Happy Meds Drugstore
Happy Meds Drugstore
Happy Meds Drugstore
DRUGSTORE
SARA, ILOILO
OVERVIEW
Health is becoming a high priority among Filipinos. Based on the 2022 health survey done by the
Philippine Statistics Authority, the total health expenditure of Filipinos grew by 10.9%. The same report
showed that every Filipino spent PHP 6,662.2 for health in 2022. This simply proves that going into the
drugstore business is no losing proposition. A drugstore is one of the most stable businesses because
medicine is a necessity, and demand continuously increases as the population grows.
The Philippines has a fast-growing pharmaceutical market, with total sales of about 236 billion Philippine
pesos in 2022. About 90 percent of sales are supplied through retail outlets, particularly drugstores,
while the remaining share comes from hospitals. Meanwhile, ethical products or prescribed medicines
account for about 70 percent of the market, followed by over-the-counter (OTC) drugs. Pharmaceutical
products are supplied by multinational companies (MNCs) and local companies. MNCs are marketing
and distributing finished medicine products and raw and intermediate materials. Among the leading
MNCs in the country were Pfizer, GlaxoSmithKline, BOE Ingelheim, and AstraZeneca. Meanwhile, local
pharmaceutical companies have more diverse roles in the supply chain. Among the leading ones were
Unilab and Pascual Laboratories which manufacture their medicines. Other local companies
manufacture for MNCs or are limited to packaging, distribution, and retail. There were 3924 registered
drug manufacturers in the Philippines, with drugstores accounting for most of the country’s licensed
drug establishments. The domestic market is segmented into three license types and is dominated by
generic drugs.
The current supply of pharmaceutical products in the Philippines is primarily imported from the United
States, India, and Germany. In 2022, total imports amounted to 2.7 billion U.S. dollars, with its peak
value registered in the previous year. Most active pharmaceutical ingredients (API) used in
manufacturing and formulating medicines and other pharmaceutical products are heavily imported from
India, while locally produced pharmaceuticals mainly use sugar. Additionally, the Philippines imports
generic drugs the national government procures as part of its Universal Health Care Act. In contrast, the
country’s export value remains lower than its imports, highlighting a negative trade balance.
Over and above, the drugstore industry is indeed a growing and a profitable industry and it is open to
any aspiring entrepreneur to come in and establish his or her drugstore outlet.
EXECUTIVE SUMMARY
Happy Meds Drugstore will be located in one of the busiest streets in Sara, Iloilo. We have been able to
lease a facility for 5 years with the option of acquiring the property once the property is put up for sale.
The facility is well positioned and it matches the ideal picture of a community retail pharmacy store. We
are not going to spend much to revamp the facility because before taking over the facility, it was used as
a retail shop. Although the business is launching out with just one outlet, but we have plans to open
other outlets in key locations around Panay Island.
Happy Meds Drugstore will be involved in the retailing of prescription drugs and over-the-counter drugs.
We will also be involved in the sale of beauty products, cosmetic, hygiene and emergency kits,
convenience foods and other related products.
We are in drugstore to retail a wide range of pharmaceuticals for our customers, at the lowest prices
they can get anywhere in Sara, Iloilo. Our staffs are well trained and qualified to handle the wide range
of customers that we are positioned to serve. We will engage in the sale of prescriptions at reduced
prices both at the counter and online order.
Happy Meds Drugstore will operate a 24 hours, 7 days a week pharmaceutical store. We shall also have
customers like; walk – in customers and mail order customers. Our work force is going to be well trained
to operate within the framework of our company’s corporate culture and also to meet the needs of all
our customers.
Happy Meds Drugstore will ensure that all our customers are given first class treatment whenever they
visit our shop.
We will develop a profiling system that will enable us to manage a one on one relationship with our
customers no matter how large the numbers of our customers’ base grows. We will ensure that we get
our customers involved in the selection of brands that will be on our racks and also when make some
business decisions.
Happy Meds Drugstore is a family and associates business that is owned and managed by Rieza Dayaday
and Family. Ms. Rieza Dayaday is going to be the Proprietor of the business; she is a licensed Pharmacist
and graduated at the University of San Agustin. She has well over 10 years of experience working as a
pharmacist.
Happy Meds Drugstore will retail a wide range of prescription drugs from different manufacturing
brands to customers who are based in Sara, Iloilo. We also engage in the sale of beauty products,
cosmetic, hygiene and emergency kitss, baby products, convenience foods and other related products
(small scale medical equipment / instruments et al).
Our vision is to become the largest retail pharmacy store in the whole of Sara, Iloilo.
Our mission is to establish a first class retail pharmacy store that will make available a wide range of
generic and branded prescription drugs from top pharmaceutical manufacturing brands at affordable
prices to the residence of Sara, Iloilo.
Happy Meds Drugstore is a business that will be built on a solid foundation. From the outset, we have
decided to recruit only qualified people to man various job positions in our organization. We are quite
aware of the rules and regulations governing the pharmaceutical industry which is why we decided to
recruit experienced and qualify staff as foundational staff of the organization.
We hope to leverage on their expertise to build our business. When hiring, we will look out for
applicants that are not just qualified and experienced, but honest, customer centric and are ready to
work to help us build a prosperous business that will benefit all the stakeholders (the owners,
workforce, and customers).
These are the positions that will be available at Happy Meds Drugstore;
1. Pharmacist (Manager)
2. Cashier
3. Pharmacy Technician
Pharmacist (Manager)
Pharmacy Technician
Ensures that the store facility is in tip top shape and conducive enough to welcome customers
Ensures that goods and products are properly arranged
Responsible for processing prescriptions
Responsible for sterilizing the counter tops, scales, pill counting trays, and other medication
measuring devices.
Handles administrative and bookkeeping tasks, inventory control, stocking shelves, and data
entry
Performs monthly inventory counts, file paperwork, and stock inventory
Handles any other duty as assigned by the manager (Pharmacist)
Cashier
Receives payments
Issues receipt to customers if necessary
Prepare financial report at the end of every working week
Handles financial transaction on behalf of the company
Handles any other duty as assigned by the manager (Pharmacist)
SWOT ANALYSIS
Happy Meds Drugstore is not looking forward to operate a regular retail pharmacy store, because we
want to become the biggest retail community pharmacy in Sara, Iloilo. We want our pharmacy to be the
number one choice of all residence of Sara, Iloilo.
We know that if we are going to achieve the goals that we have set for our business, then we must
ensure that we build our business on a solid foundation. We must ensure that we follow due process in
setting up our drugstore.
Despite the fact that our Pharmacist (Manager)) has a robust experience in drugstore, we still went
ahead to hire the services of business consultants that are specialized in setting up new businesses to
help our organization conduct detailed SWOT analysis and to also provide professional support in
helping us structure our business. This is the summary of the SWOT analysis that was conducted for
Happy Meds Drugstore;
Strength:
Our location is one of our strength. The Business model we will be operating on (physical store and
online store) will be opened for 24 hours daily and 7 days in a week. There would be multiple payment
options; wide range of prescription drugs, home delivery services and our excellent customer service
culture will definitely count as a strong strength for us.
Weakness:
Our perceived weakness is the fact that we are just starting out and we may not have the required
finance to sustain the kind of publicity that we intend giving the business.
Opportunities:
The opportunities that are available to drugstore is unlimited and we are going to position our business
to make the best out of the opportunities that will be available to us in Sara, Iloilo.
Threat:
Just like any other retail business, one of the major threats that we are likely going to face is economic
downturn and unfavorable government policies (healthcare reform). It is a fact that economic downturn
affects purchasing power. Another threat that may likely confront us is the arrival of a new retail
pharmacy outlet in same location where ours is located (Sara, Iloilo.).
MARKET ANALYSIS
Market Trends
The market trend in drugstore industry is directly influenced by a country’s healthcare reform policies.
The fact that the pharmaceutical industry is highly regulated means that any entrepreneur who wants to
run a drugstore must be ready to play by the book.
Loads of other factors influences the market trend in the industry and it is normal to see bigger retail
pharmacy stores (especially those with chains of outlets) weathering the storm whenever there are
major shaking in the industry. In essence, the easiest way to build a solid and highly profitable drugstore
is to engage in opening various outlets in key cities around Panay.
No doubt the industry will continue to grow and become more profitable because the aging baby-
boomer generation in Philippines are expected to drive increasing demand for generic drugs.
Drugstores are now making use of technology to effectively market their business by developing strong
marketing channels through social media and online selling. The use of technology, i.e. profiling system
database et al are very effective in helping retail businesses manage their clientele base.
Target Market
Happy Meds Drugstore is in business to service a wide range of customers in Sara, Iloilo. We will ensure
that we target students, self – pay customers, online customers, and walk in customers et al.
The fact that we are going to open our doors to a wide range of customers does not in any way stop us
from demanding and screening prescriptions as required by the law. Our staffs are trained to effectively
service our customers and still play by the rules governing the industry. Our customers can be
categorized into the following;
Households
Politicians
Business People
Elderly people
Expectant Mothers
Sports Men and Women
Students
The drugstore industry is known to be highly competitive in the Philippines and in most parts of the
world. The industry is growing and there are alternative ways through which clients / patients can get
their medications / prescriptions / drugs.
There are alternative provides like malls, grocery chains, mass merchants and grocery stores; these are
the real competitors in the industry. These competitors ensure that they do all that lies within their
powers to gain favorable market share of the available market in any given region.
It is a fact that small retail drugstores will always struggle with larger pharmacy chains when it comes to
pricing power and brand recognition, which is why smaller drugstores always go out of their ways to
deliver excellent customer service. It is through top notch customer service that they can secure a fair
share of the available market.
Smaller drugstores ensure that each order carries a printout. The printout accompany the medications
providing directions on how patient are expected to take the medications, other drugs that should be
avoided concurrently, and other useful information.
Happy Meds Drugstore is coming into the market well prepared to favorably compete in the industry.
Our drugstore is well positioned and visible, we have enough parking space with good visual signage.
Our management staffs are well groomed in retail pharmacy and all our staff are trained to provide
customized customer service to all our clients.
We are going to be one of the few drugstores in Sara, Iloilo that will be opened 24 hours a week and 7
days a week. We have enough staff that are ready to run a shift system. Happy Meds Drugstore will
ensure that we have a wide range of products (prescription drugs and over-the-counter drugs).
We will also be involved in the sale of beauty products, cosmetic, hygiene and emergency kits,
convenience foods and other related products which are available in our store at all times. One of our
business goals is to make our drugstore a one stop shop drugstore.
SOURCES OF INCOME
Our source of income will be majorly in the retailing of prescription drugs and over-the-counter drugs
and of course the hygiene and emergency kits to schools. Happy Meds Drugstore will also generate
income from the sale of beauty products, cosmetic, foods and other related products.
This projection is done based on what is obtainable in the industry and with the assumption that there
won’t be any major economic meltdown and natural disasters within the period stated above. Please
note that the above projection might be lower and at the same time it might be higher.
The marketing and sales strategy of Happy Meds Drugstore will be based on generating long-term
personalized relationships with customers.
In order to achieve that, we will ensure that we offer medications at lower prices, compared to what is
obtainable in Sara, Iloilo. We will also ensure that we have a wide range of drug supplies in stock for
both quick shipment and storefront pick up.
All our staff will be well trained and equipped to provide excellent and knowledgeable customer service.
We know that if we are consistent with offering high quality drugs and excellent customer service we
will increase the number of our customers by more than 25% for the first year and then more than 30
percent subsequently.
Before choosing a location for our pharmacy store, we conducted a thorough market survey in order for
us to be able to be able to penetrate the available market and become the preferred choice for
residence of Sara, Iloilo.
We have detailed information and data that we were able to utilize to structure our business to attract
the numbers of customers we want to attract per time.
We hired experts who have good understanding of the retail industry to help us develop marketing
strategies that will help us achieve our business goal of winning a larger percentage of the available
market in Sara, Iloilo. In summary, Happy Meds Drugstore will adopt the following sales and marketing
approach to win customers over;
Introduce our business by sending introductory letters to residence, business owners and
organizations
Advertise our business in community.
Leverage on the internet to promote our business like Facebook and other social media
Direct marketing
Word of mouth marketing (referrals)
Enter into business partnership with hospitals, healthcare provider and schools.
Attend pharmaceutical related exhibitions / expos.
Regardless of the fact that our drugstore is well located in Sara, Iloilo., we will still go ahead to intensify
publicity for the business. We are going to explore all available conventional and non – conventional
means to promote our drugstore.
Happy Meds Drugstore has a long term plan of opening outlets in various locations all around Panay
which is why we will deliberately build our brand to be well accepted in Sara, Iloilo before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to
effectively communicate our brand to the general public. Here are the platforms we intend leveraging
on to promote and advertise Happy Meds Drugstore;
Place adverts on both print and electronic media platforms
Sponsor relevant community programs
Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to
promote our drugstore
Post our products on strategic post up walls all around Sara, Iloilo.
Engage in road show from time to time
Distribute our fliers and handbills in target areas
PRICING STRATEGY
Happy Meds Drugstore will work towards ensuring that all our products (prescription drugs and over-
the-counter drugs and beauty products, cosmetic, hygiene and emergency kits, convenience foods and
other related products are offered at highly competitive prices compare to what is obtainable in Sara,
Iloilo.
The fact that we are going to be offering our products at cheaper prices does not in any way means that
we will sell sub – standard goods. Selling our products at a lower price than what is obtainable in our
competitors store means that we will only reduce our profit margin.
PAYMENT OPTIONS
Happy Meds Drugstore, our payment policy is all inclusive because we are quite aware that different
people prefer different payment options as it suits them. Here are the payment options that will be
available in every of our outlets;
Payment by cash
Payment via GCash
Payment via online bank transfer (online payment portal)
Check (only from loyal customers)
This is the key areas where we will spend our start – up capital on;
We would need an estimate of Php 1,000,000 to successfully set up our drugstore in Sara, Iloilo. Please
note that this amount includes the salaries of all the staff for the first three month of operation.
GENERATING FUNDING / STARTUP CAPITAL
Happy Meds Drugstore is a private business that is solely owned and financed by Rieza Dayaday and
associates.
These are the areas Happy Meds Drugstore intends to generate the start – up capital;
The future of a business lies in the numbers of loyal customers that they have, the capacity and
competence of the staff, their investment strategy and the business structure. If all of these factors are
missing from a business, then it may not be too long before the business closes shop.
One of our major goals of starting Happy Meds Drugstore is to build a business that will survive off its
own cash flow without the need for injecting finance from other external sources once the business is
officially running. We know that one of the ways of gaining approval and winning customers over is to
sell our product a little bit cheaper than what is obtainable in the market and we are well prepared to
survive on lower profit margin.
Happy Meds Drugstore will make sure that the right foundation, structures and processes are put in
place to ensure that our staff welfare are well taken of. Our drugstore’s corporate culture is designed to
drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can
get in the industry; they will be more committed to help us build the business of our dreams.