Case: Maximizing OTC sales with consumer behavior insights Cases > Maximizing OTC sales consumer behavior insights Over-the-counter (OTC) medications, especially painkillers, are a cornerstone of consumer health in Denmark. Our market research study helped a global consumer health leader refine their sales strategy, focusing on the critical drivers behind OTC purchasing decisions. Our key actions and insights unfolded as follows: Assisted a global company in boosting OTC sales by analyzing Danish consumer behavior. They needed insights into why consumers choose pharmacies over grocery stores for OTC medications. Conducted a survey revealing convenience as the top driver and visibility issues in grocery stores. Provided data tools and reports to refine their market strategy and support channel partners. • Enabled optimized product placement, improving sales and enhancing consumer access. Overview A global consumer health company approached us to enhance the performance of their sales channel partners in Denmark. While they understood the significant potential of the OTC market, they needed detailed insights into consumer behavior to refine their approach. The challenge was understanding where, why, and how Danish consumers decide between pharmacies and grocery stores when purchasing OTC medications. The Challenge The client sought to understand the behavioral drivers and barriers influencing consumer decisions in the OTC market. Their objective was to equip themselves with the knowledge necessary to guide their channel partners and optimize product placement. Recognizing that consumer behavior plays a pivotal role in this sector, they aimed to explore how different factors such as location, convenience, and product range impacted the choice between grocery stores and pharmacies. Jeppe Hæstrup Kamstrup, Consultant in Advanced Market Research at Signum, shares: “The client wanted a solid foundation to improve their approach. They sought clarity on what motivates Danish consumers and how these insights could strengthen their market position.” The Solution To address this, we conducted a comprehensive data-driven analysis. We started by identifying key objectives with the client through a collaborative workshop. We outlined the focus areas from this session and designed a quantitative survey. The survey was conducted with a broad sample of Danish consumers, specifically targeting those who had purchased OTC medications from grocery stores or pharmacies. Key aspects of our solution included: Workshop and alignment: Together with the client, we mapped out the key insights that would enable more effective market strategies. This workshop allowed us to fine-tune the areas of investigation and ensure the survey dimensions would deliver the most relevant findings. Survey design: We crafted a quantitative survey of 1,002 qualified respondents to capture drivers and barriers to OTC purchasing behavior. The focus was on understanding why consumers choose pharmacies versus grocery stores and identifying potential areas of improvement in product visibility and range. Data analysis and insight generation: Once we collected the data, we analyzed the responses, mainly focusing on the practical elements influencing consumer decisions. This included factors like convenience, product availability, and the role of professional advice. Interactive data tool: To ensure ongoing value for the client, we developed a customized Excel-based insight tool, allowing the client to explore and segment the data independently. This provided the flexibility to generate ad-hoc insights long after completing the initial project. Topline report: We also delivered a topline report highlighting key findings, including significant trends in consumer behavior and the competitive advantages of different sales channels. Jeppe explains, “Our aim wasn’t just to hand over data; we gave the client a tool that enabled them to explore consumer insights dynamically, identify trends, and adjust their strategy accordingly.” Our analysis revealed several critical insights: Convenience as the top driver: Danish consumers prioritize convenience when choosing where to purchase OTC medications. Pharmacies excel in offering expertise, while grocery stores benefit from their convenient locations and longer opening hours. Visibility issues in grocery stores: One of the key barriers for grocery stores was the lack of product visibility. Many consumers reported difficulty locating OTC products or forgetting that they were available in grocery stores. Painkillers as a top priority: Across both pharmacies and grocery stores, painkillers remain the most critical category for consumers, driving a significant portion of OTC sales. Strategic product placement: Many consumers (75%) purchase OTC products as part of a more extensive shopping trip, such as when buying groceries or picking up prescription medications. This insight suggested a potential for better in-store marketing and placement of OTC products. The Results With these insights, the client significantly enhanced their market strategy. The data-driven approach provided a clear roadmap for supporting their channel partners and improving product positioning. The survey findings highlighted opportunities to optimize product placement in grocery stores by addressing visibility barriers and expanding the range of available products. Additionally, pharmacies were recognized for their strength in offering expert advice. Still, convenience gave grocery stores a competitive edge, particularly in urban areas where quick access to products is crucial. Jeppe reflects on the project: “We provided the client with a tool that captured valuable insights within a defined timeframe, allowing them to identify key segment differences. This tool has been especially useful in conversations with retail partners, helping challenge assumptions by referencing concrete data. It’s given them the ability to back up their strategy with clear numbers when faced with ‘that’s not the case here’ pushback.” One particularly valuable finding was that 75% of consumers purchase OTC products alongside other errands. This created a strong case for improving product visibility and marketing strategies in grocery stores, potentially increasing sales by capturing consumer attention more effectively during routine shopping trips. Further analysis from the interactive tool enabled the client to segment consumers by geography, employment status, and purchasing habits, allowing for a tailored approach to marketing efforts across different regions and demographics. This level of granularity was pivotal in identifying broad trends and specific, actionable strategies for different shopper segments. By providing these insights through both a report and an interactive tool, we ensured the client could continue exploring the data and making informed decisions well beyond the scope of the initial study. The bigger picture: OTC medicine in the Nordic countries Although this study focused on Denmark, the findings have broader implications for the Nordic region. Similar cultural and economic characteristics across Sweden, Norway, Finland, and Iceland suggest that many of the consumer behaviors observed in Denmark may also apply to other Nordic countries. Strict regulations and high standards shape the OTC market in these regions, but each country has its unique dynamics. In Sweden, for example, OTC products have been sold outside pharmacies since 2009, while Norway still limits most OTC sales to pharmacies. Understanding these nuances is critical for pharmaceutical companies looking to access the Nordic countries or improve their positioning. In conclusion, this project underscores the importance of consumer behavior insights in shaping effective market strategies. By exploring the practical drivers behind OTC purchases, our client strengthened their approach, built better relationships with channel partners, and ultimately served Danish consumers more effectively. For more information, please contact Søren Esben Hansen Chief Advisor, Team Lead Advanced Market Research seh@signumlifescience.com +45 20 570 670 You might also like Medice’s ADHD app launch: a digital health success story Learn how Medice launched a commercially successful digital health app for ADHD families in Scandinavia. Get insights on challenges, strategies, and results. Inspire me Novo Nordisk’s analysis of demographic and sales correlations Learn how Novo Nordisk uses data science to uncover correlations between demographics and sales, driving innovative strategies and better HCP engagement. Inspire me The role of patient insights in improving immunotherapy for melanoma See how patient insights improved malignant melanoma immunotherapy, transforming frequent infusions into a valued aspect of personalized patient care. Inspire me
