Pharmaceuticals: Sub-Distributors

Overview

Sub-distributors are a distribution channel for the AdvaCare Pharma pharmaceutical product range that is one stage after the distributor in the supply chain. Sub-distributors operate similarly to distributors, but just on a smaller scale. Some differences exist, but the main differences to understand are:

See:

Distribution Channels: An Overview > Sub-Distributors

Product Range: Which products apply to this channel and why?

Our entire pharmaceutical range is positioned for the sub-distributor channel, but the sub-distributor is limited to the AdvaCare products that the distributor supplies to them. The same products will be sold by the sub-distributor to hospitals, pharmacies and other points of sale/use. The dosage forms positioned for the sub-distributors will be identical as for the distributor, however it is at the discretion of the distributor for which products he sells to different sub-distributors because:

See:

Pharmaceuticals: Hospitals/Clinics > Product Range: Which products apply to this channel and why?

Pharmaceuticals: Pharmacies/Retail > Product Range: Which products apply to this channel and why?

Target Audience

B2B: Primary Target Audience

As smaller sub-distributors cannot purchase large volumes of pharmaceuticals to meet our MOQ per product, they will purchase smaller quantities from our distributors.

See:

Distribution Channels: An Overview > Sub-Distributors > Why don’t sub-distributors buy directly from AdvaCare?

Also, it should be noted that many sub-distributors are smaller companies, and therefore have more limited financial capability and rely on credit payment terms from distributors who will give them products on credit (i.e. 30, 60, 90 days) that is paid back according to the terms of their agreement with the distributor.

The distributors are our customers, the direct purchasers of our pharmaceutical products, and therefore our primary target audience.

See:

Distribution Channels: An Overview > Distributors

B2B: Secondary Target Audience

Sub-Distributors

First, see the difference between small and large sub-distributors to identify which type of sub-distributor the secondary target audience is:

Distribution Channels: An Overview > Sub-distributors > Why don’t sub-distributors buy directly from AdvaCare?

Although the sub-distributor operates in much the same way as the distributor, they are technically still the secondary target audience - a later stage in the supply chain. The way in which they present AdvaCare and our products, provide promotional materials and keep relationships with their customers are mostly the same as the distributor. However, in some cases the sub-distributors might need more specialized promotional materials to meet specific marketing objectives. For example, if some distributors cover a region that has a specific health condition or marketing plan specific for that region, we might provide customized promotional materials, and perhaps even specific product packaging.

As the sub-distributor will sell our pharmaceutical products to hospitals/clinics and pharmacies, the products must be well accepted by consumers and patients so that they will request the same brand to the prescribing doctor or pharmacist for refills, or even other AdvaCare products.

Hospitals/Clinics

See Pharmaceuticals: Hospitals/Clinics > B2B: Secondary Target Audience

Pharmacies

See Pharmaceuticals: Pharmacies & Retail Stores > B2B: Secondary Target Audience

Doctors

See Pharmaceuticals: Pharmacies & Retail Stores > B2B: Secondary Target Audience

B2C

Consumers and patients of hospitals/clinics, pharmacies and other retail stores are the end users of our pharmaceutical products. In hospitals, the patient rarely has a choice of the brand they use, as this would usually be decided by the doctor. However, in the pharmacy and retail channels, these people are either prescribed medication by a doctor or go to a pharmacy to buy a prescription medication or OTC recommended by a pharmacist or buy it from the shelf if they do not want or require a pharmacist. Given that the pharmacy is a point of sale of our products, our branding awareness and messaging are very important.

Supply Chain

Sub-Distributors are the third to last stage in the supply chain before the product is distributed to a hospital or pharmacy and ultimately used by a patient or consumer:

API Manufacturer > Finished Manufacturer > AdvaCare > Distributor/Importer > Sub-Distributor > Hospital/Clinic/Pharmacy > End Consumer (patient/consumer)

See:

Distribution Channels: Introduction > Understanding Supply Chains

Promotional Materials: Which materials apply to this channel and why?

As sub-distributors sell AdvaCare products to the same channels as distributors, the promotional materials are the same, the only difference being that the sub-distributor does not have other distributors further down the supply chain. The kind of promotional materials we produce for our distributors to provide to their sub-distributors will ultimately be for the hospital/clinic and pharmacy channels:

See:

Pharmaceuticals: Hospitals/Clinics > Promotional Materials: Which materials apply to this channel and why?

Pharmaceuticals: Pharmacies/Retail > Promotional Materials: Which materials apply to this channel and why?