Cough, Cold and Sore Throat Remedies - US - May 2009

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Market grows despite recession
Drug stores top retailers due to proliferation of pharmacies
Diverse drivers fuel the market
Johnson & Johnson/McNeil lead but Mucinex grows; private label keeps pace
Getting sick
Treatment and effectiveness
Selecting medicine
Race & Hispanic origin
INSIGHTS AND OPPORTUNITIES
Marketing OTC remedies in a recession
The pitch: Safe spending
The support: Money-back guarantee, less is more, protect now—save later
Putting a natural spin on remedies
The pitch: Nature knows best
The support: Herb – and vitamin-infused remedies
Making selecting medicine easier
The pitch
The support
INSPIRE INSIGHTS
 TREND: DESEASONALIZATION
To everything there is a season?
Treating the year-round affliction
MARKET SIZE AND FORECAST
Key points
Incidence of cold/flu, population factors, low health insurance rates drive sales into the future
Ups and downs of FDA regulations and the tightening economy
Sales and forecast of cough/cold/sore throat remedies
Figure 1: FDMx sales of cough, cold, & throat remedies, at current prices, 2003-13
Figure 2: FDMx sales of cough, cold, & throat remedies, at inflation-adjusted prices, 2003-13
Walmart sales
COMPETITIVE CONTEXT
Homeopathic/natural remedies compete with OTC medicines
Many still use home remedies rather than OTC treatments
SEGMENT PERFORMANCE
Key points
Cold/allergy/sinus tablets comprise more than half of the market
Sales of cold/allergy/sinus/sore throat remedies, by segment
Figure 3: FDMx sales of cough, cold, & throat remedies, segmented by type, 2006 & 2008
SEGMENT PERFORMANCE—COLD/ALLERGY/SINUS TABLETS
Key points
Tablets signify convenience, benefit from Rx switch
Sales and forecast of cold/allergy/sinus tablets
Figure 4: FDMx sales of cold/allergy/sinus tablets, at current prices, 2003-13
SEGMENT PERFORMANCE—COLD/ALLERGY/SINUS LIQUIDS
Key points
Liquids hurt by recalls, FDA restrictions
Sales and forecast of cold/allergy/sinus liquids
Figure 5: FDMx sales s of cold/allergy/sinus liquids, at current prices, 2003-13
SEGMENT PERFORMANCE—NASAL PRODUCTS
Key points
Nasal products represent safe alternative to pediatric liquids
Sales and forecast of nasal products
Figure 6: FDMx sales of nasal products, at current prices, 2003-13
SEGMENT PERFORMANCE—COUGH DROPS
Key points
Cough drops also represent convenience and utility
Non-medicated positioning and single-symptom relief attractive
Sales and forecast of cough drops
Figure 7: FDMx sales of cough drops, at current prices, 2003-13
SEGMENT PERFORMANCE—COUGH SYRUP/SORE THROAT LIQUIDS
Key points
Syrups/sore throat liquids face similar challenges to cold liquids
Sales and forecast of cough syrup/sore throat liquids
Figure 8: FDMx sales of cough syrup/sore throat liquids, at current prices, 2003-13
RETAIL CHANNELS
Key points
Drug stores most equated with healthcare
Sales of cough, cold, & throat remedies, by channel
Figure 9: FDMx sales of cough, cold, & throat remedies, by channel, 2006 and 2008
RETAIL CHANNELS—DRUG STORES
Key points
Pharmacies mean bigger OTC business
Store brands give drug channels added advantage
Drug store sales of cough, cold and throat remedies
Figure 10: U.S. drug store sales of cough, cold, & throat remedies, at current prices, 2003-08
RETAIL CHANNELS—OTHER: SUPERMARKETS & MASS
Key points
Other channels without pharmacies have tough time competing
Other channel sales of cold/allergy/sinus remedies
Figure 11: U.S. other* channel sales of cough, cold, & throat remedies, at current prices, 2003-08
MARKET DRIVERS
Incidence of cold and flu
Figure 12: U.S. seasonal flu severity, 2001-08
Child, female, and elderly population growth means more sufferers
Figure 13: Population, by age, 2004-14
Figure 14: Female population, by age, 2004-14
Self-diagnosis/treatment trend continues to aid OTC sales
Outcome
Figure 15: Treating a cough/cold/sore throat/flu, February 2009
Growing Hispanic population spells opportunity for OTC remedy marketers
Figure 16: Cough/cold/sore throat and related conditions experienced in past 12 months, by race/Hispanic origin, February 2009
Bottom line
Figure 17: Population, by race and Hispanic origin, 2004-14
LEADING COMPANIES
Key points
Johnson & Johnson/McNeil continues to lead
Private label benefits from tough economy
Manufacturer sales of cough, cold, & throat remedies
Figure 18: Manufacturer FDMx sales of cough, cold, & throat remedies in the U.S., 2008 and 2009
BRAND SHARE—COLD/ALLERGY/SINUS TABLETS
Key points
Tylenol and Sudafed drop as Mucinex increases share
Private label will stiffen competition in the future
Manufacturer and brand sales of cold/allergy/sinus tablets
Figure 19: Selected brand FDMx sales and market share of cold/allergy/sinus tablets, 2008-09
BRAND SHARE—COLD/ALLERGY/SINUS LIQUIDS
Key points
Most leading cold liquids drop, while private label surges
Manufacturer and brand sales of cold/allergy/sinus liquids
Figure 20: Selected brand FDMx sales and market share of cold/allergy/sinus liquids, 2008-09
BRAND SHARE—NASAL SPRAY/DROPS/INHALER
Key point
NeilMed outpaces most medicated sprays
Manufacturer and brand sales of nasal spray/drops/inhaler
Figure 21: Selected brand FDMx sales and market share of nasal spray/drops/inhaler, 2008-09
BRAND SHARE—COUGH DROPS
Key points
Halls leads with brand extensions, but sales fluctuate
Ricola leverages herbal angle
Manufacturer and brand sales of cough drops
Figure 22: Selected brand FDMx sales and market share of cough drops, 2008-09
BRAND SHARE—COUGH SYRUP/SORE THROAT LIQUIDS
Key points
Wyeth and Adams vie for top position, P&G sees strength in Vicks Custom Care
Manufacturer and brand sales of cough syrup/sore throat liquids
Figure 23: Selected brand FDMx sales and market share of cough syrup/sore throat liquids, 2008-09
NATURAL CHANNEL/SPINS
Natural channel sales of cold and flu remedies
Figure 24: Natural product supermarket retail sales of cold and flu remedies, at current and inflation-adjusted prices, 2007-09
Implications
Natural channel sales by segment
Figure 25: Natural product supermarket retail sales of cold and flu remedies by segment, 2007-09
BRAND QUALITIES
Cough drops vie for originality
Store brands leverage value as household budgets tighten
Demand for natural/alternative ingredients spurs “natural” positioning bids
Symptom-specific comes to the fore with Vicks
INNOVATION AND INNOVATORS
Natural/homeopathic/herbal remedies
Figure 26: Claim trends in decongestive, cough, cold & flu relief launches, 2003-08
Non-natural products also making use of natural positioning:
Kids’ remedies
ADVERTISING AND PROMOTION
Tylenol
Building goodwill
Web and TV marketing
Figure 27: J&J Tylenol Cold Multi-Symptom Rapid Release, 2008
Sudafed
Figure 28: J&J Sudafed, 2008
Mucinex
Figure 29: Adams Respiratory Therapeutics Mucinex DM, 2008
Vicks
Figure 30: Procter & Gamble Vicks Formula 44 Custom Care, 2008
Halls
Figure 31: Cadbury Schweppes Halls Naturals, 2008
GETTING SICK
Key points
Incidence of cough, cold, sore throat, and related conditions
Figure 32: Cough/cold/sore throat and related conditions experienced in past 12 months, by gender and age, February 2009
Figure 33: Cough/cold/sore throat and related conditions experienced in past 12 months, by presence of children in household, February 2009
Frequency of suffering in past 12 months
Figure 34: Number of cold/flu/sinus conditions experienced in past 12 months, by gender and age, July 2007-September 2008
TREATMENT
Key points
Treatment methods
Figure 35: Treating a cough/cold/sore throat/flu, February 2009
Women tend towards multi-remedy approach; older adults, vitamins
Figure 36: Treating a cough or cold, by gender and age, February 2009
Figure 37: Treating a sore throat or flu, by gender and age, February 2009
OTC remedy use higher among women, older respondents need convincing
Figure 38: Treating cough/cold/sore throat/flu with OTC remedies, by gender and age, February 2009
Figure 39: Keeping OTC remedies on hand, by gender and age, February 2009
TREATMENT TYPES
Key points
Types and kinds of cough syrup and sore throat products used
Figure 40: Types of cough syrup and sore throat products used, by gender and age July 2007-September 2008
Frequency of use by ailment
Figure 41: Frequency of use of cold/allergy/sinus remedies, by gender and age, July 2007-September 2008
Figure 42: Number of times during the day cough syrup and sore throat products are used, by gender and age, July 2007-September 2008
Cold/allergy/sinus remedy formulas used
Figure 43: Cold/allergy/sinus remedy formula used, by gender and age, July 2007-September 2008
EFFECTIVENESS OF COUGH/COLD MEDICINE
Key points
Attitudes about the efficacy of remedies
Figure 44: Effectiveness of cold/cough medicine, February 2009
SELECTING MEDICINE
Key points
Important characteristics when selecting cold/cough medicine
Figure 45: Important characteristics when selecting cold/cough medicine, by gender, February 2009
Seeking guidance
Figure 46: Research and input in selecting cough/cold/sore throat/flu remedies, by gender, February 2009
Figure 47: Research and input in selecting cough/cold/sore throat/flu remedies, by age, February 2009
SAFETY CONCERNS
Key point
Concerns about medicine safety
Figure 48: Concerns about medicine safety, by gender, February 2009
HOMEOPATHIC AND NATURAL/ALTERNATIVE REMEDIES
Key points
Use of homeopathic remedies
Figure 49: Homeopathic remedies for cough/cold/sore throat/flu, by gender, February 2009
Figure 50: Homeopathic remedies for cough/cold/sore throat/flu, by age, February 2009
RACE AND HISPANIC ORIGIN
Key points
Treatment among ethnicities
Figure 51: Treating a cough/cold/sore throat/flu, by race & Hispanic origin, February 2009
Figure 52: Treating cough/cold/sore throat/flu with OTC remedies, by race & Hispanic origin, February 2009
Figure 53: Ailments for which cold/allergy/sinus remedies were used in the past 12 months, by race & Hispanic origin, July 2007-September 2008
Selecting medicine among ethnicities
Figure 54: Research and input in selecting cough/cold/sore throat/flu remedies, by race & Hispanic origin, February 2009
Homeopathic remedies and ethnicities
Figure 55: Homeopathic remedies for cough/cold/sore throat/flu, by race & Hispanic origin, February 2009
CLUSTER ANALYSIS
Happy and (relatively) healthy
Opportunity
Gentle and easy
Opportunity
Open-minded sufferers
Opportunity
Cluster characteristics
Figure 56: Cough, cold and throat clusters, February 2009
Figure 57: Cough/cold/sore throat and related conditions experienced in past 12 months, by cough, cold and throat clusters, February 2009
Figure 58: Treating cough/cold/sore throat/flu with OTC remedies, by cough, cold and throat cluster, February 2009
Figure 59: Important characteristics when selecting cold/cough medicine, by cough, cold and throat cluster, February 2009
Figure 60: Research and input in selecting cough/cold/sore throat/flu remedies, by cough, cold and throat cluster, February 2009
Figure 61: Attitudes towards and concerns about medicine, by cough, cold and throat cluster, February 2009
Cluster demographics
Figure 62: Cough, cold and throat clusters by gender, February 2009
Figure 63: Cough, cold and throat clusters by age, February 2009
Figure 64: Cough, cold and throat clusters by HH income, February 2009
Figure 65: Cough, cold and throat clusters by race/hispanic origin, February 2009
Methodology
CUSTOM CONSUMER GROUPS
Key points
Moms represent key opportunity with right marketing mix
Moms prefer OTC, home remedies over doctor visits
Figure 66: Treating a cough/cold/sore throat/flu among moms vs. dads, February 2009
Multi-symptom products may best suit moms
Figure 67: Treating cough/cold/sore throat/flu with OTC remedies among moms vs. dads, February 2009
Moms still require more from their remedies
Figure 68: Effectiveness of cold/cough medicine among moms vs. dads, February 2009
Moms keep remedies on hand more than dads
Figure 69: Keeping OTC remedies on hand among moms vs. dads, February 2009
IRI/BUILDERS—KEY HOUSEHOLD PURCHASE MEASURES
 NASAL SPRAY/DROPS/INHALER
Brand map
Figure 70: Brand map, selected brands of nasal spray/drops/inhaler, by household penetration, 2008
Brand leader characteristics
Key purchase measures
Figure 71: Key purchase measures for the top brands of nasal spray/drops/inhaler, by household penetration, 2008
 COUGH/SORE THROAT DROP
Brand map
Figure 72: Brand map, selected brands of cough/sore throat drop, by household penetration, 2008
Brand leader characteristics
Key purchase measures
Figure 73: Key purchase measures for the top brands of cough/sore throat drop, by household penetration, 2008
 COUGH SYRUP
Brand map
Figure 74: Brand map, selected brands of cough syrup, by household penetration, 2008
Brand leader characteristics
Key purchase measures
Figure 75: Key purchase measures for the top brands of cough syrup, by household penetration, 2008
APPENDIX: OTHER USEFUL CONSUMER TABLES
The impact of children and household size on the market
Figure 76: Number of cough/cold/sore throat and related conditions experienced in past 12 months, by presence of children and household size, July 2007-September 2008
Figure 77: Keeping OTC remedies on hand, by presence of children and household size, February 2009
Figure 78: Ailments for which cold/allergy/sinus remedies were used in the past 12 months, by presence of children and household size, July 2007-September 2008
Figure 79: Preferred types of cough syrup and sore throat products, by presence of children and household size, July 2007-September 2008
Figure 80: Use of cough syrup, sore throat drops, and cold/allergy/sinus remedies, by presence of children and household size, July 2007-September 2008
Figure 81: Important characteristics when selecting cold/cough medicine, by presence of children and household size, February 2009
Figure 82: Research and input in selecting cough/cold/sore throat/flu remedies, presence of children and household size, February 2009
Another look at remedy usage
Figure 83: Use of cough syrup, sore throat drops, and cold/allergy/sinus remedies, by gender and age, July 2007-September 2008
Figure 84: Ailments for which cold/allergy/sinus remedies were used in the past 12 months, by gender and age July 2007-September 2008
Medicine selection and concerns
Figure 85: Important characteristics when selecting cold/cough medicine, by age, February 2009
Figure 86: Concerns about medicine safety, by age, February 2009
APPENDIX: IRI/BUILDERS PANEL DATA DEFINITIONS
IRI Consumer Network Metrics
APPENDIX: TRADE ASSOCIATIONS