Segmentation, Targeting & Positioning STP of OTC Over the Counter Drugs with examples

1. Segmentation
● As the business or the organization cannot meet the needs of each and every individual in
the market , the market is segmented in to meaningful, relatively similar and identifiable
groups
● the identification of the portions of the market that are different from one another & helps
you to define your population in smaller group
POPULATION -- SEGMENTATION
similar in needs and wants
Over the Counter (OTC) Drugs segmented Market by
▪ Category (Vitamin and Dietary Supplements, Cough & Cold Products, Analgesics,
Gastrointestinal Products, Sleep Aids, Otic Products, Wart Removers, Mouth Care Products,
Ophthalmic Products, Botanicals, Antacids, Smoking Cessation Products, Feminine Care,
and Others)
▪ Dosage Form (Tablets, Hard Capsules, Powders, Ointments, Soft Capsules, Liquids, and
Others), Product (Branded, and Generic Drugs),
▪ Distribution Channel [Pharmacies, Grocery Stores, Vitamin and Health Food Stores, Online
Pharmacies, and Others]

2. Anti-infectives, GIT, Analgesics, Dermatology —OTC
By Geography

3. ● North America
o U.S.
o Canada
o Mexico
● Europe
o Germany
o France
o UK
o Italy
o Spain
o Rest of Europe
● Asia Pacific
o Japan
o China
o India
o Rest of Asia-Pacific
● LAMEA
o Latin America
o The Middle East
o Africa

4. Asia-Pacific and LAMEA collectively accounted for about half share of the global market,
and is expected to continue this trend throughout the forecast period.
ON FORMULATION
Targeting
● Once you know your segments, you start targeting those segments
● .Thus targeting can be said to be a sub concept of Segmentation.
● Targeting plays a critical role in your marketing mix.

5. ▪ OTC Company target a specific group of people by categorizing them as the elderly,
families & children, teens and the working class.
▪ If you are targeting the Children segment, then your products need to be more
creative, more colourful with added flavours.
Entire line for treatment of colds and flu
▪ Personalization- acne treatment brand strategy based on segment: parent, teen or
adult.
Teenagers and adults drive the market growth
▪ Male and Female married adults residing at least one child;, these are busy young couples
who consider their time to be a valuable and limited resource. They are active physically and
positive in their outlooks. Behaviorally, they are often leaders in making purchase
decisions, and they will likely look first to the Internet to acquire information.
Positioning
Market postioning
● It is by positioning yourself differently from the competition.
● You can position yourself as a quality brand with mid pricing, or a high quality brand with
high pricing for the Sec A class.
▪ keep the cost of medicines affordable
▪ The development of effective therapeutics with lesser side effects and high
potential in untapped markets in the emerging economies are expected to provide
lucrative growth opportunities for the market.

6. ▪ Rapid release system fairs well with Working class.

7. ▪ One such approach focuses on the use of powerful slogans such as “getting you back
to Normal” and “Feel better, Quick” among others.
▪