“Edgewood provides a wealth of experience and a needed perspective on what it takes for a successful switch. Their insights on how to go to market are incredibly valuable to setting strategy.” – Phil Kantor,
Former Marketing Director,
Novartis Consumer Health
Rx to OTC Switches
Switching a product from the pharmacy to over-the-counter (OTC) can be a game-changing opportunity for both Manufacturers and Retailers. In many cases, successful switches have revitalized mature categories by fueling tremendous growth in sales, new customers, and marketing activity. However, in some instances, Manufacturers have paid a high price for licensing and marketing investment only to see their switch underperform at retail.
Edgewood Consulting has extensive experience working with manufacturers and retailers in the area of Rx to OTC switches. This includes development of a Best Practices approach to optimize switch commercialization. We pride ourselves in working collaboratively with Manufacturers and Retailers to ensure that the most relevant strategies and tactics are employed. It is important to note that development of the four key principles outlined to the left reflect both our own, real world experience with multiple major pharmaceutical companies as well as comprehensive analysis and evaluation of several successful and underperforming launches.
As a manufacturer, you only get one chance to make a successful switch and given the resources required, the upside from leveraging the process and insights of Edgewood Consulting are significant. This perspective is valuable in all phases of the launch from identification of a lifecycle strategy and preparing the introduction to better alignment and support from retailers and insulating yourself from other Branded or Private Label competition.
Insights – The client had recently gained FDA approval to switch an Rx product that was unique versus any current OTC offering. This presented a unique range of retail challenges including determining the best product location, optimizing retail pricing and promotional strategies for an item shoppers were not familiar with. Edgewood Consulting worked with the client on a range of studies focused on capturing the current consumer, shopper and retail environment and “creating the future”.
Innovation – Edgewood Consulting developed a framework for communicating the product and related strategies and tactics required to properly seed the long term opportunity. The approach focused on the importance of both Retail Activation and Shopper Activation, highlighting the need for a partnership approach to leverage the switch.
Implementation – Worked closely with the teams at multiple accounts to develop a customized program designed to capture their fair share of the opportunity. A key element was providing education and support regarding the new product and the “host” category identified for placement at retail.