UK POM To OTC: Analysis Of Success

Branded pharmaceuticals which have switched from Prescription-Only Medicine to Over-The-Counter status in the UK have generally achieved better sales if they have been able to leverage their prescription heritage than those which have not, although there are some significant exceptions, according to a new study from James Dudley Management, entitled Analysis of Success: POM to OTC In the UK. Moreover, it says, brands which continue to maintain a reasonable level of doctor prescribing after the switch tend to be successful.

Until about 1992, there were two schools of thought about the branding of switched products, says the study. Companies such as Reckitt & Colman, Bayer and Kabi believed that maximum marketing advantage could be gained from exploiting consumers' existing knowledge and experience about a product through retaining its preswitch brand name - exploiting its prescription heritage. Others like Crookes Healthcare, Janssen and Marion Merrell Dow used a new brand name when launching a switch. However, by the end of 1992 most manufacturers had begun to accept that dual branding provides fewer advantages than common branding between prescription and OTC versions.

Rx Heritage "Must Not Be Confused With Rx History" In general, says the study, it is safe to say that brands which retained all or part of their prescription brand name have done better than those which switched with a new name. Nevertheless, it continues, the prescription name only adds considerable value in cases where the prescription brand was successful. While a prescription heritage is a key marketing endowment for a brand switching to OTC status, a prescription heritage must not be confused with a prescription history.