Many people use the word Pharma Franchise company and PCD Franchise without any discrimination. They consider them synonyms. However, it is not the case. Though the difference is not huge but they are different terms.
The main difference lies in their size and way of operating. This blog throws light on these two concepts in detail.
What is the meaning of the word PCD?
PCD is the abbreviation for propaganda cum distribution. It means a company assigns the rights of marketing as well as the distribution of commodities or products to another company. They sign an agreement that follows the franchise rules of trading. The ownership remains with the company, but the possession will move to distributors, C&F agents, stockiest, and medical representatives.
Parties that sign the agreement are bind by the written agreement and benefits offered by the PCD pharma company to the business associate.
Pharma franchise and PCE Franchise- the fundamental difference
Looking at the characteristics of both, the difference is not much. The only thing they differ in their scale of business.
The difference in the amount invested
A pharma franchise requires more money than a PCD franchise. It is because of the higher scale of operations. Loan or credits are available for the pharma franchise business. For smaller businesses that cannot afford big investment should go for PCD format.
Experience
In the case of Pharma Franchise, the owner can apply if he has an experience of two to four years working at a higher level such as Manager in a company. In the case of PCD Franchise, there is no such restriction. Even a fresher can also launch PCD pharma India.
Sales target
Since the scale of a pharma franchise is big, it has larger sales targets to achieve. You have to achieve some minimum targets to qualify. Else, there could be a penalty clause. In the PCD franchise business model, there is no such restriction. The business partners can set targets that are agreed to both.
Support from the pharma company
For the pharma franchise, you get full support from the pharma company. However, for a PCD business, the support is limited. It is quite obvious because of the small size of the business.
Area of operations
The pharma franchise operates in a larger area as compared to the PCD franchise business. PCD business is zoned to small areas. These are the major differences between the pharma franchise and PCD franchise.
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