During the study, it has been observed that Pharmaceutical Companies Provides prompt and fast service to their dealers in order processing and credit note settlement. Also has strong network for faster delivery of goods and keeps sufficient stock with a highly updated database integrated system for administrative work.
But at certain point of time Cipla Ltd. is in need to improve their current system to cope up with changing approach of dealers in the market place. Therefore the survey suggest few concrete improvements to update the distribution network,
It is revealed from the table that dealer’s demands for a distribution database to avoid routine to update stock position and increase profitability. They also rated this on top priority and urgent delivery of goods as next. This table also strengthens the demands of rise in dealer’s margin and regular credit note settlement.
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Suggestions to Improve Current System of Distribution:
| Factors | Impact Rating |
| Providing distribution database | 1 |
| Urgent delivery of goods | 2 |
| Sufficient stock position with company | 3 |
| Rise in dealer’s margin | 4 |
| Regular credit note settlement | 5 |
| Increase in credit side | 6 |
| Fill up of M.R. vacancies | 7 |
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.
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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.