Veterinary: Sub-Distributors

Overview

Sub-distributors are a distribution channel for AdvaCare Pharma’s veterinary 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 veterinary 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 to vet clinics, vet supply stores 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:

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

Veterinary: Veterinary Supply & Feed Stores > 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 veterinary medicines 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 animal 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 veterinary products to vet clinics, vet supply stores and farmers, the products must be well accepted by farmers/livestock owners/pet owners so that they will request the same brand to the veterinarian or vet supply store, or even other AdvaCare products.

See:

Veterinary: Veterinary Clinics > B2B: Secondary Target Audience

See:

Veterinary: Veterinary Supply & Feed Stores > B2B: Secondary Target Audience

See:

Veterinary: Farmers & Livestock Owners > B2B: Secondary Target Audience

B2C

Farmers, livestock owners and pet owners are the end users of our veterinary products. The position of the farmer is unique because unlike hospitals and pharmacies for pharmaceuticals, medical devices and supplements in which the end consumer is further down the supply chain and therefore we are less able to influence them, farmers are closer in the supply chain and we can get our messaging across and provide them useful promotional materials that allows us to influence their purchasing decisions more.

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 > Vet Clinic/Vet Supply Store/[Farmer] > End Consumer (farmer/livestock owner)

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 vet clinic, vet supply store and farmer channels:

See:

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

Veterinary: Veterinary Supply & Feed Stores > Promotional Materials: Which materials apply to this channel and why?

Veterinary: Farmers & Livestock Owners > Promotional Materials: Which materials apply to this channel and why?