Navigation Links
OTC Consumer Brand Loyalty Falters in Wake of Branded Recalls, Change in FSA Law, and Recession - Finds Kline
Date:7/24/2012

PARSIPPANY, N.J., July 24, 2012 /PRNewswire/ -- Significant product recalls and the ongoing recession have seen consumer behavior change when it comes to their OTC drug purchases, according to Nonprescription Drugs USA – Consumer Research recently published by global consulting and research firm Kline & Company. Consumers admit to seeking out lower cost nonprescription drug brands either by choosing the least expensive alternative, often private-label or store brand OTCs, or by shopping at value-focused retailers more often.

Since the FDA mandated plant shutdowns, product recalls, and oversight, Johnson & Johnson's market withdrawal from major OTC drug categories has affected purchasing patterns and crimped the company's market share. The vacuum left by the absence of the industry giant's popular brands from the market, including Tylenol, Motrin, Benadryl, and Sudafed, coupled with Novartis' recent Excedrin recall, have left consumers with fewer branded choices, particularly in the pain relief category.

Laura Mahecha, Kline's Healthcare Industry Manager, notes, "The impact and profound magnitude of ongoing economic uncertainty is borne out by more than half of respondents in Kline's survey disclosing that they've changed how they purchase OTC drugs. Specifically, nearly a quarter of those surveyed choose private-label OTC drugs whenever possible because of their perceived cost advantage." Other consumers note they are using coupons and stocking up on OTC drugs when they are on sale, regardless of need, as a result of the recession.

This shift is illustrated by private-label adult acetaminophen enjoying a near 14% sales increase over 2010, as the largest direct beneficiary of Johnson & Johnson's flagship brand Tylenol's being out-of-stock for extended periods in 2010 and 2011. Similarly, in the children's pain-control segment, sales of private-label acetaminophen saw a telling increase of over 30% compared to 2010. Competing brands Advil (Pfizer), Aleve (Bayer), and Bayer Aspirin (Bayer) have also enjoyed substantial sales increases in 2011, up 7.3%, 6.0%, and 8.9%, respectively, over 2010 sales numbers.

Mahecha continues, "The analysis suggests that consumers, challenged by the recession and the fragility of brand loyalty, have been able to replace the recalled brands adequately over the past two years. At the relaunch of recalled brands, Johnson & Johnson will need to invest heavily in brand marketing and even after doing so it may take several years to regain a fraction of the brand's previous sales and market shares."

Approximately one in five respondents have used Flexible Spending Accounts (FSA) to purchase OTC drugs or nutritional supplements in the past. Effective January 1, 2011, changes in FSA eligibility coverage have affected the OTC drugs market, with the consequence that a doctor's prescription is now needed for many OTC medicines and nutritional supplements to be purchased using FSAs. Consumers have thus incurred an inherent additional cost and inconvenience. The Consumer Healthcare Products Association (CHPA) is endeavoring to have this change repealed as it ostensibly contravenes the act's goals of healthcare cost reduction and minimizing unnecessary visits to the doctor. Feedback from consumers on their use of FSAs to buy OTC drugs in light of the change in the law is also included in the study.

As part of Kline's 33rd edition of Nonprescription Drugs USA, the consumer research section consists of pertinent and actionable data collected online from over 300 consumers during Winter 2012. As part of this research, consumers were asked a series of questions on their OTC drug retail preferences, FSAs, reactions to branded OTC recalls, Rx-to-OTC switches, and online purchase behavior for OTC drugs.

About Kline:
Kline is a global consulting and research firm dedicated to providing insight and market intelligence that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.klinegroup.com.

Contact:

Vera Sandarova
+420-222-33-00-13
Vera.Sandarova@klinegroup.com


'/>"/>
SOURCE Kline & Company
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. Consumers Are Advised to Be Aware of Hidden Costs in Some Discount Dental Plans
2. NABP Applies for New .PHARMACY Generic Top-Level Domain to Provide a Secure Destination for Consumers
3. PeriGen, Inc. Launches Consumer Safety Campaign to Raise Awareness of Dangerous Birth Complication
4. ResearchMoz.US: Direct to Consumer (DTC) Advertising in Pharmaceuticals - Shift From Traditional Mass-Media Platforms Towards Personalization via Online and Social Media- Market Research Report
5. Direct to Consumer (DTC) Advertising in Pharmaceuticals - Shift from Traditional Mass-Media Platforms towards Personalization via Online and Social Media
6. Perrigo Announces FDA Final Approval and Launch of Store Brand OTC Lansoprazole 15mg Capsules
7. Dave Zitnak Of Upsher-Smith Laboratories Named Branded Representative Of The Year By McKesson Corporation
8. Cannabis Science Gets Set to Release "Phytiva" Its Newest Brand of Over-the-Counter Skin and Nutraceutical Product Lines Through its Newest Venture Phytiva Pharmaceuticals Inc.
9. Lilly Expands Strategic Partnership with Chinese Manufacturer Novast to Serve Chinese Patients with High-Quality Branded Generic Medicines
10. Forbes Names Pharmalot, a UBM Canon Pharmaceutical Media Group Brand, as a Top Social Media Influencer
11. Education, Reimbursement Options are Key Components of Effective Pharmaceutical Brand Websites
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:10/11/2017)... , Oct. 11, 2017  BioPharmX Corporation (NYSE ... team that developed an innovative way to use nonlinear ... the delivery of new drugs. ... Clinical Dermatology Conference will show how researchers from BioPharmX ... Harvard Medical School used a suite of imaging techniques ...
(Date:10/10/2017)... received FDA 510(k) clearance in May 2017 for its highly anticipated ... for endoscopy environments. An innovative secondary monitor solution, ZeroWire Mobile ... the improvement of patient outcomes, procedural efficiency, and the lowering of ... ... By ...
(Date:10/4/2017)... Oct. 4, 2017  South Korean-based healthcare product Development ... aide "cprCUBE" on Kickstarter. The device will educate the ... arrests with better efficiency compared to the dated and ... feedback on efficacy of the compression for a more ... a goal to raise $5,000. ...
Breaking Medicine Technology:
(Date:10/13/2017)... (PRWEB) , ... October 13, 2017 , ... The American ... to become its next President and Chief Executive Officer, succeeding Dr. James C. Puffer ... Elect beginning July 1, 2018 until Dr. Puffer’s retirement at the end of 2018. ...
(Date:10/13/2017)... ... October 13, 2017 , ... Lori R. Somekh, founder of the ... national organization of elder law and special needs planning attorneys. “Membership in ElderCounsel helps ... provides a forum to network with elder law attorneys nationwide,” said Somekh. , ...
(Date:10/13/2017)... ... October 13, 2017 , ... Ellevate Network, the leading network ... advocate for action towards gender equality at their inaugural Summit in New York City ... and reached a social audience of over 3 million. To watch the Mobilize Women ...
(Date:10/13/2017)... ... October 13, 2017 , ... ... Software Development, has been awarded a contract by the Center for Medicare and ... aims to accelerate the enterprise use of Agile methodologies in a consistent and ...
(Date:10/12/2017)... (PRWEB) , ... October 12, 2017 , ... ... are now treating sleep apnea using cutting-edge Oventus O2Vent technology. As ... serious sleep disorder characterized by frequent cessation in breathing. Oral appliances can offer ...
Breaking Medicine News(10 mins):