Types of Franchise Distributors in Pharmaceutical and Ayurvedic Sector

Pharmaceutical Franchise companies need distributors and sales professionals for marketing and promoting their products. These franchise distributors could be found through many ways as discussed in our article: How to find Franchise Distributors for pharmaceutical and ayurvedic company? 
Read: How to find ayurvedic distributors?

In this article, we will try to find out types of franchise distributors. Franchises distributors can also be of different types depend upon their way of marketing, distribution and work. Generally two types of distributors, we will find out in market depend at their distribution type.
  1. Single Party Distributors
  2. Multiple Party Distributors
A franchises distributor can sell product through prescription basis, over the counter sale(OTC), Generic distribution, hospital supply and any other way. Whether a distributor sell product at PTS/PTR basis or at further net rates; create difference in Franchise Distributors and PCD distributors. But here we are going to discuss about types of Franchise and PCD distributors depend upon whether they sell product directly to primary customer or further supply to wholesalers and distributors.

Single Party Distributors:

These are the distributors who market and promote product by own self i.e. promote product to doctor for prescription generation and distribute or directly supply to pharmacy counters for generic/OTC distribution or supply to hospitals at further net rates.

They work at limited territory i.e. a district, interior or two districts etc. Their area coverage is small and having good market relationship and sales experience. Sales professionals (Medical representative, area sales manager etc), small distributors and hospitals are generally works as single party franchise distributor’s role.

Advantage:
  • They purchase goods at company’s term and conditions and rates hence provide good profit of margin.
  • Strict Payment terms
Disadvantage:
  • Limited Sale and less chances of growth in sale even after providing new molecules
  • Company have to search for district wise distributors and require more team for cover each state

Multiple Party Distributors:

These are the distributors who don’t promote and market product owns self. They further appoint distributors and supply products to them for promotion and marketing. In another sense, they work as intermediator; purchase goods from company directly at low rates and supply to their distributors after adding their profit margin.

They work at large scale and cover a large area in state, whole state or more than one state. They either have strong distribution channel or have marketing professionals across whole area where they work. These types of distributors include mainly large wholesalers, big pharma distributors, Sales Professionals (Regional Sales Manager, Zonal Sales Manager, General Sales Manager etc) carrying and forwarding agents (CnF) etc.

Advantage:
  • Company have to find out one distributor and can cover a large scale territory.
  • Has to handle one distributor; hence less time and effort is required
  • These distributors purchase volume is large, so they helpful in increasing company turnover
Disadvantage:
  • Distributor’s term and conditions dominate agreement
  • Rates that are quoted to these distributors are low, hence less margin


Each type of distributor has its own advantage and disadvantage. First helpful in increasing profit of margin and second one is helpful in increasing turnover. Combination of both types of distributors is foundation of any pharmaceutical franchise company and ayurvedic franchise company. In some states you can find out small franchise distributors i.e. single party distributors and few states may be covered through multiple party distributors.

Hope above information is helpful to you...

For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

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