de Vera 10 step marketing plan

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10 STEP Marketing Plan for THE GENERICS PHARMACY

Windell G. de VeraJuly 2012


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


1. PTM of TGP is Class D and E2. Who want effective but affordable

medicines3. Can choose Generika Drugstore or

Mercury Drug4. Gap is Mercury sells branded and

expensive medicines and Generika has few stores.

5. The market size is Php 120 Billion and the niche of TGP is Php 25 Billion

Steps 1 to 5

Effective and Affordable medicines for Classes D and E


6. TGP sells effective and affordable medicines

7. TGP is priced 30-50% lower than branded medicines

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

9. Distributed nationwide10. Uses niche marketing

Steps 6 to 10

The marketing mix & strategy of TGP


1. The PTM of TGP are classes D and E

Those in social classes D and E Those who are sick which

includes children and old people Those who need healing from

particular sickness or want to prevent getting sick


Describe your PTM needs

6

Esteem Needs (Recognition, Status)

Social Needs (sense of belonging, love)

Safety Needs (security, protection)

Physiological needs (food, water, shelter)

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

I want to be healthy and to be healed from sickness.

I am happy if I am healthy and not sick.


2. The needs, wants & demands of Filipinos regarding medicinesHealth is a safety need for everyone and it is

important that one is not sick or can be healed from sickness. A person is happy if healthy and not sick.

The products of TGP offer an effective like branded medicines at affordable prices as wanted by most consumers.

The demand of the majority of Filipinos to have an access to quality medicines at lower prices is addressed by TGP with its effective and affordable medicines.


3a. Competitors of TGP

Direct: Mercury Drug, Generika Drugstore, South Star Drugstore

Indirect: Government Health Centers, online drugstores

Variables: Price, accessibility, product endorser, promise of effective and affordable medicines


3b. TGP is perceived to offer quality medicines at cheap price

Price/ Quality Matrix

LowQuality

AverageQuality

Above AverageQuality

ExcellentQuality

High price

Low Price

as of 2012


TGP niche positioning with quality and affordable medicines

Benefit Positioning vs. Brand Matrix

as of 2012

Functional Benefit

The Generics Pharmacy

The Generika Drugstore

Mercury Drug

Lower Price

Good Quality

Accessibility

Free Service

Value Card

Open 24 hours


4. TGP positions strongly in a niche market opportunity

The marketing opportunity of TGP is the lower price and accessibility.

Its prices are lower than Mercury Drug and it is more accessible than Generika Drugstore with its 1,300 stores.

It is open to franchising and it needs less capital compared to others.


5a. Pharmaceutical market is estimated to be Php 120 billion

1. According to a study, the pharmaceutical market is Php 120 billion -Php 78 billion (65%) – Branded medicines-Php 42 billion (35%) – Generic medicines

2. Mercury Drug claims majority of the branded medicines and a portion of the generic.

3. Generika Drugstore has 25% of the generic medicines based on the number of stores.

References:http://www.tripleiconsulting.com/main/philippines-investment-resources/value-

propositions/philippines-pharmaceutical-industryhttp://growinginclusivemarkets.org/media/cases/Philippines_RiteMed_2008.pdf


5b. The current market share of TGP is Php 25 billion

1. The claimed market share of TGP is 60% or an estimate of Php 25 billion.

2. The total market share of the generic medicines is Php 42 billion.


5c. The market size based on usage is around Php 120 billion

If a household spends an average of Php 2,000 a year for medicines (branded and generic) and there are 60,000,000 households in the Philippines, the total market share is Php 120 billion.

Php 2,000 x 60 m = Php 120 billion


5. Pharmaceutical market is Php 120 billion and the share of TGP is Php 25 billion

1. Competitor data= Php 120 billion(branded and generic)

2. Company data = Php 25 billion(generic only)

3. Customer Usage data = Php 120 billion

4. (branded and generic)


6a. TGP stores


6a. TGP vs. competitors


6b. TGP product

The vision of TGP is to offer effective but affordable medicines to all Filipinos. With more than 1,300 branches nationwide, it gives the masses the chance to avail of generic medicines that are as effective as branded medicines but at lower price.


7. TGP prices is 30-50% lower than branded medicines

Branded GenericBiogesic 500 mg 500 mgPrice: Php 4.00 Php 0.60Price difference: Php 3.40 or 80% cheaper


7. Price comparison 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. TGP uses TV ads, events and experiences and word of mouth


8a. TGP promotions include stories of cheap yet effective generic medicines


8a. TGP in talk shows and business shows


8b. Competitor’s promo


9. TGP is located in public places and near big drugstores

TGP products are available in Public places like public markets and

hospitals Nationwide (1,300 branches) Over the counter transactions


10. The winning strategy of TGP is its effective and cheap medicines

The 3 strategies are being used by TGP: Low Cost Producer of Generic Drugs Supply and Distribution Leverage with

its 1,300 stores nationwide Niche of Classes D and E


1. PTM of TGP is Class D and E2. Who want effective but affordable

medicines3. Can choose Generika Drugstore or

Mercury Drug4. Gap is Mercury sells branded and

expensive medicines and Generika has few stores.

5. The market size is Php 120 Billion and the niche of TGP is Php 25 Billion

Steps 1 to 5

Effective and Affordable medicines for Classes D and E


6. TGP sells effective and affordable medicines

7. TGP is priced 30-50% lower than branded medicines

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

9. Distributed nationwide10. Uses niche marketing

Steps 6 to 10

The marketing mix & strategy of TGP

www.windelldevera.blogspot.com 29

10 STEP Marketing Plan for THE GENERICS PHARMACY

Windell G. de VeraJuly 2012

de Vera 10 step marketing plan

Technology

branded medicinesphp

estimate of php

niche of tgp

tgp positions

products of tgp

tgp produ

share of tgpis php

claimed market share