Now Life is a just a click away!

www.Instantmed.com.pk

Head-office:
Bushra Jabeen House No#233, Ehtisham Ahmad Street no#16 Fatiha Durrani I-8/3, Islamabad 0313-1234567 0314-5123456 0312-5859321 0300-6543210

Contact:

Hina Shaukat iNsTaNt MED

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(Office) 051-2244880

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY

ENTREPRENEURS

1) Bushra Jabeen (SP08-BBA-014) 2) Ehtisham Ahmad (SP08-BBA-015) 3) Fatiha Durrani (SP08-BBA-022) 4) Hina Shaukat (SP08-BBA-030)

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LETTER OF TRANSMITTAL

Sir Khalil-ur-Rehman Department of Management Sciences COMSATS Institute of Information Technology 21-05-11

Respected Sir, Enclosed is a copy of Instant Med..This report shows how we plan to enter the Pakistani pharmaceutical market by the online sale of Life-saving and other drugs of common use. We have completed the report on schedule and met all the proposed objectives within the given time .This report is the amalgamation of our hard work and dedication towards this subject .We thank you for all your help and guidance during this time without which this report wouldnt have been formulated today. If you have any questions and/or comments regarding the interpretation of this report please let us know. Thank you for your guidance. Yours Sincerely, Bushra Jabeen Ehtisham Ahmad Fatiha Durrani Hina Shaukat BBA 7A Enclosure: Instant Med.

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ACKNOWLEDGEMENT

First of all, we would like to say Alhamdulillah, for giving us the strength and health to do this project work till it was done. Not to forgot, our families for providing everything, such as financial aid, and most importantly their moral support understanding and enlightening advices related to the project. Internet, books, computers were our sources to complete this project. They also supported us and encouraged us to complete this task so that we will not procrastinate in doing it. Then we would like to thank our teacher, Sir Khalil-ur-Rehman for guiding us throughout this project. We had some difficulties in doing this task, but he taught us patiently until we knew what to do. He tried and tried to teach us until we understand what we supposed to do with the project work. Last but not the least, our friends who had been an evergreen source of love and support

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DEDICATION
This work is dedicated to our parents without whose patience, support and understanding we wouldnt have compiled this report today and also to our teacher Sir Khalil-ur-Rehman who had never failed to help us in any way possible to be professional and dedicated to our work.

TABLE OF CONTENTS
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EXECUTIVE SUMMARY________________________________________________ ____7 SECTION IORGANIZATIONAL PLAN______________________________________________________8 SECTION IIMARKETING PLAN___________________________________________________________14 SECTION IIIFINANCIAL DOCUMENTS _________________________________________________22

EXECUTIVE SUMMARY
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The Instant Meds Goal is to capture the market share of Pharmaceutical Industry of Pakistan by entering into the Online Trading of pharmaceutical products that include 1. Life Saving Drugs 2. Imported Hospital Drugs 3. Surgical Drugs and Products 4. Allopathic Drugs (Anti-Cancer, Anti-Allergy etc.) At Lowest price in the Market with no compromise on Quality and Safety Insurance. We will use the Market Penetration Pricing Strategy and our reliance on E-Commerce and Online Trading will aid this strategy. The absence of any franchises and outlets will minimize the fixed as well as the variable costs and this will help us in the provision of Lowest Priced products to the audience at large. We plan to invest our savings (Rs.200, 000 each) and then will obtain the loan for the remaining amount (around 10 lakhs). In the beginning our focus will only revolve around Islamabad but with the passage of time we will spread our roots to the other important cities of Pakistan. The Web forms the pioneer of our business as 21st Century is an Era of Technology and Internet where people use Facebook for social networking and prefer Online Banking over Conservative Banking Procedures. The dogma of Instant Med Pharmacy revolves around this change in people! We will not only entertain individual online orders but also enter as Suppliers for the leading hospitals and provide them with the respective surgical products again at lowest prices. Low prices and Quality services will tend to attract people to our end and in a passage of 6 to 8 months we will not only be reaping profits but also return our debts. We will market our website through magazines, hospital newsletters and newspapers.

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Section I

THE ORGANIZATION PLAN

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1.1 BUSINESS SUMMARY

The Instant MED. is an online customer delivering services website, aim is to provide prescription medications for our customers at the lowest prices. We will be able to sell prescriptions at reduced prices by carefully maintaining efficiencies in our operations and by targeting a specific segment of the market - those customers who pay for their prescription medications themselves. 1.2 COMPANY OWNERSHIP The Instant MED. is limited by Shares Corporation having shares held by stock holders. The main stock holders are the four members namely, Bushra Jabeen Ehtisham Ahmad Fatiha Durrani Hina Shaukat

1.3 LOCATION: Head Office is situated in I-8/3, Islamabad. As of now we would be operating our services only in ISLAMABAD. Our customers can also visit us at our main office about confirming any queries that they have, providing suggestions, feedback is welcomed.

1.4 MISSION STATEMENT Instant MED's mission is To provide customers with the best low prices for their prescription medications online, to deliver them medicines in just 3 hours! Our convenience and services will exceed the expectations of our customers.

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1.5 BUSINESS OBJECTIVES The objectives for the first three years include: Instant delivery of the prescribed medicines in round about 2 hours Exceed customer expectations with low pricing Increase the number of customers by more than 30% per year Develop a business that survives off its own cash flow

1.6 INITIAL INVESTMENT An average initial investment is of Rs. 15 Lac.

1.7 KEYS TO SUCCESS The keys to success are:

Satisfy our customers so they will return again and again Maintain low costs Provide better and low prices than all our competition.

1.8 PRODUCTS AND SERVICES

The Instant Med offers a wide range of prescription drugs online to its customers. We offer the following pharmaceutical range of medicines: 1.8.1 Anti-Hypertensive (For High Blood Pressure) Diuretics Calcium Channel Blockers Beta Blockers
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Alpha-Beta Blockers ACE Inhibitors

1.8.2 For Diabetes ORAL HYPOGLYCEMICS INSULIN & ITS VARIETIES

1.8.3 Cardiac Medicines ANTI ANGINALS STATINS FIBRATES THROMBOLYTICS & ITS VARIETIES

1.8.4 Anti-Psychotic Drugs 1.8.5 For Acid-Peptic Diseases (Ulcers, etc.): H-2 RECEPTOR BLOCKERS PROTON PUMP INHIBITORS HORMONES

1.8.6 Life Saving Drugs INHALERS AND BRONCHODILATORS STERIODS IONOTROPS

The Instant Med will only service customers who self-pay. The self-pay customers will be attracted to Instant Med because of its reasonable prices. For In order for a customer to purchase medications, they must first contact Instant Med via internet. The customer then needs to fill in the prescription, address and information of him in the form that is provided on the main website. Once it is filled in, the medicines will be sent out to the customer via personnel. Payment will be received at your door front when giving you
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medicines. Customers that are located near-by the main office may also stop by the office to pick up the medications.

1.9 COMPETITIVE ADVANTAGE Our keys to success include delivering customers with their prescribed medicines online, complete online pharmacy website first time introduced in Pakistan to deliver customers with their prescribed medicines in a short span of about 2 hours. We would be focusing on:

Consistent, accurate fulfillment of customers desires. Competitive and low pricing for the quality of medicines that are offered. Our Competitors include Pharmagen Online Pharmacy, D-Watson, Fazal Dins and
Shaheen Chemists.

1.10 LEGAL ENVIRONMENT We have been licensed, fulfilling in all the legal requirements, rules and regulations.

1.11 MANAGEMENT INFORMATION

All the four group members will play their part in management of the company. All are fresh graduates from COMSATS INSTITUTE OF INFORMATION AND TECHNOLOGY. 1.11.1 Ownership The Instant MED. is limited by Shares Corporation having shares held by stock holders. The main stock holders are the four members namely, Bushra Jabeen Ehtisham Ahmad Fatiha Durrani Hina Shaukat

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1.11.2 Personnel Plan The Instant Med will employ the following people: Sales agents: two at month three, an additional person at month sixth. Order fulfillment agents: two for month five, a third for month eight. Counter person/phone representative: one at month three. Website Administrators : 2 people Financial Managers : 2 people

1.12 OPERATIONAL PLAN As our main purpose is delivering customers with prescribed medicines instantly and at their homes, the consumer must fill in the form online via internet and we would be delivering medicines at their homes, we are matching up with the selected procedure that is as provided below. 1.13 PROCEDURE DETAILS The procedure will go like; 1) Order Placement You will place an order on the company main website by filling in the form regarding your prescribed medicines, information and address of your location. 2) Duration Once the form is filled in, the medicines will be sent out to the customer via personnel, we would be reaching out to you in round about 3 hours (max. time). 3) Payment Of Cash Payment will be received at your door front when giving you desired medicines or you can pay via your debit or credit card at the time of placing your order.

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Section II

THE MARKETING PLAN

2.0 MARKET ANALYSIS SUMMARY

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The Instant Meds target market consists of two different groups, Online orders and walk in customers. The Instant Meds pharmacy will employ two different strategies to reach these two diverse market segments. 2.1 MARKET SEGMENTATION Our customers can be broken down into two different groups, mail order customers and walk-in customers: Mail order customers: This group of customers orders their medication through the mail in an effort to save money. Generally, the mail order customers are older in age, typically over 50. In general, elderly customers consume more medication relative to younger people. The mail order customer will typically purchase maintenance medications- prescriptions for an ongoing ailment that requires regular treatment. This group of customers will also be more likely to purchase several months of medication at once. Walk-in customers: This group of customers is also looking for the lowest prices for their medication. However, they tend to purchase medications monthly at their local pharmacy, often at a higher price. There is not a common demographic for this group of people, other than living in the Portland metropolitan area. Some of these customers will pay for the medications out of pocket and some will submit a claim to their insurance company for reimbursement at a later date. Given below is marker analysis PIE chart,

2.2 TARGET MARKET SEGMENT STRATEGY The Instant Meds will seek to attract two different groups of customers and will thus have two strategies to attract them.
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We anticipate that by far our largest group of customers will be those who order through the mail. These customers will be targeted through an advertising campaign in magazines and newsletters that have an older (>55) audience who regularly need medication and are aware in advance of their needs. Walk-in customers will be targeted through advertisements in the local paper. Ads will raise awareness and our low prices. 2.3 COMPETITION AND BUYING PATTERNS Competition takes many different forms in the pharmacy industry.

Chain pharmacies: These are state or national chains such as Rite-Aid. The advantages to these chains are better prices through economies of scale, as well as personalized service. The personalized service takes the form of the chain having a record of your medication purchases as well as any allergies that you have disclosed to them. Local pharmacies: These are the pharmacies where you typically know the pharmacist and they know your medical history. This option is high in personalized service and convenience, and high in price. Mail order and Internet pharmacies: These are similar to the instant Med Pharmacy Canadian pharmacies: These pharmacies are located in Canada where the cost of drugs is lower than in the U.S. These pharmacies can be accessed through mail order, the Internet, or via travel. Recently there has been the trend for trips arranged for senior citizens in Northern States to travel up to Canada for the day to pick up their medicines.

2.4 STRATEGY AND IMPLEMENTATION SUMMARY The Discount Pharmacy will use their website to develop visibility and broadcast information.

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2.4.1Competitive Edge The Instant Meds competitive edge is superior pricing. To do that we must maintain our position as the low cost provider by thoroughly ensuring that costs are kept low through operating efficiencies. We will be able to do that by eliminating some of the services traditionally offered by pharmacies. For example, we will employ only one pharmacist and use pharmaceutical technicians to fill the void. As long as a pharmacist is on site during the hours of operation, we can use the pharmaceutical techs for all other capacities where other pharmacies use pharmacists. Other efficiencies are created by having only a small store front and conducting most of our business through mail order. Finally, The Instant Meds is not designed to hold the patient's hand during their purchase. We expect that the vast majority of our customers will already be informed of how to take the medication, and any side effects or drug interactions that should be avoided. We will simply provide each patient with a print out of all the relevant information for consumption of the medication. 2.4.2 Marketing Strategy The marketing strategy will be based on targeted advertisements, appealing to the customer's sense of value. The marketing campaign's goal will to be increase awareness of The Instant Meds with their target market. 2.4.3 Sales Strategy The sales strategy will be based on generating long-term relationships with customers. To facilitate that, we will provide medications at superior prices, have medicines in stock for both quick shipment and store front pick up, and provide superior customer service. All sales agents will be trained to provide friendly, knowledgeable customer service. By keeping to these simple, yet effective, business practices, we expect that our customers will make The Instant Meds their exclusive source for medications. For some, medications are an integral part of their lives, so establishing long-term relationships will ensure a large, loyal customer base.

2.4.4 Sales Forecast

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During the first month we will focus on setting up the store front and generating both local and national visibility. Sales activity will begin in month two. Sales during months three through five there will mainly consist of local business through the store front. In month six we expect to see a jump in sales from mail order. Sales will grow steadily from month six on.

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2.4.5 Milestones
The Instant Meds will have several milestones early on: Office/business set up. Establishment of the first strategic relationship. Profitability

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2.5 Web Plan Summary The website will be used for the dissemination of information as well as a mechanism for email communication. Initially there will be no ordering through our website since we do not expect that method to be widely used and trusted by our target customers.

2.5.1Development Requirements The Discount Pharmacy will hire a recent college graduate with a major in computer science to complete and maintain our simple website. This will keep costs down. 2.6 MODES OF MARKETING We will use the below modes of marketing: 2.6.1 Newspapers We will advertise about Instant Med in the leading newspapers like The News , Dawn and Business Recorder 2.6.2 Online Marketing: A group page has been made on Facebook where the users can post their comments and give valuable feedback to us. With the passage of time, accounts on Twitter and My Space will also be made to collect valuable feedback. Online ads however will be placed on all these social networking websites along with websites of the leading hospitals in Pakistan and newspapers.

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2.6.3 Magazines: Ads will also be placed in the most read magazines, which include the Spider magazine which is popular among teenagers and People obsessed with latest gadgets and technology.

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Section III FINANCIAL DOCUMENTS

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3.1FINANCIAL PLAN
The financial plan consists of a 3 year profit and loss projection, a cash-flow projection and a projected balance sheet. Together they constitute a reasonable estimate of our business financial future.

3.1.1Profit and loss account projections

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Year 1 (Rs)

Year 2 (Rs)

Year 3 (Rs)

Sales Direct cost of sales Other production expenses Total cost of sales Gross margin Gross margin % Expenses Payroll

441,822 176,729
0

967,265 386,906
0

1,071,877 428,751
0

176,729 265093
60%

386,906 580359
60%

428751 643126
60%

268620

322960

33096

Sales and marketing and other Expenses Depreciation Leased equipment Utilities Insurance Rent Payroll taxes Other Total operating expenses Profit before interest and taxes 8,400 1704
0

8,400 1704
0

8,400 1704
0

4,800 36, 00 24,000 40,293

0

4,800 36, 00 24,000 48,444

0

4,800 36, 00 24,000 49,644

0

351,417 (86,324)

413,908 116,516

423,108 220,018

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Interest expense Taxes incurred Net profit Net profit/sales

0 0 (86,324)

0 49,935 116,516

0 66,005

154,013 14.37%

-19.54%

12.05%

The following charts present projected profit and loss.

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3.1.2Cash Flow The following chart and table display the projected cash flow.
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Projection

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3.1.3 Performa Cash Flow

Year 1 (Rs) Cash received Cash from operations Cash sales Subtotal cash from operations Additional cash received Sales tax, VAT, HST/QST received New current borrowings New other liabilities 0 0 0 441,822 441,822

Year 2 (Rs)

Year (Rs)

967,265 967,265

1,071,877 1,071,877

0 0 0

0 0 0

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New long term liabilities Sales of other current assets Sales of long term assets New investment received Subtotal cash received Expenditures Expenditures from operations Cash spending Bill payments Subtotal spent on operations Additional cash spent Sales tax Principal repayment of current borrowing Other liabilities principal repayment Long term liabilities principal repayment Purchase other current assets Purchase long term assets Dividends

0 0 0 0 441,822 Year 1

0 0 0 0 967,265 Year 2

0 0 0 0 1,071,877 Year 3

268,620 244,177 512,797

322,960 546,807 869,767

330,960 589,427 920,387

0 0

0 0

0 0

0 0 0

0 0 0

0 0 0 Page 28

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Subtotal cash spent Net cash flow Cash Balance

512,797 (70,975) 69,525

869,767 97,498 167,024

920,387 151,490 318,513

3.1.4 Important assumptions: The following table details important financial assumptions.
Year 1 Plan Month Current Interest Rate Long Term Interest Rate Tax Rate Other
1

Year 2
2

Year 3
3

10% 10% 30%

0

10% 10% 30%

0

10% 10% 30%

0

3.1.5 Projected Balance Sheet The following table shows the projected balance sheet.
Year 1 Year 2 Year 3

Assets
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Current Assets Cash Inventory Other Current Assets Total Current Assets Long Term Assets Long Term Assets Accumulated depreciation Total Long Term Assets Total Assets 8,500 1,704 6,796 105,160 Year 1 8,500 3,408 5,092 235,251 Year 2 8,500 5,112 3,388 391,865 Year 3 69,525 28,838 0 98,364 167,024 63,135 0 230,159 318,513 69,963 0 388,477

Liabilities And Capita

Current Liabilities Account Payables Current Borrowings Other Current Liabilities Sub Total Current Liabilities Long Term Liabilities Total Liabilities Paid In Capital Retained Earnings earnings

32,484 0 0 32,484 0 32,484 183,100 (24,100) (86,324)

46,059 0 0 46,05 0 46,059 183,100 (110,424) 116,516

48,660 0 0 48,660 0 48,660 183,100 6,092 154,013

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Total Capital Total Liabilities and Capital Net Worth

72,676 105,160 72,676

189,192 235,251 189,192

343,205 391,865 343,205

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