The Indian pharma industry is growing at an amazing rate, with several people entering it through the easy PCD model. PCD refers to Propaganda Cum Distribution – it is the easiest sector in the pharma industry. Entrepreneurs with little to no experience or connections in healthcare can also enter the market through the PCD model.
However, many people will make the mistake of working with large corporations. While that works out for some, these companies will not be able to provide the constant support and expert advice required for budding businesspersons.
So, if you find yourself in a situation where your PCD pharma franchise isn’t performing well, you may need to evaluate the way you’re running things. Worry not, Vivaceutical is here to help understand what you may be doing wrong, and how to correct it.
Related – The Challenges While Starting a PCD Pharma Franchise Business
Reasons Why Your PCD Franchise May Not Be Performing Well and How to Correct Them
As mentioned above, anyone can enter the PCD model as an entrepreneur, regardless of their educational and professional background. This is also the reason why some franchise owners experience loss and frustration, causing them to close down the business in a short span of time.
Listed below are the most common mistakes that lead to failure in the PCD model.
Taking the Distribution Route
When you invest in a PCD franchise, you get marketing and distribution rights. Distributors can be wholesalers or individuals that have the permission of the parent PCD company to commercialise their products in the local market. Meaning that you would be responsible for selling, distributing, and marketing their products.
A lot of people take this route due to its profit potential. However, if you enter this field with no prior experience, it will be challenging to generate business in the market. You would not have access to the marketing support and connections of the parent company.
As a franchise owner, you must focus on promoting yourself and the products. If you end up acting as a medical representative, the chances of suffering losses are much higher.
Lack of Management and Proper Planning
Many times, medical representatives will shift into the PCD model after working as the former for a year or two. They may not realise how different the work actually is. Even if you enter the franchise business as a complete newbie, having a proper management plan is crucial.
There are a few things you must plan in order to overcome failure and benefit from the PCD pharma franchise.
- Planning the initial investment and keeping money aside for future investments. You may also decide to give “gifts” to doctors in your area to build good relations. In such situations, you must form a budget and stick to it. Do not get pressurised and end up spending more than you had planned to.
- How much discounts to offer those who buy in bulk – it is better to have a set amount that is open to everyone. For instance, anyone who purchases over a certain amount of products is viable for a 10% discount. You can even have such schemes printed and put up on your retail store, in order to attract more customers.
- Set a target for yourself, no one is going to do this for you, as you are the owner of the franchise. Pharma franchise owners do not have to fulfil any sales target so they may get lazy or demotivated when they aren’t making enough money.
- The way you market yourself is of the utmost importance, as explained in the next point.
Giving More Importance to the Products Than How to Market Them
If you pick a good pharma company to source your products from, you can rest assured that they would be up to the desired quality. When you partner with Vivaceutical, you are partnering with a company that is WHO, GMP, and ISO certified.
So, you would only get the best quality products from us. As a result, you do not have to be worried about the manufacturing process or the packaging of the product. What you must do is focus on how to market them to the right audience. If you ever require expert advice or help with marketing, we have got you covered on that too!
Real business can only be generated through your impeccable marketing skills. The way you present yourself and the brand is enough to help customers trust you.
Another tip that you might find helpful is presenting yourself as the owner of a small company. Customers often tend to ask for discounts from franchise owners as they feel they are operating under a large corporation.
Thus, marketing and presenting yourself in a certain way is important to gain business from your target audience.
Related – Vivaceutical – The Best PCD Company in India
Not Forming Relations Strategically
This is another common mistake that doesn’t present the consequences right away, but you will feel the brunt of it in a few months. Say, you visit a doctor you know already or someone who is well-known in your area of business. You may form good relations with them and invest right away. While that is not necessarily a bad thing, controlling how much you invest is crucial.
It is always best to invest smaller amounts in the beginning. For instance, if you invest 5,000 INR with the doctor, he should at least be getting you business worth 10,000 INR. So, start small and if it goes well, you can think of investing a higher amount in the future.
Conclusion
You could be doing a lot of things regularly that harm your business. It is quite hard to pinpoint exactly what may be causing your professional or financial troubles.
You can feel free to contact us for expert advice on running a successful pharma franchise.
