Cold comfort

Seasonal sniffles can boost your winter sales figures

It's that time of the year again. As the seasons change, so too do the purchasing needs of customers ... and it always pays to be one step ahead of the game.

When sales of sunscreen, ice cream and cool beverages begin to dip ever so slightly, then convenience and impulse retailers certainly need to start thinking about the range of cough and cold products they will be ranging and how they will be presented.

It's an unfortunate fact that the average Australian gets a cold between two and four times a year, and a large number of them will go to work even when they are sick. Petrol and convenience therefore provides an ideal opportunity for medicated products to capitalise on the needs of shoppers who are seeking quick relief from their symptoms.

Indeed, whereas once pharmacies were the place where under-the-weather consumers flocked when the sniffles started, all the indications are that the on-the-go cold victim is increasingly looking to convenience and impulse retail outlets to keep him or her on the move. The data shows that unplanned purchasing of medicated products is as high as 21%.

A key growth area for Convenience

The most recent Australasian Association of Convenience Stores State of Industry Report also identifies 'other' confectionery – which includes medicinal – as one of the fastest growing sales areas, with annual growth of some 8%.

In other words, cough and colds products look set to be a key growth area through the convenience channel and it is thus more important than ever that retailers get it right.

Obviously, throat lozenges are a crucial part of the cough and cold product mix, but so too are items such as tissues and hand sanitisers, and retailers need to offer a full range of solutions to medical woes. But how much is too much for the space-challenged C&I retail outlet?

Darryl Jackson, General Manager – Convenience Packs of Remedies Products, which markets and distributes healthcare products specifically targeted to convenience shoppers, is in no doubt that you can have too much of a good thing.

"It is not appropriate for C-Stores to turn into pharmacies ... that's not their business," he said. "However, C-Stores should definitely stock well-known brands in formats that are appropriate for their consumers."

He believes that if a consumer needs to go to a pharmacy for advice or bulk pack formats, then they will probably do so.

John Broome, Nestlé's Head of Marketing – Confectionery & Snacks, agrees.

"On the way to or from work and home destinations, P&C is perceived as extremely convenient and accessible and is used for immediate relief," he said. "However, P&C isn't currently perceived as a viable channel to treat symptoms which require a greater degree of efficacy so, for severe sore throats, shoppers are more likely to shop in pharmacy."

Nonetheless, various studies have shown that usage of sore throat products is high during the day compared to other cold and flu products, indicating that portability is important. A U&A Study Australia report in 2006 found that an overwhelming 81% of people surveyed took a product for their sore throat during the day.

The channel that shoppers buy medicated products from is then influenced by both the convenience of the channel and the severity of the cold or flu symptoms being experienced. It is thus no surprise that manufacturers are bending over backwards to make sure their products are targeted more accurately at the convenience and impulse consumer.

The Convenience factor

Reckitt Benckiser, which produces the hugely popular Strepsils range, recently introduced the resealable Handy Tube pack, to better cater to the needs of its on-the-move consumers.

It says that the new tube, which contains 10 lozenges and fits in to pockets and handbags, is perfect for consumers who purchase Strepsils through impulse channels. It believes these consumers want a convenient, effective treatment while remaining on the go and keeping up with their busy schedules.

"Arguably the biggest opportunity for C&I outlets is to support and capitalise on products which are a good fit with the channel," said Reckitt Benckiser Marketing Director, Frederique Hull. "Strepsils Handy Tubes are a perfect example of this as they are a portable and convenient packaging format, well suited to impulse purchase when consumers are ill at the point of purchase."

While correct ranging is critical in maximising sales and profits, so too is product location and visibility in store, particularly during the winter season.

"Displays and counter units should be placed strategically so consumers can see them to prompt impulse purchase," said Ms Hull. "Purchasing cough and cold products from C&I outlets may not be a planned purchase, but if consumers see the product in-store it may prompt them to purchase if they are suffering from a sore throat."

Darryl Jackson from Remedies Products, which markets products including Herron Vitamin C, Kinetic Vitamins, and Immune Plus tablets, also recognises the enormous potential of the medicinal category, which it says is a fast growing category found both in the health and beauty bay and up front at the check-out.

"Our target market is the on-the-go consumer and we package well-known and trusted brands into portable size formats," said Mr Jackson. "These formats suit occasions such as top-up purchases, product trial, emergency, and travelling."

He believes that the major difference between purchases in the various channels is in the need state.

"A consumer of Remedies cough and cold products typically will buy on impulse rather than as a destination purchase," Mr Jackson said. "In saying that, we receive lots of feedback that consumers purchase our product because they recognise that our smaller dose packs is just the amount they require to get them by."

Instore visibility drives impulse sales

With cough and cold products being very much a seasonal category it is therefore doubly important that sales are maximised during the peak sales period between April and August. Placement and visibility of in-store displays, shelf location and counter locations are key to encouraging impulse purchases for consumers who are suffering symptoms but not planning the purchase.

"Strepsils Handy Packs come in a shelf-ready tray; ideal for counter top placement," said Reckitt Benckiser's Ms Hull. "We have also created hang sells and other pieces of POS to use around the store."

For its part, Nestlé recognises that price promotions alone are not highly effective in driving incremental sales ... and so display is critical.

"In-store visibility, either on counter, or in the path to the counter is key for driving impulsive sales during the cough and cold season," said John Broome. "This is especially true of target shoppers who would normally leave their symptoms untreated."

Nestlé is responsible for a number of the most popular cough and cold products through convenience, namely Butter Menthol, Soothers, and Anticol.

Each has a different role and therefore a different target consumer. The core target for Butter Menthol is comfort seekers who want mild relief from sore throats without compromising on taste, while Soothers are for people seeking to ease everyday sore throats brought on by things like smoking, late-night talking, lack of water, or allergies. Anticol is a more powerful, medicated lozenge providing symptomatic relief of sore throats.

As in all categories, new innovation is key to maintain excitement and sales, and Nestlé has just launched Butter Menthol Liquid Centres, which will be promoted by a $3 million outdoor, print and online campaign.

"Unlike other lozenges Liquid Centres target and coat sore throats, easing the pain and providing effective, comforting relief," said Mr Broome. "Results from the Soothers Liquid Centre launch indicate that Liquid Centre purchases are incremental to the category."

And that's got to be great news for convenience and impulse retailers.

For its part, Reckitt Benckiser says that the Strepsils range can be counted on to provide effective relief for sore throat occasions varying in severity.

There are a variety of variants in the core Strepsils range – the lead variant being 'Honey & Lemon', other variants include 'Orange', 'Sore Throat & Blocked Nose' and 'Original'. Products in the core range are available in small packs containing 16 lozenges, as well as value packs containing 36 lozenges. Strepsils Plus is also available to ease the symptoms of a burning and painful sore throat.

Innovation maintains the excitement

Strepsils products are heavily supported throughout the key winter season both in-store and through a range of media.

In terms of new innovation, apart from the Handy Tube packaging format, Reckitt Benckiser is also introducing Strepsils Cool to treat a burning sore throat. The company says that Strepsils Cool has a unique formulation which acts fast to provide an immediate cooling sensation with lasting relief.

"It is important to have representation of key products and segments from the category in C&I outlets, while offering premium formats to offer value added benefits and also innovative products which create new news and generate excitement in the category," said Reckit Benckiser's Frederique Hull. "It is also important that C&I outlets capitalise on new products with significant media investment behind them."

In other new innovation news, the Remedies Group has recently launched its Coughs and Colds "Infection Fighting Centre, as well as its 'Immune Plus – 2 Tablets' format in time for the upcoming flu season. It says Immune Plus is a natural medicine that people can boost the body's immunity against viruses.

So then, these are then exciting times in the cough and cold products department and there is definitely an opportunity for further growth in convenience. In a channel where convenience and portability are key, there are a number of innovations and product developments that look set to give the always-in-a-hurry generation what they need and when they need it to keep going with their busy schedules.

As always, critical to delivering the results to match the profit potential will be ensuring the correct product range is on offer given the space limitations, and in the right location in-store to capture impulse purchases. If done right, the sales results will most definitely be nothing to sneeze at.