Group 2 generics pharmacy v2 (2003)

10 Step Marketing Plan forGenerics Pharmacy

Group 2

July 1, 2011

genericspharmacyv54.blogspot.com

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.

Disclaimer


Step 1 to 5

1. Identify your target (PTM)2. What do they need, want and

demand (NWD)3. What are their choices

(competitors)4. Where is the opportunity (Gap)5. How big is the market (3 Cs)


1. The Generics Pharmacy PTM ages 18-65 years old, B, C, D & E class, no specific status

2. Consumers need, want & demand is a good quality medicine at an affordable price.

3. Can choose Mercury Drug store, South Star Drug Store, Botika ng Bayan & Hospital Pharmacies

4. Offers quality and affordable medicines that competes with the accessibility

5. The market size is 2 billion and 55% is the market share of Generics Medicines

Steps 1 to 5

Consumers Needs Medicine but in Lower Price


Step 6 to 106. Product7. Price8. Promo9. Place10. Generic winning strategy of

Mix


6. Affordable generic medicine more available to a greater number of the population at the soonest possible time.

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

8. Uses TV, PRs, events and experiences and word of mouth

9. Location near Mercury Drug stores and rival stores, nationwide

10. Niche Marketing

Steps 6 to 10

Generic medicines has the Same Strength as Branded Medicines but in Lesser Cost


1. Generics Pharmacy’s Primary Target Market

Demographics:Age range – 18 to 65 years old

Sex – male / femaleSocial class – B, C, D, and E

Marital status – no specific status



Lifestyle: (those 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.



Behavior:Products sold in Generics Pharmacy are medicines. After several takes or

what is prescribed by the doctor, consumers might be well or might

feel better.


2. Consumers wants a good quality medicine at affordable price

10

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

I need cheaper medicine with the same quality of branded equivalents

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

I want a good quality medicinebut at a lower price


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 Generics Pharmacy’s competitors

• Direct: Mercury drug, South Star Drug,

BOTIKA NG BAYAN

• Indirect: hospital pharmacies, alternative treatment, clinic

• Variables: quality of the drugs, price, customer perception and accessibility


The Generic Pharmacy is perceived by consumer as a store that provides good quality with low price

Price/ Perceived Quality Matrix

Average Above Average

Excellent

High Price

Low Price

Perceived Quality vs Price Matrix

as of 2011


http://rds.yahoo.com/_ylt=A2KJkK07AfFN8gQAQaqJzbkF;_ylu=X3oDMTBpZTByOGFiBHBvcwMyBHNlYwNzcgR2dGlkAw--/SIG=1i7r9te5i/EXP=1307668923/**http:/images.search.yahoo.com/images/view?back=http://images.search.yahoo.com/search/images?p=mercury+drug+store+logo&ei=utf-8&w=230&h=230&imgurl=www.filgifts.com/images/product/small/Mercury-Drug.jpg&rurl=http://www.filgifts.com/view.asp?xitem=Mer005.1&size=9KB&name=by+Mercury+Drug+...&p=mercury+drug+store+logo&oid=9a9b9381c13d32d5c6d7c89d8d1e3082&fr2=&no=2&tt=37&sigr=11f5obecb&sigi=11mmpk73d&sigb=12fro64ml&.crumb=PY9ETxAMVfo

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

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 Generics Pharmacy

South Star Drug Store

Generika drugstores

Mercury Drug Store

Lower price

Good Quality

Convenient location

Free service- dial a doctor/blood pressure/consultation/delivery

Open 24 hours

Value card


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.


• 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

The Generics Pharmacy has more opportunity to…


5a. Market size using Competitor Data

• $2 Billion Pharmaceutical market in the Philippines

– $700 Million (35%) - Generics Medicines

– $1.3 Billion (65%) - Branded Medicineshttp://growinginclusivemarkets.org/media/cases/Philippines_RiteMed_2008.pdf


5b. Market size using Government Data

• 6 out of 10 Filipinos are now opting for generic medicines over the more expensive branded counterparts.

http://pinoybusiness.org/2009/09/26/more-filipino-now-buys-generic-drugs-says-doh/

$2 Billion Pharmaceutical market in the Philippines

$1.2 Billion (60%) - Generics Medicines

$800 Million (40%) - Branded Medicines


• Recent SWS survey said that Filipinos buying generic drugs increased from 47% in 2003 to 54% in 2006 to 55% in 2008

5c. Market size using SWS Survey

2003 SWS Survey

49% use generic medicines

2008 SWS Survey


2006 SWS Survey



5. Decide on market size in pesos, not in number of people

1. Competitor data= $ 700 Million

2. Customer Usage data = $1.2 Billion

3. SWS Survey = $ 1.1 Billion


6a. Generics Pharmacy


6a. Generic Pharmacy vs. competition


6b. Generic Pharmacy Product Description

• We believe that health is not a privilege, but a basic right of every Filipino.

• Mabisa na, Matipid pa!• The goal is to make

affordable generic medicine more available to a greater number of the population at the soonest possible time.



Neozep 500mg- 4.00 Coldzep 500mg- 3.25

Biogesic 500mg- 4.00 Fevergan500mg- .60Headache

Colds

Price Difference

3.40

Price Difference

.75


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

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

TGP Wants to Serve Filipino First to Address…

4 to 18x

90% of Filipinos


7. Price Branded

PriceGenerics

PriceSavings

(%)Hypertension Atenolol 50mg 36.00 4.50 88

Clopidogrel 75mg 61.00 23.00 62

Felodipine 5mg 49.00 36.00 62Losartan 50mg 48.00 12.00 75

Metoprolol 50mg 5.00 2.60 48

Cholesterol

Atorvastatin 10mg 34.00 20.50 40

Simvastatin 10mg 22.00 7.00 68

Fever & Pain Mefenamic Acid

500mg 29.00 1.50 95

Paracetamol + Ibuprofen 8.00 2.40 70

Cough

Ambroxol 30mg 14.00 1.50 89

Bromhexine 8mg 10.00 0.06 99

Carbocisteine 500mg 11.00 2.50 77

Branded Price

Generics Price

Savings (%)

Asthma Montelukast 4mg 34.00 17.75 48Salbutamol 2mg 7.00 0.50 93Terbutaline 2.5mg 14.00 1.00 93

Diabetes Glimepiride 2mg 35.00 13.00 63

Metformin 500mg 12.00 1.70 86

Anti-Bacteria

Amoxicillin 500mg 11.00 3.50 68

Cefalexin 500mg 45.00 5.60 88Co-Trimoxazole 800/160mg 37.00 2.10 94

Doxycycline 100mg 132.00 2.00 98

Ofloxacin 400mg 84.00 17.00 80Allergy

Cetirizine 10mg 44.00 8.00 82Loratadine 10mg 20.00 7.00 65

Diarrhea Loperamide 2mg 15.00 1.30 91


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

1

3 5

4

2


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


b

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

TGP Took Civic Volunteerism by Heart

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

Drug store.


TGP tap the ff:- Schools– Health Centers – Local Organizations

Massive Campaign on Generic Education in the Community

“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.


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

consumers

TGP also offers Free Dental consultations & Free

Delivery


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.

Free Medical Consultation to the Public

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


Commercials stating where they can buy the product

Product Commercials endorsing Mercury Drug Store


• Similar to Mercury Drug Store’s Suki Card

South Star Drug Store’s Tipid Kard


• 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.

Difference of The Generics Pharmacy to other Drugstores


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

1. The Generics Pharmacy PTM ages 18-65 years old, B, C, D & E class, no specific status

2. Consumers need, want & demand is a good quality medicine at an affordable price.

3. Can choose Mercury Drug store, South Star Drug Store, Botika ng Bayan & Hospital Pharmacies

4. Offers quality and affordable medicines that competes with the accessibility

5. The market size is 2 billion and 55% is the market share of Generics Medicines


Summary

6. Affordable generic medicine more available to a greater number of the population at the soonest possible time.


8. Uses TV, PRs, events and experiences and word of mouth

9. Location near Mercury Drug stores and rival stores, nationwide

10.Niche Marketing


10 Step Marketing Plan forGenerics Pharmacy

Group 2

July 1, 2011


Health & Medicine

Group 2 generics pharmacy v2 (2003)