Franchise Business Opportunity in India vs. Starting Your Own Brand

The opportunities available in entrepreneurship are many, owing to India’s booming pharmaceutical sector. However, a key confusion presents itself regarding whether to invest in an already existing franchise business or begin a pharmaceutical brand from scratch. Each model has its own perks and risks and deciding on one model depends on how much you’re willing to invest, level of risk you’re willing to take, how much regulatory burden you want to compliance with and your long term objectives.

In this blog, we will analyze both business models to give you the necessary insights that will help you make a better-informed decision.

Core Concepts

Pharma Franchise Business
A firm or individual is allowed to operate a business under an established brand name under a franchise agreement with a pharmaceutical firm. In exchange for certain fees or an investment with minimum expected sales during a specific period of time, the franchisee receives advertising assistance, promotional materials, products and guaranteed certain areas for the sale of the products.

Some Popular Franchise Models in Pharma:

• PCD Pharma Franchise
• Multi-Party Franchise Model
• Monopoly-Based Pharma Franchise
• Ethical Pharma Marketing Franchise

Starting Your Own Pharma Brand
An independent pharmaceutical brand requires setting up manufacturing facilities or outsourcing production through third party manufacturing, developing the brand, abiding by government regulations and establishing a supply chain. Complete control also means incurring higher operational and financial boundaries.

Components of Comparison

1. Risk of Investment and Finance

Pharma Franchise: The initial investment is relatively low because the parent company has already developed and marketed the products. The risk is lowered since the brand is established.

Owned Pharma Brand: Significant investment is required in product development, marketing, gaining regulatory recognition and setting up manufacturing facilities. Financial risks are greater because finding marketing prospects is difficult.

2. Recognition and Trust Of Brand

Pharma Franchise: Trust and Credibility are immediate as marketing and service delivery are already established for the brand.

Owned Pharma Brand: It takes decades for the brand to grow in terms of marketing, receiving clinical credibility and building customer trust.

3. Control And Flexibility On Business

Pharma Franchise: Very little control since franchisees must abide by the policies, pricing and promotional guidelines of the franchisor.

Owned Pharma Brand: Total control to the business including control over choice of products, pricing, marketing policy and control over business expansion.

4. Strategy Of Marketing And Customer Recruitment

Pharma Franchise: A franchisor assists in marketing by giving out promotional aids substantially lowering the effort needed.

Owned Pharma Brand: A strong marketing strategy, hiring medical representatives and a wide network to gain credibility and reach the customers is a must.

5. Compliance And Approvals Of Regulation

Pharma Franchise: A franchisor takes all responsibilities for medicine approvals, all certifications (WHO-GMP, ISO, DCGI) and quality control assuring no regulatory takes.

Own Pharma Brand: The business owner must secure all relevant licenses, ensure adherence to compliance and conduct clinical studies if necessary.

6. Possibility of Growth and Development

Pharma Franchise: More convenient growth due to acquiring more franchise outlets with the assistance of the franchiser.

Own Pharma Brand: Growth is solely dependent on the proprietor’s ability to increase manufacturing, sales and distribution activities.

Which Option Should You Pick?

Choosing between a pharma Franchise Business Opportunity in India and starting your own pharmaceutical brand comes down to several considerations:

Select a Pharma Franchise if:

• You want to establish yourself in the pharma sector with less risk and capital outlay.
• You would rather have a template business with marketing and compliance assistance.
• You want to start business as soon as possible without getting involved in branding and manufacturing.

Select Own Pharma Brand if:

• You have adequate funds and experience to set up and market your own pharmaceutical business.
• You would like to operate the business with autonomy in product choice, prices and other operational aspects.
• You are set to handle your regulatory approvals and long-term branding strategies.

Conclusion

If you are interested in Franchise Business Opportunity in India, Granmed Pharma is a WHO & GMP Certified pharma Franchise company in India and has been developing and manufacturing Pharmaceutical Products in India and selling and distributing these in all over India.