State of the Industry Symposium
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1 State of the Industry Symposium Speaker: Lindsay Forrest, Chair, Australian Self Medication Industry (ASMI) Association Proudly sponsored by:
2 Voice of the Consumer Healthcare Products Industry Peak industry body representing: Sponsors of non-prescription medicines Non-prescription = Over-the-Counter (OTC) & Complementary Medicines (CM) ASMI members make up approx. 80% of the $5bn+ non-prescription market
3 Today 1. State of Consumer Healthcare Industry 2. Schedule 3 Consumer Advertising 3. Front of shop growth opportunities for Pharmacy Proudly sponsored by:
4 State of Consumer Healthcare Industry Proudly sponsored by:
5 Value Growth (%) Overall pharma market grew over 20% due to Rx Hepatitis C listings altering Rx/OTC share of market % 5.1% 0.2% 2013 Proudly sponsored by: Growth of the OTC market vs. total Pharma market 23.6% Source: QuintilesIMS National Audits (API+AHI) ex-wholesaler list price MAT December 27.7% 28.2% 26.2% 20.1% 10.8% 11.5% 6.6% 1.6% OTC Share of market OTC Total market
6 All OTC categories still driving strong growth front of shop for pharmacy 770 (17.2%) Sales (A$ million) and Market Share 651 (14.5%) 434 (9.7%) 318 (7.1%) 306 (6.8%) *Includes Multivitamins Adult, Multivitamins Child and VMS Other **Excludes Acne and Antifungal treatments ***Excludes Asthma and anti-allergics, expectorants and cough relievers Source: QuintilesIMS National Audits (API+AHI) ex-wholesaler list price MAT December 2016 Proudly sponsored by: 235 (5.2%) 163 (3.6%) ANTI DIARRHOEALS 142 (3.2%) OTHER RESPIRATORY*** 119 (2.7%) SMOKING CESSATION 111 (2.5%) INFANT FORMULAS MULTIVITAMINS* OTHER SKIN TREATMENT** ASTHMA & ANTI-ALLERGICS PAIN RELIEF - GEN SYSTEMIC LAXATIVES CALCIUM SUPPLEMENTS -5.0% Growth (%) 6.5% 6.7% 11.2% 7.7% 8.4% 13.6% 10.9% 45.3% +13% Growth 84.0% +28% Growth
7 Schedule 3 Advertising Proudly sponsored by:
8 PROPOSED S3 ADVERTISING MODEL Pharmacy & Consumer Communication Preparing Pharmacy Implementation of clinical protocols and product information to all pharmacists prior to commencement of advertising Consumer Communications New S3 communication model incorporated into all forms of consumer communication* Importance of Pharmacist role Condition Branded Awareness Product Informatio n
9 PROPOSED S3 ADVERTISING MODEL Pharmacy & Consumer Communication Preparing Pharmacy Implementation of clinical protocols and product information to all pharmacists prior to commencement of advertising Consumer Communications New S3 communication model incorporated into all forms of consumer communication* Importance of Pharmacist role Condition Branded Awareness Product Informatio n
10 PROPOSED S3 ADVERTISING MODEL Pharmacy & Consumer Communication Preparing Pharmacy Implementation of clinical protocols and product information to all pharmacists prior to commencement of advertising Consumer Communications New S3 communication model incorporated into all forms of consumer communication* Importance of Pharmacist role Condition Branded Awareness Product Informatio n *Exception List non advertised when not in public interest
11 PROPOSED S3 ADVERTISING MODEL Mock Ad Demonstrating Model in Practice com/watch?v=1yhzdp 0_rWQ Cut to VIDEO
12 Top Line ESTIMATING THE QUM IMPACT OF SCHEDULE 3 CONSUMER ADVERTISING Results UTS CHERE RESEARCH TEAM: PROF STEPHENGOODALL, PROF ROSALIE VINEY, DR FEI-LI ZHAO, PROF DEBORAH STREET UTS CRICOS PROVIDER CODE: 00099F Research Sample Size: 1,295 Consumers (50% sufferer & 50% non-sufferers) 501 Pharmacists 500 Pharmacy Assistants chere.uts.edu.au
13 Consumer Results
14 Advertising DOES influence Consumer health-seeking behaviour RESEARCH INSIGHT - After seeing the advert, consumers more likely to visit pharmacy for cold sore (minor ailment) than GP Ask your Pharmacist well received by consumers Advertising created awareness of pharmacy services for this condition OUTCOME: Better use of Healthcare Resources for minor ailments
15 Advertising drives POSITIVE Consumer-Pharmacist engagement RESEARCH INSIGHT After advertising, Pharmacist Recommendation had positive & significant impact on consumer choice The ad made me more likely to visit a pharmacy for health advice in the future for other minor health conditions 57% Consumers AGREE I will let the pharmacist determine whether Brand FAM is an appropriate treatment for me Only 8% Consumers DISAGREED OUTCOMES 1. Advertising drives More Health Conversations between consumers and pharmacists 2. Advertising Unlikely to drive inappropriate demand for advertised brand
16 S3 Advertising model RECALIBRATES consumer expectations Pharmacist recommendation MORE IMPORTANT to consumers WITH advertising Consumer Driver to buy
17 Pharmacist Results
18 S3 Advertising does NOT influence choices made by Pharmacists Pharmacist - WTP_Pharmacist_cLogit Drivers to Recommend Customer direct request : No request Customer anti-viral appropriate : inappropriate Control Advertisement No significant difference between test & control 3rd most effective : Least effective 2nd most effective : Least effective Most effective : Least effective Less frequent use : More freqeutne use Pharmacist only (S3) : Front of Pharmacy Pharmacy-brand antiviral cream : Lip balm Branded antiviral cream : Lip balm Pharmacist-brand antiviral tablet : Lip balm Brand FAM : Lip balm
19 S3 Advertising does NOT influence choices made by Pharmacists Pharmacist - WTP_Pharmacist_cLogit Drivers to Recommend Customer direct request : No request Customer anti-viral appropriate : inappropriate Control Advertisement 3rd most effective : Least effective 2nd most effective : Least effective Most effective : Least effective Less frequent use : More freqeutne use Pharmacist only (S3) : Front of Pharmacy Pharmacy-brand antiviral cream : Lip balm Branded antiviral cream : Lip balm Pharmacist-brand antiviral tablet : Lip balm ONLY SIGNIFICANT DRIVER TO RECOMMENDATION - Whether therapy appropriate Brand FAM : Lip balm
20 S3 Advertising does NOT influence choices made by Pharmacists INSIGHT Vast Majority of Pharmacists comfortable referring up or denying consumer request if medicine not appropriate I am comfortable to deny a customer s direct request for a specific medicine if I consider this medicine is inappropriate for the customer Only 14% of Pharmacists DISAGREED I am comfortable referring customers to their GP if necessary Only 9.6% of Pharmacists DISAGREED OUTCOME: Pharmacists appropriately triage consumers & better suited course of action recommended
21 QUALITY USE OF MEDICINES CONCERNS ADDRESSED MYTH WHAT THE EVIDENCE SAYS
22 QUALITY USE OF MEDICINES CONCERNS ADDRESSED MYTH Medicine advertising just sells the brand advertised WHAT THE EVIDENCE SAYS S3 Advertising increases consumer awareness of: Therapeutic options available Pharmacy Services S3 Advertising drives more health conversations between pharmacists and consumers
23 QUALITY USE OF MEDICINES CONCERNS ADDRESSED MYTH Medicine advertising just sells the brand advertised Medicine advertising drives inappropriate demand WHAT THE EVIDENCE SAYS S3 Advertising increases consumer awareness of: Therapeutic options available Pharmacy Services S3 Advertising drives more health conversations between pharmacists and consumers Consumer comfortable with Pharmacists determining whether advertised S3 product is right for them
24 QUALITY USE OF MEDICINES CONCERNS ADDRESSED MYTH Medicine advertising just sells the brand advertised Medicine advertising drives inappropriate demand Pharmacists buckle under pressure of consumer demand generated by advertising WHAT THE EVIDENCE SAYS S3 Advertising increases consumer awareness of: Therapeutic options available Pharmacy Services S3 Advertising drives more health conversations between pharmacists and consumers Consumer comfortable with Pharmacists determining whether advertised S3 product is right for them Pharmacists appropriately triage consumers and better suited course of action recommended if advertised product not appropriate (referral to GP or alternate product)
25 Benefits of Proposed S3 Advertising Model
26 Benefits of Proposed S3 Advertising Model
27 Benefits of Proposed S3 Advertising Model
28 Benefits of Proposed S3 Advertising Model BETTER QUM OUTCOMES WITH S3 ADVERTISING MODEL!
29 Front of Shop Growth Opportunities 1. Reigniting S3 category 2. Rx to OTC switch (only once S3 advertising fixed!) 3. Minor ailment management/pharmacy services expansion 4. Pharmacists & Complementary meds helping consumers separate wheat from chaff Evidence-based Complementary therapies Informing consumer choice 5. Off-Shore demand for Australian consumer healthcare products broadening Continues to spread across more OTC categories Evolving off shore regulations Proudly sponsored by:
30 Proudly sponsored by: Thank You
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