Heavy advertisement in drug books, yearbooks, medical journals and news papers become trend and necessity to create market and increase sale but these ads also make choice difficult. But attractive ad, long product list doesn’t grantee for good
If you will enquire through business portals, then that makes situation more difficult. Spam mails in your inbox, continuous marketing calls from unlimited companies. After matching prices and product list of different companies, one can end-up
with wrong choice. You will place order but only few products will be available and remaining will be in process or from nearly 250 product’s product list, they will have only 150 products and 100 products will be for display only.
That’s the truth of today’s market scenario. But not all Pharma franchise Companies are same. Very repudiated and professional companies are also available. So, it become necessary to choice a good Franchise Company, otherwise you will lose
your sale and in mean time you relationship with doctors.
I am discussing about few aspects you should clear from PCD Company before associated with anyone:
Availability of Product:
You should confirm before clearing payment that – All products display in the product list is available or not. If not, ask for which products are not available and reason for discontinuity. If you find satisfied with answer, you can proceed. If yes, whether all products will be continuously available or not. If not, ask for name of product so you can save yourself to promote those products.
Flexible Terms and Conditions:
It will be good for both of you to clarify all matter before starting business. Whether it is payment regarding, transportation, promotional material supply, gifts for doctors or offers etc. and all things should in written.
Check for certification if applicable like GMP, iso etc.
Monopoly Right Agreement:
One should clarify all his territory where you want to market their products. Take written papers for agreement and both of parties should follow the agreement’s term and conditions. You need monopoly right for your territory so that chances of infiltration can be avoided.
You should confirm that – at any circumstances and any level, company should not impose any target or their condition unnecessary to you. Because once you have started, your money and relationship both will be involve with this process. In any case if company would stop supply to you. Both your money and relationship will damage.
Market Presence and Reputation:
Do R&D about company, you going to be associated. Their market presence, year of establishment, market reputation, previous distributor in your area if any, owner, responsible person for work, all thing you have to find out seriously.
You are leaving your comport zone, coming in your own business, you have to think about all necessary things before start. It is your new beginning. I don’t want to lose your dream. It’s your life; it’s your way of living it. If you get succeed, you will be your own boss. So, choose carefully your Pharma Franchise Company.
Above points is of best of my knowledge, but you have to look after more other aspects before associated with any PCD or Pharma franchise Company.If you want, you can contact me free of cost for Pcd Pharma Franchise consultant. Pharma Distributors and Marketing professionals who want to start their own Franchise can contact. You can mail me for your question and problems at email@example.com or through contact box..
Thanks for reading…
Hope for best…
Pharmaceutical franchise distributors or marketing professionals are backbone for franchise companies. They are the actual sale generator and key player in market. They are primary customers for pharma pcd franchise companies. With respect to their method of work, we can divide these distributors in two categories.
When distributors directly purchase medicines from company and make primary and secondary sale on own basis. Single Pharma Franchisee Distributors are mainly Pharmaceutical marketing professionals and small pharmaceutical distributors. They cover small area and work at small level e.g. district, territory etc. These distributors give less sale but high margin. Single franchise distributor may have own whole sale drug license number or not.
Multiple Party Pcd franchise Distributors: When distributors purchase from company and appoint their own franchise/Pcd parties/distributors and distribute products to them. These franchisees are responsible for sale and promotion in market. Multiple Pharma Pcd Franchise Distributors are mainly big pharmaceutical distributors and C&F’s. They must have their own whole sale drug license. They cover large area and work at large level e.g. state, zone etc.
Mainly these two type of pcd Pharma Franchise Distributors work throughout India. Both types of distributors have their pro and cons. If we talk about which type of distributor is good for Pharmaceutical Companies, then, it will be difficult to say because both have their own benefits and losses.
Single franchise Pharmaceutical Distributors give more margin and they work at mutual agreed conditions, but in case of Multi Franchise Distributors – Pharmaceuticals companies provide most facilities to them but they give only little margin. If You are thinking first one is better, then think again. Second one gives huge sale while first one gives more margins.
If second one is back bone for any Pharmaceutical franchise company, then, first one give boast to company margin, make them more financially liberal. We can’t under-estimate one from other. Franchise Pharmaceutical companies have to maintain both types of distributors to establish in highly competitive market.
With number of advantages, both have number of disadvantages also.
Hope this article was helpful to you. For any query and suggestion write us at firstname.lastname@example.org
Stockiest or retail counter is primary customer. There is very little concentrate toward Doctors and Patients in their marketing strategy or technique. Low margin marketing type but transaction is done in bulk. Bulk purchasing compensate margins. read more about Generic Medicines Here
Prescription (Branded) Marketing:
Doctors are matter of prime concern. Pharma companies may target is to prescribe its brand from doctors. There is little concentration require for patients and distributors. Chemist is also matter of concern because they can substitute your brand with similar product. That is the main reason for heavy price for branded products because they don’t consider the patients aspect in it. In recent time DPCO regulate prices of medicines. Read How to sell through prescription here
In last few years, one main change in pharma sector’s marketing strategy was – directly supply to big hospitals, Government hospitals and chemist chain’s stores.
Hospital’s chain promotes the interest of pharmaceutical companies toward directly supply to big hospitals. Government’s motto to provide easy and cheap medicine to poor people also inspire Pharmaceutical companies to supply and quote lowest prices to government for procurement of proper and effective medicine to general public. But low rates and easy availability of medicines doesn’t provide any benefits to patients.
Pharmacy Chain Supply:
Pharmacy chain may be popular or successful in metro cities or some areas but concept doesn’t provide strength to pharmaceutical sector and doesn’t inspire other corporate houses to come in this business.
Online Pharmacy Supply:
Online Pharmacy concept is becoming popular in India. Online medicine selling also has become a good opportunity to sell medicines in Pharmaceutical Sector. But supplying medicines are subject to Registered Medical Practitioner’s Prescription so prescribing medicines from doctors is also necessary for selling medicines online. OTC products could be sold out without doctor’s prescription. Read in Detail about How to Start Online Pharmacy in India?
As competition is increasing – new ways of marketing – Marketing Strategies are changing. New ways and concepts of marketing will be generates in near future also. Every company and person should change its strategy as per market trends other wise he will be out from market. Win only who – who will come with different approach and with different techniques.
Updating is natural phenomena and it is also applicable to Pharma Sector. For becoming big, we have to think big and different.
Hope above information is useful to you…
For any query and suggestion mail us at email@example.com
We hope if you have visited this page, you have Decided to start pharma/ayurvedic franchise/pcd marketing Before start you want to know- how much you can earn through pcd pharma and franchise marketing. Unlike other business, this business don’t have fixed percentage margin. How can you earn from it depend at your selling skill.
Raw material cost is basis of net rate calculation. Pharma Franchise or PCD companies provide medicines to their franchisee, at net price basis.Net Prices are calculated by following formulas: Total Cost = Manufacturing cost + Packing Material Cost + Taxes + Transportation + Promotion Material + Expenses. Net Rate = Total cost X percentage of margin.
Percentage of margin may differ from companies to companies. Percentage of margin is calculated according to number of employees, administration expenses and other expenses of company. Pharma franchise or PCD Companies provide visual aids, catch covers, leaf behind cards, bags, writing pads, dairies, calendars, pens and number of promotion inputs. That’s way their prices are higher than generic drugs. And doesn’t do direct marketing, hence, prices fall below branded drugs.Companies have calculated their rates at which they will sell to their customers. Then their franchisee’s turn to fix their margin according to their cost and expenses. Transportation between companies to party also causes expenses hence we will calculate this expense into franchise distributor costing.Suppose if a Franchisee Distributor purchase a particular medicine at the rate of 10 Rs with a MRP’s of 35 Rs and after include with transportation and tax, it will be increased by 10% and become 11 Rs.
How will he calculate distributions of margins?
20% margin with scheme (10% of free goods or whatever applicable) will go to retailer, even more in some cases. After giving 20% + scheme to retailer, a sum of approximately 8 Rs. will be deducted in MRP. Now value left to 27 Rs.
Trade price for the drug will be 70% of MRP i.e. 24.50/-.This is price that is supposed to be at which Pharma franchisee Distributor will provide drugs to the wholesaler but it is not actual. We consider it standard and use it to find profit margin.
So, Stockiest Margin = Retailer Price – Trade Rate (i.e. 27-24.5 = 2.5 Rs, Nearly 10% of Trade rate)
Now 13.50 Rs left in the hand of Pharma franchisee Distributor. His marketing cost (promotion inputs or commission, small gifts, tours, functions etc.) will be approximately 25 to 30 % of total MRP and this amount will be nearly 8.75 to 10.5 Rs. Total margin of Pharma franchisee Distributor will be 4.75 to 3 Rs and that is equal to 43% to 25 %. In this margin, franchisee salary, travelling expenses, medical representative expenses etc. At purchase of 11/-, you can earn minimum of 3/- as gross profit.
That margin is not enough if we will calculate difficulty and competition in market. That Calculation was based upon upon general calculations, you can’t calculate price to retailer or price to stockist from it. It is general calculation for calculating roughly profit margin. If someone finds it incorrect, he can make amendment in it and advice me to correct it. I will be apologized for any mistake.
But one thing, I want to make clear for Pharma Franchise Companies, they should respect their franchise because they do most of hard work to sell your product and gets minimum margin to fulfill their life.
You can ask for price list of Pharma pcd Franchise company by mail from us. Send your query for product cum price list at firstname.lastname@example.org
We can provide you free of cost Pharma Franchise consultant to PharmaDistributors and Marketing professionals want to start his own marketing. You can mail me for your question and problems at email@example.com or through contact box…
Break Monopoly of Companies:Franchise companies break the monopoly of big pharma companies. Big pharma companies are occupied with resources and ability to beat the competition but small companies don’t have much resources and investments to compete with big pharma. Franchise concept give small companies an option for building competition with big pharma by appointing local franchisee having good relationship with local health care professionals.
Create Space for new comers: In pharmaceutical sector, entry of new professionals are very difficult. Competition with established distributors/wholesalers, retailers and other professionals is much difficult for new comers to establish own distribution and trading work in pharmaceutical sector. Big pharma look for big distributors and establish distributors when it comes for providing distribution ship. Security amount and many other conditions make it more complex and out of reach of new professionals. Franchise companies provides easy opportunities to get stockistship and distribution at easy terms.
Create new option: As number of companies increasing, options are also increasing in market. That indirectly pressurize big pharma to give more discounts and innovation to keep presence in pharma market. Doctors also get more options in prescribing any particular molecule.
Prevent Shortage of Life Saving Drugs: In case of any Government policy, big pharma companies try to pressurize Government by not supplying life saving medicines in market. In that case small companies sale may boast up and keep availability of life saving drugs in market. With franchise model, it will become to timely delivery of life saving drugs to patients.
When I started my career as a medical representative, I always heard about propaganda companies. Representatives of these companies were different from us. Their method of working was different, their approach was different.
For being working for a multinational firm, I thought that these companies drug was of low standards. I were not aware how propaganda companies work. In my 6 month medical representative career, everyday in field I encountered with them. I assume that what my thinking was at that time about propaganda cum distribution companies (PCD inshort) — most of sales professional have same kind of mind set about PCD’s.Competition always provides profit to consumers.
The Indian Pharmaceutical market expected estimated size will be US $55 billion at the rate of 23.9% by 2020. If we consider Google search data — can anyone tell, how many times PCD orPharma Franchise Companies searches through out Google per month.But in reality PCD companies are backbone for the future of Indian pharmaceutical market. Imagine, if only 100 companies cover-up whole Indian market and mostly foreign pharma giants. Their monopoly of market may cause decrease in competition, increase in price, shortage of life saving drugs and also non stoppable acts.
See the example of Telecom sector, due to non competition, they are increasing prices without any notification. During my professional worked period for Pharma Franchise Company, I really appreciate this concept — for being one of market changing process.
Now question arises — how can we say PCD companies — backbone of Indian Pharmaceutical market. Professionals that are associated with these companies know exactly the important of PCD companies.
Average Google monthly search for PCD Pharma companies, PCD companies in India and similar keywords are about 4880 per month, searches for Indian PCD companies, Indian pharma PCD’s & similar are about 2000 per month. Like wise Indian Pharma franchise companies, Pharma Franchise is about 5000 per month. If we calculate roughly — that searches throughout India –are more than 20000 per month.
Let take a look at it :Every year these companies trained a large number of medical representatives. In this force, professionals that are dedicated to their work, builds a strong relationship with healthcare professionals.
At some stage in their life when they think about their own work. Pharma Franchise Marketing is best possible way in front of them.
Easy to start, consumes very less investment and same time it is very profitable business.
I can’t suppose pharmaceutical market without pharma franchise because it is the only way to prevent market for being monopolized by few big houses.
Not having Vision: Most of Pharma/Ayurvedic Franchise Companies do this mistake. They come with their sales target and expansion. But don’t have any working plan or vision — how to grow along with their associates or Franchise. Not having exact vision to expand business is major thing that are stopping from becoming big player. For most of companies vision section is restricted for website purpose only.
Lack of Initiative: Pharma Franchise Companies follow same path as their competitors doing. Very few companies have capability to take initiative and do something different. For doing big, one has to thing big. Experiments and risk is necessary in business to expand.
Lack of Innovation: Mostly Pharma Franchise Companies aren’t involved in research and innovation. They follow Multi-Nation companies step and their policies.
Shortage of resources: Small fund and not having proper utilization of fund is also played great role. Shortage of resources and fund put Pharma Franchise Companies at setback.
Unprofessional or poor services: Shortage of raw material, finished goods and not having proper or qualified staff for particular work leaves their services at lower end.
Not Updating: Updating itself is live saver for any business and that is also applicable for pharmaceutical sector. Most of PCD companies have products that will be in every company product list. Most of companies don’t try to update their product list. Instead they concentrate to launch their new division with same products.
Saturation: Most of PCD companies are proprietor base. After achieving a goal, they start to play safe game, become saturated and try to resist the risk factors that are basis of growth.
Not having Expansion Plan: Most of PCD companies don’t have their expansion plan. PCD Company’s only try to launch their divisions but don’t focus at their expansion. Having more divisions are not the criteria for any company but having Big Brand value — more matters.
Work Culture: Pharma Franchise Companies (PCD) don’t have good work culture. They treat their employees as Run Machine. They don’t fulfill their employee’s requirements. That’s the main reason – for not getting loyal and faithful employees.
These are only few but essential for becoming future giants. Big Names are started with single alphabet. To do big, we have to be big. Customer is God for any business. Customer Satisfaction should be first motive for all.
Hope above article was useful to you….
Mail us at firstname.lastname@example.org or write us at contact box
Pharma Franchise Business and/or PCD Business may be strange word for common people but pcd or pharma franchise is well known word for persons that are related to medicines and pharmaceutical sectors. In period of 1990’s when India begun its new era. One sector were going to change in India and that was pharmaceutical sector.
Pharma Franchise Business concept totally changed the direction of field and provided the opportunities to small Pharmaceutical companies and pharmaceutical professionals to grow and start their own work.
The word franchise is come from the Anglo-French word means “Liberty”. If we go through history of franchise – that goes before eighteenth century. In modern time new era of franchise begins in late 19th century. In every sector like auto, soft drink, food etc franchise concept is so popular. Before 1950, in USA only less than 100 companies provide the franchise. In today business it will be difficult to count the numbers.
That may be one of the main reason behind pharma franchise popularity. Huge marketing cost for a small pharma company matters a lot. From general manager to medical representative, foreign tour to small gifts, C&F to retailer, Pharma Company has to spend huge money and effort. Pharma Franchise concept makes this process less costly and efficient. Pharma Franchise concept helps in reduction of direct sales man power and their expenses, hence franchise companies marketing and promotion cost come done.
Low Administration Cost:
For a Pharma/Ayurvedic franchise company less staff force for handling work. Even in case of small companies only one or two professionals can manage. Whole country’s marketing can be managed by single office.
Own work at small investment:
If you have links with doctors and passion for your own works franchise marketing is best opportunity for you. For pharma marketing professionals, pharma franchise concept is like – they are their own boss. Franchise marketing and distribution work can be started with investment as low as ten thousand rupees.
Pharma Franchise business is profitable business. A franchise distributor can earn handsome income with minimal efforts. Fifty thousand to one lakh income could be earned by a person after two years of own marketing. calculation of profit margin can be done by visiting our article: how much profit a franchise distributor can earn? Companies also earn huge profit by distributing at franchise basis.
Share of Responsibilities:
If any person has pharma sales experience but don’t have any knowledge about manufacturing, distribution channel then pharma franchise come with hope for self employment. Pharmaceutical company provides the product and franchise sell it further. Franchise is work of share responsibility, companies are to provide products and promotional whereas franchise distributors work is to promote and get prescription by doctors. It divides responsibilities without affecting the cost of model.
Simple Distribution Channel:
Pharma Franchise model works at simple distribution channel. Products could be distributed by appointing a c&f or directly to distributors. It doesn’t require expertise in developing distribution channel. A average knowledge person can easily set-up distribution channel all over country.
Last not least, easy availability of franchise companies and franchise distributors/marketing persons make it easy for taking this concept at further level. Companies can easily find out distributors through promoting its company (Read how to find franchise distributors here?) and distributors can easily find out franchise companies detail through Internet, drug books and medical news papers etc. list of franchise companies get here
Future of Pharma franchise:
If we talk about future of franchise in pharmaceutical sector, franchise business is growing – if we roughly say, one pharma franchise company has launched daily. But with growing pharmaceutical sector it will be not so easy for PCD’s companies to maintain their growth. Increasing strictness with new policies, DPCO, and amendments of law makes life for Franchise companies (PCD) more miserable as compared to before 2010 era.
Defaming of Pharma Franchise companies (PCD) in recent years, cut throat competition, decrease in margin, awareness about branded and generic products, awareness about manufacturing cost of drugs in public and professionals, unprofessional approach and poor services are few factors that are being faced by PCD companies.
In recent time, pharmaceutical sector are at changing state. In which side camel seat, no one knows. Pharma Franchise (PCD) business has its own pro and cons. But one thing is sure, pharma franchise is only option for small pharmaceutical companies and enterprises to compete with multi nation companies.
It’s necessity at current time to save the future of small and medium scale Indian Pharma Companies. What policy govt. make, they have to take care of small manufacturers and marketers.
Hope for a brighter and best future for Indian Pharmaceutical and Herbal Sector.
We have studied in our previous articles about procedure and requirements to start pharmaceutical company , ayurvedic company and Food Supplement company. In this article we will discuss about trademark registration process, procedure, documents, requirements, difference between objection/opposed, advantage, FAQ and other related details.
In this article we will know about trademark registration. Same procedure and requirement for Trademark is applied for all business including Pharmaceutical, Ayurvedic and Nutraceutical (food Supplement) Sector.
What is Trademark?
First we will know about Trademark. Trade mark is generally referred to a company name, brand/product name/service and/or logo of company and/or firm. A Trademark can be in form of visual symbol, word, numeral, name, device and/or lable etc which distinguish a business from others . For Example, Elzac Herbals along with sign is a Logo of Elzac Herbal India, An Ayurvedic Manufacturing Products Company. We can say Elzac Herbals is a Trade Mark.
If you are going to launch a company and/or a new product then it is advised to first go for trademark registration before launching. Trademark registration is an intellectual property which protects against use of your trade/business name or trademark by others.
Trademark registration can be obtained for business name, brand name, logo, tagline or caption etc. Company Name and/or Products Brand Name can be registered under Controller General of Patents Designs and Trademarks. Trade Mark is valuable asset especially in case of pharma companies it worth more.
‘TM’ stands for ‘Trademark applied for’ where as ® symbol stands for the ‘Registered trademark’. Before apply for trade mark, Trade Mark search is highly recommended. This will give you indication of existing or applying trade marks. Go to the http://www.ipindia.nic.in/ site. Click at trade mark and you will be redirected to http://www.ipindia.nic.in/trade-marks.htm. Then click at public search. In new tab http://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx will be opened. Change search type to phonetic or Wordmark. Enter your brand name or company name and class. For pharmaceutical and ayurvedic product’s name and manufacturing company, you can search in Class-5 and for trading/marketing company, search in class-35.
You can apply trade mark registration through amy legal firm or trade mark advocates those handle trade mark registration for your trade mark registration. For providing authorization, you have to sign power of attorney authorizing for particular brand name/company name trade mark registration.
Requirements for filling a trademark registration application:
The name, address and Nationality of applicant/s. In case of Partnership firm, Name of all Partners. Soft copy of the Trade Mark to be registered.
List of goods/Services for which registration is required along with Class.
If the mark contains or consists of non-English words, a translation of those words into English is required.
Power of attorney simply signed by the applicant (In case of application filled by advocate and/or legal firm/agency).
Fees for registration. Govt. fee is approximate 4500/- per trade mark. Fees may change with any government policy update.
Proof for using particular name (like Invoice, Advertisement etc.)
Trade Name and/or Logo. If you don’t have then choose a Unique Name and/or Logo.
Search for Trade Mark Availability as mentioned above
Select appropriate class from 45 Classes. (For Pharmaceutical, Ayurvedic and Nutraceuticals generally Class 5 and Class 35 is used.)
Application submission for Trade Mark registration. It takes 3 working days for trade mark department to issue Trade Mark application Number but it takes 1.5-2 years for Trade Mark registration if your application don’t receive any objection other wise it may take more time.
Advertising a trademark in government public gadget before acceptance for trademark registration. Objections and oppositions are invited by government from public before going in registration process.
Hearing before registrar if your trademark faces any objection.
Hearing before registrar if your trademark faces opposed.
Difference between Objection and Opposed:
Objection in trademark registration is something that a particular trademark and/or similar trademark or name may have being used by someone else. Objection may be raised by trademark department internally or any third person. Means there is uncertainty about trademark whether it may cause any harm to any other trademark owner or not if trademark registration is given to you or someone else. Objection may also be raised if trademark department is uncertain whether trademark applicant is using that trademark in actuality or not. For clearing objection, proper proof and documents have been submitted before registrar at hearing date issued by trademark department.
Opposed in trademark registration is when a third party files application against giving registration of particular trademark to you or someone else. For clearing opposition, a legal case has been fight against opposed party for taking trade mark registration.
Advantage of Trademark Registration:
Legal Protection: Trademark registration provides legal protection against using your trade name and/or mark used by any other person, company or/and firm. No can use your trademark without your prior permission.
Brand Trust: Trademark Registration separates a trademark from others. Registered Brand makes an trusted impression at customer mind set. It builds a trust between trademark owner and his customer.
Popularization: If a trademark is registered then trademark owner is free to promote it at large level without fear of misuse and/or use by any other party.
Three types of Symbol is used for trademark purpose: ‘TM‘, ‘SM‘ and ‘R‘.
TM: Trade Mark applied for. This symbol is used for product when it is not registered but is applied for trademark registration.
SM: Service Mark applied for. This mark is used when trademark is applied for Service/s, not for product.
R: Registered. This mark is used when a trademark has been accepted for registration and registration license has been granted to trademark owner.
Frequently Asked Question about Trademark Registration:
How many types of Classes under Trade Mark Registry?
Ans: Trademark Registry has classified Trademark classes under 45 classes according to product and service type.
In which class Pharmaceutical, Cosmetic, Ayurvedic/Herbal and Food Supplements products/Services and Companies comes?
Ans: Pharmaceutical, Ayurvedic and Nutraceutical Products and preparations fall under class 5 where as companies fall under class 35.
What is the Duration of trademark Registration Certificate Validation?
Ans: A trademark registration is granted for 10 years but trademark licensee can renew it after every 10 year and use it for indefinite period.
When a applicant use symbol ‘TM’?
Ans: After getting trade mark registration number after submitting application, applicant can use symbol ‘TM’ but he/she can’t use ‘R’ symbol unless his/her trademark is received registration certificate.
If my company is registered under Company Act, Do I still need Trademark Registration?
Ans: Company registration under Company Act doesn’t cover or protect brand identity. For example, Your registered a company under company act with name ABCD Herbal private limited. In that case another person is free to register company with name ABCD Ayurvedic Private Limited but if you have trademark registration of ABCD then no one can use ABCD for registration of company even under Company Act because Company Act also doesn’t allow to register a company with name that is trademark registered by other person.
Can I apply for Trademark Registration by own self?
Ans: You can apply by own self at trademark registry website. You will require class III digital signature for applying trademark registration online by own self.
What to confirm before applying a trademark through Advocates and Legal firms/Agencies?
Ans: Applying for Trademark registration is not a big thing. Most of online agencies and advocates lure customers by charging 1000 applying fees plus government fees. Most of them doesn’t cover ‘Objection‘ part in it. Almost of trademarks faces objection during registration process. So before applying through any advocates or/and legal firms first confirm whether they will handle objection or not during registration process. Otherwise you have to pay more money for clearing objection from your trademark registration process.