What is PCD Pharma Franchise?
Franchise is an Anglo-French word that means “Liberty” and is defined as an authorization granted by a company, organization or Government to any individual or group allowing them to carry out specific commercial activities, such as, marketing, sales, distribution, appointment of distributors, etc. for company’s products.
Likewise PCD Pharma Franchise is an authorization granted by a pharma company to any individual or group or distributor which allows them to utilize the pharma company’s brand names, products and trademarks for the benefit of the organization.
What is the procedure to start a PCD Pharma Franchise Company?
Different pharma companies have different terms and conditions for appointing franchise, so it is quite difficult to provide accurate procedures. Some companies offer state wise franchise whereas some provide zone wise franchise but most of the pharma companies in India provide district wise franchise. You can follow the below steps while starting your Pharma franchise business:
- Choose the product you want to market
- Select the companies for franchise.
- Send queries to the companies regarding franchise. Ask them whether they have vacancy for your area and if vacant, request them to send their product and price list.
- Then finalize the best possible pharma company for franchise.
- Make marketing agreement with the pharma company with mutually agreed terms and conditions, and start working with them.
The basic concept of pharma franchise and marketing is simple. A distributor is appointed for the company who will also do marketing along with distribution and supply. The pharma companies manufacture the product and sell to the medicine franchise companies by adding their profit of margin in the manufacturing cost. Franchise Companies market the products at their own cost. They must have a strong hold in the market and good relationships with the doctors as well as the pharma professionals.
In pharma franchise system, profits and expenses are calculated in a similar way as in case of direct ethical market. The only difference is that two different parties complete the work at sharing basis. For selling products, the pharma companies depend on their franchisee associates whereas the franchisees depend on the manufacturing company for regular supply of medicines.