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SMITHKLINE BEECHAM CONTAC DAY & NIGHT ALLERGY/SINUS $ 7.2 MIL. AD BUDGET

This article was originally published in The Tan Sheet

Executive Summary

SMITHKLINE BEECHAM CONTAC DAY & NIGHT ALLERGY/SINUS $ 7.2 MIL. AD BUDGET for 1993 will support over 50 television commercials per week beginning the week of March 1. Handled by Grey Advertising, the ads are expected to run in March-April and again in August- September. The commercials adopt the same selling line as SmithKline's other day/night offering, Contac Day & Night Cold & Flu: "The right medicine at the right time." SmithKline spent that $ 3.2 mil. of its ad budget will be expended from March 1 to the end of June. SmithKline also plans to support the product with four national free-standing inserts dropping over 184 mil. coupons. An introductory FSI on March 14 included a $ 1 "high value" coupon. A "spring allergy" season FSI containing a 50 " coupon is scheduled for April 25 release. In addition, two "cold season" FSIs will be launched: a Sept. 19 FSI will feature a $ 1 coupon good on any item in the Contac cold products line, while a Nov. 7 FSI will contain a 75 " coupon good on any Contac Day & Night product. SmithKline also plans to provide an introductory floorstand for drug stores stocked with 24 packages of Contac Day & Night Allergy/Sinus. Contac Day & Night Allergy/Sinus began shipping at the end of December 1992 at a list price of $ 4.23. Average retail price for the product is approximately $ 5.29, which is on par with the price of Contac Day & Night Cold & Flu, SmithKline said. The allergy/sinus product package contains 15 yellow acetaminophen/pseudoephedrine caplets for daytime use, and five acetaminophen, pseudoephedrine and diphenhydramine caplets for nighttime. The Contac cold & flu product contains the same ingredients with the addition of dextromethorphan in the daytime caplet. FDA is currently monitoring the concept of day/night dosing. The agency reportedly does not believe that dosing with two different combination cough/cold products in a 24-hour period is covered in the 1988 tentative final monograph for OTC Cough/Cold Combination Products ("The Tan Sheet" March 8, p. 3). SmithKline also plans to support its Oxy ResiDON'T liquid medicated face wash with aggressive media and promotional support. An introductory offer to the trade, running from March 1 to May 22, incorporates a 24-count floorstand and a 72-count trial size stand. An FSI to be distributed beginning May 16 will offer a 75 " coupon for Oxy ResiDON'T, and a "back-to-school" FSI coming out Aug. 8 will offer a 35 " coupon for any product in the Oxy line. A product sampling campaign will be launched in September. SmithKline previously said that it allotted a budget of $ 5.2 mil. in 1993 for Oxy ResiDON'T TV and radio ads beginning on May 3 ("The Tan Sheet" March 1, p. 16). Jordan, McGrath, Case & Taylor is handling the Oxy campaign. In 1992, SmithKline Beecham Consumer Brands began implementing a new worldwide category management program to bring a "global perspective" to development of its major healthcare brands and to speed new products to market ("The Tan Sheet" March 1, p. 16). Under the program, SmithKline has established five units, each representing a different product category. Each component is headed by a VP-category management director who is charged with expanding existing brands and offering new ideas for brand groups worldwide. Previously, brand groups operated independently in each country. For example, the gastro-intestinal unit includes the firm's Tums and Gaviscon antacids, as well as a potential OTC version of prescription ulcer drug Tagamet (cimetidine), for which an Rx-to- OTC switch application was submitted to FDA in December 1991. OTC Gastro-Intestinal VP and Director is Gordon McLaren, who previously was VP and director of marketing for SmithKline Consumer. The oral care unit, based in the U.K., includes the Aquafresh toothpaste line. VP and Director Oral Care is Brian McCaughley, formerly in the international division of SmithKline Consumer in the U.K. Covering the Contac cold products line, the upper respiratory tract group is headed by U.K.-based VP and Director Russ Moran. Prior to joining SmithKline, Moran was VP-product management of consumer health products at Warner-Lambert. The head of the dermatologicals unit, including the Oxy line, has not been named. The fifth unit, health drinks, includes products predominantly sold in Europe, such as isotonic beverages Lucozade and Ribena. Health Drinks is headquartered in the U.S. and led by VP and Director Michael Fensome, previously director and senior VP- strategic brand development for SmithKline in the U.K. Future units may cover feminine hygiene products, pain relievers, and vitamin supplements, the company said.

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