By: Jim Mansfield, Customer Business Partner, The Nielsen Company
In the U.S., branded over-the-counter (OTC) and behind-the-counter (BTC) self-medication brands continue to be impacted by the economy. These categories are also compounded by retailers’ introduction of private label competing brands. In eight of nine researched branded OTC/BTC categories; CCFAS (cough, cold, flu, allergy, sinus), pain, antacids, laxatives, analgesic rub-wrap-pack, lip remedies, sleep aids, and foot-antifungal products, Nielsen reports a continued sales decline. And while growth is reported for branded vitamins, store brands outpaced this category among others.
Successful strategies
While continuing traditional pricing strategies and tactics that include expanding the marketing investment for core successful brands are proven methods, an industrious, “build-or-buy strategy” could also avail a bright spot for the business. Build strategies such as developing a new OTC/BTC product form such as gels, gummy, or quick-release are effective. Similarly, a buy strategy could include acquiring a product in a continuing growing category such as vitamins or Rx-to-OTC switch opportunities.
Additionally, manufacturers could employ a store brand consumer segmentation targeting strategy by profiling and targeting the brand-buying consumer. Targeting these brand-buyers via marketing and distribution efforts in retailers in which they shop can help to gain their purchases. Considering most manufacturers are experiencing a prisoner’s dilemma with store brands, game theory would suggest a strategy to produce the store brand for the retailer. Dollar and convenience channels present an opportunity given the continued growth of the dollar channel in this economic environment and the fact that store brands have yet to be expanded in the convenience channel.
An alternative channel distribution strategy should be investigated as well—selling pain remedies might be a nice complement at a book store or even at a home improvement store. And lastly, as global emerging markets are expanding, there are significant opportunities to consider as the main article, Non-Prescription Medications Take a Recessionary Hit, suggests.
Contact us to learn more.
