What is PCD Pharma Franchise
PCD – Full form of PCD is Propaganda cum Distribution. In the Pharma industry of India, the term PCD is profoundly used for marketing, Sale and distribution rights given by a franchisor to the franchisee. To be precise, PCD (Propaganda cum Distribution) is nothing but another terminology for a pharma franchise business.
Although we all understand that franchise is a marketing concept in the business world however here we will discuss franchise business of pharma industry.
If we search the meaning of term franchise online, google comes up with different definitions. Here we will understand the meaning of franchise in simple words along with its characteristics, scope, advantages, profitability and worth.
Characteristics of PCD Pharma Franchise Business
The word “franchise” is of Anglo-French derivation—from franc, which means “free”. A franchise is an authorization given by one entity to another to carry out some specific commercial activity in a particular location. This entity giving authorization is a pharma company with a range of products and entity which is accepting this authorisation can be a person, a group or another company.
Like any other franchise, PCD Pharma franchise also accompanies the following traits:
1. Authorization with monopoly rights
2. An established brand or company as franchisor
3. Security with support by franchisor
4. A low-cost investment business
5. Delegation of procedures, intellectual property, business model, brand, and rights to sell its branded products.
6. It’s an alternative business growth strategy for a franchisor
7. In India, franchise agreements are covered under two standard commercial laws:
The Contract Act 1872
The Specific Relief Act, 1963.
Scope of PCD Pharma Franchise Business
PCD pharma is the most successful business model of the Pharma industry in India and its growing rapidly as well. Medicines are required everywhere, be it be a remote town or a metro city. As our cities are getting modern, facilities like transportation, internet, industrialisation, 24-hour work culture, sedative lifestyle, consumption of alcohol, liquor, packed food have made us vulnerable to diseases. In today’s scenario where pure clean drinking water is an asset, access to treatment and medication is very important. Hence we can easily assess that role of pharma industry gets crucial.
Manufacturing of drug is an important aspect of pharma business. A quality drug with good efficacy is crucial for treatment and success of a pharma company. An entrepreneur can start a business by taking pharma franchise, grow its sale with time, launch its own brands and subsequently acquire a manufacturing company. A small start-up can translate to big business in a few years with planning and dedication.
Hence PCD Pharma Franchise holds the enormous opportunity of growth, not only in metro cities but in small towns and villages as well. A franchisee should acquire an understanding of various categories of therapeutic segments so that he can present his franchise company in front of doctors, stockist and retailers.
Advantages of PCD Pharma Franchise Business
As a business model, a PCD Pharma franchise can certainly be an alluring business start-up opportunity. Because of its number of advantages, it is a worth considerable option to start a new business if you are from a pharma background or a salesperson.
Franchisors Established Business
A PCD Pharma offers the advantage of working with the tag of an already established company. Business ideas, the product, the operating know how’s and much more are tried and tested by the parent company. What franchisor has to do is to implement them in a new location for his own success.
An established Brand
Working under the banner of a Pharma franchise company allows a franchisee to take advantage of the previously established brand to the fullest and promote growth. More energy can be engaged in boosting sale as the franchise gets the support of visual air, product training, leave-behinds, product cards, samples and other promotional material such as gift items from Franchisor Company. Nowadays companies do get their brands trademark registered, which protects the entry of similar brands in your market.
Exploiting Business Relations
Business Relations established by the franchisor should be utilised for promoting the sale. This is another benefit for an entrepreneur as you are not alone but relations of franchisor stand by you. Relationships with suppliers, distributor, stockist, retailer, printers, transport companies will be there for you and easy to manage.
A system to protect
Franchises come with the advantage of a support and security system. Training, schemes and offers, Sales techniques and support provided in the management of accounts, sales, Taxation, advertising and more is another added advantage. These sorts of things generally come without cost or depend upon mutual agreement between the two.
High success rate
It’s a general perception that most start-up business fails in few years, however, when it comes to PCD Pharma Franchise, the success rate is around 80% if the business is planned with due care considering all available market and resource and executed diligently. The security and assistance offered by the franchisor result in a high success rate.
Money, Money, Money?
It’s an obvious choice and driving force of entrepreneurs. The backing of the available brand and name make it a little easy. Franchisee got a lot of things to present such as the experience of the company, network of the franchisor, management, product range, Trademark protection, gift items, samples, COA of products which is also known as test report to highlight the quality standard. A franchisee might ripe benefit from higher sale initially however after a few years they will often find that starting their own business would have been more profitable. Hence every franchisee must also prepare himself for the next level