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OTC & Consumer Behavior

Group-4 Partha Sarkar Rohan Mathankar Pankaj Waradkar Surojit Saha

Ecosystem of Consumer Behaviors





Consumer Behaviors


Brand Endorsement



Consumer behavior



What to buy Who will use Who will buy How will they buy When will they buys Where does the market buys (mode of selling) Why does the market buys?

y OTC products y Families & individuals y Adult members y Cash / credit cards y There is some kind of

ailment y Retail medical store

The Nature of Consumer Behavior

y External Influences y Internal Influences y Self-Concept y Situations y Experiences and


Self/Product Congruence
y Consumers demonstrate their values through their

purchase behavior y Self-image congruence models: we choose products when attributes matches the self

Product Usage


2/27/2012 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall


Introduction-OTC Drugs

OTC Drugs means drugs legally allowed to be sold Over The Counter, i.e. without the prescription of a Registered Medical Practitioner. In India, though the phrase has no legal recognition, all the drugs that are not included in the list of prescription drugs are considered as non-prescription drugs (or OTC drugs).

Prescription Drugs are those that fall under two schedules of the Drug and Cosmetics Rules, 1945: Schedule H and Schedule X. Drugs falling under Schedule G require the following mandatory text on the label: Caution: It is dangerous to take this preparation except under medical supervision and hence are not advertised to the public voluntarily by the industry.

More than one-third of the time people treat their routine health problems with OTC medications to receive symptomatic relief from their ailments. If done correctly, self-care with OTC medications can provide significant relief from minor, self-limiting health problems at minimal cost. -----Wal-Mart, Inc. US

External Influences
The following OTC medicines advertising can be seen on TV in India: Digestives Antacids Antiflatulents Cold rubs and analgesic balms/creams Vitamins/tonics/health supplements (especially herbals and Ayurvedic-registered) Medicated skin treatment Analgesic/cold tablets Antiseptic creams/liquids Glucose powders Cough liquids Throat lozenges Medicated dressing (band-aids) Baby gripe water.

Everyday ailments for which people report treating themselves rather than seeking a consultation with a doctor Category Traditional medicines Cough and cold preparations Vitamins and minerals Analgesics Medicated skin products Other % share 27.30 19.80 11.60 11.40 2.60 27.30

Indian Market data on OTC medicines India is currently ranked 11th in the global OTC market in size, with an estimate that it will reach 9th position within five years.(Source :Nicholas Hall & Company,India,DB6 2006) Currently the Indian OTC market (i.e. non-prescription advertised medicines) is estimated to represent approximately Rs.104 Billion growing at about 8-9% (Source :ORG-IMS)

The changing consumer

  The consumers are changing ,they are more informed, use more gadgets, lead a fast life (Factors-Education) Stressful workplace environment and fast changing technology put continuous pressure to adapt and adjust Changing lifestyle with smaller living space, less exercise(sedentary jobs), taking junk food (Factors- Culture, Environment, habits) Consuming addictive products to stay awake on the job for longer hours and eating on the run put more stress on the body which get expressed in the form of psychosomatic disorders like frequent headache, allergy, common cold, constipation, backache, acidity, chronic fatigue etc. (Factors- External influences adaptability)

... which they are trying to manage with Over The Counter (OTC) drugs.

The changing consumer

 The enfranchised customer of today feels more independent and self reliant and is hesitant to adopt the orthodox model of expert prescription, monitored medication and supervision throughout the treatment period to manage common ailments.( Factors- Perception, Education)  With increasing medico legal cases, Doctors are also not ready to take any risk and insist on detailed investigation to diagnose even a common ailment (Factors- culture of the system)  Most of the OTC drugs are safe, effective, economical and since it is available with out a prescription, the perceived value of OTC medication is higher compared to orthodox model for common ailments (Factors- Brand Endorsement)  Self-administration of treatment with over-the-counter drugs relies on the patient's judgment, supplemented by the information on the label, for correct diagnosis of the disorder or symptom (Factors- ease to get)

Consumer Behavior Shifting from Prescription to OTC

Brand established over the periods now sold on OTC

1. 2. 3. 4. 5.

Easy access No documents required Past good results fetches for future buy Word of mouth Habit formation

Behavior drives the consumers switching from prescription only to OTC - Pros & Cons
Possible Benefits 1. Increased access 2. Decreased frequency of visits to physicians, leading to lower healthcare costs 3. Improved education of consumers 4. Increased autonomy of patients 5. Decreased cost to third party players Possible Risks 1. Inaccurate diagnosis 2. Delay in obtaining needed therapy 3. Use of suboptimal therapy 4. Drug resistance 5. Increased costs to patients 6. Failure to follow label instructions (Adverse effects, Drug interactions) 7. Perceived loss of control by physicians

Label information controlled by the FDA

When to use Product name Identity Active ingredients Quantity Manufacturer How to use What to watch for OTC Antacids Ingredients: 12 fl. oz. GOTCHA, INC. Indications Directions: Warnings: Precautions: Expiration date: Possible drug interactions When drug should no longer be used