Cough, Cold, Flu and Allergy Remedies - US - April 2014

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Total US sales and fan chart forecast of cough, cold, flu, and allergy remedies, at current prices, 2008-18
Market drivers
Figure 2: Past 12 month incidence of ailments, February 2014
Segment performance
Figure 3: Total US retail sales of cough, cold, flu, and allergy remedies, by segment, at current prices, 2011 and 2013
New launches help boost key players to the top
Figure 4: MULO sales of cough, cold, allergy, and flu remedies, by leading companies, rolling 52-weeks 2012 and 2013
The consumer
Treating/determining how to treat
Figure 5: Determining how to treat ailments, February 2014
Purchase attitudes
Figure 6: Attitudes toward purchasing OTC remedies, by age, February 2014
Preventing illness
Figure 7: Preventing illness, by age, February 2014
What we think
ISSUES AND INSIGHTS
Consumers are becoming more proactive and preventative in their approach to health, presenting an opportunity for product expansion
The issues
The implications
Most ailment sufferers know how to treat ailments from prior experience, making it difficult to get them to try new products
The issues
The implications
Growth of homeopathic/natural products, increases competition for traditional OTC remedies
The issues
The implications
TREND APPLICATION
Trend: Guiding Choice
Trend: Extend My Brand
Trend: Prepare for the Worst
MARKET SIZE AND FORECAST
Key points
Severe cold and flu season, as well as allergies, drives growth
Sales and forecast of OTC cough, cold, flu, and allergy remedies
Figure 8: Total US sales and forecast of cough, cold, flu, and allergy remedies, at current prices, 2008-18
Figure 9: Total US sales and forecast of cough, cold, flu, and allergy remedies, at inflation-adjusted prices, 2008-18
Fan chart forecast
Figure 10: Total US sales and fan chart forecast of cough, cold, flu, and allergy remedies, at current prices, 2008-18
MARKET DRIVERS
Key points
Incidence of ailments drives category
Figure 11: Ailments experienced past 12 months, February 2014
Severe 2012-13 flu season
Figure 12: Google flu trends, 2012-14
Aging population could limit category growth
Figure 13: Population aged 18 or older, by age, 2014 and 2019, incidence of any ailments past 12 months, by age, February 2014
More people in household means more illness
Figure 14: Share of households by size, 2003-13
Nearly half of consumers get a flu shot to prevent flu
Figure 15: Incidence of flu shot, by age, February 2014
Increased urbanization can lead to increased illness
Figure 16: Incidence of any ailments past 12 months, by region, February 2014
Humidifiers, steamers, and vapor inhalers
Increase in use/sales of homeopathic/herbal remedies
Figure 17: Use of homeopathic/herbal remedies, by ailments experienced, February 2014
COMPETITIVE CONTEXT
Key point
Home remedies soothe ailment sufferers
Figure 18: Use of homeopathic/herbal remedies, by ailments experienced, February 2014
SEGMENT PERFORMANCE
Key points
High incidence of ailments drives sales of cough, cold, and allergy remedies
Figure 19: Total US retail sales of cough, cold, flu, and allergy remedies, by segment, at current prices, 2011 and 2013
Use of OTC cold, flu, and allergy remedies drive sales
Figure 20: Total US sales and forecast of cold, flu, allergy and sinus remedies, at current prices, 2008-18
Allergies drive sales of leading brands, but still overpowered by cold/flu products
Figure 21: Sales of cold, flu, allergy and sinus remedies, in MULO channels, 2012 and 2013
Cough/throat remedies grow substantially
Figure 22: Total US sales and forecast of cough/sore products, at current prices, 2008-18
Steady growth in the cough remedy market
Ease and affordability drive sales of cough drops
Cough syrups experience steady growth
Figure 23: Total US sales of cough/throat remedies, at current prices, 2008-18
Nasacort OTC switch will be bright spot for nasal remedies
Figure 24: Total US sales and forecast of nasal remedies, at current prices, 2008-18
RETAIL CHANNELS
Key points
Drug stores make up majority of sales
“Other” retail channels give drug stores a run for their money
Opportunity for supermarkets to increase sales
Sales of cough, cold, flu, and allergy remedies, by channel
Figure 25: US sales of cough, cold, flu, and allergy remedies, at current prices, by retail channel, 2008-13
Natural supermarket sales
Figure 26: US natural channel sales of OTC cold, flu, and allergy remedies, at current prices, 2011-13
LEADING COMPANIES
Key points
Reckitt Benckiser dominates category
Competition heats up among other leading brands
Increased sales of private label brands present threat to brand names
Manufacturer sales of OTC cough, cold, allergy, flu, and allergy remedies
Figure 27: MULO sales of cough, cold, allergy, and flu remedies, by leading companies, rolling 52-weeks 2012 and 2013
BRAND SHARE – COLD, FLU, ALLERGY, AND SINUS REMEDIES
Key points
Incidence of allergies helps grow key brands
Severe cold and flu season prompts sales
Manufacturer sales of cold, allergy, and flu remedies
Figure 28: MULO sales of cold, allergy, and flu remedies, by leading companies, rolling 52-weeks 2012 and 2013
Brand loyalty key to sales success
Figure 29: Key purchase measures for the top brands of cold, flu, allergy and sinus remedies, by household penetration, 52-weeks ending Dec. 29, 2013 (current) and Dec. 29, 2012 (year ago)
Figure 30: Brands of cold, allergy and sinus remedies used, July 2012-September 2013
BRAND SHARE – NASAL REMEDIES
Key points
Small recovery but nasal products still struggling
Figure 31: Nasacort product image
Manufacturer sales of nasal products
Figure 32: MULO sales of nasal products, by leading companies, rolling 52-weeks 2012 and 2013
High loyalty among private label brands
Figure 33: Key purchase measures for the top brands of nasal remedies, by household penetration, 52-weeks ending Dec. 29, 2013 (current) and Dec. 29, 2012 (year ago)
BRAND SHARE – COUGH/SORE THROAT DROPS
Key points
High incidence of coughs and colds drive sales of cough drops
Manufacturer sales of cough drops
Figure 34: MULO sales of cough drops, by leading companies, rolling 52-weeks 2012 and 2013
Halls has strong brand loyalty
Figure 35: Key purchase measures for the top brands of cough/sore throat drops, by household penetration, 52-weeks ending Dec. 29, 2013 (current) and Dec. 29, 2012 (year ago)
Figure 36: Brands of sore throat products used, July 2012-September 2013
BRAND SHARE – COUGH SYRUP/SORE THROAT LIQUIDS
Key points
Reckitt Benckiser leads cough syrup segment
Manufacturer sales of cough syrup
Figure 37: MULO sales of cough syrups, by leading companies, rolling 52-weeks 2012 and 2013
High loyalty among private label brands
Figure 38: Key purchase measures for the top brands of cough syrup/sore throat liquids, by household penetration, 52-weeks ending Dec. 29, 2013 (current) and Dec. 29, 2012 (year ago)
Figure 39: Brands of cough syrup used, July 2012-September 2013
INNOVATIONS AND INNOVATORS
Cough, cold, and flu remedies continue to outpace allergy launches
Figure 40: Share of allergy relief and decongestive, cough, cold, and flu relief product launches, 2008-14
Figure 41: Share of branded and private label allergy relief and decongestive, cough, cold, and flu relief product launches, 2008-13
Decongestive, cough, cold, and flu products
Figure 42: OTC Decongestive, cough, cold, and flu product launches, top claims, 2008-13
Fast-acting new product launch examples
Free-from/homeopathic new product launch examples
Allergy remedies
Figure 43: OTC Allergy product launches, top claims, 2008-13
New product launch examples
MARKETING STRATEGIES
Overview of the brand landscape
Athletic endorsements
On-the-go convenience
Figure 44: Robitussin online ad
Figure 45: Zyrtec dissolve tabs, 2014
Not missing out
Figure 46: Robitussin, “Waking the baby,” 2014
Figure 47: Sudafed replay
Getting back to normal
Figure 48: Tylenol cold, “for everything we do…”, 2013
SOCIAL MEDIA
Key points
Market overview
Key social media metrics
Figure 49: Selected Ricola Twitter mentions, March 2014
Figure 50: Key performance indicators, selected OTC cough, cold, flu, and allergy remedy brands, March 24, 2013-March 23, 2014
Brand use and awareness
Figure 51: Brand use and awareness of OTC cough, cold, flu, and allergy remedy brands, February 2014
Interaction with brands
Figure 52: Interaction with OTC cough, cold, flu, and allergy remedy brands, February 2014
Leading online campaigns
Marketing athletes and healthy living
Hashtags to drive conversation, bring people together
Brazilians love Halls
What we think
Online conversations
Figure 53: Online mentions, selected OTC cough, cold, flu, and allergy remedy brands, March 24, 2013-March 23, 2014
Where are people talking about OTC cough, cold, flu, and allergy remedies?
Figure 54: Mentions, by page type, selected OTC cough, cold, flu, and allergy remedy brands, March 24, 2013-March 23, 2014
What are people talking about online?
Figure 55: Mentions, by topic of conversation, selected OTC cough, cold, flu, and allergy remedy brands, March 24, 2013-March 23, 2014
TREATING AILMENTS
Key points
Remedies help ailment sufferers back on their feet quickly
Flu sufferers need their rest
Alternatives to treat allergies
External formats do not generate a lot of use
Figure 56: Correspondence Analysis, April 2014
Figure 57: Treating ailments, April 2014
Female ailment sufferers present a prime target, older consumers more preventative
Figure 58: Used OTC remedy to treat ailments, by gender and age, February 2014
Figure 59: Used OTC remedy to treat flu, by gender and age, February 2014
Types of products used
Figure 60: Formula of cold, allergy, and sinus remedies used, by age, July 2012-September 2013
DETERMINING HOW TO TREAT AILMENTS
Key points
Knowing is half the battle
Seeking a doctor’s expertise
Younger consumers influenced by a wide range of sources
Figure 61: Determining how to treat ailments, by age, February 2014
Allergy sufferers know their treatment, while flu sufferers need guidance
Figure 62: Determining how to treat ailments, by ailments experienced past 12 months, February 2014
Figure 63: Determining how to treat ailments, by purchased OTC cough, cold, flu, and allergy remedy brands, February 2014
PRODUCT SELECTION
Key points
Product claims and brand name influences OTC selection
Female users more influenced by product attributes
Figure 64: OTC product selection, by gender, February 2014
Older consumers rely on claims, doctor recommendation
Figure 65: OTC product selection, by age, February 2014
Brand users seek product attributes
Figure 66: OTC product selection, by purchased OTC cough, cold, flu, and allergy remedy brands, February 2014
PURCHASING ATTITUDES AND BEHAVIORS
Key points
Brand loyalty key to driving sales
Consumers seek day/night versions
Trust in homeopathic/herbal growing
Figure 67: Attitudes toward purchasing OTC remedies, by age, February 2014
Encourage sufferers to stock up on products
Saving money not a key driver for OTC purchases
Figure 68: Approach to purchasing remedies, by age, February 2014
Remedy user attitudes
Figure 69: Attitudes/opinions about health and wellness, by remedy users, July 2012-September 2013
PREVENTING ILLNESS
Key points
Ailment sufferers seek to prevent illness
Vitamins help prevent illness
Older women more invested in health prevention
Figure 70: Preventing illness, by gender and age, February 2014
Investing in prevention
Figure 71: Preventing illness, by household income, February 2014
All around prevention
Figure 72: Preventing illness, by had a flu shot in the last 12 months, February 2014
RACE AND HISPANIC ORIGIN
Key points
Growth of non-White populations
Figure 73: Population by race and Hispanic origin, 2014 and 2019, incidence of any ailments past 12 months, by race/Hispanic origin, February 2014
Experiencing ailments common among all demographics
Figure 74: Any ailments experienced past 12 months, by race/Hispanic origin, February 2014
A need for expertise
Figure 75: Determining how to treat ailments, by race/Hispanic origin, February 2014
Figure 76: Approach to purchasing remedies, by race/Hispanic origin, February 2014
Brand loyal users
Figure 77: OTC product selection, by race/Hispanic origin, February 2014
Figure 78: Attitudes toward purchasing OTC remedies, by race/Hispanic origin, February 2014
APPENDIX – OTHER USEFUL CONSUMER TABLES
Demographics
Figure 79: Population aged 18 or older, by age, 2009-19
Figure 80: Population by race and Hispanic origin, 2009-19
Figure 81: Average household size, by race of householder, 2003-13
Retail channels
Figure 82: Total US retail sales of cough, cold, flu, and allergy remedies, by channel, at current prices, 2011-13
Ailments experienced
Figure 83: Ailments experienced past 12 months – Any experienced, by gender, February 2014
Figure 84: Ailments experienced past 12 months – Any experienced, by age, February 2014
Figure 85: Ailments experienced past 12 months – Any experienced, by household size, February 2014
Figure 86: Ailments experienced past 12 months – Any experienced, by had a flu shot in the last 12 months, February 2014
Innovations and innovators
Figure 87: OTC decongestive, cough, cold, and flu product launches, top claims, 2008-13
Figure 88: OTC Allergy product launches, top claims, 2008-13
Treating ailments
Figure 89: Treating ailments, February 2014
Figure 90: Used OTC herbal remedy to treat ailments, by gender and age, February 2014
Figure 91: Used OTC herbal remedy to treat the flu, by gender and age, February 2014
Figure 92: Used OTC homeopathic remedy to treat ailments, by gender and age, February 2014
Figure 93: Used OTC homeopathic remedy to treat the flu, by gender and age, February 2014
Figure 94: Used OTC herbal/homeopathic remedy to treat ailments, by race/Hispanic origin, February 2014
Determining how to treat ailments
Figure 95: Determining how to treat ailments, by gender, February 2014
Figure 96: Determining how to treat ailments, by gender and age, February 2014
Product selection
Figure 97: OTC product selection, by age and gender, February 2014
Figure 98: OTC product selection, by ailments experienced past 12 months, February 2014
Purchasing attitudes and behaviors
Figure 99: Attitudes toward purchasing OTC remedies, by gender, February 2014
Figure 100: Attitudes toward purchasing OTC remedies, by purchased OTC cough, cold, flu, and allergy remedy brands, February 2014
Figure 101: Attitudes toward purchasing OTC remedies, by ailments experienced past 12 months, February 2014
Figure 102: Attitudes toward purchasing OTC remedies, by purchasing products, February 2014
Figure 103: Attitudes toward purchasing OTC remedies, by purchasing products, February 2014 (continued)
Figure 104: Approach to purchasing remedies, by gender, February 2014
Preventing illness
Figure 105: Preventing illness, by gender, February 2014
Figure 106: Preventing illness, by age, February 2014
Figure 107: Preventing illness, by ailments experienced past 12 months, February 2014
Figure 108: Preventing illness, by household size, February 2014
Figure 109: Preventing illness, by race/Hispanic origin, February 2014
Brands used
Figure 110: Cold, allergy and sinus remedies, July 2007-September 2013
Figure 111: Brands of sore throat products used, July 2007-September 2013
Figure 112: Brands of cough syrup used, July 2007-September 2013
Figure 113: Store brand use of cold, allergy and sinus remedies, cough syrup, and sore throat products, by race/Hispanic origin July 2012-September 2013
Correspondence analysis methodology
APPENDIX – SOCIAL MEDIA
Online conversations
Figure 114: Online mentions, selected OTC cough, cold, flu, and allergy remedy brands, March 24, 2013-March 23, 2014
Brand analysis
Figure 115: NyQuil key social media indicators, March 2014
Figure 116: Claritin key social media indicators, march 2014
Figure 117: Zyrtec key social media indicators, March 2014
Figure 118: Mucinex key social media indicators, March 2014
Figure 119: Halls key social media indicators, March 2014
Figure 120: Ricola key social media indicators, March 2014
Brand use or awareness
Figure 121: Brand use or awareness, February 2014
Figure 122: Halls use or awareness, by demographics, February 2014
Figure 123: Ricola use or awareness, by demographics, February 2014
Figure 124: Zyrtec usage or awareness, by demographics, February 2014
Figure 125: Claritin usage or awareness, by demographics, February 2014
Figure 126: Mucinex usage or awareness, by demographics, February 2014
Figure 127: NyQuil usage or awareness, by demographics, February 2014
Activities done
Figure 128: Activities done, February 2014
Figure 129: Halls – Activities done – I have looked up/talked about this brand online on social media, by demographics, February 2014
Figure 130: Halls – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, February 2014
Figure 131: Halls – Activities done – I follow/like the brand on social media because, by demographics, February 2014
Figure 132: Halls – Activities done – I have researched the brand on social media to, by demographics, February 2014
Figure 133: Ricola – Activities done – I have looked up/talked about this brand online on social media, by demographics, February 2014
Figure 134: Ricola – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, February 2014
Figure 135: Ricola – Activities done – I follow/like the brand on social media because, by demographics, February 2014
Figure 136: Ricola – Activities done – I have researched the brand on social media to, by demographics, February 2014
Figure 137: Zyrtec – Activities done – I have looked up/talked about this brand online on social media, by demographics, February 2014
Figure 138: Zyrtec – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, February 2014
Figure 139: Zyrtec – Activities done – I follow/like the brand on social media because, by demographics, February 2014
Figure 140: Zyrtec – Activities done – I have researched the brand on social media to, by demographics, February 2014
Figure 141: Claritin – Activities done – I have looked up/talked about this brand online on social media, by demographics, February 2014
Figure 142: Claritin – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, February 2014
Figure 143: Claritin – Activities done – I follow/like the brand on social media because, by demographics, February 2014
Figure 144: Claritin – Activities done – I have researched the brand on social media to, by demographics, February 2014
Figure 145: Mucinex – Activities done – I have looked up/talked about this brand online on social media, by demographics, February 2014
Figure 146: Mucinex – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, February 2014
Figure 147: Mucinex – Activities done – I follow/like the brand on social media because, by demographics, February 2014
Figure 148: Mucinex – Activities done – I have researched the brand on social media to, by demographics, February 2014
Figure 149: NyQuil – Activities done – I have looked up/talked about this brand online on social media, by demographics, February 2014
Figure 150: NyQuil – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, February 2014
Figure 151: NyQuil – Activities done – I follow/like the brand on social media because, by demographics, February 2014
Figure 152: NyQuil – Activities done – I have researched the brand on social media to, by demographics, February 2014
APPENDIX – INFORMATION RESOURCES INC. BUILDERS PANEL DATA DEFINITIONS
Information Resources Inc. Consumer Network Metrics
APPENDIX – TRADE ASSOCIATIONS