Attempt all the problems.
problem1) How does distribution channel of the pharmaceutical company engaged only in Institutional sales differ from one exclusively into retail sales.
problem2) The pharmaceutical industry operates one of the world’s most complex and opaque chain. Comment.
problem3) If individual accountability is replaced by team accountability. What problems do you for see with particular reference to compensation.
problem4) What are the components of a distribution channel strategy? What is the role of stockiest in it?
Distribution of pharmaceutical products in India is the costly affair as of large territory of country both rural and urban. The problem is compounded by bad infrastructure. The companies have distributors and or stockists spread throughout country. The pharmaceutical companies gives lot of schemes to stockists as free packs which get passed over to retail chemists as free pack or cash discount. The stockists also get certain incentives for larger orders and special promotional schemes over and above the discounts & free packs. A Mumbai based pharma company XYZ pharma has the strong presence in the Northern market with distributors/stockists in Delhi as well as in Haryana spread all over. Delhi is the biggest market with stockists lifting 4-5 times the value of goods lifted by stockists in Haryana. The company has products only in decontrolled category. During one of the stockist & retailer conferences the dealers from Haryana raised a strong hue and cry that despite company’s Medical Representatives doing good job their sales were not improving. Though, the retail chemists who participated in the conference were a happy lot and enjoyed a sumptuous lunch and drinks.
problem1) In your opinion, what can be the reason for different reaction of stockists and retailers in the conference?
problem2) What are the possible options before management to solve this problem?