PCD meaning: PCD is abbreviation used for term Propaganda cum Distribution in pharma market. Propaganda is a latin word meaning ‘to spread or to propagate.
In pharmaceutical sector PCD term is used for the distributors who spread or market company products along with distribution. Most of times PCD is considered as pharmaceutical franchise companies but there is some difference in PCD companies and Franchise Companies.
In PCD, method of marketing could be branded or generic type but in franchise system, method of marketing is completely branded type. In PCD, sales target is high and compulsion of monthly/yearly sale but in franchise system, sales target could be less or even there could be no sales target. Instead of few differences, its difficult to differentiate between PCD companies and Pharma Franchise Companies.
Propaganda term in pharmaceutical market was developed by small pharma companies to increase their presence in market and to provide competition to big pharmaceutical companies. This was revolution in pharma market and give opportunities to health professionals to start pharmaceutical company and own pharma marketing.
What are the advantage for pharma PCD companies:
- Marketing Expenses: In PCD marketing, negligible amount of marketing and sales expenses. Companies don’t require to hire sales team. Marketing and sales is done by their distributors and franchisee.
- Infrastructure: There is no requirement of complex sales and marketing infrastructure. Companies only need to supply and manufacture products/services in adequate quantity and at proper time.
- Distribution Channel: In branded and generic marketing, there is proper distribution channel i.e. C&F, Zonal Stockist, Stockist, Distributor, Chemist but in PCD marketing, companies directly supply to their distributors or franchisee. Cost of product is less and margin will be increased.
- Prescription Generation: Distributors or franchisees do have good relationships with health care professions. They don’t have to do much work to generate prescription.
- Good Margin: Even market rates has been known to everyone, PCD companies can earn good amount of profit margin at their products.
What are the advantage for Distributors/stockist or Franchisees:
- No Investment: There is no much requirement to start PCD distribution or franchise marketing. Companies provide opportunities to start at less investment like 10k, even few with 5k etc.
- Monopoly Rights: Companies provide monopoly rights for area, territory or state wise. Distributor or Franchisee has only right to market, distribute, collection and other commercial activities on behalf of company.
- Good Margin: PCD is margin able business. Earning depends upon efforts. As much effort is done, more earning will come to distributors.
- Self employment: Marketing and Distribution in PCD market provide self employment. Company has independent role and distributors also have independent role. Both are connected commercially but not professionally
- Promotional Inputs and Marketing Supports: Most of Companies provide free promotional inputs and marketing support. It gives opportunity to do branded marketing.
