OTC & Consumer Behaviour

8/2/2019 OTC & Consumer Behaviour

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OTC & Consumer BehaviorGroup-4

Surojit Saha


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The Nature of Consumer Behavior

y External Influences

y Internal Influences

y Self-Concept

y Situations

y Experiences and

acquisitions


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Why We Buy: Some Issues

y Questions academics relatively well: Whether, how,why?

y Questions academics answer less well:

How much? Which effect is stronger?

What if?


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Why We Buy Issues

y Conversion and interception rates

y The Transition Zone

y Thinking like a consumerwho is in the shopping

setting!y Anote on exam questions from the text: You need to

have read the book to be able to answer! (Theanswers are notobvious.)


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Marketing Strategy and Consumer Behavior

MARKETANALYSIS

MARKETINGSTRATEGY

MARKETSEGMENTATION

CONSUMERDECISION

PROCESSES

OUTCOMES


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IntroductionOTC DrugsOTC Drugs means drugs legally allowed to be sold Over The Counter, i.e.without the prescription of a Registered Medical Practitioner. In India,though the phrase has no legalrecognition, all the drugs that are not included in the list ofprescriptiondrugs are considered asnon-prescription drugs (or OTC drugs). Prescription Drugs are those thatfall under twoschedules of the Drug and Cosmetics Rules, 1945: Schedule H and Schedule

X. Drugs fallingunder Schedule G require the following mandatory text on the label:Caution: It is dangerous totake this preparation except under medical supervision and hence are notadvertised to the publicvoluntarily by the industry.

In India, the import, manufacture, distribution and sale of drugs andcosmetics are regulated bythe Drugs and CosmeticsAct (DCA) and its subordinate legislation, theDrugs and CosmeticsRules (DCR).


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The following OTC medicines advertising can be seen on TV in India:

DigestivesAntacidsAntiflatulents Cold rubs and analgesic balms/creams Vitamins/tonics/health supplements (especially herbals andAyurvedic-registered)

Medicated skin treatmentAnalgesic/cold tabletsAntiseptic creams/liquids Glucose powders Cough liquids Throat lozenges

Medicated dressing (band-aids) Baby gripe water.


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Market data on OTC medicinesIndia is currently ranked 11th in the globalOTC market in size, with an estimate that itwill reach

9th position within five years.(Source:NicholasHall & Company,India,DB62006)Currently the Indian OTC market (i.e. non-prescription advertised medicines) isestimated torepresent approximatelyRs.104 Billiongrowing at about 8-9% (Source :ORG-IMS)


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The changing consumer

The consumers are changing ,they are more informed, use moregadgets, lead a fast life.

Stressful workplace environment and fast changing technology putcontinuous pressure to adapt and adjust Changing lifestyle withsmaller living space, less exercise(sedentary jobs), taking junk food .

Consuming addictive products to stay awake on the job for longer

hours and eating on the run put more stress on the body which getexpressed in the form of psychosomatic disorders like frequentheadache, allergy, common cold, constipation, backache, acidity,chronic fatigue etc.

... which they are trying to manage with Over The Counter (OTC) drugs.


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en ranc secustomer of today feels more independent and self reliant and is hesitant to adopt theorthodoxmodel of expert prescription, monitored medication and supervision throughout thetreatment

period to manage common ailments. With increasing medico legal cases, Doctors arealso notready to take any risk and insist on detailed investigation to diagnose even a commonailment.This adds to the already existing high cost of following an orthodox model.Most of the OTC drugs are safe, effective, economical and since it is available with out a

prescription, the perceived value of OTC medication is higher compared to orthodoxmodel forcommon ailments.Self-administration of treatment with over-the-counter drugs relies on the patient'sjudgment,supplemented by the information on the label, for correct diagnosis of the disorder or

symptom.An incorrect diagnosis may lead to the use of an over-the-counter drug that has noefficacy intreating the actual condition present. In general, the dangers of misdiagnosis involveboth thepotential adverse effects of the drug when inappropriately used and the risks associatedwith lackof treatment for the actual cause of the symptoms.


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In the OTC drug marketing, the Customer and Consumer being the same, companieshave toimmediately address the information needs more effectively and on a continuousbasis. The

acceptability of OTC drugs will improve once the awareness level is enhanced. Whentheknowledge of the traditional medicine is rooted in the culture, the knowledge aboutallopathicOTC drugs has to be disseminated by manufacturing company and ensure drasticreduction in the

high information asymmetry existing today.The OTC drug offering is incomplete with out empowering the public on its rationaluse throughwell planed strategic marketing initiative revolving around the aliment, theknowledge todiagnose and manage the same. In this empowerment process which can be

considered as CSR,the objective should be prevention and holistic awareness creation leading to healthandwellbeing than just offering the minimum needed information to use ones products.Thus by educating public (consumer) on how to manage common ailments andfinally how to

prevent them, the pharma companies can achieve its real goal of health for all andimprove the


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The social benefit at a national level will be lesser work load on general practitioners,lessercrowding in primary health centers (PHCs), pharmacists who are more empowered toguide andcounsel patients and more confident public who are in a better position to take moreinformedchoice of the best available solution to treat their common ailments and prevent thefrequentoccurrence of the same. This will increase productivity at work and every one in societycanmake superior contribution towards nation building as it strives to be a developed one.


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Benefits and risks of switching from prescription only to OTC

Possible Benefits1.Increased access2.Decreased frequency of visits to physicians, leading to lower healthcarecosts3. Improved education of consumers4. Increased autonomy of patients5. Decreased cost to third party playersPossible risksInaccurate diagnosis2. Delay in obtaining needed therapy3. Use of suboptimal therapy4. Drug resistance5. Increased costs to patients6. Failure to follow label instructions (Adverse effects, Drug interactions)7. Perceived loss of control by physicians


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Prescription & OTC Drugs

Prescription drugs are available only by recommendation of an authorizedhealth professional, such as a physician.Nonprescription (over-the-counter, or OTC) drugs are available on requestand do not require approval by a health professional.Prescription and OTC drugs have been viewed differently by the public sine

the classifications were established by theDurham-HumphreyAmendmentof1951.In general, the public views OTC drugs as minimally effective and safeand prescription drugs as more potent and frequently dangerousHowever, these distinctions are not always accurate


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OTC Drugs Interesting Facts

Each year the U.S. spends over $14 billion on OTC drugsMore than 300,000 different OTC products are available on the marketOTC expenditures comprise 60% of the annual drug purchase in the U.S.An estimated 3 out of 4 people routinely self-medicate with these drugproducts


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Abuse of OTC products

OTC products generally have a greater

margin of safety thantheir prescription counterparts, but issuesof abuse need to be considered.Physical dependence

Psychological dependence


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OTC drugs and self-care

More than one-third of the time peopletreat their routine health problems with OTC medications to receive

symptomatic relief from theirailments.If done correctly, self-care with OTC

medications can providesignificant relief from minor, self-limitinghealth problems at minimal cost.


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Label information controlled by the FDA

OTCAntacids

Ingredients:12 fl. oz.

GOTCHA,

INC.

IndicationsDirections:Warnings:Precautions:Expirationdate:

Product name

Identity

Activeingredients

Quantity

Manufacturer

When to use

How to use

What towatch for

Possible druginteractions

When drugshould no

longer beused


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Types of OTC drugs

Internal analgesicsAnalgesicsSalicylates

Therapeutic considerationsAnalgesic actionsAnti-inflammatory effects

Antipyretic effectsSide effects

Cold, allergy and cough remediesDecongestantsAntitussivesExpectorants

Vitamin CSleep aidsMelatonin

StimulantsLook-alike and act-alike drugs


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Table 1-Everyday ailments for which people reporttreating themselves rather than seeking a consultationwith a doctor

Category % share

Traditional medicines 27.30

Cough and cold preparations 19.80

Vitamins and minerals 11.60

Analgesics 11.40

Medicated skin products 2.60

Other 27.30

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OTC & Consumer Behaviour