How To Start The Business Of Medicine Marketing
Indian drug market size is around 20 billion Dollars, i.e. 1 lakh 32 thousand crores, and in the next five years, it is likely to grow by 20% CAGR. It means that the Indian Medicine Market is so large that it can absorb thousands of young people as a business person. As an entrepreneur, this market made very well. For example:
- Starting your pharmaceutical company
- By opening the drug store
- Become a stockist or wholesaler
- Diagnostic lab starts
- Beginning a hospital or clinic
- Marketing of drugs
- Moreover, and so on
How to start Medicine Marketing Business
What does Medicare Marketing mean?
When you move to a doctor for treatment, then many times some medical agents (MR) are also sitting in the waiting chamber of the doctor. Mrs are the employees of a pharma company, such as Ranbaxy, Cipla, and so forth. Moreover, they communicate with the doctor about their company’s medicines. Also, make them available on chemist shops.
Once the doctor understands, he prescribes their medicines to the patient, and ultimately the patient demands them at the medical shop and in this way these drugs sold.
So, in the work of primarily medicine marketing, you have to promote your chosen medicines in the market so that they can get maximum sales. Moreover, advertising work mainly consists of doctors and convince them to prescribe those medicines.
Generally speaking, the marketing of medicine done by MR working in medical companies but you can do the work without becoming an employee of any company. Let’s know how?
There are two ways to market medicines:
First: You register your company and marketing drugs under it. In this way, if you wish, you can manufacture drugs yourself, or you can buy medicines from pharmaceutical companies and market your company name.
Example: Mankind Pharma is mainly a medical marketing company. They make very little medicines, mostly they manufacture from someone else, and they market that medicine in their name. If you buy a strip of the drug from this company, it written on – Marketed by – Mankind Pharma but by someone else’s manufactured by Manufactured.
Second: You do marketing the company’s product without making a company.
The second way is a little straightforward, and if you are not much in the pharmaceutical industry, then this is the supported way of getting started. Let us know about this in detail:
Steps in Starting Medicine Marketing Business without Register a Company
Step 1: Understand your city’s drug market:
The medicine marketing is not so easy. If you do not have experience in the pharma industry and you start this work, then the potential for success is shallow. Therefore, it is better to understand this work and market of overall medicine before you spend your time and money on this work. You can also serve as a Medical Representative in any Pharma company. (For the work of MR you should preferably be a science graduate, salary can be 15-30 thousand + incentives. If you have to study English and must speak then it is even better).
By walking around the market, meeting with doctors and chemists, you will know which types of medicines sold and which drugs you can make as part of your marketing portfolio.
So do not start this work in haste, only after understanding things, put them in hand.
Step 2: Select the Medicines to market:
In the beginning, you choose 4-5 medicines and just marketing them. If you are involved in selling many drugs together, then managing it will be difficult to start.
In this step, you also notice that you will ask these manufacturers from whom manufacturer or manufacturers.
Step 3: Manage money:
To start this work, you will have to bear many expenses:
- Bulk drug delivery from Manufacturing company
- Doctors Write Your Medicine to Entertain Them (This is also a significant expense) Giving free samples
- Take diaries, leaflets, gifts, and so forth. for sharing
- Travel cast
- Salary, if you keep an employer
- Office expense, if you open the office. Most people start this work at home.
If you have a rough estimate, then you should have Rs 3-4 lakhs for all these things.
Step 4: Create Team
If you can join a partner or employee to some experienced person with you, then it will be okay. However, it will also depend on your funds. Most people start alone and recruit some Mrs after work increases. If you want to work individually, then you ignore this step.
Step 5: Place the order of medicine
Here’s a little bit to understand. No man can ask for a similar medicine from a company to do business. For this work, you have to make a stockist or a wholesaler, and because you are doing this as an individual, therefore, the manufacturer of which you are seeking the drug will have to contact a stockist or wholesaler.
Take an example:
You are working as an individual in Lucknow, and you need medicines from XYZ medicine manufacturer based in Himachal Pradesh (HP), then you have to do these things:
- The XYZ stockists will have to know and tell their requirements.
- Need to place your order by contacting XYZ and deposit money in return
- XYZ merchandise sent to stockists
- You will collect goods from the stockists
The stockists will also have to pay GST on your material, so they will charge you some more money to pay GST + this facility.
Suppose that the item you bought from XYZ were 100 rupees but if the whole thing were to be added to MRP then it was 1000 rupees, then you have to give the stockist about 10% of the MRP, that is, 100 rupees.
It is because the stockists have to give 18% of MRP to the government as GST and they want some benefit too. Therefore, you have to pay 10% approximately.
If you are wondering if the MRP of 100 rupees is worth Rs 1000, then do not be afraid, because the margins in drug business are very high. For example, a tablet of branded energy supplements is made from 1 to 2 rupees and sold for 9-10 rupees.
Step 5: Now start marketing these drugs:
After getting the medicine, you have to work on marketing work, i.e. doctors, to prescribe your drug to people. For this, you have to apply some marketing tools-
- Prepare a folder related to your medicines
- Keep the leaflets of medicine
- Keep free samples
- Keep Reminder Card
Reminder Card: This card is written on your card patient’s request to be written. Be sure to use this card, you cannot meet with Dr. every day, but if you ensure that these cards are available on Doctor’s desk, then the chances of getting your medicine prescribed are increased.
How much can this earn from this business?
Since this depends on many things, no specific number can be given, but if you take 1 lakh from the manufacturer and you sell the entire one, then your earnings will be 60-70 thousand Might be possible.
Suppose you floated a drug which manufacture gave you the @ per strip = Rs. 10
The MRP written on that strip is Rs. 70
Trade Rate = Rs. 56 (These are usually 20% lower than MRP, at this rate you give the medicine to the chemist)
The wholesaler through which you have to send the medicine will have to give it = Rs. 7 (10% of MRP)
Have to spend on Doctor * = Rs. 24.5 (35% of MRP)
Other expense: Rs. 7 (10% of MRP)
Now let’s see where the money came and where went up:
The money went up: Manufacturer was given Rs 10, Wholesaler Rs 7, the doctor got Rs 24.5, the rest was Rs 7, i.e. total (10 + 7 + 24.5 + 7 = 48.5)
That is PROFIT happened = 56-48.5 = 7.5.
It means you took a leaf of medicine in 10 rupees and earned it 7.5 rupees.
That means if you take 1 lakh items and you sell it whole, then you can earn 75 thousand rupees on that.
Note: This is just an example, this cannot be generalized. The profit, in reality, can be even lower and more, it depends on what kind of medicines you are selling, at what volume you are selling and how much margin it is on.
Some other important points:
- Do not run behind very big doctors at the beginning, work on small doctors located somewhere far from the city.
- It is a business of credit; you do not get the money when you give the products. Therefore, keep the work of the reader firm. The amount of money that was presented in the date and
- how much money has been collected. All of these should be calculated correctly.
- Be patient for success. The doctor who initially wets you for hours can also give the business of lakhs later.
- Interpersonal skills are essential in this work, so if you lack in them, improve yourself.
- Provide excellent and timely service to your stakeholders (Doctors, Chemists, and so forth.)
- In this way you will have to pay an income tax only on the earning income, if you do this by starting a company then you will have to spend many taxes and keep many records and keep it.
Hopefully, the knowledge given here will be useful to you and will help you in starting a Medicine Business. Thanks!
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