IMS’ Long tracks trends in Rx market
BOSTON — IMS Health VP industry relations Doug Long briefed a packed house of NACDS TSE attendees on the latest trends shaping the U.S. pharmaceutical market.
Looking at historical trends over the past 10 years, Long noted that pharmaceutical sales had rebounded sharply in 2013 and 2014 following an all-time low in 2012 when “the market declined for the first time in its history,” Long said.
According to the latest IMS Health data, pharmaceutical sales grew 10.7% through June on a 12-month moving annual total basis, and was up more than 13% year to date through June, tracking at more than $346 billion. This despite a weak flu season and a weaker than expected allergy season this year.
Sales in 2013 topped $329 billion, with retail representing more than 71% of the market on sales of $236 billion, up 3.2%, and chain pharmacy leading the way, with sales of $115 billion, up 4.1%.
NACDS living ‘Total Store’ commitment
Two recent projects of the NACDS Retail Advisory Board stand out as examples of NACDS’ commitment to execute the “total store” vision behind the NACDS Total Store Expo.
The NACDS Retail Advisory Board establishes members in their appropriate roles, which is driving the programs and services of NACDS. The NACDS Retail Advisory Board includes front-end suppliers and chain representatives, and they advise the NACDS board of directors on front-end issues and the association’s programming.
In June, the NACDS Retail Advisory Board and global strategy firm The Partnering Group released a report to help retailers and suppliers establish joint business plans to align and optimize shared business goals.
The report, “Creating Value Together,” brings a sophisticated approach to the growing movement of joint business planning. We know that time is one of the biggest challenges confronting truly collaborative efforts to achieve joint goals.
I applaud the NACDS Retail Advisory Board for taking steps to help companies simplify the process and streamline the time it takes to create a joint business plan. One of the results of this improved efficiency will be the ability of companies to enter into these relationships with more of their business partners.
Another of the NACDS Retail Advisory Board’s initiatives stands to help companies understand and act on an equally timely subject: digital marketing.
Today, at the NACDS Total Store Expo, during an Insight Session, NACDS and A.T. Kearney are releasing the results of the “Winning with Digital” study. The goal of the study is to answer the following questions:
- Which specific digital marketing vehicles do retailers find most attractive?
- What are their digital goals? and
- What are the implications of these trends for consumer packaged goods manufacturers?
Perhaps one of the most interesting aspects of the study is that its findings gel in many ways with the collaborative spirit of the joint business planning report that I mentioned, and with the collaborative spirit of the NACDS Total Store Expo.
When it comes to understanding consumers’ desires and digital usage, nearly 40% of retailers involved in the “Winning with Digital” study expressed strong interest in collaborating with suppliers in developing knowledge in these areas. That shows significant intensity of interest, as that 40% figure does not include others who expressed some or modest interest.
The NACDS Retail Advisory Board’s work with our partners on joint business planning and digital strategies reflects a commitment to relevance. These are timely subject areas, to which NACDS and our partners are bringing actionable insights.
Such on-the-mark initiatives as these are able to thrive when an association operates in a truly member-driven format. And on-the-mark initiatives like these are bringing a consistent and “total store” approach to the member programs and services of NACDS.
On behalf of the entire industry, I want to thank the members of the NACDS Retail Advisory Board for their amazing efforts, and I want to thank the entire NACDS board of directors for prioritizing this area of focus.
Steve Anderson, IOM, CAE, is president and CEO of the National Association of Chain Drug Stores.
Hot OTC products at NACDS Total Store Expo 2014 – Part 2
Zaditor Eye Allergy Drops
In an effort to help highlight the role that good eye health and clear vision play in life, Alcon recently grouped its over-the-counter eye care products into one easy-to-shop solution — the eyeSolution. The eyeSolution portfolio includes Clear Care Solution for contact lens wearers, ICaps Eye Vitamins, Naphcon-A Eye Allergy Drops, Opti-Free, Systane and Zaditor Eye Allergy Drops. Alcon plans to launch two campaigns this year in support of the overall initiative. The first, Get an A+ in Eye Care, will encourage families to think about visiting the eye doctor as they get ready to head back to school. The Science of Beautiful Eyes campaign will launch shortly after, and will be aimed at helping women take care of their eyes.
Cold Sore Treatment
Carma Labs recently launched Carmex Cold Sore Treatment, which, according to the company, is the only over-the-counter cold sore treatment that works on contact to block pain and itch with 10% benzocaine, while also minimizing the appearance of a sore. The combination of the three technologies found in its TriPLEX formula advanced technology allows this new formulation to provide cold sore appearance-softening benefits. The technology helps fill in unevenness of the cold sore and correct the skin tone of the cold sore.
IdeaVillage’s As Seen on TV Copper Fit is a line of compression products endorsed by NFL linebacker Bruce Davis and nationally-ranked gymnast Sugar Tiner. The fabric is a polyester/spandex blend infused with copper fabric. The compression knee sleeve and ankle socks feature wicking properties and are anti-static and anti-pilling. Copper Fit provides support for muscle stiffness, soreness and pain, and helps reduce muscles’ recovery time. The products also help prevent strain and fatigue, while supporting improved circulation.
Preconception Health Test
Insight Pharmaceuticals recently introduced e.p.t Preconception Health Test, a new product that measures vaginal acidity and indicates the presence of infections so women can visit their doctor and seek treatment before trying to conceive. The test consists of a swab with an easy-to-hold grip and a color-changing tip. If any part of the tip is stained blue or green, vaginal acidity is abnormal, which can be a sign of an infection, indicating that women should see their healthcare provider. If the color tip remains unchanged, vaginal acidity is normal. The e.p.t Preconception Health Test retails for $17.99 per two-count box.
Mentholatum Nighttime Vaporizing Rub
The Mentholatum Co. recently launched Mentholatum Nighttime Vaporizing Rub, a chest rub specially formulated for nighttime use by combining a lavender scent with a maximum strength formula to effectively soothe and relieve cough-cold symptoms. Mentholatum Nighttime Vaporizing Rub will be available at retailers this fall, just in time for the height of the cough-cold season. The suggested retail price is $6.99, and during its launch a $1 coupon will be included on each box, along with a scratch-and-sniff sticker, allowing consumers to experience the scent before purchase.