Pharma & Medical Device Market Analysis & Distributor Search

Tick Tock Consulting conduct a Market Analysis and Distributor Search in Indonesia, Vietnam and Thailand for Pharmacure, a Swedish company developing Pharmaceutical Products and Medical Device.

The rapid improvement in living standards and increasing disposable income in Southeast Asia is changing consumers purchasing power and habits. There is a change in diseases from communicable to non communicable “lifestyle” related diseases. The demand for premium prescription free pharmaceutical products and medical devices is rapidly increasing.

Pharmacure is a Swedish company that develop, market and distribute pharmaceuticals and medical devices globally. Pharmacure focuses their expansion in Asia and other emerging markets.

Pharmacure sell their products through distributors and appoints distributors in each country that they operates in. Pharmacure produce their products in Sweden, Denmark and Spain.

The growth has gradually increased in the Asian markets. Customers are mainly pharmacies or similar stores that are selling prescription free medicines and health/nutritional supplements and beauty products.

Pharmacure saw the potential in Indonesia, Vietnam and Thailand, however didn’t have sufficient market knowledge. If the market potential looked promising then they would appoint distributors. A distributor have to be able to manage sales, marketing, import of pharmaceuticals, logistics and distribution.

Pharmacure appointed Tick Tock Consulting as the consulting firm to provide support in the Market Entry process with Market Analysis and Distributor Search (if the market potential was there).

The objective of the project:

  1. Market Analysis: To provide Pharmacure with market insights including but not limited to pharmaceutical sub-sector current market size and growth, key industry players/competitors, entry barriers (legal, & regulatory, FDI requirements etc), government bodies, interviews with potential end customers.
  2. Distributor search:
    1. Broad search: To quickly identify potential distributors in the country.
    2. Distributor Qualification: To qualify the identified distributors and get a thorough understanding if they meet Pharmacure’s detailed requirements and also have the capability as well as willingness to be distributor. 
    3. Meeting Program: To meet with the qualified distributors and discuss further details and see if there is a ”fit”. 

The key deliverables of the project:

  1. Market Analysis report: A report based on Pharmacure’s Pharmaceutical  and Medical Device sub-sector including but not limited to current market size and growth, key industry players/competitors, entry barriers (legal, & regulatory, FDI requirements etc), government bodies, interviews with potential end customers. HS code duties understanding and forecasted developments based on trade liberalisation and trade agreements. 
  2. Distributor search:
    1. Broad search: Based on Pharmacure’s distributor requirements we screened relevant industry associations, industrial zones, industry exhibitions, available databases, potential phone registries, personal contacts and extended networks etc. The information was compiled in a list with basic company information e.g distributor category, company size, year in operation, general telephone and contact details. This step included limited direct contact with the potential distributors. We continuously had project meetings with Pharmacure where we remove/add distributors and decide which are potential to the qualifying step of Distributors.
    2. Distributor Qualification: We qualified around 20-30 distributors per country with detailed information on how they meet Pharmacure’s requirements, contact information to the responsible persons within the companies as well as additional relevant information. When it was suitable and desired then we arrange with telephone conferences with distributors to clarify certain areas prior to a meeting program.
    3. Meeting Program: We had a two to three day meeting program per country meeting between 3-5 distributors in each country. This resulted in distributor agreement discussions and final agreement with one to two distributors per country and most products were introduced in the markets.