In the pharmaceutical industry, “PCD” stands for Propaganda Cum Distribution. It is a common business model used in India, particularly for those looking to start a small-scale pharmaceutical distribution business without the hassle of manufacturing the products themselves. Let’s dive deeper into what PCD means in pharma and how this model works.
What is PCD in Pharma?
PCD model permits a firm (usually a pharma manufacturer) to franchise its distribution rights to specifically targeted persons or smaller firms. To undertake this, these distributors or franchise holders get a specific area allocated to them where they conduct sales of that company’s products. The company usually supplies the products, advertising materials and sales support whereas, the distributor’s responsibility is to expand the business within the region.
How Does the PCD Model Work?
- Franchise Agreement: The pharma company provides the franchisee with an option to enter into a pharmaceutical franchise or distribution agreement where he or she is able to market and sell the said company products within the defined geographical boundaries.
- Investment: PCD franchises are not robust in terms of investment as compared to establishing full scale manufacturers or even pharmaceutical dealership, thus has of late been an option for many businesspersons in waiting.
- Marketing and Sales: Even those that have sore such as leaflets in directions of marketing the company’s product, the parent company provides many marketing assists such as brochures, marketing materials or product samples. This lightens the load of the distributor who’s job now is to maximize the sales efforts.
- Product Range: Distributors get access to an extensive product range, from tablets and capsules to injectables and other pharma products. The company handles the manufacturing, ensuring that all products meet regulatory standards.
Benefits of the PCD Pharma Model
- Low Investment: PCD franchises, or PCD companies do not require too much of the initial capital which makes it ideal for persons who have little funds.
- No Need of Manufacturer: Since the pharma company takes care of manufacturing there is no need for the distributors to get involved in manufacture, quality control, or regulatory.
- Exclusive Rights: Distributors are sometimes granted exclusive distribution rights within a certain area, which allows certain products to be sold to other consumers.
- Marketing Support: Manufacturers generally offer a lot of marketing assistance, which encourages the distributor, to sell items without having to create things on their own.
Who Can Benefit from PCD Pharma?
- New Entrants: People who have an interest in the pharma industry but with very little funds and no factories to establish.
- Specialists in the Pharma Industry: Professional medical representatives who want to diversify and have their own distribution business.
- Pharmaceutical Franchisees/Distributors: The ones who would like to include more products to their existing market or operate in new market regions.
Conclusion
There is no excessive drain in terms of production when it comes to the PCD pharma Franchise system making it an ideal pursuit for the individuals seeking to be entrepreneurs in the pharmaceutical sector. It offers a business model which is quite appealing with manageable risks and high chances of development.
