Distribution channel

Distribution channel for pharmaceutical or healthcare not only by distributor, one step behind that’s it sub distributor. Sub distributor doesn’t have exact area. So sub distributor has large coverage- all Indonesia. Actually price from distributor cheaper than distributor. Pharmacy or hospital sometime use sub distributor to get more profit or to help the patient.

We knows that if channel distribution product’s more length it’s make price more expensive. But how could sub distributor get cheaper price? Where they get the drug’s ?

Sub distributor get a drug’s from distributor. But they get more discount from principal to reach their sales target. For example distributor gift 5% discount for their outlet/pharmacy include sub distributor and then a principal gift 5% discount for sub distributor so totally sub distributor get 10%. Sub distributor gift 7% to outlet or pharmacy. Here we knows that if outlet/pharmacy want cheaper price, they order by sub distributor.

Black Market?

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Everyone knows that drug’s at pramuka market or glodok cheaper than pharmacy or hospital. For people which limited budget may be this is their solution. But question is where the drug’s come from ? it’s black market or not ?

Distribution channel for pharmaceutical manufacture in Indonesia is by legal distributor. Every manufacture use one or two distributor. But there is another channel behind that, sub distributor.

Every month sales team each pharmacy predict their sales. They breakdown their target every region, every medical representative. For sales team beside they get basic salary and other facilities, there are incentive scheme. This money belong them if sales target is reached.

Pharmacy market in Indonesia is small. We knows that drug’s not list at ‘Sembako’ or Sembilan kebutuhan bahan pokok. Drug’s still no 13 or more. Beside that pharmacy market in Indonesia very competitive, there are more than 200 player’s local and multinational company.

We can imagine small market divide for 200 company. So for reach their target some sales team: sales manager, area manager or medical representative make a policy to gift extra discount for sub distributor. If distributor have territory must they full fill, sub distributor are not. So sub distributor from Jakarta can supply outlet at Madura or medan. Discount is the rule, if they get profit outlet everywhere could full filled. Pramuka or glodok are the favorit outlet for this. But, not all drug’s at pramuka and godok come’s from sub distributor. There are possibilty drug's from other channel, black market or other.

Medical Representative ?

Be a medical representative? Why not? We knows every year more than 10.000 new pharmacist graduated, and as we knows that opportunity for work at factory or hospital are rare. But not for marketing pharmacy.

In Indonesia there are more 200 pharmaceutical company, local and multinational. Some company just selling his product and not have factory in Indonesia. Career in marketing pharmacy more bright than at factory or hospital. You can decide focus on sales or product.

If you choose focus on sales, medical representative may be is the answer. Job opportunity here always open. You could start your career at local or multinational company. Both of them has plus and minus point. But be medical representative it’s not easy. Here are structure organization medical representative at local company :

Medical representative

Supervisor

Coordinator

Area manager

District manager

Sales manager

Structure organization medical representative at multinational company more simple :

Medical representative

Area manager

Sales manager

But if you choose at product you can be a product executive. But product executive only at local company. Here are the structure

Product executive

Associate product manager

Product manager

Marketing manager

So are you ready to marketing? Are you agree pharmacist be a medical representative? Leave your comment !