The document discusses sales strategies for over-the-counter (OTC) drugs in India, emphasizing the need for a sales force of approximately 2400-3200 personnel to cover retail pharmacies. It outlines two distribution models: the replenishment model, which requires daily monitoring of sales and inventory, and the forecast-based model that uses previous sales data for periodic supply. The forecast-based model is identified as more efficient for companies due to easier logistics and inventory management.

1. OTC DRUGS - SALES MODEL
SHUBHANKAR MAZUMDAR

2. SALES PERSONNEL DEALING WITH OTC PRODUCTS HAVE TO COVER ALL THE PHARMACY RETAIL OUTLETS IN THEIR ALLOTTED TERRITORY.
THE TOTAL SALES FORCE REQUIRED TO COVER ENTIRE INDIA WOULD BE IN THE TUNE OF 2400 – 3200 APPROXIMATELY.
SINCE IT IS NOT COST EFFICIENT TO MAINTAIN SUCH A LARGE SALES FORCE ON ROLES AND THE PRODUCTS ARE FROM OTC, COMPANIES
MAY HIRE INDEPENDENT SALES REPRESENTATIVES AT THE TERRITORY LEVEL.
MODELORGANOGRAM

3. MARGIN STRUCTURE IN DISTRIBUTION
MARGINS ARE REPRESENTED AS % ON THE MRP (MAXIMUM RETAIL PRICE)
A SAMPLE COST STRUCTURE IS SHOWN FOR A PRODUCT WITH MRP OF INR 100
MODELDISCOUNTSTRUCTURE

4. PRODUCT SALES ARE MONITORED DAILY FROM THE SUPPLY NODES AND BASED ON THE DEMAND AND AVAILABILITY, PRODUCTS ARE SUPPLIED IN THE
REPLENISHMENT MODEL. REPLENISHMENT MODEL HAS ITS OWN DISADVANTAGES OF KEEPING THE TRACK OF THE SALES AND INVENTORY DAILY AND FREQUENT
SUPPLIES.
THE MAIN ADVANTAGE OF REPLENISHMENT MODEL IS THAT THE RETAILER AND THE STOCKISTS WILL BE HAPPY, SINCE HIS INVENTORY SPACE IS SAVED AND HE
CAN ACCOMMODATE PRODUCTS FROM MANY DIFFERENT COMPANIES.
REPLENISHMENTMODELOFOTC
Forplanningthedistribution
ofOTCdrugsinIndia,
Pharmaceuticalscompanies
followeitherof twomodels:
1. Replenishmentmodel
(User:DRL),
2. Forecastbasedmodel
(User:Sun-Ranbaxy).

5. IN FORECAST BASED MODEL, SALES ARE FORECASTED BASED ON THE PREVIOUS SALES AND THE PLAN FOR THE PRESENT YEAR AND THEN PRODUCTS ARE SUPPLIED
PERIODICALLY.
FORECASTING BASED MODEL WILL WORK OUT BEST FOR THE COMPANY AS SENDING THE STOCK ONCE A MONTH OR FORTNIGHT BASED ON THE STOCKIST
INVENTORY WILL BE MUCH EASIER FOR THE COMPANY.
FORECASTBASEDMODELOFOTC

6. THANK YOU