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A MARKETING MIX ON THE LAUNCH OF PE LABS!

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OVERVIEW

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The 15bn$ Diagnostic Testing Industry in India has emerged as a massive driver in the Indian Healthcare sector, with it set to grow by 14% CAGR annually. Covid Disruptions has further shaped the market, with customers recognising the need for regular diagnostic check ups and are also now getting comfortable with home collection. Pharmeasy's astute acquisition of Thyrocare has provided the necessary impetus to strengthen their new lab testing offerings.

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With the increasing digitisation of this highly fragmented market, we seek to leverage all levers of customer decision making to assist customers in selecting our services & drive top line for PharmEasy Labs. This led us to look for insights about two central stakeholders in the value chain:

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1. Doctors - Referrals constitute 55% share of the Indian Diagnostic Industry with doctors being the key drivers of these referrals. This represents a scenario where a decision-maker(Doctor) is solely accountable for the decision that potential customer(Patient) makes. Recognising distinguishing factors influencing their referral through a survey was central to our hypothesis.

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1. Customer - With the changing patient behaviour of prioritising convenience, we recognised the need to understand their perception of the operators in the industry and how we fare against this frame of reference.

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Praxis Global Alliance “Diagnostics: Unraveling the Future” July 2022

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PRELIMINARY RESEARCH

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Here are our findings:

1. Doctors Survey
1. When it comes to recommending a particular lab centre, doctors are primarily influenced by Reliability (90%) and Pricing (67%) of the Lab Testing Offering.
2. According to doctors, certified phlebotomists and scheduled home pickups are two services that may persuade patients to choose online lab testing over other options.
3. The word "Convenience" sticks out in the minds of doctors when it comes to online pharmaceutical companies that offer lab testing.

2) Consumer Survey

• 90% of people only take tests if they are ordered by a doctor.
• 40% of people use diagnostic labs, 35% use online booking, and 25% use home sample collection for lab testings.
• People go to labs after being referred by doctors, friends, and family. Factors such as price, diagnostic popularity, and previous visits to the same centre also influence their selection.
• Customers consider convenience, price, diagnostic popularity, and reliability as the differentiating factors in an online lab testing offering.

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A key insight drawn was that Online Diagnostic Labs were trusted by 50% of the participants aged between 25-40

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The report's findings are based on a pan-Indian survey limited to 40 participants as well as semistructured interviews with 10 Doctors of varying practice with key emphasis on Online Pharmacies with Lab offerings & its market perception. Please see Appendix for more information on our methodology,

E Pharmacy and Home Diagnostics Tests (Responses) - Google Sheets

E Pharmacy Lab Diagnostics Study - Doctors Responses

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Reliance Industries Limited “NETMEDS MARKETPLACE LIMITED” Financial Statements” March 2021

Exhibit 1(a)

Exhibit 1(b)

Compared to private labs, E-Pharma Marketplaces provide lower lab testing costs. Due in part to its investments and a larger average order volume, Pharmeasy generates the largest revenue amongst its competitors.

Refer appendix.

Of the 25 top lab tests by volume, a difference in the depth of offerings in noticeable between competitors.

Refer Appendix.

PERCEPTUAL MAP

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Low Features

HIgh Features

Low Price

High Price

Segmentation

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POSITIONING

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1)On time Sample Collection - Convenience

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2)Lab test from comfort of your house with certified phlebotomists

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3)Trusted and Certified labs

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4)Timely and accurate reports at your fingertips

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5)Exhaustive list of tests available just with a click .

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6)All your medical reports at a single place.

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Marketing Funnel

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FOCUS

FOCUS

SEO optimisation and promotions to ensure PharmEasy is ranked high among search results.

Nudges for abandoned carts and in-app notifications, combined with personalised engagement, to help boost conversion.

Omnichannel discovery. Physical Touch Points include BillBoards, Banners, Print.

FOCUS

Run referral programs.

Promotional Campaigns of 30% coupons on Bundled Packages.

FOCUS

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APPENDIX

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1. Doctors Survey - E Pharmacy Lab Diagnostics Study - Doctors Responses

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1. Consumer Survey - E Pharmacy and Home Diagnostics Tests (Responses) - Google Sheets

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1. Competitor Analysis - Lab Test Pricing

a)Profile Visits Per Year

b)Average Order Value

c)Average Lab Test Price- Top 25 Lab Test by Volume

& Populated Prices from the Websites - Average Lab Test Price

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1. Others - Praxis Global Alliance “Diagnostics: Unraveling the Future” July 2022

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