INTRODUCTION

Health+ Pharmacy is a retail pharmacy business whose main goal is to provide

prescription medications for our customers at the lowest prices on the market.
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 and
upscale clientele. By focusing on this segment it gives us additional efficiencies
- we avoid disruptions in cash flow often associated with insurance payments
and we can eliminate unnecessary services for the type of knowledgeable,
repeat customer taking maintenance-type medication.

The Health+ Pharmacy will operate from one store that will serve both mail
order customers and those who visit in person. We will thrive by employing
friendly and knowledgeable personnel, which, along with our great prices, will
drive the repeat business that we will rely upon. We only expect that as the price
of medication continues to skyrocket, The Health+ Pharmacy will appeal more
and more to the customer's sense of value and convenience.

Our advertising, mainly through ads in magazines, will be targeted at those who
are looking to save money on a pricey but necessary and regular expense.

Costs will be minimized by maintaining only one pharmacist and filling the
void with pharmaceutical techs. We expect to reach profitability by our second
year and will generate substantial sales by year three.

Health+ Pharmacys purpose is to create a vision in the hearts and minds of its
community as a company that cares about the welfare of its employees, the
quality of its products and services, and the honesty and integrity of its business
relationships.

OBJECTIVES

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The objectives for the first three years include:

1. Exceed customer expectations with superior pricing

2. Increase the number of customers by more than 30% per year

3. Develop a business that survives off its own cash flow

MISSION

The Health+ Pharmacy's mission is to provide our customers with the best
prices for their prescription medications. Our convenience and services will
exceed the expectations of our customers.

KEYS TO SUCCESS

Satisfy our customers so they will return again and again

Maintain low overhead and operating costs

Provide better prices than all our competitors

Inventory Management

Effective Operation

SUMMARY

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Company Summary:

The Health+ Pharmacy will be located at Santacruz West, Mumbai and will
have branches all over India. It will offer prescription medications at discount
prices to our customers by mail order or at the store front.

Start-Up Summary:

The Health+ Pharmacy will incur the following start-up equipment costs:

Office equipment including chairs, file cabinets, and desks.

Front counter, storage bins, cash register.

Three computer terminals.

Main computer server with a laser printer, and back-up system.

Software: Microsoft Office, QuickBooks Pro, drug interaction software,

Physician Desk Reference software detailing side effects and other
information pertinent to the customer.

Assorted bottles, boxes, envelopes, etc. for dispensing and shipment.

Scales for shipping.

Telecom system.

Storefront build-out.

Start-up inventory.

Rent, utilities, insurance.

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 Business Structure

When hiring, we will look out for applicants that are not just qualified and
experienced, but honest, customer centric and are ready to work to help us build
a prosperous business that will benefit all the stake holders (the owners,
workforce, and customers). As a matter of fact, profit-sharing arrangement will
be made available to all our management staff and it will be based on their
performance for a period of three years or more.

CEO (pharmacy owner, superintendent pharmacist and supervising

pharmacist)
Pharmacist (Manager)
Merchandize Manager
Pharmacist technician (3)
Information Technologist (Contract)
Sales agents (3)
Cashier (Counter Agent)

CEO will be

Responsible for providing direction for the business

Responsible for fixing prices and signing business deals
Responsible for recruitment and payment of salaries
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization

Pharmacist (Manager) will be

Responsible for managing the daily activities in the restaurant

Providing advice about health issues, symptoms and medications in
response to customer enquiries
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 Processesing prescriptions and dispensing medication
Ordering, selling and controling medicines and other stock and
Controling the sales floor inventory
Managing budgets
Supervising the entire sales staff and workforce

Merchandize Manager will be

Managing vendor relations, market visits, and the ongoing education and
development of the organizations buying teams
Helping to ensure consistent quality of drugs and products on our rack
Responsible for the purchase of goods and products for the organizations
Responsible for planning sales, monitoring inventory, selecting the
merchandise, and writing and pricing orders to vendors
Ensuring that the organization operates within stipulated budget.

Pharmacy Technician will be

Ensuring that goods and products are properly arranged

Responsible for processing prescriptions
Responsible for sterilizing the counter tops, scales, pill counting trays,
and other medication measuring devices.
Handling administrative and bookkeeping tasks, inventory control,
stocking shelves, and data entry
Performing monthly inventory counts, file paperwork, and stock
inventory

Sales Agents will be

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 Managing external research and coordinate all the internal sources of
information to retain the organizations best customers and attract new ones
Sources for clients for the company
Responsible for promoting the companys image
Responsible for creating marketing and sales strategies, etc.
Represents the organization in some strategic business meetings

Information Technologist will be

Managing the organization website

Handling ecommerce aspect of the business
Responsible for installing and maintenance of computer software and
hardware for the organization
Managing logistics and supply chain software, Web servers, e-commerce
software and POS (point of sale) systems
Manage the organizations CCTV

Cashier (Counter Agent) will be

Receiving payments on behalf of the organization

Issuing receipt to customers
Preparing financial report at the end of every working week
Handling financial transaction on behalf of the company
Interfacing with our bankers
Responsible for payment of tax, levies and utility bills

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 PRODUCTS

Products and Services:

The Health+ Pharmacy will offer a wide range of prescription drugs to patients
based in Mumbai or nationally. Both generics and name brands will be offered.

In order for a customer to purchase medications mail order, they must first
contact The Health+ Pharmacy over the phone. The customer then needs to
either mail in the prescription, fax it, or email it. Once it is received and
payment arrangements are complete, the medicines will be sent out to the
customer through tie-ups with E-Commerce companies like Flipkart or Amazon.
Local customers may stop by the store front to pick up the medications.

The Health+ Pharmacy will only service customers who self pay. The self pay
customers will be attracted to The Health+ Pharmacy because of its superior
prices.

The Health+ Pharmacy will be able to survive on lower margins due to

operating efficiencies gained through national mail order operations and not
accepting insurance policy drug plans which hamper cash flow. The Health+
Pharmacy will also save money by not paying for customer's unlimited access
to a pharmacist. If a customer has a question regarding a drug, the
pharmaceutical technician will attempt to answer it. As a last resort the
pharmacist will provide the answer. Generally, the technician or the
accompanying printed literature will answer the question.

This model of saving costs by not providing unlimited access to the pharmacist
will be successful because the majority of customers will be customers who
have been taking said drug for awhile, as opposed to a new prescription, and
will not require their hand to be held during the transaction. They are interested
in The Pharmacy as an inexpensive source for their medication.

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With each order a printout will accompany the medications providing directions
on how to take the medications, other drugs that should be avoided
concurrently, and other useful information. The Health+ Pharmacy will be using
computer print outs from industry software to reduce the cost of providing this
information.

Competitive Comparison:

Health+ Pharmacy will position itself as premium pharmacy that caters to those
customers who pay for their prescription medications themselves and upscale
clientele.

The top three reasons for customers to shop from Health+ Pharmacy are:

Knowledgeable pharmacist

Availability of medications

'WOW factor' - Fun, Service & Refreshing Ambience

Fulfillment:

Health+ Pharmacy plans on buying products directly from distributors.

Distribution is a major concern for Health+ Pharmacy. Lot of prescription
medication distributors do not supply to organized retailers as the chemist
association in the city wants to thwart the competition from organized retailers.
However, Health+ Pharmacy can go to the physical location of the distributors
and buy products directly from their counter. However, there are distributors
who do supply to Health+ Pharmacy at their place of business.

Technology:

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Today, a lot of good retail businesses use technology to manage their business
better. The first area of concern is the Point Of Sale (POS) software. A good
Point Of Sale (POS) software allows the user to serve his customers quickly. It
allows the user to obtain specific reports like VAT returns, category & sub-
category sales, customer databases with customer information, purchases made
by the customer for a particular period, prescriptions of the customer and
average ticket price per customer.

Preferably Health+ Pharmacy would like the customer relationship software to

be integrated with the POS software. The customer relationship software will
tell what customers are buying and will use statistical analysis to tell what they
will buy next. It will also have the names, addresses and contact information of
customers.

MARKET ANALYSIS

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Market Segmentation:

The Health+ Pharmacy's target market consists of two different groups, local
customers or walk-ins, and mail order customers.

The Health+ Pharmacy will employ two different strategies to reach these two
diverse market segments.

The Health+ Pharmacy's 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 are 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.

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 Market Analysis

Walk-in customers Mail order

Target Market Segment Strategy:

The Health+ Pharmacy will seek to attract two different groups of customers
and will thus have two strategies to attract them.

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 for the The Health+ Pharmacy and our low prices.

Competition And Buying Patterns:

Competition takes many different forms in the pharmacy industry.

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 Chain pharmacies:- These are state or national chains. 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 Health+
Pharmacy.

Most customers buy medications & toiletries from places that are close to their
homes. Most business is generated through word of mouth. Multi-Chain stores
like Apollo and trust don't really have great advertising campaigns. Their
business is primarily through word of mouth. There are some other customers
who buy specialty medicines from specialty pharmacies like cash pharmacy in
Bangalore.

Market Needs:

The Health+ Pharmacy will be providing the market with a source of discounted
drugs. The Health+ Pharmacy will seek to fulfill the following benefits that are
important to their customers.

Selection: The Pharmacy will offer a wide range of medication, both

originals as well as generic alternatives.

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 Accessibility: Products will be distributed through the conveniently-
located store front, or through E-Commerce companies like Flipkart or
Amazon.

Customer service: The Pharmacy will recognizes the value of having

outstanding customer service. By exceeding all of the customer's
expectations, the Pharmacy will ensure repeat customers and many referrals.

Pricing: The Health+ Pharmacy's prices will be noticeably better than

local pharmacies.

The three basic needs that buyers look for in a pharmacy is:

Safety of medications

Hygiene

Availability of medications

Knowledgeable pharmacist

Market Trends

Today, there are not many players in the organized retail pharmacy market.
Most of the pharmacies are owned by independent mom & pop operations.
However things are changing now. Lot of big players are entering the market.

Huge companies get into the retail sector and start multiple store chains. And
they bypass the supply chain by buying directly from stockiest or even the
manufacturer. They cut out the distributor and thus can pass on the benefit to the
customer by offering a 10-15% discount. However it's difficult for the

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independent retailer to offer such discounts as these margins go to the
distributor.

Another trend that is happening is that a lot of companies are trying to sell
consumer goods like shampoos, soaps and others through retail pharmacies. The
reason for doing that is because consumers tend to trust pharmacists more than
departmental stores and because pharmacies are more hygienic. This trend was
spotted by an article in the financial times.

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 SERVICE BUSINESS

Health+ Pharmacys business will fit into 3 industries:

The Retail industry

The Pharmaceutical industry

The Personal care market.

According to a dietician in the Indian Bureau of Marketing and research, the

diabetic market in India is valued at Rs 600 Crores. Health+ Pharmacy also
plans on targeting women and children. The reason for this is that there are
sizable gynaecologists and paediatrics in the area.

The retail pharmacy industry is dominated by many independent retailers; it is

fairly unorganized at the moment. There are a few organized players like
Subiksha, Apollo, etc. The Reliance Group, India's largest conglomerate is
planning on getting into the retail sector shortly. This should increase
competition in the retail sector.

Industry Participants

The pharmacy retail industry is made up of many small independent retailers or

mom & pops. The industry is fairly unorganized. Nowadays, there are atleast 10
to 15 pharamcies in the two kilometre radius. In each of Health+ Pharmacys
locations, there would be at least 20 pharmacies in the two kilometer radius that
will compete with Health+ Pharmacy.

There are very few regional and national chains. Among the regional chains,
Wellness Forever, Apollo & Subiksha are some of the major players. Most of
the pharmacies do not offer discounts, however Subiksha offers a 10% discount
on all medications & a newly launched pharmacy chain Ayurvadulu offers a 4%
discount to all customers and 14% discount to senior citizens. Although they
offer a discount, their pharmacies are not very clean and hygienic.

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Distribution Patterns

In prescription medications, the supply chain goes from the manufacturer to the
stockists to the distributor and then to the retailer. In FMCG products, the
products are sold from the manufacturer to the distributor and then to the
retailer.

However, the reliance group, one of the largest conglomerates in India is

planning on acquiring many of distributors and consolidating the industry. They
plan on being a national distributor. This should level the playing field as many
of the independent retailers have a chemist association that boycotts distributors
for supplying to organized retailers. Therefore, many distributors are reluctant
to supply to organized retailers. Since Health+ Pharmacy will be an organized
retailer, the problem of boycott will be taken care by consolidation from the
reliance group.

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 STRATEGIES

Sales

Most of Health+ Pharmacys sales will come from its retail outlets. Each sales
associate will be trained to be a customer relationship associate using our sales
processes model. Home deliveries will be made to customers for extra
convenience. A database of customers with demographic information about
what they buy and when they buy will be maintained. Most likely Health+
Pharmacy will use salesforce.com as our database vendor.

Since discounts will be given to the customers, 1%-2% extra discount will be
given to the regular customers. With each order a printout will accompany the
medications providing directions on how to take the medications, other drugs
that should be avoided concurrently, and other useful information.

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
Health+ Pharmacy 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.

Pricing

Most of Health+ Pharmacys prices will be manufacturer suggested prices.

Moreover, it is hard to charge higher prices for the same product and the same
brand. However, Health+ Pharmacy will have a mark-down section in its stores,
that way Health+ Pharmacy will offer a discount on some products. This will
ensure that products sell faster than normal, build traffic, have customers come

17
back to its stores more often and develop a perception among customers that our
pricing is competitive.

Promotion

The following will be Health+ Pharmacys promotion strategy:

1. An awareness campaign throughout the year by farming its geographic

target

2. One launch event or anniversary celebration per year

3. Two health camps per store per year.

4. One charity event per year.

5. Two contests per year.

6. 1 sale per store per year.

7. Direct mailers to diabetics, genecology, cardiac, pediatric and

dermatology patients every quarter i.e. 4 times a year.

8. Direct mailers of birthday cards with a gift coupon every month.

9. Market research (internal) twice a year.

10.Market research through an external agency, if required, once a year.

11.One Diwali promotion a year.

12.One Christmas and New Year promotion per year.

13.Listing on Just dial

14.Listing on the Yellow Pages Implementation will be measured by filling

up the pre and post promotion form.

Sales Program

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All Health+ Pharmacy sales associates will be extremely presentable. They will
wear uniforms at all times of work and present a consistent and professional
image of the company. They will be trained in its sales processes. Every new
hire has to be trained in its sales process before they get involved in any
interaction with the customer.

Competitive Edge

The Health+ Pharmacy's competitive edge is superior pricing. To do that we must

maintain our position as the low cost provider by painstakingly 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 Health+ Pharmacy 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.

Sales Forecast

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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 MARKETING PLAN

Health+ Pharmacy marketing strategy is to improve the image of its company

by improving the quality of its ads and its communication materials. Health+
Pharmacy realizes that its business cards, envelopes and letterheads are tools to
promote its business. Therefore Health+ Pharmacy will get them designed by a
good graphic designer thus presenting a classy upscale image of its business.
Its sensory package has to be upscale & exciting.

The store interiors & store front should not have anything that is printed from
its computer on an A4 sheet or cut in pieces of paper as this makes its business
look extremely unprofessional. All communication material has to be finished

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up by a good professional designer to give its business a strong professional
image.

Store staffs have to always wear uniforms and present a professional image of
the business. The core value proposition of Health+ Pharmacy is knowledgeable
staff, availability of medicines and the 'wow' factor - service, fun & refreshing
ambience.

SWOT ANALYSIS

Strengths

Good ambience: Our stores would very nicely designed & soothing
music will be played in the background to provide our customers a great
shopping experience.

Continuous improvement: We will constantly strive to improve

ourselves & get better at what we do all the time.

Quick Delivery Service: The products will be delivered to the customers

in 1-2 days.

Weaknesses

Lack of expansion and diversification during initial 2 years: Due to lack

of fund or capital during the initial years, it would be difficult for
Health+ Pharmacy to expand or diversify its branches.

Opportunities

The retail pharmacy industry is fairly unorganized. Most pharmacies

nowadays are fairly unorganized, unhygienic and lack good customer
service. There will be a great opportunity for Health+ Pharmacy to
provide good service in a hygienic & dynamic atmosphere.

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Threats

Emerging Competition from organized retailers: Reliance, India's largest

conglomerate plans on venturing into the pharmacy retail space. And
there are also rumours that other organized retailers may follow suit.

Possible price ceiling by government regulation: Since medicines are

important to the community at large, the government may have a price
ceiling on the pricing of medicines.

Strategy Pyramid

Health+ Pharmacys main strategy is to position itself as a pharmacy

that can be trusted.

This will be done by portraying a professional image where all employees wear
a uniform and the store is neatly organized. Providing good customer service
where staff welcome them with a beautiful smile and even carry customer's bag
to the car.
Health+ Pharmacy will use consultative selling and relationship selling methods
to position itself as a pharmacy that customers trust.
All Health+ Pharmacy communication materials will be professionally designed
by exceptionally good graphic designers to portray a strong image of its
business.

Position ourselves as experts in our field

Health+ Pharmacy will have banners in front of its stores that have a punch line
that says "Prescription medicines are our specialty. Health+ Pharmacy will
have a small 3 page brochure giving a brief description about its business.

Strategic Alliances

It may be beneficial to have tie-ups with doctors and clinics around the area
where doctors give Health+ Pharmacy customers a discount. This should help

22
the doctors as this will bring them more customers and will help Health+
Pharmacy customers as this will give them benefits to shop at Health+
Pharmacy stores. It also brings Health+ Pharmacy closer to doctors as this will
help Health+ Pharmacy promote its business in their clinics.

It may also be beneficial to have tie-ups with other brands where they give us
coupons and other incentives for customers to purchase their products. Health+
Pharmacy is still developing plans for co-marketing programs with its vendors.

FINANCIALS

Start-Up Capital

Start-Up Capital will be generated through

Personal savings

Source for soft loans from family members and friends

Loan from my Bank

Investment by Partner

Start-Up Expenditure (Budget)

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 This is the key areas where we will spend our start up capital on;
The Total Fee for Registering the Business in Mumbai Rs.50000.
Legal expenses for obtaining licenses and permits- Rs.100000
Marketing promotion expenses as well as flyer printing Rs. 200000
Cost for hiring Consultant Rs.150000
Cost for Computer Software (Accounting Software, Payroll Software,
CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software,
Physician Desk Reference software) Rs.350000
Insurance (general liability, workers compensation and property
casualty) coverage at a total premium Rs.250000
Cost for payment of rent for 12 month- Rs.2000000
Cost for Shop remodeling (construction of racks and shelves) Rs. 60000
Other start-up expenses including stationery and phone and utility
deposits- Rs.150000
Operational cost for the first 3 months (salaries of employees, payments
of bills etc) Rs. 400000
The cost for Start-up inventory (stocking with a wide range of products)
Rs. 900000
Cost of purchase and installation of CCTVs: Rs. 350000
The cost for the purchase of furniture and gadgets (Computers, Printers,
Telephone, TVs, tables and chairs etc): Rs.300000
The cost of Launching a Website: Rs. 45000
Miscellaneous: Rs.100000-200000

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 CONCLUSION

The pharmaceutical industry is one of the most important industries in India,

and these days quite a few Indian firms have become large global players in
the generic formulations market.

Since there are many players in the market who provide discounts, Health+
Pharmacy will be providing the products at higher discounts than the other
retailers. Delivery services will be a lot quicker than the others since we
promise to deliver it within a day or 2. Apart from this we will also provide
prescription of medicines and how much dose to be taken at the time of
delivering the medicines to the customers which will make us a unique
pharmacy retailer.

It will benefit the human society as a whole and people will be able to access
medicines easily and at affordable prices and reducing their stress of

25
arranging funds for medicines as they will be self sufficient to buy the same.
We will ensure that people live a healthy life.

BIBLIOGRAPHY

http://www.bplans.com/pharmacy_business_plan/financial_plan_fc.
php

http://www.mplans.com/pharmacy_marketing_plan/controls_fc.php

http://www.profitableventure.com/pharmacy-business-plan/

http://www.235268894-Business-Plan-Sample-Pharmacy.pdf

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