CPGmatters: McNeil Provides Solutions at Shelf for Shoppers of the OTC Drug Category
By John Karolefski
Through a special arrangement, presented here for discussion
is a summary of a current article from the monthly e-zine, CPGmatters.
Research
from Johnson & Johnson, the parent of McNeil Consumer Healthcare,
found that OTC drug is a complex category that leaves shoppers overwhelmed
and often confused. Consumers have to deal with a wide variety of products
and often hard-to-read information on small packages. Easily assessing product
information becomes critical when consumers are taking other medications and
need to avoid side effects from mixing drugs. People also need to shop the
section more quickly when decisions are urgently needed.
The study — focusing
on pain relief, upper respiratory and digestive health — found that shoppers
want better category organization and improved navigational messaging. Over
80 percent of them recommend organizing and messaging the shelf according to
symptom.
“As they go down the aisle, shoppers want to see a proper flow of products
that make sense,” said Michael Pishvanov, associate director of shopper
marketing sales strategy at McNeil Consumer Healthcare speaking in a presentation
at the recent Shopper Insights in Action conference.
“There are certain things than can be done that can help. Using colors,
for instance, can help differentiate segments. You want to be careful and not
create a whole rainbow at the shelf, but still make some distinctions.”
More
than eight of 10 shoppers (81 percent) want more OTC drug information on the
product package itself, more than half (54 percent) desire more signage, and
four of 10 (41 percent) would welcome personal advice from a pharmacist.
The
important role of major brands was singled out by shoppers. They would welcome “beacon
brands” to help draw them to the products they
are looking for in the cluttered nonprescription drug section. Shoppers say
using well-recognized national brands such as Tylenol and Benadryl serve as “beacons” to
help navigation in the section.
“We recommend using beacon brands at top of the shelf to draw people
in,” said Mr. Pishvanov. “So, from 30 feet away, somebody can look
and — even if they can’t speak English — realize what that
category is.”
The study confirmed that all shopping trips are not the
same. The two major trip types are replenishment (people who know about a
product and are merely replenishing it) and immediate or urgent need (to treat
or cure an ailment).
That is why “we recommend developing strategies based
on trip type and not just by focusing on a category,” explains Mr. Pishvanov.
He
also recommended that retailers leverage their unique strengths such as one-stop
shopping and large assortments (but with better organization and navigation
cues). Other opportunities to focus on include staging promotions and relying
on available advice from a pharmacist where possible.
Discussion Questions: How can retailers improve the “shopability” of
the OTC drug category? What do you think of the suggestions in the article,
particularly the use of ‘beacon brands’ to improve navigation?
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9 Comments on "CPGmatters: McNeil Provides Solutions at Shelf for Shoppers of the OTC Drug Category"
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OTC drug shopping (especially for pain relievers and cold remedies) makes the cereal aisle seem simple by comparison. Brands like Tylenol and many others have added complexity through an endless stream of line extensions. (I’m still not clear on the difference between “Tylenol Sinus Congestion & Pain” and “Tylenol Severe Sinus Congestion.”) Add the growth in store-brand generics (many with their own line extensions) and it’s no wonder that the consumer is so confused.
Where to start addressing the problem? I think SKU rationalization makes just as much sense in this category as anywhere else in the store, but I wouldn’t stop there. I think it’s critical to add digital signing as a navigation tool and to provide product information. Finally, the big-box pharmacy chains need better category management: If Walgreens (for example) is really committed to be the headquarters of health and wellness, does it need to carry so much unrelated product?
The OTC Drug Category is confusing for the majority of shoppers for a number of reasons:
1) Large number of brands all making similar claims, lots of overlap, and yet some confusing minutia that imply differentiation.
2) Advertising/messages can be confusing.
3) Retail product assortment and the schematics that retailers use can be a blur to consumers.
4) Lack of true alternatives carried by retailers that seem to be locked in to SKU rationalization.
There is not enough room left on the already cluttered package designs to add more information. What retailers can do is to offer end-of-aisle information about what the various ingredients represent or mean. Most of the brands have all the same ingredients in various combination and mixes.
Ideally, retailer should provide a user-friendly advisor in the pharmacies that can provide attention to help consumers, as well.
This is truly a topic of passion for me–as well as our company. Helping consumers more easily and effectively navigate the OTC aisles within the retail healthcare space has been our focus for 30 years. Working with manufacturers, wholesalers and retailers we have been innovating at shelf.
And I agree with McNeil’s strategy that the time is ripe for a revolutionary change at retail. Although an evolution has been ongoing (e.g., SKU rationalization, improved shelf signage, shopper marketing/insights, etc.), consumers want to make well-informed decisions at the shelf and retailers have an opportunity to deliver an entirely new and refreshing experience.
OTC drug shopping is where I wave the white flag in stores. I ask the pharmacy staff for assistance. Maybe this is an area where the brand manufacturers should take notice of what others such as wines, sodas, and cereals are doing to get the shopper’s attention. As for me, if the product cures two of my three ailments such as cough and sluggishness, I will probably purchase it and hope there are no side effects.