National brands gain ground on store brands
The introduction of store-brand products over the past decade changed the competitive landscape in most categories, with year-over-year growth outpacing national brands. Given this, it is critical that manufacturers and retailers utilize analysis and insights to maximize opportunities for growth and anticipate an increasingly dynamic marketplace. There are clear trends emerging across many segments, with a strong store-brand presence. While store-brand market share in general is on the increase, both the rate of increase in market share, as well as actual market share, is beginning to plateau. After five years, national brand OTC products experienced positive growth relative to store brands in 2013. This was driven primarily by gains in distribution, innovation and increases in media spend. In some cases, store brands have begun to cede ground as national brands once again emerge. To be clear, store brands show no signs of going away, but the past is not a prologue in the story of market share gains or losses.
DSN has partnered with Competitive Promotion Report and IRI to create a series of exclusive reports. This month the analysis explores the market trends around the major national brands and store brands in the drug channel for the cold-allergy-sinus tablets category over the past two years, highlighting important trends for establishing sound retail strategies. The following are just a few of the key findings from this study:
- Between 2012 and 2013, the category has seen a 4.3% market share change (weighted) in favor of national brands. Some brands fared better or worse than the average; however, the net effect benefits national brands.
- Using the gross average to get a general picture of what happened period by period, store-brand products experienced negative growth (i.e., loss) of 5.4% while the national brand counterparts averaged 4.7% market share growth each four-week period.
- The emerging leaders in market share growth are Alka-Seltzer Plus (35.9%) and Benadryl (18.9%).
- Reckitt Benckiser’s successful introduction of Mucinex Fast-Max contributed to national brand growth by achieving a 3.9% market share within the first six months of material presence (i.e., all period average of 2.4%).
- Average retailer margin percentage for national brands ranged from 23% (Claritin) to 38.2% (Alka-Seltzer Plus), with Zyrtec leading the pack in actual cumulative retailer margin dollars at $78.3 million over the 28 four-week periods studied.
- While Alka-Seltzer Plus maintained the highest average margin percentage among national brands, it also led in market share growth by retail sales dollars. This was the case despite having average promotional volumes lower than other national brand competitors.
- Store brands have continued implementation of very aggressive promotional strategies with frequency and depth of promotions greater than national brands.
- Store brands and national brands have increased the percentage of units sold on promotion year-to-year by 2.7% and 2.3%, respectively.
- The increase in promotional activity for store brands, coupled with the decrease in market share, indicates a need for analytic review of promotion strategy by national brand manufacturers and retailers.
For the full report, including charts, click here.
ABC News to host live Twitter chat on pain management
NEW YORK — ABC News will be hosting a live Twitter chat focusing on pain management on Tuesday, April 22, at 1 p.m., as part of the news agency’s next ABC News National Tweet Chat. ABC plans to cover a range of topics related to pain management, including chronic pain and palliative care.
ABC news chief health/medical editor Richard Besser hosts a weekly twitter chat (#abcDRBchat). Find him on Twitter at @DrRichardBesser.
Walgreens expands travel health services
DEERFIELD, Ill. — Walgreens on Monday announced that it is now offering expanded travel health services, including immunizations and consultations, to support the nearly 60 million annual planned trips by U.S. residents venturing outside the country.
“Our pharmacists frequently interact with patients as they plan travel, and this is another way we can provide personalized services to help them best prepare and stay well while abroad,” said Jack Cantlin, Walgreens divisional VP, retail clinical services. “In addition to immunizations, there’s a lot of pertinent health information people need when traveling to other parts of the world. By expanding our travel health services and spending more time with patients, Walgreens can serve as a convenient resource for all international travel needs.”
Walgreens travel health consultations are private appointments tailored to each individual’s personal medical history, travel destination and other informational needs. Consultations include travel itinerary review and recommendations on immunizations, prescription refills and over-the-counter medications. Patients can select between a 15-minute consultation or the 30-minute consultation inclusive of immunization and medication refill recommendations, a personalized travel health report and development of reference and vaccination documentation required for travel in a number of countries. Prices for consultations vary and start at $19.99.
Travel health consultations and immunizations are available at select stores during pharmacy hours with a scheduled appointment. Pharmacists use published travel guidelines that are updated daily to provide travel health information.
Travel immunizations are widely available at more than 5,000 Walgreens stores in 41 states. Full travel consultations, which can include immunizations and other services, are currently offered at 1,500 locations, Walgreens reported.
Travelers also can schedule an appointment for travel immunization only. Walgreen’ suite of travel immunizations includes Hepatitis A and B, Japanese encephalitis, polio, rabies, typhoid and Yellow fever.