The First Ever Application Based Drug Delivery Service

“MED-DEL”

Prepared for
Dr. Mehdi Hussain (MdH)
Assistant Professor,
School of Business & Economics,
North South University
Sec -07

Prepared by: i-Marketer

Name ID
Md Inquiyad Awal 1915024660
Maliha Chowdhury 1915042660
Nasifur Rahman Sharif 1915043660
Sumaiya Habib Tajre 1915261660
Gazi Maruf Ahmed 1915289660
 Table of Contents

Contents
Executive Summary ................................................................................................................................. 1
Situation Analysis .................................................................................................................................... 2
Target Market ......................................................................................................................................... 4
Segmentation .......................................................................................................................................... 4
Market Need ........................................................................................................................................... 5
Market Trends ......................................................................................................................................... 6
Market Growth........................................................................................................................................ 6
Marketing Objectives .............................................................................................................................. 7
SWOT Analysis......................................................................................................................................... 7
Competitor Analysis ................................................................................................................................ 8
Marketing Strategy ................................................................................................................................ 10
Marketing Mix ....................................................................................................................................... 11
Business Analysis ................................................................................................................................... 14
Action Plan ............................................................................................................................................ 14
Executive Summary
Pharmaceuticals medicine industry is considered as one of the largest sectors of all in
Bangladesh. Medicine is something that is required by every single human being alive. There are
a lot of companies who are manufacturing several kinds of life-saving medicines. The demand
for medicine is increasing in our country day by day and currently, the medicine industry is
covering eighty percent of nations demand. The well know two largest medicine manufacturers
are Square and Beximco Pharmaceuticals and there are so many pharmacies almost everywhere
in Bangladesh such as Lazz Pharma, Kotha Pharma, Day night pharmacy, popular pharmacy, 24-
hour pharma, Sonar Bangla medical, etc. People are purchasing medicines from physical stores
for years. But this is the era of internet and everything is becoming online based for instance
Pathao, Shohoz, Chaldal. People even ordering food from mobile application such as FoodPanda,
Hungrynaki. Therefore, we also saw a market and business opportunity for application based
home delivery service which we have named “MED-DEL”. Our startup company is unlike all
other website based home delivery services. Because we are doing it through a simple android
application. An android application is more convenient than website based services I believe we
all can agree with that. Our services will be provided 24/7 through third party delivery services.
We will store the medicines in our own warehouses which will be directly delivered by the major
medicine manufacturing companies of the country. We will be focusing mostly on online
promotions. Also, we will do seminars and campaigns about or services so that people know
about it.

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Situation Analysis
Background: In Bangladesh there are different industries and pharmaceuticals/medicine
industry is considered as one of the largest sectors of all. Medicine is a necessity of our day to
day life and it falls under the basic or physiological need of Maslow’s hierarchy of needs. There
are a lot of companies who are producing and importing various kind of life saving drugs and
chemicals. The demand rate of medicine is increasing in our country day by day and presently
the medicine industry is fulfilling ninety eight percent of native demand also exporting
medicines to other one hundred and fifty countries which means the sector is still evolving.

The names of some pharmaceutical companies are given below:

Product Introduction: As it is a generation of technology and internet we want to introduce an

Application based service for delivering medicines and consulting medical related factors. The
name of our business will be “MED-DEL”. People need to install the app from the play store and
through the app they can avail different kind of services from MED-DEL. The services which the
mobile application will be providing are given below:

 Drug delivery service: Customers need to go to the app and place an order of their
required medicine from the list. They can search it and also can type the name and
address. There will be riders and delivery person from MED-DEL. Customers will get a

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 confirmation call from the service center and after confirming we will send the delivery
person to the customers to deliver the medicine.
 Free Pressure Check-up: MED-DEL is new in the market so, to make people aware of
this application MED-DEL will be proving free blood pressure check up. Customers ask
tell the delivery boys to do this.
 Free Diabetes Check-up: Diabetics is a very common disease in Bangladesh and people
check it more often. MED-DEL will be proving free Diabetes Check-up. Customers ask
tell the delivery boys to check the sugar level of the customers.
 Consultation for drug confirmation: There will be some qualified doctor who will be
performing from MED-DEL. If the buyers have any queries regarding the prescribed
medicine they can make a call from the app to ask questions to the doctors.

Mission: The mission of MED-DEL is to provide life saving drugs door to door in the minimum
time frame. (24/7 Delivery)

Vision: MED-DEL will be in the 1st position of medicine delivery service and will be the market
leader in the market of application based services.

Core Values:

 We keep our promises and don’t compromise with quality

 We value the time and convenience of the customers
 The team efforts and synergy among all employees in MED-DEL are high.

Our Goals:

 Target customers from prime locations in Dhaka city and make them aware.
 Gain maximum popularity in the sector of online market
 Make people aware of the use and necessity of our application based service

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Target Market
MED-DEL will be doing selective specialization as we will provide medicines for the Prime
Smartphone users only.

Segmentation
Geographic Demographic Psychographic

Area: Bangladesh Age: 15– 55 Benefit: convenient way for the

customers with an user friendly
Location: Gender: Both male and Female mobile application 24/7
 Mirpur Cohort of Society:
 Gulshan Millennial(s) Lifestyle:(Person:
 Banani activities/opinion/interest):
 Dhanmondi Income(monthly/family): Any  Introvert Individuals
Income Level  Lazy Opportunists
 Varity seekers
Social class: Upper middle class  Agreeableness
to Elite Class  Extraversion

Education: Primary Level Personality Type: (person)

Religion: ALL
Occupation:
 Student including School
and College graduates
 Service Holders
 Corporate People
 Business person
 Retired Person
Family Life cycle:
single, young married, married
with children/no children,
married with older children,
empty nesters
 Ambitious
 Authoritarian
Personality Type: (brand)
 Sophistication
 Sincerity
User status: Any smart phone
users
Occasion: Emergencies (24/7
home delivery)
Perception: Started as the 1st
Bangladeshi 24 hours Medicine
home delivery service

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Positioning Statement: 1st Bangladeshi app based 24/7 medicine delivery service.

Tagline: Medic At your Fingertips

Audience

 Tech Savvy: We will be targeting people who are dependent on electronic devices and
never misses a chance to try a new technology
 Prefer Convenience Over Ambience: There are some groups of customer who always
think about the convenience even they are willing to pay higher for a better service. We
will make Fast delivery make the purchasing process convenient for the customers.
 Always on the go: There are busy workaholic people who barely manage time for
important things. We will make life easier for them by introducing our service

Market Need
People’s life is getting busier day by day, especially in the metropolitan & surrounding areas. To
keep up with their busy schedule, they need quick, reliable, & anytime-anywhere medicine
delivery assistance to purchase their medicine.

App based ordering & delivery marketplace is a promising business idea from the very
beginning. And as an app based medicine delivery portal, we feel that customers need this
system eagerly. Those needs are:

 Efficiency: People always want to be more efficient when they buy anything. For
medicine, people don’t want to compromise with the quality.
 Convenience: People now a day want to purchase their desired product without any
difficulties and within their convenient places.
 Dependability: Medicine is a very sensitive thing to compromise when it’s about quality.
People want to buy their medicines from trustworthy and reliable sources.
 Quality: Dependability and quality are interrelated with each other. Without quality
product delivery, people don’t show dependability to the brand or sources.

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  Economy: Sometimes, it’s hard to get every medicine in one place. It’s makes buyers to
search for the specific medicine to different places. As much as it is time consuming, it’s
also an economic factor for productivity and cost.

Market Trends
In Bangladesh, medicine buying trend is people go to shop physically. Look for their desired
medicine and buy. If don’t find specified medicine, they go to other shops. This is not convenient
for people for older ages and sick people. It is also much time consuming. And most importantly,
job holders who look after their family don’t get time to do this.

Market Growth
App based online delivery industry size is gaining momentum. They need Uber, Pathao etc to
move from one place to another, FoodPanda, HungryNakietc to fill their appetite by ordering
foods online. This is also influencing the medical industry.

Also, with increasing internet penetration & rapid smartphone adoption, app bases medical
delivery system have potential to grow in this market. Moreover, some of the growth factors
we’ve found are:

 Convenient in Every Way: There is a growing need for time, a growing need for
convenience, and app based delivery solves a lot of those problems for this generation.
 Availability of Medicine: As we are managing our own warehouse directly from
manufacturers, it won’t be a problem to make medicine available to our customers.
 Trustworthiness: There is a chance of getting duplicate medicine from local pharmacy.
But we are assuring the reliable source of authentic medicine.
 Saves Time: MED-DEL will be an one-stop solution for every medicine. It’ll reduce
difficulties for people who have to search medicine in different places, when they
couldn’t find their desired medicine.
 Customer Relationships&Service Enhancement: Another most important for a star-up
company is relationship with their customers. We as a new business in the market, we’ll

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 develop our relationship with our customers through different promotional activity like
free pressure checkup and diabetes checkup.

Marketing Objectives
The marketing objective of MED-DEL is to provide and deliver quality prescribe medicine to its
customer at best price. Our aim is to provide fastest medicine home delivery in need of
customers. Our marketing objective is also to increase awareness among consumers and increase
our sales by the end of the year. Our objective is to target new customers and retain existing
customers through promotions.

 In each quarter, increase repeat customers by 10%

 Decrease customer acquisition cost by 7% each year
 Increase 20% company sales by 2019
 Achieve market share of 30% for an individual product within 3 years of launch
 Increase number of customers by more than 30% per year

SWOT Analysis
Strengths:

 Efficient and speedy delivery and simple ordering process

 Quick treatment with just one click in app
 More convenient compared to physical drugstores
 Direct supply of medicines from manufacturer will decrease cost
 Providing prescribed medicines by ensuring privacy.
 No cost for renting a physical medicine store
 Special opinion from expertise will be delivered regarding suggestions about healthcare.

Weakness:

 As application based online medicine delivery is new concept in Bangladesh patients may
feel worried about the regulation system?

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  As people are not much familiar with the concept of online medicine delivery this can be
a weakness as well.
 Sometimes the quantity required for free home delivery can be more for an individual.
 Initially we will not be able to cover all areas of Dhaka city.
 As we are the first of its kind so proper information for research is absent.

Opportunities:

 Growing Market for potential customers who use mobile phones

 People are more privacy concern now a days
 Rising trend of online use in the era of Internet and increasing awareness of e-commerce
 Increasing awareness about healthcare needs
 Lack of dominant strong competition

Threats:

 Increasing of direct, indirect and potential competitors will be our biggest threat.
 As we will collect medicines from direct manufacturer, if the price of medicines increases
it will be a threat for us
 Risks of delivering medicines through third party
 Verifying authenticity of prescription is difficult
 Low entry barrier for online medicine delivery

Competitor Analysis
Direct Competitors: As a startup, there are no direct competitors for MED-DEL. Because of
no online medicine delivery has app based technology is there to deal with customers. So we
will be the pioneer in this technology for medicine delivery. Initially there will be no direct
competitors until any company comes up with their own application based technology. But we
can face some indirect and potential competitors.

Potential Competitors: There are so many renowned pharmacies almost everywhere in

Bangladesh such as: Lazz Pharma, Kotha Pharma, Day night pharmacy, popular pharmacy, 24

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hour pharma, Sonar bangla medical etc. These medicine companies distribute their products to
the retailers which are the drug stores and the drug stores supply medicine to the consumers.
People are purchasing medicines from physical stores for years. But this is an era of internet
and the people from millennial generation mostly depends on internet and sometimes they do
not have much time or they do not feel convenient going to medicine shops to buy medicine.
As now everything is in the smart phone and now people can order anything from their smart
phone like- buying tickets, paying bills, calling ride sharing services, food delivery, grocery
shopping, ordering cloths and much more. So now they can go for online medicine delivery and
create a ‘Mobile Application Based platform’ so that people can order their medicines from
home in the case of emergencies and can save their time and money. So in that case these stores
can be our potential competitors.

Also Pathao, Uber, Shohoz etc. can think about online medicine delivery. Because they are
already using this type of technology. So in future by estimating the market demand they can
start medicine delivery business in online. So we assume them as our potential competitors.

Indirect Competitors: Some of the companies have already started delivering medicines door
to door through online website but none of them have the mobile application to make it easier
to deliver the medicines. Those are our indirect competitors and the name of the online
medicine stores are given below:

 Oshud.com: This is an online based medicine shop and people can order drugs from their
website and they have time slots and if someone needs to order medicines via their
website he/she has to order within those given time slots. There are chat box for help and

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 they provide various type of medicine by taking orders in social media, email, SMS etc
and also check prescription before taking orders.
 BioMed Pharmacy: Bio med is also an online based shop where people need to registrar
1st to purchase any medicine. Then they need to follow some procedures and after adding
their orders to the cart they can order medicine. They take orders from their website.
 E-Pharma: This is an online based medicine selling store and proplr need to log in before
ordering and the website also perform in given time schedules. Customers need to check
the scheduled slots before ordering anything.
 Pharma 71: This online medicine shop take orders from facebook and sell different type
of medicines and people need to provide the prescriptions to them before ordering
medicines. This onlline pharmacy take orders between 10 am to 10 pm.
 Pharmacy.com.BD: This website provides different kind of products and services. Not
only medicines they also supply medical equipments and give premium services such as:
home diagnostic, nurse, physiotherapy etc. They also sell health care and beauty
products. The procedure of ordering is like other online shops. People need to add their
order on their cart.

Marketing Strategy
Our company MED-DEL will be a B2C company and will be associated with the Medicine
industry. It will provide a mobile platform through which a customer can get the convenient way
of receiving emergency medicine and some additional complimentary services. The process will
be quite simple, it will similar to the food delivery applications. The only difference will be
delivery of medicines from drug stores instead of food from restaurants. In Bangladesh using an
application for drug delivery like MED-DEL will be first of its kind, but it doesn’t mean that
there will be no competition. There are some Rivals who also delivers medicines but they do that
by using a website and a helpline. And so tackle them we will be utilizing the components of the
legendary Marketing Mix.

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Marketing Mix
Product: MED-DEL will provide product and service. The product will be the mobile application
available in both Play Store and Apple Store. And among the services, there will be drug
delivery, free pressure checkup, free diabetes checkup and consulting service. The whole process
be just like given below,

 Open the application

 Registration with Facebook or Gmail
 Enter the Drug name in Search box
 Enter the address of the receiver in the search box
 Press confirm
 Deliver Boy will accept the request
 Delivery Boy confirms with the customer
 Delivers the drug to the customer

And in the additional service customers can even get free pressure, diabetes checkup from the
delivery by and consultation from our medicine expert

Price: In terms of pricing we have made some assumptions regarding out Variable cost, Variable
cost per unit, Fixed cost, Expected sales per year, number of total units etc. on yearly basis and
using these we have came out with our Mark up price, Break Even Volume and expected
Revenue.

Total Variable Cost (Warehouse maintenance, Promotional activities, Application & Software
maintenance) = 480000 Taka

Total Fixed Cost (Application & Software Development, Medical Consultant’s Salary,
Additional expenses) =470000 Taka

Desired Return =20% markup on sales

Total Number of units =40000 units

Expected Sales =20000 units

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  VC per Unit = Total Variable Cost / Total Number of units

= 480000/40000

= 12 Taka per unit

 Unit Cost =VC per unit + (FC/ Expected Sales)

=12 + (470000/20000)

=35.5 Taka

 Mark up Price =Unit cost/ (1-0.20)

=35.5/0.80

=44.4 Taka Sales Price

 BEP in Units =FC/ (Sales Price- VC per unit)

=470000/ (44.4-12)

=14506 units (if sold then there won’t be any Profit nor Loss)

 Profit = Revenue – Cost

= (SP * Expected Sales) – (VC per unit * Expected Sales) + FC

= (44.4 * 20000)-(12 * 20000) + 470000

=174000 Taka

Place: MED-DEL is a startup company. Initially it will take small initiatives by operating only in
Dhaka, Bangladesh. And even in Dhaka it will only be covering 3-4 areas. More specifically our
corporate office will be located in Banani and will have 3-4 delivery points such as Banani,
Gulshan, Mirpur, Dhanmondi. These delivery points are connected with our Inventory
Warehouses from which our delivery boys will be colleting drugs. And in the future we will
definitely try to expand our service not only in Dhaka but also in the entire Country.

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Promotion: For any Startup company Promotion is the most crucial element. The reason is their
first job which is to make the customers aware of the company and product. As for MED-DEL,
the whole process is done through the Mobile application, so everything needs to be done
through online. So we will mostly be using Digital Marketing which includes,

 Free Delivery: In first 6 month we will be giving 5-6 delivery service to each new
subscriber of our Application.
 Social Media Marketing: MED-DEL will have its own authorized Facebook, Instagram
and Twitter accounts in the social media platform. And all of these will be promoting
every sing activities of it. And in the first year there will be a plan for launching 1
campaign in every month through social media. We will also be utilizing Youtube ads.
 Mobile Marketing: Smartphone is the device which is carried literally by everyone in the
whole world. And to reach them PUSH-PULL service through SMS will be used. In
those messages customers will find different discount codes, educative information and
notifications through application.
 OVC: TVC (Television Commercial) is the most traditional component for marketing.
But for online we have OVC (Online Video Marketing). We are looking forward to use
Emotion appeal in those OVC. And these OVCs will be shared in all the social media
platforms. We will also be utilizing Google Adsense.
 Endorsements: MED-DEL will also be assisted by influencers such reputed businessmen,
University Teachers, Popular bloggers and Youtubers.
 Offline Marketing: in the new era everyone uses digital Marketing but that doesn’t mean
Offline marketing is not useful, it is. For MED-DEL we will be using brochures which
will contain QR codes which take them direct to the App or discounts. And we will also
be organizing seminars, campaigns in different universities, public places and popular
shopping malls.

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Business Analysis

Here we have done the calculations (Assumptions) based on only one product. In the first two
years, we will be facing a certain amount of losses. And from 2021 we will start making profit
gradually.

Action Plan
The first month: We will focus on online promotions more than offline. Our team will go to
different universities to promote our company; so just after launching the service in the first
month we will start online promotion on social media to let people know more about our unique
service we will do seminars to aware more people about “MED-DEL”. We will also try some
offline strategies by going to different hospitals, universities, shopping malls to provide posters
and brochures which will contain QR codes. We will be giving 5 to 6 free home deliveries in the
first three months to every new customer subscription. Doing these activities our app subscribers
will increase day by day as. In the beginning, we will assign our delivery service only in
Dhanmondi and Gulshan area Then finally, we will start a contractual partnership with the
pharmaceuticals manufacturer and also with a third party delivery service.

The second month: In the second month, we will sign up for Google ad sense which will
advertise about our services in different well-known websites. From this, we will be able to
generate revenue slowly. We will increase the number of seminars as people need to know about
the services more in order for us to grow. Then, we will try to focus our services in the DOHS

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areas since physical medical stores are not available everywhere in those areas. We strongly
believe our services will be required more in those areas because of the convenience of it.

The Third Month: Within the third month, we will spread our services in Banani, Mirpur areas.
And then we will share our first OVC in those social media pages which will create a buzz.
Another crucial work can be done we are able to convince the doctors from reputed hospitals to
recommend us. We will also start SMS marketing within the third month about our services
based on the data we will be getting from those seminars and campaigns.

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