Drugs that switch from prescription to nonprescription status typically become successful brands. In the last few years, the winners have been Aleve, Tagamet and Pepcid. Some over-the-counter brands go on to become household names (Advil and Tylenol, for example). OTCs are poised to become an enormous business in the next five years. Dozens and dozens of prominent Rx drugs will likely go nonprescription. Consumer trends point to a growth in self-medication as health care costs escalate and people take more control over their well-being. But marketers will have to deal with some obstacles for the OTC business to reach its potential. Some are external; that is, the government (see story on Page 1). Other obstacles are internal; that is, the trade. The way to overcome the latter roadblocks is through alliances with the retailer. For example, the health and beauty care section in food, drug or mass outlets already is overloaded with products and line extensions. Consumers, looking for a headache or cold remedy, are confronted by a blur of products jamming the shelf. An approaching brigade of "switches" will add to the problem. A well-designed, informative label on the product can help the consumer. But it's not enough. In-store education, resulting from co-marketing between trading partners, will help shoppers make informed choices. The most obvious technique is through ample signs and educational literature. Those retail outlets with an in-store pharmacist would have a decided advantage, especially for "switch" products. Shoppers, perhaps leery of a drug previously available only from a doctor, could have their questions answered by the pharmacist. It's the human touch. Advances in science are causing another obstacle at retail. OTC drugs to grow hair and others to lower cholesterol levels, for example, essentially create product categories that never existed before. These products should do very well. The target consumer will be graying baby boomers, who would welcome some medicinal assistance as they morph gently into that good night. The retailer will have to find space on the shelf for these new products. But where? . The way to do these things is through a trade partnership using category management techniques. Exciting new products could be worked intelligently into the mix. The bottom line: The entire HBC section gets a lift due to consumers shopping there more often.
