The Roads Now Traveled In a rapidly changing world of commercial media, it is becoming more and more challenging for OTC marketers to reach their consumer targets. Brian Doherty, EVP, Director, Client Services, Ferguson, part of CommonHealth The die has been cast for our nation’s healthcare reform, and despite backchannel prep among legislatures, changing the healthcare system seems more difficult than ever. Among the few certainties, however, will be the goal of reducing the cost of treatment by private health insurance providers and the indirect acceleration in shifting costs toward patients. An obvious outcome will be the increased filling of prescriptions with generics and protocols that demand step-edits. Looking just a little deeper and further ahead, we can also expect a significant increase in the use of over-the-counter (OTC) medications. Since there can be no actual self-care policy, OTC usage is expected to continue to grow with healthcare reform, as the system, and the impending dearth of medical professionals, will have difficulty covering “minor" ailments, thus pushing treatment efforts back onto the consumer. Whether it’s physicians and their staffs encouraging self-treatment for patient-manageable conditions or the rising of retail clinics, the trend has begun. The Rise of OTCs This is just one of the reasons cited by Nicholas Hall Inc. as explanation for their assertion that between now and 2017 the use of OTC medications will more than double to over $170 billion.1 This surge will, no doubt, be fueled by a provision for greater choice coupled with more and more brands options — indeed entire categories — of highly prescribed medications becoming available over the counter. And if you subscribe to the theory that the US healthcare reform is being modeled on systems already existing in countries like Canada and the UK, consider that a recent study demonstrated that 41% of primary care physician office visits in the UK ended with an OTC recommendation, up from 5% in 1997.2 A Marketing Challenge So what does this mean for the consumer brand manager for an OTC product? Doesn’t he or she have enough to worry about just getting his or her product featured at WalMart? What’s the professional opportunity for them? This is where healthcare reform and consumer promotion meet — at the physician’s office. In a rapidly changing world of commercial media, it is becoming more and more challenging for OTC marketers to reach their consumer targets. For example, according to PricewaterhouseCoopers, by the end of 2009 nearly 40% of US homes will contain a digital video recorder (DVR); new TiVo-based research reports that more than 90% of DVR users “almost always" or “always" fast-forward through the commercials.3 So where can the relevant messages of OTC medications be heard? Where can a hyper-targeted consumer strategy be found and to whom can it be directed? And where must these messages be placed to get the consumer to really listen? How can a marketing strategy be so efficient that a single message exposure has the chance to build a lifetime loyalist? A Professional Recommendation Detailed as far back as the Medical Economics report of 1990 and validated repeatedly, professional recommendations are one of the most valued sources of information to the American consumer.4 Today that value is confirmed as nurses, pharmacists, and physicians make up three of the four most trusted professions (high school teachers finished third).5 No wonder medical professionals secure brand loyalty like no other source of a product recommendation, making “my doctor said" one of the most influential sources for product trial. This ability to influence and create brand loyalists becomes even more critical during periods of recession. As reported by Kline & Co., although the OTC market continues to grow in a down economy, there is a noticeable shift to private label purchases, making physician endorsement the main strategy to maintain and grow market share.6 According to Medical Economics data, 85% of patients receiving a recommendation from their physician actually purchase the recommended brand. And throughout the year, a full 70% make repeat purchases — of the same brand.4 As the rushing change of healthcare reform converges with limited consumer reach, managers of OTC brands are now beginning to realize that their success doesn’t just depend on securing market share at the shelf level, but also requires them to battle for share of healthcare. These are the roads now traveled. And capturing share of healthcare will depend, in-part, on recognizing that the roads meet in front of the physician’s office. n Source: 1. Nicholas Hall Inc., Rx-OTC Switch Conference, September 15, 2008. 2. GP, August 5, 2002. 3. PreTesting, OTC Conference, June 4, 2009. 4. Medical Economics Study, Consumer Use of OTC Products: The Healthcare Professional’s Influence on Consumer Usage, September 1989. 5. Gallup Poll, Nov. 7-9, 2008; 6. Kline & Company, July 15, 2009. Ferguson, part of CommonHealth Ferguson, part of CommonHealth, is the network’s founding professional advertising and promotion agency and houses the Ferguson OTC (over-the-counter) Center of Excellence, a new initiative designed to address the rapid increase of promotion and use of OTC drugs. For more information, visit commonhealth.com/ferguson.

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