Difference Between PCD Pharma Franchise and Pharmaceutical Industry
by Rozer Samith Technology
Is there a difference between the PCD Pharma Franchise?
The two are similar in many ways, but the question is can one sell both as a company? Can one sell all pharmaceuticals under one brand? That's a question that we will answer here.
A lot of people want a PCD Pharma Franchise in India and they are also looking for an easy entry into the market, but they should realize that for an enterprise to be successful, it must have a clear competitive advantage over its existing competitors. And here's the difference - a good Pharma company needs to have an edge over its competitors not only in terms of its product quality but also in its marketing approach and its research and development capabilities. However, there is another aspect of the Pharma business that needs to be understood as well. For example, a strong brand with a long history can be an unfair advantage over new entrants who might be developing their products based on new technology. So, yes, there is a difference between the PCD Pharma Franchise.
But, what if a pharmaceutical company wants to enter the market without upsetting the existing equilibrium in the market?
In such cases, there is no obvious advantage for the new products. This may sound like a rather stupid concept, but, it is precise because of this lack of advantage that new products always find their way through the market rather than being wiped out by the existing ones. In other words, even when there is a difference between PCD Pharma Franchise and various other brands, it is the impact that the introduction of the brand has on the market that determines whether it is worth it or not. And the only way to judge this is to analyze the impact that PCD has on the market share of the parent pharmaceutical company.
Looking at the scenario of India, there are a number of examples of such cases. So, comparing PCD Pharma Franchise to other generic pharmaceutical company business ventures, it is clear that there is no major difference between the two. However, there is one clear implication from the foregoing that can be termed as a positive feature of the PCD Pharma Franchise. That is, the franchisor is able to exploit the generic opportunities offered by the government by virtue of its long-term association with the Indian government. The government basically approves all the critical decisions regarding the introduction of new products and is the final authority that decides on the pricing policy, availability of resources, marketing strategy, etc.
On the other hand, the case of Pharma Franchise cannot be said to be devoid of any negative consequences. The fact is that the overall profits of the franchise are relatively lower than the costs involved in setting up the same business in India. Also, the resources required by the franchise organization need to be sourced from third party pharma manufacturing countries only. On the whole, it can be concluded that though both share common objectives of the development of the best Pharma products in India but the differences between the two make it difficult for the franchise to achieve its targets.
The main difference between PCD Pharma Franchise and other generic pharmaceutical company ventures lies in the focus of the said company. Whereas most of the generic companies aim at developing a range of new products, Pharmaceuticals India, on the other hand, focuses on developing low cost-efficient products in core areas. The aim of other generic companies is to sell their products across the globe. In addition, even the most profitable products produced by Pharma companies cannot guarantee lucrative returns for the owners. On the other hand, most Pharma companies have to face intense competition from local players.
In other words, the major difference between PCD Pharma Franchise and other similar companies lies in the marketing strategy employed by them. Whereas most companies produce low-cost generic solutions, Pharmaceuticals India takes a different approach to target a high volume of annual sales. Though it has lower costs than its competitors, it aims at building a brand image and increasing sales targets by launching successful advertising campaigns. The company's core competence lies in its successful promotion and advertising campaign rather than the low-cost products. This explains the difference in the profit margins as well as the sales target achieved by the two.
Another major difference between PCD Pharma Franchise and other similar pharmaceutical companies is in terms of business structure. A typical pharmaceutical company, apart from manufacturing and selling drugs, also conducts several other commercial activities such as consulting, research, seminars, education, and health care programs, etc. Pharmaceuticals India is engaged in conducting several such activities including distribution of medical devices, health care products, cosmetics, personal care items, medical supplies, pharmaceutical solutions, hormones, and drugs, etc. Though a majority of pharmaceutical companies in India are solely involved in the manufacturing of medicines, there have been few select companies, which have ventured into other commercial activities. Though they are not able to dominate in any particular segment, they have carved their own niche in the overall health care industry.
Created on Sep 15th 2021 23:49. Viewed 118 times.