Founded in 2017
Remedin is the compass for small pharmacies! Through an application for purchases in pharmacies and applying BI over our database fueled by consumer behavior, we provide small pharmacies with information for better decision-making on purchases, inventory management and health services offering, making them more competitive in relation to large pharmacies and allowing the local population easy access to primary health care services.
Project Area: Finance
Project team size: 3-5
Learning Outcomes: Strategy, Growth Strategy, Financial Planning & Analysis
Project description, objectives:
Drug store retail in Brazil holds about 78,000 active pharmacies, from which 52,000 are small pharmacies that serve the population of peripheral areas out of urban centers. However, these pharmacies get only 30% of the sales. This market is dominated by 28 large groups that get almost 50% of all sales with only 9,000 stores. In this scenario, there is a clear cartelization process imposed by large groups that have better commercial conditions. Facing these issues, small pharmacies need to find ways to become more modern, competitive, and attractive, otherwise, they will go bankrupt.
Remedin chose a business model oriented by short term demand focused on B2B2C System, creating an immediate connection between pharmacies and customers through technology. We also increased sales and offered low prices, providing a good experience for users. This happens because of our exclusive app for small businesses in which monetization is based on a monthly license plus a fixed fee per order made through the App.
The company will also make money by offering advertising spaces for the beauty industry, with charges collected in the following month. In the short run, we aim to connect those pharmacies to distribution centers and industries in an agile and objective way, generating better negotiation conditions between players and creating a large collaborative and sustainable chain. We look forward to encouraging improvements in inventory management of pharmacies and to feed the Distribution System with Sales Data Reports.
We also plan to be connected to the Public Health System providing statistical data based on the consumption behavior of medicines. Generating real-time information so epidemic situations can be controlled in a more effective way.
As explained before, our current monetization system relies solely on the income from pharmacies that use our system – monthly license plus a fee per order. This brings us a great dependence on this source of revenue and also there is the risk of default from pharmacies. Moreover, we would like to grow and anticipate revenues in order to use this money to make investments in the company in the short term.
Taking this into account, Remedin is seeking to improve the current monetization system and also to find new ways to monetize its business.
Our key objective is to improve our monetization system into an innovative and efficient way in the short run, by optimizing our charging process, considering administration credits, and transactions possibility.
Remedin would like the students to: