WebMDWebMDIndia InternationalIndia International

Elizabeth KulinElizabeth KulinMayur AttwarMayur Attwar

Stacy Hsin-YingStacy Hsin-YingAnthony RamosAnthony Ramos

Kelly KeenKelly Keen

Country & Market RisksCountry & Market Risks

Underdeveloped infrastructureUnderdeveloped infrastructure BureaucracyBureaucracy Cultural barriersCultural barriers Legal frameworkLegal framework

• Intellectual property lawsIntellectual property laws

WebMD India MissionWebMD India Mission

Provide India with an opportunity to Provide India with an opportunity to access current medical information.access current medical information.

Internet SiteInternet Site iPhone appsiPhone apps MagazinesMagazines In-store KiosksIn-store Kiosks Patient RoomsPatient Rooms Facebook/ORKUTFacebook/ORKUT TelevisionTelevision

WebMD ServicesWebMD Services Online Medical ProfilesOnline Medical Profiles Doctor ListingsDoctor Listings Medical DictionariesMedical Dictionaries Healthy LivingHealthy Living Drug NewsDrug News Health SolutionsHealth Solutions Support GroupsSupport Groups Wellness Media-meditate/yoga videoWellness Media-meditate/yoga video

East meets West – AYUSHEast meets West – AYUSHAYUSHAYUSH is used by over 70% is used by over 70% AAyuvedayuveda YYogaoga UUnaminami SSiddhaiddha HHomeopathyomeopathy

WebMD shall mixWebMD shall mixEastern & Western Eastern & Western

medical informationmedical information

ChallengesChallenges Water TreatmentWater Treatment Animal WasteAnimal Waste Growing PopulationGrowing Population InfrastructureInfrastructure Technology GrowthTechnology Growth Aging PopulationAging Population Lack of DoctorsLack of Doctors Access to Medical CareAccess to Medical Care Division of WealthDivision of Wealth

StrengthsStrengths Growth Potential Growth Potential Large MarketLarge Market FDI emerging FDI emerging

marketsmarkets Strong local Strong local

healthcare: drug, healthcare: drug, medical devices, medical devices, technology technology

Cheap, but skilled Cheap, but skilled labor forcelabor force

Faster market Faster market approvalsapprovals

WeaknessesWeaknesses Unreliable HealthcareUnreliable Healthcare PovertyPoverty Inadequate Inadequate

InfrastructureInfrastructure Biased governmental-Biased governmental-

based pricing structure based pricing structure and reimbursement and reimbursement policypolicy

BureaucracyBureaucracy Poor IP rightsPoor IP rights

OpportunitiesOpportunities Liberalization of Liberalization of

healthcarehealthcare Large growing Large growing

population population Population is Population is

educated, tech educated, tech savvy & wealthier.savvy & wealthier.

Technological Technological advances advances

Disease EradicationDisease Eradication

ThreatsThreats Possibilities for Possibilities for

fraud, counterfeit fraud, counterfeit and IP and IP infringementsinfringements

Healthcare Healthcare delivery structures delivery structures affecting access to affecting access to medicinesmedicines

Price Controls Price Controls CorruptionCorruption

Environmental Environmental ProblemsProblems

Competitor AnalysisCompetitor Analysis

Few small online competitorsFew small online competitors Focus on providing minimal support Focus on providing minimal support

and adviceand advice Health Care sector : increased Health Care sector : increased

competitioncompetition Privatized health care focuses on Privatized health care focuses on

tertiary-level of health-caretertiary-level of health-care Forecast: expected to become Forecast: expected to become

competitive with IT and infrastructure competitive with IT and infrastructure improvementsimprovements

Customer Analysis Customer Analysis Customers:Customers:

Doctors, Hospitals, Medical Schools, Health Insurance, Healthcare Doctors, Hospitals, Medical Schools, Health Insurance, Healthcare Tourism Services, Pharmacies, Pharmaceuticals, BiotechTourism Services, Pharmacies, Pharmaceuticals, Biotech

* Buy = Advertisement space * Pay = CPM (Cost/thousand Impressions) * Price = $2 / CPM

Revenue

Forecast: Growth PotentialForecast: Growth Potential

CONSUMER MARKET

CUSTOMER MARKET

Online Adv.

GDP

ObjectivesObjectives• Acquire and RetainAcquire and Retain

Brand AwarenessBrand Awareness Innovate to meet consumers wants/needsInnovate to meet consumers wants/needs

GoalsGoals Financial success Financial success Brand Equity successBrand Equity success Global BeginningGlobal Beginning

Strategic DirectionStrategic Direction

3. Revenue

2. Adv Price & CPM

1. Traffic

10%

30%

41%

CONSUMER POPULATION ACQUISITION

$3.5mYr 3

Profit

Firm AnalysisFirm Analysis

Based in NY

Revenues:US$382 m 08’ vs. US$332 m 07’ (15%)

Online: 95.7% vs. Publishing: 4.6%

Business Model

Traffic volume of visits

Webpage advertisement space buys

India Headquarters

MumbaiDelhi

Bangalore

$400 in 2010

Competitive AdvantageCompetitive Advantage

AdvantagesAdvantagesInternal:Internal:Strong searching engine reaches to more audiences

External:External:The trend of on line shopping & consultation keeps up

IssuesIssuesInternal:Internal:The ethical & privacy issue The ethical & privacy issue exist everywhere in the new exist everywhere in the new technology eratechnology era

External:External:Any change in regulation of Any change in regulation of healthcare, drug and medical healthcare, drug and medical device advertising & device advertising & promotionpromotion

Branding & PositioningBranding & Positioning

Branding Branding (Brand Equality)(Brand Equality)

Healthcare supporting platform

Educational resource

Good-naturedresource

WebMD-India

Positioning Statement

Branding & PositioningBranding & Positioning

“

WebMD-India A educational resource & healthcare supporting platform

Points of Difference Allow Indian to access health-care system more

cost-effectively & reliably than any other competitors

Develop a credible healthy partnership

Marketing Action PlanMarketing Action Plan(Pricing, Service Design)(Pricing, Service Design)

Web-based Advertising ratesWeb-based Advertising rates Optimal Pricing Strategy – based on Optimal Pricing Strategy – based on

size, layoutsize, layout Design Layout in accordance to SOW Design Layout in accordance to SOW Design for hospitalsDesign for hospitals

Marketing MixMarketing Mix (Promotion, Distribution)(Promotion, Distribution)

Direct Email – customers & clientsDirect Email – customers & clients Free Software to Partners and Vendors Free Software to Partners and Vendors

for WebMd portalfor WebMd portal Workshops to trainWorkshops to train Recycle Computers and DonateRecycle Computers and Donate Advertising through Prominent Health Advertising through Prominent Health

MagazinesMagazines Internet – the main Distribution ChannelInternet – the main Distribution Channel

Financial Assumptions – Financial Assumptions – % of Overall Revenue % of Overall Revenue

20%

15%

10%10% 20%

25%

IT costs (transfer of webportal, technologies, ideasand knowledge

Marketing Costs

Advertising Costs

Sales Costs (negotiationsand representatives forinitial discussions)

Maintainance / GeneralAdmin expenses

Corporate Tax and fees

Financial Considerations Financial Considerations Projected RevenueProjected Revenue

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Year 1 Year 2 Year 3

Hospitals & SchoolsMedical ShoppeHealth Tourism

Roll-Out ScheduleRoll-Out Schedule

Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Medical Schools/Hospitals

Launch WebMD

India

Beta Site Launch to Select Users/ Focus Groups

Advertising Campaigns

Indian Marketing Team Hiring

Media & Magazines

Medical Shops/

Pharmacies

Medical Tourism

Complete SCM

Llinkages

Launch Web MD India

Re-evaluate LRP

Implement Kiosks

Recycle computers to schools & rural areas

Future of Personal Handheld Future of Personal Handheld DevicesDevices

Vital StatisticsVital Statistics• Heart RateHeart Rate• TemperatureTemperature• DensityDensity

Sensor for Lab TestsSensor for Lab Tests• SalivaSaliva• BloodBlood• Urine/StoolUrine/Stool

Connection to Doctors & PharmaConnection to Doctors & Pharma Timed Release of DrugsTimed Release of Drugs

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Regulatory IssuesRegulatory Issues CDSCOCDSCO -Central Drug -Central Drug

Standard Control Standard Control OrganizationOrganization

CDAICDAI -Central Drugs -Central Drugs Authority of India Authority of India

DGCIDGCI –Drug –Drug Controller GeneralController General

WHOWHO -World Health -World Health OrganizationOrganization

Go to Market StrategyGo to Market Strategy Customer targetsCustomer targetsThe buyers (customers)The buyers (customers)

• Private Hospitals • Indian Medical Schools • Medical shops• 3rd party healthcare tourism business • Health insurance companies

• Medication manufacturers & biotech companies The Influencers (consumers) doctors, patients, pre-medical & current medical students, Indian population that depend on medical shops, population that depend on medical shops,

international touristsinternational tourists

Exit StrategyExit Strategy

Keep only internet site running in Keep only internet site running in India and move operations to a more India and move operations to a more Western Culture, possibly in Europe, Western Culture, possibly in Europe, Hong Kong or Singapore where this is Hong Kong or Singapore where this is a large Western foundation to launch a large Western foundation to launch International.International.

Focus on Brand Equity and Trust – Focus on Brand Equity and Trust – keep a reputable vision.keep a reputable vision.