The distributor is the integral part of the main channel through which the final product of the producer reached the customer and then in turn to the consumer. Marketing today is nothing without an apt and supportive distribution channel to keep up with the competitive market.

In the Pharmaceutical industry, it is a common practice to consolidate immediate and roundabout channels for making their items reach the client. The producers are tempted by the middlemen because they make the product more accessible to the target market.

Types of Distributors and Wholesalers

Producer Distributor

This kind of distributor has its firm in a commercial center and works out of that firm only. It offers its own particular deals to clients at this workplace. Producers who want to control the distribution and showcasing more choose this kind of distributing channel.

Merchant Distributor/Wholesaler

Also known as Shipper Wholesalers, these kinds of distributors purchase the items along with their title for reselling. The reselling may be direct or indirect. The products meant for Merchant Distributors are tough articles or merchandise or pharma products which require the further sale. This kind of wholesaler requests more pay than other distributors since a number of activities are to be performed like storing and conveying items, offering research and also giving important data to their clients.

Agents and Brokers

Agents and Brokers are basically discount specialists. They are appointed by companies to sell different items on discount without buying the title of the items. They are meant to distribute integral as well as non-focused items and products in different zones.

Full-line wholesalers:

This kind of wholesaler sells the entire pharmaceutical product line of a manufacturer. They have their diverse set of outlets for selling drugs such as healthcare facilities, pharmacies, independent drugstores, etc.

Specialty distributors:

These kinds of distributors sell only specialty pharmaceuticals and their target group is outpatient clinics and independent physician offices.

Distribution Channel Strategy

The entire purpose of having such varied distribution channels is that one can choose the correct wholesaler according to their product and requirement. The correct wholesaler does not mean the best one in the market but the one who is fitting to the producer’s needs and has a good level of channel mix along with power. The kind of techniques that merchants use for distribution are:

Intensive distribution: As the name suggests, intensive distribution means intensively making the product available in all accessible outlets. The purpose is to make the product easily available to every shopper as and when needed by them.

Exclusive distribution: In exclusive distribution, the number of channels that would convey the item is predetermined.

Selective distribution: In such kind of distribution strategy, a producer selects outlets in the territory where he wishes to convey the item and uses just them for circulation.

Internet and cell phones have made wholesalers more relevant and significant in today’s pharma world. The distributors are much more prominent today and it has also opened up options for the manufacturers to make their products easily available.