Introduction

Mercury Drug’s founder, the late Mariano Que, became an orphan at an early age. And in order for him to
get by every day, he needed to work hard. After surviving the World War II in 1945, he saw that there
was scarce access to medicine, so he thought of using Php100 to purchase the needed “miracle” drug
called sulfathiazole, which was believed to cure many kinds of illnesses. `
Though deprived of being able to study, Que had a background in handling medicines through working in
a drugstore prior to the war. Using a pushcart, he started selling the medicine he got from a drug dealer in
Bambang Street. He set himself apart by building trust with his customers. He eventually had a reputation
for quality products and fair prices since the market then was filled with sellers who sometimes sold fake
or expired medicine at an expensive price. From a single cart, his profit was able to grow the business into
1,000 stores around the Philippines, creating the country’s largest drugstore, Mercury Drug Corporation.
The first Mercury Drug store opened in Bambang in Manila on March 1, 1945. In the 1960s, the Ayala
group invited Que to set up the second branch in Makati City. Under Que, the store became the pioneer of
pharmaceutical services like using centralized and computerized warehouses and refrigerators for
preserving medicines and drive-through services. It was also the first to introduce pharmacy counseling
and 24/7 service. In the 1970s, he then acquired Medical Center Trading Corporation which made his
company enter the business of selling medical supplies and equipment.
These, along with his good work ethics, enabled Mercury Drug to gain its current reputation and big
market share.
A. The Strategic Planning
For Filipinos, the name Mercury Drug has become a byword for medicines. Its slogan, Nakasisiguro
Gamot ay Laging Bago, is a guarantee of fresh and high-quality medicines sold in Mercury Drug,
whether branded or generic. Customers will always find what they need in Mercury Drug, and if the
medicine they need is not available in the branch they visit, Mercury Drug will only be glad to find it in
its other stores to ensure customer satisfaction. When the laws granting medicine discounts to senior
citizens and persons with disability were enacted, Mercury Drug readily implemented them, granting
the mandated 20% privilege discount, and exemption from the 12% VAT to all senior citizens. With its
millions of senior citizen customers, Mercury Drug could easily be one of the largest providers of this
privilege in the Philippines. Because of its exceptional customer service, Mercury Drug has kept a solid
customer base, making it one of the Top 10 Companies of the Philippines. It has also been cited as Top
Taxpayer in the communities where it operates. Vivian herself has been cited as the Philippines’ Top
Individual Taxpayer in 2012.
Ms Vivian Que-Azcona is the president of Mercury Drug Corporation, the Philippines’ leading
pharmacy retail business. The eldest daughter of the founder of Mercury Drug, Dr Mariano Que,
Vivian pursued a BS Pharmacy degree at the University of Santo Tomas, where she graduated cum
laude. Vivian passed the pharmacy licensure examination at the same time that she was learning the
ropes of pharmacy retailing. Under the direct tutelage of Dr Que, she learned the business and worked
her way up – from warehousing to distribution, from inventory and stock control to store operations,
from merchandising to marketing, from HR development and training to research, finance and overall
management – to prepare her for her eventual assumption of the top post in the company. She was
appointed Assistant General Manager in 1980, then Vice President and General Manager in 1984, and
finally President in 1998. Under her leadership, Mercury Drug has grown into a network of more than
1,000 stores nationwide. Altogether, the Mercury Drug network now employs the largest number of
pharmacists nationwide and absorbs the largest number of pharmacy student interns.
Weekly, Vivian meets with her management team, to enable sharing of ideas, concerns and best
practices to further improve Mercury Drug’s services. Through these meetings, the company has
initiated various customer value-added services, which are now well in place and well-known among
the pharmacy’s customers. These include Gamot Padala options of Call Order Pick-Up, Order Online
and Order Anywhere Pick-Up Anywhere to serve customers’ orders at their convenience; Drive-Thru
service, a first in pharmacy retailing in the Philippines; Pharmacy Counseling service to help customers
with medication queries; mercuryTV in-store health education service; Suki Card customer value card
rewarding members with good-as-cash points and discounts; and Gising 24 Oras 24/7 service in over
100 strategically-located stores.
Vivian strives to be a good citizen and a good corporate citizen. For her, there is no meaning to success
if she is not able to give back to those who have contributed to Mercury Drug’s success.
That is why Vivian and her management team never run out of ideas to make Mercury Drug’s
customers happy. Every Saturday, Mercury Drug offers Suki Sabado Special products at special mark-
down prices. Every month, it also offers Suki Extra Points on top of regular Suki points to reward Suki
Card members; and in selected Mercury Drug stores Bantay Kalusugan free clinics are offered,
providing various free medical services.
Mercury Drug also initiates nationwide promotions that offer huge prizes as a way of giving back to its
customers. In celebration of its 70th anniversary last March 1, 2015, Mercury Drug gave away more
than Php70 million in its Suki Panalo promo to 15,127 customers, with 70 customers winning Php1
million cash each, 217 customers winning Php7,000 worth of Mercury Drug gift certificates each and
14,840 customers winning Php20 E-load each. This turned out to be the largest promotional program in
the Philippines retail industry, with a record-breaking customer participation of more than 3 million
entries. Still, in Qtr 4 2015, part II of this promo will award 12 lucky customers with one Toyota Vios
car each.
B. The Strategic Management Process
Mercury Drug believes that it owes its success to the millions of customers who
have trusted and patronized the drugstore chain all throughout these years. As a way
of giving back to the people, Mercury Drug vows to bring quality, safe and
affordable health−enhancing and life−saving medicines closer to the public.
Mercury Drug engages in corporate social responsibility programs, through Mercury Drug Foundation,
as a way of giving back to the people for their loyal support through the years. At the very core of this
effort lies a strong sense of compassion inspired by the commitment to make a meaningful difference,
beyond pharmaceutical retailing, in the communities where Mercury Drug operates. By undertaking
sustainable social responsibility programs focused on health and education, the company hopes to help
build a healthy, educated and productive nation while remaining true to the spirit of service that has
given birth to Mercury Drug.
Mercury Drug’s pharmacies follow the American model, combining drug and medical equipment
sales with over−the−counter medicines, personal care items, basic household needs, cosmetics and
other beauty products, and the like. Most of the company’s stores are also equipped to store and sell
serums, blood plasma, albumin and similar biologically active medical products. In addition to its
drug−stores Mercury operates a chain of Mercury Drug Superstores. Generally attached to the
company’s pharmacies, the Mercury Drug Superstores extend the group assortment to include
convenience store and fast−food item.

C. Written Mission Statement

Mercury Drug is more than just a pharmacy - it is the country's trusted and caring health and wellness
partner, providing the widest range of branded and generic medicines, as well as a complete line of
healthcare and personal care products, including medical devices, and basic everyday needs.
The company’s mission is to continuously be the leading, trusted and caring drugstore. Mercury Drug
remains committed to its name as seen on its corporate philosophy of total and speedy customer service:
"To serve you, to have what you want, when you want it.”
Mercury Drug is to provide over the top service that will make Filipinos feel safe and being cared for.
They are also making sure that they are accessible all the time and their prices are affordable making their
service part of society’s success.

D. Benefits in Strategic Planning

 In order to be successful in the business and know your competitors, you have to benchmark. A
benchmark is a standard of excellence or achievement against which similar things must be measured
or judged. In other words, you look for the best company or person in your industry and study their best
practices.

The company has initiated various customer value added services, which are now well in place and
well known among pharmacy’s customers. These include Gamot Padala options of Call Order
Pick−Up, Order Online and Order Anywhere Pick−Up Anywhere to serve customers’ orders at their
convenience.

Drive−thru service, a first in pharmacy retailing in the Philippines; Pharmacy counselling service to
help customers with medication queries; MercuryTV in−store health education service; Suki Card
Customer value card rewarding members with good−as−cash points and discounts; and Gising 24 Oras
24ƒ7 service in over 100 strategically−located stores.

When the laws granting medicine discounts to senior citizens and person with disability were enacted,
Mercury Drug readily implemented them, granting the mandated 20% privilege discount and
exemption from the 12% VAT to all senior citizens.

The management never runs out of ideas to make Mercury Drug’s customers happy. Every Saturday,
Mercury Drug offers Suki Sabado Special products at special mark−down prices. Every month, it also
offers Suki Extra Points on top of regular Suki points to reward Suki Card members; and in selected
Mercury Drug stores Bantay Kalusugan free clinics are offered, providing various free medical
services.

E. Major Costs or Problems in Doing the Strategic Planning

F. Changes in the Strategic Planning Process

II. Comments (from the Group)

III. Conclusion

IV. Recommendations

References:

https://www.mercurydrug.com/index.html
https://apea.asia/philippines/hall-of-fame-ph-2015/mercury-drug-corporation/

https://www.scribd.com/document/340448064/324631830-Strategic-Audit-Mercury-Drug-Corporation