A Natural Fix

Homeopathic OTC products offer potential for increased sales — with a little effort.

Many American consumers are turning to complementary and alternative medicines (CAM), as well as herbal products and dietary supplements, in pursuit of health and well-being, and supermarket retailers that educate themselves and their customers regarding the possible benefits of these products have an opportunity to benefit.

According to the National Center for Complementary and Alternative Medicine (NCCAM), a part of the National Institutes of Health in Bethesda, Md., at least 38 percent of adults use CAM, including homeopathic products that stimulate the body's ability to heal itself.

Booming With Boomers

While such products are used by consumers of all ages, the growing over-50 crowd appears to be a lucrative market — if the products are effectively promoted and merchandised.

A 2010 survey conducted by NCCAM and the Washington-based AARP showed the use of CAM products was especially popular among those between the ages of 30 and 69, with the peak at 44.1 percent among respondents in their 50s.

Meanwhile, a proprietary study conducted by Boiron, a major producer of homeopathic products, showed that 46 percent of women shoppers have successfully used a natural/ alternative over-the-counter (OTC) medicine in the past, while 37 percent who haven't done so are interested in trying one.

"Today's consumers are more in tune with their bodies, and therefore are much more respectful and conscious of what they are putting into them," says John Durkin, VP of sales and marketing at Newtown Square, Pa.-based Boiron USA.

Opportunities for Grocers

Dave Lesiak, director of sales at Los Angeles-based Hyland's Inc., a leading developer of homeopathic medicines, says the fact that sales of these products have been steadily increasing in recent years demonstrates that consumers are becoming more aware of them as options for self-medication. "Increasingly, they are seeking all-natural, safe and effective products that have no adverse side effects," Lesiak says. "Categories such as analgesics, baby, cough/cold and first aid hold noteworthy appeal."

So how should supermarket operators leverage this interest?

Companies such as Hyland's and Boiron devote considerable resources to building consumer awareness. Lesiak says Hyland's provides pharmacists with continuing-education courses, customer-specific sampling with high sample-to-purchase conversion rates and consumer media campaigns designed to reach targeted demographic groups. According to Durkin, media advertising for Boiron products last season included television, magazine and digital advertising. Additionally, the company uses social media and product-specific websites to engage consumers.

Merchandising Strategies

"In-store signage and displays are an effective way to communicate the benefits of health-and-wellness products, as well as a way for grocers to communicate to their customers that their store is at the forefront of the health-and-wellness trend," Durkin suggests.

Meanwhile, Lesiak says that shelf signage at the point of sale has proved to be one of the best and most effective merchandising methods. "These promote consumer comparisons of allopathic versus natural OTC options and, when combined with a special price feature, promote both awareness and trial," he says.

Moreover, he adds, incorporating appropriate SKUs in themed marketing initiatives within targeted category conditions, such as analgesics, baby or cough/cold, can build incremental sales. Durkin and Lesiak also recommend that grocers merchandise homeopathic medicines within traditional categories rather than with natural products only.

"This arrangement supports point-of-purchase product, ingredient and price comparisons," says Lesiak.

Finally, Durkin emphasizes the importance of grocers with in-house pharmacies educating pharmacists and pharmacy techs about the therapeutic benefits of homeopathic medicines.

"Today's consumers are more in tune with their bodies, and therefore are much more respectful and conscious of what they are putting into them."

—John Durkin, Boiron USA