PCD: The term “PCD” stands for “Propaganda Cum Distribution” in pharmaceutical industry. Propaganda is a latin word which means “to spread or to propagate. Term PCD is used for those distributors, who spread company goods along with distribution. There are basically two kinds of companies in pharmaceutical industry. One is “PCD” based and other one is “Franchise” based company. As the name shows itself, PCD is a method of marketing. Under this method, marketing could be generic based or brand based. On the other-hand under Franchise based method, marketing could be totally brand based. Most/Many companies consider “PCD” as their key marketing strategy for their sales and company growth. The key difference between both of these methods is “target” under their marketing strategies. Under PCD, there are high or compulsory targets of months/yearly. But under Franchise system, sales targets could be less or even there could be no target. Propaganda term leads to make a good impact of small pharma companies in the market. This leads to competition with big companies. There are many advantages for both PCD/ Franchise based companies and for Distributors/Franchisees. Please have look over below givenadvantages for your reference.
Advantages for PCD/Franchise pharma companies:
● Reduce the expanses of marketing- there is almost negligible expenses for marketing of companies and their products. They don't need to hire salespersons for marketing. It can be done directly by the distributors or franchisees.
● There is no need of big space to run the company and to store the stock. Companies can run their business by supplying and manufacture required amount of quantity.
● There are many steps while making distribution channels for generic medicines to sell. But in this marketing, any company can run their business easily by supplying the goods directly to distributors or franchisees. In this way companies can hold good margin as well.
Advantages for Franchisees or Distributors:
● There is no big requirement to start with PCD distribution. Distributors can start with a very low budget as well.
● Distributors get their monopoly right to selected areas as per their contract.
● It is a good way get good margins. Distributors/franchisees can earn as much as they can put their efforts into it. They can earn good with their efforts.
● With the help of this method company and distributors are linked to each other with independent roles. Both are connected commercially but not professionally.
● Companies also do free promotional activities, which leads to branded marketing.