The Generics Pharmacy
The Generics Pharmacy
The Generics Pharmacy
Year launched: Franchise operations started in 2007. The mother company (Pacific Insular Co.) that gave birth to The Generics Pharmacy (TGP) franchise started in 1949 as a family enterprise involved in pharmacy importation and distribution. In 1974, the current TGP President, Mr. Benjamin Liuson, took over the helm from his parents. Some doctors urged their patients to use generics, but since the company was just an importer/wholesaler, it couldnt sell drugs directly to patients. Fortuitously, in 1989, Congress passed the Generics Drug Law (RA 9502), and with the prices of medical and pharmaceutical products soaring, the company decided to sell generic drugs primarily to government hospitals. (Generic medicines are finished pharmaceutical products having the same active ingredients, same dosage and form, and same strength as the branded drugs.) In 2001, the company opened its first
pharmacy to sell generics, a major innovation in the pharmacy business at that time since no drugstore was exclusively selling generics. But generics were still slow-selling because of poor information to patients who would buy more expensive branded drugs instead. Nevertheless, there was a continuous flow of generics clients who were
coming from nearby provinces of Bulacan, Tarlac, Pampanga, Laguna and Cavite (Anon, 2011). In 2007, TGP tapped Francorp, the world leader in franchising, to energize its franchise development and growth, and thus became the first generics retail pharmacy
RATIONALE
Program legal status: The franchisor (TGP) is a duly registered company. Franchisees sign a franchise agreement with TGP. Franchisees need to register with the Department of Trade and Industry (DTI) if it is a single proprietorship, or with the Securities and Exchange Commission if it is a corporation. It also needs to be approved by the Food and Drugs Administration. It must satisfy all the requirements of the local government unit in which it is located, and the Bureau of Internal Revenue. There are over 300 franchisees, or an average of 3-4 outlets per franchisee.
Business format: Business franchising. Sponsor or implementing organization: Itself and its franchisees.
development, training, business development, marketing, and other high-cost activities which the individual investor may find hard to shoulder on his/her own. Indeed, the main
The initial term of the franchise agreement is three years, renewable to 2 additional 3-year terms, for a total of nine years. The royalty fee of 1 percent of gross sales is paid every 15th of the month. The franchise arrangement requires that the space for the outlet be not less than 15 square meters; space smaller than this will not be approved by BFAD. The outlet should ideally be located in areas of heavy
pedestrian traffic, such as near hospitals and medical clinics, big drugstore chains and health food stores, public markets, supermarkets and groceries, malls and department stores, and cosmetics and convenience stores.
The total franchise investment or fee is Php600,000 to Php800,000 for one outlet. This includes the franchise fee of Php210,000 as well as the total support The fee covers the following rights and
services: right to use the trademark, name and logo of the franchisor; startup and preoperating assistance; site evaluation assistance; architectural/store design and construction assistance; extensive training on pharmacy retailing, business
management and operations, and customer service; technical education and guidance on the dispensing of generic drugs; and marketing and advertising support. The
franchise arrangement also requires the franchise to contribute 1 percent of gross sales as advertising fee.
The franchise does not confer an exclusive territory. However, TGP will see to it that each site will service the population to the fullest to make the business viable. The franchise will not allow the outlet to carry branded medicines, since their gross margin has been estimated to be only between 5-7 percent. However, if the outlet has enough space, it can carry other products like cosmetics, medical and hospital supplies, and convenience-store food products. depending on market circumstances. The franchise decides on its opening hours,
OBJECTIVE: To create a high impact to the audience through different advetisements such as TV, RADIO, PRINT, TRANSIT, MOBILE and INTERNET campaign in a period of 3 months.
TV STRATEGY Since most of the households own a Television, it will be used as primary medium. Spots to be scheduled on weekdays and weekends, particularly during noontime and primetime, to spread an immediate impact. Utilize the anchor local channnels (Ch.2, Ch. 5 and Ch. 7) to reach most of the
RADIO Radio to be aired every morning in Metro Manila as strong support for TV and prints. Top Rating FM Station with a Frequency of 4 to 30 times per day.
PRINT As strong supplementary medium for copy awareness and for reaching our market in key areas.
TRANSIT The ads will also be seen in different types of transportation. It will be placed on the top of the jeepneys and on the handles inside the LRT.
INTERNET Use of Social Networking Site such as Facebook for the easy dissemination of the information.
TARGET MARKET Georaphic: Demographic: Psychographic: Behavioral: Urban Dwellers (Nationwide) All ages, Both Male and Female, SEC B-E Individuals who are physically weak, and who are health-conscious Looking for effective medicines at an affordable price
MEDIA HABITS ON TV MEDIA REACH Despite the growth of new media, at least 90% of the whole population still has their TV sets on. (%)
2008 95 92 91 2009 2010
62 65
62 62
58
58 58 58
28 30 30 16 18 15 15 18 16 7 8 9
TV (Past Week)
Newspaper (Yesterday)
Magazine (AIR)
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NATIONAL URBAN: TV OWNERSHIP TV ownership at 94%, up by 4% vs. 2008. Luzon remains the driver of NUTAM TV ownership at 95% Luzon is also the area with most multi-set TV homes at 25% (driven by Urban Luzon: 30%) Visayas, having the largets E segment, has the lowest TV ownership among areas at 86% but grew vs. 2008 by 2% Mindanaos TV ownership at 91% - grew by 4% vs. 2008
96 94 92 90 88 86 84 82 80 78 90
94 91
95 91 87
86 84
NUTAM
Luzon 2008
Visayas 2010
Mindanao
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NUTA
7 19 8 19 8 21
Luzon
8 19 4 14
Visay
8 12
Mindanao
4 15 6 11
73
71
MEGA MANILA TV OWNERSHIP Homes with working TV at 96%. Expanded suburbs now at par with Metro
Manila in terms of TV ownership both at 96% Suburbs grew by 5% in TV ownership while Metro Manila was steady. Stable average number of TV sets in Mega and Metro Manila.It is in the Suburbs where 3+ TV sets grew by 4%. relatively
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TV ownership grew more in the Suburbs and is now at 96% -- similar to Metro Manila.
97 96 95 94 93 92 91 90 89 88 MEGA MANILA METRO MANILA 2008 2010 SUBURBS 91 93 96 95 96 96
MEGA
10 24 11 23
METRO
12 25 12 26
SUBURBS
5 20 10 20
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In urban and rural Philippines, 40 % watch television during primetime, spend an average of five hours watching TV during weekdays and can be reached by any one of the more than 8,500 advertisements aired on 136 television channels every day.
Television viewing The shape of the day remains the most important barometer in measuring TV viewing. It is so simple, straightforward and says a lot. In urban and rural Philippines, the shapes are the same during weekdays and during weekends, with two peaks very visible. Noontime and primetime are still the highest draws.
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10 9 8 7 6 5 4 3 2 1 0
NUTAM
Luzon 2008
Visayas 2010
Mindanao
As expected, viewing in rural Philippines is slightly lower than that of urban. But this is only true during daytime and late at night.
Ratings from rural Philippines are higher during primetime. It peaks earlier than their urban counterparts and it is true for both weekdays and weekends.
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7.7 7.1
Rural kids and teens watch 45 minutes less. If we focus on housewives, kids and teens, we discover that rural housewives watch significantly less television during the daytime. They only catch up with their viewing from around 6:30 p.m. to 8 p.m., after which a steep decline ensues.
Urban housewives viewing pattern, on the other hand, climbs steadily from 5:30 a.m. to around 9:30 a.m. The difference in viewing widens till around 11 a.m., and then goes on a steep ascent after then.
Rural kids watch about the same amount of TV compared to their urban counterparts in the morning, which lasts up to 8:30 a.m. Then, just like the housewives, they watch less TV at noon and in the afternoon.
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LOCATION OF OUT-OF-HOME VIEWING When not at home, most watch TV at someone elses place
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62 65
62 62
58
58 58 58
28 30 30 16 18 15 15 18 16 7 8 9
TV (Past Week)
Newspaper (Yesterday)
Magazine (AIR)
Base: Males and Females aged 10+ across all socio-economic classes in National Urban Philippines
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Using the Radio Audience Measurement (RAM) system, the listening habits of 500 homes in Metro Manila and 250 homes in Cebu and Davao were surveyed.
Metro Manilans tended to tune in at around 10 in the morning with the number peaking at noon. Listeners outside Metro Manila, however, turn on their radios earlier with audience volume in Laoag, Bacolod, Cagayan de Oro and other provinces peaking at around 8 in the morning.
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21
AGE
120 100 18 80 14 60 40 20 26 0 All People 10-19 20-29 30-39 Radio Listener 40-49 50+ 23 19 22 17 17 22
22
22
60
18 5 3 Radio Listener D E
23
MINDANAO
24
2008
2009
2010
62 65
62 62
58
58 58 58
28 30 30 16 18 15 15 18 16 7 8 9
TV (Past Week)
Newspaper (Yesterday)
Magazine (AIR)
Broadsheets and tabloids both had fewer readers in 2010 than in 2008, with readership dropping from 24 percent to 20 percent in the Greater Manila area.
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Prefers internet No available newspaper in the area None in my family reads Prefers radio Price is an issue No time to read Not my priority Do not like to reas newspaper Prefers TV 0
1 2 1 1 2 2 3 4 6 6 4 5 5 5 19 5 2010 Q2 10 2010 Q1 15 20 21 25 3
Base: All People 10+ , Non-broadsheet readers in the past 12 months Source: Nielsen Media Index 2010 Q2 NEWSPAPER READERSHIP (AIR)
40 35 30 25 20 15 10 5 0 36 29 24 20 23 32 26 14 4.3 15 32
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MEGA MANILA
CEBU 2010
DAVAO
26
50
60
50
40 B. Readers
All People
AGE
10-19
20-29
30-39
40-49
50-59
18 14 19
24 11 30
23 21 27 15
All People
B. Readers
27
28
OUT-OF-HOME MEDIA (Billboards,Transit Ads etc.) Filipinos are becoming Mobile. More than a fourth of the Metro Manila population is working. This segment is more likely to be exposed to Out-of-Home Media.
Non-Working 64%
Working 36%
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18 14 19 22 26 TOTAL
15 15 20 24 26 SAW O-O-H
30
27
38
30 50
GENDER
Male
Female
53
50
53
60
47
50
47
40
TOTAL
MRT
LRT1
LRT2
31
2008
2009
2010
62 65
62 62
58
58 58 58
28 30 30 16 18 15 15 18 16 7 8 9
TV (Past Week)
Newspaper (Yesterday)
Magazine (AIR)
Source: Nielsen Media Index 2008-2010 Metro Manila has the largest internet users but Tier 2 cities are catching up
Luzon 40 37 35 34 31 31 30 25 24 24
Visayas
33 32 20 18
Mindanao
17
29 29 27 27 24 22
Base: Males and Females aged 10+ across all socio-economic classes Source: Nielsen Media Index Key City 2010
32
50
WORK 2010
Base: Males and Females aged 10+ across all socio-economic classes Source: Net Index 2009 & 2010
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Base: Past month Internet users aged 10+ across National Urban Philippines Source: Yahoo!-Nielsen Net Index 2010
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00:00:00 00:00:05 A grandmother is telling what it is like being old, that they are more susceptible to many kinds of sickness. 00:00:06 00:00:10 And for the maintenance of her medicines she only chooses The Generics Pharmacy. The camera focuses on the piles of medicines held by the grandmother. 00:00:11 00:00:15 A teacher presumes that the effectiveness of a medicine depends on its brand. 00:00:16 00:00:21 But when she tries using generics medicine, she proved it wrong. She realized that generics medicines are as effective as the branded one. 00:00:22 00:00:28 A pedicab driver is expressing the reality of life. That his
3rd Slide The Generics Pharmacy store 4th Slide The Generics Pharmacy store
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00:00:35 00:00:41 A mother holding her sickly son, having problems with all the medicines she needs to buy for her son. The good thing is, theres The Generics Pharmacy that answers all her problems. 00:00:42 00:00:49 Two employees of The Generics Pharmacy is stating that people dont need to suffer for buying expensive medicines because The Generics Pharmacy offers medicines that are effective and yet cheap. 00:00:50 00:00:52 The logo of The Generics Pharmacy appears together with the tagline: Sukat sa Bisa, Sukat sa Bulsa.
9th Slide
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Ang sakit ay hindi maiiwasan. Ngunit hindi lahat ay may kakayahang makabili ng branded na gamot. Ang bisa ng gamot ay hindi nasusukat sa halaga nito. Kaya handog namin ay gamot na mabisa sa murang halaga. Dito sa Generics Pharmacy Sukat sa Bisa, Sukat sa Bulsa.
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3. Siguraduhing kunin ang kapirasong parte ng coupon bilang katibayan ng iyong entry at itago hanggang sa araw ng pagbibigay ng papremyo, at ihulog ang mismong entry sa drop box sa loob ng Generics Pharmacy na iyong binilihan. 4. Ang pagbunot ng mga entry para sa Grand Prize and Consolation Prize ay malalaman sa katapusan ng Setyembre. Ang mga mananalo ay tatawagan ng Generics Pharmacy office. 5. Ang unang sampung (10) mabubunot ay mag-uuwi ng consolation prize na 3,000 bawat isa. Ang huling tatlong (3) mabubunot ay ang makakakuha ng Grand Prize: 1st 22 LED TV 2nd Washing Machine 3rd Android Phone
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