ChE143 HW 1

Map the industry value chain of the end-product/services related to your

research topic and then answer the following questions:
1. Who are the players in each link on the value chain?

Company Shares of Vitamins and Dietary Supplements in the Philippines in 2016

(Absolute Value: PhP 22291.20 million) Source: Euromonitor International

2%

25%

2%

27%

2%
2%
13%
3%
5% 6% 12%

United Laboratories Inc

USANA Health Sciences Inc

Pfizer Inc

Tynor Drug House Inc

Boehringer Ingelheim
GmbH

Abbott Laboratories Inc

White Beauty Phils Co

Nu Skin Enterprises Inc

Pascual Laboratories Inc

General Nutrition Centers

Inc

Others

2. Identify the main players and analyze their development as a

company, and how they went up the value chain.
http://www.unilab.com.ph/about/
STRATEGIC DIRECTION

United Laboratories is expected to launch affordable innovative products to further strengthen its

position as the biggest pharmaceutical company in the Philippines.

The company expressed a plan to expand in Africa by setting up an industrial unit in Nigeria and

begin with Ritemed products, its generic brand, to reach out to a larger consumer base.
A privately-owned business, United Laboratories started out from a small drugstore in 1945 and

thrived to be a noteworthy player in the Asia-Pacific region.

Even though United Laboratories core industry is its pharmaceutical products, the companys
portfolio expanded through several beauty and personal care products.

COMPETITIVE POSITIONING

The company dominates consumer health with a 30% value share in 2015. This is comprised of its
active participation with different consumer health categories such as OTC with a 38% value share, and
vitamins and dietary supplements with a 26% value share, in which it ranks first in both categories as well.
Due to its wide range of products, United Laboratories also partakes in herbal/traditional products with a 6%

value share, ranking it third.

United Laboratories overall share was relatively on a par with its historic share with a marginal
decline from the beginning of the review period. Nevertheless, it thrives to place its brands at the top of their
categories by investing in different promotional activities to reach out to more consumers and create

nationwide health awareness.

The companys wide array of products and extensive collection of brands enable it to cover both the
emerging channels and mature areas of the market. It does well tapping into the current market dynamics by
introducing new products and investing in famous local celebrities as ambassadors, such as the entry of
Ritemed StopCough in the fast-growing category of herbal/traditional cough, cold and allergy (hay fever)
remedies. Nevertheless, the company still seeks to strengthen its renowned brands by continually pursuing
to stir consumers interest through promotions and campaigns toward health awareness. This was evident by

enhancing its Biogesic brand and promoting it through charitable events.

United Laboratories has one of the widest product portfolios in the country with multiple brands in a
single category cementing its large value share in 2015. Some of the countrys famous brands
by UnitedLaboratories in consumer health include Biogesic, Alaxan, Neozep, Kremil-S and Ceelin. It has
strong dominance in analgesics, cough, cold and allergy (hay fever) remedies, digestive remedies and

vitamins and dietary supplements.

One of the reasons why United Laboratories has a large consumer base is because its products
prices are relatively competitive. Consumers from low to high-income groups are able to afford its products

through the companys high quality collections and generics.

United Laboratories is a renowned innovator in the industry. Once in a while, it enhances its
longstanding brands such as Biogesic into Biogesic Fastfizz, a faster acting version of its previous format. In
addition, it released a children-friendly vitamin, Vitapops, in the form of candy rocks, which is very
appealing to younger consumers. Moreover, the company is rich in developing ways to market its products,
whether they are recently launched or older. Through campaigns and partnerships with the likes of World
Vision, universities, government agencies and other private organisations, the company is able to infiltrate
deeply into the local communities.

STRATEGIC DIRECTION

Pascual Laboraties Inc claims to be a company with strong regard for ethics and its workforce, and
will continue to strive for innovation and fortify the success of its brand, Ascof. It will look to produce a more

affordable and extensive array of products to embrace a larger consumer base.

Pascual Laboratories recently launched its new brand ambassador, Robin Padilla, a famous local

celebrity, as its aggressive move to further popularise one of its most successful products, Ascof.
The company has been privately owned for over 60 years in the country, providing Filipinos with

affordable yet effective pharmaceutical products.

Pharmaceutical products including consumer health and an increasing number of generics is the
core business of the company.

COMPETITIVE POSITIONING

Ranking 10th in overall consumer health, Pascual Laboratories Inc held a 2% value share in 2015. Its
biggest success is the warm recognition of consumers towards its Ascof brand of lagundi-based cough syrup.
This is evident by its second rank in herbal/traditional products where it held a 13% value share in 2015.

The companys share grew as demand for its product also swelled. The support it received from its

customers boosted growth in value share in herbal/traditional products. From Ascofs entrance in 2006 with
initial share of 6%, it more than doubled to hold a 13% value share in 2015. This is evidence that more and

more consumers are shifting to herbal remedies for treating their coughs.
With the growing consumer base in herbal/traditional products, Pascual Laboratories is not being left
behind as it leads the market dynamics and stirs up consumer interest. It is situated in a fast-growing
category where consumers increasingly prefer organic-based products rather than chemical-based ones. The
growing awareness of the effectiveness of locally-processed herbal remedies affects consumer health as a
whole.

The company is not limited by its Ascof brand as it has an extensive collection of analgesics, cough,
cold and allergy (hay fever) remedies, other herbal/traditional products and vitamins and dietary
supplements. Through this wide range of brands, the company is able to cater to a large consumer base

made more possible by its generics brand, Pharex.

Its products are positioned from low-mid range levels making it far-reaching to a huge proportion of
the population. The company upholds its passion in providing healthcare to Filipinos and is evident by its

efforts to release more competitively-priced products.

The company can be considered a leader in the market while it also follows some established trends
as well. The success of Ascof as an organic-based cough syrup cemented its leadership and innovative
eminence in consumer health in the Philippines.

3. Where in the value chain is your research pertinent?

R&D, specifically product development

4. What differentiations do you think are needed or are possible? Expound
on your answer.
5. What are the cost components of your product? Where are the
opportunities for reducing cost? Discuss.
a. Raw material sunflower oil, safflower oil (for natural vitamin E)
b. Encapsulation material
c. Processing (other materials, equipment) research
d.
6. If you wanted your product to compete in the global value chain,
discuss your strategy and describe your product.

SUPPLIER --

PRODUCTION UNILAB, Pfizer, GSK, Pascual

R&D Design Production Marketing and Sales Service -

DISTRIBUTION

BUYER

DISPOSAL