CINCINATTI — Procter and Gamble’s Bounty unveiled a new cloth-like disposable paper towel designed to be used in place of dishcloths. P&G research shows that reusing dishcloths can redeposit millions of germs after just one use. Switching to disposable Bounty DuraTowel is a cleaner alternative. The DuraTowel is made with a durable, fiber-rich design and can be used for cleaning countertops, sinks and small appliances. The new product is available now at a suggested retail price of $3.19.
Stores stock up on ‘As Seen On TV’
There’s a lot to like about the As Seen On TV category. It has a sell-through rate between 10% and 20%. Margins also are in the double-digits. Best of all, the products that make it to retail shelves are proven winners.
"Our market model is very sound," said AJ Khubani, CEO of TeleBrands. "As a group of companies, we test market hundreds of products on television, then bring the top 10 to retail. Drug chains are only getting the products that are most successful. They are consumer-tested with a known demand and significant advertising support."
Sales in the segment are up 20% over last year, and Khubani said growth could be even stronger this year. Retailers have responded to the success of the category by giving what was once an in-and-out category a permanent home year-round in the center of the store.
The secret to maximizing sales in the segment is to get in while the products are hot and move the items fast. "These products have a short lifecycle, so retailers have to react quickly to be on top," Khubani said.
Pets fetch specialized OTC segment
While the recession has caused some pet lovers to cut back spending on toys and treats, when it comes to their pets’ health, consumers aren’t skimping. A recent Packaged Facts consumer survey shows that 43% of dog owners and 36% of cat owners purchase some type of specialty nutritional formula pet food or supplemental nutritional products. In 2012, sales totaled about $1.3 billion, according to Packaged Facts.
Packaged Facts research director David Sprinkle said an aging pet population is driving the market as more pets suffer from such age-related conditions as joint deterioration and cognitive dysfunction. Supplements with glucosamine, omega fatty acids and probiotics — along with such trendier ingredients as bee pollen, green tea and elk velvet antler — have been category-drivers, according to the firm’s research.
In addition to traditional tablets and pills, supplements now come in functional biscuits, soft chews and alternative delivery formats, such as gels and pastes.
Consumers have become more educated about taking care of their pets and understand the importance of preventive pet care. At the same time, pharmacies are filling more prescriptions for aging pets. Drug chains offering a good selection of pet supplements and OTCs are in a good position to gain a bigger share of the pet care market.