One major point which is clear that basic things in Pharma franchise and Pharmaceutical marketing are not very much complex. It is simply appointing pharma franchise partner or distributor for your company who will also do pharma marketing related jobs for you along with distribution and supply.
All the drugs carry the same manufacturing cost whether it is ethical drug or pharma franchise drug. For instance suppose if a Paracetamol manufacturing cost is Rs. 50, then it will remain same in all the cases whether you are going to sell that product ethically or in Pharma Franchise/PCD Market. The major contributor of rate differences are the Marketing and Distribution expenses.
In the ethical marketing, all the expenses whether it is marketing, travelling, distribution, employee food, entertainment or any other routine expenses are beard by the Company only which will added further in the cost of the product and they print the MRP of the product including their profit margins after including their whole expenses in the product.
Same is the case of Pharma franchise/pcd Pharma marketing. Generally Pharma companies they do not indulge themselves directly in marketing because of which their marketing expenses are very low as compared to the direct Marketing companies. Their major responsibility is to manufacture the quality products only and do market their products as per the satisfaction of their franchise partners. They simply add their profit margins to the manufacturing cost and sell their products to their franchise partners on a franchise price which are called Net prices but in this price the marketing and selling expenses are not added directly to it. The reason behind this is that all the jobs related to Sales and marketing are done by the distributors or maketing persons only. The Franchise partners market the products at their own cost and the promotional material is supplied by the company or arranged by themselves.
These Pharma Franchise partners are mostly sales representatives or marketing persons who have very strong hold in the market and good relations with their doctors and pharma professionals. They receive product on a net price and sell these products in the market on a trading price, stockist price, mrp or net rate as per the calculation. The marketing professionals or distributors who do marketing for franchise companies are called as pharma franchise partner. It is like a business partnership among two parties who are dependent on each others for selling their products. In this concept the companies totally dependent on their franchise partners for the selling of their products. On the other hand the Pharma Franchise partners have to depend on the company for the regular supply of products.
The calculation of profit and expenses of pharma franchise is same as in the case of Branded/Ethical or direct marketing with a only difference is that in this case two parties are which have joined hands together to complete a single task at sharing basis. Here both the parties get more benefits with minimum infrastructure and minimum risks. Pharmaceutical companies try to reduce their sales expenses and franchise partners try to reduce their office or manufacturing expenses with this system in which there is no requirement of large teams or big distribution channel. This requires only one pharma company with its own brands and one pharma marketing professional who is interested to sell the pharma products in their local markets.
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