OTC Pediatrics - US - November 2010

SCOPE AND THEMES
What you need to know
Definition
Data Sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Market at a glance: extraordinary events drive fluctuation in sales
Recalls and flu drive fluctuation in children’s OTC remedy sales
Cautious parents set the tone
Four major segments account for the bulk of category sales
Natural, homeopathic, and herbal remedies an option for a few
Drug stores lead but don’t dominate pediatric OTC remedy sales
Johnson & Johnson’s leadership seriously threatened by series of recalls
Other companies have smaller presence, creating opportunity for retailers
Vitamins and supplements most active area for new products
Common ailments drive product purchase
General purpose pain relievers viewed as most effective, specialized remedies seen as less so
Safety remains key concern for parents
Professional and casual recommendations alike important in product selection
Consistent dosing instructions and functional attributes top list of interests
INSIGHTS AND OPPORTUNITIES
Retail remedies
Alternative strategy
INSPIRE INSIGHTS
Trend: Transparency
MARKET SIZE AND FORECAST
Key points
A series of unfortunate events impacts children’s OTC remedy sales
Future prospects unclear for category
Sales and forecast of OTC pediatrics
Figure 1: Total U.S. retail sales and forecast of OTC pediatrics, at current prices, 2005-15
Figure 2: Total U.S. retail sales and forecast of OTC pediatrics, at inflation-adjusted prices, 2005-15
Fan chart forecast
Figure 3: FDMx sales and fan chart forecast of OTC pediatrics, at current prices, 2005-15
MARKET DRIVERS
Key points
Recession may impact population growth of young children
Figure 4: U.S. population, by age of child, 2005-15
Incidence and severity of seasonal influenza
Figure 5: Seasonal influenza severity in the U.S., 2001-08
Rising childhood obesity rates boost use of OTC remedies and prescriptions
COMPETITIVE CONTEXT
Overview—cautious parents set the tone
Natural, homeopathic, and herbal remedies an option for a few
Figure 6: Attitudes towards homeopathic remedies for children, by age of parent, July 2010
Prescriptions increasingly in the mix, pointing to bigger health issues
SEGMENT PERFORMANCE
Key points
Four major segments, only minimal overlap
Smaller segments more specialized
Sales of OTC pediatric remedies, by segment
Figure 7: U.S. FDMx sales of OTC pediatrics, segmented by type, 2009 and 2010
SEGMENT PERFORMANCE—INTERNAL ANALGESICS
Key points
Extraordinary events behind fever reducer/pain reliever sales results
Segment remains a medicine chest essential
Sales and forecast of internal analgesics
Figure 8: U.S. sales and forecast of internal analgesics, at current prices, 2005-15
SEGMENT PERFORMANCE—VITAMINS
Key points
Multiple factors boost kids’ multivitamins
Specialization puts a premium on parent education
Sales and forecast of vitamins
Figure 9: U.S. sales and forecast of vitamins, at current prices, 2005-15
SEGMENT PERFORMANCE—BABY ELECTROLYTES
Key points
Dollar sales slip as private label gains
Sales and forecast of baby electrolytes
Figure 10: U.S. sales and forecast of baby electrolytes, at current prices, 2005-15
SEGMENT PERFORMANCE—COLD/ALLERGY/SINUS REMEDIES
Key points
Multiple headwinds hold back cold/allergy/sinus remedies
Future direction of segment in limbo pending FDA review
Sales and forecast of cold/allergy/sinus remedies
Figure 11: U.S. sales and forecast of cold/allergy/sinus remedies, at current prices, 2005-15
SEGMENT PERFORMANCE—GASTROINTESTINAL REMEDIES
Key points
New products help drive growth
Childhood obesity leads to increased incidence of serious GI conditions
Sales and forecast of gastrointestinal remedies
Figure 12: U.S. sales and forecast of gastrointestinal remedies, at current prices, 2005-15
SEGMENT PERFORMANCE—NASAL PRODUCTS
Key points
Nasal product sales flat since 2006
Sales and forecast of nasal products
Figure 13: U.S. sales and forecast of nasal products, at current prices, 2005-15
SEGMENT PERFORMANCE—COUGH AND SORE THROAT REMEDIES
Key points
Dosing novelty brings segment back to life
Sales and forecast of cough and sore throat remedies
Figure 14: U.S. sales and forecast of cough and sore throat remedies, at current prices, 2005-15
SEGMENT PERFORMANCE—MISCELLANEOUS HEALTH REMEDIES
Key points
Sales of specialized products continue to slide
Sales and forecast of miscellaneous health remedies
Figure 15: U.S. sales and forecast of miscellaneous health remedies, at current prices, 2005-15
RETAIL CHANNELS
Key points
Drug stores lead but don’t dominate pediatric OTC remedy sales
Demographics drive differences, point to opportunities
Sales of OTC pediatrics, by channel
Figure 16: FDMx retail sales of OTC pediatrics, by channel, 2009 and 2010
RETAIL CHANNELS—DRUG STORES
Key points
Drug chains emphasize healthcare expertise
Drug store sales of OTC pediatrics
Figure 17: U.S. drug store sales of OTC pediatrics, at current prices, 2005-10
RETAIL CHANNELS—OTHER FDMX OUTLETS
Key points
Other channels hold their own
Other FDMx channel sales of OTC pediatrics
Figure 18: U.S. other FDMx channel sales of OTC pediatrics, at current prices, 2005-10
LEADING COMPANIES
Key points
J&J’s leadership seriously threatened by series of recalls
Other companies have smaller presence, creating opportunity for retailers
Manufacturer sales of OTC pediatrics
Figure 19: Select manufacturer sales of OTC pediatrics in the U.S., 2009 and 2010
Figure 20: New healthcare launches with “for children” claim, private label and branded, 2004-10
BRAND SHARE—INTERNAL ANALGESICS
Key points
Recalls deal a devastating blow to Children’s Tylenol and Motrin
Private label fills the void
Opportunistic launch from Triaminic may capture share
Manufacturer and brand sales of internal analgesics
Figure 21: Select brand sales and market share of internal analgesics in the U.S., 2009 and 2010
BRAND SHARE—VITAMINS
Key points
Kids’ vitamin brands stress specialization
Manufacturer and brand sales of vitamins
Figure 22: Select brand sales and market share of vitamins in the U.S., 2009 and 2010
BRAND SHARE—BABY ELECTROLYTES
Key points
Segment leader Pedialyte continues to give way to private label
Manufacturer and brand sales of baby electrolytes
Figure 23: Select brand sales and market share of baby electrolytes in the U.S., 2009 and 2010
BRAND SHARE—COLD/ALLERGY/SINUS REMEDIES
Key points
Share data provide partial view of J&J recall impact
Private label gains
Manufacturer and brand sales of cold/allergy/sinus remedies
Figure 24: Select brand sales and market share of cold/allergy/sinus remedies in the U.S., 2009 and 2010
BRAND SHARE—GASTROINTESTINAL REMEDIES
Key points
Little overlap between leading brands
Manufacturer and brand sales of gastrointestinal remedies
Figure 25: Select brand sales and market share of gastrointestinal remedies in the U.S., 2009 and 2010
BRAND SHARE—NASAL PRODUCTS
Key points
Little Noses offers breadth of products and focus on nasal care
Manufacturer and brand sales of nasal products
Figure 26: Select brand sales and market share of nasal products in the U.S., 2009 and 2010
BRAND SHARE—COUGH AND SORE THROAT REMEDIES
Key point
Dosing novelty boosts declining segment
Manufacturer and brand sales of cough and sore throat remedies
Figure 27: Select brand sales and market share of cough and sore throat remedies in the U.S., 2009 and 2010
BRAND SHARE—MISCELLANEOUS HEALTH PRODUCTS
Key points
Segment contains variety of small, specialized products
Vicks Baby Rub by far the biggest seller
Manufacturer and brand sales of miscellaneous health products
Figure 28: Select brand sales and market share of miscellaneous health products in the U.S., 2009 and 2010
INNOVATION AND INNOVATORS
Overview
Figure 29: New healthcare launches with “for children” claim, by product type, 2004-10
Vitamin launches drive sales
Easier, tastier, more convenient dosing
Alternative treatments
BRANDS AND MARKETING STRATEGIES
Flintstones vitamins expand beyond basic nutrition
Figure 30: Flintstones Gummies with choline television ad, 2010
Trust in Triaminic
Figure 31: Triaminic Strips television ad, 2009
Advil shows competitive nature of category
Figure 32: Children’s Advil “Fact” television ad, 2010
OTC PEDIATRIC PRODUCT PURCHASE AND USAGE
Key points
Medicines for coughs, colds, allergies and flu most widely purchased
Figure 33: OTC pediatrics purchased in past 12 months, by gender of parent, July 2010
Figure 34: Teething gel use among parents of children aged 2 and under, July 2010
Tylenol and Motrin most widely used fever reducers/pain relievers
Figure 35: Brands of children’s fever/pain relief medicines used, by household income, April 2009-June 2010
Pre-recall, Children’s Tylenol tops children’s cough and cold remedies
Figure 36: Brands of children’s cough/cold products, by household income, April 2009-June 2010
PRODUCT EFFECTIVENESS AND CONCERNS
Key points
Fever reducers/pain relievers earn high marks on efficacy
Specialized remedies rated lower, but still positive
Figure 37: Effectiveness of OTC children’s medications, July 2010
Parents hold considerable safety concerns regarding kids’ medicines
Figure 38: Concerns about OTC pediatrics, by gender of parent, July 2010
Figure 39: Concerns about OTC pediatrics, by age of parent, July 2010
PURCHASE CONSIDERATIONS
Key points
Doctor’s recommendation key in choosing children’s OTC remedies
Figure 40: Sources consult for OTC pediatric purchases, by gender of parent, July 2010
Younger parents seek information and recommendations
Figure 41: Sources consult for OTC pediatric purchases, by age of parent, July 2010
Desire for clearer, more consistent dosing instructions
Figure 42: Concerns and habits regarding OTC pediatric purchases, by gender of parent, July 2010
Figure 43: Concerns and habits regarding OTC pediatric purchases, by age of parent, July 2010
Functional attributes top the list for product selection
Figure 44: Importance factors when selecting OTC pediatrics, by gender of parent, July 2010
Figure 45: Importance factors when selecting OTC pediatrics, by age of parent, July 2010
CLUSTER ANALYSIS
Concerned Multi-Medicators
Characteristics
Opportunity
Respiratory Reviewers
Characteristics
Opportunity
Unconcerned Analgesic Users
Characteristics
Characteristics
Characteristic tables
Figure 46: Children’s OTC medicine clusters, July 2010
Figure 47: OTC pediatrics purchased in past 12 months, by children’s OTC medicine clusters, July 2010
Figure 48: Importance factors when selecting OTC pediatrics, by children’s OTC medicine clusters, July 2010
Figure 49: Sources consult for OTC pediatric purchases, by children’s OTC medicine clusters, July 2010
Figure 50: Concerns about OTC pediatrics, by children’s OTC medicine clusters, July 2010
Figure 51: Attitudes towards homeopathic remedies for children, by children’s OTC medicine clusters, July 2010
Demographic tables
Figure 52: Children’s OTC medicine clusters, by parent’s gender, July 2010
Figure 53: Children’s OTC medicine clusters, by parent’s age, July 2010
Figure 54: Children’s OTC medicine clusters, by household income, July 2010
Figure 55: Children’s OTC medicine clusters, by marital status, July 2010
Figure 56: Children’s OTC medicine clusters, by employment, July 2010
Cluster methodology
CUSTOM CONSUMER GROUPS
Brand of adult pain reliever used by parent
Figure 57: OTC pediatrics purchased in past 12 months, by OTC pain medication used by parent, July 2010
Figure 58: Sources consult for OTC pediatric purchases, by OTC pain medication used, by parent, July 2010
Age of child in household
Figure 59: OTC pediatrics purchased in past 12 months, by age of child in HH, July 2010
Figure 60: Concerns and habits regarding OTC pediatric purchases, by age of child in HH, July 2010
Figure 61: Sources consult for OTC pediatric purchases, by age of child in HH, July 2010
APPENDIX—OTHER USEFUL CONSUMER TABLES
Figure 62: OTC pediatrics purchased in past 12 months, by age of parent, July 2010
Figure 63: OTC pediatrics purchased in past 12 months, by household income, July 2010
Figure 64: Concerns about OTC pediatrics, by household income, July 2010
Figure 65: Sources consult for OTC pediatric purchases, by household income, July 2010
Figure 66: Importance factors when selecting OTC pediatrics, by household income, July 2010
APPENDIX—TRADE ASSOCIATIONS