Case:
Maximizing OTC sales with consumer behavior insights

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 to understand where, why, and how Danish consumers make decisions between pharmacies and grocery stores when purchasing OTC medications.

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Challenge

The client sought to gain a deeper understanding of 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.”

Solution

To address this, we conducted a comprehensive data-driven analysis. We started by identifying key objectives with the client through a collaborative workshop. From this session, we outlined the focus areas 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:

1. 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.

1. Survey design: We crafted a quantitative survey of 1,002 qualified respondents to capture drivers and barriers of 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.

1. Data analysis and insight generation: Once we collected the data, we analyzed the responses, particularly focusing on the practical elements that influenced consumer decisions. This included factors like convenience, product availability, and the role of professional advice.

1. 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 the initial project was completed.

1. Topline report: We also delivered a topline report that highlighted key findings, including major 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 above all else 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 in 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 larger shopping trip, such as when buying groceries or picking up prescription medications. This insight suggested potential for better in-store marketing and placement of OTC products.