What’s a PCD pharma franchise business model, and How Does It Work?
What’s a PCD pharma franchise business model, and How Does It Work? – Today, the pharmaceutical business in India is at its peak and is expanding its fangs, with rapid speed, many new businesses and entrepreneurs stepping into the market and proving their capabilities, and contributing to the pharmaceutical industry for its growth.
PCD stands for Propaganda Cum Distribution, it refers to ausiness model where pharma companies gives exclusive right to the distributors or franchisees to promote, distribute, and sell their products in a specific region or territory. This helps new businesses and entrepreneurs to establish their businesses in the market and make profits. The PCD business model involves many other benefits such as promotional support, product range, low investment and many more that give the new business an advantage in the business.
Important Points to Consider While Selecting a Partner in a PCD Franchise
Here are some of the Important points to keep in a checklist while selecting a PCD pharma franchise:
Company reputation and market presence: Check the feedback and reputation of the PCD company in the market. Check about credibility, experience, market presence, customer reviews, performance history, and legal status.
Product range and Quality: Look for their product range and WHO-GMP compliance for high-quality products.
Monopoly Rights: Check whether the company provides monopoly or distribution rights for your chosen area. Clarify the territorial exclusivity to avoid competition with other franchisees.
Availability of Promotional & Marketing Support – Go for companies that offer promotional materials such as visual aids, MR bags, product samples, and marketing gifts. Strong promotional support can boosts your visibility in the market.
Profit Margins & Pricing: Evaluate the profit margin offered on products and compare net rates and MRP to ensure profitability.
Stock Availability & Delivery System: Choose a partner that maintains consistent product availability, Reliable and timely delivery
Payment Terms: In the agreement and Meetings discuss and understand the company’s payment systems, including advance, credit facilities, and discounts.
Certifications and Licenses: The company must have a valid drug license, GST registration, and required certifications like ISO, GMP, or WHO-GMP to ensure the safety and quality sstandards of the products .
Terms and Conditions: Make a written agreement regarding monopoly rights, payment terms, return policies, and other relevant terms to ensure
Growth Opportunities: Partner with a company that offers long-term business potential like product expansions, marketing campaigns, and region-wise growth options.
Field Support & Training: Many companies provide training or on-ground support to franchisees. That can be useful for a new pharmaceutical business.
How Does a PCD Pharma Franchise Business Work?
The working of a PCD pharma franchise is quite simple. Here are some of the working and operating methods of PCD Pharma Franchise.
Agreement Between Franchiser and Franchisee
The pharma company offers rights of sale and distribution to a distributor or individual and other benefits to them, and forms an agreement. This franchise agreement will identify a specific area or territory, defined as a district, state, or zone.
Selection of the Geographic Area:
Franchisees typically have exclusivity to a defined geographic area, and both will select the area that will be suitable for them to operate. To prevent a fictive scenario of competitors selling the same product potentially back to back, and provide the franchisee full rights to the territory.
Product Supply
The franchiser provides the product to the franchisee at net rates, and the franchisee can sell the medicines at MRP and retain the profit margin.
Marketing Assistance
The company provides marketing, advertising, and promotional material, such as :
Visual Aids
- Product Samples
- MR bags
- Visiting cards
- Promotional items like pens, pads, diaries, etc.
Capital and Risk Factors
The risk factor like financial loss is relatively low , you could start at ₹10,000–₹50,000 depending on the company and area.
The risk of business operations is minimal since you are working with a substantiated brand and proven product.
Ordering and Shipping
The franchisee places orders for products to the pharma company. The pharma company will ship the order with a courier or transport company.
What are the Documents Required, and Who Can Start a PCD Pharma Franchise
Documents required for starting a PCD Pharma franchise are
- Drug License
- GST Registration
- PAN Card
- Agreement (as per company terms)
- Identity & Address Proof
PCD Pharma Franchise is Ideal for:
- Pharma professionals
- Medical representatives
- Distributors and wholesalers
- Entrepreneurs entering the pharmaceutical space
Conclusion
A new Business or an entrepreneur looking to step into the pharmaceutical industry often wonders What’s a PCD pharma franchise business model, and How Does It Work?, This blog contains all the information that an individual needs to know before stepping into the world of pharmaceutical. The Propaganda Cum Distribution, or PCD model is the perfect choice for a new comer to start their business journey in the field. This supports a new business’s financial, product gathering, promotion and many more important aspects.
