Chris Bunniss has nearly three decades of global and local marketing experience under his belt; eighteen years with Boots and seventeen with SSL International, where he was global and UK marketing director for Durex and Scholl.
His hands-on approach has taken him deep into the consumer healthcare market, affording deep insight into consumer and trade perspectives: insights that he brings to board level at small to medium-sized businesses in his work with The Marketing Centre.
As customers have taken a more empowered and proactive approach to healthcare, focusing on prevention rather than cure, the industry has responded by innovating and funding growth in wellness. Wearables are a growth area - customers, particularly millennial customers, are more and more accustomed to wellness indicators of blood pressure, pulse and step counts at their fingertips.
Product ranges have become more personalised. Multivitamins, for instance, are now sold as specific ranges for specific demographics, while painkillers are specifically formulated for different types of pain - head, back, and muscle.
However, the biggest change Chris has seen is the massive growth in availability. Goods traditionally available from pharmacies are now sold in supermarkets, high street stores and online.
FAANG companies - that’s Facebook, Apple, Amazon, Netflix and Google - have entered the market, bringing huge warehouses and distribution capabilities which make them a significant threat to traditional players in the market. Their established AI systems allow more sophisticated diagnostics, interactive tools, better quality information and interaction opportunities.
E-commerce is a particular flashpoint for this new competition. The consumer healthcare industry hasn’t been quick to adopt e-commerce, although certain categories - functional foods, vitamins, minerals and supplements - are ahead of the game.
Coupled with changes in government policy - relaxed regulations to make non-urgent medicines available over the counter - this means there’s a great deal of potential for growth in the sector, and it’s not currently being tapped.
Consumer empowerment is an ongoing concern - your customers are more in control of their healthcare options than ever before. They’re looking for greater pricing transparency and direct sales, so they can weigh up their options and buy immediately.
Competition is also on the rise, says Chris: the market is big and growing, and stores’ own brands are good at copying. They’ll bring out their own products with identical active ingredients, and established brands will have to compete on grounds other than price.
With the new markets, including e-commerce, there are new marketing channels. TV adverts used to be the simple route to success; nowadays, a multi-channel approach is called for. Social media channels, bloggers and influencers are key elements for the consumer healthcare marketing strategy, and more businesses are spending more on digital channels in general.
The new consumer healthcare marketplace is bigger. There are more channels to promote through, and more platforms to sell on - and “new” is always exciting. Beyond this, there are opportunities to innovate and partner up - as FAANG companies and influencers enter the market there’s a chance to join forces.
The goal? Competing on grounds other than price. Companies need to be seen as personable and trustworthy to build brand equity and form loyalty. Now that consumers want to talk back to brands, brands can position themselves as a friendly, expert source of information beyond what a self-starter search can reveal. Advice and education will build trust and loyalty, putting brands ahead of the competition who can afford to sell cheap and ship fast.
The basics of marketing in consumer healthcare haven’t changed that much, according to Chris. Customer insight plus product knowledge and expertise equals success. Know your customers and what they want, build relationships, and take yourself beyond being a commodity.
Chris can’t say it enough times: branding is important, and it’s becoming more important with every passing day. The key values to work on are honesty and integrity, as it’s so easy for brands to be damaged. If something goes wrong, it can easily go viral - that’s the nature of social media. One carelessly answered Tweet or out-of-control rumour can go around the world, so crisis management is something to make sure you have covered.
On the whole, consumers still like healthcare brands. When you’re sick, you want to trust the people looking after you. To justify that trust, brands have to reassure customers that they can deliver quality and efficacy in their product. If it does the job, and the brand comes across as a reliable provider, they’ll be back.
Firstly: underestimating the new players. The FAANG companies have huge databases and staggering amounts of customer insight on their side; smaller niche firms are much more agile and can quickly enter the market with products and services that consumers are demanding.
Secondly: complacency. If you don’t embrace the consumer-led marketplace, they’ll take their business elsewhere. The market is more dynamic than it has been for years, and customers aren’t afraid to move on. Talk to consumers: tell them what’s in your product, what value it offers for the price, and what it’ll do for them.
Consumer healthcare companies are facing significant changes in their marketing priorities; their routes to market and their communication channels are more complex than the pharmacy and TV advert dominance of yesteryear. Companies need to embrace social media and engage with the more empowered customers of the here and now.
The successful consumer healthcare firm is a friendly, authoritative source of information, and a provider of effective, affordable products. That hasn’t changed. All that’s different is the means by which you prove it.
To take stock of your situation, and work out which channels and tactics are right for you, take a Marketing 360 healthcheck today.
Picture credit
Image via Flickr: (CC) Clean Wal-Mart