Overview ofOTC marketSANJEET KUMAR
Flow of presentation•   What is OTC drug•   Overview of OTC drug market•   Indian OTC market•   History of aspirin•   Intr...
OTC drugs• Over-the-counter (OTC) drugs are  medicines that may be sold without a  prescription,    in     contrast   to  ...
Different categories under OTC  1. Rubs/ Balm - Moov, Iodex, Himani Fast Relief, Emami     Mentho Plus, Amrujanjan Joint A...
Demand for OTC drugs• Change in consumers attitude,  increase in awareness levels, and  easy accessibility of medicines• R...
Global scenario of OTC• In    2009,   the     global   OTC  pharmaceutical market generated  revenues of more than USD 60 ...
Indian scenario• Currently India ranks 11th in the  global OTC market size• It is expected that it will reach 9th  positio...
Cont...• India‘s OTC drug sale has grown  around 10%in the last two year,  leaving the U.S. and China much  behind, where ...
Cont...• The OTC market is growing  significantly from 2010 onwards• There is growing demand for OTC  products in homeopat...
Major players•   GlaxoSmithKline•   Novartis AG•   Johnson &Johnson•   Sun Pharma•   Cipla•   Dabur•   Dr. Reddy Laborator...
Top 10 global OTC brandsSl. No   Leading brands(Sales      2008      2009         Growth         $Million )Global         ...
Top 10 Indian OTC brandsSl no.   Leading                     2008             2009     Growth         brands(sales $      ...
Growth Rates of OTC marketsCOUNTRIES          2009             2010USA                2.60%            3.20%China         ...
Growth rates of different OTC categories Sales in US$ mn             2009       09/08/     CAGR Yr    CAGR Yr             ...
History of Aspirin• Introduced in 1899 in market by BAYER• As pain-killing, fever-reducing, anti-  inflammatory drug• Aspi...
Introduction of Disprin• Ordinary solid aspirin causes stomach  irritation in some people• In early 1940s,reckitt & Colman...
Cont…• Disprin was successfully launched in  1948• The brand name Dispirin was  chosen         to link the active  ingredi...
Cont…• Early advertising slogan was: ―Take  an aspirin -- I mean a Dispirin‖• It became international brand in the  1950s ...
Recent development• Initially it has aspirin only as an active  ingredient• But now, it contains other active  ingredients...
Packaging evolution• First packaged in distinctive glass  with cotton wool inserted in the top Dispirin 1948            Di...
Cont..• Reckitt & colman soon developed the  first aluminium foil packaging• And it established its identity in these  ―mo...
Cont…• Its long history of fast and effective  pain relief should ensure its  continued success into the future• And somet...
Uses of Dispirin•   Pain killing•   anti-inflammatory•   Fever-reducing•   Cold n flu
Revital• Revital a well known drug from  Ranbaxy laboratories• It contains vitamins and minerals• Initially it was prescri...
How it switched….● Ranbaxy used a well through out  television creative to target the  consumer directly through advertisi...
Advertising strategies     • Pre use scenario and1.     post use benefit     • Make most of his life2.     • Testimonial o...
Increase in sales of Revital afterswitching to OTC channels              CAGR  90          20%  80  70  60  50  40  30  20...
Crocin• Indian analgesic and anti-pyretic market  is a huge one, growing at 9.50%• This market actually harbours 62  natio...
Product line• Crocin pain relief was launched in  2003• It contains 650mg paracetamol +50  mg of caffeine• In 2007,it ente...
Cont…• Crocin cold n‘  flu    currently  has a market  share          of  4.20% and is  the      fastest  growing brand  w...
Cont…..• The brand also came out with  variants like Crocin Quik that boasted  of faster relief• Crocin also came out with...
History• In India, more than 40 year  back, crocin was introduced in the  market by Duphar Interfran limited  now DIL Limi...
Cont…• And Crocin become an  OTC drug• Smithkline extended its  presence        to   the  analgesic segment• Kapil dev was...
Product• It contains paracetamol          i.e.; it  delivers both- an analgesics and  antipyretics• Crocin is also deliver...
Recent development• GSK was leaping up the sales chart• GSK     planned      several    brand  extension• The rapid mutati...
Cont…• This led GSK to launch Crocin Cold n‘  flu• The new drug offered relief from  multiple symptoms of cold such as  bl...
Promotion• OTC      drugs     are   aggressively  advertised with each brand seeking  to gain market share• After the acqu...
Cont….• GSK used this as a  promotional strategy by  positioning Crocin on the  safety and easy on the  stomach• By the en...
Cont…• The new drugs were perceived to be very  effective and offered consumers a kind of  safe remedy since they all came...
Cont…• GSK developed ‗slice of life‘  advertising showing real people in  real situation for real reasons  reaching out fo...
Brand values• Crocin is a heritage brand, steeped in  pharmacological history• Over the decades, it has brought  relief an...
Conti…….• It has also been mother‘s first line of  defence• As infants, the single drop of syrup  gives quick relief to ch...
Conclusion• It is a very fast growing segment• Due to awareness of people, OTC  market is growing continuously• Pharmaceut...
Thank you
Overview of otc market
Overview of otc market
Overview of otc market
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  • plz if you can share your this presentation
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  • plz mail it to me vishalvaswani14179@sdmimd.ac.in
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  • I guess Aspirin didn't have big markets in it's early times, although it was the number one, since the drug was mainly available in Europe.
    Does Bayer still manufacture Aspirin itself or use subcontactors.
    Patent is long gone.
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  • Revital (the health supplement drug) from Ranbaxy Sensodyne (a range of oral care products for sensitive teeth) from GlaxoSmithKline .
  • Overview of otc market

    1. 1. Overview ofOTC marketSANJEET KUMAR
    2. 2. Flow of presentation• What is OTC drug• Overview of OTC drug market• Indian OTC market• History of aspirin• Introduction of disprin• Revital- Rx to OTC• Crocin• Conclusion
    3. 3. OTC drugs• Over-the-counter (OTC) drugs are medicines that may be sold without a prescription, in contrast to prescription drugs• In 2005 the Indian OTC segment was Rs 4500 crore• It could be considered as Rest 17000 crores if cosmeceuticals & nutraceuticals are also included
    4. 4. Different categories under OTC 1. Rubs/ Balm - Moov, Iodex, Himani Fast Relief, Emami Mentho Plus, Amrujanjan Joint Ache Cream 2. Analgesic / Cold Tablet - Dcold, Stopache, Crocin, Disprin 3. Digestives - Eno, Hajmola, Pudin Hara, Dabur Hingoli 4. Medicated Skin Treatment - Itch Guard, Krack, Ringguard, Clearasil 5. Cough Lozenges - Strepsils, Halls 6. Vitamin/ Tonic/ Heath Suppliments - Horlicks, Complan, Boost, Chawanprash - Dabur, Sona Chandi, Himalaya, Calcium Sandoz, Jeevanprash 7. Antiseptic Cream/ Liquids - Borosoft, Boroplus, Dettol
    5. 5. Demand for OTC drugs• Change in consumers attitude, increase in awareness levels, and easy accessibility of medicines• Revital from Ranbaxy• Sensodyne from GlaxoSmithKline• Both of above turns from prescription drugs to OTC products.
    6. 6. Global scenario of OTC• In 2009, the global OTC pharmaceutical market generated revenues of more than USD 60 bn• Total OTC revenues will exceed USD 70 bn by 2015• The OTC pharmaceutical market is growing significantly from 2010 onwards
    7. 7. Indian scenario• Currently India ranks 11th in the global OTC market size• It is expected that it will reach 9th position within five years• Currently the Indian OTC market (i.e. advertised non-prescription medicines)is estimated to represent approximately USD 1793 million with annual growth rate of 23%
    8. 8. Cont...• India‘s OTC drug sale has grown around 10%in the last two year, leaving the U.S. and China much behind, where OTC drug sale is estimated at 4% to 5% respectively• The share of sales of OTC traditional drugs in India has gone up to 30%• The maximum number of OTC drugs sold are from the branded companies• The shares of branded companies are estimated to 8%
    9. 9. Cont...• The OTC market is growing significantly from 2010 onwards• There is growing demand for OTC products in homeopathy• The homeopathy drugs market in India was put at Rs 5 bn in 2010 & is expected to grow to Rs 8 bn by 2012• The total OTC revenues will exceed USD 70 bn by 2015
    10. 10. Major players• GlaxoSmithKline• Novartis AG• Johnson &Johnson• Sun Pharma• Cipla• Dabur• Dr. Reddy Laboratories
    11. 11. Top 10 global OTC brandsSl. No Leading brands(Sales 2008 2009 Growth $Million )Global 90965. 95193.2 2009/08 1 4.61 Tylenol 1449.9 1452.5 0.22 Vicks 871.5 880.9 1.13 Halls 792.3 830.6 4.84 Lipovitan 854.5 812.9 -4.95 Aspirin 796.1 798.5 0.36 Advil 716.3 722.1 0.87 Centrum 695.2 693 -0.38 Nature Made 577 639.1 10.89 Nicorette 525.8 525 -0.210 Claritin 514 488.1 -5 Source: Nicholas Hall’s DB6 2010
    12. 12. Top 10 Indian OTC brandsSl no. Leading 2008 2009 Growth brands(sales $ 1638.9 1813.4 2009/08 Million) India 10.71 Dabur 75.8 84.5 11.5 Chyawanprash2 Vicks 72.4 81.9 13.13 Boroplus 29 32.9 13.44 Revital 25.4 30.7 20.75 Zandu Balm 28.4 30.5 7.66 Dettol 23.7 26.4 11.27 Liv. 52 25 25.8 3.48 Becosules 22.7 24.9 10.19 Hajmola 20.2 21.2 4.910 Iodex 17.6 20.7 18.2 Source: Nicholas Hall’s DB6 2010
    13. 13. Growth Rates of OTC marketsCOUNTRIES 2009 2010USA 2.60% 3.20%China 9.70% 10.00%Japan -0.60% 0.10%Germany -0.30% 0.10%France 2.70% 1.00%Brazil 11.30% 10.00%Italy 2.8% 1.70%Russia 23.50% 15.00%UK 2.20% 1.00%Canada 5.80% 4.00% SOURCE :Nicholas Hall’s DB6 2010
    14. 14. Growth rates of different OTC categories Sales in US$ mn 2009 09/08/ CAGR Yr CAGR Yr 10 14/09 19/14 Major categories- India 1813.4 10.7 10.2 10.8 Vitamins, minerals & 634.5 8.8 9 10.2 supplements Gastrointestinals 332.6 10.4 10.3 10.7 Cough, Cold & Allergy 318.1 7.8 9.7 9.9 Analgesics 258.7 15.8 10.3 10.6 Dermatologicals 236.5 11.3 11.9 12.7 Lifestyle OTCs 33.2 38.9 20.8 13.6 Source: Nicholas Hall’s DB6 2010
    15. 15. History of Aspirin• Introduced in 1899 in market by BAYER• As pain-killing, fever-reducing, anti- inflammatory drug• Aspirin rapidly became the world best biggest selling brand• As such it was virtually unchallenged for almost a half century until after the second world war
    16. 16. Introduction of Disprin• Ordinary solid aspirin causes stomach irritation in some people• In early 1940s,reckitt & Colman began developing a soluble aspirin product for relief of pain, fever and inflammation, which caused much less irritation than traditional one• But becomes delayed due to second world war
    17. 17. Cont…• Disprin was successfully launched in 1948• The brand name Dispirin was chosen to link the active ingredient ‗aspirin‘ with its dissolving nature• And quickly become popular with medical profession
    18. 18. Cont…• Early advertising slogan was: ―Take an aspirin -- I mean a Dispirin‖• It became international brand in the 1950s across globe including S. Africa, Australia and New Zealand• It is now available in over 70 countries and has been synonyms with analgesia for over half a century
    19. 19. Recent development• Initially it has aspirin only as an active ingredient• But now, it contains other active ingredients such as paracetamol and ibuprofen• In some countries, dispirin is already used for treating symptoms of cold and swine flu• The recent launch of dispirin cold + flu in some countries for cold n flu
    20. 20. Packaging evolution• First packaged in distinctive glass with cotton wool inserted in the top Dispirin 1948 Dispirin 2002
    21. 21. Cont..• Reckitt & colman soon developed the first aluminium foil packaging• And it established its identity in these ―modern‖ foil strips which were more convenient portable and safer than glass bottle• The fresh, modern design in bright cobalt blue confirms that Dispirin‘s reliable formula is still relevant for todays hectic‘s lifestyle
    22. 22. Cont…• Its long history of fast and effective pain relief should ensure its continued success into the future• And something haven‘t changed over the year• The first label was round blue and carried the Dispirin name and sword symbol, just as it does today
    23. 23. Uses of Dispirin• Pain killing• anti-inflammatory• Fever-reducing• Cold n flu
    24. 24. Revital• Revital a well known drug from Ranbaxy laboratories• It contains vitamins and minerals• Initially it was prescription drug• Later it changed to OTC drug i.e., switched to OTC drug
    25. 25. How it switched….● Ranbaxy used a well through out television creative to target the consumer directly through advertising● Revital was positioned to fit into the users hectic lifestyle empowering them with energy strength and mental sharpness, enabling them to enjoy life the fullest hence making them live the brand punch line of ―Jiyo Ji Bhar Ke‖
    26. 26. Advertising strategies • Pre use scenario and1. post use benefit • Make most of his life2. • Testimonial of regular3. users
    27. 27. Increase in sales of Revital afterswitching to OTC channels CAGR 90 20% 80 70 60 50 40 30 20 10 0 2002 2007
    28. 28. Crocin• Indian analgesic and anti-pyretic market is a huge one, growing at 9.50%• This market actually harbours 62 nationally distributed analgesics and over 100 local brands• Crocin has a market share of 18% in systemic analgesic categories• It is also marketed as PANADOL in more than 80 countries—is leading paracetamol in India
    29. 29. Product line• Crocin pain relief was launched in 2003• It contains 650mg paracetamol +50 mg of caffeine• In 2007,it entered into cold categories and launched Crocin cold n‘ flu• It contains paracetamol +caffeine +phenylephrine• Used for nasal congestion, headache, body ache, sore throat pain and chills
    30. 30. Cont…• Crocin cold n‘ flu currently has a market share of 4.20% and is the fastest growing brand within the crocin basket
    31. 31. Cont…..• The brand also came out with variants like Crocin Quik that boasted of faster relief• Crocin also came out with Crocin 1000 aiming at patients having arthritis.
    32. 32. History• In India, more than 40 year back, crocin was introduced in the market by Duphar Interfran limited now DIL Limited)• Initially it was prescription drug and was sold through ethical route only• In 1996,duphar sold the brand to Smithkline Beechline• Soon, the govt. removed many drugs from ethical list including Crocin
    33. 33. Cont…• And Crocin become an OTC drug• Smithkline extended its presence to the analgesic segment• Kapil dev was made as Brand ambassador for Crocin Pain Relief and this resulted in registering the brand in the minds of consumers
    34. 34. Product• It contains paracetamol i.e.; it delivers both- an analgesics and antipyretics• Crocin is also delivered in oral liquid dosage form for pediatric use• The pediatric formulation is available in the form of peppermint flavoured drops for infants mixed fruit flavoured suspension for children between age of one to twelve
    35. 35. Recent development• GSK was leaping up the sales chart• GSK planned several brand extension• The rapid mutation of viruses and cross border travel, the viruses now had the opportunity of infecting more people• Mild forms of flu and cold were becoming more frequent with more people
    36. 36. Cont…• This led GSK to launch Crocin Cold n‘ flu• The new drug offered relief from multiple symptoms of cold such as blocked nose, headache, body ache, and mild fever• The major differentiator was that unlike most other medicines in this space Crocin Cold n‘ flu did not cause drowsiness and this variant is already contributing significantly to Crocin‘s net sales
    37. 37. Promotion• OTC drugs are aggressively advertised with each brand seeking to gain market share• After the acquisition of crocin, GSK developed a new communication strategy• In those days, they compare the side effect of aspirin based analgesics with the crocin(recommended dose)• i.e.; crocin was safer at recommended dose
    38. 38. Cont….• GSK used this as a promotional strategy by positioning Crocin on the safety and easy on the stomach• By the end of 1999, many new formulation came to market• This had the expected result of further fragmenting the market and took away the share of Crocin
    39. 39. Cont…• The new drugs were perceived to be very effective and offered consumers a kind of safe remedy since they all came with the recommendation of doctors• Crocin was therefore, up against a mind set that there was no tangible reason to go back to it• Then, crocin decided to return to the formula that had been tried and successfully tested in international markets for its best selling drug, Panadol
    40. 40. Cont…• GSK developed ‗slice of life‘ advertising showing real people in real situation for real reasons reaching out for a Crocin• The result was spectacular• Crocin won back its pre-eminent position in the market and registered a stunning 21% growth in sales
    41. 41. Brand values• Crocin is a heritage brand, steeped in pharmacological history• Over the decades, it has brought relief and gentle touched of caring to perhaps hundred of millions of people – quickly and safely• For entire generation, Crocin is more than a pain and fever reliever, it is a time tasted friend that has always helped bring comfort and soothe life‘s little aches
    42. 42. Conti…….• It has also been mother‘s first line of defence• As infants, the single drop of syrup gives quick relief to children• And for adults it is the magic white pill• At every stages of life there was a Crocin to fall back upon
    43. 43. Conclusion• It is a very fast growing segment• Due to awareness of people, OTC market is growing continuously• Pharmaceutical company should move their products from prescription to OTC• It increases the market share of the existing company• Easy to access the medicines
    44. 44. Thank you

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