Analysis of Planet Health Case Study


Planet health was founded in 2001 by Rohit Patel. He is the managing director and promoter of sagar drugs and pharmaceuticals. He had done his post graduate with marketing specialization. Also he is a director of Sar investments and GPSAR Healthcare Ltd. And managing partner of Ankur Industrial Corporation. Planning, financing, global and local marketing are his areas of operations. Rohit Patel won the AMA- Atlas Dyechem Outstanding entrepreneur of the year 1997. Rohit is the member of executive committee of the Gujarat Chamber of Commerce and Industry.

Rohit sees an opportunity to set up a chain of high-end health care facility stores in India with the increase in demand of basic health care facilities and the narrowing of the nation’s pharmaceuticals industries to patented and non-patented drugs, instead of manufacturing chemicals for drug giants who shall eventually take up the market after the enforcement of patent of products act. With the introduction of patents act in India, numbers of brands in medicines were to decrease, however, the sale of generic medicines shall increase and this shift in the market is a hint for the introduction to organised retailing.

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In organized retailing, many brands with their entire collection are to be sold under one roof. This requires that the brands be limited so there is limited competition in a particular segment of the product under sale.

Executive Summary:

Problems faced by planet health to capture the market

Small retailers were the basic concern because consumers feel viable to go to their nearby retailers and buy the medicines because their nearby retailers moreover, consumers feel that it is viable to go and tell the shopkeeper what they need and get from there regardless to troll around the shop and then pick up the product.

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Also in the small retail shop they get benefit of telephone order system credit facilities, home delivery and branded products produced on order. And most important small retail shops are available at next door, so owner himself comes for delivery. Also in planet health consumers demand trained manpower, at management level if not then it is risk factor for the failure. Planet health to capture the market they need to invest in building the potential brand name, by different outlook to retail store and staff. So specific space of 160ft. Is required by the planet health and 2 BHK store area is required then only planet health can capture the market. Huge amount of investment will be required for the planet health. Moreover, a specific space for the parking should be provide for its customers. In local retailers they have a great window for the customer to shop and here the need is that the customer not only comes when they want medicine but they look up when they are in need of medical checkups.

Benefits of Planet Health

Planet health came to India that bought a difference in the retail market. The company provided the customer free space to go and pick up the medicines they need. Moreover, this store is the great window for the customer to shop and here the need is that the customer not only comes when they want medicine but they look up when they are in need of medical checkups. And also the updated medicines should be kept which adds prestige towards the planet health so constantly check of medicines and expired one thrown out is the loyalty component of planet health towards their customer. And also the other benefit of planet health is here there are no wholesalers attached so the company takes medicines from manufacturer and they sell. So no middleman attached. And the trained manpower, proper infrastructure and quality products is important and it attracts its market. Planet health they have in forced trained workers who have good acknowledgement of medicines so it can treat people well. One gets the tester of skin ailments so in the Indian society if they feel and then buy they trust the product hence they prefer walk in to planet health.

Business Plan:

It was felt that investment in real estate could be considered quite safe in the context of increasing real estate prices. The investment in inventory could be recovered through discount sales in case the venture did not succeed. After the survey surekha come to a decision to open the first store at Delhi with an educated pharmacist. Later on, it is recommended that the every pharmacy should have atleast one educated pharmacist.

After the survey of the market and seeing the present conditions of the retail pharma shops. Planet health should start its real estate investment with the 500ft shop. Apart from this company(retail shop) is been planning to provide other than medicines are like RX products, personal care, baby care, beauty care, alternative medicines etc. the study says that company can sell products of ₹1000 per ft. apart from that they will be providing the 24*7 services and home delivery(neighboring area). They should provide the regular disc. Of 15% on bill above ₹1000 and 5% below the bill of ₹1000. They will be again the value as they are providing the educated pharmacist. As they are planning to tie-up with the doctor and paramedical services. Therefore, they need to open the medical shops near the hospital and office of doctor were they have long term relationships. Also in the shops there is requirement of 5 people: 1) store operator, 2) educated pharmacist 3) watchmen 4) delivery boy 5) cleaner. Only this much staff is required as we are using less space. In future if are running with huge expenses then the expense of watchmen is to be neglected. The feel of the store will be made satisfying for the client utilizing Air Conditioners and exist through counter after the payment. After that the normal parking facility should provide to the customer. The number of products to be sold to customer are perfect but in personal care it should not include deodorants, foot care, mouth care & in beauty care there is no need of providing Manicure/pedicure, bath & spa & no need of stocking hosiery & in baby care food & care, health remedies are no needed to be stocked. Food products include gums, chocolates etc.

Reasons for not choosing 1000 & 2000 ft. store:

As per requirement of the area 1000 sq. ft. Central Pharmacy is not requiring for the area. As the store will include separate billing counter and consumer would have to spend for time in the billing process and also increasing the purchasing process. As per area or locality the 1000 sq. ft. wouldn’t help as the store demand more management and maintenance than the 500 sq. ft. And store has to maintain more stock as they have to add Ayurvedic preparations and Homeopathic medicines. The store would excise the consumer and therefore the supply would be more than the demand. Hence this kind of situation shows the excess supply curve which results in ineffective and unbalanced situation.

The company shouldn’t opt. for 2000sq. of area as we calculate by the area 1sq. should be equal to 1000$ of profit and the categories which are added in 2000sq area are beauty care products, food and snacks, pet products, homoeopathic preparations which are of no use as per the demand by Mr.Rohit, as in India homoeopathic doctors usually prescribe their own medicine which is only available at doctor’s pharmacy, since he only wants to go in pharmacy business food and snacks is of no use, pet products aren’t a part of his vision for the store and beauty care products is not stated as his requirement for the business. Some of the categories could be helpful for Rohit’s business but the main aim or focus of the store is pure medicines and drugs, so as per the requirement the appropriate store of him is 500sq and not 2000sq. or his business might suffer.

According to TableCS.5.4 the suggested store in which all his categories are defined is 500sq.

Future Plan

As now, the business plan in the hands of the chairman, it is very important to create such a team which will modify the plans and come up with new ideas according to the existing market condition. The team should not only focus on usable and feasible options, but also focus on the investments which are high and affect the parent company and how the company is affected as a whole. An effective analysis is to be done in order to check the consequences too. Also to focus on making monetary benefits (profits) even after breaking even against the investments made.

The team should bring changes to management by communicating and taking suggestions from groups, and highlighting these three major questions. Firstly whether the company should go into the fields of organize retailing. Then checking if the business plan, appropriate enough to get into the market. Lastly what changes are required in the above plan and why. These are the few guidelines which are to be taken into consideration.

After evaluation of report by chairman and if it comes positive, the idea should be expressed in the business plan. The business model should be dynamic, and adaptive in nature. That means must change and come up with idea according to the needs. if the report is negative the Chairman may like to think on the lines of smaller chains of retail stores which are somewhere in between the mega market for health products and the small retails of pharmaceuticals.

These are our suggestions and plans according the case analysis done. These questions are must look after and take measures to have an efficient future plan for the company. Evaluation according to the market needs and adaption is very important.


Hence, it is clear from the above case analysis that there are both circumstances of pros and cons for Planet health in the market. The only way for the planet health to succeed is to make improvements about the problems which are faced by them. To get in competition with the retail market it should open a store which can cater to all the needs of the current market. Therefore, by achieving all the above given points planet health can succeed in the market and it may affect the retail market in terms of sales.

Cite this page

Analysis of Planet Health Case Study. (2022, Apr 30). Retrieved from

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