Introduction
Tata 1mg offers a paid membership (marketed in recent years as the 1mg Care Plan, and commonly referred to as 1mg Plus) that gives members benefits such as extra discounts on medicines and lab tests, free or reduced delivery and doctor consultations, depending on the plan. Memberships matter in e-pharmacy because chronic patients order every month, and a membership can lock in that habit. But benefits cost money, and since 1mg's core businesses turned EBITDA positive in December 2025, every rupee of benefit must earn its keep.
The question: should 1mg's membership focus on free delivery or on deeper medicine discounts? This is a trade-off between two value propositions: convenience (delivery) and savings (discounts), with different costs and customer appeal.
Start by asking which benefit changes behaviour most per rupee spent. A membership benefit that mostly subsidises purchases that would have happened anyway is expensive.
Step 1
Clarifying Questions (3 minutes)
- Assumption: An annual fee (low thousands of rupees), extra discount on medicines, discounts on lab tests, free delivery above a low minimum and some free consults.
- Assumption: Increase retention and share of wallet of chronic patients profitably.
- Assumption: Mostly chronic patients in metros and tier-2 cities; average order value higher than non-members.
- Assumption: Yes, for new members by randomising offers.
Practice similar questions
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