What is Pharma Franchise Business? Reasons of Popularization and Future Aspects

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.

Pharma Franchise Business Concept:

First we need to understand the Pharma Franchise Business Concept. Pharma Franchise Business Concept is worked at business agreement between two parties. Supplier and Seller.  Supplier may include Pharmaceutical Marketing Company and/or Manufacturing Company, carry and forwarding agent, distributor/wholesaler etc. Seller may includes CNF, Distributors/Sales Professionals/Agencies, retailers etc.

Supplier procure and/or produce the product where as seller promote and sell the product. Profit margin, promotional and advertisement material, expenses etc is as per mutual agreement.

Generally product investment at stock & new products, promotional inputs and advertisement etc is taken care by supplier end whereas doctor’s expenses, market investment, sales persons expenses  etc is taken care at seller’s end.  Read in detail about Pharma Franchise Business and How it Works?

Why franchise business concept (PCD) is popular in pharmaceutical sector? We will try to focus at the reasons and causes.  

Reasons of Popularity:Low Marketing Cost: 

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 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.

Profitable:

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.

Easy Availability:

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.

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 multinational 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 above information is helpful to you…

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