Consider the alternatives

There are few afflictions more common than the common cold. According to the National Institute of Allergy and Infectious Diseases, U.S. adults have an average of two to three colds per year, while children have even more. And over-the-counter (OTC) cough and cold remedy manufacturers benefit from that fact, according to global market research firm Mintel.

Quoting the Centers for Disease Control, Mintel reports that roughly 80 percent of infectious diseases (including the common cold) are transmitted by touch. Because the hand-washing habits of the populous tend to fall short as a preventive measure, people often have to turn to various remedies to fight their cold symptoms.

Overall sales of cough, cold, flu and allergy remedies in the United States grew 16 percent between 2009 and 2014, reaching $7.9 billion, according to Mintel’s April 2015 report, “Cough, Cold, Flu and Allergy Remedies — US.” Store brand products now account for 30 percent of the market. Traditional OTC remedies are popular. More than 80 percent of adults with a cough, cold, sore throat or the flu use them, Mintel says.

But so are “natural” and alternative remedies. Mintel found that about 70 percent of adults use one or more alternative treatments such as homeopathic remedies, vitamins, herbs, home remedies or bed rest. And many do not treat their symptoms at all, simply letting colds run their course.

Homeopathic medicine, based on the idea that the body has the ability to heal itself, was founded in Germany in the late 1700s and is commonly practiced in Europe, according to WebMD. Homeopathic remedies contain a small amount of an active ingredient, usually from a plant or mineral, and aim to enhance the body’s normal healing and self-regulatory response. They have been regulated in the United States since 1938 and are considered to be safe.

Not so niche

Natural and homeopathic remedies are surging out of the niche markets and into the collective consciousness of the mainstream consumer, says Matt Royer, senior project manager for New London, Conn.-based Sheffield Pharmaceuticals. Most retailers are looking for homeopathic store brand equivalents in each category of cough and cold remedies, he adds.

“We see retailers looking to add not just store brands to existing homeopathic and natural items, but the desire to have a natural store brand item to compete with a drug item anywhere it is possible,” Royer reports.

Category growth is in all-natural products, agrees Len Smith, vice president of retail sales for Purine Pharma LLC, Massena, N.Y.

“We’re seeing a lot of interest in all-natural products.… The younger moms (and dads) were raised on organics, on fresh, all-natural products, and they feel all-natural ingredients are safer and better for their children,” Smith observes.

Purine Pharma is currently introducing a line of all-natural cough syrups.

“We see that as a growth area. Consumers want all-natural remedies instead of chemicals,” Smith says.

Trends favor natural ingredients because consumers don’t want to worry about side effects, says Harold Baum, managing director for Dyna-Tabs LLC in New York.

Smith suggests retailers start putting programs together to expand their all-natural product offerings.

“I believe in partnering with manufacturers. … When you start partnering more, innovation will happen,” Smith says.

Another important emerging product trend is one that serves the 40 percent of the population that has difficulty swallowing, Baum says. Dyna-Tabs’ edible oral strips dissolve on the tongue and do not require water to wash down.

Convenient formats such as dissolving medications also work well for children, who don’t much like taking medicine, and people on the go, Royer points out.

Royer also advises retailers to review national brand sales data to find the store brand potential in niche areas.

Strive to help

In addition to formulations and formats for cough and cold remedies, retailers will want to carefully consider the products’ packaging. Cleverly designed packaging can be helpful to under-the-weather consumers, too, Baum says. Bold colors could identify the product’s purpose. For example, he explains, red could indicate the product will stop symptoms. Green could symbolize its natural attributes.

Packaging “has to be brisk, sharp,” Smith adds. “It has to have eye appeal, make the consumer want to buy it. It has to jump out.”

Consumers also appreciate simple, easy-to-open packaging that produces as little waste as possible, Baum says. He also advises making the type large enough so that it is easy to read, and using color pictures to illustrate how to use the product and what the product will do for the consumer. Single-dose droppers, which Purine Pharma offers for its eye drops, are an innovation and a convenience that Smith says retailers should offer in private label products as well. Inverted droppers, which are built into the bottle cap and eliminate the need for a separate dropper unit, will save retailers on production costs, he adds.

Get the word out

On the marketing front, Royer advises retailers to target some consumers’ preference for homeopathic and herbal remedies in relation to traditional remedies while addressing their fears over whether the products are safe and effective. He suggests using blogs, social media, online media and publications aimed at mothers and other consumers.

Retailers should educate consumers about their cough and cold lineup overall, too, Smith adds.

“Tell them: ‘Here’s what our brand offers,’” he says.

From a merchandising standpoint, Smith says, retailers should intermingle the store brand products with comparable branded products.

“That’s really important. You’ll make a lot more profit from store brands, but you’ve got to show the consumer it’s as good as or better than the brand,” he says. “You’ve got to be willing to advertise that aggressively. Drive your store brand. It’s your brand.”

Baum also advises them to cross-merchandise products on clip strips, especially during cold and allergy seasons. Store brand cough and cold remedies could be placed in the cough and cold section, in the natural vitamin section, in center store and at checkout, he explains.

As Mintel points out, there is plenty of opportunity to win over consumers in this category, because product loyalty is not strong. Only about half of adults stick with the same remedies consistently. Moreover, about 20 percent prefer to experiment with new products. Younger adults, aged 25 to 34, are more likely than average to experiment.

Do consider adding homeopathic, natural and organic cough and cold remedies to the store brand mix.

Don’t discount the importance of convenience in product format.

Do educate consumers about the store brand cough and cold lineup.

Don’t limit placement of cough and cold remedies to cough and cold aisle.