Table of Contents
Issues in the Market
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- Definitions
Insights and Opportunities
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- Breaking down the strong seasonal element to the market
- Developing a more functional cold and flu proposition
- From a product-centred focus to a services-based one
- Encouraging resurgence in traditional cold and flu remedies?
- Developing the cold and flu prevention category
- Developing new product format
- Further opportunities
Market in Brief
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- Sales grow
- Decongestants perform well
- Branded sales dominate...
- ...own-label stalls
- Adspend high
- Grocery increases share
- Flu rates drop
- Consumers trend to self-treatment
- Trust and efficacy are key
- Brands will continue to underpin market
Fast Forward Trends
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- Trend 1: “Memories Are Made of This”
- Definition
- What it is – general observations
- Market touchpoints/implications
- Trend 2: “Deseasonalisation”
- Definition
- What it is – general observations
- Market touchpoints/implications
- Trend 3: “Advertising to the Herd?”
- Definition
- What it is – general observations
- Market touchpoints/implications
Internal Market Environment
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- Weather
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- Figure 1: Average winter temperature, 2001/02-2005/06
- Keeping the colds at bay
- Incidence of conditions
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- Figure 2: Complaints suffered from in the last 12 months, 2002-06
- Flu declines
- Increased uptake of flu jab
- Treating flu
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- Figure 3: Action taken when suffering from flu with a slight temperature, 2004 and 2006
- Self-treatment encouraged
- Old keep the faith in traditional remedies
- Smoking in decline
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- Figure 4: Trends in cigarette smoking, 2002-06
- Smokers catch cold
- Smokers suffer more
- Effect of smoking ban?
Broader Market Environment
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- AB socio-economic status growing
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- Figure 5: Changes in socio-economic status, by gender, 2001-06
- ABs confident in self-treating
- Ageing population
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- Figure 6: Changes in the UK demographic profile, by age and gender, 2001-06
- Over-55s avoid colds
- Max strength to entice young to treat
- Declining household size
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- Figure 7: Changes in household size, 2001-06
Competitive Context
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- Figure 8: Summary of market strategies in other wellbeing markets, 2006
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Strengths and Weaknesses in the Market
Who’s Innovating?
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- Importance of product licence
- GSL has wider reach
- NPD brand-led
- Convenience
- Maximum strength
- ‘Sensory’ decongestants
- Preventative products
Market Value and Forecast
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- Figure 9: UK retail sales of cold and flu remedies and decongestants, 2001-06
- Cold and flu remedies come out of the cold
- Brands drive growth
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- Figure 10: UK retail sales of cold and flu remedies and decongestants, by sector, 2002-06
- Decongestants move forward
- Emerging ‘preventative’ sector buoys value sales
- Future trends
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- Figure 11: Value market size and forecast of the market for cold and flu remedies, at current prices, 2001-11
- Figure 12: Value market size and forecast of the market for cold and flu remedies, at 2006 prices, 2001-11
- Trading up driving remedies
- Unblocking growth in the decongestants sector
- Emerging preventative sector
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Segment Performance
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- Cold and flu remedies
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- Figure 13: UK retail sales of cold and flu remedies, 2001-06
- Sales perk up
- Brands lead the way
- Max strength = max value
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- Figure 14: UK retail sales of cold and flu remedies, by type, 2002-06
- Choice is key
- Hot drinks top sales
- Capsule collection
- Tablets stable
- Single-dose boosts liquids
- Cold drinks stagnate
- Decongestants
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- Figure 15: UK retail sales of decongestants, 2001-06
- NPD unblocks decongestant sales
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- Figure 16: UK retail sales of decongestants, by type, 2002-06
- Topical growth
Market Share
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- Figure 17: Manufacturers’ brand shares in cold and flu remedies, 2002-06
- Brands rule
- Loyalty key to sustaining share
- GSK tops sales
- Own-label small
- Distress purchasing favours brands
- Decongestants
- Sudafed tops decongestants
- NPD drives category growth
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Companies and Products
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- Company profiles
- Reckitt Benckiser
- GlaxoSmithKline
- Pfizer
- Novartis
- Thornton & Ross
- Procter & Gamble
- Own-label
- Others
Brand Communication and Promotion
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- Figure 18: Main monitored media advertising expenditure on OTC cold and flu remedies and decongestants, 2001-06
- Adspend consistently high
- Big spenders
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- Figure 19: Top advertising expenditure on OTC cold and flu remedies and decongestants, 2005
- Adspend reflects market share
- Support for new launches
- Media spend by season
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- Figure 20: Main monitored media spend, by quarter, 2005
- Last quarter advertising
- Media spend – by channel
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- Figure 21: Main monitored media spend, by media channel, 2005
- TV provides mass impact
- Talking to the workers
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Channels to Market
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- Cold & flu remedies
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- Figure 22: UK retail sales of cold and flu remedies, by outlet type, 2002-06
- Grocers closing in on pharmacies
- Battle for share hots up
- Improved merchandising aids grocers
- Decongestants
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- Figure 23: UK retail sales of decongestants, by outlet type, 2002-06
- Pharmacy stronger in decongestants...
- ...but still losing ground to multiples
Consumer 1 – Who – Usage and Frequency
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- Incidence of ailments
- Young catch flu
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- Figure 24: Incidence of cold and flu, by age, 2006
- Fewer ABs get flu
- Family ailments
- Women examine symptoms
- Cold and flu remedies usage
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- Figure 25: Usage of cold and flu remedies in the last 12 months, 2002-06
- Frequency of usage declines
- The busiest use most…
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- Figure 26: Usage of cold and flu remedies in the last 12 months, by age, 2006
- Driving need max. strength product
- Usage by ailments suffered
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- Figure 27: Usage of cold and flu remedies in the last 12 months, by complaints suffered in the last 12 months, 2006
- Significant potential for growth
- Usage by smoking
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- Figure 28: Usage of cold and flu remedies in the last 12 months, by cigarette smoking, 2006
- Smokers use more remedies
- Action taken
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- Figure 29: Usage of cold and flu remedies in the last 12 months, by action taken when suffering from flu with a slight temperature, 2006
- To medicate or not to medicate
- More than one approach
Consumer 2 – Attitudes towards Cold and Flu
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- Figure 30: Attitudes towards cold and flu remedies, July 2006
- Laissez-faire attitude towards colds
- Colds and flu – a fact of British life
- Younger consumer are the most likely to ignore a cold and flu
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- Figure 31: Agreement with statement ‘I'll ignore it until it goes naturally’, by age, July 2006
- Over-65s are the most likely to seek treatment…
- …but use alternative treatments for cold and flu relief
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- Figure 32: Actions taken when have a cold and flu, by age, July 2006
- The gender gap
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- Figure 33: Actions taken when suffering from a cold and flu, by gender, July 2006
- ABC1s more loyal
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Consumer 3 – Further Analysis
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- What are consumers looking for?
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- Figure 34: Key features sought in minor ailment remedies, July 2006
- Repertoire Analysis
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- Figure 35: Repertoire of key features sought in minor ailment remedies, July 2006
- Placing trust in brand
- CHAID Analysis
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- Figure 36: Repertoire CHAID analysis of key features sought in minor ailment remedies, July 2006
- Young are most picky
- Consumer typologies
- Identifying consumer targets
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- Figure 37: Consumer typologies, July 2006
- Preventative/Proactive – 45% (of all consumers)
- Natural – 42%
- Treatment/Reactive – 49%
- Worrier – 36%
- Relaxed – 47%
- Product choice
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- Figure 38: Top three features sought in minor ailment remedies, by consumer typology, July 2006
- Typology overlaps
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- Figure 39: Cross-tab of netted consumer typologies, by typologies, July 2006
- Consumers are not ingrained in one group
Appendix
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- Introduction
- Consumer research
- ACORN
- Advertising data
- Abbreviations
- Internal market environment
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- Figure 40: Average winter temperature, 2001/02-2005/06
- Figure 41: Action taken when suffering from flu with a slight temperature, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel’s Special Groups, 2006
- Figure 42: Complaints suffered from in the last 12 months, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel’s Special Groups, 2006
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- Figure 43: Complaints suffered from in the last 12 months, by cigarette smoking, 2006
- Broader market environment
- Competitive context
- Who’s innovating?
- Segment performance
- Brand communication and promotion
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- Figure 44: Main monitored media spend, 2003-05
- Channels to market:
- Consumer 1 – detailed demographics
- Usage of cold and flu remedies
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- Figure 45: Usage of cold and flu remedies in the last 12 months, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel’s Special Groups, 2006
- Consumer 2 – detailed demographics
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- Figure 46: Attitudes towards cold and flu remedies, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, region, ACORN category, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage and household size, July 2006
- Figure 47: Attitudes towards cold and flu remedies, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage and household size, July 2006
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- Figure 48: Attitudes towards cold and flu remedies, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage and household size, July 2006
- Consumer 3 – further analysis
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- Figure 49: Number of key features sought in cold and flu remedies, July 2006
- Consumer clusters
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- Figure 50: Consumer typologies, by gender, age, socio-economic group, marital status, lifestage, working status and tenure, July 2006
- Figure 51: Features sought in cold and flu remedies, by consumer typologies, July 2006
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