Pharmaceuticals Consumer - US - March 2011

SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Positive factors affecting pharmaceutical category
Temporary price boosts
Negative factors affecting the category
The challenges of marketing pharmaceuticals
Women and older Americans more concerned about side effects
Less affluent more concerned about side effects
Prevalence of ailments
Ailment-specific treatment methods
Most have favorable impressions of pharmaceuticals
Older Americans have a more passive attitude toward drug choice
INSIGHTS AND OPPORTUNITIES
Making the most of marketing
Unbranded marketing to create brand awareness
Figure 1: RealRALiving.com, television ad, 2010
Coupons for branded pharmaceuticals
INSPIRE INSIGHTS
Inspire Trend: Celebs and Social Engineering
MARKET TRENDS AND FACTORS
Key points
 POSITIVE DRIVERS
The graying of America
Figure 2: U.S. population aged 18 or older, 2006-16
Unhealthy lifestyles create a breeding ground for disease
Figure 3: Leading causes of death, 2007
Black and Hispanic adults more likely to be at risk for health issues
Figure 4: Population, by race and Hispanic origin, 2006-16
 PRICE INCREASES PROVIDE TEMPORARY BOOST BEFORE PATENT EXPIRATION
Pharmaceuticals are more expensive
Figure 5: Average per-person spend on prescription drugs, 2008-09
Figure 6: Pharmaceuticals with largest retail price increases, from 2008-09
 NEGATIVE DRIVERS
Pharmacies push generics
Figure 7: Sales of pharmaceuticals, by drug chain stores, 2005-09
Mail order sales commoditize the category
Figure 8: Sales of pharmaceuticals, by mail order, 2005-09
While Illegal drug sales via the internet complicate
HEALTHCARE COVERAGE
Key points
Decline in rate of those privately insured
Medicare and Medicaid hurt category sales
Medicare and pharmaceuticals: the buyer’s choice
Medicaid and pharmaceuticals: generics are the choice
Health insurance coverage among under-65s
Figure 9: Type of health insurance coverage for persons under 65, 1997-2009
Figure 10: Percentage of persons under age 65 years without health insurance coverage at the time of interview, by age group and race/Hispanic origin: United States, 2009
COMPETITIVE CONTEXT: GENERICS
Generic remedies dominate category sales
Figure 11: Total U.S. sales of pharmaceuticals, 2005-09
COMPETITIVE CONTEXT—LACK OF HEALTH INSURANCE
Uninsured, underinsured, and restrictive insurance hurt category sales
Figure 12: Prescription drug coverage limitations, by household income, November-December 2010
COMPETITIVE CONTEXT: COMPLEMENTARY AND ALTERNATIVE MEDICINE
A desire for natural healing
Figure 13: Attitudes toward medications, by gender, November-December 2010
COMPETITIVE CONTEXT—OTC
Turning to OTCs that are more affordable and efficacious
Figure 14: FDMx private label sales, by segment, 2009 and 2010
THE ADVERTISING LANDSCAPE
Key points
The challenges of marketing pharmaceuticals
Figure 15: Number of warning letters sent, by the FDA to pharmaceutical companies, 2006 to 2010
The challenge of online marketing
Women more interested in the fine print
Figure 16: Response to prescription drug advertising, by gender, November-December 2010
Older respondents more concerned about side effects
Figure 17: Response to prescription drug advertising, by age, November-December 2010
Parents more attentive to pharmaceutical advertising
Figure 18: Response to prescription drug advertising, by children in household, November-December 2010
BRANDS AND THE ADVERTISING LANDSCAPE
Overview
Figure 19: Ad spends for top six pharmaceuticals, 2008-09
Overview of the brand landscape
Brand analysis—Advair Diskus
Figure 20: Brand analysis of Advair Diskus, 2011
Online initiatives
TV presence
Figure 21: Advair Diskus, television ad, 2010
Print ad—Advair Diskus
Brand analysis—Spiriva
Figure 22: Brand analysis of Spiriva, 2011
TV presence
Figure 23: Spiriva, television ad, 2011
Online initiatives
Drive4copd initiatives
Brand analysis—Lipitor
Figure 24: Brand analysis of Lipitor, 2011
TV presence
Figure 25: Lipitor, television ad, 2010
Print ad—Lipitor
Figure 26: Lipitor, print ad, 2010
INSURANCE COVERAGE
Key points
Almost nine in 10 have insurance
Figure 27: Insurance coverage, by gender, November-December 2010
Age affects type of insurance
Figure 28: Insurance coverage, by age, November-December 2010
More affluent more likely to be insured
Figure 29: Insurance coverage, by household income, November-December 2010
PRESCRIPTION DRUG COVERAGE AND LIMITATIONS
Key points
Prescription drug coverage and limitations
Figure 30: Prescription drug coverage, by gender, November-December 2010
Figure 31: Prescription drug coverage limitations, by gender, November-December 2010
45-64s most likely to have prescription drug coverage
Figure 32: Prescription drug coverage, by age, November-December 2010
Affluence correlated with prescription drug coverage
Figure 33: Prescription drug coverage, by household income, November-December 2010
Figure 34: Prescription drug coverage limitations, by household income, November-December 2010
AILMENTS
Key points
Overview
Men and women have different ailments
Figure 35: Incidence of ailments, by gender, November-December, 2010
Different ailments strike different demographics
Figure 36: Incidence of ailments, by age, November-December, 2010
The relationship between income and ailments
Figure 37: Incidence of ailments, by household income, November-December, 2010
AILMENT-SPECIFIC TREATMENT METHODS
Key points
Treating high blood pressure/cholesterol, acid reflux, and sexual dysfunction with prescriptions
Figure 38: Treatment methods, by physical ailment, November-December 2010
Using prescriptions and alternatives to treat mental ailments
Figure 39: Treatment methods, by mental ailment, November-December 2010
ATTITUDES TOWARD MEDICATION—RX, OTC AND ALTERNATIVE
Key points
Most have favorable impressions of pharmaceuticals
Figure 40: Attitudes toward medications, by gender, November-December 2010
Over-65s more likely to be concerned about side effects
Figure 41: Attitudes toward medications, by age, November-December 2010
Less affluent have more negative attitudes
Figure 42: Attitudes toward medications, by household income, November-December 2010
GENERIC REMEDIES
Key points
Older respondents leave drug decisions up to their doctors
Figure 43: Attitudes toward generic drugs, by age, November-December 2010
Impressions of generics
Figure 44: Attitudes toward generic drugs, by marital status, November-December 2010
RACE AND HISPANIC ORIGIN
Key points
Blacks have more health conditions
Figure 45: Incidence of ailments, by race/Hispanic origin, November-December, 2010
Hispanics have more restrictive insurance for drug purchase
Figure 46: Prescription drug coverage limitations, by race/hispanic origin, November-December 2010
Asians prefer alternatives
Figure 47: Attitudes toward medications, by race/Hispanic origin, November-December 2010
Blacks more likely to pay attention to drug ads
Figure 48: Response to prescription drug advertising, by race/Hispanic origin, November-December 2010
Blacks and Asians prefer branded drugs
Figure 49: Attitudes toward generic drugs, by race/Hispanic origin, November-December 2010
CUSTOM CONSUMER GROUPS
The importance of physicians among older consumers
Figure 50: Attitudes toward generic drugs, by gender and age, November-December 2010
Men with children attentive to advertising
Figure 51: Response to prescription drug advertising, by gender and presence of children, November-December 2010
Affluent women attentive to advertising
Figure 52: Response to prescription drug advertising, by gender and income, November-December 2010
Moms more cautious toward pharmaceuticals
Figure 53: Attitudes toward medications, by gender and children, November-December 2010
APPENDIX—OTHER USEFUL CONSUMER TABLES
Single and separated more likely to use Medicare and Medicaid
Figure 54: Insurance coverage, by marital status, November-December 2010
Parents more likely to have drug coverage limitations
Figure 55: Prescription drug coverage limitations, by children in household, November-December 2010
45-64s with plans that favor generics
Figure 56: Prescription drug coverage limitations, by age, November-December 2010
Unmarried respondents resistant to pharmaceuticals
Figure 57: Attitudes toward medications, by marital status, November-December 2010
Role of children on attitudes toward medications
Figure 58: Attitudes toward medications, by children in household, November-December 2010
Those with household incomes of $75-99.9K more attentive to advertising
Figure 59: Response to prescription drug advertising, by income, November-December 2010
Retired and with positive opinions toward generics
Figure 60: Attitudes toward generic drugs, by employment status, November-December 2010
APPENDIX—TRADE ASSOCIATIONS