10 step-marketing-plan-the generics pharmacy

10 STEP
Marketing Plan for
The Generics Pharmacy

Joan Soliven
July 2011

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Disclaimer
This 10 Step Marketing Plan is part of the mandatory
requirements of Prof. Remigio Joseph De Ungria’s
AGSB marketing management class.
The data included in this report are based on publicly
available data such as those on internet websites,
news, package declarations, public reports.
When appropriate, data are “masked” so as not to
create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
and facebook so that there is easier sharing among
students from different marketing classes.
http://joansoliven.blogspot.com/

Steps 1 to 5
Consumers Needs Medicine
but in Lower Price
1. The Generics Pharmacy PTM is male and female,
ages 0-80 above.
2. Who wants to buy proper medicine prescribed to
treat or prevent illnesses but at a lower price.
3. Can choose Mercury Drug store or South Star Drug
Store or other local drugstores
4. Gap is other stores offer higher price of medicines
5. The market size is 117 billion and 40% is the
market share of TGP.


Steps 6 to 10
Generic medicines has the Same
Strength as Branded Medicines
but in Lesser Cost.
6. Generic medicines are finished pharmaceutical
product having the same active ingredients, same
dosage form and same strength as the branded
medicine.
7. Price less than 30% to 80% less than branded
medicines
8. Uses TV, PRs, events and experiences and word of
mouth
9. Location near Mercury Drug stores and rival stores
10. Niche Marketing


1. The Generic Pharmacy caters to
the class of CDE market

 0 to 80 onwards, male and female,
CDE, mass)
 Single or married individuals who wants
to buy proper medicine
 Consumed to treat or prevent illnesses
but at a lower price.


2. Consumers wants a good quality
medicine at affordable price

I want a good quality medicine
but at a lower price

I need to buy medicine
whenever I’m sick or I need to
prevent myself from sickness

Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

6

2. Consumers need, want &
demand is a good quality
medicine at an affordable price.
Shoppers needs a store that offers good quality
medicine

Shoppers wants a medicine at a lower price

Shopper Demands:
Shopper looks for a store that offers good quality
medicine at a lower price.


3a. The Generic Pharmacy has
several competitors that offers
generic and branded medicines
Direct: Mercury Drug Store, Generika Generics, South
Star Drug Store, Watsons and other local drug stores.

Indirect: Doctors selling medicines, companies selling
medicines thru direct selling or telephone.

Variables: Quality of the product, brand, Price,
accessibility of drugstore to consumers.


The Generic Pharmacy is perceived by
consumer as a store that provides
good quality with low price
Perceived Quality vs Price Matrix
Price/ Average Above Excellent as of 2011
Average
Perceived
Quality Matrix

High Price

Low Price


Low prices are said to be the most important
factor for the consumers when buying a
product

80%

70%

60%

50%

40%

30%

20%

10%

0%

What factors are important to you when selecting a store?


Most of the Drugstores Positioning is
having a Good Quality Medicines
Benefit Positioning vs. Brand Matrix
Functional Benefit The South Star Generika Mercury Drug
Generics Drug Store drugstores Store
Pharmacy
Lower price
Good Quality
Convenient location
Free service- dial a
doctor/blood
pressure/consultatio
n/delivery
Open 24 hours
Value card

as of 2011

TGP Offers key Drivers of Satisfaction of
Drug Store Shoppers which are Lower Price,
Good Quality and Accessibility
Benefit Positioning vs. Brand Matrix
Functional Benefit The South Star Generika Mercury Drug
Generic Drug Store drugstores Store
Pharmacy
Lower price
Good Quality
Convenient location
Free service- dial a
doctor/blood
pressure/consultatio
n/delivery
Open 24 hours
Value card

as of 2011


4. The Generics Pharmacy positioning
is Niche Market Opportunity
The Generic Pharmacy is the only drugstore that
 offers quality and affordable medicines that
competes with the accessibility of Mercury
Drug Stores
 Open in franchising at a lower investment, all

its outlet except the very first are franchised.

Other Generic Drugstores wants to copy this
position.


The Generics Pharmacy has
more opportunity to…
 Open branches to the VISMIN region
where Mansons, Rose Pharmacy and
360 degrees reigns.
 Open 24 hours to provide for the
emergency needs of the consumers


5a. Pharmaceutical market is
117 billion
1. Pharmaceutical market – P117 billion
Drugstores Market Share
10%
Mercury Drug Store
50%
40% The Generics
Pharmacy
Other Drugstores

2. Mercury Drug Store has 700 outlets while
The Generics Pharmacy currently has 930
outlets and will open its 1000th store in
December.


5b. The Generic Pharmacy’s
current Market Share
1. TGP is around 40% of the total
pharmaceutical market – 47 Billion
2. TGP has 60% distribution vs Mercury
Drug Store.


5c. Shopper data indicates a
market size 146 Billion
 P 15 average spend per trip for a
medicine
 Visit the drugstore twice a week
 P 15x 2x 52 weeks x 94,013,200
million Filipinos = 146 Billion


5. Concluded that
Pharmaceutical market share
is 117 Billion
 Competitor Data = 117 Billion
 Company Data = 117 Billion
 Consumer Usage Data = 146 Billion


6a. The Generics Pharmacy locations
are near Mercury Drug Store or rival
stores

TGP is confident that consumers would
rather buy generics from them.

6 b. The Generics Pharmacy

 Located near Mercury drug stores and rival
stores.
 Currently has 943 stores, around 1000 stores
by end of the year.
 The store can be as small as 15 sqm to store
all generic lines.
 Open to franchisee at a P700,000 investment.


7. TGP medicines are 30% to 80%
lower than the branded medicines

Price Difference

3.40

Headache Biogesic 500mg- 4.00 Fevergan500mg- .60

Price Difference

.75

Neozep 500mg- 4.00 Coldzep 500mg- 3.25
Colds


TGP Wants to Serve Filipino First
to Address…

4 to 18x
 Higher cost of medicine sold in Phil which is now 4 to
18x higher than compared to other countries.

90% of Filipinos
 90% of Filipinos who failed to buy the proper amount
of medicine


TGP use Reference Pricing for Consumers
to Afford their Medicines

Generic Drugs save consumers an estimated $8
to $10 billion a year at retail pharmacies.


8a. The Generics Pharmacy used
Advertising, PR, Events & Experiences
& Word of Mouth

1

2

3 5
4


TGP Commercials are about Making
the Right Decisions of a Husband/Wife

One of the right decisions they made was by choosing medicines
from Generics Pharmacy


TGP had Several Interviews on
Business Talk Shows

TGP Took Civic Volunteerism
by Heart
TGP provided a fun-filled Family Day and Charity
services with the help of the local government and
key sponsors, namely

TGP believes that weaving-in and spreading positive values
to other companies makes them more than a competitive
Drug store.

Massive Campaign on Generic
Education in the Community

TGP tap the ff:
 Schools
 Health Centers
 Local Organizations

“People need to be enlightened. Generic medicines are as
effective as their branded counterparts because they are made
with the same active ingredients, same dosage form and same
strength but at a fraction of the cost,” Benjamin I. Liuson,
president of The Generics Pharmacy

TGP is Active in Supporting
Government’s Campaign

DOH "Compliance is Wellness" Campaign This
is compliance of pharmaceutical companies
with CGMP that gives assurance that generic
medicines at more affordable prices.


8a. TGP also offers Free Dental
consultations & Free Delivery

 Selected branches offer free dental
 Free delivery within Metro Manila
 Other incentives for loyal consumers


Free Medical Consultation
to the Public
TGP has “Dial-a-Doc” it is a
public service, consumers can
simply dial 732-3333,
available from Monday to
Saturday at 8:30 am to 5:30
pm.

TGP’s doctors prescribed generic medicines
that they can conveniently buy at the store.


TGP Promotes through Civic Services
and Government’s Campaign

A Way to Touch the Heart of Many Filipinos.


8b. Mercury Drug Store, TGP’s One the
Biggest Competitor are Active in
Promotions Online
 Offers monthly
discount coupons on
a certain product

 Suki Card which
also offers discounts


Mercury Drug Store’s Suki Card

They provides discounts on a certain period


Product Commercials endorsing
Mercury Drug Store

Commercials stating where they can buy the
product


South Star Drug Store’s
Tipid Kard

 Similar to Mercury Drug Store’s Suki Card


Difference of The Generics
Pharmacy to other Drugstores
 TGP claimed on one of their interviews that they
don’t do much marketing promotions to lower down
the cost of the medicines they sell.

9. TGP is located near Mercury
Drug Stores and Rival stores

 It is available
nationwide with
 Over the counter

 Delivery through

phone order
 Cash & Credit

 Transactions


10. The Generics Pharmacy
Winning Strategy

 Niche Strategy by providing
affordable medicines to many
Filipinos
 Supply and Distribution Leverage by

fast increasing no. of stores per year.


SUMMARY

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10 step-marketing-plan-the generics pharmacy

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