Consumerization Drives Growth at Merck Consumer Health

Double digit sales growth reported for Q1 2015

12-Jun-2015 - Germany

The Consumer Health business of Merck has reported very strong net sales in Q1 2015, driven by the continued success of consumer-focused innovation amongst its key brands.

Consumerizing key brands for strategic growth

Merck’s Consumer Health division has delivered significant growth through applying consumer insights to a number of key strategic brands that have traditionally been associated with the prescription space.

For example, in Germany Merck’s vitamin D supplement Vigantoletten has been recently transitioned from the Merck Serono business to the Consumer Health business. To drive growth, Consumer Health launched the new, consumer appealing Vigantoletten Sticks. These fast melting micro pellets, supplied in sachets, deliver real innovation to the consumer as they have a great taste and can be taken without water – providing more convenience and ease of use for a product previously targeted rather toward healthcare professionals.

Similarly, for Floratil in Brazil, Merck adopted a high profile marketing strategy which sought to tackle the issue of diarrhea – a taboo subject in many countries. Moving the product from behind the counter to visible-in-store, branded displays, the campaign, which included outdoor, print, digital and PR elements, resulted in 70% of competitor users and 46% of non-users surveyed considering using the product; also, annual sales of Floratil in Brazil grew organically above 20% in 2014 compared with 2013.

Thirdly, in Indonesia, Merck faced significant challenges around value creation for the former prescription-driven Vitamin B supplement Neurobion. The Marketing team took a dual approach which combined the best of its direct-to-consumer knowledge, with continued engagement with Key Opinion Leaders. Through re-branding, the creation of new packaging and a national Neuropathy Awareness Campaign, the brand became the largest multi-national company OTC brand in Indonesia for the first time. Sales significantly outstripped projections, supported by strong consumer uptake.

“Our business has increasingly applied a consumer-centric innovation and commercialization approach to brands traditionally associated with the prescription space, driving interest and engagement with consumers. As our sales demonstrate, this approach is delivering significant growth”, said Uta Kemmerich-Keil, CEO and President of Merck’s Consumer Health business, who has just celebrated one year in position.

https://www.bionity.com/en/news/153247/consumerization-drives-growth-at-merck-consumer-health.html