Distribution channels of pharmaceuticals in Cambodia : a case study of Pharma Product Manufacturing | |
| Author | Yam Chhann |
| Call Number | AIT RSPR no. SM-00-19 |
| Subject(s) | Drugs--Marketing--Cambodia Pharmaceutical industry--Cambodia |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration., School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-00-19 |
| Abstract | This research study deals with the design of a pharmaceutical distribution network in Cambodia and the corresponding promotional supports to the channels for a pharmaceutical producer, Pharma Product manufacturing. The key objectives of this research were to find out and understand the existing pharmaceutical distribution channels, channel members' buying/selling behavior, PPM strategies and policies towards pharmaceutical distribution channels, and finally to recommend a distribution network with promotional supports. Both primary and secondary data have been taken into consideration. The information has been collected from all the main actors of the market for example PPM itself, and pharmaceutical channel members (wholesalers and retailers) through interviews, in place observation, questionnaires, companies and other publication. Phnom Penh had been chosen to conduct the survey of retailers (pharmacies). The sample size of 60 pharmacies was used for the surveys. The pharmaceutical retailing market in Cambodia, although small, is extremely competitive. The total market is worth around $US 1,000,000. 80 percent of pharmaceuticals in the market are imported from outside Cambodia by trading companies, and smugglers. This study found that wholesalers supply 80 percent of retailers fully or partially. Wholesaler channel is thus the most important distribution channel of retailer. Wholesalers not only provide small quantities of many brands but also agree more favorable term of credit than other kinds of suppliers to retailers. There are no government regulations or restrictions on creating pharmaceutical distribution channels. The transaction between supplier and customer is not fixed by any exclusive contract. Wholesalers and retailers have many suppliers and at the same time can change freely from one to another. This implies that suppliers can approach all customers. Wholesalers buy products from many suppliers. They have all brands to sell with very small margin to retailers and to some patient. Good relationship between company supplier and wholesaler is a very important factor to encourage the wholesaler to try to sell a particular brand of the supplier. Wholesalers can be motivated through profit margin, sales contest, and certificate of performance. Retailers (pharmacies) indicated that the price of drugs is the most important criterion for choosing a supplier. Next, they look for a supplier who can provide a high profit margin and a good quality of drugs. In contrast, suppliers choose retailers using three criteria: business size, size of outlet, and payment ability. Retailers can be motivated firstly using profit margin, and secondly using credit term of 45 days. In conclusion, the pharmaceutical retailing market in Cambodia is small. However, the market has become very competitive, and increasingly customers are highly sophisticated. Despite its competitiveness, the market is still profitable. PPM thus has to make more efforts and more thinking on the business if the company really wants to be a challenger in the market. |
| Year | 2000 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-00-19 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Simonet, Daniel; |
| Examination Committee(s) | Broustail, Farncois Joel;Truong Quang; |
| Scholarship Donor(s) | Government of France; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2000 |