Home > News and Features > Packaged Goods
SaveE-mailPrintMost PopularRSSReprints

OTC Drugmakers Seek Cures

Nov 9, 2008

- Elaine Wong


bw/photos/stylus/45582-Vicks-ad.jpg
Makers of branded cold and flu remedies are seeking their own antidotes for flagging sales. But will cash-strapped consumers cough up more money for “innovation?”

With few other options, brands like Tylenol and Dayquil are charging ahead with new campaigns boasting their latest bells and whistles:

• Tylenol is launching Tylenol Warming Liquids, three alcohol-free formulas that treat cough, sore throat and other cold symptoms via a honey-lemon formulation that delivers a warming sensation.

“You know warmth can comfort, which can help you feel better when you have a cold . . . So not only will you feel warmer, you’ll feel better, all over,” the ads, via Deutsch, New York, read.

• Procter & Gamble is introducing Dayquil Plus Vitamin C, which in-cludes 150 percent of the daily dose of the vitamin in the mix. “Wellness trends in the respiratory category indicate that vitamins have become a regular part of the medication routine,” said Vicks assistant brand manager Jason Partin.

• Robitussin, perhaps reacting to the success of  Reckitt Benckiser’s mucus-fighting Mucinex, is promoting its DM Max mucus relief formula. “Robitussin knows coughing is one way to relieve mucus. That’s why Robitussin DM Max has a double dose of mucus-fighting medicine,” the Web copy reads.

The efforts come as sales of most major OTC brands have declined by low- to mid- single and double digits thanks to advances by private label competitors.

Sales of Children’s Tylenol, for example, fell 14.2 percent to $49 million. Robitussin’s cold, allergy and sinus liquid and powder medications, likewise, dropped 8.8 percent to $39 million. Private label also prevailed in the tablet and packet category, comprising $572 million of the overall $2.6 billion category, up 18 percent from the previous year, according to IRI.

Meanwhile, retailers have stepped up marketing efforts for their private label brands.
Walgreens rep Tiffani Bruce said the drugstore chain has focused on growing its share of the OTC market via new packaging and advertising initiatives. Walgreens is currently running off-shelf displays, in-store radio ads and online support for its cold/flu brands, which include Wal-Flu.

Unlike previous cold/flu seasons, that category of the drugstore is now experiencing significant private label growth. The uptick reflects a mix of savvier retail marketing efforts, combined with a smarter and cash-strapped consumer, according to industry analysts.

“It’s the one category where it’s very clear and easy to see and make the comparison that the active ingredients in both national and store brands are identical,” said Bruce. “They’re merchandised side by side on the shelf. You’re standing in the aisle and contemplating what to get and it’s very clear to see which options are going to cost you less.”

Walgreens and Wal-Mart aren’t the only ones more aggressively promoting private label. Drug chain CVS also is advertising its indoor/outdoor allergy relief brand as a value buy of $15.99 via circular support.

David Schardt, senior nutritionist at the Center for Science in the Public Interest, a nonprofit consumer watchdog group in Washington, said efforts like these are nothing more than attempts to gain greater market share. Research on vitamin C, in particular, shows no real effect in fighting or preventing colds. “It’s a cheap and easy way to distinguish your product from someone else’s,” he said.


OTC Drugmakers Seek Cures

Nov 9, 2008

- Elaine Wong


bw/photos/stylus/45582-Vicks-ad.jpg

Makers of branded cold and flu remedies are seeking their own antidotes for flagging sales. But will cash-strapped consumers cough up more money for “innovation?”

With few other options, brands like Tylenol and Dayquil are charging ahead with new campaigns boasting their latest bells and whistles:

• Tylenol is launching Tylenol Warming Liquids, three alcohol-free formulas that treat cough, sore throat and other cold symptoms via a honey-lemon formulation that delivers a warming sensation.

“You know warmth can comfort, which can help you feel better when you have a cold . . . So not only will you feel warmer, you’ll feel better, all over,” the ads, via Deutsch, New York, read.

• Procter & Gamble is introducing Dayquil Plus Vitamin C, which in-cludes 150 percent of the daily dose of the vitamin in the mix. “Wellness trends in the respiratory category indicate that vitamins have become a regular part of the medication routine,” said Vicks assistant brand manager Jason Partin.

• Robitussin, perhaps reacting to the success of  Reckitt Benckiser’s mucus-fighting Mucinex, is promoting its DM Max mucus relief formula. “Robitussin knows coughing is one way to relieve mucus. That’s why Robitussin DM Max has a double dose of mucus-fighting medicine,” the Web copy reads.

The efforts come as sales of most major OTC brands have declined by low- to mid- single and double digits thanks to advances by private label competitors.

Sales of Children’s Tylenol, for example, fell 14.2 percent to $49 million. Robitussin’s cold, allergy and sinus liquid and powder medications, likewise, dropped 8.8 percent to $39 million. Private label also prevailed in the tablet and packet category, comprising $572 million of the overall $2.6 billion category, up 18 percent from the previous year, according to IRI.

Meanwhile, retailers have stepped up marketing efforts for their private label brands.
Walgreens rep Tiffani Bruce said the drugstore chain has focused on growing its share of the OTC market via new packaging and advertising initiatives. Walgreens is currently running off-shelf displays, in-store radio ads and online support for its cold/flu brands, which include Wal-Flu.

Unlike previous cold/flu seasons, that category of the drugstore is now experiencing significant private label growth. The uptick reflects a mix of savvier retail marketing efforts, combined with a smarter and cash-strapped consumer, according to industry analysts.

“It’s the one category where it’s very clear and easy to see and make the comparison that the active ingredients in both national and store brands are identical,” said Bruce. “They’re merchandised side by side on the shelf. You’re standing in the aisle and contemplating what to get and it’s very clear to see which options are going to cost you less.”

Walgreens and Wal-Mart aren’t the only ones more aggressively promoting private label. Drug chain CVS also is advertising its indoor/outdoor allergy relief brand as a value buy of $15.99 via circular support.

David Schardt, senior nutritionist at the Center for Science in the Public Interest, a nonprofit consumer watchdog group in Washington, said efforts like these are nothing more than attempts to gain greater market share. Research on vitamin C, in particular, shows no real effect in fighting or preventing colds. “It’s a cheap and easy way to distinguish your product from someone else’s,” he said.

 


Post a Comment
Asterisk (*) is a required field.

*Username:  
*Rate This Article: (1=Bad, 5=Perfect)

*Comment:
 




ADVERTISEMENT