Profit margin in Pharmaceutical Sector (Manufacturer to Retailers)

Profit margin in pharmaceutical business: Retailers: 16-22% Distributors: 8-12% Stockist: 6-10% CFA: 4-8% Company: Vary according to marketing type

Query:

I am a 3rd year B. Pharm student and want to know about What are the profit margins of a pharma business? Kindly Explain in a particular cycle i.e. Profit from a manufacturing company to retailer?

Response:

Profit margin in pharmaceutical business vary company to company. We can’t estimate any company’s margin just by analyzing from outside. We have to involve deeply with company business strategy to calculate the margin in pharmaceutical sector. Profit Margin of chemists, pharmacies, stockists  and Carrying and Forwarding agent (CFA) also vary depend upon many factors like branded medicine, generic medicines, brand value of medicines, otc product, company status, ethical/unethical practice etc.

Here we are going to explain a general profit margin cycle from manufacturer to retailers. First you need to know about distribution channel in pharmaceutical sector through which profit share divides. A distribution channel includes mainly following parts:

  • Company (Manufacturing and/or Marketing Company)
  • Carrying and Forwarding Agent
  • Stockist
  • Distributor
  • Retail/Chemist/Pharmacy

Profit margin should be divide between above five firms/individuals. But actually profit margin will be distributed in another individuals also. That we will discuss later in article. First we start from bottom side. The reason from starting bottom side is that their margins are some what fixed if profit margin is taken ethically.

In case of unethical practice, profit margin may be many times greater than actual profit margins. Unethical practice means selling a medicines by much higher than its actual cost after adding own profit e.g. selling generic medicines at MRP (Maximum Retail Price) but in actual its cost is 4-5 times less than MRP.

Company’s margin vary according to its expenses. A company will handle a big sales team, executives, staff members, workers etc. Company has to invest at stock, machinery, plant, advertisement, promotion and other aspects. How much bigger their expenses, they have to set profit margins accordingly. Sale turnover also affect profit margin.

Bigger sale turnover will provide bigger profit so company can compete in market by taking low margins. Competitors also play role in mrp, trade rates fixation hence profit margins. Many factor affects the profit margin of a company.

Nothing is fixed in pharmaceutical sector. Below margin’s explanation is based upon standards margins. These can be vary as we discussed above and according to company marketing type like branded marketing, generic marketing, franchise marketing, pcd marketing etc.

A retailer/Pharmacy margin is approx. 16-22% percent ethically. Along with margins they also get benefits of scheme and offers provided by companies. Retailers/pharmacies also enjoy credit facilities provided by companies and/or stockists.

A Distributor margin is approx. 8-12%. Distributors could also enjoy some benefits scheme and offers. At distributor level credit facility could be enjoyed.

A Stockist margin is approx. 6-10%. At stockist level  less chances of scheme/offers. Majority of cases a stockist has to invest many in distribution channel by providing advance payment to company/CFA and/or credit facility to distributors.

Carrying and Forwarding Agent (CFA) margin is approx. 4-8%. CFA plays middle man role in majority of cases. They receive stock from company in bulk and distributes it to stockists in small quantity.

Company profit margin is difficult to fix and/or calculate. Many factors affect profit margin fixation. At pharmacy, stockist, distributor and cfa level, there is fixed expenses and running cost. Hence fixed margins don’t affect their money circulation.

But at Company hand lot of things to consider. As we discussed above company profit margin depend at many factors. What could be the possible profit margin that we will understand with a simple example according to their marketing types.

  • Branded Marketing Type Company
  • Generic Marketing Type Company
  • Franchise/Pcd Marketing Type Company
  • Over The Counter (OTC) Marketing Type Company

Suppose a Medicine’s cost after adding all manufacturing expenses* is 30 Rs. Now margin in each type of marketing will be different.

In Branded marketing type, profit margin will be calculated after adding all sales and marketing expenses like Sales Team Salary/Tour Expenses, Doctor’s expenses*, transportation, office staff salary and expenses, promotional expenses and related expenses.

Practically all these expenses cost could not been added in any single product but expenses calculation verses profit margin is based upon all products included in company’s product list.

In Generic Marketing Type, company don’t spend at sales team, doctors etc. Company Fixed a particular margin like 5%, 10%, 20%, 30% etc and dispatch to CFA and/or Stockist. Now their turn how they distribute it at how much profit margin.

In Franchise/Pcd Marketing Type, Company do the same as in Generic marketing Type and fix a particular margin and dispatch goods to CFA and/or Stockist. But in Franchise/Pcd marketing , stockis/CFA has to calculate their profit margin based upon factors we discussed in Branded marketing type like sales team salary/tour expenses, doctor’s expenses, transportation etc.

In Over The Counter Marketing (OTC) Type, company fixed its margin based upon factors like advertisement expenses, sales team salary/tour expenses, transportation, promotion expenses and other related expenses etc.

Above we have discussed about marketing type. That will be applicable for both pharmaceutical marketing company and pharmaceutical manufacturing company when they will sell and/or market their products. Now we will try to find out profit margin of a Pharmaceutical Manufacturing unit/company at manufacturing end.

Pharmaceutical Manufacturing unit get profits by two ways: By Own Marketing and/or By Third Party/Contract Manufacturing/Loan Licensing. By Own Marketing profit margin will be calculated as we discussed above in Marketing type.

Manufacturing companies who reliable at third party/contract manufacturing calculate their margin depend upon batch size, cost of raw material, plant capacity etc. Generally 25-40% margin is added by manufacturing unit at their cost sheet of third party/contract manufacturing rates.

Loan License manufacturing profit margin is different from above mentioned details. In loan license, a manufacturing unit is hired/rented by loan licensee. Loan licensee can manufacture own product at manufacturing unit by own self. Generally rent and manufacturing process expenses is given by loan licensee to manufacturing unit.

Same Profit margin is applicable for Ayurvedic, Food and Dietary Supplements and Cosmetic Industry

Hope this article will be helpful for you to know about profit margin in Pharmaceutical Sector.

For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

How can a B. Pharm Student Start Small Scale Manufacturing Unit?

Query:I am a final year b.pharm student. I am willing to start a small scale manufacturing unit related to food or cosmetics but I don’t have a clear idea regarding it. Please help and suggest me in what areas i can startup my business in food or cosmetics and also how much time and money will all this process need.Waiting for your reply. Thank you.

Response:Starting own business without any prior experience is not a good idea. You should first take some experience in food or cosmetic industry before starting own manufacturing unit.There are lot of challenges and works that can’t be learn during education, you could only be acquired by industry exposer.

Money and time needed depend at your experience and knowledge. Few person start own business with negligible amount and few start with huge amount. So we will recommend to get some exposer of industry after your education and then go into business.
Read our related article: What should a pharma student do just after graduation? Job or Business!
Documents and procedure for Food Business read at our article: How to start Food supplement business?
For cosmetic industry requirement read our article: How to start Cosmetic Industry in India?
For Pharmaceutical Industry requirement read our article: How to start Pharmaceutical Company?

Hope above information is helpful to you….
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Related Articles:

New Pharma Policy: Would Third Party/Contract Manufacturing be Banned?

As per news circulated through out web, news paper and tv, third party/ contract manufacturing is going to be banned. But we are not sure about source of these news and whether these are true or not. If these are true, then it will not be beneficial for pharmaceutical sector. A large number of manufacturing units and thousands of marketing companies have shut down. This will be great loss to pharmaceutical sector and ultimately medicines will be costlier due to monopoly of few pharmaceutical countries. 

We received queries in this regard from many readers, so we decide to analysis few facts about these news. We will try to find out whether these romours are true or false. Here we are going to discuss about fact which will be change for third party or contract manufacturing. We don’t think, third party or/and contract manufacturing is going to be banned because it is legal phenomena and helpful in growth & new business possibilities. If we study today’s big player in pharmaceutical sector, they started as marketing company. Later they established or overtake manufacturing units. Establishing Marketing Company is much easier than to start a manufacturing unit. If government bans third party/contract manufacturing, then it will effect adversely at pharmaceutical sector growth and will increase unemployment.

Here look at possibilities that would be covered by New Pharma Policy:

In 2006, Draft National Pharmaceutical Policy, Heading Control on Pharmaceutical brands describe a very serious issue. This is what that should have resolved many years ago. This issue was related to brand name resemblance and same brand name for different preparations. For example, We have a Brand Name  Cef for an active ingredient Cefixime and another company is using Cef for an active ingredient Cefpodoxime. Same brand name is using for different active ingredients. 

In second case, Company A and Company B, both are using same Brand Name PAR for paracetamol. This create confusion and lead to misbranding. We have taken a example of only two companies, there are many cases where same brand name is using by number of pharmaceutical companies.  These type of activities have the potential to cause immense harm through mis-prescription and/or wrong dispensing. (We use brand name for sample purpose without checking whether they belong to any company or not. In case these belong to any company, please mail us at pharmafranchiseehelp@gmail.com for correction)
In India there is no appropriate system to rectify these errors, so it was suggested that “branding of drugs and other therapeutics should be brought under the Central drug regulatory system. The drug regulator must be required to maintain a data base on brands and their compositions, and all brand registration of drugs must compulsorily be approved by the drug regulator. In particular, no change should be permitted in the composition of a given brand. Necessary changes would be made in the Drugs & Cosmetics Act, 1940 in this regard.”

Read Related: What would be Trade Margin if government fix margin for Pharmaceutical Products?

Few years back, manufacturing companies got approval with Brand Name, Generic Name and Marketed by companies Name from state drug department which was not a desirable practice when marketing is done at the national level. State authorities wasn’t check for brand name already approved/applied within state and/or approved/applied in other states. So, these types of approvals were stopped and approval from generic names were started to manufacturing companies. Once a generic approval was given to a manufacturing company, it was allowed to manufacture any number of brands with single generic approval. It worsen the condition because drug authorities don’t have any control of manufacturing from Brand Names.

 At present present, manufacturing companies get approval by generic name. So drug department don’t have any control at third/contract party manufacturing and brand name fixed by manufacturing and marketing companies. Brand Name registration is at present come under Intellectual property act only and Intellectual property doesn’t cover composition or active ingredients or any technical detail.  Possibility is there government want to regularized third party manufacturing. Draft National pharmaceutical policy, 2006 suggested to transfer brand name approval to central drug regulatory system. But minimum chances of banning third party manufacturing

As per our analysis, it would be compulsory to take brand approval from central drug regulatory by manufacturing or/and marketing company before launching a new product in market other than generic approval by state authorities. Without that no marketing or/and manufacturing company shouldn’t market a product in Indian market. Brand name approval should be compulsory from central drug regulatory whether a manufacturing company has generic approval from state authorities. It will helpful in controlling brand name conflicts as all approvals will be made from single authorities and all records will be maintained. Banning of third party or/and contract manufacturing is not a solution.

One another hot issue of new drug policy is related to labeling of single active ingredient preparations. It is suggested that all single salt preparations should have only generic name, not brand name. Many developing countries have adopted this label pattern along with many developed countries. In India if this implements, it should be welcomed by pharmaceutical industry. If that happens, A single active ingredient will be like a classical preparation in ayurvedic medicines. A well known Ayurvedic Classical Preparation “Ashokarishta”. We find only company logo like Dabar, Zandu, Elzac etc and Name will be same as Ashokarishta. Likewise only Logo in single pharmaceutical active ingredient preparation would be allowed and salt name will be same below logo.

Hope above information is helpful to you…

For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

What would be the Trade Margin Under New Pharma Policy?

New Pharma Policy is hot issue in pharmaceutical sector now days. There are many rumours circulating in industry about new pharma policy. Some may be true and some may be false. Most concern rumours are Banning of Contract and Loan License manufacturing, Fixing of Trade margins and removing brand name from single salt preparations. In this article, we are going to discuss about trade margin fixation. If trade margin has fixed then what could be it. Here we are taking the reference of Draft National Pharmaceutical Policy, 2006. Trade margin is complex phenomena and has been the subject of intense debate from time to time. Everyone has own views in this matter. If government fix trade margin then there is maximum possibility, it would be as described below:


Fixation of Trade Margins in Pharmaceutical Sector:
In case Trade Margin is to fixed then the trade margins for different drugs would be:

Drugs under price control (DPCO):

For Both Branded and Generics Drugs
Wholesaler Margin: 8% 

Retailer Margin: 16%

For Other Drugs(Not under Price control):

For Branded and Branded generics

Wholesaler Margin: 10% 
Retailer Margin: 20 %.
For Generics 
Wholesaler Margin: 15% 
Retailer Margin: 35%

All margins would be calculated on the MRP of drug or trade rate.

Related Article: New Pharma Policy: Would Third Party/Contract Manufacturing be Banned?

How to Start Pharmaceutical Marketing Company in United State of America (USA)

Starting a company or business involve few essential step in every field. Same for pharmaceutical company. Here we are going to set-up pharma marketing company in USA with minimum investment and time through out sourcing from India. For starting company in united state, first you have to fulfill company registration, product registration and licensing formalities in America.

Steps involve in start a Pharmaceutical Marketing Company in USA:

  • Get Pharmaceutical Business Assistance, Experience and Training
  • Write a Business Plan
  • Choose Location of Business
  • Finance Source (Own Saving, Bank Loan, Investment etc.)
  • Choose Company/Business Name (Doing Business As)
  • Registration of Company (Proprietorship, Partnership, LLC, corporation, non profit or cooperative)
  • Registration of State and Local Taxes
  • Apply for EIN (Employers Identification Number)
  • Apply for License and Permit for conducting Pharmaceutical Business
After complete Business registration, you are eligible to start Pharma Marketing Company in USA. Now you will need to procure Medicines with Marketed by Name of your Company. Here we are going to tell you low investment method to procure medicines by your marketed by Name. India is one of the largest manufacturer of medicines in world and it could be helpful in starting Pharmaceutical Marketing Company in USA. For outsourcing pharmaceutical products from India, following steps has to be followed:
Hope above information is helpful to you…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

How to Create an Effective Facebook Advertisement Campaign Pharmaceutical and Healthcare Sector?

We all know Social Networks. We all know Facebook. We all know Facebook sells ads. We all see sponsored posts in our news feeds. We have become used to these posts. Facebook is a business who sell ads to its member. Facebook emerged as a powerful tool for marketing and branding in online era. But unfortunately researches show that only 10% of Big Pharma and Healthcare Brands are successful in creating good social presence and followers engagement. Facebook and other social networks are marketing monsters tools that can’t be ignored by Healthcare Sector. But most of companies are suffering to get followers engagement. That means either people are not interested to get healthcare information at social networks or Companies have been failed to create such information and social presence that are unavailable to satisfy users requirement.

Social Networks could be helpful in brand building along with getting some business but for this we have to learn how to use face for business promotion. Here we are going to discuss about Facebook Business Promotion and effective Facebook Ad campaign. In this article we will discuss things to understand for effective Facebook Page building, How to create a Facebook business page, how to run effective facebook ad campaign. First discuss about important things about Facebook Page.

Before starting with facebook ad. We first learn to need about Facebook way of working. We have a option of creating Page. Facebook considers a Page as Business. If we are going to create a page at facebook. Facebook will thing its our business. For example we created our Facebook Page Pharma Franchise Help to promote our blog at social network. This page prime purpose to create presence at social network. That doesn’t become effective and number of likes, shares wasn’t as effective as it should be. Reason of not getting popularity was not poor content or not having good information but prime reason is that Facebook has changed its policy and number of Page feeds in Users Post was declined by facebook at major extent. It has removed 90 percent of page feeds and only show 10% page feed when an user log in his account.

That’s the major set back for new facebook pages who recently become aware about Facebook as advertisement tool and we consider it free marketing tool. That was our elusion, it was not more free. Either we have to create more viral content or we have to pay to facebook for showing in users feed. With page having 25000 page likes, a page post will hardly reach to 1500 users organically. Percent of organic reach is much lesser then we expect. From 1500 users hardly 80 to 90 person will engaged with post. Engage word is used at Facebook for any action taken by user for particular post like Likes, Share, Comment etc. These numbers are very less.

Reason behind these lesser organic reach is to boast advertisement and encourage business pages to pay more to facebook for more engagements. So facebook is no more free for business. Its free for its users because they help it to get money from businesses. Facebook Ad is good way to making brand awareness and effective way to tell people that we are also present in market. But its good way to get instant business in healthcare sector or not is matter of more research.

Things to be considered For effective Facebook Ad Campaign:

  • Start with Low Budget and Increase it gradually according to response from previous advertisements.
  • Don’t Directly Sell any thing at Facebook. Facebook is not for selling purpose. Facebook is one of the best tool to get brand building and brand awareness. Selling too much or offering too much can’t cause negative branding.
  • Use Best image related to company/organisation/service or providing valuable information is good way to start Ad campaign. Image and videos get more engagement as compare to simple text post. Facebook also advice to get started with image (with minimum written portion) and video to get better results.
  • Provide valuable information at Business Page. Don’t promote unnecessary own self. People use Facebook to contact with other people, acquire knowledge and spend free time interestingly and with entertainment. They don’t use it to buy or sell any thing. If we provide valuable information, own brand will automatically highlight.
  • Small Post, Interesting Images and Short Videos are best way to contact with our followers. Original post, images and videos get more engagement as compare to copied.
  • Don’t follow or copy techniques and ideas of other pages. Create own style and ideas to promote own brand. If others are using any idea and we use same then why people will like or follow us to get information or entertainment.
  • Post regularly. Pages with regular posts get more engagement compare to pages with rare posting.
  • Create a Blog. Blog is one of the most crucial way followed by big brands to engaged with its customers and followers. Having blog and posting regular posts at page give it more ethical look to a Business Page.

This could also be helpful to generate franchise/pcd queries for Pharma Companies. As we mentioned in our Article how to generate sale and parties for Pharmaceutical franchise Company, Facebook may be an important tool for getting Pcd and Pharma Franchise Queries and generating sale. Now many pharma franchise companies have started to experiment facebook ad. Before this Google Adwords was only way to get franchise queries by means of using online advertisement other then promoting own website or certain portals whose most of queries are always fake. Facebook Ad is good way to making brand awareness and effective way to tell people that we are also present in market. But its good way to get instant franchise query or not has not surety. As we analyse it, its not an instant way to get franchise distributor or persons. Its way to promote company to create interest and awareness about products and services.

How to Create Facebook Business Page?
Steps For Desktop:
Step 1: Log in at Facebook profile (Individual/Company etc)

Step 2: Click at Right corner button as shown in below image

Step 3: Click at Create Page as shown in above image.
Step 4: A create page option will open. Showing option for which type of business we want to start or page will represent which type of option from below options. Options will be generally as like:

  • Local business or Place
  • Company, Organisation or Institution
  • Brand or Product
  • Artist, Band or Public Figure
  • Entertainment
  • Cause or community

As shown in below image

Step 5: Click at Company, Organisation or Institution Option if we want to promote Company. Click at Brand or Product option if we want to promote any one or certain products.

Step 6: Choose from the category and Enter Name of Organisation or Company.

Step 7: Click at Get Started at shown in Image above. A Page Showing Company Name will be open as shown in Below image:
Step 8: Add Cover photo, Set user name and add logo or company profile picture at places shown in picture above. We can also invite our friends to like this page.
Step 9: Now Facebook Business page has been created. This will be like as below image after adding all things:
Now we have a Facebook Business page for advertising, promotion and brand awareness at this giant social network.
Steps for Mobile:
For mobile Facebook app either login in Facebook app or Facebook Page Manager App. In Facebook app click at profile section. Scroll then below to find Create Page option. In page manager app click at left side menu, scroll down to find new page option. Enter Name of Page as per Company Name or Brand Name and Follow the steps.
Step 1: Click at Create page option as shown in Image below:

 Step 2: Click at Get started option for proceeding to building page as shown in below image:

Step 3: Enter Page Name from which you want to start. Name may be Company Name, Brand Name or Any other related name.
Step 4: Choose Category for your page. Click at choose category option. 

 Step 5: Choose Category. Select as per need. Whether we are company, organisation, a brand or product or blog or website. What ever we are, we have to choose.

 Step 6: Choose Sub category as shown below:

 Step 7: Click at next to proceed

 Step 8: Add Company/Organisation or blog or any other related website if we have. If don’t have skip it.

 Step 9: Add profile picture. Generally logo. If don’t want, skip it

  Step 10: Add cover picture. Generally best from the images. If don’t want, skip it

Step 11: We will have Final Facebook Business Page
How to Run an Effective Ad Campaign at Facebook?

Facebook allow to advertise Page, Post and company website in Business Page. These can be handled by our Business Page. Business Page is boosted to get more likes and create brand awareness among facebook users. Page Post is boosted to get more visitors at particular article, product web page or service section etc. If our motive to get more visitors to our website then we can boost website to users to get more visitors to our website.

Facebook campaign could be fruitful if managed properly and could have been totally waste of money and time if not managed properly. Facebook has huge user base. These users belong to different interests, professions, regions, languages, society and cultures etc. All are not useful to us. One of the main reason of failure of Facebook ad Campaign is not targeting accurate audience. Visitors at our website that don’t have pharma interest or those don’t need any type of distribution or those don’t have qualities to become future customer are not of our interest. Like wise Page likes from persons who are not interested in our products or service or not related to our profession are not useful to us. We need only pharma professionals or who have interest in our products or service and has possibility to become our future customers.

Before promoting or starting advertising campaign at facebook, first we need to choose our audience type and who could be our future potential customers. If we are looking for pharma franchise distributors, we need to promote our page, website or post at targeting persons who could be our future franchise associates. Our target audience could be Medical Representatives and Other Pharma Sales Persons, Distributors/Stockists, Chemists/Pharmacies, Doctors, Doctor’s staff members, Hospitals, and other pharma professionals etc.

If we want to get most of from our facebook campaign then we need to target these communities only. Along with interest type promotion, we also need to set geography of campaign. Suppose we need parties or distributors from South India then we have to set location and geography of our campaign to get most of from lowest budget as possible. Until we set-up target audience base campaign, we can’t find benefits from Facebook advertisement. Without homework it will be waste of money.

For starting Facebook Advertisement Campaign, following step will be involved. Other then this Facebook also give boosting option frequently while we post, add website or scroll down to our feeds as showing in above two images.

Step 1: Visit at own Facebook Page. For example: www.facebook.com/pharmafranchisehelp
Step 2: Click at Promote. Promote option is available at Facebook Page as shown in above two image and below image:

Step 3: A pop-up showing How would you like to grow your business will open. Choose best option we want to start promotion. Click at promote your page to get more likes and engagements. Click at Get more people to contact to get click at call to action button which could be set-up according to individual need. Click at Get more website visitors to promote company/organisational website so people reach directly to company website by clicking at ad link.

Step 4: Change Ad Creative like Wording, Images, re positioning image etc.

Step 5: Audience Setting. Most crucial Step. Right audience selection can build a brand whereas wrong audience type can result in waste of time and money. Choose carefully audience section.

Step 6: Set-up budget and duration of your Ad. First we should start with lesser amount of money. Gradually we can increase money and duration also.

Step 7: Click at Promote Button. It will ask to add money, credit card and other options for paying for advertisement at Facebook. Add money or use credit card to pay to Facebook and Ad will be submitted for review. If Ad get approval then it will start to show in users news Feed.

Hope above information is helpful to you…

For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Mail Social Media Powerful Marketing Tools are:

How to Start Ayurvedic Business?

Complete detail about starting Ayurvedic Business. Click at article about Ayurvedic business you want to read
If your query is not present in above linked articles, then mail your query at pharmafranchiseehelp@gmail.com

Pharmacy, Pharmacist and Pharmacy Education. Every Thing you Need To Know?

Complete detail about Pharmacy Profession. Click at article about Pharmacy Profession and business you want to read

If your query is not present in above linked articles, then mail your query at pharmafranchiseehelp@gmail.com

Most Highest Profitable Business Opportunities in Pharmaceutical, Ayurvedic and Food Sector!

Most-Highest-Profitable-Business-Opportunities-in-Pharmaceutical-Ayurvedic-and-Food-Sector

Pharmaceutical Business is one of most profitable business throughout world. Main problem that is faced by most of person are from where to start, what are the legal and documentation formalities whether they are from pharma background or from any other background. Here we are going to prepare a list of businesses that are highest margin business in pharmaceutical business opportunities along with Ayurvedic and Food Sector:


1. Pharmaceutical Marketing/Distribution Company

Licenses and Legal Formalities:

How to Sell?

2. Pharmaceutical Manufacturing Company

Licenses and Legal Formalities:

How to Sell?

3. Carrying and Forwarding Agent (C&F)

Licenses and Legal Formalities:

How to Sell?

4. Wholesaler/Distributor/Stockist
Licenses and Legal Formalities:

How to Sell?

5. Pharmacy/Chemist/Druggist

Licenses and Legal Formalities:

How to Sell?

6. PCD Pharma and Pharma Franchise Marketing and Distribution

Licenses and Legal Formalities:

  • Wholesale Distribution Agency; or/and
  • Appoint a Wholesaler or Distributor

How to Sell?

  • Prescription Marketing
  • Generic Marketing
  • Pcd/Franchise Marketing
  • OTC Marketing
  • Institutional Sales (Hospitals, Tenders etc)
  • Export

7. Pharmaceutical Raw Material Supplier

Licenses and Legal Formalities:

  • Wholesale Bulk Drug License Number
  • Goods and Service Tax Identification Number
  • Shop Registration (if Applicable)

How to Sell?

  • Supply to Pharmaceutical Manufacturers
  • Institutional Sales

8. Pharmaceutical Raw Material Manufacturing

Licenses and Legal Formalities:

  • Company Registration
  • Bulk Drug Manufacturing License Number
  • Bulk Drug Wholesale License Number
  • Goods and Service Tax Identification Number

How to Sell?

  • Supply to Pharmaceutical Manufacturers
  • Raw Material Suppliers
  • Institutional Sales

 

9. Ayurvedic Marketing /Distribution Company
Licenses and Legal Formalities:

  • Company Registration
  • Goods and Service Tax Identification Number

How to Sell?

  • Prescription Marketing
  • Generic Marketing
  • Pcd/Franchise Marketing
  • OTC Marketing
  • Institutional Sales (Hospitals, Tenders etc)
  • Export
10. Ayurvedic Manufacturing CompanyLicenses and Legal Formalities:

How to Sell?

  • Direct Marketing ( Marketing type mentioned for marketing/Distribution company)
  • Third Party/Contract Manufacturing

11. Food and Dietary Supplements (Nutraceutical) marketing Company

Licenses and Legal Formalities:

How to Sell?

  • Prescription Marketing
  • Generic Marketing
  • Pcd/Franchise Marketing
  • OTC Marketing
  • Institutional Sales (Hospitals, Tenders etc)
  • Export
12. Food and Dietary Supplements (Nutraceutical) manufacturing CompanyLicenses and Legal Formalities:

How to Sell?

  • Direct Marketing ( Marketing type mentioned for marketing/Distribution company)
  • Third Party/Contract Manufacturing

13. Cosmetic Marketing/Distribution Company

Licenses and Legal Formalities:

  • Company Registration
  • Goods and Service Tax Identification Number

How to Sell?

  • Prescription Marketing
  • Generic Marketing
  • Pcd/Franchise Marketing
  • OTC Marketing
  • Institutional Sales (Hospitals, Tenders etc)
  • Export

14. Cosmetic Manufacturing Company

Licenses and Legal Formalities:

How to Sell?

  • Direct Marketing ( Marketing type mentioned for marketing/Distribution company)
  • Third Party/Contract Manufacturing

15. Printing and Packaging Material Manufacturer and Supplier

Licenses and Legal Formalities:

  • Company Registration
  • Any Legal Requirement for setting-up printing industry
  • Goods and Service Tax Identification Number

How to Sell?

16. Machinery/Equipment Manufacturer and Supplier
Licenses and Legal Formalities:

  • Company Registration
  • Any Legal Requirement for setting-up machinery or lab equipment industry
  • Goods and Service Tax Identification Number

How to Sell?

17. Consultancy and Legal Service FirmLicenses and Legal Formalities:

  • Firm Registration
  • Goods and Service Tax Identification Number
  • Legal Qualification (If required)

How to Sell?

  • Plant or/and New Company Set-up
  • Legal matter Consultancy
  • Placement and Man Power Provider
  • Marketing, advertisement and administration Support etc

18. Blogging and/or Industry Informational Website

Licenses and Legal Formalities:

How to Sell?

  • Write information articles, Videos, designs and/or News
  • Share through Social media, Website, Blog
  • Earn through Adsense or other online advertising tools
 
19. Pet/Glass Bottle, Cap Manufacturer and SupplierLicenses and Legal Formalities:

  • Company Registration
  • Any Legal Requirement for setting-up these industry
  • Goods and Service Tax Identification Number

How to Sell?

  • Supply bottle and caps to Manufacturing Companies
Hope above information is helpful to you…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

How to Start TV Shopping Channel Business Model Ayurvedic Company?

Query:

First of all, I would like to thank you for the information provided in your article on http://www.pharmafranchisehelp.com/2015/12/how-can-i-start-ayurvedic-herbal-drug-cosmetic-marketing-company.html

We are very interested in starting an Ayurveda medicine marketing company. For this we have few queries:
1. Our business model is based on TV Shopping channels. We have extensive experience in this business with mostly electronic products. Is there any legal issue, if we want to get into Ayurveda medicine selling on TV shopping channels?
2. We do not want to get into manufacturing so we are looking at third party manufacturers. Will these third party manufacturers have any issues if we sell their product on TV channels?
3. Can you help us connect and meet with third party Ayurveda medicine manufacturers in Delhi or other parts of the country?
Your response is awaited!

Response:

1. Most of Ayurvedic Products are sell as a Over the Counter Products. you can sell these through TV Shopping channel but you can’t claim any treatment or cure from these products in advertisement. You can use Useful or Helpful words while claim any indication There are certain laws and regulations for Ayurvedic Products advertisement, you have to follow them only. Few Ayurvedic Products are required use under medical supervision, only these products can’t be sell through TV Shopping Channel. If you can arrange any BAMS doctor to solve the problems of patients through TV as many channels and advertisers do, then it will be much better.
2. Through Third Party manufacturing, manufacturer will manufacture products with your brand name. In your brand names and company name, manufacturer will not have any objection where you sell your products.
3. We are based in Karnal (Haryana) near Delhi. We have very strong links with Ayurvedic Manufacturers. Call us at ——– for arranging meeting with manufacturers.

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