PCD Pharma Companies

How to develop strong distribution and supply network channel

Building good and strong distribution channel is an important part of any business. Sales efforts become meaningless if a company doesn’t have a good distribution chain. Availability of products at a required time and at a required place is the main motive of a distribution channel. For starting any type of distribution channel, a marketing survey is an important tool. It will help in creating a strong network. In pharmaceutical marketing, the first thing we need to understand that how can we distribute our pharma products in simple and yet effective way. We need to involve fewer people in our distribution as it will prevent additional cost and time. Chances of mistakes will also be reduced.

Distribution Channel- It is defined as the chain of groups, companies or individuals involved in the delivery process of a product from production unit to its customer.

Parts of Distribution Channel:

  • Manufacturing Company
  • Marketing Company
  • C & f Agent
  • Stockiest
  • Distributor
  • Chemist/pharmacies/retailers

Doctors are also part of distribution channel because, without prescription, delivery of medicine to a patient is not possible but we don’t consider a doctor in a distribution channel.

A strong distribution channel is a requirement of any business but a good knowledge of ground level marketing is necessary for building strong distribution channel. It must work like blood veins and provide proper supply at the required place. There should be no blockage and any restriction in distribution channel because it can directly affect the sale of a company. It should be simple to prevent any type of mistakes. According to the distribution channel, if a customer will need any product, he or she will approach to chemist or retailer. The chemist should have that product at the time of requirement. Either chemist will replace it with a similar substitute or mention not the availability of a product or convince customer for procurement at given time. This commitment will be on the basis of availability of a product. Here reputation of distributor makes the difference because retailer calls to his known distributor for procurement of the product. In that case, the distributor should make available that product to the retailer via a channel of stockiest.

Building a Strong Distribution Channel

Prescription Marketing: Main source of business in prescription marketing are doctors, so one should focus on doctors and nearby hospitals/chemist.
Focus on-

  • Availability of doctors in particular territory and divide them according to their specialty. (Gynaec, Surgeon, Physician etc.)
  • Number of Hospitals and clinics present in that area
  • Number of total chemists present in that area and number of chemist present near hospitals
  • A number of distributors and stockiest for that area and their network capacity.

Then appoint stockiest for a number of distributors for product supply and appoint distributors for a number of chemist or hospitals.

Generic Marketing: Chemist, Retailers, and hospitals are the main source of business in this marketing

In this marketing, one should focus on-

  • Number of Chemists/retailers/pharmacies/ hospitals/ clinics  present in location
  • Number of Distributors and their supply chain network capacity.

Then appoint stockiest for the number of distributors for product supply and appoint distributors for the number of chemist or hospitals.

Pharma Franchise Marketing: In the marketing of PCD Pharma companies, distributors are the main source of business. In this type of marketing method, one needs a high number of queries who are searching for their own marketing franchise. Sometimes companies also compete with other companies to finalize the query of pharma franchise. Further PCD Pharma distributors develop their own distribution network like ethical marketing.

OTC marketing: In OTC marketing customers are the main source of business and distributors are also important. Sometimes doctor’s suggestion also provides good support.

Conduct survey on:

  • Number of Chemists/retailers/pharmacies/ hospitals  present in location
  • Number of Distributors and their supply chain network capacity.

Then appoint stockiest for a number of distributors for product supply and appoint distributors for a number of chemist or hospitals.