I just came back from the Annual Executive Conference of CHPA in Naples, Florida, where the focus was “Consumer Centricity” and for which RL&A was a sponsor. One of the presentations focused on OTC purchasing behavior and was particularly interesting to me – someone who doesn’t personally think about the price of drugstore items that I need for myself or my family: If I have a reason to purchase something, be it an OTC or HBA product, and the price seems reasonable relative to other products on the shelf, I will usually buy it. The reason for this cost acceptance might be because I am usually in the store in the first place to purchase a prescription product, which for me, makes the OTC prices pale in comparison due to what seems like increasing rising co-pays we pay with our drug coverage (I am forever amazed at how much the co-pay is on my short list of medications).

The more likely reason, however, for my OTC price acceptance is that I am more fortunate than most in that I don’t have to choose between purchasing an OTC and buying food for my family. This means I don’t have to spend hours figuring out/researching where I can get the best price/value/discount for what I need to buy in the drugstore. Most consumers do, however, and they put a lot of thought and energy into it. I understand that price is not something that OTC brands can always control completely and is often dependent on the retailer. But I believe that more time needs to be spent thinking about how to capture those consumers who are shopping based on price and how to reach them with your special offers and value proposition. Obviously there are traditional marketing channels, like TV and print, but the price of these traditional channels is high, and typically the advertising focus needs to be on brand awareness vs. value/pricing. Social media and online/digital channels, however, offer brands an opportunity to target those customers who are shopping based on price/value, right down to where they live, shop and behave socially, capturing their interest when they are researching what they want to buy.

Which brings me back to the real world. When I left the conference I went to visit some family members for a few days, and this price/value focus really hit home – right in my own backyard, so to speak. If you’re a mom with limited free time (or even the money for gasoline) to physically shop around for the best price/value of something you need, like an OTC, or, you are someone struggling to make ends meet – which so many of us are – and the choice is between two similar products with very different pricing, or, even to buy or not buy something that may only be marginally necessary, it comes down to a basic but new marketing strategy: reaching these consumers where they are (online) vs. having them find you. Let your consumers know what you are offering, such as social coupons or rebates, etc., that will help them make the purchase decision before they reach the store.