MARKETING PLAN: KATIPUNAN PHARMACY

1. O Executive Summary
Katipunan Pharmacy is on their 11th year in serving
Marketing strategy is required to their business to
not just the local people of Katipunan bout also
enhance their methods in providing a better results
those consumers from nearest municipalities.
and be top of all competitors.
Serving a good quality of product in the lowest price.
Katipunan Pharmacy is not just offered prescription 2.1 Market Summary
medication but also school supplies and other
health related products and services. The Katipunan Pharmacy possessed useful
information about their market that they want to
Katipunan Pharmacy is the first pharmacy in serve. They used this information for a better
Katipunan which reach longest time in service and understanding on how to deal with their market
still counting, this gives them an edge on gaining and how they are going to serve them a good
trust than their competitors. service that only Katipunan Pharmacy can.
Katipunan Pharmacy ensure the quality of products Target Market
and services offered by providing good customer
relation.

The Katipunan Pharmacy years in service shows

10% 10%
that this business is always in trends. Medicine is
one of necessities of human, the reason why 20%
30%
Katipunan Pharmacy boost the profitability. The
continuous efforts of management will bring the
business into success. 30%

2.0 Situation Analysis

Katipunan Pharmacy its 11th year in operation. The 15-19 yrs. old 20-29 yrs. old
products and services offered are well provided and
accepted by the consumers. By growing, the 30-44 yrs. old 45-54 yrs.old
pharmacy business competitors arise also that
55 yrs. Old and above
makes their profit stumbled.

Pie shows the percentage of each market assumed profit

shares.

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The table 2.1 shows predicted percentage of
market growth in each potential customers.
According to the PSA more than 50% of the
consumers are consuming product through
pharmacy. We just assumed that 50% of the total
population in Katipunan in each potential customer
in the year when the marketing plan is not yet in act.
Every year the numbers of the potential consumers
grow by their predicted percenrage.
2.1.1 Market Demographics
The profile for the Katipunan Pharmacy customer
consist of the following demographic, and behavior
factors:
Demographic
According to PSA:
 Pharmacy has an equal ratio between
male and female.
 A total of 50% of general papulation of the
target market went to pharmacies
 Ages 15-19 are rarely go to pharmacy,
almost half of them are minors that not
capable to buy prescribe medicine, mostly
ages 20-44 are the one who go to
pharmacy. Those who are in the age of 45-
54, most of them are always stay in home
and not the one who buy the product. The
age 55 and above are the one who needs
the product but most of them are have no
strength to go to pharmacy, their decision
making of choosing where to buy is not
whit theme.
Behavior Factors
 Users who are tired in going to the city.
 Users who have close relation to the
personnel or the business itself.
 Users that build loyalty to the business.
 Users who are in more relevant and less
priced medicine and other offered product.
 Users who heard good things about the
business from other consumers.
2.1.2 Market Needs
Katipunan Pharmacy providing a quality products
and services that relevant to the needs and wants
of their consumers. Katipunan Pharmacy uses their
good customer relation into good service that
brings them into profitable firm. Katipunan
Pharmacy seeks to fulfill the following benefits that
are important to their customers.
 Accessibility- Katipunan Pharmacy is located
near their core customers that makes their
products and services ease to acquire through
their conveniently-located store.
 Customer service- the pharmacy offers a
reliable information on reading doctors
prescribed medication. They serve a good
customer relation by accommodating each
well. They ensure that they bring satisfaction
to their customer.
 Pricing- the product offered by pharmacy is
not just ensure to have a good quality but in a
lowest price for the customers can easily
acquire.
2.1.3 Market Trends
Customer views about pharmacy nowadays is not
just providing good quality of medicine or any
health related products but also offered different
kind of products like cosmetics products. The
Katipunan Pharmacy should adopt the changes on
how consumers their business and what is trends
nowadays. This is the indicators that their market
will be wide and they will consider additional target
market not just for those who are capable to buy
prescribe medicine but also for the additional
acquire products and services. Most of its
target market uses social media, Katipunan
Pharmacy should adopt this trends in order to
increase the growth of its profit. Online
shopping also trends in a pharmaceutical
business that’s why Katipunan pharmacy
should consider together in building a social
media account to be more relevant to the
consumers.
2.1.4 Market Growth
The stable profit of Katipunan Pharmacy is the
indicators of continuous customer satisfaction.
Because of increasing needs of health related
products, the competitors also begun to arise.
Those consumers that not yet build loyalty has a
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possibility of change their buying behaviors and
acquire the product of Katipunan Pharmacy.
2.2 SWOT Analysis
The following SWOT analysis captures the key
strengths and weaknesses within the business
and describes the opportunities and threats
facing Katipunan Pharmacy.
2.2.1 Strength
 Katipunan Pharmacy already stablish a
customer loyalty because of being the first
pharmacy in Katipunan who operate a long
time.
 The pharmacy gain trust from their
consumers because of providing them
reliable services and relevant price.
 Katipunan Pharmacy not only known by
their service but also known to have a
good proprietor that being a good public
official. This brings a good reputation to
the business.
2.2.2 Weaknesses
 Lack of managerial skills
 Personnel lack of experience and
knowledge about the business
2.2.3 Opportunity
 Capability to start establishing a branch
 Adopt 24/7 service
 Growing demand of medicine in the
market
2.2.4 Threats
 Personnel compensation
 Growing competitors
 Government regulation
 Low consumer’s income
 Growing consumer’s belief about fate
healer
2.3 Competition
Katipunan Pharmacy is on the run of growing its
market but there are lot of competitors to consider
who also growing and bring treats to the business.
There is only one direct competitor in Katipunan,
but there are also indirect competitors like fate
healers who directly affect the business. The strong
culture of the Filipino, considering in rural place like
Katipunan who have strong bond in beliefs of the
old ones that they can be cure without taking any
medicine made from science. This can create big
treats to the pharmacy, but because of the good
reputation and good customer relation the
business it still surviving and continue providing
good quality of product and services.
2.4 Product Offering
Katipunan Pharmacy is offering the following
product:
 The first product is prescription
medication both generic and name brand
 The second product offered are personal
hygiene products
 The third product offered is school
supplies. This product is rarely seen in any
pharmacies that makes them different.
 They also offered Beverage and frozen
foods that mostly seen in other pharmacy.
 In creating a marketing strategy, Pharmacy
also need to adopt the trends in their
business today like acquiring cosmetic
products.
2.5 Keys to Success
The key to success are:
 Adopt trends
 Maintaining good customer relation
 Maintaining relevant price in the product
offered
 Maintaining good quality of product and
services.
2.6 Critical Issues
The critical issues are for Katipunan Pharmacy to:
 Expand and stablish branches to wider it
market area.
 adopt 24/7 in service to acquire additional
consumers especially those have work in
day time
 ensure personnel right compensation to
motivate them at work
 acquire additional knowledge on
managing a business and its function
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3.0 Marketing Strategy
Katipunan Pharmacy marketing strategy is to focus
in providing quality of product and services in more
relevant price, by this action their loyal customer
will stay and can attract more potential customers
by word of mouth from those who consume their
product and services. All products are useful to all
of the different segment this is a high indicator that
it has a big chance of success by maintaining their
good customer relation. According to the
Philippine Statistic Authority 50.1% of the
household went to pharmacies this information is
shows that more than a half of a total segment are
acquiring medicine in pharmacy that needs to give
a better service like extending the time of service
and making it 24/7 open for everyone to acquire in
the pharmacy and not to the other competitor. The
Pharmacy also needs to develop and engage online
strategy like creating social media and adopt and
accept online orders in order to serve those almost
half of household who don’t want spending their
times going in a pharmacy.
3.1 Mission
Katipunan Pharmacy mission is to provide
customers a good quality of goods and services and
be more accessible to everyone. Maintaining a
strong relation to customers and be more relevant
and give the best and reasonable price.
3.2 Marketing Objectives
 to maintain positive feedbacks from the
consumers
 to expand its market area
 to achieve increase of growth rate in sales
 to deliver good and relevant services
 to forecast possible treats and benefits
3.3 Financial Objectives
 to increase profit margin
 to stablish stability of increase in sales
 to be more profitable
3.4 Target Market
Health is very important nowadays and medicine is
one of the necessities of human. According to
Philippine Statistic Authority (PSA), 29,035 total
target market of Katipunan Pharmacy in the age of
15 and above. More than 50% of it target market
consume medicine in pharmacy and this will
increase by promoting good quality of products and
services. Katipunan Pharmacy product targeting the
growing number of old ones and those who needs
maintenance for their health. By continuing the
good and accessible service this will give a good
progress and increase of number of target market
in the next three years.
3.5 Positioning
Katipunan Pharmacy will position itself as the
leading pharmacy in Katipunan and to the extent of
other geographical target. Katipunan Pharmacy is
providing a good quality of product and services to
its core costumer. The Katipunan Pharmacy
continuous effort of adopting change in the market
can take it to success. This will achieve by adopting
the change and trends propose by the marketing
strategy.
3.6 Strategies
To be the leading pharmacy in Katipunan, the need
to focus on making more realizable plan that can
help it happen. This will achieve by continuous
effort of the management and creating a good plan
for the innovation and adaptation of trends in the
business. Giving the best and what is good for both
the business and consumers will give a possible
result.
The pharmacy can use social media to reach their
target market whenever they may be. It helps a lot
to evaluate customer’s satisfaction and it can easily
serve the consumer in their concerns. This also can
use as a tools of advertising products offered that
helps the consumer knows more and what benefits
they can get in consuming the products.
3.7 Marketing Program
Katipunan Pharmacy marketing program is
comprised of the following approaches to pricing,
distribution, advertising, and promotion, and
customer service.
 Pricing. this will base on a per-product
retail price or not exceed to the price given
to the government regulation.
 Distribution. direct-to-customer will be
use in this approach.
 Advertising and Promotion. The
pharmacy will use the social media by
making their own page in spreading
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 awareness about their product’s offered.
This is a wide range of advertising that
helps a lot to promote their product in a
wider area.
 Customer Service. The pharmacy will train
their personnel on dealing customer and
reading prescribe medicine and develop
their skill on how to deal in different
customer behavior.
3.8 Marketing Research
Katipunan Pharmacy is located less accessible than
their main competitors, but this is not a hindrance
for their business to be more profitable. Katipunan
Pharmacy earn the customer loyalty not just
because of their good quality of products and
services but also because of their popularity and
strong reputation in serving the local consumers.
They build their name for over 11 years in operation
that gives it an edge to their competitors. It
provides their consumers a lot of variety of
products that their main competitors can offer. The
Pharmacy is not just building the name of its own
but also for the people of Katipunan as it brings the
name of municipality.
growth and then you can get the sales forecast after
the implementation of the plan.
Ex. 15-44 yrs. old have 5% average market growth
and have 60% total profit share
Computation;
P900,000 x 60% = 540,000 x 5% =27,000
P540,000 + P27,000 =P567,000(total sales)
P567,000 x 5% + P567,000 = next year growth
The direct cost of sale is the cost of goods sold. To
get the DCS, you need to deduct the possible profit
to the total sales.
DOH provides the markup price for all health
related products. Only 5% to 10% allowed with
accordance to the law. In this case we assumed that
all the products of katipunan Pharmacy has 10%
markup price, that 10% markup is the one we use
as a profit.
formula;
profit = total sales x 10%
DCS = profit – total sales

4.0 Financials
This section will offer the financial over view of
Katipunan Pharmacy related to marketing activities.
Katipunan Pharmacy will address sales forecast,
expense forecast, and indicate how these activities
link to the marketing strategy.

4.1 Sales Forecast

This sales forecast shows the Katipunan Pharmacy
estimating sales in the future to help them for the
decision making. There are lot of groups in Table 2.1,
as you can see instead in listing it all, we comprised
them and make it two groups to make it more
relevant to the reader.

Annual Sales Forecast

Sales forecast is important to identify the profit
margin and see how the plan affects the margin.

To calculate sales forecast, assuming that the

pharmacy sales have 75,000 pesos per month or
900,000 a year, get the total sales contribution of
each target market to the total annual sales. After
getting their total sales contribution add the
additional percentage from their forecasted market
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4.2 Expense Forecast

The expense forecast helps the management of Katipunan Pharmacy to establish a good information
for a better implementation of the marketing plan. This will be the guide for the management in step
by step process in implementing plan.

Milestones
Katipuna Pharmacy should identify which should be done first and what would be the proponent of each
proposed plan with the corresponding budget.

We assumed that that advertising campaign cost P2,500 including the promotion and advertising the
vacancy needed for the proposal.

Other plan doesn’t need to have a budget because it only cost effort by the management.

Marketing Expense Budget

In implementation of the plan you need to come up with the budget for the realization of the plan.

By reading this marketing expense budget table, the management can have a views on how can the plan
affects the profit of the business.

The lower the percent of sale the better as shown in the table. The contribution margin shows the sales
deducted all the expense including the cost of goods sold. The contribution margin/sales percentage is
the percentage of what is the contribution of the expenses to the sale.

Percent of sales =TS and ME /TS (table 4.1) x 100 CM/sales = CM/TS (table 4.1) x 100

Contribution margin= TS (table 4.1) –cost of sales (table 4.1) –TS and ME

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 Remedies
5.0 Controls
 Forecast possible budget and expenses
The marketing plan will be the guide of Katipunan
before come up with the plan to avoid
Pharmacy management to stablish more efficient
waste of time and effort.
and effective services towards their core customer.
The following areas will be monitored to measure
performance:

 Revenue: monthly and annual

 Expense: monthly and annual
 New time of service development
 New-hired personnel

5.1 Implementation
In order to accomplish each of indicated programs
in the milestones (Table 4.2), the management
should allocate budget and should be on time as
indicated individually. Approved by:
5.2 Marketing Organization
The manager will be responsible for all activities
regarding marketing programs. The Head
Pharmacies/Owner will serve as guide of the flow in Proprietor
implementation.

5.3 Contingency Planning

Difficulties and Risk

 Insufficient resources
 Lack of knowledge in marketing
 Already-stablished competitors
 Changes in environment
 Consumers buying behavior

Remedies

 Come up with contingency fund

 Do further research regarding on
marketing activities
 Innovate and continuous update on trends
 Maintain good services

Worst-case risks

 Determining that the business cannot

support changes. To realize all the plan for
the future the firm must come up or
prepare a budget. This is the worst case
because even if the business stablished
plan to come up with a solution in every
difficulties and risk if the organization has
no budget the plan will be nothing.

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