The role of advertising in communicating new OTC indications

1
The role of advertising in communicating new
OTC indications
2
Agenda

• OTC market
• Media market
• Role of advertising
• Legal environment
• EU accession
• Useful links

3
OTC market in Poland2003
12,0 vs 2002
658 mio Euro

Source IMS Dataview, OTC Bulletin
4
OTC market development
12
3
-2
12
29
37
11
-0,2
-3
6
-8
5
Source IMS Dataview
5
OTC market - value () 2003 vs 2002
Source IMS Dataview
6
OTC market TOP 15 corporations 45 of OTC
market2003 vs 2002
Mln PLN
EV Index
Source IMS Dataview
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Summary

• Polish OTC market
• 658 Mln Euro of Sales Value in 2003
• Market in growth of average 14 for the last 6
  years
• Main drivers of growth
• New products launched (new indications, OTC
  switches)
• Price increases of existing products
• New, modern (more expensive) mix of products used

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Media market - dynamics of advertising spends
Mio PLN
Mio PLN
Pharmaceuticals (Gross)
Total Market (Gross)
23
6
5
7
23
49
8
33

• The pharmaceuticals category is constantly
  growing
• The total advertising market remains stable
• At the EU accession risk of advertising price
  increases by TV stations due EU regulations on
  advertising time limits (expected changes in TV
  programming inventories leading to reduction of
  advertising brakes and by that to the price
  increase)

Source Expert Monitor
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ATL trends Media Mix
Source Expert Monitor, Media Watch, Amer Nielsen

• TV continues to be the dominant channel on the
  ATL scene followed by magazine advertising
• Radio shows stable position across all years,
  while Outdoor is still not able to re-cover its
  position after introduction of alcohol / tobacco
  ban in Y 00

(based on gross expenditures)
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Educational role of advertising

• one of few information sources on OTC drugs
• makes the consumer aware on
• treatment possibility
• treatment methods, their advantages,
  disadvantages
• treatment products portfolio

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Agenda

• OTC market
• Media market
• Role of advertising
• Legal environment
• EU accession
• Useful links

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(No Transcript)
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Advertising legal environment

• Definition an activity where information and
  encouragement to use is provided to promote the
  prescription, supply, sale or consumption of
  medicinal products
• advertising to the general public
• advertising to pharmacists, doctors and
  wholesalers
• visits by medical and sales representatives
• supply of samples (doctors only)
• sponsorship of promotional meetings and
  congresses attended by doctors and pharmacists

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Advertising legal environment

• General rules defined in the Act of 6 September
  2001 concerning pharmaceutical law.
• executive details laid down in the Resolution of
  Ministry of Health concerning the advertising on
  medicinal products (Dziennik Ustaw from 2002 No
  230 pos.1936), which entered into force on 1
  January 2003.
• new law is in line with the EU provisions on
  pharmaceutical advertising laid down in Title
  VIII of the Community code.

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New Pharmaceutical law - Oct 2002

• OTC advertising allowed in all media
• content of the advertising should be in line with
  the Summary of Product Characteristics (SmPC)
• should objectively present product and encourage
  rational use
• must not be misleading
• must include product information, name of
  responsible entity and the respective warning
• comparisons, referrals to recommendations, using
  medical professionals not allowed
• not allowed in tuberculosis, sexually
  transmitted diseases, cancer, insomnia, diabetes
• Not allowed offering or promising any benefits
  in direct or indirect way in exchange of
  providing proof that drug was purchased

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(No Transcript)
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Role (3B) of the Health Authorities

• 1. BALANCE
• Ministry of Health defines it role as support for
  
• healthy growth of the OTC market
  (self-medication)
• safe usage of OTC products without abuse
  (safety)
• 2. BALANCE
• Future priorities
• Mass Market further development restrictions
• abuse of usage
• care about pharmacies
• Regulations of advertising in the fields
• food supplements legal claims
• internet
• 3. BALANCE
• OTC freedom (also OTC switches) can increase
  once education level is high enough

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Health Authorities Tools to exercise its role

• Education of the consumer
• awareness of OTC usage increases over years
• OTC information main sources media, doctors,
  pharmacists
• media - 5 seconds claim informing about
  necessity of reading leaflet or consulting doctor
  or pharmacist before usage
• Control of law compliance - Chief Pharmaceutical
  Inspector (GIF)
• Cooperation with pharmaceutical industry on
  Advertising Code
• PASMI - working out a voluntary Code of
  Advertising Practice for non-prescription
  medicines (such a Code already exists for the
  advertising of prescription medicines to health
  professionals)

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Education of the consumer in practicePolish
experience

• 5 seconds safety claim for drugs advertisings
  since Oct 2002
• Recent (May 2004) study on the educational action
  and its effect on consumers behaviour
• Research conducted by Polish biggest research
  institute SMG/KRC
• Omnibus survey, on a nationwide, representative
  sample of Poles aged 15-75 (N1000)
• The main research objective was
• To determine the level of awareness of the safety
  message among OTC users
• To determine the influence of the message on the
  OTC users actual behaviour

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Spontaneous prompted awareness of the 5
safety claim message

Spontaneous
Prompted
Semi spontaneous
Please try to recall the ads for medicines that
you have recently seen or heard. What
characteristic elements appear in these ads? What
is usually said or shown in an ad for a medicine?
Do you think that the information what to do
before using a medicine appears in ads for
medicines? What information is it?
Have you ever seen or heard the following
statement in an ad for a medicine before taking
the medicine, read the leaflet or ask a doctor or
a pharmacist.
N846, consumers who bought OTC medicines in the
past year
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Reasons for placing the 5 claim as seen by OTC
users
What do you think, why is this information
communicated in ads for medicines
N846, consumers who bought OTC medicines in the
past year
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Consumers aware of the 5 tag are more likely to
read the leaflet, but no difference in usage of
OTC products is visible
Please tell me, whether before taking an OTC
medicine for the first time, do you read a
leaflet attached to this medicine?
Please think about the time that was a year ago
and tell me, whether you read the leaflet
attached to such medicines equally often, less
often, or perhaps more often than you do now?
Groups as regards recall of elements of the 5
claim
the same
more often
always
sometimes
rarely
never
less often
no recalled elements of the 5 claim
N176
any element of 5 claim
N670
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EU accession - Advertising expected changes

• changes in local legislation as of May 1st
• more power for GIF (Chief Pharmaceutical
  Inspectorate) to execute decisions on
  modification of advertisement in question (e.g.
  removal of posters, POS materials)
• the list of people not eligible to advertise
  drugs has been expanded by pharmacists and
  scientists
• more power has been given to execute decisions
  on modification of advetisement in question to
  the Chief Pharmaceutical Inspector (who is in
  charge of vigilance over advertisement of
  pharmaceuticals)
• advertisement can not refer to recommendation of
  health care professionals

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Health Care Sector useful links

• Ministry of Health (General Policy
  Reimbursement) www.mzios.gov.pl
• Urzad Rejestracji Leków (Drug Registration
  Agency DRA) www.urpl.gov.pl
• NFZ (Narodowy Fundusz Zdrowia - Reimbursement)
  www.nfz.gov.pl
• Ministry of Finance (Price Controls
  Reimbursement) www.mf.gov.pl
• Ministry of Economy, Labour abd Social Policy
  www.mpips.gov.pl
• Polish Information and Foreign Investment Agency
  www.paiz.gov.pl
• Polish Association of Self-Medication Industry
  www.pasmi.pl/
• IMS Health www.imshealth.com
• AcNielsen www.acnielsen.com/pl
• Market Research agencies association
  www.ptbrio.pl/