New Products in the OTC market

Different product opportunities
A well-known manufacturer in the OTC (Over-The-Counter) health market sector needed to evaluate a number of opportunities within different product categories with a view to identifying the best prospects for further development.

Comparison of performance across categories
The normal methodology for comparing opportunities within the same category is volumetric forecasting. Our challenge, in this case, was how to compare such opportunities across different product categories such as nose, skin and vitamins. We overcame this by conducting broad forecasts for 12 products across the categories which focused on maximum potential income. Combining this with product cost information for each alternative enabled us to clearly identify which new products had the potential to succeed and which should be dropped.

New product development
As a result of our study, one category of products was dropped while another four products were earmarked for further development, including communication and packaging.