When you think about launching a business in the pharma sector, it becomes difficult to decide about the niche.
The sector is a multifaceted one where each facet is equally exciting. You can expect good returns if you invest in the business and move forward systematically.
Are you a little bit confused about the three popular business streams; PCD, ethical pharma, and generic medicines?
If yes, then this blog gives the required information concisely and precisely.
Propaganda-cum-distribution or PCD
Whether you are an experienced entrepreneur or a new entrant, PCD business is just right for you. You can get the rights of marketing and distribution from a pharma company.
You are allowed to market the products within the specified territory. You buy the franchise rights to sell and promote the products. You need to pursue doctors to endorse the products.
Stockiest and retail are two distribution channels. The efficient your channel is, the better is your performance.
The secret of the success lies into two things; it needs less money to start this business model because you may choose a few selected products without worrying about prohibitive costs.
Thus, high profitability can be managed.
In this model, pharma companies directly sell generic medicines to the retailers via their distribution channel. Sales representatives facilitate the process.
The quality, performance, and use of generic products are similar to their equivalent branded drugs. There is no difference in the route of administration as well.
The cost of generic medicine is lower than the branded products. Hence, they have better penetration in economically weaker sectors.
These products are different in appearance and packaging. Sometimes, the manufacturing process or formulation may also alter a little.
Three is a wide scope for generic medicines in India.
Ethical pharma sector
In this sector, product marketing is done by the network of medical representatives. They promote the products and convince retailers, physicians, and other medical professionals.
To achieve a success in this business model; the network has to be very strong. The medical representatives are the brand ambassadors. They must have excellent communication skills and convincing power.
It is the oldest business model that has been found quite useful. The business model fundamentally believes in ethical means where the products are marketed purely on their merits. No unethical practices are allowed or encouraged.
These three business models make the pharma sector. Which one you choose depends on your proficiency and preference