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In the pharmaceutical field, two distinct business designs, PCD Franchise (Propaganda Cum Distribution) and Pharma Franchise, cater to the different market segments and operational levels, as this creates opportunities for individuals and companies to earn by being associated with pharma brands. Both these business models have couple of things in common, but it is crucial for the entrepreneurs from the pharma industry to understand the difference between them. As a part of this exposition, let’s emphasize these differences, merits and strategic issues associated with linking up with a Pharma Franchise or setting up a PCD pharma franchise in India.
Pharma Franchise
The Pharma Franchise model is used on a larger scale and it may cover huge geographic territories, like entire states or multiple states. The target audience of this model are individuals that have a significant experience in the industry, which usually span around 3-4 years, usually at a higher management level, and a larger investment is needed due to the broader operational scope. In this model, franchisees can use several distribution channels to extend the brand and product. This system also establishes the monthly or quarterly sales goals for franchisees to create the scale of development and competition in a larger market arena.
Also Read: become a PCD pharmaceutical distributor
PCD Franchise
The PCD Franchise model caters to the needs of those operating on a smaller scale, i.e. it serves particular regions or territories. This model is more user-friendly for people with little or no experience in the pharmaceutical industries with the fresh graduates at the forefront and requires a minimal initial investment and a fortress into the market. The PCD in turn empowers the franchisees by giving them the sole authority to market and distribute products in a particular region aimed at directly bridging the gap between the medical professionals and clients e.g. doctors, chemists and pharmacists. Unlike its Pharma Franchise model counterpart, the PCD model which generally does not include sales targets in its distributor’s end is more flexible, allowing greater latitude to business growth and operations.
Key Differences
- Scale of Operations and Investment: Pharma Franchises need higher investment at the start and larger market area, so they are suitable for people who have large funds to invest and have some experience in business field. However, branded PCD Franchises require less initial capital and can work in smaller markets, which means that they are also an option for newcomers or for those with fewer resources.
- Product Portfolio: The Pharma Franchises encompass the wider area of the market and serve the larger customer populations, while the PCD Franchises are inclined to focus on a particular product line of local market.
- Market Competition: The greater size of Pharma Franchises has competitors in the market, which need robust marketing strategies that enable them to sustain their line of operation. However, PCD Franchises, through their small scale operations, face less competition, giving a better advantage to people who want to venture into the business with geographical specificity.
- Operational Independence: Both models provide operational sovereignty but pharmaceutical franchises acquire the parent pharmaceutical company’s all-encompassing marketing and operational assistance. PCD Franchises that are running on a smaller scale and with lower investment may be given targeted support which is based on the size and scope of the business.
In the end, Pharma Franchises and PCD Franchises both present significant openings for pharmaceutical companies, which provide different levels of investment, experience, and market reach. Selecting between either of the two businesses is based on the corporate objectives, resources and the size the person intends to operate. Even the selection of a pharma franchise company must be done carefully to ensure access to quality products, marketing support, and a successful business in the pharma industry.
