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Digital Business: E-commerce Strategy for PillPros Online Pharmacy | Microeconomics | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

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Online pharmacies have grown in popularity recently and provide customers with a quick and easy option to get pharmaceuticals and healthcare services. The introduction of the online pharmacy as a B2C e-commerce company will emphasize its operational methods, product offerings, and the justifications for these decisions. And the online pharmacy we plan to develop is called PillPros. Tài liệu được sưu tầm và soạn thảo dưới dạng file PDF để gửi tới các bạn cùng tham khảo, ôn tập đầy đủ kiến thức, chuẩn bị cho các buổi học thật tốt. Mời bạn đọc đón xem!

Môn: Microeconomics 635 tài liệu

Trường: Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh 1.9 K tài liệu

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Mai Nguyệt

2 ngày trước
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Danh sách Quiz
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/23
Contents
I. INTRODUCTION.......................................................................................................................4
1. Type of E-commerce : Business-to-Consumer (B2C)...............................................................4
2. E-commerce Business Models: Website and App.....................................................................4
3. Operating Industry: Pharmaceutical and Health Care...............................................................4
4. Main Products:..........................................................................................................................5
5. Reasons Behind Our Choice of Business Models and Products:..............................................6
II. MARKET RESEARCH.............................................................................................................7
1. Current status of the market..........................................................................................................7
2. Competitors...................................................................................................................................9
3. Provisions for the market............................................................................................................11
III. COMPANY ANALYSIS............................................................................................................12
A. Business structure......................................................................................................................12
B. Main products............................................................................................................................12
C. Key operating processes.............................................................................................................13
D. SWOT........................................................................................................................................13
E. Key winning points....................................................................................................................15
F. Performance measurement..........................................................................................................15
G. Objectives..................................................................................................................................17
IV. PLANNING AND FINANCIAL STATEMENTS...................................................................18
1. Detailed plans (Detailed plans for the year 2024)......................................................................18
2
1.2. Sales Strategy.......................................................................................................................20
2. Required Capital and Allocation:................................................................................................21
a. Required Capital......................................................................................................................21
b. Capital Allocation................................................................................................................21
c. Income Statement................................................................................................................23
d. Cashflow Statement.............................................................................................................24
V. CONCLUSION..........................................................................................................................25
3
DIGITAL BUSINESS – GROUP 3
PillPros - Online Pharmacy - An E-commerce Business
Online pharmacies have grown in popularity recently and provide customers with a quick and easy
option to get pharmaceuticals and healthcare services. The introduction of the online pharmacy as a
B2C e-commerce company will emphasize its operational methods, product offerings, and the
justifications for these decisions. And the online pharmacy we plan to develop is called PillPros.
I. INTRODUCTION
1. Type of E-commerce : Business-to-Consumer (B2C)
Online pharmacies primarily function as B2C e-commerce businesses that provide services to single
customers. Customers can use them as a platform to order pharmaceuticals and get health-related
information without having to physically visit pharmacies or clinics.
2. E-commerce Business Models: Website and App
Because mobile applications (apps) and websites can be used to access online pharmacies, users
have a variety of options for browsing and placing their orders. Customers are able to order
medications and get professional advice on their health concerns thanks to the app and website
models, which create a seamless purchasing experience. Our also help store purchasePillPros
history, medical history and closely monitor customers' health status. From storing medical history,
our platform will suggest supplements, functional foods, etc. based on that medical history.
3. Operating Industry: Pharmaceutical and Health Care
The larger health and pharmaceutical sector includes the online pharmacy company. The selling of
prescription and over-the-counter medications, as well as the dissemination of knowledge and
advice about healthcare, define this industry. Through the provision of a different platform for
4
clients to receive necessary pharmaceuticals and healthcare services, online pharmacies play a
crucial role in this business.
4. Main Products:
Medicine:
The focus of online pharmacies is a comprehensive selection of medications, from prescription
drugs to over-the-counter (OTC) products. Our PillPros will provide consumers with an easy way to
order medications from the comfort of their home. With just a few clicks, patients can access a
variety of medications, providing them with a convenient solution to manage their health
conditions. This accessibility is especially beneficial for people who have mobility issues, live in
remote areas, or who prefer the convenience of ordering online.
Counsel Before and After Buying Medicine:
A hallmark feature of online pharmacies is the provision of expert advice and counseling services.
Prior to purchasing any medication, customers can find information on the website regarding a
drug's composition, usage, potential side effects, and interactions with other medications. Moreover,
PillPros also offers live chat support or have licensed pharmacists readily available to answer
questions and provide guidance. This pre-purchase counseling enhances patient safety by ensuring
that individuals make well-informed decisions about their medication choices. Post-purchase
counseling is equally important, as it provides customers with guidance on the proper
administration of medication, ensuring compliance with prescribed regimens. This feature fosters a
sense of reassurance and helps patients effectively manage their treatment plans.
Home Medical Examination Service:
Beyond medication, PillPros offers an innovative service in the form of home medical
examinations. This service is designed to meet the evolving healthcare needs of consumers. It
allows individuals to access medical professionals, diagnostic tools, and testing services from the
comfort of their homes. Home medical examination services empower consumers to monitor their
health, receive timely assessments, and obtain expert advice without the need for physical clinic
5
visits. This service plays a vital role in preventive care and early detection of health issues,
contributing to improved overall well-being.
5. Reasons Behind Our Choice of Business Models and Products:
The choice of the B2C e-commerce model, involving mobile apps and websites, as well as the
selection of core products and services, is driven by several compelling reasons:
Accessibility and Convenience:
Online pharmacies prioritize accessibility and convenience for consumers. The B2C model allows
direct interaction with individuals, eliminating intermediaries and ensuring a seamless experience.
Mobile apps and websites offer round-the-clock access to products and services, meeting the
diverse needs of consumers who seek healthcare solutions on their terms.
Patient-Centric Approach:
Online pharmacies are committed to a patient-centric approach. By providing comprehensive pre
and post-purchase counseling, they empower patients to make informed decisions about their
health. This approach promotes safe and effective medication use, ultimately improving patient
outcomes.
Innovation in Healthcare:
The introduction of home medical examination services exemplifies online pharmacies'
commitment to innovation. This service reflects their dedication to revolutionizing healthcare by
leveraging technology to provide convenient, at-home healthcare solutions.
Expanded Reach:
Online pharmacies operate beyond geographical boundaries. By offering services through mobile
apps and websites, they can reach a global audience, ensuring that individuals from various regions
can access quality healthcare products and services.
Cost-Efficiency:
6
The online model also contributes to cost-efficiency for both businesses and consumers. Reduced
overhead costs associated with physical locations translate into competitive pricing, making
medications and services more affordable for consumers.
Promoting Preventive Healthcare:
Home medical examination services encourage preventive healthcare by facilitating regular health
monitoring and early detection of potential issues. This proactive approach aligns with the growing
emphasis on preventive care in the healthcare industry.
In conclusion, online pharmacies have redefined the way consumers access healthcare products and
services. Through the B2C e-commerce model, encompassing mobile apps and websites, these
platforms offer an extensive range of products and services. Their commitment to patient-centric
care, accessibility, innovation, and cost-efficiency reflects the evolving nature of the Health and
Pharmaceutical industry, ultimately enhancing the healthcare experience for individuals worldwide.
II. MARKET RESEARCH
1. Current status of the market
The Vietnam e-pharmacy market refers to the online platform within the healthcare industry that
facilitates the of pharmaceutical products, medical supplies, and therapeuticsale and distribution
items over the internet. It involves the digitization of traditional pharmacy services, allowing
consumers to browse, purchase, and receive medical products through online channels such as
application programs or websites. The E-Pharmacy Market in Vietnam caters to the growing
demand for convenience and accessibility in healthcare, enabling consumers to order medicines and
other healthcare items from the comfort of their homes. This market has been experiencing
significant growth driven by factors such as increasing internet penetration, smartphone adoption,
government support for digitalization, and the shift in consumer preferences towards online
shopping during the COVID-19 pandemic.
7
Fig. 1. Developing the innovative pharmaceutical industry in Vietnam
Developing the innovative pharmaceutical industry in Vietnam is poised to drive sector growth,
boost the economy, and enhance health outcomes. The Vietnam pharmaceutical industry is among
the fastest-growing sectors in the region. Its value, which was USD$3.3 billion in 2016, saw a
significant increase of USD $1.3 billion in just four years. Projections for 2026 estimate this figure
will reach USD $16.1 million. The industry has maintained a steady 2% annual growth rate,
translating to a compound annual growth rate (CAGR) of 6% from 2018 to 2020. With the addition
of numerous manufacturing plants, import-export facilities, wholesale agents, and retail agents, the
industry's growth potential is evident.
E-pharmacy in Vietnam is set to experience remarkable growth in the near future. In 2017, the
nation's e-pharmacy market was valued at USD$72.06 million. A forecast indicates a CAGR of
22.85% between 2023 and 2027, primarily driven by the increased demand for online shopping, a
trend accelerated by the impact of the COVID-19 pandemic. However, online purchases currently
represent a mere 3% of the market, with the majority of pharmacy product sales occurring in
hospitals 73% and retail stores. While some major pharmacies already operate online purchase
8
platforms, their prevalence remains limited, leaving ample room for industry expansion in the
foreseeable future.
Vietnam's status as the 13th most populous country globally, with a population of approximately 96
million in 2018, presents unique healthcare challenges, particularly with a rapidly aging population
prone to age-related diseases such as diabetes and cardiovascular problems. Simultaneously,
Vietnam's transition to a low-middle-income economy has led to growing disposable income, which
is likely to drive consumer spending on comprehensive healthcare services and innovative
healthcare solutions.
These conditions position Vietnam to expand its domestic innovative pharmaceutical market
significantly. Innovation in pharmacy services is regarded as a valuable addition to the healthcare
landscape. It represents a strategic direction that extends beyond service delivery and encompasses
the integration of information technology. Success in this endeavor depends on the commitment of
pharmacy owners to improving service delivery and embracing innovative approaches.
2. Competitors
The e-pharmacy market in Vietnam was rapidly growing, with several companies competing in the
sector. Some of the potential competitors in the Vietnam e-pharmacy market include:
Long Chau Pharmacity An Khang
History - Belongs to FPT Digital
Retail Joint Stock
Company - a member of
FPT Corporation, FPT
Long Chau Pharmacy
- The convenient pharmacy
chain Pharmacity belongs
to Pharmacity Pharmacy
Joint Stock Company,
established in 2011,
- Formerly known as Phuc
An Khang pharmacy, was
established in 2002. In
2017, Phuc An Khang
pharmacy officially became
9
system is one of the
prestigious pharmaceutical
retail chains in Vietnam.
Pharmacity is one of the
first pharmaceutical retail
chains in Vietnam.
a member of MWG and
changed its name to An
Khang Pharmacy with a
brand identity new to
MWG.
Scale
- Extensive system
spanning across provinces
nationwide.
- Online and offline sales.
- More than 250 stores
nationwide.
- Online e-commerce
website system.
- Over 500 GPP-
standardized pharmacies
scattered across provinces
nationwide.
- Retail business both
offline and online.
Product
- High-quality medicines
with diverse types
(prescription and non-
prescription drugs,
vitamins & supplements,
pharmaceutical cosmetics,
etc.)
- Provides a wide range of
both Eastern and Western
medicines, along with other
health and beauty care
products.
- Does not sell prescription
drugs.
- All An Khang pharmacies
meet Good Pharmacy
Practice (GPP) standards
- Have clear origins.
Price Affordable price
Higher than average price
level
Affordable price
Service
- Dedicated and attentive
health counseling services.
- Home delivery service,
facilitating exchange or
return of medicines as per
the doctor's requirements.
- Operating 24/7, enabling
online orders at any time.
- Highly skilled team of
pharmacists available for
inquiries via hotline and
Zalo (from 7:30 am to
10:00 pm).
- Swift and convenient
doorstep delivery.
10
3. Provisions for the market
The online pharmaceutical market in Vietnam is expected to grow significantly in the future.
The Vietnam E-Pharmacy Market was valued at USD 72.06 million in 2021 and is expected
to grow at a CAGR of 22.85% during the forecast period, 2023-2027, to reach a market
value of USD 242.1 million by 2027.
This growth is attributed to the expanding pharmaceutical industry in the country, growing
penetration of internet in the healthcare industry, and distribution of pharmaceutical and
therapeutic products over online channels.
The recent pandemic situation due to COVID-19 has further enhanced the e-commerce
industry as consumers prefer online purchases and home delivery of medical supplies over
physically visiting the pharmacies.
Increasing sales of smartphones and use of internet-based services for pharmaceuticals and
therapeutics are also contributing to the growth.
The demand for over-the-counter drugs along with the efficiency of e-pharmacies in
delivering low-cost medical supplies is aiding the growth.
Prescription drugs are anticipated to hold the largest revenue shares of the market due to
rapidly increasing instances of chronic diseases in the country.
11
III. COMPANY ANALYSIS
A. Business structure
B. Main products
1. Online-selling medicine
Customers can place online orders for their prescribed prescriptions, saving time and effort
that would otherwise be required to visit a real pharmacy.
Online pharmacies also frequently offer a larger product selection, affordable prices, and the
convenience of doorstep delivery.
Most suitable for mild diseases like flu, fever,...
12
2. Online health counseling
Through this service, users are able to consult medical professionals, receive emotional
support, and receive direction on a variety of health and wellness-related matters without
leaving their homes.
It provides a practical and private means to address issues with physical and mental health,
making it available to those who would experience geographical or time constraints while
seeking conventional in-person counseling..
3. At-home health care
This service provides a variety of healthcare options, such as nursing care, physical therapy,
and medical monitoring, making it a useful and practical choice for those who are
recuperating from diseases or managing chronic disorders.
With personalized care provided in the comfort of their own homes, patients can have all of
their medical requirements addressed while also fostering a sense of autonomy and dignity.
Most suitable for the elderly, people who are far from hospital, in adverse conditions,...
C. Key operating processes
1. Customer module:
This is the interface where customers can browse, search, order, pay, track, and review the
medicines they need.
It also includes features such as prescription upload, online consultation, chat support,
reminders, and loyalty programs.
2. Pharmacist module:
This is the interface where pharmacists can manage the inventory, verify the prescriptions,
prepare and pack the orders, generate invoices, and communicate with customers and couriers.
3. Admin module:
13
This is the interface where administrators can oversee and control the overall operations of
the online pharmacy, such as setting prices, discounts, policies, reports, analytics, etc.
4. Courier module:
This is the interface where couriers can receive and accept the delivery requests, update the
status and location of the orders, and collect feedback from customers.
D. SWOT
1. Strengths
Collab with group of skilled medical professionals from reputed facilities
Over 8.5 million people live in Hanoi city → a large number of potential customers
24/7 online counseling and replying to customers
Collab with delivery businesses —> transport medicine as soon as possible to the
customer's home within minutes.
Has a system of online channels including website, fanpage
2. Weaknesses
Typical technical problems (such as: system faults, product loss, or copyright infringement)
are all frequent occurrences
Have to compete with traditional pharmacies and have a reputation for their brand name and
products
Have to gain the trust of customers in today's landscape of widespread online fraud
3. Opportunities
Increasing numbers of young people and those who are busy, enjoy surfing the internet and
online shopping
The advancement of science and technology, especially in the healthcare and pharmaceutical
industries, has resulted in the development of numerous new, efficient goods for consumers
14
The need for medications and healthcare is increasing, particularly in light of pandemics and
environmental degradation
4. Threats
There are many rivals, particularly traditional pharmacies or long-standing chains of
pharmacies with a solid reputation for their products
The risks and difficulties of running and managing an online store, particularly when
technological problems, system faults or product loss.
Governmental interference and regulations, especially when there are new rules, laws
changed, or sanctions for infractions in the pharmaceutical industry.
E. Key winning points
1. Store medical history for customers
Automated save all customers' prescriptions and medical history. From there, we can
suggest related supplements/functional foods to customers
2. Automatic messages
Send automatic reminders to remind customers about medication schedules and
daily/weekly dosage.
Sending a diet list (including foods to eat/not to eat) based on the doctor's diagnosis of the
customer's illness to show concern for customers.
3. Customer care after using the product
After the customer takes the medicine, a counselor will call to check on the customer so that
they can update and keep track of the customer's status after taking the medicine.
F. Performance measurement
The performance measurement is gauged by these following index:
Number Name of Index Object measure Formula
15
1
Forecast
consumption
estimates for a variety of
consumption techniques as
well as both cash and card
sales
2
Estimated cost of
goods sold
the total cost of the volume of
products consumed in the
period
Estimated cost of goods sold
=
estimated cost of products
manufactured during the
period
+
estimated cost of ending
inventory
-
minus the actual cost of
beginning inventory
3
Estimated selling
expenses
forecast and aggregate the
primary means involved in
the sales process
Estimated selling expenses
=
estimated fixed selling expenses
+
estimated variable selling
expenses
4
Estimated
business
management
expenses
relies on the management cost
unit multiplied by the
expected consumption
volume
Estimated business
management
=
estimated variable
management cost per unit
16
x
estimated consumption volume
5 Estimated revenue
Estimated revenue
=
Estimated product
consumption
x
Estimated selling price
6 Cash capital
calculating the cash inflows
and outflows related to the
various activities of the
business during different time
periods
G. Objectives
1. Short term
Establish online presence: Within the first six months, create a user-friendly website and
app to enable online purchases and consultations for clients in Hanoi.
Increase local brand recognition: in the Southern area in general and in Hanoi in specific ,
using targeted social media and digital marketing efforts.
Secure Licencing and Compliance: Obtain all required licenses and guarantee strict
adherence to Hanoi's pharmaceutical rules.
Seamless Supply Chain: form partnerships with trustworthy neighborhood pharmacies and
medical professionals.
2. Long term
17
National Expansion: Increase services' reach to include all of Vietnam's major cities like
Da Nang, HCM city,... in order to reach a broader market.
Increased Inventory: Based on consumer demands and trends, diversify the assortment of
medicines and healthcare goods that are on offer.
Health Education: Develop an informative health blog or content section to educate
customers about wellness and healthcare.
Customer Loyalty: Implement a loyalty program to retain customers and build a strong
customer base.
Investment and Partnerships: Find prospective investors or partners to help the company
grow and innovate.
IV. PLANNING AND FINANCIAL STATEMENTS
1. Detailed plans (Detailed plans for the year 2024)
1.1. Marketing strategy
a. Marketing Mix
Source: Digital Marketing: Strategy, Implementation and Practice, Dave Chaffey
STRATEGY
18
Product Provide medicine and healthcare service for everyone:
Medicine: over-the-counter drugs for minor illnesses (sore throat,
fever,...); prescription drugs for serious illnesses; vitamins &
supplements; pharmaceutical healthcare products; medical supplies.
Healthcare services: online check-up and counseling 24/7; medical
examination at home.
Price Market penetration pricing: offer a more affordable price compared to
other competitors in order to attract more customers and maintain a
significant market share.
Psychology Pricing: target human psychology to increase sales (9-digit
effect, buy 2 get 3, voucher, free payment in case of late product
shipping…)
Bundle pricing: offer many products in a bundle with lower price per
product.
Promotion
Digital marketing: Email marketing and SEM (Search Engine
Marketing).
Online advertising traditional advertising (social media), (TV
commercials, billboards, leaflets…)
PR: Collaborate with celebrities, KOLs, KOCs…
Word-of-mouth: Stimulate customers to share their experience to their
families, their friends
Sales promotion: Discounts on special occasions.
Place Totally online: omni online channels (website, Facebook, Zalo,…)
People Employees: Web developers, designers, support staff who are experienced and
qualified.
Customers: people ranging from 18 to 50 living in Hanoi.
Partners: Collaborate with
19
hospitals, clinics → have a qualified team of doctors, healthcare
specialists and counselors.
shipping businesses → have a team of shippers to transport medical stuff
from businesses to PillPros and from PillPros to customers.
medical brands → have suppliers of medicine, supplements, medical
supplies.
Process Before Launching: Market research → Data collection → Data analysis →
Planning & Modelling → Budget Allocation → Implementation → Forecasting
→ Launching
After Launching: Introducing → Promoting → Order processing → Payment
processing → Delivery logistics → Customer support systems → Improving
Physical
Evidence
Website, fanpage: create a professional, user-friendly and engaging image for
the online platforms.
Company office: located in Hanoi, Vietnam
Product packaging: use transparent bags to package medicine with a note paper
including the customer's name and lucky wish for them.
1.2. Sales Strategy
Order processing and Payment processing:
Order processing: be conducted through mobile phones, website, email, fanpage on SNS
platforms (Facebook)
Payment processing: various methods such as mobile banking, ZaloPay, MoMo, VNPay,
credit card, VISA card, Mastercard,...
Distribution Method: online
Drugs will be prepared and shipped after payment process within 1 hour.
Doctor will come to the customer's home within 2 hours after order processing.
20
1.3. Operational strategy
Technological development: continuously update and develop the quality of the website, fix bugs
and enhance customer’s experience.
WFA model (Work from Anywhere): allow employees to work from home, work at satellite
office, mobile working in order to optimize working efficiency.
Focus on human resources: maintain potential employees, conduct recruitments,
Conducting regular evaluation: regularly seek out solutions to solve existing problems.
2. Required Capital and Allocation:
a. Required Capital
To ensure the effective launch and ongoing operation of the PillPros Healthcare Website and Mobie
Application, a total capital investment of $500,000 is needed. This amount comprises $200,000 in
owner's equity and an additional $300,000 from external investors.
b. Capital Allocation
Categories Cost
Estimated
budget
% cost
allocated
Inventory Costs
Purchasing Products $30.000
$50.000 10%
Storage Costs $12.000
Handling and Shipping $8.000
Online Platform
Development
Website $30.000
$50.000 10%
Mobile application $20.000
Pharmacist and Doctor
Consultation Services
Recruiting, interviewing $35.000
$80.000 16%Legal and Compliance $25.000
Training and Certification $20.000
Marketing and
Advertising
Advertising on social media $20.000
$60.000 12%
Reputable healthcare $15.000
21

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Preview text:

Contents I.
INTRODUCTION.......................................................................................................................4
1. Type of E-commerce : Business-to-Consumer (B2C)...............................................................4
2. E-commerce Business Models: Website and App.....................................................................4
3. Operating Industry: Pharmaceutical and Health Care...............................................................4
4. Main Products:..........................................................................................................................5
5. Reasons Behind Our Choice of Business Models and Products:..............................................6
II. MARKET RESEARCH.............................................................................................................7
1. Current status of the market..........................................................................................................7
2. Competitors...................................................................................................................................9
3. Provisions for the market............................................................................................................11
III. COMPANY ANALYSIS............................................................................................................12
A. Business structure......................................................................................................................12
B. Main products............................................................................................................................12
C. Key operating processes.............................................................................................................13
D. SWOT........................................................................................................................................13
E. Key winning points....................................................................................................................15
F. Performance measurement..........................................................................................................15
G. Objectives..................................................................................................................................17
IV. PLANNING AND FINANCIAL STATEMENTS...................................................................18
1. Detailed plans (Detailed plans for the year 2024)......................................................................18
1.1. Marketing strategy...............................................................................................................18 2
1.2. Sales Strategy.......................................................................................................................20
1.3. Operational strategy.............................................................................................................21
2. Required Capital and Allocation:................................................................................................21
a. Required Capital......................................................................................................................21
b. Capital Allocation................................................................................................................21 c.
Income Statement................................................................................................................23
d. Cashflow Statement.............................................................................................................24
V. CONCLUSION..........................................................................................................................25 3 DIGITAL BUSINESS – GROUP 3
PillPros - Online Pharmacy - An E-commerce Business
Online pharmacies have grown in popularity recently and provide customers with a quick and easy
option to get pharmaceuticals and healthcare services. The introduction of the online pharmacy as a
B2C e-commerce company will emphasize its operational methods, product offerings, and the
justifications for these decisions. And the online pharmacy we plan to develop is called PillPros. I. INTRODUCTION
1. Type of E-commerce : Business-to-Consumer (B2C)
Online pharmacies primarily function as B2C e-commerce businesses that provide services to single
customers. Customers can use them as a platform to order pharmaceuticals and get health-related
information without having to physically visit pharmacies or clinics.
2. E-commerce Business Models: Website and App
Because mobile applications (apps) and websites can be used to access online pharmacies, users
have a variety of options for browsing and placing their orders. Customers are able to order
medications and get professional advice on their health concerns thanks to the app and website
models, which create a seamless purchasing experience. Our PillPros also help store purchase
history, medical history and closely monitor customers' health status. From storing medical history,
our platform will suggest supplements, functional foods, etc. based on that medical history.
3. Operating Industry: Pharmaceutical and Health Care
The larger health and pharmaceutical sector includes the online pharmacy company. The selling of
prescription and over-the-counter medications, as well as the dissemination of knowledge and
advice about healthcare, define this industry. Through the provision of a different platform for 4
clients to receive necessary pharmaceuticals and healthcare services, online pharmacies play a crucial role in this business. 4. Main Products: Medicine:
The focus of online pharmacies is a comprehensive selection of medications, from prescription
drugs to over-the-counter (OTC) products. Our PillPros will provide consumers with an easy way to
order medications from the comfort of their home. With just a few clicks, patients can access a
variety of medications, providing them with a convenient solution to manage their health
conditions. This accessibility is especially beneficial for people who have mobility issues, live in
remote areas, or who prefer the convenience of ordering online.
Counsel Before and After Buying Medicine:
A hallmark feature of online pharmacies is the provision of expert advice and counseling services.
Prior to purchasing any medication, customers can find information on the website regarding a
drug's composition, usage, potential side effects, and interactions with other medications. Moreover,
PillPros also offers live chat support or have licensed pharmacists readily available to answer
questions and provide guidance. This pre-purchase counseling enhances patient safety by ensuring
that individuals make well-informed decisions about their medication choices. Post-purchase
counseling is equally important, as it provides customers with guidance on the proper
administration of medication, ensuring compliance with prescribed regimens. This feature fosters a
sense of reassurance and helps patients effectively manage their treatment plans.
Home Medical Examination Service:
Beyond medication, PillPros offers an innovative service in the form of home medical
examinations. This service is designed to meet the evolving healthcare needs of consumers. It
allows individuals to access medical professionals, diagnostic tools, and testing services from the
comfort of their homes. Home medical examination services empower consumers to monitor their
health, receive timely assessments, and obtain expert advice without the need for physical clinic 5
visits. This service plays a vital role in preventive care and early detection of health issues,
contributing to improved overall well-being.
5. Reasons Behind Our Choice of Business Models and Products:
The choice of the B2C e-commerce model, involving mobile apps and websites, as well as the
selection of core products and services, is driven by several compelling reasons: Accessibility and Convenience:
Online pharmacies prioritize accessibility and convenience for consumers. The B2C model allows
direct interaction with individuals, eliminating intermediaries and ensuring a seamless experience.
Mobile apps and websites offer round-the-clock access to products and services, meeting the
diverse needs of consumers who seek healthcare solutions on their terms. Patient-Centric Approach:
Online pharmacies are committed to a patient-centric approach. By providing comprehensive pre
and post-purchase counseling, they empower patients to make informed decisions about their
health. This approach promotes safe and effective medication use, ultimately improving patient outcomes. Innovation in Healthcare:
The introduction of home medical examination services exemplifies online pharmacies'
commitment to innovation. This service reflects their dedication to revolutionizing healthcare by
leveraging technology to provide convenient, at-home healthcare solutions. Expanded Reach:
Online pharmacies operate beyond geographical boundaries. By offering services through mobile
apps and websites, they can reach a global audience, ensuring that individuals from various regions
can access quality healthcare products and services. Cost-Efficiency: 6
The online model also contributes to cost-efficiency for both businesses and consumers. Reduced
overhead costs associated with physical locations translate into competitive pricing, making
medications and services more affordable for consumers.
Promoting Preventive Healthcare:
Home medical examination services encourage preventive healthcare by facilitating regular health
monitoring and early detection of potential issues. This proactive approach aligns with the growing
emphasis on preventive care in the healthcare industry.
In conclusion, online pharmacies have redefined the way consumers access healthcare products and
services. Through the B2C e-commerce model, encompassing mobile apps and websites, these
platforms offer an extensive range of products and services. Their commitment to patient-centric
care, accessibility, innovation, and cost-efficiency reflects the evolving nature of the Health and
Pharmaceutical industry, ultimately enhancing the healthcare experience for individuals worldwide. II. MARKET RESEARCH
1. Current status of the market
The Vietnam e-pharmacy market refers to the online platform within the healthcare industry that
facilitates the sale and distribution of pharmaceutical products, medical supplies, and therapeutic
items over the internet. It involves the digitization of traditional pharmacy services, allowing
consumers to browse, purchase, and receive medical products through online channels such as
application programs or websites. The E-Pharmacy Market in Vietnam caters to the growing
demand for convenience and accessibility in healthcare, enabling consumers to order medicines and
other healthcare items from the comfort of their homes. This market has been experiencing
significant growth driven by factors such as increasing internet penetration, smartphone adoption,
government support for digitalization, and the shift in consumer preferences towards online
shopping during the COVID-19 pandemic. 7
Fig. 1. Developing the innovative pharmaceutical industry in Vietnam
Developing the innovative pharmaceutical industry in Vietnam is poised to drive sector growth,
boost the economy, and enhance health outcomes. The Vietnam pharmaceutical industry is among
the fastest-growing sectors in the region. Its value, which was USD$3.3 billion in 2016, saw a
significant increase of USD $1.3 billion in just four years. Projections for 2026 estimate this figure
will reach USD $16.1 million. The industry has maintained a steady 2% annual growth rate,
translating to a compound annual growth rate (CAGR) of 6% from 2018 to 2020. With the addition
of numerous manufacturing plants, import-export facilities, wholesale agents, and retail agents, the
industry's growth potential is evident.
E-pharmacy in Vietnam is set to experience remarkable growth in the near future. In 2017, the
nation's e-pharmacy market was valued at USD$72.06 million. A forecast indicates a CAGR of
22.85% between 2023 and 2027, primarily driven by the increased demand for online shopping, a
trend accelerated by the impact of the COVID-19 pandemic. However, online purchases currently
represent a mere 3% of the market, with the majority of pharmacy product sales occurring in
hospitals 73% and retail stores. While some major pharmacies already operate online purchase 8
platforms, their prevalence remains limited, leaving ample room for industry expansion in the foreseeable future.
Vietnam's status as the 13th most populous country globally, with a population of approximately 96
million in 2018, presents unique healthcare challenges, particularly with a rapidly aging population
prone to age-related diseases such as diabetes and cardiovascular problems. Simultaneously,
Vietnam's transition to a low-middle-income economy has led to growing disposable income, which
is likely to drive consumer spending on comprehensive healthcare services and innovative healthcare solutions.
These conditions position Vietnam to expand its domestic innovative pharmaceutical market
significantly. Innovation in pharmacy services is regarded as a valuable addition to the healthcare
landscape. It represents a strategic direction that extends beyond service delivery and encompasses
the integration of information technology. Success in this endeavor depends on the commitment of
pharmacy owners to improving service delivery and embracing innovative approaches. 2. Competitors
The e-pharmacy market in Vietnam was rapidly growing, with several companies competing in the
sector. Some of the potential competitors in the Vietnam e-pharmacy market include: Long Chau Pharmacity An Khang
History - Belongs to FPT Digital
- The convenient pharmacy - Formerly known as Phuc Retail Joint Stock chain Pharmacity belongs An Khang pharmacy, was Company - a member of to Pharmacity Pharmacy established in 2002. In FPT Corporation, FPT Joint Stock Company, 2017, Phuc An Khang Long Chau Pharmacy established in 2011, pharmacy officially became 9 a member of MWG and Pharmacity is one of the system is one of the changed its name to An first pharmaceutical retail prestigious pharmaceutical Khang Pharmacy with a chains in Vietnam. retail chains in Vietnam. brand identity new to MWG. - Over 500 GPP- - Extensive system - More than 250 stores standardized pharmacies
spanning across provinces nationwide. scattered across provinces Scale nationwide. - Online e-commerce nationwide. - Online and offline sales. website system. - Retail business both offline and online. - High-quality medicines - Provides a wide range of with diverse types both Eastern and Western - All An Khang pharmacies (prescription and non-
medicines, along with other meet Good Pharmacy Product prescription drugs, health and beauty care Practice (GPP) standards vitamins & supplements, products. - Have clear origins.
pharmaceutical cosmetics, - Does not sell prescription etc.) drugs. Higher than average price Price Affordable price Affordable price level - Highly skilled team of - Dedicated and attentive pharmacists available for health counseling services. inquiries via hotline and - Home delivery service, - Operating 24/7, enabling Service Zalo (from 7:30 am to facilitating exchange or online orders at any time. 10:00 pm). return of medicines as per - Swift and convenient the doctor's requirements. doorstep delivery. 10 3. Provisions for the market
The online pharmaceutical market in Vietnam is expected to grow significantly in the future.
The Vietnam E-Pharmacy Market was valued at USD 72.06 million in 2021 and is expected
to grow at a CAGR of 22.85% during the forecast period, 2023-2027, to reach a market
value of USD 242.1 million by 2027.
This growth is attributed to the expanding pharmaceutical industry in the country, growing
penetration of internet in the healthcare industry, and distribution of pharmaceutical and
therapeutic products over online channels.
The recent pandemic situation due to COVID-19 has further enhanced the e-commerce
industry as consumers prefer online purchases and home delivery of medical supplies over
physically visiting the pharmacies.
Increasing sales of smartphones and use of internet-based services for pharmaceuticals and
therapeutics are also contributing to the growth.
The demand for over-the-counter drugs along with the efficiency of e-pharmacies in
delivering low-cost medical supplies is aiding the growth.
Prescription drugs are anticipated to hold the largest revenue shares of the market due to
rapidly increasing instances of chronic diseases in the country. 11 III. COMPANY ANALYSIS A. Business structure B. Main products 1. Online-selling medicine
Customers can place online orders for their prescribed prescriptions, saving time and effort
that would otherwise be required to visit a real pharmacy.
Online pharmacies also frequently offer a larger product selection, affordable prices, and the
convenience of doorstep delivery.
Most suitable for mild diseases like flu, fever,... 12 2. Online health counseling
Through this service, users are able to consult medical professionals, receive emotional
support, and receive direction on a variety of health and wellness-related matters without leaving their homes.
It provides a practical and private means to address issues with physical and mental health,
making it available to those who would experience geographical or time constraints while
seeking conventional in-person counseling.. 3. At-home health care
This service provides a variety of healthcare options, such as nursing care, physical therapy,
and medical monitoring, making it a useful and practical choice for those who are
recuperating from diseases or managing chronic disorders.
With personalized care provided in the comfort of their own homes, patients can have all of
their medical requirements addressed while also fostering a sense of autonomy and dignity.
Most suitable for the elderly, people who are far from hospital, in adverse conditions,... C. Key operating processes 1. Customer module:
This is the interface where customers can browse, search, order, pay, track, and review the medicines they need.
It also includes features such as prescription upload, online consultation, chat support,
reminders, and loyalty programs. 2. Pharmacist module:
This is the interface where pharmacists can manage the inventory, verify the prescriptions,
prepare and pack the orders, generate invoices, and communicate with customers and couriers. 3. Admin module: 13
This is the interface where administrators can oversee and control the overall operations of
the online pharmacy, such as setting prices, discounts, policies, reports, analytics, etc. 4. Courier module:
This is the interface where couriers can receive and accept the delivery requests, update the
status and location of the orders, and collect feedback from customers. D. SWOT 1. Strengths
Collab with group of skilled medical professionals from reputed facilities
Over 8.5 million people live in Hanoi city → a large number of potential customers
24/7 online counseling and replying to customers
Collab with delivery businesses —> transport medicine as soon as possible to the
customer's home within minutes.
Has a system of online channels including website, fanpage 2. W eaknesses
Typical technical problems (such as: system faults, product loss, or copyright infringement) are all frequent occurrences
Have to compete with traditional pharmacies and have a reputation for their brand name and products
Have to gain the trust of customers in today's landscape of widespread online fraud 3. Opportunities
Increasing numbers of young people and those who are busy, enjoy surfing the internet and online shopping
The advancement of science and technology, especially in the healthcare and pharmaceutical
industries, has resulted in the development of numerous new, efficient goods for consumers 14
The need for medications and healthcare is increasing, particularly in light of pandemics and environmental degradation 4. Threats
There are many rivals, particularly traditional pharmacies or long-standing chains of
pharmacies with a solid reputation for their products
The risks and difficulties of running and managing an online store, particularly when
technological problems, system faults or product loss.
Governmental interference and regulations, especially when there are new rules, laws
changed, or sanctions for infractions in the pharmaceutical industry. E. Key winning points 1.
Store medical history for customers
Automated save all customers' prescriptions and medical history. From there, we can
suggest related supplements/functional foods to customers 2. Automatic messages
Send automatic reminders to remind customers about medication schedules and daily/weekly dosage.
Sending a diet list (including foods to eat/not to eat) based on the doctor's diagnosis of the
customer's illness to show concern for customers.
3. Customer care after using the product
After the customer takes the medicine, a counselor will call to check on the customer so that
they can update and keep track of the customer's status after taking the medicine. F. Performance measurement
The performance measurement is gauged by these following index: Number Name of Index Object measure Formula 15 estimates for a variety of Forecast consumption techniques as 1 consumption well as both cash and card sales Estimated cost of goods sold = estimated cost of products manufactured during the
the total cost of the volume of period Estimated cost of 2 products consumed in the + goods sold period estimated cost of ending inventory - minus the actual cost of beginning inventory Estimated selling expenses = forecast and aggregate the
estimated fixed selling expenses Estimated selling 3 primary means involved in expenses the sales process + estimated variable selling expenses Estimated business Estimated relies on the management cost management business unit multiplied by the 4 = management expected consumption estimated variable expenses volume management cost per unit 16 x estimated consumption volume Estimated revenue = Estimated product 5 Estimated revenue consumption x Estimated selling price calculating the cash inflows and outflows related to the 6 Cash capital various activities of the business during different time periods G. Objectives 1. Short term
Establish online presence: Within the first six months, create a user-friendly website and
app to enable online purchases and consultations for clients in Hanoi.
Increase local brand recognition: in the Southern area in general and in Hanoi in specific ,
using targeted social media and digital marketing efforts.
Secure Licencing and Compliance: Obtain all required licenses and guarantee strict
adherence to Hanoi's pharmaceutical rules.
Seamless Supply Chain: form partnerships with trustworthy neighborhood pharmacies and medical professionals. 2. Long term 17
National Expansion: Increase services' reach to include all of Vietnam's major cities like
Da Nang, HCM city,... in order to reach a broader market.
Increased Inventory: Based on consumer demands and trends, diversify the assortment of
medicines and healthcare goods that are on offer.
Health Education: Develop an informative health blog or content section to educate
customers about wellness and healthcare.
Customer Loyalty: Implement a loyalty program to retain customers and build a strong customer base.
Investment and Partnerships: Find prospective investors or partners to help the company grow and innovate. IV.
PLANNING AND FINANCIAL STATEMENTS
1. Detailed plans (Detailed plans for the year 2024) 1.1. Marketing strategy a. Marketing Mix
Source: Digital Marketing: Strategy, Implementation and Practice, Dave Chaffey STRATEGY 18 Product
Provide medicine and healthcare service for everyone:
Medicine: over-the-counter drugs for minor illnesses (sore throat,
fever,...); prescription drugs for serious illnesses; vitamins &
supplements; pharmaceutical healthcare products; medical supplies.
Healthcare services: online check-up and counseling 24/7; medical examination at home. Price
Market penetration pricing: offer a more affordable price compared to
other competitors in order to attract more customers and maintain a significant market share.
Psychology Pricing: target human psychology to increase sales (9-digit
effect, buy 2 get 3, voucher, free payment in case of late product shipping…)
Bundle pricing: offer many products in a bundle with lower price per product. Promotion
Digital marketing: Email marketing and SEM (Search Engine Marketing). Online advertising (social med
ia), traditional advertising (TV
commercials, billboards, leaflets…)
PR: Collaborate with celebrities, KOLs, KOCs…
Word-of-mouth: Stimulate customers to share their experience to their families, their friends
Sales promotion: Discounts on special occasions. Place
Totally online: omni online channels (website, Facebook, Zalo,…) People
Employees: Web developers, designers, support staff who are experienced and qualified.
Customers: people ranging from 18 to 50 living in Hanoi. Partners: Collaborate with 19
hospitals, clinics → have a qualified team of doctors, healthcare specialists and counselors.
shipping businesses → have a team of shippers to transport medical stuff
from businesses to PillPros and from PillPros to customers.
medical brands → have suppliers of medicine, supplements, medical supplies. Process
Before Launching: Market research → Data collection → Data analysis →
Planning & Modelling → Budget Allocation → Implementation → Forecasting → Launching
After Launching: Introducing → Promoting → Order processing → Payment
processing → Delivery logistics → Customer support systems → Improving Physical
Website, fanpage: create a professional, user-friendly and engaging image for Evidence the online platforms.
Company office: located in Hanoi, Vietnam
Product packaging: use transparent bags to package medicine with a note paper
including the customer's name and lucky wish for them. 1.2. Sales Strategy
Order processing and Payment processing:
Order processing: be conducted through mobile phones, website, email, fanpage on SNS platforms (Facebook)
Payment processing: various methods such as mobile banking, ZaloPay, MoMo, VNPay,
credit card, VISA card, Mastercard,... Distribution Method: online
Drugs will be prepared and shipped after payment process within 1 hour.
Doctor will come to the customer's home within 2 hours after order processing. 20 1.3. Operational strategy
Technological development: continuously update and develop the quality of the website, fix bugs
and enhance customer’s experience.
WFA model (Work from Anywhere): allow employees to work from home, work at satellite
office, mobile working in order to optimize working efficiency.
Focus on human resources: maintain potential employees, conduct recruitments,
Conducting regular evaluation: regularly seek out solutions to solve existing problems.
2. Required Capital and Allocation: a. Required Capital
To ensure the effective launch and ongoing operation of the PillPros Healthcare Website and Mobie
Application, a total capital investment of $500,000 is needed. This amount comprises $200,000 in
owner's equity and an additional $300,000 from external investors. b. Capital Allocation Estimated % cost Categories Cost budget allocated Purchasing Products $30.000 Inventory Costs Storage Costs $12.000 $50.000 10% Handling and Shipping $8.000 Online Platform Website $30.000 $50.000 10% Development Mobile application $20.000 Recruiting, interviewing $35.000 Pharmacist and Doctor Legal and Compliance $25.000 $80.000 16% Consultation Services Training and Certification $20.000 Marketing and $60.000 12% Advertising on social media $20.000 Advertising Reputable healthcare $15.000 21

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