Case Analysis for "MedNet.com confronts 'Click-Through' Competition" by Chandra Has Dondapati for an internship under Professor Sameer Marthur (www.iiminternship.com)

1. MedNet.com confronts “Click Through”
competition
An Analysis

2. Table of Contents
MedNet – A summary
Challenge 1 - Marvel
Challenge 2 –
Cholestrol.com
Possible Solutions
Recommended Solution

3. MedNet.com A Summary
The goals with which it was launched..
The characteristics of the company and brand image
Competitors in the market
Business Model

4. Goals
MedNet.com – Summary

5. Goals
To provide scientifically based medical information to non professional audience
To provide the above information for free to consumers
1
2
3 To generate profits from advertising sales

6. Goals
To provide scientifically based medical information to non professional audience
To provide the above information for free to consumers
1
2
3 To generate profits from advertising sales

7. Goals
To provide scientifically based medical information to non professional audience
To provide the above information for free to consumers
1
2
3 To generate profits from advertising sales

8. Characteristics and Brand Image
MedNet.com – Summary

9. Characteristics and Brand Image
Accessibly Written; Easy to navigate and Trustworthy
Considered the best website for trusted ,evidence based consumer information
Includes an active community of bloggers, community chats and virtual reality enthusiasts

10. Qualıtıes
Easy/Quick
to Navigate
Very Easy and
Intuitive to use
Accessibly Written
Very accessibly
Written
All content is
written/reviewed by
Experts
personable
With expert reviewed
peer content
Professıonal

11. Competitors
MedNet.com – Summary

12. Competitors
US National Library
of Medicine
WHO Website Cholestrol.com
Condition Specific
Sites

13. Competitors
Clinical Trials .com Alternativehealth.com Marvel – Search
Engine

14. Business Model
MedNet.com – Summary

15. Business Model
Pays them by Cost per thousand Impressions (CPM) method
Offers all other content for free
Traditional Banner advertising ; primarily by pharmaceutical companies

16. Challenge 1
MARVEL

17. The Marvel Story
Pays for clicks instead of impressions
Higher click through rate…
Seemingly a cheaper alternative for the
companies…

18. The Marvel Story- Solution
Click ≠Sale.
But this throws up another issue….Cholestrol.com
MedNet “click”ed customers tended to buy the product more than
customers of general purpose marvel….

19. Challenge 2
Cholestrol.com
(Content Specific Sites)

20. Characteristics..
Focussed only on one CHRONIC condition
Provided Interactive tools….
1
2
3 Came dangerously close to actual prescription / Diagnosing

21. Characteristics..
Focussed only on one CHRONIC condition
Provided Interactive tools….
1
2
3 Came dangerously close to actual prescription / Diagnosing

22. Characteristics..
Focussed only on one CHRONIC condition
Provided Interactive tools….
1
2
3 Came dangerously close to actual prescription / Diagnosing

23. Possible Solutions ??
?

24. The Alternatives
1
Take a more
prescriptive role
• Charge for content
• Treat customers
as almost patients
• Less dependent
on revenues
Include Alternative
Health info
2 3
• Start
conservatively
• Then turn Liberal
• Will it help
advertising ?
Be a manager of
employer websites
• Use Integrity to
their advantage
• Would advertising
continue ?
• Is it good overall ?

25. The Alternatives
1
Take a more
prescriptive role
• Charge for content
• Treat customers
as almost patients
• Less dependent
on revenues
Include Alternative
Health info
2 3
• Start
conservatively
• Then turn Liberal
• Will it help
advertising ?
Be a manager of
employer websites
• Use Integrity to
their advantage
• Would advertising
continue ?
• Is it good overall ?

26. The Alternatives
1
Take a more
prescriptive role
• Charge for content
• Treat customers
as almost patients
• Less dependent
on revenues
Include Alternative
Health info
2 3
• Start
conservatively
• Then turn Liberal
• Will it help
advertising ?
Be a manager of
employer websites
• Use Integrity to
their advantage
• Would advertising
continue ?
• Is it good overall ?

27. Recommended Solution ??
?

28. Which one ?
1
Take a more
prescriptive role
• Charge for content
• Treat customers
as almost patients
• Less dependent
on revenues
Include Alternative
Health info
2 3
• Start
conservatively
• Then turn Liberal
• Will it help
advertising ?
Be a manager of
employer websites
• Use Integrity to
their advantage
• Would advertising
continue ?
• Is it good overall ?

29. The Recommended Solution
1
Take a more
prescriptive role
• Charge for content
• Treat customers
as almost patients
• Less dependent
on revenues
Include Alternative
Health info
2 3
• Start
conservatively
• Then turn Liberal
• It will help
Advertising
Be a manager of
employer websites
• Use Integrity to
their advantage
• Would advertising
continue ?
• Is it good overall ?


30. The next question is ….

31. Why not option 1 ?
Alternative Solution

32. Reasons..
Statistics show people are not willing to pay for content/ register..1
2
3
Will only lead to loss of customers
A prescriptive / diagnostic approach would harm MedNet’s image of trustworthiness,
Integrity in case of any (highly plausible) legal issue.
Will harm MedNet in the long run.
A lot of people browse general health information not just condition specific pages. We
would lose all those customers…

33. Evidence 1
6 out of 10 people wouldn’t want
MedNet to store personal information

34. Evidence 2
75% people wouldn’t want to pay for
content
75 percent

35. Evidence 3
50% people wouldn’t want to register
for content
50 percent

36. Clearly the adoption of this move will
only harm the existing customer base
and also will hinder potential users..
Analysis
!

37. Reasons..
Statistics show people are not willing to pay for content/ register..
A prescriptive / diagnostic approach would harm MedNet’s image of trustworthiness,
Integrity in case of any (highly plausible) legal issue.
1
2
3
Will only lead to loss of customers
Will harm MedNet in the long run.
A lot of people browse general health information not just condition specific pages. We
would lose all those customers…

38. ‘…were at risk of violating state and
federal regulations that require medical
advice to be delivered in person by a
licenced physician’
Evidence

39. The benefits(if any) of this move are
clearly not worth the gamble that this
move is. In the long run it’ll only serve to
destroy the strong trustworthy image of
MedNet.
Analysis
!

40. Reasons..
Statistics show people are not willing to pay for content/ register..
A prescriptive / diagnostic approach would harm MedNet’s image of trustworthiness,
Integrity in case of any (highly plausible) legal issue.
1
2
3
Will only lead to loss of customers
Will harm MedNet in the long run.
A lot of people browse general health information not just condition specific pages. We
would lose all those customers…

41. Evidence
50% people visit general sites

42. Evidence
Wait ? How does these people help
advertisers ?

43. Evidence
These are the same people who would
come back in case of a crisis …

44. Evidence
As evidenced by this survey…
Would you return to MedNet
In case you need information ?
93% yes !!!

45. Analysis
Hence this extra viewership helps…

46. Why not option 3 ?
Alternative Solution

47. Reasons..
Will dent their integrity and trustworthy image… Sends out a slightly
image
1
2
3
The Pharmaceutical company may not let them advertise … even if they do they would
e subject to control and regulation …
Will harm MedNet in the long run.
Loss of Independence …Factors like driving down healthcare costs will now be a
priority …

48. ‘ We’ll be inviting a perception that we
abandoned our hard nosed scientific
independence in morphing from a
information content business to a human
resources services for hire… ’
Evidence
- Heather Yates
Vice President,
Business Development
MedNet,.com

49. Reasons..
Will dent their integrity and trustworthy image… Sends out a slightly
image
1
2
3
The Pharmaceutical company may not let them advertise … even if they do they would
be subject to control and regulation …
Will harm MedNet in the long run.
Loss of Independence …Factors like driving down healthcare costs will now be a
priority …

50. Reasons..
Will dent their integrity and trustworthy image… Sends out a slightly
image
1
2
3
The Pharmaceutical company may not let them advertise … even if they do they would
be subject to control and regulation …
Will harm MedNet in the long run.
Loss of Independence …Factors like driving down healthcare costs will now be a
priority …

51. Why alternative methods ?

Alternative Solution

52. Reasons..
Will expand and diversify the visitor/ customer base a lot..1
2
3
Help MedNet be more stable , and ensure it can afford to reduce income form some
companies
For all non staunch supporters, MedNet will now serve to be a transitory,
comprehensive, trustworthy source of all kinds of medical methods. Will increase it’s
own viewership from these new class of customers.
Starting conservatively and then slowly turning liberally will help
the customers adapt to the change. Hence no viewership is lost.
It’ll help diversify the income ensuring it doesn’t depend on any one company majorly


53. ‘It’s audience was larger than MedNet’s
and it’s advertising sales more robust… ’
Evidence
- Description of
Alternativehealth.com


54. This class of staunch supporters of
alternative medicine will now ultimately
turn toward MedNet because of it’s trust
worthy image..
Evidence
!


55. The staunch supporters of Western
medicine will not have a problem
because of the slow transition
prescribed; their needs will still be
continued to be served in the same way
Evidence
!


56. Reasons..
Will expand and diversify the visitor/ customer base a lot..1
2
3
Help MedNet be more stable , and ensure it can afford to reduce income form some
companies
For all non staunch supporters, MedNet will now serve to be a transitory,
comprehensive, trustworthy source of all kinds of medical methods. Will increase it’s
own viewership from these new class of customers.
Starting conservatively and then slowly turning liberally will help
the customers adapt to the change. Hence no viewership is lost
It’ll help diversify the income ensuring it doesn’t depend on any one company majorly


57. ‘It’s audience was larger than
MedNet’s and it’s advertising sales
more robust… ’
Evidence
- Description of
Alternativehealth.com


58. Such robust sales will help MedNet
ensure it’s income comes from
variable sources….
Evidence
!


59. ..ensuring an incident like Windham
wouldn’t have much impact on the
company ….
Evidence
!


60. Reasons..
Will expand and diversify the visitor/ customer base a lot..1
2
3
Help MedNet be more stable , and ensure it can afford to reduce income form some
companies
For all non staunch supporters, MedNet will now serve to be a transitory,
comprehensive, trustworthy source of all kinds of medical methods. Will increase it’s
own viewership from these new class of customers.
Starting conservatively and then slowly turning liberally will help
the customers adapt to the change. Hence no viewership is lost
It’ll help diversify the income ensuring it doesn’t depend on any one company majorly


61. The non-staunch supporters of either
medicine will now have an unique
website that’ll let them compare and
help find the right solution across the
spectrum..
Evidence
!


62. Include Alternative Health information on the site
Final Recommendation..


63. Credits MedNet.com – An Analysis
http://psdkeys.com/powerpoint/7173-vertex-minimal-presentation-29707.html
http://psdkeys.com
Harvard Business Review : MedNet.com Confronts “Click-Through Competition
Allegra Young April 20, 2007
http://images.elephantjournal.com/wp-content/uploads/2012/01/Alternative-
Health1.png

64. Presentation by Chandra Has Dondapati
as part of an Internship under
Professor Sameer Mathur