My Summary of our Opening Day in New Jersey

I opened proceedings by asking “Are we looking in the right place for growth?”

To achieve growth, we need to utilise the 4 elements of PACE:

1. Pharmacy – retail partners want more and more of the margin

2. Adjacencies: reaching beyond the 6 core categories of OTC and seeing where we can branch out.

I was then joined on stage by my colleague Ekaterina Panteleeva who talked about the successful evolution of probiotics into a diverse range of targeted treatment and prevention areas, for example going from areas such as diarrhoea and developing into vaginal health, immune health and skin health. Emerging adjacencies now include areas such as weight management, menopause and mental health.

Ekaterina also talked about opportunities for OTC marketers in diabetes care going from prevention to symptom management to adjacencies

3. Consumer – We need to make sure we are targeting the right demographics

4. e-commerce.

 Who will win at e-commerce? Manufacturers of big OTC brands could be pushed out as there are thousands of suppliers offering a cost +10% basis. There is a challenge to change our ways but no company is truly devoting resources to e-commerce.

 I concluded by reminding the audience that you always look in the right place for growth but remember to look for the trap door!

Pat O’Leary from the Greenwood Group then took to the stage to share his insights into the e-commerce revolution. More buyers are buying more from e-commerce, with China being one of the most developed countries in terms of the channel. Despite the threat of Amazon, retailers are fighting back, such as the Shipt same-day delivery service at Target, Kroger’s deal with Ocado, a British online grocer with automated e-commerce, and Walmart vending machines which can dispense a prescription in 90 seconds.

Dave Wendland from Hamacher Resource Group then debunked 5 myths surrounding independent pharmacy, stressing that there is still opportunity within the channel. Consumers are attracted to the channel because it offers service, loyalty and it is community based. Dave debunked the first myth that independent pharmacies are extinct by highlighting the fact that the sector generates $79.8bn in sales; slightly higher than the annual sales of Walgreens. Secondly, the myth that the channel delivers too little ROI is contradicted by the fact that 5% of OTC sales are generated in independent pharmacies. According to Dave this is the same level as e-commerce. He asked if marketers can afford to ignore this channel? The third myth, that OTC categories do not perform, is untrue according to Dave as the Top 6 categories in independent pharmacy are OTC categories. Meanwhile, the belief that consumers don’t shop in independent pharmacies was debunked by the fact that the channel dispenses 200 prescriptions per day. Consumers trust independent pharmacies for their customer service and expertise. Finally, Dave argued against the myth that independent pharmacies are out of reach, by stressing that independents vary in terms of what types of products they carry and that understanding the correct pharmacies to target and sending the right message can bring favourable results.

Amit Dhand, the CEO of Nailbiter, took to the floor to discuss the Top 5 Shopper Marketer Mistakes as revealed by video surveys Videometrics. The results of the surveys showed that there were 5 key marketing mistakes in drug stores that independent pharmacies and large chains can learn from. First of all, consumers are interested in establishing an emotional connection / rapport with retailers. Secondly, the fewer brands shoppers see on shelves, the happier they are with their experience. Thirdly, promotions drive notice and helps shoppers make decisions. Fourthly, price reductions may not necessarily influence final purchase decisions, and finally shoppers trust that their pharmacy will have what they need in stock or that they can order it. 

We then had a fascinating panel discussion from Shannon Huneke of United Healthcare, Colleen Lindholz of The Litle Clinic and Kroger, and J&J"s Chris Jobes, who discussed their combined efforts in joining forces to help combat the opioid crisis, which was declared a public health emergency in 2017. Despite hurdles such as regulatory issues this crisis can be tackled if all stakeholders come together but it requires a shift in culture.

 Following the coffee break and networking session we then heard from Ted Kyle, founder of ConscienHealth, who talked about the obesity and diabetes crisis in the US. Ted argued that while obesity was previously viewed as a failure of responsibility, it is now regarded as a complex chronic disease. Consumers are moving away from dieting and towards healthy eating, while clean labels are the holy grail. Opportunities exist in personalised nutrition, claims related to health outcomes, weight maintenance and longer-term outcomes and solutions. As an industry we have unique insights into consumer behaviour which can help develop solutions to move the needle on obesity where public health bodies have failed.

Alexis Roberts-McIntosh gave a fascinating talk sharing her insights on “Self Care – The Prefect Storm”. Despite the turbulence of current times there is opportunity for OTC marketers. The agenda needs to pivot towards health outcomes and with people going to be living longer the focus should be on quality of life. Global consumer led behavioural trends include a shift towards personal ownership of health & wellness, a desire for transparency & clean labelling and natural products & platforms, as well as a better environment with less pollution. Other disruptive trends include microbiome and genomics, consumer self-diagnosis and testing and personalised wellness, among others. Alexis showed a video of a revolutionary new device, Cue, though which consumers can access deep information about their health via adding samples to the device.

After lunch, June Risser from Nestlé Skin Health shared insights on the successful Rx-to-OTC switch of Differin Gel. Key success factors included: understanding the consumer and finding a white space in targeting millenials with acne; having strong distribution and in-store visibility; an eye-catching package design; and breakthrough marketing communications including leveraging bloggers.

 Steve Sowerby and Ed Rowland then took to the stage to launch the CHC Training Institute in North America. Steve offered some fascinating insights on how the KUBA (Know, Understand, Believe and Act) principle can help marketers create Win, Win, Win situations for brands, pharmacies and consumers.

 Terri Goldstein, CEO of the Goldstein Group, and Joe Gioconda of Gioconda Law, delivered a talk on protecting brands against malpractice. Manufacturers must consider protecting their brands at the design stage and uncover ownable core identifiers such as colours, shapes, symbols and words.    

 The final session of the day featured four different speakers giving different perspectives on the field of nutrition.

 John Halbert, CEO of North America of Lifes2Good, talked about the success of hair loss brand Viviscal, which Lifes2Good bought for $700K from a Finnish company in 2008 and sold for $160mn to Church & Dwight in 2016. Key success factors including backing by clinical trials, channel variety across direct, medical and retail, everyday engagement with consumers and a positioning as a hair growth brand instead of hair loss, among others.

Jennifer Cooper, Chief Scientific Officer at LPS Health Discovery, then gave a compelling talk on the upcoming surge in personalised medicine. Personalisation can be achieved via meaningful scientific data, such as via blood biomarkers, epigenetics, micobiome and lifestyle data – however, personalisation is more than data. It can also include factors for example providing individualised advice and specialised content, preferred delivery formats, lifestyle guidance and by helping to increase compliance and modify behaviours.

 Thomas Aarts, Co-Founder of Nutrition Business Journal, gave his insights on the current trends in nutrition. These included protein, gut health and the microbiome, beauty-from-within supplements, especially collagen, brain health (nootropics), and supplements targeting mood, stress and anxiety. CBD is also generating huge revenues but this remains controversial. Consumers have pill fatigue and are increasingly demanding new formats. As was a recurring theme in the meeting, personalisation is another key trend.

Chuck Jolly, Senior of Counsel at Baker Donelson, gave the final talk of the day on the unique and legal possibilities for medical foods. He predicts a wave of medical foods on the horizon as these can bypass some of the regulatory hurdles faced by NDAs and can offer new selling propositions.

The final panel discussion of the day featured these 4 speakers (John Halbert, Jennifer Cooper, Thomas Aarts and Chuck Jolly) exploring the topic of nutrition. The general consensus was that science should lead the law in solving the healthcare crisis. The lines are being blurred in terms of OTC, Rx, nutrition and general lifestyle / health and a holistic approach is required.

We closed with a networking drinks hour sponsored by Baker Donelsen, energised by the day's discussions and ready for Day 2 and more insights tomorrow!