Pharma Franchise of Pharma Company
There are Different Types of Pharma Companies that operate in the Indian Domestic Market. They are as under:
- Promotions
- Franchise
- Generic
Promotion Pharma Companies:
These are the type of companies that has a Promotional sales model. It means that the company sells its products via the sales method for which they appoint Medical representatives. Medical Reps promote the products to Doctors and they convince them to prescribe their company’s brands to patients. The major expense goes into salaries and promotional inputs. This is a High Profit, High expense model. In other words, this model operates through proper Sales Team and through the Sales team promote the brands. Companies like Cipla, Sun Pharma, Lupin Laboratories, Torrent Pharma, Novartis, Glaxo, and other companies come under this category. They are broadly divided into national and Multinational Companies, most of Pharma Market is with top 100 such companies. Sales of these companies are recorded and with the growth and degrowth of these companies that the Pharma Industry grows or de grows.
Franchise Pharma Companies:
These kinds of companies introduce their own brands in the market not through a team of Medical Reps as is done by Promotional based companies, but they promote their products through a network of Pharma Distributors. These Pharma distributors stores and sells the company’s products and are called Pharma Franchise or Pharma PCD. This is an upcoming model that is time tested and profitable and most of the young entrepreneur is falling for this model. The investment required is low and it brings out handsome profits. The investment expected is as low as 25000/- to 50000/- and with this investment you can have a basket of products suiting the interest of your customers. The franchise is given Monopoly rights of the district earmarked for them and they are supposed to operate within that district.
Franchise companies support with inputs and promotional items, leave-behinds and Gift items that come handy in the promotion. This is Low investment low return business, it is appreciated because it reduces the companies hiring and running cost. The only cost involves is finding suitable parties all across India and bring them onboard and extracting improved business from them.
Generic Pharma Companies:
In this model the pharma companies manufacturer its own brands and sells them through a network of Distributors, who have in their network multiple retailers, they thrive on the fact that these chemists would push the brands to over the counter patients, there is a huge margin with the retails and he is incentivized to sell a particular companies products, Pharma companies neither invest in sales team nor on appointment of Pharma Franchise, but they deal only with established distributors those have high network of retails attached with them.
This is a High Volume, Low-profit business and the success of this model depends upon the turnover of the company. Leading companies like Cipla Generics, Lupin Generics, Alkem Pharma, IPCA Pharma are in this segment and they are doing good business. The total dependency in this business is on the chemist and they are the deciders of which company they have to promote since the profit margins for the retailers is huge they naturally try to promote or in other words push Generic companies brands.
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