Sastasundar.com is a online pharmacy stores with centralized hub in Kolkata Baruipur at backend. • Orders are executed at the doorstep of customer through human interface termed as health buddy. • Minimum Order for Free Delivery Rs250/- • No time commitment seen in marketing offers for delivery. • Already have 100000 customer touch base in the city. • Total Internet savvy people 3.5million of which 1.5 is through desktop and other are through mobile internet. So mobile apps

development is wisely important. Total Population 48million • Total Internet use in Howrah 1.5 million of which 1million through non mobile internet surfer. Total Population is 5million. • Widespread digital campaign would be requiring to convey the messages and benefits of S&S. Optimum usage of digital media

vehicle. • The motto or goal is to create S&S an one stop solution for any medical requirement.

Sastasundar.com

MARKET STUDY

E COMMERCE In INDIA

In the last five years, online retail -- both direct and through marketplaces – has had a helluva ride, 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 retailers 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, and was primarily driven by books, electronics and apparel. 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 + 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 neighborhood 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 et al 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 150 million by December 2012. 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 et al. Some initiatives in market HealthKart.com Drugstore.com Drugsneed.com Medist.in Medplus Appllo Onerx.in

PHARMACY RETAIL MARKET STUDY

From Trade to Service The core USP of chain store retailing is to provide consumers with a one-stop shopping solution to all their health needs. This is achieved through a large network of retail outlets with a focus on fulfilling the preventive, supportive and curative needs of individuals and society at large. Survey of Pharmacy-chain Owners In today is bustling economy, one can never underestimate the power of small stores even in the presence of the big-box format. Hence, large pharmacy retail chains operate express, mid and large-format stores. The merchandise is as per popular demand, covering all major FMCG and FMHG categories, with a clear emphasis on providing genuine medicines. Reliable merchandising and regular availability are crucial for pharmacy retail outlets to survive today. In the face of increasing competition with greater penetration of entrepreneurs and retailers into the pharmacy sector, the design and layout of the stores have also gained prominence. A distinct and contemporary design helps attract the customers attention, and enables the store to stand out among others. Special efforts must be made to provide extensive lighting, and incorporate more effective space management techniques through linear display and the use of designer elements. In order to derive economies of scale, the methodology used for roll out and management should ideally be based on a clustered approach. This will enable the chain to maximize availability and be operationally efficient in the shortest possible time. Advantages of Pharmacy Chain Retailing Over Traditional Medical Retailing Formats Pharmacy chain retail offers several benefits to customers over traditional medical retailers. One of their key offerings is the issue of bills. This ensures that customers receive absolutely genuine medicines with every purchase. Since traditional medical retailers do not practice this kind of standardization, customers cannot expect the same level of assurance. Besides, pharmacy chains employ licensed pharmacists and are generally associated with trained doctors. Thus, customers receive ample reliable advice about their medication, and the benefit of doctor-endorsed substitution, as opposed to self-substitution. This is a notable safeguard to the customers health. Opportunities Pharmacy chain retail in India is currently valued at over `440bn, and it has grown at an average of 18 percent per annum over the last few years. It is anticipated to grow at the rate of 15 percent CAGR over the next 5 years. The industry comprises over 8,00,000 pharmacy retail outlets and 50,000 stockiest/distributors. Nevertheless, it remains largely disorganized with organized retail constituting only 4 percent. This provides ample scope for new entrants in the field of pharmacy chain retailing. Presently, two-thirds of organized pharmacy chain retail exists in urban areas and one-third in rural areas. However, rising incomes and the development of tier II and III cities have opened up several new opportunities for organized pharmacy retailers across various economic segments. Currently, leading players in organized pharmacy retail are Apollo Pharmacy with 1,100 stores, Med Plus with 800 stores, Guardian Pharmacy with 240 stores and VIVA with 256 stores. Advice for Prospective Pharmacy Chain Retailers High margins of 25 to 35 percent make pharmacy chain retailing a very lucrative business in India. Almost all the major foreign players are eagerly awaiting policy changes, which promise to make it more conducive for them to enter the Indian market. Currently, regulations permit 100 percent FDI only in single-brand stores, and pharma-retail falls into the multi-brand category. Further, with the growth of the rural economy, there is tremendous opportunity to be unlocked through deeper penetration of the rural market. This, coupled with good margins and the overall boom in organized retail, will make the big retailers look at pharma retail quite favorably. However, despite this untapped potential, there are challenges in the form of inadequate infrastructure, skilled manpower crunch, high attrition levels, soaring real estate prices, regulatory framework and political sensitivity, along with supply chain and logistics issues, which could prove to be intimidating for newcomers in the field. Future of Pharmacy Chain Retail in India The $4bn domestic pharmaceuticals formulations industry is dominated by 5,00,000 retailers in the unorganized sector, and is largely limited to the urban markets. Organized retail is at a very nascent stage in India unlike the United States and the United Kingdom, where retail chains contribute 54 percent and 48 percent of retail pharma sales respectively. There are approximately 10 players operating 500 outlets in the organized retail sector. In the coming 3ñ5 years, the growth of the organized retail is expected to be huge, but is also expected to be limited to metros and tier-I cities. The current fragmentation has resulted in several limitations in the quality and integrity of supply chains, despite the latter accounting for more than 30 percent of the retail cost of a drug. The fragmented structure makes it prohibitive for pharma companies, distributors and retailers to invest adequately in the infrastructure necessary to facilitate stock and secondary/tertiary sales visibility. This has hampered the planning process while rendering the supply chain porous for the entry of counterfeits. Additionally, there are issues around unfair retail substitution and compliance to GMP, which are detrimental to the patients interest.

SWOT ANALYSIS of SASTASUNDAR.COM

STRENGTH •Offer more discount to end user making it economical for tertiary consumer. • Network as local medicine shop. • First a Kind in Kolkata •Health Buddy a way to localize the effort of reaching each doorstep pin code wise. Same Model of any courier company. •Mother company repute will help to gain acceptance. •Strong backend team for digitization and Stocking.

WEAKNESS: •S&S service are not known to people. •There is no retail presence so non internet users are still untapped. •Communication of S&S and Health Buddy need to expedite. •Only one central stocking system, delivery lag time. •Minimum order constraint for delivery.

OPPORTUNITY •Make network Municipal ward wise make the region defined for franchisee operation. E-Commerce is an emerging new market for E retail in Pharmacy product. •Many other services such as cross sales of insurance 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. Ex: Doctor Chamber’s as its not normal Pharmacy retail outlet, legal complication can be avoided.

THREATS • Open market, local medicine shop provide doorstep delivery nowadays. • Big Players like Emami, Medplus, Appllo, 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. •FDI in Multi brand retail is approved by Union Government so more foreign player will come to grab market share with advance technological infrastructure.

Marketing of SASTASUNDAR.COM

Key Area of Focus Recommendation Potential Impact

•TG Mapping •Awareness •Attributes of S&S •Brand Identity Building •Emotional Marketing •Group Norms & Loyalty Marketing •Trade Marketing & CRM

•TG Mapping and Market Mapping will be done in accordance's to Municipal Corporation Ward Scenario or Census Report. •Awareness Development will be on ground and Digital . On Ground BTL 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. •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.

•TG Mapping we will able to devise marketing spend per person reach. •Awareness Campaign will give franchisee a option to meet all of their potential buyer and customer in one set. And also get to know their buying behavior with their health profiling through medical camp in each ward. •Digital Campaign will enhance reach and also reassure the customer faith on S&S service quality and standard. •Brand building or Positioning S&S as one stop solution provider to your all medical enquiry and product of Pharmacy. Where other verticals can also be enriched, by cross sales lead for medical insurance of potential client. •Emotional Marketing will gear up sales volume and can attach potential buyer more quickly, sole reason youngster will promote S&S in each home. We will host there performance and promote youngster on our website or if budget permits it can follow with award ceremony for kids . Penetrating any sales routed through kids are more easier as they are parents most valuable possession. • Loyalty marketing will allow classification of regular clients and further classify franchisee into diamond, gold, silver clubs where they will compete to earn extra benefits , be get sponsored tour from company, commissioning structure can be implied with more defined goals, that can be decided as per required figures in the Top line. •Trade offs & discounting is regular affair for beauty segment & wellness product which need to advertising digital web space to turn client retail to e retail.

SEGMENTING & TG MAPPING

TYPE OF SEGMENTING

•Age

•Gender

•Income

•Health Profile

•Lifestyle

PURPOSE •Age classification will define required product concentration according to municipal ward. Mainly four major classification. Senior Citizen : Pharmacy requirement high. Youngster: Nutrition and Dietary Supplement requirement will be high. Women: Beauty related product and women health related issues. Man : Economical & Fast Service Guarantee. •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. •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. Health Profiling :Most vital information for pharmacy related items an backward integration stocking of material for central storage. 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.

OBJECTIVE •Product category classification in accordance

to need which will help in volumetric sales increase in top line.

•Non pharmacy product require persuasive marketing so manufacturer will give better deal to S&S over volumetric sales and focus SKU, marginal profit will be high. Similarly

franchisee commission structure on each unit sales or slab sales on focus SKU can be

classified from time to time.

•Volumetric profit concentration and sales target plan devising will easy for the Sales

Team.

•Most vital classification for all item nary and also franchisee contribution towards sales

goal. And this profiling is similar to a approach of Know your customer. This will help to create marketing campaign in accordance customer

profile.

•Lifestyle products where the budget for all manufacturer runs high . We can covert the budget into commission of franchisee sales man for promoting the product at specific

locality. Such as home to home operation for manufacturer during product launch period.

MARKETING MIX

Consumer : Tech savvy people of urban and semi urban areas of Kolkata, Howrah, 24 Parganas (North & South). For franchisee operation, local resident within 10KM radius ( it can be more or less depends on franchisee model) will be the target, need & want are to defined by franchisee. Then we can add more valued consumer.

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

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

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

POSITIONING SASTASUNDAR: SASTASUNDAR.COM is one stop solution to all of your medical need and requirement within your budget. Their assistance is as local as neighborhood buddy.

Communication MIX

CAUSE

TVC

OOH

ACTIVATION

PR

DIGITAL

IDENTITY Branding

EFFECT

TVC is duly important to attract consumer attention. Kolkata and Howrah is target market it most favorable to choose television slots for homemaker favorite time. Attach Brand to

endorse program which have high viewership ratings. This campaign must be launch when most area distribution centre are all set to operate. It create awareness about S&S presence

in the market.

OOH advertising is best for remembering the cost will low to TVC campaigns but communication will be more time. At least a Quarter is required to run a campaign to mark

presence around the city. It will help to promote different USP and Services of S&S.

Health Camp, School Activity, Organizing Pro Marathon for children or senior citizen. To create an direct interactive session with prospective clients. Leafleting in locality through

newspaper vendor will mark your presence within your local TG in more cost effective way. Wall painting in Howrah and part of semi urban areas of Kolkata will increase the share of

voice for sastasundar.com

Raise Voice create social campaign against MALNUTRITION in Children. Plant a tree Campaign associate with Go Green, Earth Hour, Green Peace etc. This will create buzz in regular news

column and create positive corporate image among TG.

Use digital platform like news letter, creating mobile apps, communicating discount offer, Redeem Loyalty Points. Make more Health Buddy joining through Linked In by communicating

business opportunity to prospective investors.

Franchisee Profiling in shop architecture to placement of articles as per franchise brand

manual. Setting Colors for brand Identity etc.

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 Multiband Retail, but online retail will be favored as in terms of specific needs or want of consumer daily requirement. In term Kolkata scenario big retail is not possible and so digital or e retail have a immense opportunity. Sastasundar.com 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.

Franchisee Operating Cost Sl.No Overhead Unit Rate Amount

1 Sales Man 2 10,000 20000 2 Telecaller cum Despatch Assitant 1 8000 8000 3 Small Retail cum office 1 8000 8000 4 Electricity, Communication 1 5000 5000 5 Travelling 30 200 6000

TOTAL 47000

Key Features or Points for Each Franchisee centre to Profitable Making Unit. •Distributor Margin is calculated @ 6%-8% over sales. •0.5% is Marketing spend per franchisee BTL over net sales. 0.5% on overall net sales in brand building ATL. 1% in Trade Marketing and Franchise meet, annual conference and replacement of Franchisee Board and Other Marketing Collaterals. •Each Franchisee minimum sales target reach must be 30lac per month and incentives sales slabs must be created over each interval of 5lacs. •Under Each Franchisee minimum number Household is 1440. •Discount Slab for Customer 10% – 15% depending upon the order size and value of Loyalty Points each year. •Each month target need to set in relation to achievement of previous year. •For starting phase of 3 months company need to give man subsidy @ 100% whereas it might range at level of 60:40 ratio between franchisee and company in later period.

Franchisee Modeling and Success Parameter (Broadcasting to Narrowcasting modelling)

THANK YOU