Are you considering repositioning a product from the ethical to the OTC market? Gain insight into successful marketing strategies with this new report from
Animal Pharm.
This report will be a particularly invaluable resource if you’re responsible
for strategic planning, providing both a market overview and key issues for the
decision making process.
This report will help you to:
Examine the various market forces acting within the distribution of veterinary medicines
Identify key drivers and the regulatory environment for different retail channels
Review the leading companies in the OTC market
Analyse the strengths and weaknesses of different strategies used for existing products
Traditionally sales of animal health products have been via a small number of
different retail channels, limited by the regulatory classification of each specific
product. Thus, products classified as being suitable for “over-the-counter” (OTC)
sales have been widely available across all outlets (including supermarkets, pet
superstores, garden centres, pet shops, pharmacies and veterinary clinics), while
those restricted to being only available with a prescription have been limited
to distribution through the so-called “ethical” channel of either a vet clinic
or a pharmacy.
The different retail outlets represent separate marketing channels, and historically
certain companies are predominantly active in particular channels. Reputations
are built up over time and once forged these commercial relationships can provide
a large degree of inertia within each channel of distribution. Companies are continually
seeking new product opportunities. One potential opportunity for increasing sales
volume would be to expand the number of pharmaceutical products available on the
OTC market. Given the inherent difficulty and expense of developing new compounds,
the simplest route is via the reclassification as OTC of pharmaceuticals formerly
requiring prescriptions. This would then allow a much greater distribution across
the range of retail outlets. For the manufacturer this offers the potential for
increased volume and for the distributor, range expansion via new product launches.
However, apart from the need to obtain regulatory approval, the switch into the
general OTC market may conflict with existing ethical sales and cause manufacturers
to have to rethink their relationship with those veterinarians who have previously
supported a particular product. Nevertheless, for manufacturers with brands nearing
the end of the product lifecycle, wider distribution via the OTC channel represents
a potentially valuable method of extending profitable sales and generating revenue
for re-investment into new compound development.
