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OTC perspective

OTC / OTC

OTC / Ethical

Ethical / OTC

Ethical / Ethical

3

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Market structure

OTC / OTC Vicks, Tylenol

OTC / EthicalCalpol

Ethical / OTCIbuprofen, H2RA’s

Ethical / EthicalCephalosporin, Anti-diabetics

4

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5

Choice criteria

Category

Product

New brand Brand switch

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Criteria for success

1. RegulationsNon-schedule H, G & X

Should have OTC status

2. Self medication potentialConsumers should ask for the product

3. Current market sizeShould not be a small market

Should be large / good growth opportunity6

http://d/D%20Drive/Advertisments/Indian%20Pharma/AM%20PM%20-%20Bacteria.mpghttp://d/D%20Drive/Advertisments/Indian%20Pharma/Vicks%20Khich%20Khich.mpg

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Criteria for success

4. Future growth potential1 customer who purchases – 10 home remedy

1 on home remedy – 10 not doing anything

5. CompetitionHolistic – not restricted to ORG / IMS

Competition could be 100 fold than evidentBigger home remedy

Even bigger patient inertia

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Criteria for success

6. Price controlCategory cannot be in Price control / may go in future

Cannot support A & P

7. Distribution profileMyth – OTC is unprofitable / requires FMCG setup

What brand personality is desiredChoice to go through non-drug / drug outlets

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Criteria for success

8. Organisational capabilityResources

Skills

– Marketing

– Market research

– Sales & Distribution

9. Organisational portfolio fitMNCs ( Med. Info / Clinical data )

Allopathic – named under ayurvedic

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Criteria for success

10. Technical & commercialEffervescent / centre filled / pocket packs

Commercial viability / COGS

11. Culture & environmentToothpaste – vegetarian

Food products – Green / brown circleTonics – Haemoglobin – blood derived

11

http://d/D%20Drive/Advertisments/International%20Pharma/Lemsip%20-%20All%20in%20One.mpghttp://d/D%20Drive/Advertisments/Novartis%20International/Theraflu%20-%20Bus.mpeg

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Criteria for category switch

Criteria for brand switch

Case Study - Revital

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Agenda

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Choice criteria

Category

Product

New brand Brand switch

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Criteria – Brand switch / OTC

1. Brand life cycleBLC for new / launched 20 yrs back is different

2. Brand heritageConsumer perception

Perception of youthful / elderly

3. Market share1 % Market share – OTC – asking for trouble

Low market share – lower profits

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http://d/D%20Drive/Advertisments/Indian%20Pharma/Glycodin%20Echo%20Truck.mpg

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Criteria – Brand switch

4. Mind shareHow doctors / consumers will feel

Need to take calculated risks

5. Rx base / repeat purchaseNo set criteria base on Rx base

25 – 75 % Rx : take the brand OTC ?Solely a management decision

Switch can be for a high Rx product if potential

15

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Criteria – Brand switch

6. ProfitabilitySignificantly higher spendings – TV / Media

To sustain – keep generating bottomline

7. Appetite for riskHuge appetite for risk

Not for faint hearted / no lotteryFight – market after market

Concrete contingency plan in place

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OTC is different from Rx

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Criteria for category switch

Criteria for brand switch

Case Study - Revital

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Agenda

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Indian examples

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#1 & only VMS supplement

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Revital

Adult health supplementRx launch in 1990

Vitamins, minerals and ginseng

One of the top brands from the RanbaxySuccessful transition from Rx to OTC market

Millions of people had already benefited from Rx

In 2002, almost 70% sales was OTx

20

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Revital

Rides high on a positive health conceptGives the user mental and physical vitality

Fits into the users hectic lifestyleEnergy, strength & mental sharpness

Enabling them to enjoy life to the fullest

Hence the brand punch line “Jiyo Jee Bhar Ke ”

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Revital

The careful planning and implementation of themarketing strategy

Three fold objectiveCreating an appeal for the product

Moving away from its serious image

Rejuvenating sales for the product

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Challenge

To craft an appeal, which would successfullylaunch Revital in the OTC segment

Moving from a relatively serious image

Protect already huge base of loyal user

Energizing the sales curve with new regular users

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Right timing

Ranbaxy entered the OTC segment withRevital in October 2002 after carefully assessingglobal trends and market potential

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Research

Extensive market researchUnderstand consumers and doctors

Across urban and rural India

ReasonTo augment insights

To execute a four-pronged switch strategy

Foraying into consumer needs through a well-thought television creative

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The four-pronged strategy

1. Shift from a molecule to a consumer solution

2. Building emotional Assurance

3. Creating brand authority

4. Enhancing Accessibility

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Strategy 1

Shift from a molecule to a consumer solution

Need gap analysis of the product presentedRanbaxy with an unmet need of its target audience

Lifestyle is characterized by stress and fatigue

Revital was positioned as a solution that sustainedenergy levels and promoting overall well-being

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Strategy 2

Building emotional Assurance

Advertising to help consumers make informedchoice

Assurance based on educating and creatingrelevance instead of making a blind choice basedon prescriptions

GREY devised 3 phases of advertising

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Communication stages

Pre & post usage andbenefit scenario

Puppet portrayal of aneveryday man

Testimonials - A man & awoman talk

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First Phase

3 television commercials

Each sought to demonstratePre & post usage and benefit scenario

Intake of Revital helped reduced all signs of

fatigue and weakness

http://d/D%20Drive/Advertisments/Indian%20Pharma/Revital%20-%20Wake%20Up.flv

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Second Phase

Husmukhbhai campaign

Puppet portrayal of an everyday man Able to make the most out of life

Even after a hectic day of work

His friends and colleagues are unable to

Husmukhbhai is a Revital user unlike others

http://d/D%20Drive/Advertisments/Indian%20Pharma/Revital%20-%20Hansmukhbhai%202004.mpg

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Strategy 3

Creating brand authorityThis involved building channels of trust for Revital

Both professional as well as personal

Consumer contact programLaunched in 75 cities across India

Direct consumer promotion was done in ‘ anaajmandis ’, wholesale food markets, chemist outlets

Consumers were informed more about Revital andits benefits as a daily health supplement

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Strategy 4

Enhancing Accessibility

Accessible and available to the consumers

Distribution network was expanded

Both pharma and FMCG distributors

More chemists and select retail stores

Make it a part of the monthly grocery purchase

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Communication stages

Pre & post usage andbenefit scenario

Puppet portrayal of aneveryday man

Testimonials - A man & awoman talk

Celebrity Endorsement – Cricketer / Superstar

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Endorsement

Cricketer Yuvraj Singh

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Photo on pack

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http://d/D%20Drive/Advertisments/Indian%20Pharma/Revital%20-%20Yuvraj%20Singh.flv

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Current Endorsement

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Current Endorsement

Super StarSalman Khan

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http://d/D%20Drive/Advertisments/Indian%20Pharma/Revital%20-%20Salman%20Combined%20Ad.flv

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Website

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Revital Woman

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Revital Senior

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Revital Sales ( Cr )

43

0

40

80

120

160

200

240

280

1990 1993 1996 2000 2003 2006 2009 2012 2013 2015

Launch

Rx toOTC

CelebrityEndorsements

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