Rx to OTC Switch
Zyrtec, the #1 prescribed medicine was making the switch to OTC. Though popular among physicians, it had very low consumer awareness. Our work was brand identity, packaging graphics and structural packaging.
The result was the birth of a compelling Zyrtec OTC brand with packaging that communicates the brand’s essence and a unique, patented structure that delivers portability and convenience to a modern, lifestyle-oriented consumer. The secondary packaging, a unique clamshell stands out on shelf while also significantly reducing amount of plastic.
“You have been phenomenal partners on the Zyrtec journey and the creative is outstanding.” Rohenish Hooda, VP Upper Respiratory.
excerpt from BrandWeek
Consumers crave brands with health and affordability claims, according to Information Resources Inc.'s annual New Product Pacesetters report. PepsiCo's G2 and over-the-counter allergy relief medication Zyrtec topped the list of most successful product introductions last year, per the research firm, which is releasing its findings at the CPG Summit in Las Vegas this week. The report encompasses both food and nonfood brands that have completed one full year of sales, have gained at least 30 percent national distribution and generated at least $7.5 million in sales in the food, drug and mass channels. Here's a look at the top winners...
Zyrtec Keeps Sales Healthy
Becoming an over-the-counter drug has done wonders for the health of the Zyrtec brand. The Johnson & Johnson-owned allergy reliever notched $316 million in first-year sales since its January 2008 switchover from being a prescription-only medication. The FDA approved OTC use of the drug in November 2007.
Zyrtec has also benefited from its reputation as "fast-acting" relief to common allergy symptoms as well as a steep drop in price. Anne Berlack, evp of consumer and shopper insights at IRI, said the huge drop in pricing which typically accompanies prescription to OTC switches is a critical driver of first-year sales.
Zyrtec's primary competitor, Claritin (from Schering-Plough), went OTC in December 2002, but there's room enough for the two brands to duke it out as they've distinguished themselves on separate claims, said Mintel senior analyst Krista Faron. Claritin prides itself on delivering nondrowsy relief.
Generic versions of the drug do exist-including one sold by Ohm Laboratories of New Brunswick, N.J-but this is usually not enough to detract from branded sales in the short run, Berlack said.
Still, private label remains a long-term competitive threat. Generic brands accounted for 21.8 percent of U.S. cold, allergy and sinus remedy sales in 2008, per Mintel. Sales in this sector jumped 22.7 percent in two years. And, Faron said, until the economy turns around, consumers may very well "pick based on price."