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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 2007 that TGP tapped FranCorp to facilitate its expansion. Within three-and-a-half years, it has expanded to 1,000 outlets, covering both provinces and chartered cities.

The Generics Pharmacy (TGP) initially started as a family enterprise in 1949, which was involved in pharmacy importation and distribution. As the Generic Drug law was passed in 1989 the company decided to sell generic drugs primarily to government hospitals. TGP is the first hugely successful for-profit pharmacy distribution system organized along the lines of a franchise network that caters to the poor. The combination of the for-profit motive with concern for catering to the needs of the poor makes TGP truly innovative. It means that a sustainable market can be organized along the health care needs of the poor, and that the poor are not always the beneficiaries of dole-outs that conventional wisdom often makes them out to be. It has always been assumed in many places that only subsidized 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 subsidized program for that matter. TGP opened its first franchise in Taft Ave, Pasay City. The goal of TGP along with FranCorp is to make 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. As of now, The Generic Pharmacy has over a thousand branches nationwide. It carries on with its vision to hit 2000 or more strong outlets by 2015.

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1.2

Market Situation in Terms of Competition

The Generic Pharmacy's target market consists of Filipinos who want to achieve a thrifty lifestyle. Those who are budget conscious, who wants to save money and cut their expenses but does not want to miss out quality. Considering that fact that branded medicines were high priced in the previous years and majority of Filipino belong in the middle and lower class.

In the Philippines, the market for generic drugs is very small, around 15 percent (15%) of the total pharmaceutical market. The preference for most Filipinos is still branded drugs. This mentality needs to be altered to further expand the market for generic drugs.

Most private retail pharmacies sell 90 percent (90%) branded and 10 percent (10%) generic drugs but The Generics Pharmacy is 100 percent (100%) generic drugs which makes it unusual and challenging. The outlet is poised to take away some of the customers of the existing bigger store.

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1.3

Brand Diagnosis

  • 1.3.1 4 Ps of The Generics Pharmacy

Product

The Generics Pharmacy’s product line consisted of 965 products.

Each product and packaging contained the The Generics Pharmacy’s

Price

logo.

The Philippine government mandated that pharmaceutical companies in

the country cut the prices of the major drugs by 50%. Government mediated access price indicated that it would continue to

Place

expect price cuts or lowering the price for the additional product in the future.

The Generics Pharmacy has 1000 franchises.

The Generics Pharmacy operated one central warehouse, one company-

owned retail store and one packaging and forwarding center. Ninety percent (90%) of The Generics Pharmacy franchises were standalone outlets located near markets, hospitals, or large drug stores.

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Promotion

The Generics Pharmacy, in its quest to popularize generic drugs, initially

kept 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

Products

1.3.2 Products 5 | T h e G e n e r i c s P
1.3.2 Products 5 | T h e G e n e r i c s P

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1.3.3 Services
1.3.3
Services
1.3.3 Services Free Blood Pressure Check Free blood pressure check-ip at selected branches of The Generics

Free Blood Pressure Check

Free blood pressure check-ip at selected branches of The Generics Pharmacy.

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Free Medical Check-up Free medical check-up at selected branches of The Generics Pharmacy. Blood Sugar Monitoring

Free Medical Check-up

Free medical check-up at selected branches of The Generics Pharmacy.

Free Medical Check-up Free medical check-up at selected branches of The Generics Pharmacy. Blood Sugar Monitoring

Blood Sugar Monitoring

Php 25 blood sugar check-up at selected branches of The Generics Pharmacy.

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Delivery The Generics Pharmacy partners with City Delivery to bring our quality medicine straight to your

Delivery

The Generics Pharmacy partners with City Delivery to bring our quality medicine

straight to your home.

Delivery The Generics Pharmacy partners with City Delivery to bring our quality medicine straight to your

Call-A-Dok

Free medical consultation. You can call any time any day to talk to our medical

experts.

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1.3.4 Franchise

The

Generic Pharmacy is offering

unit franchises

for

as

low

as

Php

600,000.00 to Php 800,000.00 inclusive of franchise fee. The franchise is

available in two formats:

Solo or Express

A new pharmacy located near markets, hospitals, big drugstores, or inside malls.

Tandem or In-store

A pharmacy located within or inside a medical clinic or hospital, or inside existing stores like convenience stores, supermarkets, groceries, department stores, and cosmetic stores.

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  • 2. Time Frame

February 28, 2014

January 31, 2013

January 25, 2013

November 14, 2012

The Generics Pharmacy and Kuya Kim Atienza partner to promote generic medicine awareness.

The Generics Pharmacy Joins Philippine Business for Social Progress.

The Generics Pharmacy Committed to enhancing the public's quality of life.

The

Generics

Pharmacy

bags

citations

in

Entrepreneur Franchise Awards 2012

The Generics Pharmacy Franchisees win FDA Quality Seal Awards.

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April 19, 2012

The

Generics

Pharmacy

conducts

Internship

Program.

November 25, 2011

September 28, 2011

The Generics Pharmacy Wins Best Health Market Innovation Award.

The

Generics

Pharmacy

Outstanding Filipino.

Awarded

as

Most

September 18, 2010

Healthcare

is

a

phone

call

away at The Generics

Pharmacy.

  • 3. Identifying the Problem How can The Generics Pharmacy in the Philippines?

The Generics Pharmacy can do well in the market but the presence of branded pharmaceutical companies is their biggest problem. A 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 take action to this kind of problem to prevent the company from going down. The Generics Pharmacy gives good services to their consumers but without gaining consumer’s trust, they won’t be able to compete with branded pharmaceutical companies.

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  • 4. Statement of Objective

    • 4.1 SMART Objective

to be able to attain a better customer satisfaction rating compared to other pharmaceutical companies and to be the leading provider of quality, affordable and accessible generic medicines in the Philippines.

Specific

to

be

able to

build the trust

of

the

What is the specific task?

consumers

 

Measurable What are the parameters?

 

Evaluation should be done every week to know the things that should to be improve more and those that should

be remain.

 

Achievable Is the task attainable?

Yes, The Generics Pharmacy has the capacity to compete against branded

pharmaceutical companies.

 

Realistic Are resources sensible?

Yes, The Generics Pharmacy has the resources needed to achieve this

objective.

 

Time-Bound

November 2015 – December 2016

 

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Start and end dates?

  • 5. Areas of Consideration

    • 5.1 SWOT Analysis

 

Strengths

Weaknesses

 

Has

quality

and

affordable

Some doctors/physicians prefer

medicines Has availability of medicines that

their patients branded medicines than generic ones

can cure severe diseases.

Manual inventory system

Has free services

The Generics Pharmacy are not 24/7 available

 

Opportunities

Threats

 

Provide promotional discounts and coupons to their loyal

Arising competitors offering the same type of business

consumers

Bad

image

for

the

generic

Provide more customer service

medicines in the Philippines

trainings for employees

Top

leading

Pharmaceutical

The Philippine pharmaceutical market is increasing.

companies

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  • 5.2 Competitor’s Analysis

 

Primary Competitors

 
 

The company was established in 1945

with

a

single

drugstore.

It

is

the

country’s leading trusted and caring

health and wellness partner, providing

the widest range of branded and

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

“Nakasisigurado

gamot

ay

laging

bago”.

 

The company was established in 2003 to address the need for quality and affordable medicines, and promote the use of generic drugs in the context 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

their central warehouse and stores are all air condition in order to maintain potency. It is a major competitor of The Generics Pharmacy because aside from its well patronized by majority of the people, the drugstore also sells generic medicines primarily. Their tagline is “Gamot at Serbisyo

 

maaasahan dito”.

 

Secondary Competitor

The company was established in 1952 in Cebu City, It is one of the Philippines’ top

The company was established in 1952 in Cebu City, It is one of the Philippines’ top pharmaceutical retailers with over 183 branches in strategic locations all over the country, providing easy access to quality and affordable medicines for its numerous customers. Their motto is KSM or “Kay Sarap Magmahal”.

 

The company was established in 1937 as a small business venture engaged

 
in the retail of Chinese herbal

in

the

retail

of

Chinese

herbal

medicines,

located

in

Naga

City,

Philippines. Their motto

is

“Mapagkakatiwalaang Tunay”.

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  • 5.3 Marketing Analysis

 

The

Mercury

Generika

Rose

South Star

Generics

Drugs

Pharmacy

Pharmacy

Drug

Pharmacy

Affordable

       

Good

         

Quality

Convenien

         

t Location

Free

         

Service

24 Hours

         

Operation

Value Card

   

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  • 5.4 Factors of Problem

We have identified 2 major competitors of The Generics Pharmacy which are: Mercury Drugs and Generika Drugstore. With 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. We shall work towards our common goal of profitability and growth in fulfillment of our mission to our partners, suppliers and employees.

  • 6. Alternative Courses of Action

6.1

They should focus on advertising their products so they can prove the consumers that generic drugs are reliable and effective.

PROS

They will be more aware to the possible market. Especially those who can afford to buy branded drugs.

CONS

It is easy to contrast by spreading false facts.

6.2

They should make the decision of going upstream by manufacturing their own products instead of depending on imports from other foreign providers of pharmaceutical products.

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They will have their own factory for making their products, so they will no longer depend on imports from foreign countries.

CONS

It is a risky move because they have never tried manufacturing their own products, and by implementing this might be costly.

6.3

Promote The Generics Pharmacy by major sponsoring in television show/s or giving promo on online, on radio and or on television.

PROS

The company will attract more customers because of their promo. This will be an added exposure and promotion to the company.

CONS

Sponsoring is already used by the other competitors.

6.4

Improve the services which satisfy the consumer’s security and safety.

PROS

Satisfaction guaranteed.

CONS

More money and time consuming.

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  • 7. Conclusion and Recommendations

7.1

Conclusion

Therefore, we conclude that the best course of action to take is by improving the service which satisfies the consumers. With 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 mark on the public is the type of service the company can provide and that’s what urges them to trust the company.

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7.2 Recommendations

7.2.1 They must understand the needs and concerns of the consumers. They must be open-minded about what the consumers think. This can be done by doing surveys and creating a website where consumers can voice out their concerns and feedbacks.

  • 7.2.2 The employees should be screened and well-trained. They should be

competent and know all information regarding the medicines so that when consumer asks, they can confidently answer them and consumers will have a good impression.

  • 7.2.3 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 set

up an effective communication system to respond immediately to inquiries.

  • 7.2.4 They must think from the consumer’s point of view. They must know

what’s best for their consumers and make improvements. Seeing things from a

consumer’s point of view will keep their experience a positive one.

  • 7.2.5 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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