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This article was originally published in The Tan Sheet

Executive Summary

SCHERING's DR. SCHOLL'S REVAMPING INCLUDES 18 NEW PRODUCTS and a redesign of its existing line of foot-care products, Schering- Plough Healthcare announced March 1. In addition, the company is creating new packaging and retail displays for the entire Dr. Scholl's line beginning this month. Schering plans to reintroduce the new Dr. Scholl's line with a six-month national rollout. New York-based ad agency Messner, Vetere, Berger, Carey Schmetterer is designing the multi-media campaign scheduled to begin in June, as well as the new display units and "information centers" carrying the product line. Schering indicated that a focus of its new marketing program will be directed at "silent sufferers." The 18 new products will double the size of the Dr. Scholl product line. To aid consumers in differentiating products in the extended line, product offerings will be reintroduced with new packaging that includes color-coding and features models who are meant to reflect the demographic group targeted by a given product. Schering said it will reintroduce the redesigned products gradually in order to minimize merchandiser returns. Schering is highlighting the "comfort products" in the launch -- specifically six "ultra-thin" insoles, which the company claims "are up to 50% more shock absorbing than popular foam insoles." The other new products in the expanded footcare line include medicated Dr. Scholl's Super Absorbent Foot Powder, Bunion Guard and charcoal-treated Dr. Scholl's Super Odor Destroying Sports Insoles. The upgraded product line also provides new pricing opportunities, Schering indicated. The company said its new insoles would be priced higher than older models because of the cost of the technology involved in the new line and the products' increased durability. Citing market research for the overall footcare market, Schering predicted that the "average transaction price for footcare products will increase 44% between 1991 and 1996 (from $ 3.28 to $ 4.71 per unit)." Schering recently reported that its footcare product sales "declined slightly" in 1992 after a 12% sales gain in 1991 due to the launch that year of the Rx-to-OTC wart-removing products DuoFilm and DuoPlant and continued growth from Lotrimin AF, which was launched as an OTC antifungal switch in 1990. The Dr. Scholl's line generates over $ 200 mil. in annual sales, helping Schering claim about a two-thirds share of the overall footcare market, the firm estimated. Lotrimin AF and Tinactin, Schering noted, are the top two selling athlete's foot products. The company has discontinued promotion of its older athlete's foot product, Aftate.

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