Difference Between PCD Franchise And Pharma Franchise
Difference Between PCD Franchise And Pharma Franchise – Where the pharmaceutical and healthcare industry in India has become the most profitable business, simultaneously the PCD Franchise and Pharma Franchise model is getting hype because of the high profit margin attracting many people to get into this. If you are the one looking for a better option to enter this business In this blog you will get to know that there are two terms involved which many people mistakenly as the both are same. But we will disclose that there is a slight Difference Between PCD Franchise and Pharma Franchise that encloses bigger effects. In simple words, A Pharma Franchise is the main or Parent pharmaceutical company that offers its franchise services and business operations to other people in terms of Propaganda Cum Distribution (PCD) Format.
Firstly, In a pharma franchise, the business owner has sole selling and marketing rights. In this business model, the business owner offers convenience and freedom in terms of business operations, product selection, order quantity, investments, and marketing! On the other hand, Pharma Franchise, also known as Propaganda Cum Distribution (PCD), is a business model within the pharmaceutical industry in which a franchisee distributes pharmaceutical products under the brand name of its parent company. It refers to the marketing and distribution of products by the pharma company that owns the PCD franchise. The PCD model requires the entrepreneur to buy the franchise rights from the pharma company to sell their products.
Difference Between PCD Franchise and Pharma Franchise.
#1. On the Basis of Size and Business Operations
A Pharma Franchise is a bigger idea and organization based on a large amount of investment as well as the area of business needed. There are a lot of legal documents and official contracts required to commence a franchise company. These documents are evidence that the owner is selling a high-quality range of drugs after meeting all the necessary criteria regarding the products.
PCD Franchise doesn’t require as much infrastructure and requires a smaller investment. This is a cost-effective option and is more profitable for small businesses with limited resources. PCD Franchise gets the already well-established platform and well-recognized products in the market as well as monopoly rights to sell products freely in a particular area. also, they have given some sales target by Pharma franchise
#2. Capital Requirement
To establish a big firm automatically the need and requirement would also be high. pharma franchise requires more amount of capital to commence and complete all the formalities as well as the operations like area, infrastructure, machines, and other materials, to make the company well-equipped, in addition, the PCD franchises need a small amount of investment and a few documents like drug license, GST ect and hence the rest it got everything served on the plate.
#3. Area and Infrastructure
PCD franchises can be adjusted in small areas or as per their wish as there is no such restriction for any requirement of high fi infrastructure or big area, however, that is a major requirement for a pharma franchise.
#4. Competition in the Market
Undoubtedly, A pharma franchise is a bigger concept in all terms, Apparently, it faces a high level of competition to survive in the market. To maintain market stability the pharma franchise has to put uncountable efforts into beating the competitors and standstill. In the case of the PCD franchise, they got monopoly rights from the parent company which reduced the competition in the area.
#5. Sales Target
A Pharma Franchise gives the sales to the company, which the franchisee has to pay for in full. Most Pharma Franchises also provide good incentives to reach their goals. Unlike a PCD franchise, the Pharma Franchisees have the freedom to work the way they want to work, with no goal in mind.
#6. Risk Factor Involvement
The higher the investment is so the higher the risk. If any organization is not ready to deal with the variations of the market or cannot handle the never-ending demand of the market trend. It is not going to survive much. Being a big corporation pharma franchise faces high-risk factors in comparison to a PCD franchise in which the risk is decreased by its arents company to a greater extent.
#7. Prior Experience
One must have at least two to three years of management experience in the pharmaceutical franchise. It can be as regional sales managers, sales managers, or pharmaceutical distributors. Whereas In the PCD franchise, there is no need for any special experience. Only a few formlities like Drug license is needed and Anyone can apply for PCD franchises.
Conclusion
We hope this knowledge will clear your doubts and help you choose the best option out of these Two. The Difference Between the PCD Franchise and the Pharma Franchise is elaborated precisely which will help in the planning and execution of the business can be done fairly. If you are interested for PCD franchise Zexus Pharma can be a perfect choice for more details contact us.
