Common Challenges In Cardiac Diabetic Pharma Franchise Business

Cardiac and diabetic categories represent one of the most rapidly growing sections of the Indian pharmaceutical market thanks to lifestyle related diseases and an increasing aging population. The cardiac diabetic pharma franchise business therefore presents a very promising opportunity for both entrepreneurs and professionals in the pharma sector. 

Like any venture operating in the healthcare segment, it also brings with it its fair share of challenges - operational, regulatory and market based which every prospective franchise partner needs to be aware of.

Stiff market competition

This is by far one of the most commonly encountered problems faced by a cardiac diabetic franchise owner. There are many existing and emerging players offering a wide array of similar products making it a challenge to establish a competitive edge and differentiate oneself in the market place. Building up robust marketing support from your company will be key to overcoming this challenge.

Maintaining product quality consistently

The reason why doctors depend so heavily on cardiac and diabetic products is because they treat conditions that require long term care and treatment. Therefore, even a minor issue in the quality of the medicines can damage your reputation beyond repair and is a loss that can be irreversible in the future. You are generally dependent on your parent company's manufacturing capabilities and therefore quality standards, GMP standards and batch testing results will be your biggest concern.

Regulatory and compliance concerns

With drug licensing procedures, GST compliance procedures, Price Control Orders under DPCO and strict compliance of the drug marketing code, navigating the regulatory terrain of a pharmaceutical business is inherently complex. Franchise partners may sometimes find it difficult to keep up with the changes in regulatory compliance whilst managing the daily operations.

Developing and growing doctor and stockiest network

The prescribing pattern for cardiac and diabetic medicine is heavily influenced by the relationship of the field sales representatives with cardiologists, diabetologists and general physicians. Most of the new franchise partners have difficulty in penetrating the market and gaining doctor's trust as there's no established prescription network for them.

Supply Chain and Inventory Management

Cardiac and diabetic medicines generally have very specific storage conditions and short shelf life. Balancing the inventory in order to avoid wastage and shortage of medicines will remain a constant operational challenge for the franchise partners.

Marketing support and promotional inputs

A strong promotional strategy including visual aids, MR bags, sample kits and digital inputs will be required for driving prescriptions for the brand. Lack of consistent support in the form of marketing materials or samples from the parent organization could pose a significant obstacle to business growth.

Pricing pressures and margin management

The stringent government regulation and ceiling prices on certain cardiac and diabetic drug combinations, and an increase in the number of competitors vying for market share, make it a challenge for franchise partners to achieve optimum profitability levels while keeping the products affordable for the consumers.

Conclusion

The cardiac diabetic pharma franchise business is extremely rewarding with long term business potential because the demand for such products will always be high and growing. 

Choosing to collaborate with a pharma company like Scott Morrison that offers a top quality and diverse range of products with adequate monopoly rights, timely promotional support and also provides guidance on regulatory aspects will be a wise business decision and help the franchise owner build a sustainable and profitable business.