If you’re a small startup, facing the giants doesn’t usually cross your mind. That’s why you’ve got to admire the guts of The Generics Pharmacy not only for going head to head with its competitors but especially for emerging as a brand to beat.
Only four years in the market, this retailer of generic medicines has grown its store network to over 1,300 and its roster of employees to over 4,000. And among its 500 franchisees, more than half have multiple units.
It attributes its success to finding the perfect location. While others obsess about foot traffic, demographics, and accessibility, TGP mainly looked at where its competitors were and made sure it gets a spot somewhere near it.
For one, this setup allows a company to benefit from the marketing efforts of its rivals. The underdog will have higher chances of getting noticed by consumers who would otherwise not know of its existence. Also, a group of competing stores tends to attract more customers than those going solo.
“Being in the right location is a key ingredient in a business,” says Joy C. Flores, franchise operations manager at TGP. “By putting the branch near its competitors, we are very sure that we have an edge in terms of pricing and completeness of stocks,” and therefore empowering customers “to choose what will give the best value for their money,” she adds
Before putting up a new branch, TGP carefully evaluates proposed locations from franchisee applicants. For the company, a perfect location is: Accessible to target consumers; next to a leading drugstore chain and small community drugstores; highly populated with heavy foot traffic; near pick-up and drop-off points and near public markets or supermarkets.
“Although we don’t recommend any area where a potential franchisee can get a location, we give them tips in finding a potentially profitable location. We also make sure that all angles are considered in evaluating the proposed site for an outlet,” shares Flores. Upon submission of the proposed location, TGP then conducts a comprehensive feasibility study to ensure that the proposed site will give maximum profit for the franchisee.