A Marketing Plan

For

“The Generic Pharmacy”

Presented by:

Co, Onelyn

Faderagao, Renelyn

Gallego, Ainie

Kurihara, Remelyn

Matugas, Ian

Moreno, Ella Mae

Ng, Dorothy

Romero, Regine

Section:

LAGBSBA-M51

Presented to:

Mr. Nelson Palmiano Jr.

In partial fulfilment of the requirements of Bachelor of Science in Business Administration Major

in Marketing Management at the Business and Management Department, ACCESS Computer

and Technical Colleges, Lagro, Quezon City for the 1st Semester SY 2018-2018.

DEPARTMENT OF BUSINESS AND MANAGEMENT

TABLE OF CONTENTS

I. APPROVAL SHEET

II. INTRODUCTION

i. History and Background

ii. Vision/Mission

1.. SITUATION ANALYSIS

1.1 Market Share

1.2 Sales Analysis

1.3 Competitive Analysis

1.4 Customer Analysis

1.5 SWOT Analysis

2. OBJECTIVES

2.1 Marketing Objectives

3. MARKETING STRATEGY

3.1 Market Segmentation Strategy

3.2 Targeting Strategy

3.3 Potential Strategy

3.4 Core Strategy

4. MARKETING PROGRAMS

4.1 Loyalty Programs

4.2 Customer Service and Support

DEPARTMENT OF BUSINESS AND MANAGEMENT

 4.3 Market Research

4.4 Trust and Credibility

5. IMPLEMENTATION PLAN

5.1 Benefits of Online Site and Ready to Pick up Orders

5.2 Marketing Plan

6. PERFORMANCE EVALUATIONS AND MONITORING

6.1 Sales Analysis

6.2 Profit and Loss Statement

7. FINANCIAL INFORMATION

7.1 Financial Capsule

7.2 Financial Assumption

7.3 Customers Assumptions

7.4 Budget

7.5 Direct Cost of Sales

7.6 Sales Projections

8. CONTINGENCY PLAN

8.1 Symptoms of Failure

8.2 Alternative Strategies

DEPARTMENT OF BUSINESS AND MANAGEMENT

 APPROVAL SHEET

This is to certify that the proposed Marketing Plan for

has been carefully evaluated by the Panel of Evaluators using the prescribed criteria.

This Marketing plan merited a rating of %.

Panel of Evaluators

Endorsed by:

Mr. Nestor Palmiano Jr.

Adviser

DEPARTMENT OF BUSINESS AND MANAGEMENT

 INTRODUCTION

History and Background

TGP started out as small pharmaceutical company in 1949. Acknowledging the dire need

for quality medicines but at affordable prices, the company focused on generic medicines to

provide the Filipino with a more affordable alternative. In 2001, the company ventured into retail,

starting only with a single outlet. As demand grew, the company decided to bring their medicines

more accessible to all the far reaches of the country through the FRANCHISING business

model. The historic year was 2007, starting with 20 outlets within Metro Manila.

Now as TGP, it revolutionized the entire Pharmaceutical healthcare industry and

pharmaceutical retail with its bold and different path for growth. Who would think that a

pharmacy or a drugstore with pure generic drugs rapidly take off? After the initial struggles and

birth pains, the healthcare landscape has embraced and accepted generic medicine as it has

proven to be effective and of high quality standards and yet, truly affordable for every Juan.

Now only on its 7th year in full pharmacy retail and franchising, TGP has dotted the entire

archipelago with more than strong 1700 outlets, making healthcare accessible to every Juan. As

expansion grew rapidly, so with the numerous awards and recognition TGP received from

various entrepreneurship, retail, franchising and marketing awards from various prestigious

retail, franchising, marketing, social entrepreneurship and management organizations. The most

recent award-the GAWAD GENERIC SUMMIT is made even more valuable by the fact that it

was conferred by our own Department of Health (DOH), in celebration of Philippines' 25th

DEPARTMENT OF BUSINESS AND MANAGEMENT

 Generic Summit celebrated last September 2013. This is solid proof that TGP is now well

accepted and trusted as source of quality and affordable generic medicines. The massive reach

and accessibility made TGP a friendly neighbor pharmacy outlet. TGP is now the largest retail

pharmacy chain in the country.

DEPARTMENT OF BUSINESS AND MANAGEMENT

 Vision

To be the drugstore of choice for safe, quality and affordable generic medicines through the

widest, most profitable franchise network nationwide; leveraging on complementary healthcare

services, integrated technology and processes, and the strength of our people and culture.

Mission

A Filipino Deserves Nothing Less for Less Cost

We understand the value of a healthy Filipino in making a happy home and in nation building.

Thus, we shall address the health needs of every Filipino by providing a complete range of safe,

quality, and cost-effective generic medicines and healthcare products and services. As we profit

from accomplishing this mission, we ensure our growth is shared among our franchisees,

partners, suppliers and employees.

DEPARTMENT OF BUSINESS AND MANAGEMENT

EXECUTIVE SUMMARY

1. SITUATION ANALYSIS

1.1 Industry Analysis

Sales

, 0, 0%

Generica
4.4M
19%

TGP
Southstardrug 4.9M
14M 21%
60%

Figure No. 1.1

This figure shows that Southstardrug has the highest percentage of sales which is 14m followed

by TGP which has 4.9m sales and the lowest is Generica with 4.4m sales.

DEPARTMENT OF BUSINESS AND MANAGEMENT

1.2 Sales Analysis

5
4.5
4
3.5
3 Php
Php Php 4.9M
2.5 Php
Sales

3.4M 4.5M
2 3.6M

1.5
1
0.5
0
2014 2015 2016 2017
Year

Figure No.1 [Income Statement (2015-2018)]

It shows that the highest growth of income was 2016 with 25% while 2017 was 9%, and the

lowest was 2015 with 6% only. But the highest sales income is 2017 with 4.9 million.

DEPARTMENT OF BUSINESS AND MANAGEMENT

1.3 Competitive Analysis

Impact of the product to The Generic Pharmacy Generica Southstardrug

the customers (TFP)

Price

Effectiveness

Advertisement

Brand

Trusted Product

DEPARTMENT OF BUSINESS AND MANAGEMENT

Legend:

Yellow = 1-2 (Very Poor) Red = 7-8 (Very Good)

Blue = 3-4 (Poor) Green = 9-10 (Excellent)

Violet = 4-6 (Satisfied)

Figure No. 1.3

The factors included in this data are the impact of the products to a customer rating from 1 to 10

and as color coding. This shows also the important of advertisement and the trusted product.

DEPARTMENT OF BUSINESS AND MANAGEMENT

1.4 Customer Analysis

The Generic Generica Southstardrug

Pharmacy

(TGP)

Target Market No age require No age require No age require

1.4 SWOT Analysis

STRENGTH WEAKNESS
 Very affordable
 Promote by our favorite  Packaging
celebrity  They have no online site
 They are focused on  Limited with branded
generic medicines. products.
 Their medicines are good  Lack of knowledge about
as branded. medicines.
 Free service for getting a
random blood sugar
count (RBS).
 Location

DEPARTMENT OF BUSINESS AND MANAGEMENT

 OPPORTUNITIES THREATS

 They can offer a monthly  New competitors in the

check up prior to senior market.
citizens.  Competitors price
 They can have an online discriminating strategy.
site or ready to pick up  Lack of health services.
orders.
 Seminars to make people
aware about the medicines.

2. OBJECTIVES

2.1 Marketing Objectives:

This Marketing plan aims to achieve the following:

Short Term

- To have a monthly check up to the Senior Citizens.

- To increase the sales in Online Selling every month.

- To have a new packaging style in every new deliver product monthly.

Long Term

- To have more branches most especially in provinces.

- To have a Generic counterpart of every branded medicines by 2021.

- Increase the sale by 10% in Online Selling by 2022.

DEPARTMENT OF BUSINESS AND MANAGEMENT

3. MARKETING STRATEGY

3.1 Market Segmentation Strategy

 Demographic Bases

 Geographic Bases

 Economic Bases

 Cultural Bases

3.2 TARGETING STRATEGY

Demographic Bases

Age

 All ages

Sex Category

 Male

 Female

Geographic Bases

 Quezon City

Economic Bases

Social Class

 Middle class and lower middle class

 Lower-middle class

 Lower-lower class

DEPARTMENT OF BUSINESS AND MANAGEMENT

 Cultural

 Religion ( All Religion )

Nationality

 Filipino

 Foreign

3.3 POTENTIAL STRATEGIES

 Ready to pick up orders and online site.

 Monthly check up for senior citizen.

3.4 CORE STRATEGY

 Our Core Strategy is to sell low-price and Generics products but effective as

branded.

4. MARKETING PROGRAMS

4.1. Loyalty Rewards

With the new Pag-IBIG Fund Loyalty Card, you can enjoy special discounts and rewards

when you pay for medicine. Just present your card to any TGP franchise to receive rewards.

4.2 Consumer Service and Support

Suggestions, Comments, Inquiries

-Tel. 02 961-1993

Email

tgpferya@yahoo.com

DEPARTMENT OF BUSINESS AND MANAGEMENT

4.3 Market Research

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 lower class people makes TGP truly innovative. It

means that a sustainable market can be organized along the health care needs of the poor

people, and that the lacking sufficient money are not always the beneficiaries of dole-outs that

conventional wisdom often makes them out to be. Although TGP product has a cheaper

medicine we improve our selling by using online, so that their request can automatically come

straight into your orders database from our website. The ability to use online marketing is to

target a new costumer.

4.4 Trust and Credibility

Vicky Morales admits that she has been accustomed to using only the most trusted and

effective medicines as he was very particular with the medicinal products that their family would

buy. She believes that with the resurgence of generic medicines, companies like the country’s

largest drugstore chain, The Generics Pharmacy (TGP), are giving people the option to

complete the entire dosage and frequency of their medicines to make their treatment more

effective. “That’s the reality out there. There are really cases wherein patients cut short on

medications because they could not afford it, even doctors feel so helpless,” Morales said,

“That’s why I’m glad there is TGP. They sincerely care about providing the best quality of

healthcare to people who are sick. reach.”

DEPARTMENT OF BUSINESS AND MANAGEMENT

 Aside from Morales, TGP also has other pro-health advocates supporting their cause like

Gov. Vilma Santos-Recto and Kuya Kim Atienza, both of whom are well-known personalities in

the industry.

5. IMPLEMENTATION PLAN

5.1 Benefits of Online Site and Ready to Pick up Orders

 Can easily purchase a medicine.

 This is an advantage for those consumer that are busy.

 Less time wasting.

 To know the availability of the product.

 It can be use for emergency purpose.

5.2 MARKETING PLAN

Nowadays, people choose product that are easily to purchase. They prefer to buy online

than buying to a direct shop, even though that it is more expensive, still they want it. The reason

why people keep on buying online is that they can less time looking for it, less hassle all you can

do is search, order and wait for the shipment. So we create a marketing strategy that can help

consumer to purchase a medicine in easiest way. Having an online site and ready to pick up

orders can really help our consumer to lessen their time dropping to drugstore and wait for their

turn. With the help of this plan consumer will only drop to a drugstore just to get their order they

don’t need to wait for long time.

We’re also planning to have a Generics counterpart of every branded medicines. This

idea is very helpful most especially in emergency situation.

DEPARTMENT OF BUSINESS AND MANAGEMENT

6. PERFORMANCE EVALUATIONS AND MONITORING

6.1 Sales Analysis

5
4.5
4
3.5
3 Php
Php Php 4.9M
2.5 Php
Sales

3.4M 4.5M
2 3.6M

1.5
1
0.5
0
2014 2015 2016 2017
Year

DEPARTMENT OF BUSINESS AND MANAGEMENT

6.2. Profit and Loss Assumption

SALES EXPENSES

Year 1(2016) Year 2(2017) Year 1(2016) Year 2(2017)

Total 4,538,463.35 4,984,274.25 Subtotal 2,399,304.58 2,666,234.26

Sales Direct Cost

of Sales

Total of 1,183,731.20 1,381,294.61

other

Expenses

TOTAL 3,583,035.78 4,047,528.87

EXPENSES

DEPARTMENT OF BUSINESS AND MANAGEMENT

PROJECTED NET INCOME

Year 1(2016) Year 2(2017)

Total Sales 4,538,463.35 4,984,274.25

Total Expenses 3,583,035.78 4,047,528.87

Net Income 955,427.57 936,754.38

DEPARTMENT OF BUSINESS AND MANAGEMENT

7. FINANCIAL INFORMATION

7.1 Financial Capsule

Year 1(2016) Year 2(2017)

Total Sales 4,538,463.35 4,984,274.25

Direct Cost of Sales 2,399,304.58 2,666,234.26

Total of Other Expenses 1,183,731.20 1,381,294.61

DEPARTMENT OF BUSINESS AND MANAGEMENT

7.2 Financial Assumptions

Year 1 Year 2

Total Sales Walk-In 5,485,000.00 5,734,000.00

Total Sales of Online 1,509,100.00 4,009,100.00

Ordering

TOTAL SALES 6,994,100.00 9,743,100.00

DEPARTMENT OF BUSINESS AND MANAGEMENT

7.3 Consumer Assumptions

Year 1 Year 2

Number of Walk-in 109,200 114,680

Customers

Number of Online 4,350 9,010

Customers

TOTAL CUSTOMER 113,550 123,690

7.4 Budget

Year 1 Year 2

Print and Poster Advertising 139,000.00 250,000.00

Expenses

Health Check-up Expenses 430,000.00 650,000.00

Promotional Expenses 331,000.00 600,000.00

TOTAL EXPENSES 900,000.00 1,500,000.00

DEPARTMENT OF BUSINESS AND MANAGEMENT

7.5 Direct Cost of sales

Year 1 Year 2

Total Sales 6,994,100.00 9,743,100.00

Direct Cost of Sales 3,497,050 4,871,550.00

7.6 Sales Projections (5 years)

Year of Production Total Sales

2019-2020 6,994,100.00

2020-2021 9,743,100.00

2021-2022 12,989,000.00

2022-2023 15,000,200.00

2023-2024 18,200,100.00

DEPARTMENT OF BUSINESS AND MANAGEMENT

8. CONTINGENCY PLANS

8.1 Symptoms of Failures

 It has various competitors which is Generika, Mercury Drug, Southstardrug,

Watsons, Metro inc., Alternative medicine, and Doctors prescribed medicine.

 Some drug is not available.

 Some generic product is not effective.

8.2 Alternative Strategies

 To get an excellent location. Medicine is usually bought where it is most

convenient.

 Maintain affordable medicine

APPENDECIES

Letter to the Respondents

ACCESS Computer and Technical Colleges

Quirino Highway Lagro Fairview Quezon City

Department of Business and Management

DEPARTMENT OF BUSINESS AND MANAGEMENT

Dear Respondents,

We the students of Access Computer and Technical Colleges Lagro branch, taking up

Bachelor of Science in Business Administration major in Marketing Management are currently

having a marketing research.

May we ask for some favour, if we can have some of your time to answer our survey form

regarding with our topic. This will be a big help for us.

Thank you.

BSBA-M51

DEPARTMENT OF BUSINESS AND MANAGEMENT

Questions:

1. Do you prefer a TGP brand than other brand?

A. Always B. Sometimes C. Seldom D. Never

2. How often do you usually visit TGP?

A. Very Often B. Often C. Rare D. Never

3. What do you usually consider when purchasing medicines?

A .Brand B. Price C. Effectiveness D. Packaging

4. Everytime you need a medicine, does TGP come first to your mind?

A. Always B. Sometimes C. Seldom D. Never

5. What do you usually buy in TGP?

A. TGP Brand B. Branded C. Ritemed D. Any of those three

6. Why did you keep on purchasing medicines at TGP?

A. Because it is the nearest drugstore

B. Because the price is affordable

C. Because I trust TGP

D. Because I have no choice

7. Do you think TGP brand are affordable?

A. Very affordable

B. Affordable

C. Quite affordable

D. Not affordable

DEPARTMENT OF BUSINESS AND MANAGEMENT

8. Are you satisfy with the service of TGP?

A. Very Satisfied B. Satisfied C. Quite Satisfied D. Not Satisfied

9. How did you discover TGP?

A. Friends B. TV Commercial C. Social Media D. Flyers/Poster

10. Is there a TGP brand near in your house?

A. Yes B. None

11. How effective does a TGP brand when it comes to advertisement?

A. Very Effective B. Effective C. Quite Effective D. Not Effective

12. Do you think having an online site on TGP will make a big advantage on its other

competitor?

A. Yes B. No C. Maybe

DEPARTMENT OF BUSINESS AND MANAGEMENT

Question 1

Do you prefer a TGP brand than other brand?

Class Tally Frequency Percentage

Always IIIII-IIIII-II 12 12%
Sometimes IIIII-IIIII-IIIII-IIIII-IIIII- 76 76%
IIIII-IIIII- IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-IIIII-I
Seldom IIIII-IIIII-II 12 12%
Never 0 0%
Total 100 100%

Base on this survey 76% of respondents buy at TGP sometimes and 12% of them were

always purchasing medicines at TGP. While 12% bought seldom and 0% answer never.

Question 2

How often do you usually visit TGP?

Class Tally Frequency Percentage

Very Often IIIII-III 8 8%

Often IIIII-IIIII-IIIII-IIIII-IIIII- 68 68%
IIIII-IIIII- IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-III
Rare IIIII-IIIII-IIIII-IIIII-IIIII-IIII 24 24%

Never IIII 4 4%
Total 100 100%

In this result we can say that 68% of respondents were often visits TGP stores while 8%

of them were always visiting

DEPARTMENT OF BUSINESS AND MANAGEMENT

Question 3

What do you usually consider when purchasing medicines?

Class Tally Frequency Percentage

Brand IIII 4 4%
Price IIIII-IIIII-IIIII-IIIII-IIIII- 44 44%
IIIII-IIIII-IIIII-IIIII-IIIII-IIII
Effectiveness IIIII-IIIII-IIIII-IIIII-IIIII 52 52%
IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-II
Packaging 0 0%
Total 100 100%

Based on this result, 52% of them were considering the effect of medicine and 44% of

them are looking for price when purchasing a medicine

Question 4

Everytime you need a medicine, does TGP come first to your mind?

Class Tally Frequency Percentage

Always IIIII-IIIII-II 12 12%

Sometimes IIIII-IIIII-IIIII-IIIII-IIIII- 88 88%

IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-III
Seldom 0 0%
Never 0 0%

Total 100 100%

In this result, we can say that only 12% of respondents are loyal to TGP because

whenever they need a medicine, TGP always come first to their mind, while 88% or the majority

of them were sometimes.

DEPARTMENT OF BUSINESS AND MANAGEMENT

Question 5

What do you usually buy in TGP?

Class Tally Frequency Percentage

TGP Brand IIIII-IIIII-IIIII-IIIII-IIIII-III 28 28%

Branded IIII 4 4%
Ritemed IIIII-IIIII-IIIII-IIIII-IIIII- 52 52%
IIIII-IIIII-IIIII-IIIII-IIIII-II
Any of those three IIIII-IIIII-IIIII-I 16 16%
Total 100 100%

Based in this result, we can say that Ritemed is the most purchase brand in TGP with

52%. In this result we can say that ritemed is very affordable.

Question 6

Why did you keep on purchasing medicines at TGP?

Class Tally Frequency Percentage

Because it is the lllll-lllll-lllll-l 16 16%
nearest drugstore
Because the price of lllll-lllll-lllll-lllll-lllll-lllll- 64 64%
their medicine is lllll-lllll-lllll-lllll-lllll-lllll-llll
affordable
Because I trust TGP IIIII-IIIII-II 12 12%

Because I have no IIIII-III 8 8%

choice
Total 100 100%

Based in this result, the reason why people keep on purchasing medicine in TGP is that

the medicine here is very affordable with the result of 64%, next reason is that because it is the

nearest drugstore in their house with 16%

DEPARTMENT OF BUSINESS AND MANAGEMENT

Question 7

Do you think TGP brand are affordable?

Class Tally Frequency Percentage

Very Affordable IIIII-IIIII-IIIII-IIIII 20 20%
Affordable lllll-lllll-lllll-lllll-lllll-lllll- 76 76%
lllll-lllll-lllll-lllll-lllll-lllll-
lllll-lllll-lllll-l
Quite Affordable IIII 4 4%
Not Affordable 0 0%
Total 100 100%

We can say that TGP is affordable for them, because the result here is 76%. And none of

them answer never.

Question 8

Are you satisfy with the service of TGP?

Class Tally Frequency Percentage

Very Satisfied IIIII-IIIII-II 12 12%

Satisfied lllll-lllll-lllll-lllll-lllll-lllll- 84 84%
lllll-lllll-lllll-lllll-lllll-lllll-
lllll-lllll-lllll-lllll-llll
Quite Satisfy IIII 4 4%

Not Satisfy 0 0%
Total 100 100%

In this result, 84% are satisfied with TGP meaning this is the reason why they keep on

purchasing medicines here.

DEPARTMENT OF BUSINESS AND MANAGEMENT

Question 9

How did you discover TGP?

Class Tally Frequency Percentage

Friends IIIII-IIIII-IIIII-I 16 16%

Tv Commercial IIIII-IIIII-IIIII-IIIII-IIIII- 48 48%

IIIII-IIIII-IIIII-IIIII-III
Social media IIIII-IIIII-IIIII-IIIII 20 20%
Flyers IIIII-IIIII-IIIII-I 16 16%
Total 100 100%

The reason why people got to know TGP was because of their Tv commercial with 48%,

we conclude that in business, commercials has a big impact to people. Next is social medias

with 20% it is because people nowadays are active when it comes on social medias.

Question 10

Is there a TGP brand near in your house?

Class Tally Frequency Percentage

Yes IIIII-IIIII-IIIII-IIIII-IIIII- 64 64%
IIIII- IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIII
No IIIII-IIIII-IIIII-IIIII-IIIII- 36 36%
IIIII-IIIII-I

Total 100 100%

Based on this result, 64% of respondents have a TGP brand near to their houses, this

may be the reason why they know TGP.

DEPARTMENT OF BUSINESS AND MANAGEMENT

Question 11

How effective does a TGP brand when it comes to advertisement?

Class Tally Frequency Percentage

Very Effective IIIII-IIIII-IIIII-IIIII 20 20%

Effective IIIII-IIIII-IIIII-IIIII-IIIII- 80 80%

IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-IIIII-IIIII

Quite Effective 0 0%
Not Effective 0 0%
Total 100 100%

The majority of respondents said that TGP brand is effective with 80%. And 20% of them

said that it is very effective.

Question 12

Class Tally Frequency Percentage

Yes IIIII-IIIII-IIIII-IIIII-IIIII- 64 64%

IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIII
No IIII 4 4%

Maybe IIIII-IIIII-IIIII-IIIII-IIIII- 32 32%

IIIII-II

Total 100 100%

Based on this, 64% of respondents thought that having an online site will have an

advantage to them.

DEPARTMENT OF BUSINESS AND MANAGEMENT