Tuesday, 26 March 2019

How Pharma Franchise Companies differ from One Another

How Pharma Franchise Companies are differ from Direct/Ethical Marketing Companies.

The manufacturing cost of all the medicines whether it is ethical or pharma franchise products are the same. For instance suppose if a Paracetamol manufacturing cost is Rs. 50, then the same price will be charged whether you are selling the 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.

The same is repeated in 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 marketing 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.

All those who were doing job as marketing sales representatives and have very strong hold in the market and have good relations with the doctors take franchise of their preferred products and start working as pharma franchise partners. 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.  They are called pharma franchise partners who do marketing for franchise companies. 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 and vice versa as the franchise partners are also depend on companies 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.

For Taking pharma franchise of Quality products with full monopoly rights in your area. Feel free to Whatsapp your requirement at 9355955555 for details or Submit your Query at our Website www.solacebiotech.in/