Case study: Over-the-counter Medicine – Channel Research and Value Chain Analysis on Cold and Flu Medicine in Indonesia

The challenge

An international pharmaceutical manufacturer sought to re-organize its Indonesian over-the-counter (OTC) flu medication channel function to achieve greater efficiency.

The objectives of the study were to benchmark competitors and analyze our client’s own OTC product distribution and reach across all channels types. This would enable us to better inform of a comprehensive restructuring of the channel-management function.

The process

Spire undertook secondary research using Bahasa Indonesia sources to identify close competitors of our client in four major cities: Jakarta, Surabaya, Semarang and Medan. Our consultants then conducted in-depth interviews with distributors, key wholesalers and semi-wholesalers of competing brands, as well as quantitative face-to-face surveys with over 900 provision-shop outlets in these cities.

The results

Spire’s findings enabled our client to introduce channel management programs that proved to be competitive against major contending brands.

Project deliverables included a detailed analysis of the full spectrum of channels for OTC medicine in Indonesia, addressing:

Product purchase and stocking behaviour
Sales and profit performance
Sphere of influence
Perception of and feedback on principals