Franchise Help

How to face problems like MR’s salary, Profit margin, Market Strategy etc in Pcd marketing?

I am running pcd franchise company but I have no experience in pharma industry so, I am facing problems like. Salary to M.R, % of Doctor, profit margin, market strategy…. How to come up with those problems?
Please guide me in correct way.


PCD franchise marketing is just like doing branded/ethical marketing. Only promoters are different. You shouldn’t disclose to anyone that you have franchise/pcd of that company, even to your distributors or your MR’s. That is important aspect that will give benefit in long term. If you disclose then people will start to take you lightly. Either they will bargain more or will not take much interest.

Start it by showing, you are Area Manager and launching your company in this territory first time. Same thing should be in mind of your medical representatives. Otherwise it will become difficult for them to work in market. They should have positive and healthy mindset in front of doctors.

In pcd franchise marketing, companies don’t recruit MR’s or they will also not provide any joining letters or salary to MR’s. So you have to appoint MR’s at stockist level. Issue appointment letter on behalf of stockist and distributor. Give them salary and other expenses from stockist’s account. If you are not stockist/distributor yourself, you have to pay to stockist the salary and expenses, he will pay to MR’s.You can confirm in market about- how much salary other companies MR’s getting. You can fix salary according to this.

When it comes to doctor’s percentage. That is different from state to state, city to city & doctor to doctor. Some doctors take percentage and some don’t take. You have to handle every doctor individually. Now we take an example to understand all this process:

Suppose you purchase goods of Thirty thousand at net price basis and MRP value of nearly ninety five thousand rupees. Now calculate Price to Retailer (PTR) and Price to Stockiest(PTS).

Here we are calculating it roughly. For complete calculation detail click at above link.

We deduct approximately 27.87%(PTS & PTR) from MRP. It will have approximately twenty six thousand as stockiest margins and retailer margin. If Doctor Percentage is twenty five percent at PTS then calculate it as per. It will be approximately seventeen thousand. Medical representative cost will be approximately twelve thousand to you.

Total cost to you is 30000+26000+17000+12000=85000/-. You get 10000/-. Deduct miscellaneous expenses as 2000/-. At 30000 rupees purchase you can earn roughly 8000/-. Which approximately 26% profit margin. As your sale will increase, your margin will be increased because medical rep. salary will be stable in this table. If you do marketing by yourself and prevent MR salary then margin value will be 20000/- i.e. 66% approx.

From above example, you can sort out doctor percentage, margin, MR salary like problems.
For marketing strategy: Read here: How to set-up pcd/franchise marketing?

You can also read:
How to develop strong delivery, distribution and supply network ?

Hope above information was useful to you…

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