PLESICO PHARMA
PRESENTED BYBalaji – PGP04.107

Ujjwal Bommala – PGP04.108
Ramya Gattamaneni – PGP04.111 Harsh Khambra – PGP04.112 Ganavi Madduri – PGP04.119

DISTRIBUTION CHANNEL – MEMBERS
CFAs

•Maintaining stock and forwarding to stockists •To avoid local state taxes. Margins around 1-2% •Paid yearly on the basis of the percentage of turnover •Simultaneously handles more than one company •Owns the title directly from the company •Margin of about 10%

Stockists

Distributors

•Get the stock from stockists •Margin around 8%

Retailer

•Margins around 15 – 20 % depending on the type of drug •Pharmacists recommendation is based on profitability and relationship with representatives of various companies

•State funded , central funded and large hospitals •Companies bid for tenders by funded institutions Institutional •7% of total sales in India
Supply

Big Retail

•These form only 3% of the total sales •Manufactures don’t sell the products directly to these chains

• They concentrate on margins • Less sensitive to brand equity Consuming • 25 – 30 % of the market and mostly in towns and rural areas Doctors

• Not much penetration in India

Internet Channel

Product Differentiation

• Not possible • The products are not unique and are mostly general • The company should strive to differentiate its products from the competition

Cost leader

• This is possible only with scales of economy • The company is a start up and has no advantage in it

Loss Leader

• This is possible only when you are the market leader • Plesico is still a small company

Strategy
 Every level in the distribution channel works on margins and relationships

 Higher the margins given the higher our products will be advocated
 We should give other benefits like free packs, gifts, etc., to the chain members

 The sales person visit regular