Query:
I want to proceed to do business at franchise/pcd base for pharmaceutical sector. How extent you suggest me to do that?
Is it secured for long term and profitable? I know about that but still I want to know that in depth. So please give me some key line as per your knowledge. Hope for swift response.
Response:
Hope you will find our views useful…
No debt in that franchise/Pcd business is profitable, stable and secured for next few years. As number of marketing professionals (who want to start own marketing) are increasing, scope of pharma franchise/pcd is increasing. Increase in population and doctors are contributing in this also but number of pharma franchise companies is also increasing. That is making it very competitive market. Good strategy and marketing approach can place you apart. Once you have become successful in appointing good numbers of parties for your company, it will be easy for you to extend your business to next level. This business has slow start but steady and stable growth. Timely you have to appoint new parties because few old will stop work with you with reason or without reason. So continue appointing new parties. Read more about future of pharma pcd franchise in Indian pharmaceutical market.
Steady and slow policy will be beneficial. Don’t provide credit to any party till you become satisfied with parties performance. After that you can give credit against security check. Otherwise try to keep them at advance 25% advance and remaining against bank bility or self or COD. Collecting Payment. Try to keep your expenses in limit and spend them at marketing and promotion. Read here: Why pharma marketing and sale is slow process?
For extending your business, number of options are available. Print media ad i.e. Drug today, CIMS, Pharma View etc. Print media ad is effective in building name presence and brand but query rate and response is not good as that was in past. CIMS are effective in building your company’s name presence in Doctor’ mind.
But online options are much more inquiry generators. Personally we use online portals for getting franchise/pcd inquiries. Inquiry rate is average 2 to 3 inquiry per day. All inquiries are not convertible but you should contact all. Converting rate is good. Google AdWord could also be good option but you should handle by yourself instead of hiring any agency. Buliding and promoting website is also good marketing tool for franchise/pcd companies It builds online presence. Read here about marketing tools for pharma/pcd companies
Related: How to find Franchise Distributors?
Few online portals may not give you much business as mostly inquiries are non convertible. Facebook page and twitter account create brand if it is done properly. Appointing Experience person’s those having good territory and party knowledge can give business but Inquiries are more better than visiting to party. Parties having requirement of new franchise/pcd companies will work at your term and conditions and if you will visit to party, you have to work at party term and conditions.
Manufacturing Companies face different problems as compare to marketing companies. But we will recommend to start as a marketing company if you are new in own business. In start you will find, parties are not responding but once you will stay in game, you will find it was not difficult to appoint or make relationship with parties. We consider one out of fifteen is good conversion rate but converting rate could be higher once you provide good customer support. Efficacy of products should be best otherwise you can lost good parties after few dealing.
Product selection in product list is very important step. Every party is looking for new molecules. If you have latest molecules in your price list then it becomes easier to get the deal.
Product list should be unique mixture of running/bulk selling products, new molecules and unique molecules, food supplements, syrups, herbal products etc. You can opt out injection in starting. Products like cefixime, ofloxacin, cepfodoxme, PPI can give you huge sale but they will not help you in attracting new parties but higher molecule strength than available market products or unique new combinations of antibiotics can work. Like cefpodoxime 100 mg dry syrup or with clavulanic acid(dry syrup) or cefpodoxime with azithromycin in tablet combination or aceclofenac with rabeprazole or aceclofenac or declofenac with thiocholchicoside are few products or combinations that are available at few companies and have good response in market.
View here Example Price list of pharma pcd franchise companies.
Rate should be reasonable. Don’t compare your rates with other companies rates. Every one has its own policies. Make your own margin and rates. Party/Franchisee shouldn’t feel rates at higher side and they will not proceed further.
Read here: How to fix net rates and profit margin for your pharma pcd franchise company?
As like other fields, Service matters the most. Availability, timely dispatch, proper follow-up/response create trust in party’s mind. That is helpful in increasing business from existing parties and force them to continue their business with you. Most of companies suffer from shortage and inadequate stock problem. This directly and indirectly affect sale and further growth of sale and business.
Parties totally depend upon doctors. Doctors has huge number of availability of same products, if availability of product is not proper it could make it out from market. You could your sale loose permanently. For proper supply, your party will be dependent at you and for sale you will depend at parties/franchisees. Your growth depend at how much you could feed the party and provide service to party. We recommend that you should work only with advance payment but for few parties you have to be flexible in term and conditions.
Hope you find it valuable…..
For any suggestion and query, you can mail us at pharmafranchiseehelp@gmail.com