Lozari, Nicole Marcelo, Jorell Isaac
The Generics Pharmacy
Company Profile
The Generics Pharmacy (TGP) started out as small pharmaceutical company in 1949.
Acknowledging the dire need for quality medicines but at affordable prices, the company
focused on generic medicines to provide the Filipino with a more affordable alternative.
In 2001, the company ventured into retail, starting only with a single outlet. As demand
grew, the company decided to bring their medicines more accessible to all the far reaches of the
country through the FRANCHISING business model. The historic year was 2007, starting with
20 outlets within Metro Manila.
Now as TGP, it revolutionized the entire Pharmaceutical healthcare industry and
pharmaceutical retail with its bold and different path for growth. Who would think that a
pharmacy or a drugstore with pure generic drugs rapidly take off? After the initial struggles and
birth pains, the healthcare landscape has embraced and accepted generic medicine as it has
proven to be effective and of high quality standards and yet, truly affordable for every Juan.
Now only on its 10th year in full pharmacy retail and franchising, TGP has dotted the
entire archipelago with more than 1900 strong outlets, making healthcare accessible to every
Filipino. As expansion grew rapidly, so with the numerous awards and recognition TGP received
from various entrepreneurship, retail, franchising and marketing organizations. This is solid
proof that TGP is now well accepted and trusted as source of quality and affordable generic
medicines. The massive reach and accessibility made TGP a friendly neighborhood pharmacy
outlet. TGP is now the largest retail pharmacy chain in the country.
How to Apply for a Franchising Business
a) Submit the following:
Letter of intent
Vicinity or location map of the proposed site
Filled-out Franchise Prequalification Form
Resume with colored ID
b) They will review and evaluate your qualifications thoroughly.
c) If qualified, we will invite you to a business meeting to discuss the details and terms of
the franchise prior to signing the franchise agreement.
Application Requirements
a) Franchise Fee
The total investment for TGP franchise is about P600,000 to P800,000 for an
outlet. This includes the franchise fee as well as a total support system necessary to run
TGP.
b) Franchise Agreement
c) Location
The company requires a TGP location to be at least 1 kilometer away from the
nearest TGP drugstore or be located inside a mall with a cinema. Each TGP outlet must
be at least 15 sq. m. in size; otherwise, it won’t be approved by the Food and Drug
Administration (FDA) of the Philippines.
d) DTI, BIR, and SEC Permits
e) FDA Requirements
f) City Hall Permits
Application Procedures
a) Attend TGP Business Seminar at the scheduled date.
b) Call Mr. Emer Sanchez at 821-1111 local 417 to register.
c) Look for location and have it approved by TGP Franchising Corporation. Location must
be 1 kilometer away from the nearest TGP drugstore or inside a mall with cinema
house(s)
d) Register with DTI if single proprietorship and SEC for Corporation.
e) Get a lease contract from landlord.
f) Proceed with the renovation (shelves and signage)
g) Look for a licensed pharmacist.
h) Complete the FDA requirements and send to The Generics Pharmacy.
i) Apply City Hall permits.
j) Apply BIR permits.
k) Apply permit for POS and/or Sales Invoice & O.R.
l) Be prepared for actual training (franchisee, pharmacist, and assistant)
Success Stories
How ex-employee became a successful franchisee
MANILA – Franchising allows you to escape the "corporate world" and become an
entrepreneur that creates jobs and creates wealth. It’s not always easy, but the rewards both
financially and emotionally are immeasurable.
Owning over 60 branches of The Generics Pharmacy (TGP), Roderick Battung has not
only proven to be a very successful franchisee, he has also generated hundreds of new jobs.
Battung was a former employee of pharmaceutical companies such as Glaxo Smith
Klein & Xeno Pharmaceuticals before he decided to “get out of the corporate world.”
He wanted to augment his income as well as help provide employment for friends &
relatives, so he naturally turned to franchising.
Like most potential franchisees, he started looking at various industries from food, water
refilling stations and gas stations.
But after a long search, he decided to go into The Generics Pharmacy because he “saw
the potential of the Pharmaceutical Retailing Industry and also felt the sincerity of Mr. Ben
Liuson (owner of TGP) in helping the franchisees.”
He also adds that “the business concept has a ‘heart’ and it caters mostly to low income
earners, so I saw great potential in this business.”
Decisiveness is key in business, and especially when you are franchising a brand that
you just know will do well.
“One day, a TGP franchisee (Jojo Macua), who was working at our Pharma Company
that time, showed me his drugstore located in Tondo. I was amazed to learn that he has more
than 1 branch and was managing it while working. He intimated that aside from profits, the smile
they bring to customers buying low-priced medicines gives him much joy. Immediately, I asked
my mother to spare me a space in her rented place in our hometown. Jojo, helped me
accomplish the application at TGP. In a few weeks, the approval came. We immediately
recruited a pharmacist, started renovation of the site, and prepared our staff,” said Battung.
From the first store, he opened numerous branches in Cagayan Valley. And when he
heard about a franchisee selling few of her branches in Laguna, he immediately grabbed the
opportunity. From there he’s expanded to Ilocos Region, Laguna, Leyte, Iloilo, Negros
Occidental, Agusan Del Norte, Surigao Del Sur and Davao City.
Being in a franchise that has a very well-advertised brand name, steady supply of stocks
and low-priced products that caters to many Filipinos in the province, Battung has truly enjoyed
his franchise experience with TGP. But of course there are also challenges, so for would-be
franchisees, he has a few pieces of advice:
You must be willing to do your share and not rely only on the Franchisor. Use your time
and energy and talent and capability to make the business grow. Success is not automatic, nor
assured! You need to put good business sense into it.
Choose a Franchisor you can trust. One who genuinely seeks after your welfare,
wanting you to succeed, and not just interested with your Franchisee Fee or purchase of their
products
Franchising has helped Battung transform from being an employee to being an
employer, become more aware of economic conditions of many Filipinos, especially in the
remote areas, and most especially have more time for family and religious activities.
When asked whether it has been profitable for him and if he plans to open more stores,
he gives an emphatic “Yes!”
How Benjamin Liuson's faith fuels The Generics Pharmacy's growth
If you were among the first of The Generics Pharmacy's (TGP) franchisees, you may still
remember Benjamin Liuson from the seminars he would give at Francorp Philippines' head
offices.
"I'd always tell the applicants that...all of us go to either heaven or hell," he recalled. "The
most important thing in life is for us to land in heaven. You work and think of your problems, but
a hundred years from now, all of us will be gone," he recalled in an interview with Entrepreneur
Philippines.
A century can go by in "just the blink of an eye," and he believes it is essential to make
the most of the time we are given by thinking of "how we can evangelize and help people how to
go to heaven."
As a devout Christian, his faith has driven the TGP president and CEO to stick to his
guns when it comes to the business' commitment to providing Filipinos with affordable and
accessible medicine.
From day one, he has insisted on a branch-wide 30% discount for senior citizens rather
than sticking to the legally mandated 20%. "A president of a multinational company once asked
me, ‘Do I want to make more money and increase my sales?’ He said the 'secret' was to
increase my prices," he said. "I told him no. Our gross margin is high enough, so why can't you
give 30%?"
Apart from the many scholarships and medical missions backed by TGP, Liuson's
advocacy extends to lending spiritual aid as well: He has printed and given away millions of
copies of the Holy Bible in six dialects and more than 800,000 copies of the devotional book,
Our Daily Bread.
For Liuson, empowering others to succeed as TGP franchisees is a kind of wealth in
itself. Since its first branch in Pasay opened back in 2007, thousands more have mushroomed
across the country—as of this writing, TGP has 1,813 branches all over the Philippines, and
growing.
It is a success story that parallels David and Goliath, as Liuson used to be a major
supplier for some of the leading drugstore chains in the country—it is an enviable position that
he gave up in order to start his own generic medicine franchise.
But when asked about TGP's meteoric growth, Liuson is more likely to quote passages
from the book of Deuteronomy. "The Bible says when you acquire wealth, remember the Lord
your God, because it is He who gives you the power to get wealth," he said.
The formalized processes of a franchise branch may give one a leg up in a cutthroat
business landscape—a formula for success, so to speak—but he is hard-pressed to take all the
credit for his near-ubiquitous drugstore chain.
Instead, he believes it comes from a higher power. "We can share information, but it
doesn't mean that if you do [all these], you will be successful also," he said. "If God wants to
give this person success, what can I do? Whether others who follow will be successful or not,
the decision or the reason is from God." – with a report from Victoria Vizcarra
