rx to otc- final

8/2/2019 RX to OTC- Final

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Nutrition Supplement

- A Prescription Drug to an OTC Product

- Sohil Gandhi


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The Indian Pharma Sector

The Indian Pharmaceutical Industry is buoyed by a strong

demand, improved spending on healthcare and rising middle

class incomes.

Cipla topped the list by highest market share of 5.38%

Among the largest growing drugs for the year was Abbott's

insulin Human Mixtard, which rose 27% to become the second

largest-selling brand, displacing painkiller Voveran ( Novartis)

with a 6% growth.

Overall, the Indian Pharmaceutical industry has achieved a

growth of 16.5% in 2010 on a y-o-y basis.

*Source: IMS Health


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Over The Counter (OTC)Market

The Indian OTC market have been growing at around 10% for

the last 2 years, leaving the US and China much behind, where

OTC drug sale is estimated at 4% to 5% respectively.

The share of sale of OTC traditional drugs in India has gone up

to 30% as against of cold and cough medicines, 12% of

vitamins and nutritional and about 7% of analgesics.

The OTC drugs in India are quite common because the number

of pharmacists and chemists have exceeded 8.5 lakh.

*source: Sify Finance


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Nutritional Supplements to Diabetic and cardiac patients

Now a days due to change in lifestyle patterns more and more

people are suffering from various heart problem

For such kind of Patients nutritional supplements are requires

most the combination are of VitaminB12, Folic Acid,

Methylcobalamin is being provided

Such kind of drugs help in maintain proper health and it

become a part of every prescription that prescribe for such

patients and its growing day by day.

*source: Sify Finance


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Big switch RXto OTC


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Why Switch?


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The Advantage

The decision to move ahead to switching a product from Rx to

OTC status is a major strategic move

Several key factors need to be assessed to determine its

success potential, including whether:The product is a suitable as selfmedication to Patient

The product is going to be first in a Rx category to switch (creating a new

OTC category)

The product has a recognizable pointofdifference versus existing

treatments

The product has potential for modification into different forms to increase

differentiation

There is an unmet consumer need

The Rx brand has adequate market equity to achieve a successful switch


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A Successful Switch Requires


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The Marketing Mix

Promotion

Place

Price

Product


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The Product

A switch product needs to have a clearly defined

pointofdifference in the OTC market where it will compete

and is only likely to be successful if it can fill an unmet need of

existing consumers.

OTC switch include packaging design: inclusion of recognizable

elements that highlight key product positioning, benefits and

link these to the Rx heritage.

Product differentiation in OTC can also be strengthened by

providing different formats for consumer use e.g. different

pack sizes, liquid versus tablets etc.


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The Price

It becomes a determining factor for OTC products, as India is a

highly price sensitive market

Based on the packaging, the prices should be fiercely

competitive with competing brands. Also, a little push would

be required to be given by the company to the retailers (maybe

through contests or holidays), and the associated costs be

incorporated in the same

As a part of its CSR activity, the company can drop its prices in

a previously identified segment, and reap the benefits of the

same.


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The Place

The product during its launch phase itself should be made

available all across the length & breadth of the country or

should reflect the promotion strategies used for the same.

As an OTC product, the products should have considerable

visibility in highly residential areas, as this will help the product

gain popularity at a rapid pace.

The metro areas (Tier I & Tier II cities) should be given priority

as should the areas where the instances of the nutritional

requirements identified through research are high.


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The Promotion

Companies who plan a switch with an Rx product well ahead

can ensure that there is published data that supports use for

the product for the OTC indications and uses sought.

OTC switch products effectively become new consumer brands

and should focus on translating emotional benefits rather than

the functional benefits traditionally communicated to

physicians.

Longterm planning can ensure that the Rx product starts to

communicate these through packaging at a much earlier phase

than when switch is imminent. This enables a smooth

transition from Rx to OTC with packaging changes reflecting an

evolution of communications rather than an abrupt change.


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Push & Pull - Strategies


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Push Strategies

Retailer Wise:

Priority should be given in the areas where the instances of the

nutritional requirements identified through research are high.

The brand visibility & business activations such as productstatuettes & display posters should be on the higher

(dominating) side, that can reinforce the customers.

The retailers can be given Perks to promote the product by

offering them attractive holiday or schemes, or enrolling them

in competitions based on a number of pre-decided sale of

product - either in numbers or financial terms.


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Pull Strategies

Consumer Wise:

A product can be pushed through to the consumer if via

longterm planning one can ensure that the Rx product starts to

communicate through packaging that a switch is imminent. Thisenables a smooth transition from Rx to OTC with packaging

changes reflecting an evolution of communications rather than

an abrupt change.

The company to increase its consumer base to different sections

of the society, can come up with varied dosage (the strength) and

the medium (Tablets, Syrup, etc.) and more health awareness to

Cardiac and Hypertension patient along with cost saving


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The Demand Model

To influence the consumers, a holistic demand model isrequired to be constructed, of which the doctors and the

pharmacists, become the prime players and Word of Mouth

plays an important role in it.

The key modeling factors to consider may include the

frequency of symptoms and treatments per year, units of

product used per episode and how patients will use the

treatment provided (full course, some or none of what is

recommended).

Understanding and implementing this will help the retailers

push the specific product and simultaneously on the other

hand will create a pull for the consumers to purchase the

same.


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The Demand Model

The demand model will need to reflect assumptions on

consumer need for the new OTC product, their reactions to

price and the impact on consumers of visiting a pharmacy for

treatment versus a physician.

The demand model will also have to take into consideration

the cannibalization of sales and the threat the product faces

from its competitors & traditional remedies.

Proper indication and contra-indication of the product are

informed properly along with the dosage.


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Print - Outdoor - Radio Television (PORT)


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Awareness: Print

One of the basic requirements for any brand is to create

awareness amongst its targeted consumers, the following can

be implemented:

Newspaper adverts (more than 1/4th of a page, to create impact). The best

positioning for the same would be to act as the cover page to the

newspaper itself.

To have various educational/informational pamphlets distributed in high

potential areas & also be distributed as a keepsake.

Articles on dos & do nots in popular magazines on the disease and theremedies along with strong recommendations of the product.

Posters on Medical Store and its near by areas.


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Awareness: Outdoor

To create an impact, this becomes one of the cheapest modes

as far as the eye-sight goes:

Painting a complete train rake, for a period of 6 months, and depending on

previous research either Central/Western/Suburb & giving information on

causes & remedies with a suggestion to visit chemists to ask for remedies

A Health Check up Camp in dominant areas/estate to be carried out across

the country to act as a business activation point for the consumers about

the brand and educate them on the same as well.

Outdoor - embossed hoardings at prominent traffic junctions


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Awareness: Radio

To create an impact, this becomes one of the cheapest modes

as far as hearing goes:

To club up with a popular radio show, have live interactions with popular

personalities, who suffer from similar abnormalities, ask them for natural

remedies & as a voice over also suggest the brand as an option.

To create awareness drive with the radio channels at popular hotspots, like

malls on weekends to further promote the brand to piggyback on the

radios brand equity.


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Awareness: Television

One of the most important & expensive mediums, it also helps

to convert maximum consumers:

To directly contrast & compare the advantages of the brand, with other

remedies in a very discrete manner via ongoing serials & features.

To create advertisements based on recommendations by the medical

fraternities as this helps in boosting the morale & the confidence of the

consumer towards the product.

To promote the product through interactive online purchase channels like

CJ Alive, by showcasing the before and after effects of the usage of the

product.


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Retailers Schemes

The retailers in order to push the sales of the product can be

encouraged with a lot of different kind of offers. All of these if

possible are to be given on a basis of a tier system that is

explained in the latter slide.

Some of the suggested offers include:

Based on Tier system provide retailers/chemists with holiday packages

For retailers who do not have a computer based logistics system at the

shop, offer the same (hardware & software plus training, again based on a

tier system

To have an quarterly draw for the retailers, promising a heavy discount or a

complimentary health check ups for the owners as well as his family.


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Tier System

I

On X Amount of Sales

Financially Driven

II

On X plus 20%of X Sales

Non-descript retailers stop here

III On X plus 50% of (X+20%) Sales Major gifts accommodation here


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Additional Strategies: Social Media and CSR Activity

The Social Media can also be used to promote the brand among its

potential consumers. Since this is a relatively new brand the

company can willingly experiment with different online options to

create a positive impact.

The company can also create an emotional connect to its

consumers by promoting - creating brand awareness & product

visibility through CSR activities. This will help the company in

accomplishing two goals simultaneously. It will help circulate the

brand and also increase its credibility in the market.

The company can enlist the services of medical associations of the

country and make them approve the product. This will instill

confidence in the mind of the consumers that it is a good quality &

dependable drug for self-medication.


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Conclusion

An OTC switch is one effective approach to extending the

brand lifecycle rather than accepting sales declines as part of

the inevitable fallout from generic competition. It helps, the

company instill confidence about the brand in the consumer

and also helps in increasing its credibility in the market. With

Indias rapidly growing OTC market, this all strategy does play a

major role in the companys long term sustainablity and

product growth.


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Thank you

rx to otc- final

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