Abstract
Overview:
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
Executive Summary:
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.
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