Information: the perfect OTC gift

Drug Store News, Dec 9, 1996 by Mike Troy

In the spirit of the season, I attempted to write an OTC version of a familiar holiday poem. I got as far as "It was the night before Rx-to-OTC switch launch, and all through the drug store not a product was turning, not even a Fleet enema. The department was reset and faced out with care in hopes manufacturer drop shipments would soon be there."

I abandoned the effort because OTC products and retailing jargon don't rhyme very well, and "The Night Before Christmas" is way too long.

This aborted poetry exercise proved useful though, as it prompted some end-of-year reflection about the vast number of OTC products, 1996's record number of switches, consumer attitudes, the views of federal regulators and where drug stores fit into the equation.

Where we go from here

Drug stores will be winners in the OTC marketplace of tomorrow; it's a question of the margin of victory. First, we have to look at a few assumptions in the marketplace.

Consumers want a large assortment of OTC products from which to choose because it gives them the ability to control important health-related decisions. That's what Drug Store News found out earlier this year when we explored the subject of product assortment. Nearly 650 OTC consumers were surveyed, and 76 percent said "yes" when asked if they like having a large selection of OTC products.

Consumers got what they wanted this past year, and in the future they can expect more of the same, for two key reasons. First of all, it has become a pressing economic issue for manufacturers to switch every product that can be switched. The growth of managed care means once brand name prescription drugs lose their patent protection, they quickly lose market share to generic competition.

This economic reality is a major contributing factor in the switch movement. During 1996, there were eight major switch launches: Actron, Rogaine, Nicorette, Femstat 3, Zantac 75, And AR, Nicotrol and NicoDerm CQ.

Food and Drug Administration regulators have displayed a willingness to switch products even when their own advisory committees express reservations. Also boding well for future switches are two other key developments. The FDA is nearing completion of a policy and procedure manual, which basically serves as a road map to manufacturers looking to switch products. The other development centers on labeling. New product labels that improve communication with consumers, and ensure they take the product as directed, will allow the FDA to expand its view of what is switchable.

Another factor in the marketplace is confusion. Remember those consumers we surveyed that liked having a lot of products to choose from? Even more, 82 percent, agreed that a lot of products are alike That makes it difficult to decide what to buy.

Making the situation worse is the abundance of conflicting messages about health. Consumers see more and more health reports in newspapers, magazines and on television. Often, these stories, particularly the ones on television, are about a new miracle product or the alarming findings of a new study.

Manufacturers themselves exacerbate the situation with their own advertising. One of the past year's best, or maybe worst, examples involved the escalating feud between Whitehall Robin's Advil and McNeil's Tylenol. Both companies cast aspersions in their advertising about the safety and side effects of the other's pain reliever, perhaps to the detriment of the entire category. Meanwhile, Bayer Aspirin recorded its strongest growth in years.

Being part of the solution

Consumers are stressed out. The expanded choices that the marketplace provides them, and the conflicting messages they see, add to the stress. On the one hand, consumers have greater control because of all the product choices, but it also means they can make mistakes when selecting a product. Fear of making a mistake and buying the wrong product can be stressful.

Chain drug stores are positioning themselves as a less stressful shopping experience, but the concept hasn't been fully applied to the OTC department. For example, easily accessible, free-standing drug stores with drive-through pharmacy windows are all the rage. The next evolution has to take place inside the store, with innovative customer service approaches, because consumers need more help to make product choices. Sixty percent of those we surveyed agreed they would like more OTC information. If they aren't getting it, chain drug stores are missing sales and opportunities to satisfy and retain customers. The nonpersonnel solution involves presenting information at the point of sale where the ultimate decision is made.

Chain drug stores could borrow a page from the auto parts business. When you need spark plugs for an '89 Toyota, you look up the car model in a book mounted on the shelf and find the corresponding part. If you have a cold and a fever, wouldn't it ease the stress of selecting a product if such information in a similar format was available at the point of sale? It's an option, and it might not work, but until the day when the pharmacists, time is freed up to deal with customers it is a way to give customers more control, while simplifying product selection.