Suggestions to Improve Current System of Distribution:
Providing distribution database1
Urgent delivery of goods2
Sufficient stock position with company3
Rise in dealer’s margin4
Regular credit note settlement5
Increase in credit side6
Fill up of M.R. vacancies7
Pharmaceutical Companies, has a strategy to appoint more number of dealers at the place as per the necessity, that it has found that in April 1997, the dealers in Maharashtra were only 122 and within 5 years it has doubles to 250 up to march 2001. The basic intention is create a internal competition amongst the dealers that indirectly motivates them for better retail coverage and that intern reflects into enhanced sales.
But the market fact react to this policy that 90 percent of the respondent dealers strictly oppose the companies policy to appoint more number of dealers at their places. Therefore this gives a chance for Pharmaceutical Companies, to modify their strategy of as to expect better cooperation from dealers in coming future.
Another useful outcome of the study is that those dealers having expansion plans decided to become a C&F agent with a majority of 66 percent and to be a firm achiever in sales by 22 percent and 9 percent dealers prefer to go for extra lines and few of them got frustration and willing to shift to another business or open their own pharmaceutical company. This finding is helpful for Cipla to shift from the concept of company managed own depot to decentralization and appoint C and F agent at major metropolitan cities located across.
Furthermore it has been observed that majority of dealer’s comments that after implementation of product patent Act it opens new avenues (38 %) and decreases the competition (35 %) because few companies will dominate the market.