ELIZABETH RETAIL PHARMACY

A BUSINESS PROPOSAL ON ESTABLISHMENT OF RETAIL

PHARMACY
LOCATED AT A.T.C KOFAI ARDO-KOLA
TARABA STATE

PRESENTED

TO

NATIONAL YOUTH SERVICE CORPS

EBONYI STATE

IN PARTIAL FULFILMENT AND GUIDELINES FOR CREDIT

FACILITY TO BUSINESS OPERATORS

BY

ELIZABETH FIDELIS DANLADI

GSM: 07060752648 EMAIL: fideliselizabeth520@gmail.com
CALL UP NUMBER: NYSC/TUJ/2021/250797
STATE CODE: EB/21C/0085
OCTOBER, 2021.
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Industry Overview

What really is the pharmaceutical business all about? The pharmaceutical industry
is known for developing, producing, and marketing medicine (drugs). Retail
pharmacy business is known to be involved in the sale (retailing) of generic or
brand medications; some big pharmaceutical stores even engage in the sale of
medical devices.

All over the world, the pharmaceutical industry is highly regulated. This is so
because of the devastating effect of fake drugs and drug abuse which can’t be
quantified. As a matter of fact, there are several universal laws and regulations that
govern the patenting, testing, safety, efficacy and marketing of drugs. For example;
in Nigeria, new pharmaceutical products must be approved by the National Agency
for Food Drug and Administration Control (NAFDAC) as being both safe and
effective before they can be allowed to go into the market. Any entrepreneur
(investor) who has a plan of starting his or her own retail pharmacy business must
comply with the Regulation of Retail Pharmacy Businesses from the
Pharmaceutical council of Nigeria (PCN).

Anyone who wants to establish a retail pharmacy business must follow the
regulations that guide the sourcing, storage, sale, supply and keeping of records, in
respect of medicinal products. Other requirements that they are expected to comply
with are; requirements that relates to staff, premises, equipment and procedures are
also stipulated.

Pharmacy Business Plan Executive Summary

Elizabeth Retail Pharmacy Store will be located in one of the busiest streets in
A.T.C Kofai Ardo-Kola, Taraba State, Nigeria We have been able to lease a

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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 A.T.C Kofai Ardo-Kola
Elizabeth retail pharmacy store 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, postcards (greeting cards), convenience foods and other related
products.
We are in retail pharmacy business to retail a wide range of pharmaceuticals for
our customers, at the lowest prices they can get anywhere in A.T.C Kofai Ardo-
Kola Our employees 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.
Elizabeth Retail Pharmacy will operate on 16 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.
Elizabeth Retail Pharmacy Store is a family business that is owned and managed
by Elizabeth Fidelis and Family.

Our Products
Elizabeth Retail Pharmacy Store will retail a wide range of prescription drugs from
different manufacturing brands to customers who are based in A.T.C Kofai Ardo-
Kola We also engage in the sale of beauty products, cosmetic, postcards (greeting

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cards), baby products, convenience foods and other related products (small scale
medical equipment / instruments et al).

Our Mission and Vision Statement

 Our vision is to become the largest retail pharmacy store in the whole of
Taraba and Nigeria
 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
A.T.C Kofai Ardo-Kola

Current Status of the Business

The business is not a startup one, but needs reimburse to transform it to a full-
flagged retail pharmacy.

Our Business Structure

Elizabeth Retail Pharmacy Store 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 employees 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 stake holders (the owners, workforce, and
customers).
As a matter of fact, profit-sharing arrangement will be made available to all our
management staff and it will be based on their performance for a period of three
years or more. These are the positions that will be available at Elizabeth Retail
Pharmacy Store;

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  CEO (pharmacy owner)
 Pharmacist (Manager)
 >Pharmacist technician! Cleaners (3)
Pharmacy Job Roles and Responsibilities
Chief Executive Officer -CEO:
 Responsible for providing direction for the business.
 Creates, communicates, and implements the organization’s vision, mission,
and overall direction — i.e. leading the development and implementation of
the overall organization’s strategy.
 Responsible for fixing prices and signing business deals.
 Responsible for recruitment.
 Responsible for payment of salaries.
 Responsible for signing checks and documents on behalf of the company.
 Evaluates the success of the organization.

Pharmacist:

 Responsible for managing the daily activities in the pharmacy.

 Provides advice about health issues, symptoms and medications in response
to customer enquiries processes prescriptions and dispensing medication
orders, sells and controls medicines and other stock meets medical
representatives
 Interfaces with third - party providers (vendors)
 Any other duty as assigned by the CEO
Pharmacy Technician
 Ensures that the store facility is in tip top shape and conducive enough to
welcome customers (This includes turning on equipment such as computers,
scales, printers and fax machines)
 Ensures that goods and products are properly arranged
 Responsible for processing prescriptions

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  •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 floor manager (Pharmacist)
Cleaners:
 Responsible for cleaning the pharmacy facility at all times
 Ensures that toiletries and supplies don’t run out of stock
 Cleans both the interior and exterior of the pharmacy facility
 Handle any other duty as assigned by the floor manager (Pharmacist)
Pharmacy SWOT Analysis

Elizabeth Retail Pharmacy Store is not looking forward to operate a regular retail
pharmacy store, because we want to become the biggest retail community
pharmacy in A.T.C Kofai Ardo-Kola. We want our pharmacy to be the number one
choice of all residence of A.T.C Kofai Ardo-Kola.

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 retail pharmacy store.

Despite the fact that our CEO (owner) has a robust experience in retail pharmacy
business, 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
Elizabeth Retail Pharmacy Store;

Strength:
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Our location is one of our strength. The business model we will be operating on
(physical store and online store) will be opened for 16 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 retail pharmacy business 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 A.T.C Kofai Ardo-Kola
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 (A.T.C Kofai Ardo-Kola).

Market Analysis

Market Trends

The market trend in retail pharmacy 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 retail pharmacy store
must be ready to play by the book.

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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 retail pharmacy business is to
engage in opening various outlets in key cities around the Nigeria

Our Target Market

Elizabeth Retail Pharmacy Store is in business to service a wide range of

customers in A.T.C Kofai Ardo-Kola, Taraba State. We will ensure that we target
self - pay customers (who do not have drug plans), mail order customers, and walk
in customer’s 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 staff 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
 Clinics and hospitals
 Business People
 Elderly people
 Expectant Mothers
 Sports Men and Women
 Students

Our Competitive Advantage

The retail pharmacy industry is known to be highly competitive in the Nigeria and
in most parts of the world.

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The industry is growing and there are alternative ways through which clients /
patients can get their medications / prescriptions / drugs.
There are alternative provides like mail-order firms, grocery chains, mass
merchants; 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 pharmacy stores will always struggle with larger
pharmacy chains when it comes to pricing power and brand recognition, which is
why smaller retail pharmacy store 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 retail pharmacies ensure that each order carries a printout. The printout
accompanies the medications providing directions on how patient are expected to
take the medications, other drugs that should be avoided concurrently, and other
useful information,

Elizabeth Retail Pharmacy Store is coming into the market well prepared to
favorably compete in the industry. Our pharmacy is well positioned and visible; we
have enough parking space with good security.

Our management staff are well groomed in retail pharmacy and all our employees
are trained to provide customized customer service to all our clients.

We are going to be one of the few retail pharmacies in Taraba that will be opened
16 hours a week and 7 days a week. We have enough staff that are ready to run a
shift system. Elizabeth Retail Pharmacy we 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 available in our store at all times.
It will be difficult for customers to visit our store and not see the product that they

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are looking for. One of our business goals is to make our pharmacy a one stop
pharmacy shop.

SALES AND MARKETING STRATEGY

Sources of Income
Our source of income will be majorly in the retailing of prescription drugs and
over-the-counter drugs.
Elizabeth Retail Pharmacy will also generate income from the sale of beauty
products, cosmetic.

Sales Forecast

It is important to state that our sales forecast is based on the data gathered during
our feasibility studies, market survey and also some of the assumptions readily
available on the field. Below are the sales projections that we were able to come up
with for the last year of operation;

First Year: ₦300, 000 (From Walk - in customers) + ₦250,000 (From Mail Order
customers)

N.B: This projection is done based on what is obtainable in the shop 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.
Marketing Strategy and Sales Strategy
The marketing and sales strategy of Elizabeth Retail Pharmacy Store 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 A.T.C Kofai Ardo-Kola .We will also ensure that we have a
wide range of drug supplies in stock for both quick shipment and store front pick
up.

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All our employees 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 and feasibility studies in order for us to be able to be able to
penetrate the available market and become the preferred choice for residence of
A.T.C Kofai Ardo-Kola 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 A.T.C Kofai Ardo-Kola, Taraba
State. In summary, Elizabeth Retail Pharmacy Store 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 based newspapers, local TV and radio
stations
Leverage on the internet to promote our business
Direct marketing
Word of mouth marketing (referrals)
Enter into business partnership with hospitals, health care provider and health
insurance companies.
Attend pharmaceutical related exhibitions /expos.
Publicity and Advertising Strategy
Regardless of the fact that our retail pharmacy store is well located in A.T.C Kofai
Ardo-Kola we will still go ahead to intensify publicity for the business. We are

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going to explore all available conventional and non-conventional means to
promote our retail business.

Elizabeth Retail Pharmacy Store has a long term plan of opening outlets in various
locations all around Taraba Sate which is why we will deliberately build our brand
to be well accepted in A.T.C Kofai Ardo-Kola before venturing out. As a matter of
fact, our publicity and advertising strategy is not solely for wining customers over
but to effectively communicate our brand to the general public. Here are the
platforms we intend leveraging on to promote and advertise Elizabeth Retail
Pharmacy Store; Place adverts on both print (community based newspapers and
magazines) and electronic media platforms

Sponsor relevant community programs.

Install our Bill Boards on strategic locations all around A.T.C Kofai Ardo-Kola.

Engage in road show from time to time.

Distribute bur fliers and handbills in target areas.

Position our Flexi Banners at strategic positions in the location where our retail
store is located.

Our Pricing Strategy

Elizabeth Retail Pharmacy Store will work towards ensuring that all our products
(prescription drugs and over-the-counter drugs and beauty products, cosmetic, are
offered at highly competitive prices comi5are to what is obtainable in A.T.C Kofai
Ardo-Kola and Taraba State.

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

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lower price than what is obtainable in our competitors store means that we will
only reduce our profit margin.

Payment Options
At Elizabeth Retail Pharmacy Store, 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 Point of Sale (POS) Machine
Payment via online bank transfer (online payment portal)
Payment via Mobile money
Check (only from loyal customers)
In view of the above, we have chosen banking platforms that will help us achieve
our payment plans without any itches.

Our Startup Expenditure (Budget)

This is the key areas where we will spend our start -up capital on;
 The Total Fee for Registering the Business in Nigeria- ₦150.000
 Legal expenses for obtaining licenses and permits- ₦50,000.
 Cost for hiring Consultant - based on negotiation
 Cost for payment of rent for 12 months at ₦105, 600.
 Cost for Shop remodeling (construction of racks and shelves) -₦390,000.
 Operational cost for the first 3 months (salaries of employees, payments of
bills et al) -₦450,000
 The cost for Start-up inventory (stocking with a wide range of products)
₦3,500,000
 Storage hardware (bins, rack, shelves,) ₦10,720
 Cost for Supplies (Assorted bottles, boxes, envelopes, etc. for dispensing
and shipment) - ₦9,000
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  Cost for store equipment (cash register, security, ventilation, signage) —
₦80,750
 The cost for the purchase of furniture and gadgets (TVs, tables and chairs et
al): ₦55, 000.
 Miscellaneous: ₦198,930

TOTAL ₦5,000,000
We would need an estimate of ₦5, 000000 to successfully set up our retail
pharmacy store in A.T.C Kofai Ardo-Kola
Please note that this amount includes the salaries of all the staff for the first month
of operation.
Generating Funding I Startup Capital
Elizabeth Retail Pharmacy Store is a private business that is solely owned and
financed by Elizabeth family. They do not intend to welcome any external
business partner which is why they have decided to restrict the sourcing of the start
- up capital to few major sources. These are the areas Elizabeth Retail Pharmacy
Store intends to generate our start -up capital.

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