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Launch of an e-commerce store for
pharma products in Latin Countries:
proposed approach and partnership
model

October 2011




                1
OBJECTIVE



 The main goal of this presentation is to share:



       • key elements for the business model, rules and partnership responsibilities for i-Labs Digital and its
         Partners



       • revenue models, proposed by i-Labs



       • main benefits (in terms of business success) and Partner’s requested characteristics




                                                         2
BACKGROUND


 • i-Labs Digital is an Italian company with a consolidated expertise on the e-commerce market; it owns
   some e-commerce stores for pharmaceutical products, operating both in Italy and Europe

 • i-Labs Digital has a 3 years of experience and a specific know-how on the web marketing activities in
   support to the pharmaceutical market

 • i-Labs Digital owns good, efficient and optimized brand names for the positioning upon the website
   search engines

 • i-Labs Digital has developed a specific and operational model aimed to use the best marketing initiatives
   and get the maximal outcomes back

 • i-Labs Digital can guarantee a rapid implementation and launch, usually within 2 months

 • i-Labs Digital is willing to enlarge its website portfolio to South America’s national markets and is, then,
   looking for Local Partners (Pharmacy / Pharmaceutical Wholesaler) interested in the pharmaceutical e-
   commerce

 • i-Labs Digital is an Italian company with a consolidated expertise on the e-commerce market. It owns
   some e-commerce stores for pharmaceutical products, operating both in Italy and Europe. We are
   looking for a Partner, in Latin Countries (Brazil, Mexico, Spain; Portugal, etc) who owns a physical
   Pharmacy interested to launch an e-commerce store in revenue sharing with us.

 • Launch of an e-commerce store for pharma products in Latin Countries:
   proposed approach and partnership model

                                                           3
BUSINESS MODEL KEY ELEMENTS


1    Customer
                                                  2    E-commerce store/Virtual
• Makes orders through the pharmacy                    Pharmacy
  e-commerce store
                                                 • Notifies by e-mail the customer’s
• Fills in required fields                         order with detail on ordered products,
  (name, address,                                  shipping address, chosen payment
  phone, etc)                                      method, etc
• Pays the order by                              • Manages first level help desk
  credit card, bank                                (requests about website technical
  transfer, etc                                    issues, etc)




4    Courier
                                            3    Physical Pharmacy
• Manages the product delivery to the
  customer                                  • Controls availability of the ordered products
                                            • Makes check on the right payments
                                              execution and its correctness
                                            • Prepares the order to hand it to the courier
                                            • Manages a second level help desk (requests
                                              on product composition, availability, etc)


                                        4
E–COMMERCE STORE DEVELOPMENT: RULES AND RESPONSIBILITIES

                               Start-up phase                        Day by day management

                       • Develops and delivers the final         • Manages a first level Help Desk
                         web site release (in terms of           • Clears up technical issues
                         graphic, functionalities, etc)
                                                                 • Manages online marketing activities
                       • Sets up, together with the physical
                         pharmacy, products categories           • Identifies, together with the physical
                         and main features                         pharmacy, marketing initiatives and
                                                                   promotions
                       • Uploads the most relevant
                         products, according to the physical     • Periodically updates the products
                         pharmacy indications                      portfolio, in line with the physical
                                                                   pharmacy indications
                       • Sets up payments tools (Paypal,
                         credit card, bank transfer, etc)

                       • Supports i-Labs during the web          • Manages the customer orders’
                         site set-up (product indications,         delivery
                         categories, etc)                        • Manages a second level Help Desk
                       • Provides, to i-Labs, information        • Identifies, together with i-Labs,
 Physical Pharmacy       about product that can be sold            marketing initiatives and
                         online                                    promotions
                       • Identifies, together with i-Labs, the   • Supports i-Labs in the products
                         final price for online products           portfolio updating
                       • Signs in an agreement with one or
                         more local couriers

                                           5
WORKING WITH i-LABS: MAIN BENEFITS FOR PARTNERS


i-Labs guarantee several advantages and benefits to the Partners, both the Pharmacist and Pharmaceutical
Wholesaler, interested to start an online e-commerce business based on pharmaceutical products, of which:


  1 • An instant grow up of the revenues, due to the increase of orders coming from the e-commerce
      channel


  2 • The possibility to challenge into a new and highly potential market channel with chances to increase
      profitability and brand image, thanks to the low competitiveness (as for now)


  3 • i-Labs support during the start up phase and Customer Relationship Management activities, focused on
      the online Clients


  4 • The achievement of economies of scale with the possibility to negotiate better conditions, with the
      suppliers, focused on the product price discount


  5 • More visibility towards the Pharmaceutical Companies to launch partnership programs upon the region




                                                       6
WHO i-LABS IS LOOKING FOR


 Partner Key Characteristics   Description

                               A big Partner, with an high volume of revenues, usually owns strong
      High Revenues            business capabilities inside its organization and positioning towards
                               suppliers and local customers


                               i-Labs is looking for a Partner with strong IT competencies and the
     IT Competencies           availability, in terms of time and/or resources, to manage two contemporaries
                               shops, offline and online


                               Thanks to the e-commerce possibility to sell products everywhere in the
     Product portfolio
                               Country, the higher is the product portfolio the bigger are the chances to get
        availability
                               online success and increase revenues


                               The possibility to manage a broad margin between cost and vendor price
     Price competition         gives the possibility, to the e-commerce business, to set up more customer
                               appealing price discount level


                               i-Labs will choose between those Partners located nearby big cities, highly
         Location              populated regions and/or well connected communication route (i.e.
                               autoroutes, highways, airports, train stations, etc.)


                                                 7
WHY CHOOSING i-LABS




                             1 • Strong experience in the e-commerce market both in the
                                pharmaceutical and food & beverage market




  e-Commerce strength
                             2 • Networking capabilities within the most important actors
  points of i-Labs Digital
                                inside the market, such as: pharmaceutical companies,
                                couriers, SEO/SEM experts, online comparison shopper,
                                blog and scientific websites, adv companies, etc.




                             3 • Technical competencies to develop and manage an e-
                                commerce website




                                         8
REVENUE MODEL*



                     Revenues for Partners



                            50%
                                             Gross margin is calculated as:
                              of
                                             + Revenues (Price x Quantity)
                     Gross margin            - Cost of Good Sold
                                             - Shipping costs (if any)
                                               charger to sender
                                             - Financial transaction costs
                                               (for credit cards, paypal,
                                               etc)
                                             - Variable Marketing costs (i.e.
                            50%                affiliation)
 Physical Pharmacy            of

                     Gross margin




                                   9
CONTACTS


   Please contact us if you are interested to be our Partner in your country.


   • i-Labs Digital
     Piazza di Pietra 26
     00186 Rome
     Italy


   • www.i-labs.it


   • Antonio Fois – Managing Director
     email: foisa@i-labs.it
     mobile: 0039.340.47.69.545




                                                    10

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I-labs Digital Pharma e-commerce

  • 1. Launch of an e-commerce store for pharma products in Latin Countries: proposed approach and partnership model October 2011 1
  • 2. OBJECTIVE The main goal of this presentation is to share: • key elements for the business model, rules and partnership responsibilities for i-Labs Digital and its Partners • revenue models, proposed by i-Labs • main benefits (in terms of business success) and Partner’s requested characteristics 2
  • 3. BACKGROUND • i-Labs Digital is an Italian company with a consolidated expertise on the e-commerce market; it owns some e-commerce stores for pharmaceutical products, operating both in Italy and Europe • i-Labs Digital has a 3 years of experience and a specific know-how on the web marketing activities in support to the pharmaceutical market • i-Labs Digital owns good, efficient and optimized brand names for the positioning upon the website search engines • i-Labs Digital has developed a specific and operational model aimed to use the best marketing initiatives and get the maximal outcomes back • i-Labs Digital can guarantee a rapid implementation and launch, usually within 2 months • i-Labs Digital is willing to enlarge its website portfolio to South America’s national markets and is, then, looking for Local Partners (Pharmacy / Pharmaceutical Wholesaler) interested in the pharmaceutical e- commerce • i-Labs Digital is an Italian company with a consolidated expertise on the e-commerce market. It owns some e-commerce stores for pharmaceutical products, operating both in Italy and Europe. We are looking for a Partner, in Latin Countries (Brazil, Mexico, Spain; Portugal, etc) who owns a physical Pharmacy interested to launch an e-commerce store in revenue sharing with us. • Launch of an e-commerce store for pharma products in Latin Countries: proposed approach and partnership model 3
  • 4. BUSINESS MODEL KEY ELEMENTS 1 Customer 2 E-commerce store/Virtual • Makes orders through the pharmacy Pharmacy e-commerce store • Notifies by e-mail the customer’s • Fills in required fields order with detail on ordered products, (name, address, shipping address, chosen payment phone, etc) method, etc • Pays the order by • Manages first level help desk credit card, bank (requests about website technical transfer, etc issues, etc) 4 Courier 3 Physical Pharmacy • Manages the product delivery to the customer • Controls availability of the ordered products • Makes check on the right payments execution and its correctness • Prepares the order to hand it to the courier • Manages a second level help desk (requests on product composition, availability, etc) 4
  • 5. E–COMMERCE STORE DEVELOPMENT: RULES AND RESPONSIBILITIES Start-up phase Day by day management • Develops and delivers the final • Manages a first level Help Desk web site release (in terms of • Clears up technical issues graphic, functionalities, etc) • Manages online marketing activities • Sets up, together with the physical pharmacy, products categories • Identifies, together with the physical and main features pharmacy, marketing initiatives and promotions • Uploads the most relevant products, according to the physical • Periodically updates the products pharmacy indications portfolio, in line with the physical pharmacy indications • Sets up payments tools (Paypal, credit card, bank transfer, etc) • Supports i-Labs during the web • Manages the customer orders’ site set-up (product indications, delivery categories, etc) • Manages a second level Help Desk • Provides, to i-Labs, information • Identifies, together with i-Labs, Physical Pharmacy about product that can be sold marketing initiatives and online promotions • Identifies, together with i-Labs, the • Supports i-Labs in the products final price for online products portfolio updating • Signs in an agreement with one or more local couriers 5
  • 6. WORKING WITH i-LABS: MAIN BENEFITS FOR PARTNERS i-Labs guarantee several advantages and benefits to the Partners, both the Pharmacist and Pharmaceutical Wholesaler, interested to start an online e-commerce business based on pharmaceutical products, of which: 1 • An instant grow up of the revenues, due to the increase of orders coming from the e-commerce channel 2 • The possibility to challenge into a new and highly potential market channel with chances to increase profitability and brand image, thanks to the low competitiveness (as for now) 3 • i-Labs support during the start up phase and Customer Relationship Management activities, focused on the online Clients 4 • The achievement of economies of scale with the possibility to negotiate better conditions, with the suppliers, focused on the product price discount 5 • More visibility towards the Pharmaceutical Companies to launch partnership programs upon the region 6
  • 7. WHO i-LABS IS LOOKING FOR Partner Key Characteristics Description A big Partner, with an high volume of revenues, usually owns strong High Revenues business capabilities inside its organization and positioning towards suppliers and local customers i-Labs is looking for a Partner with strong IT competencies and the IT Competencies availability, in terms of time and/or resources, to manage two contemporaries shops, offline and online Thanks to the e-commerce possibility to sell products everywhere in the Product portfolio Country, the higher is the product portfolio the bigger are the chances to get availability online success and increase revenues The possibility to manage a broad margin between cost and vendor price Price competition gives the possibility, to the e-commerce business, to set up more customer appealing price discount level i-Labs will choose between those Partners located nearby big cities, highly Location populated regions and/or well connected communication route (i.e. autoroutes, highways, airports, train stations, etc.) 7
  • 8. WHY CHOOSING i-LABS 1 • Strong experience in the e-commerce market both in the pharmaceutical and food & beverage market e-Commerce strength 2 • Networking capabilities within the most important actors points of i-Labs Digital inside the market, such as: pharmaceutical companies, couriers, SEO/SEM experts, online comparison shopper, blog and scientific websites, adv companies, etc. 3 • Technical competencies to develop and manage an e- commerce website 8
  • 9. REVENUE MODEL* Revenues for Partners 50% Gross margin is calculated as: of + Revenues (Price x Quantity) Gross margin - Cost of Good Sold - Shipping costs (if any) charger to sender - Financial transaction costs (for credit cards, paypal, etc) - Variable Marketing costs (i.e. 50% affiliation) Physical Pharmacy of Gross margin 9
  • 10. CONTACTS Please contact us if you are interested to be our Partner in your country. • i-Labs Digital Piazza di Pietra 26 00186 Rome Italy • www.i-labs.it • Antonio Fois – Managing Director email: foisa@i-labs.it mobile: 0039.340.47.69.545 10