Date Time: 2023-03-19 14:00:35
Pharma franchise may be an unfamiliar word for common people but is a well-known jargon for an individual who is related to the field of medicine, drugs, or pharmaceutical sector. In the era of 1990s when India began its new era in various sectors towards industrialization. There was one sector that was going to change the whole concept of industrial enterprises in India and that was “The Pharmaceutical Sector”.
The concept of the Pharma franchise business totally changed the direction of the pharmaceutical sector as it provided many new and innovative opportunities to small pharmaceutical companies and pharmaceutical professionals who want to incorporate their own business and want to achieve growth in the field of Pharma franchise business.
To understand it in a broader sense, we need to understand first what is franchise business…
BUSINESS – A business is termed as an organization or enterprise which is an entity working in commercial, industrial, or professional activities. The term business is also been defined as the organized efforts and activities of individuals or organizations to produce, promote and sell goods and services for profit.
FRANCHISE – An authorization given by a government or private company to an individual or group of persons allowing them to perform specified commercial activities, for example acting as an owner of a certain brand for the company’s products in his specified or allocated area.
In this blog, you will be able to learn about the important insights of the pharma franchise business…So let’s start…
Table of Contents
PCD Pharma franchise is defined as an authorization or permission granted or provided by a pharma company or an organization possessing the rights, to an individual or a group of persons competent to perform the specified commercial activities as a business owner of franchise market for the company’s brand in their own market and also for the sales and promotion so as to establish brand name & gain the profits in the long run.
While incorporating the pharma franchise business you own the sole rights and respond to market and distribute the products of the company in your own specified area.
The franchise model works on the basic fundamentals and principles of freedom of work and time. In a broad sense, the franchise should work in the line with the essence of the market and work ethics laid down by the company that permits it.
We see a lot of franchise businesses around nowadays with many improved and innovative business opportunities. The concept of a pharma franchise is one of the most lucrative business opportunities in the pharmaceutical sector.
When a pharmaceutical company grants authorization to a person or a company to use the proprietary knowledge of products, brand names, and other intellectual property within the predefined framework, then it is called a pharma franchise. A few important attributes that are important to keep in mind for the same are :
Since it is based on the business between the franchisor and the franchisee, it is very much important to keep profitability at number one on the priority list.
It basically works on three important propositions that are; The franchise model defines the responsibilities, the supplier either produces or procures the product and, the franchisee promotes and sells the products.
All viable attributes and strategies, such as marketing and promotional inputs, advertising strategies, and share of profits are unambiguously defined in the franchise contract, and they are agreed upon by both parties.
Generally, in the pharma franchise business the two parties are:
Responsibilities of a supplier :
Responsibilities of a seller :
These are just a few indicative responsibilities. The actual list is pretty long. And it slightly differs from one franchise to another franchise.
As per the current market scenario, there are huge benefits of investing in the PCD Pharma Franchise which constructs a great business opportunity for pharma professionals. The below-listed points clearly show that the pharma franchise is providing a big scope to the market players.
As per the latest reports by Forbes, the Indian pharmaceutical sector stands in the second position with the maximum job opportunities to youth’s around the corner. PCD Pharma Franchise is the most trending business segment in the present scenario. In India, PCD Pharma Franchise Companies is gaining a lot more importance as compared to any other business opportunities.
Consequently, many pharma companies have adopted the franchise model & the list is continuously increasing which clearly shows the potential in the pharma franchise business segment.
As we all know that the Indian pharma sector is all set to become a leader in the global market, this growth will be fueled by small and medium businesses like the pharma franchise sector. While there are many large companies also which may have significant headway. The main push comes from the same sector whether from small, medium, or large pharmaceutical companies. Not only the pharma sector would take in the domestic sector, but will also touch great heights internationally.
The PCD pharma franchise is an important part of the growth-taking pharmaceutical sector. Tasked with the propaganda and distribution of pharmaceutical products, the PCD firms have been key in creating a bigger market for Indian drugs. They are an integral and important part of the pharma sector, often acting as the essential support system for small-scale companies that are not able to operate marketing on their own.
One thing which is very important for the success of the newly incorporate pharma franchise business is a selection of the right pharma company. The process is almost similar to that is being for identifying and appointing a key business partner.
Here is how you can make the right selection:
Proper Research and Development: Each & every important decision of business has to start with key research. You may start by researching some of the best PCD companies in the region or field. You can do simply do a Google search or look into directories.
You can also ask among your peers and industry forums as a reference can sometimes be the best possible solution. After surfing all, select 3-4 companies: check out the company websites, their clients, company’s standing, infrastructure, services capabilities, and other relevant details. Your great research and clearly defined objectives can help you find out a great and bright future for yourself.
Know-how: The pharma sector is actually quite wider with generic drugs, branded drugs, medicines for chronic diseases, ayurvedic medicines, and many more. The pharma franchise you opt for will be an important business partner. Hence, the franchisor must have expertise in the field of your operation.
The franchisor must understand consumer behavior, what drives it, and how it can be worked to your advantage. Even if you are going for a newly launched company, look for contenders who come well researched. This is the best criterion for a commitment to the job.
Financial strength: As stated before, the PCD firm is your business partner, and its financial strength will often mirror yours. You do not want to partner with a firm only to discover later that it is neck-deep in debt. You can do a little research here to find out about the PCD pharma franchise company, its sales returns, market position, brand value, and its financial position. Do not hesitate to ask them for relevant records.
Distribution network: One of the main functions of a PCD firm is distribution. Hence, it is crucial to evaluate their capabilities in this regard. Find out the distribution network, its infrastructure, scope, and reach. A few questions that may help you in this regard can be :
How can they help you expand the market? Or consolidate your position in the present market? You are looking for a clear business strategy and a plan of action.
Warehousing facilities: A distribution network will sooner or later need a viable warehousing facility where drugs can be stored till required. This ensures a ready supply when needed as well as providing valuable storage facilities. Many small businesses do not need sun facilities in the beginning, but all too often as they grow, their requirements also change.
If you are depending on the distribution firm’s warehousing facilities then make it clear. Ask to see the warehouse and check all details such as the safekeeping of drugs, security presence, and so on.
International capabilities: This is important for such firms who wish to expand in the international market. A PCD firm can be extremely valuable in this, especially for organizations in the SME sector. A PCD pharma franchise firm that claims expertise must have an international network that may include other partners, dealers, and retailers in the international market.
It is also important to know about the actual stock of their entire operation, their area of expertise, and their marketing tactics. You must also check out their network and area of operation where they are strong. This must, of course, correspond with your own market strategy.
Customer Relationship: Relationship with the customers is another vital function for a PCD/ propaganda cum distributor or pharma franchise system in an overcrowded market, this could be the deciding factor. Your PCD firm must not just distribute your medicines, it must also create a market for them. So, always scrutinize the marketing team in place and their experience, expertise, and any past campaigns. You are looking for innovative campaigns, an understanding of the consumer, and a clear strategy.
Selecting a PCD pharma franchise company is an important decision that must be taken after considering several important factors. These include their financial position, the distribution network, and their ability to develop a cohesive and innovative marketing strategy.
Challenges and success are the opposite sides of a similar coin. It is right to say that ” Do not limit your challenges, instead of challenging your limits”. So, we all know that in every business whether pharma or any sector there must be some challenges. Some of the challenges that you may face in PCD pharma franchise sector are :
Increasing competition: The pharma sector is a very lucrative option in the pharmaceutical sector than any other business option so it attracts many new individuals in this field which tends to increase in competition in the pharma sector and confronting the competition is always been very tough. Increasing competition in the domestic and international market is squeezing revenues and margins.
In the domestic market, small firms are facing much competition as compared to large business houses. Internationally, the increase in competition is lifting up the market. This extends the scope of growth which is still one of the major sources of revenue to other less developed countries. The stiff completion from china in the same sector is another source of worry since Chinese firms are very good at ensuring low costs.
Poor Customer Retention Strategies: Historically the pharma sector has always suffered from weak customer retention strategies. Usually, this is because there is confusion over who is the customer, the doctor who is endorsing your product or the end-user who will be using the medicine. In most cases, the pharma franchise companies always focus more on the doctor than the end-user.
The High Attrition Rate Of Medical Representatives: Medical representatives have to be charismatic salespeople. Although like other salespeople their jobs may essentially deal with propaganda and sale, their demographics are highly educated and experts in their field like doctors. In the field of pharma marketing, a medical representative (MR) is supposed to convince these experts to prescribe their product.
The problem they face in such Pharma Franchise Business is the skepticism of the doctors and their reluctance to assign time to the medical representatives. Unfortunately, finding such a fascinating medical representative is not an easy task. In addition, this profession sees a very high attrition rate. Either they leave before they gain the requisite experience or the investment that goes into their training is lost.
Difficulty In Getting New Drug Approvals: Indian laws focus more on the process instead of the product which tends to affect consumers when granting patents. While this is necessary for a country where expensive medication could be a death knell for many people, it does make patents for newer drugs much harder to get. This has also been a major disruption between big pharmaceutical firms and the Indian system. The patent law makes it very difficult for pharma franchise companies to sell their high-priced drugs in India. This has also affected the involvement of these companies in Indian markets.
Lack of Focus on Research & Development: As mentioned above, the increasing competition in the pharma sector has started to squeeze out the Indian firms. To overcome this obstacle, the future must be focused on increasing the innovations and diversifying the products offered. Unfortunately, Indian firms focus more on creating generic drugs instead of more focus on Research & Development. As international firms amalgamate, this approach could turn out to be an expensive mistake.
Quality Product Issues: Despite tightening rules and regulations, the united states of America is still the largest market for the Indian pharma sector. This is why the escalating scrutiny by united states authorities is becoming too tough to tackle. The WTO has also forced many Indian firms to play ball. As a consequence, quality issues have severely affected the pharma sector, including the pharma franchise sector.
Fuzzy Figures: Sales predictions in this field are usually not very reliable. This is because the true end-user demographic has rarely been explored. Most sales figures are obtained from retailers and wholesalers who often give uninformed or insufficient data. This affects the inventory and supply of the drugs.
After a direful run, the Indian pharma sector has confronted a slowdown. Pharma franchise must now understand the obstacles they are facing and work to eradicate them.
The first and foremost basic requirement for incorporating a pharma franchise business is basic experience and knowledge about the pharmaceutical sector, drug compositions their use, and implications.
Here are the few things mentioned below the basic documents that are required for pharma franchise :
Investment is another crucial step for any business. Regardless of any other pharmaceutical business, PCD Pharma Franchise Business requires minimal investment. A few attributes that are important to be kept in mind regarding this aspect are :
Pharma sector is one of the fastest-growing sectors of the Indian economy and definitely, people working in this sector have a bright future but it depends on your own skills and potential to grow and earn more. So, you can say that there is no limit one can earn and grow in the pharma franchise business.
Owing a PCD Pharma Franchise Business is an excellent career option in the Pharmaceutical sector. As with a very bright scope, you can earn very well as it includes very lucrative business deals that are provided by the pharma company.
If you well know about the below-mentioned attributes PCD Pharma franchise business can be very profitable to you:
As we all know that there are a wide number of PCD pharma companies in India. Different companies have different policies, so the procedure to incorporate a PCD Pharma Franchise may be slightly different. The general steps that need to be followed to start a pharma franchise are :
Every small or large business organization seeks some growth taking advantage. PCD Pharma Business is one of the best opportunities to grab for an individual who is looking for a career opportunity in the pharmaceutical sector. Some of the advantages of the pharma franchise business are discussed below:
As we all know that in the current scenario, many people think twice before starting their independent business ventures instead, they are looking for a franchisee.
While looking at the pharmaceutical industry there are two major types of franchise agreements that are prevalent in th
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