Med-Droid: A Business Plan for Online Pharmacy Services in Australia

This document presents a comprehensive business plan for "Med-Droid," an online pharmacy service based in Melbourne, Australia. The plan details the company's background, including its aim to provide convenient access to medicines and pharmacy-related information through an online platform. It describes the Australian healthcare industry, emphasizing the demand for medical supplies, particularly among the aging population. Med-Droid differentiates itself through a mobile application with features like barcode scanning, medicine database access, health information recording, and appointment reminders. The plan includes a marketing analysis, target market identification, and competitive pricing strategies. Operational aspects, management structure, and financial projections are also covered, along with a discussion of potential risks and a harvest strategy. The business aims to capture a significant market share by offering cost-effective and convenient services, focusing on non-prescription drugs, B2B wholesale, and governmental level pharma.

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Business Entrepreneur
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Executive Summary
What
The business has been depicted to provide online services associated to medicine and pharmacy
related requirement. The users will be able to purchase medicines via online application and also
get information about medicines.
How
The ecommerce website for the pharmacy services will also allow the consumers to take the
different types of the services which are associated to the generating of the medicine lists and
usage reports which will be suggested by the healthcare professionals via email. The phone
application designed for both Android and ios platform will allow the users to store graph and
share the test results pertaining to the various types of the services related to managing the heath
information.
Why
The Australian health care industry is seen to be sophisticated and repetitive in terms of
availability of the new products. In addition to this, it needs to be also seen that there is a
consistent demand for full range of the medical supplies particularly for those which are seen to
be old age patients. The purchasing option of online application is seen to provide convenience,
quality and cost effectiveness in terms of the prescribed medicines.
Where

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The registered office of “Med-Droid” will be based in Melbourne. The office will be located in
the Burwood, Victoria near Hawthorn.

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Table of Contents
Part 1................................................................................................................................................6
Business Description.......................................................................................................................6
Name of the Business and Background.......................................................................................6
Description of the Industry in which the business is going to operate........................................6
Uniqueness and distinctive features of the business....................................................................6
Differentiated service in compared to the competitors................................................................7
Customers buying from the business and not competitors..........................................................7
Marketing Research and Analysis...................................................................................................8
Potential target market for the products.......................................................................................8
Trends and buying habits of the customers.................................................................................8
Existing competition and potential competitors..........................................................................8
Estimated market share for the business which it is aiming to capture.......................................9
Marketing Plan...............................................................................................................................10
Products and Services Offered by the company........................................................................10
Prices of the products and services compared to the competitors.............................................10
Pricing Strategies.......................................................................................................................11
Discounts and loyalty rewards...................................................................................................11
Place of the distribution of the services.....................................................................................12

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Advertising and promotion........................................................................................................12
Operations......................................................................................................................................13
Location.....................................................................................................................................13
Operational procedures..............................................................................................................13
Personnel Requirements............................................................................................................14
Wage Rates................................................................................................................................14
Management..................................................................................................................................15
Description of the management team........................................................................................15
Key personal of the business.....................................................................................................15
Legal Structure of The Business................................................................................................17
Stock and Employment Agreements.........................................................................................17
Ownership Percentage of The Business....................................................................................18
Division of Responsibility and Accountability..........................................................................18
Division of Work.......................................................................................................................18
Part 2..............................................................................................................................................19
Financial........................................................................................................................................19
Identification, Outlining and estimation of the VC and FC.......................................................19
Social, Environmental and Entrepreneurial (SEE)........................................................................29
Corporate Governance Plan.......................................................................................................29
Critical Risks.................................................................................................................................32

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New Entrants.............................................................................................................................32
Price cutting by the competitors................................................................................................32
Actions by the Government.......................................................................................................33
Changes in the consumer taste and societal demands...............................................................33
Licensing of the products and services......................................................................................33
Harvest Strategy.............................................................................................................................34
Plan for liquidity event and exit strategy...................................................................................34
Transition of leadership and succession planning.....................................................................34
IPO and sale of the business......................................................................................................34
Plan to license the products.......................................................................................................35
Milestone Schedule........................................................................................................................35
List of References..........................................................................................................................37

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Part 1
Business Description
Name of the Business and Background
The name of the business will be “Med-Droid”. The main background for the business
has been depicted with providing online services associated to medicine and pharmacy related
requirement. The users will be able to purchase medicines via online application and also get
information about medicines. The main services associated to e-commerce services are related to
expanding the market in the domain of online pharmacy. The business will be connected to the
various partners in Australia who provides various types of medicine services (Veit et al. 2014).
Description of the Industry in which the business is going to operate
The Australian health care industry is seen to be sophisticated and repetitive in terms of
availability of the new products. In addition to this, it needs to be also seen that there is a
consistent demand for full range of the medical supplies particularly for those which are seen to
be old age patients. The imported devices in the country are usually depicted to be innovative
and cost effective in nature. The Australian market is also seen to be motivated by number of
cost control measures. In terms of the regulatory viewpoint the Australian market is very much
accessible to the individuals seeking for service (Wang, Wang and Liu 2016).
Uniqueness and distinctive features of the business
The main distinctiveness of the business will be seen with developing a mobile
application for the online medicine services which will allow the users to scan the medicine
barcodes and search for comprehensive Australian medicine database. The recording of

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important health related information will be seen with the information such as medical condition,
health processional contact details and allergies. The feature of the online application will also
allow the users to set the important reminders for taking the medicines and attending the doctor’s
appointment (Chaffey 2015).
Differentiated service in compared to the competitors
The differentiated nature of the services in compare to the competitors needs to be
identified in terms of providing the options of accessing the consumer medicine information and
learn more about the medicines. The ecommerce website for the pharmacy services will also
allow the consumers to take the different types of the services which are associated to the
generating of the medicine lists and usage reports which will be suggested by the healthcare
professionals via email. The phone application designed for both Android and ios platform will
allow the users to store graph and share the test results pertaining to the various types of the
services related to managing the heath information (Lovelock and Patterson 2015).
Customers buying from the business and not competitors
The rationale for the customer choosing to buy from “Med-Droid” will be based on the
discount pricing on the medicines and multiple options to make the payments. This is possible by
the company as the company will buy the medical supplies in bulk and the partners will be able
to provide the best price for the medicines. In addition to this, the creation of the separate
profiles in terms of managing the medicine and health information records for others (Islam
2017). The application will also provide a distinct service associated to ask for doctor
consultation which is considered to be an added feature of the mobile application. These features
are the main driving factors for the reasons why the customers will be buying from “Med-Droid”
rather than any other pharma ecommerce mobile operator (Codeless Platforms 2017).

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Marketing Research and Analysis
Potential target market for the products
The main goal of the business is to target the individuals requiring medical supplies for
any assistance. The main factors behind the target market needs to be also determined with the
patients who are seeking for convenience, quality and cost effectiveness in terms of the
prescribed medicines. This business will be largely conducive to the old age patients who are
unable to visit a medical store to buy their medicines. Some of the various type of the focus of
the other target markets of the business needs to be also determined with the inclusion of those
individual who finding it difficult to buy a particular medicine form the store to unavailability
(Mallick and Hamburger 2017).
Trends and buying habits of the customers
The significant nature of the customers demand in Australia for the medical supplies in
Australia needs to be taken into account with the various types of the factors which are seen to be
associated to aging population. The ecommerce facility in medicines will be particular beneficial
to these customer as they will be able to afford the medicines at a lesser price and also have the
convenience of buying the medicine without the need of visiting stores. Several patients in
Australia are further depicted to be affected with number of chorionic diseases. Such individuals
are seen to be in constant need for buying of a particular medicine (Rouibah and Al-Qirim 2017).
Existing competition and potential competitors
The competition in terms of global perspectives needs to be understood with maintenance
high standard care and well-trained doctors in Australia who will be able to offer wide number of
medical services. This is due to the fact the existing medicine facilitators in Australia are reliant

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on a low-cost structure. Some of the various types of the other consideration the competition in
the industry needs to be identified in terms of the comparison of the company with the other
countries like Singapore, Malaysia and South Korea (Suwalski et al. 2014).
Estimated market share for the business which it is aiming to capture
The growth in the Australian healthcare industry in Australia needs to be determined with
7.7% in terms of CAGR is based on the economic benefits. There is also an increasing scope of
the foreign direct Investment (FDI). There is also a considerable amount of increase in the
revenue of the business pertaining to the increasing exports of the medical supplies. The policies
pertaining to the Australian government has been focused on reducing the unnecessary spending
and also freeing of the potentially strong area pertaining to the research and development
(Suwalski et al. 2014). The overall market share is seen to be generated from contribution
pertaining to suppliers, care providers, insurers and consumers. The estimated factor driving the
growth in the market share has been also seen to be depicted as per the encouraging the local
investment and FDI in the biotech and medical technology. The increasing nature of the factors
driving the growth for the company needs to be also determined as per the offshore delivery
process (Pham 2016).
The large healthcare players in Australia such as “Ansell, CSL, Mesoblast, ResMed, and
Sirtex”. The overall spending of the Australian government concerned with the major funding of
$ 20 billion on the Medical Research and copayment based on the GP consultations with an
additional $ 7 on the copayment for the pharmaceutical benefits and scheme prescriptions
(Moloney-Egnatios, ProductVisionaries 2015).

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Marketing Plan
Products and Services Offered by the company
The primary products and services offered by the company needs to be understood as
follows:
 Non-Prescription Drugs- The online supermarket pharmacy will allow the customer to
buy from various nature of the products associated with the antacid, plasters and aspirin.
The definite nature of such customers is defined as per buying from the online stores
instead of the grocery stores (Modica and Stenneth 2017).
 B2B Wholesale- This is identified as the main source of the ecommerce revenue. There
are very few ecommerce players who are seen to be involved in the B2B ecommerce and
marketing of the materials is usually provided with the manufacturers and the
distributors. The marketing materials pertaining to the business of the company needs to
be identified in terms of the distributors pushing these products to other delivery
channels.
 Governmental level pharma- The company is further seen to be relying on the products
such as anti-hypertension, vaccines and diabetes drugs. There is a limited number of
service aspects concerning the e-marking in this area has been seen with increasing
growth opportunity for “Med-Droid”.
Prices of the products and services compared to the competitors
The company will be following a competitive pricing policy so that more number of
buyers are able to afford the services. It needs to be also discerned that there has been growing
nature of the services concerning the general medicines. The criteria set for the pricing

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concerning the products are depicted after evaluating the strategic price set by “Ansell, CSL,
Mesoblast, ResMed, and Sirtex” (Chiericozzi 2017).
Pricing Strategies
The company’s main pricing strategy at the initial strategy will be depicted with a
penetration pricing to maximize the gains from the market. It needs to be also discerned that
most of the services offered by the company will keep a low price for their products for a limited
period of time. This strategy adopted by the company will be conducive in addressing to the
significant needs required by the customers in a particular market. Therefore, the products
pricing at the initial states will follow an economy pricing strategy which will be conducive in
defining the set number of the strategies as per the economy producing which will attract the
interest of greater number of customers pertaining to the sales at the time of recession (Naber
2017).
Discounts and loyalty rewards
The company will be able to provide discounts in most of the products as it will buy in
bulk. This will lead to a higher scope of discounted price to the customers. In addition to this,
there will be an integrated digital wallet for the company which will allow the customers to make
the payments at a discounted price. This will be possible as for using the wallet there will be a
small amount of initial deposit which is to be mandatorily made by the users of the service. The
company will receive interest on these deposits which will be conducive for providing the
discounts (Peter 2014).