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.

1|The Generics Pharmacy

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.

2|The Generics Pharmacy

1.3

Brand Diagnosis

1.3.1 4 Ps of The Generics Pharmacy

Product

The Generics Pharmacys product line consisted of 965 products.

Each product and packaging contained the The Generics Pharmacys

logo.

Price

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

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

Place

The Generics Pharmacy has 1000 franchises.

The Generics Pharmacy operated one central warehouse, one companyowned 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.

3|The Generics Pharmacy

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.

4|The Generics Pharmacy

1.3.2 Products

5|The Generics Pharmacy

1.3.3 Services

Free Blood Pressure Check

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

6|The Generics Pharmacy

Free Medical Check-up

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

Blood Sugar Monitoring

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

7|The Generics Pharmacy

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

Call-A-Dok
Free medical consultation. You can call any time any day to talk to our medical
experts.

8|The Generics Pharmacy

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,

department stores, and cosmetic stores.

9|The Generics Pharmacy

supermarkets,

groceries,

2.

Time Frame

February 28, 2014

The Generics Pharmacy and Kuya Kim Atienza

partner to promote generic medicine awareness.

January 31, 2013

The Generics Pharmacy Joins Philippine Business for

Social Progress.

January 25, 2013

The Generics Pharmacy Committed to enhancing the

public's quality of life.
The

Generics

Pharmacy

bags

citations

in

Entrepreneur Franchise Awards 2012

November 14, 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

The Generics Pharmacy Wins Best Health Market

Innovation Award.

September 28, 2011

The

Generics

Pharmacy

Awarded

as

Most

Outstanding Filipino.
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 consumers trust, they wont be able to compete with branded
pharmaceutical companies.

11 | T h e G e n e r i c s P h a r m a c y

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?

Measurable

What are the parameters?

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

Achievable

be remain.
Yes, The Generics Pharmacy has the

Is the task attainable?

capacity to compete against branded

Realistic

pharmaceutical companies.
Yes, The Generics Pharmacy has the

Are resources sensible?

resources needed to achieve

Time-Bound

objective.
November 2015 December 2016

12 | T h e G e n e r i c s P h a r m a c y

this

Start and end dates?

5.

Areas of Consideration

5.1

SWOT Analysis

Has

Strengths
quality and

affordable

medicines

their patients branded medicines

Has availability of medicines that

than generic ones

can cure severe diseases.

Manual inventory system

Has free services

The Generics Pharmacy are not

24/7 available
Threats
Arising competitors offering the

Opportunities
Provide promotional discounts
and

coupons

to

their

loyal

consumers

same type of business

Provide more customer service

trainings for employees

Weaknesses
Some doctors/physicians prefer

The Philippine pharmaceutical

market is increasing.

13 | T h e G e n e r i c s P h a r m a c y

Bad

image

for

the

generic

medicines in the Philippines

Top

leading

companies

Pharmaceutical

5.2

Competitors Analysis
Primary Competitors
The company was established in 1945
with a single drugstore. It is the
countrys 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

personal

care

products,

and

including

medical devices, and basic everyday

needs.

Their

Nakasisigurado

tagline
gamot

ay

is
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

14 | T h e G e n e r i c s P h a r m a c y

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

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

medicines, located
Philippines.

Their

Chinese
in Naga

City,

motto

is

Mapagkakatiwalaang Tunay.

15 | T h e G e n e r i c s P h a r m a c y

herbal

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

16 | T h e G e n e r i c s P h a r m a c y

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

6.2

It is easy to contrast by spreading false facts.

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.

PRO
17 | T h e G e n e r i c s P h a r m a c y

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

6.4

Sponsoring is already used by the other competitors.

Improve the services which satisfy the consumers security and
safety.

PROS

Satisfaction guaranteed.

CONS

More money and time consuming.

18 | T h e G e n e r i c s P h a r m a c y

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 thats 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 consumers point of view. They must know
whats best for their consumers and make improvements. Seeing things from a
consumers 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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