Reasons of Popularization of Pharma franchise and Future Aspects
Pharma Franchise Concept
Pharma Franchise concept is worked between two parties, “Seller and Supplier”. The supplier may include Pharma manufacturing company, marketing company, distributor, retailers etc. Supplier procures the product and seller is responsible for promotion and selling of the product. Generally, supplier’s role is to taking care of advertisement, product stock, and research whereas expense of salespersons, market, and other investment is the responsibility of the seller.
The concept of Pharma Franchise is popular in pharmaceutical sector because of following reasons
- Low Cost of Marketing: It is the main reason behind the popularity of pharma franchise. Marketing cost is important for any pharma company because they have to spend money on a salary of marketing persons, gifting, touring and other promotional efforts. In the concept of pharma franchise, this process becomes less costly and reduces manpower and expenses.
- Low Cost of Admin: Under this concept less staff or workforce is required for handling admin work. One single office or one, two efficient professionals can manage the whole country’s work.
- Be your own Boss: Pharma franchise business can be started with minimum investment. If you have a passion for work and have links with medical professionals then this concept is best for you. You are free to make the decision for your business.
- Profitable Business: Any pharma franchise business owner can earn a good income with minimum efforts. After effective marketing in the focused region, a person can increase the profit margin after one or two years.
- Share Responsibilities: Concept of pharma franchise business divide responsibilities, as pharma companies manufacture the product and provide them to franchise owner whereas franchise distributor work to sell and get prescription of doctors. So we can say that model of pharma franchise provide hope for self-employment because if a person has the only expertise of marketing but do not have known for manufacturing then pharma franchise is a best-suited option for his career growth.
- Simple Channel of Distribution: Pharma franchise business model works on the simple channel of distribution because it doesn’t require any expertise as it can be set up by a person with average knowledge. In this business model pharma products can be distributed by simply appointing area wise distributors in all over the country.
- Easy Business Concept: Easy availability of pharma franchisee, franchise companies, and marketing professionals make this concept easy as compared with other business models. Pharma franchise companies can easily find out their targeted area wise franchisees by marketing and promotion. Similarly, pharma franchisees can find out desired franchise companies through the internet or different print media.
Future Aspect of Pharma Franchise Business
If we discuss a future aspect of franchise business model then we find that pharma franchise business is growing, daily one Pharma Company is launching. But with growing business of pharma sector, it is not easy task for PCD Pharma Companies to maintain their growth with increasing competition, new policies, laws and research. Some other factors such as poor services, unethical approach, margin share, awareness about marketing, manufacturing cost, as well as the difference between branded and generic products are also affecting the growth of this sector.
Pharma franchise business has its own benefits and difficulties but it is the only option for small pharma companies to compete with big pharma enterprises and MNCs. It’s requirement of today’s time to save the future of medium and small scale pharma companies. Government should make the policy to taking care of pharma manufacturers and pharma marketing companies.