OTC Market in India

7/30/2019 OTC Market in India

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OTC Market in India: Marketing the FMCG Way

Over-the-counter (OTC) drugs are medicines that may be sold

without a prescription, in contrast to prescription drugs. These items can be found on

the shelves of grocery/ cosmetic stores and bought like any other packaged product in

some countries or in others may be bought "over the counter" from the pharmacy,

while prescription drugs are sold at a pharmacy counter.

In 2005 the Indian OTC segment was Rs4500 croreit could be considered as Rest

17000 crores if cosmeceuticals & neutraceuticals are also included. The CAGR forIndian OTC markets is currently hovering between 12 and 15% and this is much faster

than OTC market growth of most development countries.The OTC Market in India in

2007 will be around Rs. 6000 & 20000 crores. As per Euro RSCG India,OTC market is

hovering around Rs. 2800 crores.

The global OTC market is projected to be USD 75 billion with a cumulative annual

growth rate (CAGR) of 4.5%, which will make it 82 B$ in 2007.

There are different categories under OTC, out of which here is a list of categories

which have spent maximum in brand building through on TV are as follows:
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1. Rubs/ Balm - Moov, Iodex, Himani Fast Relief, Emami Mentho Plus, Amrujanjan

Joint Ache Cream

2. Analgesic/ Cold Tablet - Dcold, Stopache, Crocin, Disprin

3. Digestives - Eno, Hajmola, Pudin Hara, Dabur Hingoli

4. Medicated Skin Treatment - Itch Guard, Krack, Ringguard, Clearasil

5. Cough Lozenges - Strepsils, Halls

6. Vitamin/ Tonic/ Heath Suppliments - Horlicks, Complan, Boost, Chawanprash -

Dabur, Sona Chandi, Himalaya, Calcium Sandoz, Jeevanprash

7. Antiseptic Cream/ Liquids - Borosoft, Boroplus, Dettol

'Cipla I-Pill' a new brand was the most advertised brand on TV during January-

September 2007.

12 per cent growth was observed in the advertising volumes of OTC (Over the

Counter) sector on TV during January - September 2007 over January-September

2006 (AdEx - division of TAM Media Research). 'Rubs/Balms' had the largest share ofoverall OTC advertising pie.

Challenges for OTC Market & Inhibitions for branding
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1. There is no clear definition of what constitutes an OTC pharma product. The

healthcare segment in India has to mature enough for OTC expansion. The Drugs

Technical Advisory Board has resisted approval of shift of molecules from prescription

to OTC. So, that is the real challenge, not that OTC companies have not invested

enough in brand building

2. There are a number of drugs such as Ranitidine (a digestive drug) which are sold in

supermarkets in the West under various brand names. But the regulatory authority in

India allows Ranitidine to be sold only through the prescription route

3. As per the regulations, one cannot sample OTC products directly to consumers. It

has to be at the pharma shop level

4. The Indians always prefer home remedies to a prescription drug - Dadi Maa Recipes

5. Huge expense a brand may incur to advertise. The brands' turnovers are not large;

many brands wonder whether spending 5-6 per cent of their turnover would give them

enough returns

6. Invest in branding also has a fear of getting alienated by the community of doctors.

Most brands consider the prescription route to be much safer

7. Consistent brand bulding is required over a period of time - Brands such as Coldarin

have collapsed due to lack of consistency not only in spends but also positioning

The challenge for the pharma industry is to reach the fragmented target population of

end-users while maintaining their traditional relationship with doctors.

Some players are already investing money in brand building. Benadryl, for instance,

has spent Rs 7.5 crore on a brand turnover of Rs 35 crore, while Glycodin has spent Rs

4.5 crore on a brand turnover of Rs 18 crore.

Let me also enumerate some unconventional ways of marketing by OTC companies:

1. In-film & Event branding: Boots Piramal Healthcare started an initiative in Salaam

Namaste where actress Preity Zinta attributes her clear voice to Strepsils. Second, for


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the Strepsils-Sa Re Ga Ma tie-up to release 12 music albums (twin CD packs)

comprising retro originals. The Sa Re Ga Ma tie-up is a unique brand exercise to

leverage the brand's identity of a clear voice by associating it with public figures such

as Asha Bhosle and Kishore Kumar

2. Says Adarsh Somani, Director of Kopran which launched the Smyle Sore Throat

Reliever in 2003, "The Reliever was not well received initially due to its gargle-and-

gulp process. It took us some time to establish this product. We invested a lot in

advertising and in building up the concept." A trend-setter in its ads constructed

around Kaun Banega Crorepati, the Smyle campaign became the talk of ad circles.

The advertisement presented a child actor answering a

question, "Which is the best cough syrup?" The question was asked by a voice

resembling that of Amitabh Bachchan on KBC. The child's answer, "Smyle Sore ThroatReliever," wins him a crore of rupees. The ad helped make the product a national

brand

3. FMCG major Procter and Gamble (P&G) India has emerged as a winner in the OTC

category by implementing various promotion programmes for Vicks (Vaporub, cough

drops and Vicks Action 500). Their Mass Consumer Contact programme was a first-of-

its-kind initiative that not only displayed the product but also allowed consumers to

experience its effect first hand at small towns and villages, stores and cinema halls.

Recalls Rahul Malhotra, the company's Head of

Marketing, "Regulations do not permit marketers to sample allopathic drugs outside a

drug store. In the early eighties our company hit upon a unique mass sampling idea.

We released an ad in leading dailies which had a tear-off coupon at the bottom.

Readers could exchange the coupon for two free Vicks Action 500 (VA500) caplets

from the chemist store. This single initiative helped VA500 generate mass trials

overnight."

4. P&G also conceptualised the House of Vicks, a counter display for chemists to storeVicks products so as to increase product visibility. Converting Vicks Inhalers into

trinket key-chains proved a good campaign for the brand too

5. In 1999, Kopran had put up a 2 km-long banner starting from Nariman Point up to

the Marine Drive Flyover in Mumbai. The publicity event, which was timed to coincide


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with the one-day cricket match nearby, gave the company an additional audience of

6,000 people. The event also received appropriate coverage in a few newspapers as

Kopran had also provided TV screens on the pavement for cricket-lovers who could

not get tickets into the stadium.

6. Then in 2003 Strepsils launched a Clear Speak column on the front page of The

Indian Express. This 10 column centimetre (cc) fully-coloured column consisted of 5cc

of Strepsils branding and another 5cc of an interesting comment from a commentator,

cricketer or coach

This clearly shows that lot of branding efforts have been put in past despite lot of

challenges in this category. Also with the fast moving life, people are shifting from

Doctor prescription to OTC products (driven by marketing efforts); definately makes

OTC a big segment in future.

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OTC Market in India

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