Term Paper Otc
The world market for Over The Counter pharmaceutical products was estimated at $51.45 billion dollars in 1995 and was expected to sustain a compound annual growth rate of 7 percent through the year 2004. Among the factors that are driving this growth: more educated consumers taking control of their health care, governments and managed care organizations trying to reduce health care expenditures, and pharmaceutical companies trying to expand the product life cycle of key brands.
The facts surrounding this case is that OTC (Over The Counter) Market is typically divided by both geography and product segment. The biggest markets are the United States, Japan, Germany, the United Kingdom, and France. In this case study we have found that the means of self- medication changed according to the particular medical situation. The behavior of OTC consumers changed according to the particular medical situation: when suffering from an ailment, consumers either self medicated, visited a doctor, applied a home remedy, or did nothing at all. There is a development pattern in the OTC industry. In the early stages of the industry life cycle, consumer choice was limited to general-purpose products. As OTC products evolved so too did new competitors, specialty products, and all together new product segments were created. As the growth of developed countries emerged so did their use in OTC medications. Because of this lines of new products or line extensions were created. At the same time product life cycles of old products were being extended by entry into developing countries. The key elements for this evolution were that of new medical technologies and the need to redefine the existing OTC product to remain competitive.
The demographic trends that were most important to the OTC industry were that of aging populations of the United States, Japan and Europe as well as the increasing buying power of consumers in developing countries due to rapidly advancing
The facts surrounding this case is that OTC (Over The Counter) Market is typically divided by both geography and product segment. The biggest markets are the United States, Japan, Germany, the United Kingdom, and France. In this case study we have found that the means of self- medication changed according to the particular medical situation. The behavior of OTC consumers changed according to the particular medical situation: when suffering from an ailment, consumers either self medicated, visited a doctor, applied a home remedy, or did nothing at all. There is a development pattern in the OTC industry. In the early stages of the industry life cycle, consumer choice was limited to general-purpose products. As OTC products evolved so too did new competitors, specialty products, and all together new product segments were created. As the growth of developed countries emerged so did their use in OTC medications. Because of this lines of new products or line extensions were created. At the same time product life cycles of old products were being extended by entry into developing countries. The key elements for this evolution were that of new medical technologies and the need to redefine the existing OTC product to remain competitive.
The demographic trends that were most important to the OTC industry were that of aging populations of the United States, Japan and Europe as well as the increasing buying power of consumers in developing countries due to rapidly advancing