de Vera 10 step marketing plan

10 STEP
Marketing Plan for
THE GENERICS PHARMACY

Windell G. de Vera
July 2012

www.windelldevera.blogspot.com

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.

Steps 1 to 5
Effective and Affordable
medicines for Classes D and E
1. PTM of TGP is Class D and E
2. Who want effective but affordable
medicines
3. Can choose Generika Drugstore or Mercury
Drug
4. Gap is Mercury sells branded and expensive
medicines and Generika has few stores.
5. The market size is Php 120 Billion and
the niche of TGP is Php 25 Billion

Steps 6 to 10
The marketing mix & strategy
of TGP
6. TGP sells effective and affordable medicines
7. TGP is priced 30-50% lower than branded
medicines
8. Uses TV, events and experiences and word
of mouth
9. Distributed nationwide
10. Uses niche marketing


1. The PTM of TGP are
classes D and E

 Those in social classes D and E
 Those who are sick which includes
children and old people
 Those who need healing from
particular sickness or want to prevent
getting sick


Describe your PTM needs
Self-Actualization
I am happy if I am Needs
healthy and not sick. (Self-Development
& Realization)

Esteem Needs
(Recognition, Statu
s)

Social Needs (sense of
belonging, love)

I want to be healthy and to be Safety Needs (security, protection)
healed from sickness.

Physiological needs (food, water, shelter)

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

6

2. The needs, wants &
demands of Filipinos
regarding medicines
Health is a safety need for everyone and it is important
that one is not sick or can be healed from sickness. A
person is happy if healthy and not sick.

The products of TGP offer an effective like branded
medicines at affordable prices as wanted by most
consumers.

The demand of the majority of Filipinos to have an
access to quality medicines at lower prices is
addressed by TGP with its effective and affordable
medicines.


3a. Competitors of TGP

 Direct: Mercury Drug, Generika
Drugstore, South Star Drugstore
 Indirect: Government Health
Centers, online drugstores
 Variables: Price, accessibility, product
endorser, promise of effective and
affordable medicines


3b. TGP is perceived to offer
quality medicines at cheap price
as of 2012
Price/ Low Average Above Excellent
Quality Quality Average Quality
Quality Quality
Matrix
High
price

Low
Price


TGP niche positioning with as of 2012

quality and affordable medicines
Benefit Positioning vs. Brand Matrix
Functional The Generics The Generika Mercury Drug
Benefit Pharmacy Drugstore
Lower Price

Good Quality

Accessibility

Free Service

Value Card

Open 24 hours


4. TGP positions strongly in a
niche market opportunity

The marketing opportunity of TGP is the
lower price and accessibility.
Its prices are lower than Mercury Drug
and it is more accessible than Generika
Drugstore with its 1,300 stores.
It is open to franchising and it needs less
capital compared to others.


5a. Pharmaceutical market is
estimated to be Php 120 billion
1. According to a study, the pharmaceutical
market is Php 120 billion
-Php 78 billion (65%) – Branded medicines
-Php 42 billion (35%) – Generic medicines
2. Mercury Drug claims majority of the branded
medicines and a portion of the generic.
3. Generika Drugstore has 25% of the generic
medicines based on the number of stores.
References:
http://www.tripleiconsulting.com/main/philippines-investment-resources/value-
propositions/philippines-pharmaceutical-industry
http://growinginclusivemarkets.org/media/cases/Philippines_RiteMed_2008.pdf


5b. The current market share
of TGP is Php 25 billion

1. The claimed market share of TGP is
60% or an estimate of Php 25 billion.

1. The total market share of the generic
medicines is Php 42 billion.


5c. The market size based on
usage is around Php 120 billion

If a household spends an average of Php
2,000 a year for medicines (branded
and generic) and there are 60,000,000
households in the Philippines, the total
market share is Php 120 billion.

Php 2,000 x 60 m = Php 120 billion


5. Pharmaceutical market is Php
120 billion and the share of TGP
is Php 25 billion

1. Competitor data= Php 120 billion
(branded and generic)
2. Company data = Php 25 billion
(generic only)
3. Customer Usage data = Php 120
billion
4. (branded and generic)

6a. TGP stores


6a. TGP vs. competitors


6b. TGP product

The vision of TGP is to offer effective but
affordable medicines to all Filipinos.
With more than 1,300 branches
nationwide, it gives the masses the
chance to avail of generic medicines
that are as effective as branded
medicines but at lower price.


7. TGP prices is 30-50% lower
than branded medicines

Branded Generic
Biogesic 500 mg 500 mg
Price: Php 4.00 Php 0.60
Price difference: Php 3.40 or 80% cheaper


7. Price comparison
Branded Generics Savings Branded Generics Savings
Price Price (%) Price Price (%)
Hypertension Asthma
Atenolol 50mg 36.00 4.50 88 Montelukast 4mg 34.00 17.75 48
Clopidogrel 75mg 61.00 23.00 62 Salbutamol 2mg 7.00 0.50 93
Terbutaline 2.5mg 14.00 1.00 93
Felodipine 5mg 49.00 36.00 62
Losartan 50mg 48.00 12.00 75 Diabetes
Glimepiride 2mg 35.00 13.00 63
Metoprolol 50mg 5.00 2.60 48
Cholesterol Metformin 500mg 12.00 1.70 86
Atorvastatin 10mg 34.00 20.50 40 Anti-Bacteria
Amoxicillin 500mg 11.00 3.50 68
Simvastatin 10mg 22.00 7.00 68
Fever & Pain Cefalexin 500mg 45.00 5.60 88
Mefenamic Acid Co-Trimoxazole
29.00 1.50 95 37.00 2.10 94
500mg 800/160mg
Paracetamol + Doxycycline 100mg 132.00 2.00 98
8.00 2.40 70
Ibuprofen
Ofloxacin 400mg 84.00 17.00 80
Cough
Allergy
Ambroxol 30mg 14.00 1.50 89
Cetirizine 10mg 44.00 8.00 82
Bromhexine 8mg 10.00 0.06 99 Loratadine 10mg 20.00 7.00 65
Carbocisteine Diarrhea
11.00 2.50 77
500mg Loperamide 2mg 15.00 1.30 91


8a. TGP uses TV ads, events and
experiences and word of mouth


8a. TGP promotions include
stories of cheap yet effective
generic medicines


8a. TGP in talk shows and
business shows


8b. Competitor’s promo


9. TGP is located in public places
and near big drugstores

 TGP products are available in
 Public places like public markets and
hospitals
 Nationwide (1,300 branches)
 Over the counter transactions


10. The winning strategy of TGP
is its effective and cheap
medicines

The 3 strategies are being used by TGP:
 Low Cost Producer of Generic Drugs
 Supply and Distribution Leverage with its
1,300 stores nationwide
 Niche of Classes D and E


Steps 6 to 10
The marketing mix & strategy
of TGP
6. TGP sells effective and affordable
medicines
7. TGP is priced 30-50% lower than branded
medicines
8. Uses TV, events and experiences and
word of mouth
9. Distributed nationwide
10. Uses niche marketing

10 STEP
Marketing Plan for
THE GENERICS PHARMACY

Windell G. de Vera
July 2012

www.windelldevera.blogspot.com 29

de Vera 10 step marketing plan

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Similar a de Vera 10 step marketing plan

Similar a de Vera 10 step marketing plan (20)

Último

Último (20)

de Vera 10 step marketing plan