Elizabeth Pharmaceutical Company is a network of strong and strategically positioned Pharmacy involved in the distribution of high quality drugs and hospital equipments. Our major target market is the major cities around Nigeria.
- Location: The Firm is located at #5 Chidi Street, Elelenwo, Port Harcourt, Rivers State. The Elizabeth Pharmaceutical Company’s main goal is to provide prescription medications for our customers at the lowest prices on the market. We will be able to sell prescriptions at reduced prices by carefully maintaining efficiencies in our operations and by targeting a specific segment of the market – those customers who pay for their prescription medications themselves. By focusing on this segment it gives us additional efficiencies – we avoid disruptions in cash flow often associated with insurance payments and we can eliminate unnecessary services for the type of knowledgeable, repeat customer taking maintenance-type medication.
- Company’s Ownership; Elizabeth Pharmaceutical Company is a family business that is owned by Mrs. Elizabeth Ejemizu and her immediate family members. The business will be fully and single handedly financed by Mrs. Elizabeth and her immediate family members.
The Elizabeth Pharmaceutical Company will operate from one store that will serve both mail order customers and those who visit in person. We will thrive by employing friendly and knowledgeable personnel, which, along with our great prices, will drive the repeat business that we will rely upon. We only expect that as the price of medication continues to skyrocket, The Elizabeth Pharmaceutical Company will appeal more and more to the customer’s sense of value and convenience.
Elizabeth Pharmaceutical Company will be led by Elizabeth, who has a wealth of experience in the pharmaceutical industry. Costs will be minimized by maintaining only one pharmacist and filling the void with pharmaceutical techs. We expect to reach profitability by our second year and will generate substantial sales by year three.
The vision for the first three years include:
- Exceed customer expectations with superior pricing
- Increase the number of customers by more than 30% per year
- Develop a business that survives off its own cash flow
The Elizabeth Pharmaceutical Company mission is to provide our customers with the best prices for their prescription medications. Our convenience and services will exceed the expectations of our customers.
Ø Keys to Success
The keys to success are:
- Satisfy our customers so they will return again and again
- Maintain low overhead and operating costs
- Provide better prices than all our competitors
PRODUCTS AND SERVICES
The Elizabeth Pharmaceutical Company offers a wide range of prescription drugs to patients based in Port Harcourt and beyond. Both generics and name brands are offered.
Elizabeth Pharmaceutical Company provides;
- Hospital equipments at affordable prices. We also provide
- Complementary Pharmaceutical services for individuals that purchase drugs from us.
- The benefits of our products include:
- High quality and availability of products
- Prompt delivery of services for online purchases
- Excellent customer care services
- Fair and lowest possible prices
In order for a customer to purchase medications mail order, they must first contact The Elizabeth Pharmaceutical Company over the phone. The customer then needs to either mail in the prescription, fax it, or email it. Once it is received and payment arrangements are complete, the medicines will be sent out to the customer via online. Local customers may stop by the store front to pick up the medications.
The Elizabeth Pharmaceutical Company will only service customers who self pay. The self pay customers will be attracted to the Elizabeth Pharmaceutical Company because of its superior prices. For many Nigerians that do not have drug plans, including the vast majority of Nigerians over 65, a discount on drugs is very welcome on today’s increasingly tight monthly budgets.
The Elizabeth Pharmaceutical Company will be able to survive on lower margins due to operating efficiencies gained through national mail order operations and not accepting insurance policy drug plans which hampers cash flow. The Elizabeth Pharmaceutical Company will also save money by not paying for customer’s unlimited access to a pharmacist. If a customer has a question regarding a drug, the pharmaceutical technician will attempt to answer it. As a last resort the pharmacist will provide the answer. Generally, the technician or the accompanying printed literature will answer the question.
This model of saving costs by not providing unlimited access to the pharmacist will be successful because the majority of customers will be customers who have been taking said drug for awhile, as opposed to a new prescription, and will not require their hand to be held during the transaction. They are interested in The Pharmacy as an inexpensive source for their medication.
With each order a printout will accompany the medications providing directions on how to take the medications, other drugs that should be avoided concurrently, and other useful information. The Elizabeth Pharmaceutical Company will be using computer print outs from industry software to reduce the cost of providing this information.
Note;-while the term “self pay” is typically associated with the notion that the customer is paying for the medication out of pocket without insurance, it is used in this context as the customer paying for the medications up front regardless if they have insurance. They may be paying out of pocket, or they may be paying up front and then submitting to their insurance company’s drug plan to reimburse them later.
Elizabeth has experience working with a major drug manufacturer, as a drug representative. He was able to see first hand the profitability associated with the prescription drug industry, as well as the inefficiencies with which most companies are plagued.
Ø Personnel Plan
The Elizabeth Pharmaceutical Company will employ the following people:
- Sales agents/phone representatives: two at month three, an additional person at month sixth.
- Pharmaceutical technicians: two at month two, a third at month six.
- Pharmacists: month two.
- Order fulfillment agents: two for month five, a third for month eight.
- Counter person/phone representative: one at month three.
The Elizabeth Pharmaceutical Company’s target market consists of two different groups, local customers or walk-ins, and mail order customers.
The Elizabeth Pharmaceutical Company will employ two different strategies to reach these two diverse market segments.
Ø Market Segmentation
Elizabeth Pharmaceutical Company’s customers can be broken down into two different groups, mail order customers and walk-in customers:
- Mail order customers. This group of customers orders their medication through the mail in an effort to save money. Generally, the mail order customers are older in age, typically over 50. In general, elderly customers consume more medication relative to younger people. The mail order customer will typically purchase maintenance medications – prescriptions for an ongoing ailment that requires regular treatment. This group of customers will also be more likely to purchase several months of medication at once.
- Walk-in customers. This group of customers are also looking for the lowest prices for their medication. However, they tend to purchase medications monthly at their local pharmacy, often at a higher price. There is not a common demographic for this group of people, other than living in the Portland metropolitan area. Some of these customers will pay for the medications out of pocket and some will submit a claim to their insurance company for reimbursement at a later date.
Ø Target Market Segment Strategy
The Elizabeth Pharmaceutical Company will seek to attract two different groups of customers and will thus have two strategies to attract them;
- We anticipate that by far our largest group of customers will be those who order through the mail. These customers will be targeted through an advertising campaign in magazines and newsletters that have an older (>55) audience who regularly need medication and are aware in advance of their needs..
- Walk-in customers will be targeted through advertisements in the local paper, “The Oregonian.” We will raise awareness for the Elizabeth Pharmaceutical Company and our low prices.
Ø Competition and Buying Patterns
Competition takes many different forms in the pharmacy industry.
- Chain pharmacies. These are state or national chains. The advantage to these chains are better prices through economies of scale, as well as personalized service. The personalized service takes the form of the chain having a record of your medication purchases as well as any allergies that you have disclosed to them.
- Local pharmacies. These are the pharmacies where you typically know the pharmacist and they know your medical history. This option is high in personalized service and convenience, and high in price.
- Mail order and Internet pharmacies. These are similar to The Elizabeth Pharmaceutical Company
Ø Competitive Edge
- Fair and lowest possible prices
- Availability of high quality and varieties of products
- Prompt delivery services for online purchase
The Elizabeth Pharmaceutical Company competitive edge is superior pricing. To do that we must maintain our position as the low cost provider by painstakingly ensuring that costs are kept low through operating efficiencies.
We will be able to do that by eliminating some of the services traditionally offered by pharmacies. For example, we will employ only one pharmacist and use pharmaceutical technicians to fill the void. As long as a pharmacist is on site during the hours of operation, we can use the pharmaceutical techs for all other capacities where other pharmacies use pharmacists. Other efficiencies are created by having only a small store front and conducting most of our business through mail order.
Finally, Elizabeth Pharmaceutical Company is not designed to hold the patient’s hand during their purchase. We expect that the vast majority of our customers will already be informed of how to take the medication, and any side effects or drug interactions that should be avoided. We will simply provide each patient with a print out of all the relevant information for consumption of the medication.
Ø Marketing Strategy
The marketing strategy will be based on targeted advertisements, appealing to the customer’s sense of value. The marketing campaign’s goal will to be increase awareness of The Elizabeth Pharmaceutical Company with their target market.
Ø Sales Strategy
The sales strategy will be based on generating long-term relationships with customers. To facilitate that, we will provide medications at superior prices, have medicines in stock for both quick shipment and store front pick up, and provide superior customer service. All sales agents will be trained to provide friendly, knowledgeable customer service. By keeping to these simple, yet effective, business practices, we expect that our customers will make The Elizabeth Pharmaceutical Company their exclusive source for medications. For some, medications are an integral part of their lives, so establishing long-term relationships will ensure a large, loyal customer base.
Ø Sales Forecast
During the first month we will focus on setting up the store front and generating both local and national visibility. Sales activity will begin in month two. Sales during months three through five there will mainly consist of local business through the store front. In month six we expect to see a jump in sales from mail order. Sales will grow steadily from month six on.