🧪 Orange health Labs - Acquisition
🧪

Orange health Labs - Acquisition

Orange health Labs is a full stack diagnostic lab that provides on-demand pathology testing.


Product Selection Criteria:



Selection Criteria

Orange Health Labs Points

Tech-enabled product/Internet-first product

Yes ✅
Google play store App: https://play.google.com/store/apps/details?id=in.orangehealth.patient&hl=en_IN&gl=US

Website : https://www.orangehealth.in/

Achieved PMF

Yes ✅

Company Stage: Series B

Total funding: $34.9 M

IPO Stage: No

Repeat usage of the product

Usage frequency: Medium

Interest

Yes ✅

Familiarity

Yes ✅

Willingness to pay

Yes

Orange Health's only provides paid services and its estimated annual revenue is currently $76.3M. https://growjo.com/company/Orange_Health



Understanding the Product

What is Orange health labs vision?


Orange health labs view on healthcare is that, like much else, it should reach our homes – conveniently and affordably.And effective medicine will be only when online and offline worlds combine.

Orange health labs efforts will be to create services and products that doctors can use with their patients in clinic or remotely at their homes to better assess and diagnose patients health and provide the right treatment.


What is Out of scope for the assignment?


Orange health labs has 3 business model:

  • D2C : Customer is end-users like us , who wants to get tested at home to get the right treatment.
  • B2C : Customer is Doctors, who wants assess and diagnose patients health and provide the right treatment.
  • B2B : Customer is Corporate/ businesses, who want to diagnose their employees for their own policy compliance.

Here we will focus on only D2C customers where the customer wants a health checkup/test at home.


What Orange health labs is trying to solve?


Over the last two years, healthcare and diagnostics have emerged as a key theme for India,
especially in Tire 1 cities, and people are more proactive, rather than reactive, for their daily healthcare checkups. However convenient , effective and accurate diagnosis is something our customer refuse to trade off. And that's where Orange Health Labs steps in.


Here, are the 3 major pain points of out consumers, that we are trying to solve:

  • Accurate diagnosis : Do you know how accurate is your blood test? Are you misdiagnosed?
  • Getting tested with the convenience of being at home : Is it safe to allow technician in our home? Only my old parents are at home, will they be treated right in my absence?
  • Get the right treatment from a doctor at convenience.


How we are solving these pain points ?


At Orange health Labs, we take pride of doing that just right! All our attention and effort is to get accurate health checkup tests at convenience. For this we take care of all the minute things that other labs don't.

  • We get your blood straight to our labs! Orange Health Labs is India’s first retail lab with no batching. Here, samples are taken straight to the lab from your home. Fresher blood. Accurate Reports.
  • Your home is our workplace and we are very professional. We make sure you get the best experience at you home with our well trained and trusted technician.
  • To get accurate result, getting the samples to labs as fast as possible is important.
  • Our team of qualified pathologists and lab technicians ensure that your samples are processed with the highest safety protocols so that all reports are absolutely accurate.
  • Our Labs facilities are the best in town. All of our labs are NABL and ICMR accredited labs.




ICP Profiles

ICP 1

ICP 2

ICP 3

ICP 4

ICP 5

ICP 6

ICP Name

Chronic Patient

Busy working children

Health-conscious millennial

Paranoid when ill

Self-healer

Soon-to-be a mom

Age

40-50

30-54

30-45

38-48

35-40

30-35

Goals

Maintaining a healthy lifestyle

Parental care

Being healthy inside and outside

Get well as soon as possible

recover from an ailment with little to no reliance on medication

A healthy baby

Income levels

20-30 LPA

40-60 LPA

20-40 LPA

50-60 LPA

30-40 LPA

20-30 LPA

Gender

Female

Male

Male

Female

Female

Female

Location

Bangalore

Bangalore

Hyderabad

Bangalore

Pune

Pune

Companies

MNC

Early stage Startup

Startup

Big Product Company

Medium scale Service Company

MNC

Marital Status

Married

Unmarried

Married

Unmarried

Unmarried

Married

Where do they spend time?

Youtube, Healtify.me, Reddit,

OTT

OTT, Youtube, Gaming , zomato, swiggy Dinning and dating, Instagram

Gym, Youtube , Cult.fit , Marathons, Sports

OTT, Youtube, Shopping , yoga classes, zomato, swiggy Dinning

Meditation, Yoga, OTT , youtube, parks, instagram

Doctor's Appointments, Parenting Classes, Online Communities, Baby Stores

Where do they spend money?

OTT subscriptions,

Health related app and clubs,

Yoga classes , Zumba classes

Healthy food, snacks.

OTT subscriptions, Home deliveries,

Electronics.

Sports club, health tracking devices, electronics.

Clothes, cosmetics, gym and yoga class fees, food order.

Alternative therapy, Organic and Whole Foods, Travel and retreats.

Prenatal Care, Baby Gear, Maternity Clothing, Childbirth and Hospital Expenses

Nursery and Baby Room

Time Vs Money Prefrence

Money

Time

Money

Time

Money

Money

Pain points

  1. Convenience
  2. Accurate result.
  3. Easy access to all previous reports
  1. Parental care at home
  2. Easy to supervise the test
  3. Trust
  1. Monthly/quarterly checkup
  2. Keep in check of any anomalies.
  3. Preventive remedies/ diet plan
  1. Accurate result
  2. Easy Access to all previous reports
  3. Insights on the report trends either through App or via consulting doctor
  1. Natural ways/ home remedies to get well.
  2. Minimum medication and medical treatment
  1. Regular Prenatal Check-ups
  2. Easy Access to all previous reports
  3. Easy access for doctor consultation




ICP Prioritization


2

4

1

3

Particulars

Adoption Curve

Usage frequency

Appetite to pay

TAM

Sum Product

ICP 1

Chronic Patient 

3

3

3

1

24

ICP 2

Busy working children 

3

3

2

2

26

ICP 3

Health-conscious millennial

3

2

3

2

23

ICP 4

Paranoid when ill 

2

1

3

1

14

ICP 5

Self-healer

1

1

1

1

10

ICP 6

Soon-to-be a mom

1

3

2

1

19


Looking at the Prioritisation table , we can divide into ICPs into Power users, active users, dormant users:

Power users : ICP 1 , ICP 2

Active users : ICP3 , ICP 6

Dormant users : ICP 4 , ICP 5.



Market

Vision of the Orange health Labs to be in all cities of India and and every health checkup to be done through Orange health Labs.

ICP 1 : Chronic Patients

Let's take diabetic patients only as other chronic patients will be significantly lower


Line Item

Value

Comments

No. of diabetic patients in indian in 2023

100 Million

As per Ministry of Health and Family Welfare report

Total Addressable Market

100 Million

%  of total population living in Tire 1 cities 

34%

No. of diabetic patients in india Tire 1 cities in 2023

34 million 

Pro-rata basis 

Servicable Addressable Market

34 million 

Total indian population 

1400 million

1% of india total population is earning more than 30 LPA = 14 million

% of india total population is earning more than 30 LPA

1%

Total number of indian earning more than 30 LPA

14 million

% of india total population is earning more than 30 LPA living in Tire 1 cites 

34%

Total number of indian earning more than 30 LPA in tire 1 cities

5 million

Total number of indian earning more than 30 LPA in tire 1 cities and is diabetic

0.35 million

7% of total indian population is diabetic 

Serviceable Obtainable Market

0.35 million

ICP 6 : Soon-to be Moms


Line Item

Value

Comments

No. of Pregnant women in indian in 2023

30 Million 

https://iapsm.org//maternal-health.html#:~:text=Every%20year%20in%20India%2C%20roughly,27%20millions%20have%20live%20births.

Total Addressable Market

30 Million 

%  of total population living in Tire 1 cities 

34%

No. of Pregnant women in india Tire 1 cities in 2023

10.2 million

Pro-rata basis 

Servicable Addressable Market

10.2 million

Total indian population 

1400 million

1% of india total population is earning more than 30 LPA = 14 million

% of india total households is earning more than 30 LPA

1%

Total number of households earning more than 30 LPA

14 million

% of india total households is earning more than 30 LPA living in Tire 1 cites 

34%

Total number of households earning more than 30 LPA in tire 1 cities

5 million

Total number of indian earning more than 30 LPA in tire 1 cities and is expecting

0.5 million

1% of total indian population is expecting a baby

Serviceable Obtainable Market

0.5 million

Similarly we will calculate the TAM, SAM and SOM of all the ICPs which will give us total TAM, SAM and SOM for Orange health labs.



Stage of Orange Health labs :

Since Orange health labs have around +1 lac download in play stores and have stable revenue for last 2 years with total funding of 34.9 M, suggest that it has met the product market fit and is in early scaling stage.
Since it is in early scale stage we will experiments with channels that can provide scale with minimum effort and is flexible enough to accommodate any changes is the traffic.

Channel

Now let's prioritise channels on below criteria :


Channel name

Cost

Flexibility

Effort

Lead time

Scale

Organic

Low

Low

Low

Medium

Low

Paid Ads

High

Medium

High

High

High

Referal

Low

High

Medium

Low

High

Product integration

Medium

High

Medium

Low

High


Based on above table, we will prioritise on the following two channels:

  1. Paid Ads
  2. Referral

Channel Deep Dive:

Paid Ads:

Why Youtube Ads?

  • CAC : LTV
    Customer lifetime value:

Average customer spend per order

500

Frequency of order per year

2

Lifespan of customer (in years)

3

Customer LTV 

3000

Customer Acquisition Cost :

Avg. monthly search vol.

6500

CTR

90%

Clicks

5850

Conversion rate

2%

Paying Customers

117

CPC

4.03

Ad spends

23575.5

CAC

201.5

CAC : LTV is 1 : 14.88 , Hence paid ads will work

  • Scale : Youtube has a large user base and capability to reach a broad audience with precise targeting and is easy to scale, whenever needed.
  • Experimentation : Easy to experiment with different content to increase the conversion rate.
  • Re-targeting : Youtube offers to re-target the customers who clicked on the add but was not converted to any sale.
  • Insights : Youtube provides detailed analytics to get insights on campaign performance and then marketing team can optimise accordingly


Target ICPs :

  • Health-conscious millennial : Likely to spend time on videos related to fitness , wellness, body anatomy , diet planning.
    • Overview of the Ad:
      • We will start with a a typical pain point for a health conscious millennial for eg, like why the exercise is not showing them any result ?
      • "Orange health labs is here to help"
      • This should be in 1st 4 seconds of the ad
      • Tell the viewer the core value proposition of the product: faster, accurate and convenient.
      • Get your self tested for any hormonal imbalances : and show them where exactly what tests and checkup they can discover in the app.
  • Paranoid when ill : Should be target seasonally , eg when dengue or any virus cases is on rise , for the brand recall. Likely to spend videos on news, stock market, more polarised opinion videos.
    • Overview of the Ad:
      • Start with a fact. Can be on how may dengue test cases are on rise, or how many cases are there for misdiagnosis in India.
      • Then tell them how Orange health labs solves the issue of misdiagnosis with fresher blood and high-end certified labs
      • The a brand recall or association , For e.g never get misdiagnosed with orange health labs.
  • Soon-to-be Mom : Should be targeted depending on their purchase behaviour. Likely to spend videos on parenting , baby health and care videos.
    • Overview of the Ad:
      • Start with "Your Journey to Motherhood Begins Here" and show a happy women getting its 1st positive Orange health labs pregnancy test report.
      • And then From Bump to Baby: Our Care Continues Illustrate the continuity of your services by showing an expectant mother during pregnancy and then cradling her newborn, indicating your support throughout the journey.
      • It should be a happy and calming ad with no persuasion or pain points, just on the theme of we as Orange health labs caring for the mother and baby and celebrating their every milestone together.



Referral Channel :

The AHA moment : Why someone will Refer Orange Health Labs?


During the user research, all the active user showed some interest to refer our product to their friends and family member.

After talking to them a bit more, the insight we get is that there are 2 AHA moment for them.

1 > When they were able to book the slots at their convenient time , ie the availability of slots.

2 > When the technician who came to their home was professional, clean and respectful to the customer. Also he/she was aware that he/she is at someone else home and acted respectfully.


Apart from these insights , users fairly associates our products with accuracy and connivence.


Below is the the typical user journey of our product satisfied customer :

Screenshot 2023-11-04 at 2.28.08 PM.png

However looking at the journey , a user is most likely to refer after he/she has received the service.

"Guardian Coins: Our Gratitude for Your Health Guardianship"

"Welcome to 'Guardian Coins: Our Gratitude for Your Health Guardianship' –where your trust in us is not just valued; it's celebrated. We're your partners in health, and we want to show our appreciation in a special way. Our innovative referral program is designed to honor the trust you've placed in us to safeguard the well-being of your family.

As you embark on this journey with us, you're not just a customer; you're a 'Health Guardian,' and we're excited to reward your commitment to your loved one's . Let's embark on this rewarding health adventure together!"



How it works:

  1. Refer your Friend or family : Share the link/code with friends, family, and anyone who you want to protect from any illness. We will remember to whom you have send the referral link.
  2. Friend/Family book a slot for health checkup: They can book the slot whenever they require the checkup. We will not push any other referral notification to your friends and family.
  3. Friend and family is prompted to use the referral code shared by you to get a maximum of 5% discount.
  4. Friend and family completed the transaction Guardian Coins will be added to your account which you can redeem later.
  5. You can redeem your coins either on price reduction on upcoming tests or any exclusive discounts.
    1. Each Guardian coin = Rs.50
    2. You can redeem your coins or any test or checkup , at max 10% of the price.
  6. Here we wont gamify the incentive as it may look we are incentivizing someones ill-health.
  7. This referral program will be more of a pull strategy rather than push.


When to show the referral program?

Validating the AHA moment:

  1. Once the user checkup or test is completed by the technician (e-medics) , send them communication via Email and WhatsApp to leave a review.
  2. If they give a 4-5 star rating, show them the referral screen. E.g.. "Be the Health Guardian They Deserve – Refer a Friend, Secure their Wellness!”
  3. If they give us 3 or less, display an empathetic message and ask for the feedback. E.g. “We’re sorry you had a bad experience. Tell us more?”


How user will discover the referral program?


Let's say user wants to find the referral program without any prompt or notification from us. Most probably these will be our power users and regularly access the "Profile" to view the reports.
So we can place the referral programs like below :

Screenshot 2023-11-04 at 5.24.27 PM.png


And if the user is a very frequent user , we can add the referral program on the home page as well.
Screenshot 2023-11-04 at 5.33.55 PM.png

Track your Referrals :

Once user is in Profile > Referral , user can see a quick overview of his/her referrals which will includes:

  1. Platform Currency : Total Guardian Coins Earned , Total Guardian coin redeemed , Total Guardian coin to be redeemed.
  2. Tracking of the referrals : Total number of referrals, total number of signups, total number of checkup completed.
  3. Call to action for ‘Refer + Earn’ : tell the user a key action that needs to be performed, along with the coins that he/she can earn.
  4. Share referral through One-to-One Platform: Call to action will include a quick share access to users one-to-one communication platform.
  5. A generic link if user wants to share it outside the integrated platform.












































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