HEALTH: COUGH-COLD AND FLU

Technical Targeting

Cough-cold/flu remedy suppliers emphasize digital touchpoints and promotions By Debby Garbato

Undoubtedly, COVID-19 has dramatically altered the shopping journey, with more consumers researching in-store purchases online or utilizing a wider array of digital purchasing options. The shift is more pronounced among OTC cough-cold/ flu remedy suppliers, which have had to revamp marketing practices in a category typically purchased in store at time of need.

E-commerce partnerships with major retailers have taken center stage. Emphasis is on banner ads, digital gift bags, enhanced search, mobile-friendly functions, and quick purchasing and delivery. Some suppliers have even invested in technologies that track consumers’ physical whereabouts, letting them optimize the timing of messages.

“Numbers of touchpoints have increased dramatically,” said Art Rowe-Cerveny, vice president of marketing at PharmaCare US. “There’s Amazon, online ordering, phone ordering, curbside pickup, Instacart, etc. Touchpoints must be serviced from a promotional viewpoint. Are we providing coupons when shoppers log onto a retailer’s site? Do store promotions transfer online? We must also promote on a sponsored product search level, since all retailers use thirdparty data. Before, mainly Amazon and Walmart did. But COVID was an accelerant, changing the landscape.”

According to eMarketer, the CPG industry’s 2021 digital ad spend increased 31.7% to $30.56 billion. Among CPG suppliers, 71.4% purchased mobile ads, with spending totaling $21.83 billion, a 32.4% increase.

Until recently, digital spending by cough-cold/flu product suppliers was limited, said Randy Burt, a managing director at Alix Partners’ consumer products practice. “It’s a ‘need now’ category. E-commerce and digital were underdeveloped. Today, all the touchpoints and shopping journeys make it more challenging. You need the right email communication, social media and ability to interrupt consumer interactions and drive awareness.”

According to eMarketer, the CPG industry’s 2021 digital ad spend increased

to $30.56 billion.

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Sleep Stress

Oscillococcinum®

New strategies facilitate faster responses to consumer behaviors. “We’ve ramped up our capabilities and resources over the past year and can quickly pivot based on learnings from consumers without waiting for FSI and other media results,” said Jim Thornton, director of sales and sales operations at vaporizing rub and ointment supplier Mentholatum. “It’s a shift in how we go to market.”

Timing of changes is crucial. With mask mandates less stringent, consumers are again sneezing. “People have returned to a more normalized life,” said Jason Pellegrini, CEO of Quantum Health. “Kids are back in school and sticking hands in their mouths.” He said Quantum increased promotional spending 25% in recent years, emphasizing digital.

In 2020, the category suffered as winter illness rates declined due to mask mandates and other protective measures. From Sept. 28, 2020 to May 22, 2021, 0.2% respiratory specimens tested positive for influenza, according to the Centers for Disease Control and Prevention. During the three preceding seasons, in contrast, 26.2% to 30.3% tested positive.

For the 52 weeks ending Oct. 21, 2021, sales of cold/allergy/ sinus tablets, the category’s largest sub-segment, declined 8.4% over the previous 52 weeks, according to Chicago-based research firm IRI. Cough syrup fared the worst. Sales dropped 24%.

Tools and Tactics

Marketers have typically relied on demographics and purchasing history. But with more consumers researching products online, the entire shopping journey is important — regardless of purchasing destination. “The more we know about what they’re doing, the more we can provide relevant messaging at the right time,” said Angela Ho, director of marketing at Mentholatum.

Via a sophisticated technology implemented in December, Mentholatum gauges advertising receptivity. It can determine, for example, when a mobile phone is tilted, indicating someone is lying down versus in a moving car. “We can identify where they are in the day,” said Kathy Kloc, assistant marketing manager. Ads with retailers like Walmart have click-to-cart capabilities, making shipping and in-store pickup seamless. “They don’t have to search. It’s about getting products to people at the right time.”

Mentholatum also utilizes online feedback. In promoting its new VaporDuo, it contracted an agency whose million volunteers generate feedback and social media buzz in exchange for free samples and other incentives. “It’s more economical than big influencer efforts,” said Zachary Greenfield, associate marketing manager. “There’s a halo effect. It’s a key component of our marketing tool belt.” Thirty percent of volunteers become loyal customers. The VaporDuo is a combination vapor inhaler/essential oil dispenser.

Digital searches and social media content are popular among the growing numbers of consumers seeking natural or non-oral solutions. “This is especially true of moms, who want more natural ingredients, and boomers, who don’t want drug interactions since they may take multiple medications,” said Ron Gentry, vice president of marketing at Boiron USA. The company’s homeopathic Oscillococcinum flu remedy has no known interactions.

Xlear invests heavily in Google AdWords to promote its Xylitol-based Xlear nasal spray. The natural, nonaddictive spray clears the nose, washes away bacteria and irritants, and is said to prevent certain illnesses, said Nathan Jones, president and founder. “People are also searching for preventative products.”

Larry Page, head of marketing at Zarbee’s, also sees more wellness product research. “Zarbee’s has always been digitally native. We have expanded promotional efforts in the wake of the pandemic and in response to the increasing focus on wellness. We see retail media playing an increasing role, helping us better connect with consumers leading up to and during time of purchase. This continues to be a need-based, in-store purchase. However, with the rise of more immediate delivery options, consumers turn to these options more.” Zarbee’s produces all-natural supplements, immune support and coughcold relief products.

Digital Gift Bags

With fewer in-store shoppers, Walmart, CVS, Albertsons, Fresh Market and other retailers are driving sales by including vendor-sponsored gift bags of product samples with online orders. Bags work well with merchandise that provides immediate gratification. Xlear is in CVS’ sample bags. Pharmacare uses bags to promote its Sambucol black elderberry supplements and homeopathic cold and flu relief. Bags also tout Quantum’s tasty organic zinc-infused cough drops and its herbal cold sore cream and bandage. Quantum uses online influencers and banner ads too.

Offering multiple vendors’ items, bags are often sent to a general audience. Some retailers have specific targets, including competitors’ customers. “Targeting is much better than it was a few years ago,” Pellegrini noted.

Growing use of data should make sampling and other digital marketing more pinpointed. “There’s more focus on digital and social media,” Gentry said. “Campaigns are more targeted, as data and buying information are more available. Social platforms keep evolving. Consumers embrace these during their purchase journey.”

The digital world should continue diversifying, providing even more marketing options — and challenges. “We used to say, ‘Here’s my TV and print ads,” Pellegrini said. “Five years ago, we didn’t do YouTube or TikTok. Every day, there’s more stuff.” dsn