Franchise Help

What is Pharma Franchise? Procedure to become Franchise. How does Pharma Franchise/pcd business works?

What is franchise?
Franchise is a term which is defined as an authorization granted by a government or company or organization to an individual or group enabling them to carry out specified commercial activities, for example acting as an agent or marketing or sale for a company’s products. Franchise is Anglo-french word means ‘Liberty’. Liberty of work, time, money etc.

What is Pcd Pharma franchise? How can we define it?

Likewise it is an authorization granted by a pharmaceutical company to an individual or group or distributor that allow them to carry out pharmaceutical company’s proprietary knowledge, products, trademarks, brand names and other commercial activities at monopoly right or other mutual agreed term & condition for specific area for example marketing, sale, distribution, doctor’s promotion authorization/appointment of distributors etc for a company products or services. It also known as PCD marketing. PCD means propaganda cum distributors.Pharma Franchise/PCD is authorization of marketing and distribution rights at monopoly basis given by pharmaceutical company to pharma professional or distributor or group of professionals or distributors to use their brand name, company name and other commercial activity on behalf of company.Read more

What is the procedure to be a franchise/pcd of Pharmaceutical Company?
Different companies have different policies and term & condition for appointing franchise, so here it is difficult for providing accurate procedure. Few companies provide state wise franchise, some gives zonal wise but most of companies provide district wise franchise.

  • Choose molecule you want to market
  • Select company you want to take franchise
  • Send query to that company regarding franchise through mail or SMS or phone. Ask them for whether they have vacant for your area or not (recommended send queries to 4-5 companies)
  • If vacant, ask them to send product and price list
  • Finalize best possible franchiser for yourself
  • Make marketing agreement with mutually agreed term and conditions
  • Start working with your new associates

Read more

Is it good option for Pharma sales persons to take franchise/pcd of Pharma Company?
If you have good market relationship and strong hold in market and want to start own work, it is best option for starting own work with minimum investment. Read reason why one should start with franchise/pcd marketing

How much investment is required to own franchise/pcd of a pharmaceutical company?
Few franchise companies have target system and minimum order requirements but most of Pharma franchise companies don’t have any target or minimum order requirement. Start with companies that don’t have any minimum order requirement. You can start with less than 10000/-per month. It’s not big amount to start own work. Read More

Documents Required to Start Pharma Franchise?
You will require mainly two documents. One is wholesale Drug License Number and second is GST registration number. These two documents can be fulfill by own or by appointing a distributor/Stockist.

How many products I have to purchase to start?
You can start with any number of products. Even you can start with single product sale. Number of product doesn’t matter, how much you can sell that product that matters.

What are the common problems I can face during franchise marketing?
Starting franchise of company is like launching new company in that particular area. It’s like you are the first medical representative of company to launch products of the company to whom nobody knows the name. Similar problems you will face as you have faced during your first job. You have to establish new brand. You have to win fresh trust. You have to create fresh faith in market. read more here about problems

How much one can earn through Pharma franchise/pcd marketing?
Pcd Pharma franchise is you like own business. It’s depends upon you, how much you expand it. It’s your capacity to sell products. As much you can increase your sale, your income will increase with it. As we consider it roughly approx. equal to 20% of MRP of product but it can vary product to product or vary according to your view of working. With one lakh of primary sale you can earn approx. 15000 to 30000/- per month you can earn.

What are the Promotional and Marketing Inputs one received from Pharma Franchise Company?

Following promotional material is generally provided by pharma franchise companies to their franchisee or distributors for marketing and promotion. Companies can also provide material other than below:

  • Visual Aid
  • Working Bag
  • Product Cards/ Brochures
  • Reminder Cards
  • Catch Covers
  • Writing Pads
  • Dairies
  • Small Gift Articles
  • Visiting Cards etc.

Pharma Franchise/pcd marketing Agreement:
This is the mutually agreed term and conditions regarding franchise marketing at monopoly right basis for particular territory, district, state, zone or as agreed area. Agreement includes monopoly rights, area covered, payment term & conditions, transportation, tax, delivery etc. Read complete detail about pharma franchise/pcd marketing agreement here

Click here to download pharma franchise/pcd marketing agreement in editable format.

What is the future of Franchise/pcd marketing business in pharmaceutical sector?
Every year or with implementation of new government policy, everyone thought Pharma franchise business has no more future left but every time it proves it wrong. As number of companies is increasing, number of sale professionals increasing, open market, easy to start, no huge investment etc are few factors that are providing strong future to franchise marketing in pharmaceutical sector. Read more

What are the points or precautions need to take before selecting Pharma Franchise Company?
Before selecting Pharma Company for franchise/pcd marketing, you should be careful about it. Your money, time, reputation, relationships etc will be combined with your selection in future. In other words, your future depends at your selection. Read more

How to calculate retail margin, own margin, stockiest margin, scheme etc for Pharma franchise marketing?

You don’t have need to be mathematician to calculate all calculations. You just need to fix margins of retailer and your stockiest. Generally it is fixed for both in most cases e.g. approx. 10% for wholesalers and approx. 20% for retailers/chemist. Fix it according to market and make it flexible to boast your sale. Read in detail here: How to calculate margin, net rates, chemist/stockiest margin? read how to calculate your margin here How to calculate price to retailer and price to stockist?
Before starting your pharma franchise marketing, you should know how to calculate price to retailer(PTR)/price to stockist(PTS)/your margin/tax etc. It is easy calculation to easily calculate all things. Read complete calculation here
Alphabetical List of Pharma PCD/Franchise Companies:
“A” “B” “C” “D” “E” “F” “G” “H” “I” “J” “K” “L”“M” “N” “O” “P” “Q” “R” “S” “T” “U” “V” “W” “X” “Y” “Z”For List of Ayuvedic Franchise/Pcd Companies click hereElzac Herbals Vatson Remedies Sukhija Ayurvedic PharmacyState wise Franchise/PCD companies:
AndhraPradesh Chandigarh Delhi Gujarat Himachal Pradesh Haryana Karnataka Maharashtra Madhya Pradesh Punjab Rajasthan TamilNadu UttaraKhand UttarPradesh West Bengal, Assam, Imphal and North Eastern states of India Miscellaneous

How does Pharma Franchise/pcd business works?

Basic things in Pharma franchise and marketing are not so complex. It is as simple as you appoint distributor for your company that will also do marketing for you along with distribution and supply.

Manufacturing cost for a molecule will be same in all cases whether it is ethical drug or franchise drug. For example if cefixime manufacturing cost is X/-. It will be same whether you are going to sell it in ethical market or franchise/pcd market or generic market. What do make the rate difference are marketing and distribution expenses.

In direct/ethical marketing, company bears all expenses whether it’s marketing, distribution, travelling, employee or other routinely expenses. So, they add these expenses in their cost and print the MRP including their profit of margin and all expenses in cost.

Same in case of franchise/pcd marketing, Pharma companies don’t do direct marketing, hence their marketing expenses are negligible as compare to direct marketing companies. They only responsibility to manufacture and marketed their products as per satisfaction of their franchisee. They add their profit of margin at manufacturing cost and sale at that rate to franchisee. These rates are known as Net rates.But they don’t add sales and marketing expenses that they don’t spent directly. Sale and marketing work is done by their franchisees/distributors/marketing person. Franchisees market their products at own cost or promotional material supplied by company or arranged by themself.These franchisees are mostly sale and marketing persons or distributors those have strong hold in market and good relationships to doctors and Pharma professionals. They get product at net price basis and do marketing and sell products at trade rate, stockist rate, mrp or net rate. You can find calculation of net rate, traderate, stockiest rate or MRP by click here

Persons or distributors those do marketing for franchise companies are known as Pharma Franchisee Partner. Companies those work at this concept are known as Pharma Franchise Partner. Companies supply medicines at net price basis and franchisees sell it at trade rate, stockist rate, mrp or net rate after considering their profit. Read Here How to calculate ptr, pts with any mrp?

This is like a business partnership between two parties. Both partners are dependent on each others. For selling products, companies have to depend at their franchisee associates where as franchisees have to depends upon companies for regular and routinely supply of medicines.

In Pharma franchise system, calculation of profit and expenses is similar as in case of direct/branded/ethical marketing. Only difference is that in this system have two different parties that complete one single work at sharing basis. Both get more benefits with minimum risk and minimum infrastructure.

Pharma companies prevent their sales expense and franchisees/distributors/marketing persons prevent office/manufacturing expenses with huge investment of starting own pharma company. In this system, there is no requirement of big team or long distribution channel. It requires one Pharma Company with his own brands and one person or distributor who wants to sell Pharma products in own marketing.

above is the basic concept about how do Pharma franchise work?

If you are seeking to start franchise of Pharma Company or going to start Pharma Franchise Company, you can write us at contact box or mail us at pharmafranchiseehelp@gmail.com

Query:

I am a retail medicine shop owner with TIN number and drug license number to sell medicine on retail. If I wish to take PCD for a pharmaceutical company and sell in nearby area with 1/2 sales person, do I have to take a separate Tin and Wholesale Drug license number for it or I can operate with my existing one?
Response:
You can get take pcd medicine at your existing retail license and tin number but if you want to cover nearby area with 1/2 medical representatives then you have to available medicines at other retailers also. With existing retail license, you can’t bill to other retailers. Then your purpose will not solve. So, you have to take a new wholesale license or you can change your existing retail license to retail + wholesale license and your all purposes will be solved.
Hope this information will be helpful to you…
For more detail and queries related to Pharma franchise mail us at pharmafranchiseehelp@gmail.com or write in contact box…Related Articles:
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Full Time Blogger, Part Time Entrepreneur and Partial Time Helper for New Start-UP's in Pharmaceutical, Ayurvedic and Nutraceutical Sector. Contact him at pharmafranchiseehelp@gmail.com

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