IMPORTANT
POINTS OF GOOD MARKETING PRACTICES
1.SUPPLIES:
Supplies should be effected on weekly basis
at places where company has its local depots
or C & F Agents or Consignee agents. For
outstation parties company should arrange to
dispatch the goods through transporters with
21 days credit from the date of L/R (from the
date of dispatch) and document through bank.
Company should ensure that no supplies are affected
without any written orders.
2.ORDERS:
At local Places, company should collect weekly
orders, as per stockiest requirements and from
outstation stockiest monthly orders should be
collected, divided by the number of dispatches.
The orders should be signed jointly by stockiest
and concerned field force of the company.
3.STOCK LEVEL:
At places where company has its local depots
or C&E Agents or consignee agents, stockiest
shall be asked to maintain 15 days stock of
the monthly sale. In outstation, stockiest shall
have the stock –level of one month with
15 days stock in transit.
4.PAYMENTS:
All the payments made by the stockiest by cheques
should be deposited after the actual delivery
only. The company should stop the practice of
collecting advance / blank cheques and shall
not demand any deposits or security deposits
from any stockiest. If any company has accepted
deposit the same should be refunded.
5.CREDIT FACILITIES:
stockiest should be offered credit as per the
prevailing terms and conditions. The credit
should not be reduced.
6.DEFAULT:
In case the cheques given by the stockiest
are dishonored with appropriate reason for more
than three occasions, company may initiate disciplinary
action through district/state association. Association
will assists the company in mutual interest.
7.STATEMENT OF
ACCOUNTS:
Statements of accounts should be sent to all
stockiest periodically every three moths for
verification and to facilitate to maintain proper
records as per audit requirements.
8.SCHEMES:
a) All the schemes should be operated against
official circulars only, to be issued by company
and ensure that it reaches all the stockiest
in advance. All stockiest will insist official
circulars while implementing bonus offer schemes.
b) Scheme stocks should be delivered in invoice
only. System of reimbursement of schemes offered
to retailers will not be introduced by company.
c) Schemes should be adjusted on Shelf Stocks
of stockiest as on the day of commencement within
30 days of the commencement of scheme OR company
should reimburse schemes on last two invoice
of the scheme items/product and also on the
goods in transit/pipeline . The company shall
also adjust the difference of the schemes on
the shelf stocks if the scheme offer is increased.
d) Schemes should be in multiple of minimum
lot offered to retailers, and the same should
be uniform. It should not be in large slabs.
The company should not refuse to supply small
lots.
9. CREDITS/CASH
DISCOUNTS:
All the existing facilities such as cash discounts,
credits etc. offered by the companies to the
trade should continue as per the prevailing
practice and the same should not be reduced.
For outstation parties company offer 21 days
site through bankers.
10. TRADE MARGINS:
Irrespective of old or new products the company
should minimum margins as agreed upon by industry
and trade and the same should be as follows.
On De-Controlled category 10% stockists,20%
10 retailers.
On Controlled category 8% stockists,16 % to
retailers
Margins should be inclusive of excise duty
and as per agreement with the trade body. Margins
should not be reduced by the company unless
the products is shifted by the Authorities from
decontrolled to controlled.
11. PRICE-LIST:
Company will provide detailed price –lists
to stockiest periodically in form-v, as per
DPCO and any price change will be intimated
by official circulars in advance, supplies should
be effected only thereafter.
12. ENSURE PROPER
DETAILS IN INVOICE:
The company should ensure proper details in
invoice, such as correct batch numbers : Schedule/Non-Schedule
: Percentage and amount of Sales –Tax,
Central Sales-Tax, Discounts, Excise Duty, Octroi
or any other levies: Name of the manufacturer
: M.R.P. Trade Rate etc. This details should
be provided for supplies effected through company’s
depots. C&F Agents of super stockiest.
13. CLAIMS &
CRDIT NOTES:
Stockists should be requested to prepare claims
on their letter head, giving all the relevant
details such as names of expired products :batch
number : quantity : expiry date : M.R.P.: reason
for returns etc. The company should not insist
on stockist to fill up their own format. The
field force of the company should visit the
stockist at least once in a month to certify
it and in case if they fail to do so then all
the responsibilities will lie on the company
and stockist may dispatch the goods without
certification.
Company should in turn issue credit notes quoting
stockists claim number and date. Secondly company
should ensure the detailed working of credit
note. Original copy of credit note/s should
be sent to stockists with the details of invoice
number and date wherein the same is adjusted.
Company should arrange to collect the expired
products from the stockists (at their own cost)
on monthly basis and issue one credit note/replacement
note for entire claim (not in parts) covering
all items and reimburse all the levis charges
at the time of supplies. The company should
not deduct any scheme discount from the date
expired and broken stock.
The company will settle all the claims on the
basis of cost-to-cost basis or M.R.P. to M.R.P.
so as to avoid confusion, within 45 days of
the submission of the claim.
14. DUMPING:
Company should not indulge in dumping. All
supplies will be against stockist orders only
as per their requirements. Company should not
exceed the supplies than ordered quantities
without confirmation from the stockists.
15. NEW PRODUCTS:
Company should collect the orders of new products
and give copy of price-list before effecting
the supplies of the same. Company shall not
effect automatic supplies of new- products to
stockists.
The Company should offer the credit facility
of 45 days on new products or supply them on
consignment basis for at least six months. The
supplies of new products should be as per the
requirements of the stockist.
16. DISTRIBUTION
OF SHORTAGE PRODUCTS:
In case of shortage of any product, company
shall ensure its distribution in just and fair
manner without any discrimination, so no stockists
are at disadvantage.
17. PRICE REDUCTION
OR INCREASE:
In case of price reduction of any products,
the company shall arrange to withdraw all such
products from the trade and issue its credit
note for price difference to stockist within
30 days of collecting such stocks. Secondly
company should agree to accept the stocks of
old rates from the trade at any given time.
In case if the price of any drugs is increased
the company will not effect any supplies with
price stickers on it.
18. SHORT EXPIRY
PRODUCTS:
In case company supplies short expiry products
then it shall be effected under consignment
basis only. The payments of all such product
shall be made after the products are liquidated.
19. BRANCH TRANSFERS
AND/OR SEMI –WHOLESELLING:
The company’s main intention of appointment
of stockist is to cater to the retailers of
particular zone only. The company shall take
all the steps necessary to stop branch-transfers
or semi-whole selling and avoid any undercutting
or unhealthy practices. Company should supply
at the place of appointment only. In no case
company should effect their supplies to any
branches or extension counters of the stockists.
20. NEW/ADDITIONAL
APPOINTMENT OF STOCKISTS:
The company will take into confidence the district
association at the time of new appointments
and not indulge into irrational appointments
so as to avoid undercutting and unhealthy competition.
21. POLICY FOR
HOSPITAL/INSTITUTIONAL SUPPLIES:
Company shall effect their hospital/institutional
supplies through their stockists only with products
marked “For Hospital Supplies Only”.
The company will also ensures that the hospital
stockists do not offer their stocks in trade
and wherever such case is brought to the notice
of the company, the company should terminate
such indulgent stockists. The reason being that
the rates for hospitals are subsidized and different
from the trade rates.
22. NO DIRECT
SUPPLIES TO RETAILERS:
The company shall ensure that they shall not
supply stocks directly to retailers, doctors,
nursing homes or consumers bypassing the trade
channel.
23. VISITING
HOURS:
The company’s sales staff should be visiting
the stockist during non-peak hours i.e. when
activities in their premises are minimum. This
will facilitate both the stockist and sales
staff and will mutually benefit.
24. INDUSTRY
TRADE AGREMENTS:
The company will ensure to follow “ GOOD
MARKETTING PRACTICES” and implement all
the norms agreed upon between the Industry and
Trade from tome to time.
25. THIRD PARTY
MANUFACTURED PRODUCTS:
In case the company markets the products manufactured
by third party or small manufacturers then company
should ensure all the details required such
as excise, central sales-tax suffered and other
details.
26. PACKAGING:
The company should ensure proper packaging
of all the medicines and the same should have
following features for the benefit of Pharmacists
and also for the consumer.
1. The package should be strong and contain
colour codes for identifying it. Different strength
should have different colours.
2. The print on the label or strip (M.R.P.,
Name, Generic Name, Batch Numbers, Expiry Date,
Manufacturer’s Name and Address, C.S.T.
Suffered, Storage conditions etc. should be
bold and readable for Doctors, Pharmacist and
Patient. With the advent of new packaging machineries
we hope that it will be possible.
3. The packaging should be in small sizes,
preferably in proportion to dosage so as to
reduce expiry. The proper packaging will reduce
breakages and leakages in transit.
27. AVOID NATIONAL
LOSS BY REDUSING EXPIRY:
Companies should plan and execute the same
in such a manner that products do not get expired
in pipeline. More often it is found that due
to delay in marketing or due to lack of co-ordination
between sales and distribution departments the
products worth crores of rupees gets expired.
We would like to assist the Industry in minimizing
this national loss.
28. SPURIOUS
DRUGS:
Company should ensure distribution through
their authorized stockiest only. Company should
not encourage semi-whole selling or sales through
unauthorized stockiest. This will help the company
to keep track on movements of their products
and to prevent any spurious/imitation drugs
entering into the market.
29. MAINTAIN
HARMONIOUS RELATIONSHIP WITH TRADE BODIES:
It is essential that companies maintain harmonious
relationship with the trade bodies and with
the district bodies. This will augur well for
both the parties and help them to evolve better
relationship. The companies should arrange educational
seminars for pharmacists, patients on the latest
developments in pharmaceutical trade.
30. PILFERAGE:
Company should take all the measures necessary
to prevent pilferage. Though the company may
get their insurance claims but the same stock
comes into circulation and thereby harms the
interest of trade and Industry adversely. |
