10stepmarketingplan

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10 STEP Marketing Plan for

THE GENERICS PHARMACY

Caroline P. QuarteJune 2011

www.carolinequarte.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

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1. PTM: Filipinos who are struggling with the high cost of medicines.

2. NWD: They need quality, effective, and affordable medicines.

3. They can choose from Mercury Drug, South Star Drug, Watsons, and other

local drugstores.4. Gap: Major drugstores’ products are

around 90% branded and only 10% generic

5. Generic drugs have a market share of 31%

Steps 1 to 5

Generic drugs: cheaper and effective.

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6. Product: The Generics Pharmacy7. Price: Relatively lower than

branded medicines.8. Promo: Radio, TV, and print

9. Place: Now with 1000 outlets open

10. Strategy: Focus or niche strategy

Steps 6 to 10

No need to struggle with the high cost of medicines

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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

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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.

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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.

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Describe your PTM needs

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Self-Actualization Needs (Self-

Development & Realization)

Esteem Needs (Recognition,

Status)

Social Needs (sense of belonging, love)

Safety Needs (security, protection)

Physiological needs (food, water, shelter)

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

When I am healthy,I can realize my full potential.

I can focus on whatI am meant to do in life.

When I am able to buythe medicines I need,

I feel safe and secure.

Medicines can cure mysickness. It can provide thebasic need of being healthy


2. Cheaper medicines: the need, the want, and the demand

Needs: The PTM has Physiological, Safety, and Self-Actualization needs.

Wants: The PTM wants an effective medicine. They want medicines that has quality. Probably from a brand that is already trusted. They want

all these to be accessible and affordable.

Demands: For the PTM to finally decide to buy the product, the product should have a trusted

quality. It should be a an effective product that is also affordable. And, these should be available

from a store that is accessible to them.

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3a. NWDs are also offered in other stores.• Direct Competitors - Mercury Drug, South Star Drug, Watsons.

• Indirect Competitors – alternative medicines

• Variables – price, effectiveness, quality, brand, and accessibility

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Position Map

Price / Branded Matrix

Branded Non-branded

High price

Low Price

Price vs. Branded Medicines Matrix

as of 2011

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Benefit positioning vs.Brand map for drugstores

Benefit Positioning vs. Brand Matrix

as of 2011

Functional Benefit

The Generics Pharmacy

Mercury Drug Watsons South Star

Drug

Accessible

Affordable

Effective

Safe

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4. Bridging the GAP: customers and competition

• Marketing opportunity: AFFORDABLE AND ACCESSIBLE

MEDICINES

• What NWDs are not being addressed? Affordability of trusted

medicines

• Unique selling proposition for the new product: Reinforce generics

awareness, partner with government agencies, and help in ensure that

doctors prescribe generic medicines.

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5 Estimated market size of Mercury Drug Corp

Mercury Drug Gross Revenue: Php 72,155,744*

Mercury Drug is estimated to sell as much as 60% of all medicines sold each year in

the country.

The company sets up fully computerized warehousing, inventory, and ordering

systems.

*based on Philippine Business Profiles and Perspectives Inc.'sTop 7000 Corporations: Business Profiles 2009-2010 Edition.

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5 Estimated market size using company data

The generic drugs business already has an estimated market share of 31%

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5 Estimated market size using customer data

• Total family expenditures for drugs and medicines increased to Php 16,085,226 in 2000 or by 8% over a 4-year period from its 1997 level.

• At this rate, family expenditure might be around 21 million this year.

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5. Market size in Pesos

• The Philippine pharmaceutical market is valued at US$2.51 Billion in 2008, and forecasted to reached US$3.91 Billion by 3013.*

• Mercury Drug’s Gross Revenue: Php 72,155,744**

*http://www.tripleiconsulting.com**Philippine Business Profiles and Perspectives Inc.'s

Top 7000 Corporations: Business Profiles 2009-2010 Edition.

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6a. Photo of product category

Lipitor is used to treat high cholesterol.

Atorvastatin is the generic

name of Lipitor

Biogesic is used to treat

mild painParacetamol is the generic name of

Biogesic

BRANDED

GENERIC 18


6a. How competition looks like

DIRECT

INDIRECT 19


6b. Product Description

• “MABISA na, MATIPID pa!!!”

• They believe that health is not a privilege, but a basic right of every Filipinos.

• TGP is an advocate of making medicines accessible to all.

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7. Price Branded Price Generics Price Savings (%)

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 88

Co-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

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8a. Which of these modes does your product use?

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8a. Proposed promos for The Generics Pharmacy• Advertising – Radio, TV, and print

• Generics Awareness Symposium in local communities partner with DOH

• Health and Fitness events

• Discount / Loyalty cards

• Continue franchising strategy

• Online purchase / Free Delivery

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8a. Proposed promos for The Generics Pharmacy

Interactive Websitewww.thegenericspharmacy.com/

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8a. Proposed promos for The Generics Pharmacy

Generics Awareness Expo

Television Ads

Franchising

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8b. Mercury Drug Promo

Discount Cards and Raffle Promos

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9. Place• There is only one branch that is company owned, the rest are franchise. Now with 1000 outlets open.

• The store must be at least 15 square meters.

•Located near markets, hospitals, and even big drugstores.

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10. NICHE strategy is the winning strategy!

• Mabisa na, Matipid pa slogan

• Widely accessible and preferred by Filipinos who are struggling with the high cost of medicines

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SUMMARY

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1. PTM: Filipinos who are struggling with the high cost of medicines.

2. NWD: They need quality, effective, and affordable medicines.

3. They can choose from Mercury Drug, South Star Drug, Watsons, and other

local drugstores.4. Gap: Major drugstores’ products are

around 90% branded and only 10% generic

5. Generic drugs have a market share of 31%

Steps 1 to 5

Generic drugs: cheaper and effective.

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6. Product: The Generics Pharmacy7. Price: Relatively lower than

branded medicines.8. Promo: Radio, TV, and print

9. Place: Now with 1000 outlets open

10. Strategy: Focus or niche strategy

Steps 6 to 10

No need to struggle with the high cost of medicines

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10stepmarketingplan

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