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
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
1.3.1 4 Ps of The Generics Pharmacy
The Generics Pharmacy’s product line consisted of 965 products.
Each product and packaging contained the The Generics Pharmacy’s
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
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
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
5|The Generics Pharmacy
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
The Generics Pharmacy partners with City Delivery to bring our quality medicine
straight to your home.
Free medical consultation. You can call any time any day to talk to our medical
8|The Generics Pharmacy
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
Tandem or In-store
A pharmacy located within or inside a medical clinic or hospital, or inside
department stores, and cosmetic stores.
9|The Generics Pharmacy
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
January 25, 2013
The Generics Pharmacy Committed to enhancing the
public's quality of life.
Entrepreneur Franchise Awards 2012
November 14, 2012
The Generics Pharmacy Franchisees win FDA Quality
10 | T h e G e n e r i c s P h a r m a c y
April 19, 2012
November 25, 2011
The Generics Pharmacy Wins Best Health Market
September 28, 2011
September 18, 2010
Healthcare is a phone call away at The Generics
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 consumer’s trust, they won’t be able to compete with branded
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Statement of 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.
to be able to build the trust of the
What is the specific task?
What are the parameters?
Evaluation should be done every week
to know the things that should to be
improve more and those that should
Yes, The Generics Pharmacy has the
Is the task attainable?
capacity to compete against branded
Yes, The Generics Pharmacy has the
Are resources sensible?
resources needed to achieve
November 2015 – December 2016
12 | T h e G e n e r i c s P h a r m a c y
Start and end dates?
Areas of Consideration
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
Arising competitors offering the
Provide promotional discounts
same type of business
Provide more customer service
trainings for employees
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
medicines in the Philippines
The company was established in 1945
with a single drugstore. It is the
country’s leading trusted and caring
health and wellness partner, providing
the widest range of branded and
generic medicines, as well as a
medical devices, and basic everyday
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
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
aside from its well patronized by
majority of the people, the drugstore
also sells generic medicines primarily.
Their tagline is “Gamot at Serbisyo
The company was established in 1952
in Cebu City, It is one of the
retailers with over 183 branches in
strategic locations all over the country,
providing easy access to quality and
affordable medicines for its numerous
Their motto is KSM or
“Kay Sarap Magmahal”.
The company was established in 1937
as a small business venture engaged
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16 | T h e G e n e r i c s P h a r m a c y
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.
Alternative Courses of Action
They should focus on advertising their products so they can prove
the consumers that generic drugs are reliable and effective.
They will be more aware to the possible market. Especially those who can
afford to buy branded drugs.
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.
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.
It is a risky move because they have never tried manufacturing their own
products, and by implementing this might be costly.
Promote The Generics Pharmacy by major sponsoring in television
show/s or giving promo on online, on radio and or on television.
The company will attract more customers because of their promo. This will
be an added exposure and promotion to the company.
Sponsoring is already used by the other competitors.
Improve the services which satisfy the consumer’s security and
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
Conclusion and Recommendations
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 that’s what urges them to trust the
19 | T h e G e n e r i c s P h a r m a c y
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
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 consumer’s point of view. They must know
what’s best for their consumers and make improvements. Seeing things from a
consumer’s point of view will keep their experience a positive one.
They must leave a good impression for the consumers. It can be done
through improvements of equipment, facilities, employees that treat each