Local pharmaceutical manufacturers and wholesalers/distributors’ level of coverage is  dependent  on  their  available  resources,  which  also  defines  the  size  of  the company. Mainly, the key players in the industry employ a number of strategies to reach out to the final consumer. These include; setting up outlets in all regional capitals, use of intermediaries, and direct supplies. A marketing manager of one of the companies included in the study noted that:

“The ultimate distribution strategy of the company is to ensure the presence of our products in all relevant channels and points of sale in all communities in Ghana thereby making our products visibly accessible and available to all Ghanaians at affordable prices.”

As a result of this strategy, all wholesalers/distributors work hard to improve on their channel strategies and where applicable set up distribution agencies with other pharmaceutical companies in the various regions.

1. Setting up Branches in Regional Capitals

Very few companies have outlets in the various regional capitals within the country. Notably, Ernest Chemist Ltd, Kama industries, Vicdoris Pharmaceuticals Ltd etc. have branches in other regional capitals other than Accra and Kumasi. The rationale is that, the pharmacy business is not only centred in Accra and Kumasi, there are hospitals, clinics, pharmacies and licensed chemical sellers in all regions (both urban and rural areas) of the country. Therefore, setting up branches in the other regions will improve easy access to medicines to help improve the healthcare delivery system in Ghana.

For instance, a Pharmacist noted that, “a pharmacy operating in Ho (Volta Region) does not need to travel to Accra to buy from Ernest Chemist, they can go to our branch in Ho to save them cost and time”.

Location plays a key role in the distribution process, some firms prefer setting up branches in other regions. However, most of the players rely on other distributors or wholesale outlets in the distribution process.

2  Use of Intermediaries (Wholesale Pharmacies)

Most companies also rely on the use of intermediaries to aid in the distribution of their products. These companies identify potential wholesalers in regions where they have no offices. Such companies are offered special discounts as an incentive to aid in the distribution process. Although this process seems good especially in cases where constraints in resources do not permit the company to reach out to such areas, it however is not without challenges. For instance, “these companies are not in any way  restricted  to  carry  only  our  products  and  they  are  largely  independent ” [Marketing Manager]. In some cases, these intermediaries (agents) are expected to buy above a certain threshold in terms of quantities (volumes) determined by the manufacturer or distributor. Other distributors do not have any threshold or minimum ordering quantities that a wholesaler can buy at a time. In such cases, discounts apply taking into account the value of the total order and rather not just focusing on individual items.

3  Direct Supplies

Some wholesalers also own retail outlets where they sell directly to the final user. Manufacturers, wholesale and retail pharmacies also employ direct supplies or deliveries to various outlets. Manufacturers and wholesalers supply health institutions directly, e.g., hospitals, central and regional medical stores, clinics, retail pharmacies and licensed chemical sellers. Manufacturers and wholesale pharmacies that participate in procurement processes established in healthcare institutions are required to supply to these facilities once an order is issued. Companies travel far and near to deliver drugs ordered by the regional medical stores, hospitals and clinics.

These manufacturers and wholesale pharmacies have fleet of vehicles purposely for distribution. Most of these vehicles are air-conditioned to ensure that an optimum temperature is provided. As a result, these companies supply directly to healthcare facilities, other wholesale pharmacies and retail outlets. These entail the use of sales force that is responsible for taking orders and delivering to the customers (i.e. hospitals, clinics, wholesale and retail pharmacies).