generic pharmacy

8/19/2019 Generic Pharmacy

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1. Background of the Case

1.1 Brief Highlight

The Generics Pharmacy (TGP) advocates for quality and affordable drugs

accessible to all Filipinos. It was in !!" that TGP tapped Fran#orp to facilitate

its e$pansion. %ithin three&and&a&half years' it has e$panded to '!!! outlets'

covering both provinces and chartered cities.

The Generics Pharmacy (TGP) initially started as a family enterprise in

*' which was involved in pharmacy importation and distribution. +s the

Generic ,rug law was passed in - the company decided to sell generic drugs

primarily to government hospitals. TGP is the first hugely successful for&profit

pharmacy distribution system organied along the lines of a franchise networ/

that caters to the poor. The combination of the for&profit motive with concern for

catering to the needs of the poor ma/es TGP truly innovative. It means that a

sustainable mar/et can be organied along the health care needs of the poor'

and that the poor are not always the beneficiaries of dole&outs that conventional

wisdom often ma/es them out to be. It has always been assumed in many placesthat only subsidied pharmacy supplies from the government can solve the

equity problem pharmacy in developing countries. TGP proves this ideology

wrong. TGP is a purely&for&profit enterprise that brings affordable drug supplies to

poor households in urban and rural areas. It does this far' far better than any

government program' or any subsidied program for that matter. TGP opened its

first franchise in Taft +ve' Pasay #ity. The goal of TGP along with Fran#orp is to

ma/e generic medicines more available to a greater number of the population at

the soonest possible time. It then became the first generics retail pharmacy to

franchise in the Philippines. +s of now' The Generic Pharmacy has over a

thousand branches nationwide. It carries on with its vision to hit !!! or more

strong outlets by !0.

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1.2 Market Situation in Terms of Competition

The Generic Pharmacy1s target mar/et consists of Filipinos who want to

achieve a thrifty lifestyle. Those who are budget conscious' who wants to save

money and cut their e$penses but does not want to miss out quality. #onsidering

that fact that branded medicines were high priced in the previous years and

ma2ority of Filipino belong in the middle and lower class.

In the Philippines' the mar/et for generic drugs is very small' around 0

percent (03) of the total pharmaceutical mar/et. The preference for most

Filipinos is still branded drugs. This mentality needs to be altered to further

e$pand the mar/et for generic drugs.

4ost private retail pharmacies sell ! percent (!3) branded and !

percent (!3) generic drugs but The Generics Pharmacy is !! percent (!!3)

generic drugs which ma/es it unusual and challenging. The outlet is poised to

ta/e away some of the customers of the e$isting bigger store.



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1.3 Brand Diagnosis

1.3.1 !s of The "enerics !harmac#

!roduct

• The Generics Pharmacy5s product line consisted of 60 products.

• 7ach product and pac/aging contained the The Generics Pharmacy5s

logo.

!rice

The Philippine government mandated that pharmaceutical companies in

the country cut the prices of the ma2or drugs by 0!3.

Government mediated access price indicated that it would continue to

e$pect price cuts or lowering the price for the additional product in the

future.

!lace

• The Generics Pharmacy has !!! franchises.

• The Generics Pharmacy operated one central warehouse' one company&

owned retail store and one pac/aging and forwarding center.

• 8inety percent (!3) of The Generics Pharmacy franchises were

standalone outlets located near mar/ets' hospitals' or large drug stores.



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!romotion

• The Generics Pharmacy' in its quest to popularie generic drugs' initially

/ept wholesale prices low to encourage the widespread acceptance and

use of generic drugs by both large&scale user and the public.

• The Generics Pharmacy vowed not to spend on unnecessary advertising.

• The increased public&sector activity to promote generic pharmaceuticals

helped The Generics Pharmacy to raise awareness of their business in

one way or another.

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1.3.2 !roducts

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1.3.3 Ser%ices

&ree Blood !ressure Check

Free blood pressure chec/&ip at selected branches of The Generics Pharmacy.

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&ree Medical Check(up

Free medical chec/&up at selected branches of The Generics Pharmacy.

Blood Sugar Monitoring

Php 0 blood sugar chec/&up at selected branches of The Generics Pharmacy.

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Deli%er#

The Generics Pharmacy partners with #ity ,elivery to bring our quality medicine

straight to your home.

Call(*(Dok

Free medical consultation. 9ou can call any time any day to tal/ to our medical

e$perts.

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1.3. &ranchise

The Generic Pharmacy is offering unit franchises for as low as Php

6!!'!!!.!! to Php -!!'!!!.!! inclusive of franchise fee. The franchise is

available in two formats:

Solo or ,-press + new pharmacy located near mar/ets' hospitals' big drugstores' or inside

malls.

Tandem or n(store

+ pharmacy located within or inside a medical clinic or hospital' or inside

e$isting stores li/e convenience stores' supermar/ets' groceries'

department stores' and cosmetic stores.

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2. Time &rame

&e0ruar# 2+ 21 The Generics Pharmacy and ;uya ;im +tiena

partner to promote generic medicine awareness.

anuar# 31 213The Generics Pharmacy ocial Progress.

anuar# 2$ 213 The Generics Pharmacy #ommitted to enhancing the

public1s quality of life.

The Generics Pharmacy bags citations in

7ntrepreneur Franchise +wards !

4o%em0er 1 212 The Generics Pharmacy Franchisees win F,+ ?uality

>eal +wards.



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*pril 1/ 212 The Generics Pharmacy conducts Internship

Program.

4o%em0er 2$ 211 The Generics Pharmacy %ins =est @ealth 4ar/et

Innovation +ward.

Septem0er 2+ 211 The Generics Pharmacy +warded as 4ost

Autstanding Filipino.

Septem0er 1+ 21 @ealthcare is a phone call away at The Generics

Pharmacy.

3. dentif#ing the !ro0lem

@ow can The Generics Pharmacy in the PhilippinesB

The Generics Pharmacy can do well in the mar/et but the presence of branded pharmaceutical companies is their biggest problem. + lot of consumers

prefer buying from branded pharmaceutical companies because of the quality

branded drugs has over generic drugs. The Generics Pharmacy needs to pay

attention and ta/e action to this /ind of problem to prevent the company from

going down. The Generics Pharmacy gives good services to their consumers but

without gaining consumer5s trust' they won5t be able to compete with branded

pharmaceutical companies.



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. Statement of 506ecti%e

.1 SM*7T 506ecti%e

to 0e a0le to attain a 0etter customer satisfaction rating compared to other

pharmaceutical companies and to 0e the leading pro%ider of 8ualit#

afforda0le and accessi0le generic medicines in the !hilippines.Specific

%hat is the specific tas/B

to 0e a0le to 0uild the trust of the

consumers

Measurable

%hat are the parametersB

,%aluation should 0e done e%er# 9eek

to kno9 the things that should to 0e

impro%e more and those that should

0e remain.

*chievable

Is the tas/ attainableB

:es The "enerics !harmac# has the

capacit# to compete against 0randedpharmaceutical companies.

7ealistic

+re resources sensibleB

:es The "enerics !harmac# has the

resources needed to achie%e this

o06ecti%e.

Time&=ound

4o%em0er 21$ ; Decem0er 21'



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>tart and end datesB

$. *reas of Consideration

$.1 S


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$.2 Competitor=s *nal#sis

!rimar# Competitors

The company was established in *0

with a single drugstore. It is the

country5s leading trusted and caring

health and wellness partner' providing

the widest range of branded and

generic medicines' as well as a

complete line of healthcare and

personal care products' including

medical devices' and basic everyday

needs. Their tagline is

D8a/asisigurado gamot ay laging

bagoE.

The company was established in !!to address the need for quality and

affordable medicines' and promote the

use of generic drugs in the conte$t of

high prices of medicines in the

country. The company claims that



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their central warehouse and stores are

all air condition in order to maintain

potency. It is a ma2or competitor of

The Generics Pharmacy because

aside from its well patronied by

ma2ority of the people' the drugstore

also sells generic medicines primarily.

Their tagline is DGamot at >erbisyo

maaasahan ditoE.

Secondar# Competitor

The company was established in 0

in #ebu #ity' It is one of the

Philippines5 top pharmaceutical

retailers with over - branches in

strategic locations all over the country'

providing easy access to quality and

affordable medicines for its numerous

customers. Their motto is ;>4 or

D;ay >arap 4agmahalE.

The company was established in "

as a small business venture engaged

in the retail of #hinese herbal

medicines' located in 8aga #ity'

Philippines. Their motto is

D4apag/a/atiwalaang TunayE.

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$.3 Marketing *nal#sis

The

"enerics

!harmac#

Mercur#

Drugs

"enerika

!harmac#

7ose

!harmac#

South Star

Drug

*fforda0le"ood

>ualit#

Con%enien

t ?ocation

&ree

Ser%ice

2 Hours

5peration

@alue Card

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$. &actors of !ro0lem

%e have identified ma2or competitors of The Generics Pharmacy which

are: 4ercury ,rugs and Generi/a ,rugstore. %ith these competitors' we shall

address the health needs of the people by providing a complete range of quality

generic medicines and healthcare products and services. %e shall wor/ towards

our common goal of profitability and growth in fulfillment of our mission to our

partners' suppliers and employees.

'. *lternati%e Courses of *ction

'.1 The# should focus on ad%ertising their products so the# can pro%e

the consumers that generic drugs are relia0le and effecti%e.

!75S

• They will be more aware to the possible mar/et. 7specially those who can

afford to buy branded drugs.

C54S

• It is easy to contrast by spreading false facts.

'.2 The# should make the decision of going upstream 0# manufacturing

their o9n products instead of depending on imports from other

foreign pro%iders of pharmaceutical products.

!75

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• They will have their own factory for ma/ing their products' so they will no

longer depend on imports from foreign countries.

C54S

• It is a ris/y move because they have never tried manufacturing their own

products' and by implementing this might be costly.

'.3 !romote The "enerics !harmac# 0# ma6or sponsoring in tele%ision

sho9As or gi%ing promo on online on radio and or on tele%ision.

!75S

• The company will attract more customers because of their promo. This will

be an added e$posure and promotion to the company.

C54S

• >ponsoring is already used by the other competitors.

'. mpro%e the ser%ices 9hich satisf# the consumer=s securit# and

safet#.

!75S

>atisfaction guaranteed.

C54S

4ore money and time consuming.

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). Conclusion and 7ecommendations

).1 Conclusion

Therefore' we conclude that the best course of action to ta/e is by

improving the service which satisfies the consumers. %ith this' the

company can further develop relationship with its consumers without too

much of an increase in cost. Though all the other options can also improve

customer satisfaction' what really leaves a mar/ on the public is the type of

service the company can provide and that5s what urges them to trust the

company.

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).2 7ecommendations

).2.1 They must understand the needs and concerns of the consumers. They

must be open&minded about what the consumers thin/. This can be done by

doing surveys and creating a website where consumers can voice out their

concerns and feedbac/s.

).2.2 The employees should be screened and well&trained. They should be

competent and /now all information regarding the medicines so that when

consumer as/s' they can confidently answer them and consumers will have a

good impression.

).2.3 They must be responsive to their consumers. In phone calls or emails'

they must answer the phone or respond to the email immediately. They must setup an effective communication system to respond immediately to inquiries.

).2. They must thin/ from the consumer5s point of view. They must /now

what5s best for their consumers and ma/e improvements. >eeing things from a

consumer5s point of view will /eep their e$perience a positive one.

).2.$ They must leave a good impression for the consumers. It can be done

through improvements of equipment' facilities' employees that treat each

consumer nicely.


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