Zyrtec and Claritin Eye Drops Use Different Tactics In Head To Head Fight

Thanks to a multi-media blitz, McNeil's Zyrtec Allergy Eye Relief Drops secured nearly twice the market share as a Claritin product from Schering-Plough with the same active drug that launched at the same time in summer 2009.

But the victory comes at a high price, with the market share for the overall Zyrtec allergy brand falling 6.64 percent in the 12 weeks ending Nov. 1 from the same period last year compared to the overall Claritin brand, which grew 0.13 percent in the same time frame, according to Information Resources Inc., which includes data from food, drugstore and mass market outlets, but not Walmart.

Since McNeil launched Zyrtec Itchy Eye Drops in August it captured 0.32 percent of the highly fragmented OTC eye/lens care solution category, worth a total of $940 million in the year ending Nov. 1, according to IRI.

Schering-Plough's new Claritin Eye came in second with 0.17 percent of the market, or $1.6 million in sales, during the same time frame, according to IRI.

A third product with the same active launched at the same time by McNeil parent Johnson & Johnson under the Visine brand came in a distant third with only $188,961 in sales or 0.02 percent of the market.

All three products list the same percentage of the antihistamine ketotifen fumarate as the only active ingredient, list the same indication and dosing and make similar claims that "just one drop" blocks allergens without making users drowsy (¹ (Also see "Claritin, Zyrtec And Visine Products Flood Eye Drop Market" - Pink Sheet, 31 Aug, 2009.)).

"Both Zyrtec and Claritin are off to a good start and I think these will be successful SKUs," but "it looks like Claritin to date has to be the bigger winner," said Gary Stibel, CEO of the New England Consulting Group in Westport, Conn.

He explained that Schering-Plough is "playing this one smart" by not shifting as much support to the new line extension - even though that made the launch less significant - so its total brand could grow.

"You never want to let total share of the franchise die," he added.

The only logical reason McNeil lost total Zyrtec sales across both allergy and eye products in the 12 weeks ending Nov. 1 is because "it shifted too much support to this relatively small new product," Stibel said.

McNeil ran a greater variety of TV, print and Internet ads for Zyrtec eye drops than Schering-Plough ran for Claritin or J&J ran for the new Visine product.

Within a six-day period in late August, McNeil ran three print ads and a network TV ad touting the new product as fast-acting and long-lasting. It followed two weeks later with two Internet ads and another network TV ad, and it finally tapered off with an Internet ad in late October, according to VMS, a New York City-based media intelligence firm.

Claritin and Visine each ran a single spot, according to VMS.

None of the firms disclosed its ad spend.

Zyrtec's ads also ostensibly targeted a wider audience than Claritin by running print ads in two newspapers and only one trade magazine compared to Claritin, which ran one print ad in a trade magazine. Likewise, Zyrtec's TV ads appeared on network TV and Claritin's ran on local TV, according to VMS.

J&J ran a newspaper and Internet ad featuring Visine All Day Eye Itch along with other Visine products.

A possible reason for the light promotion is J&J does not want the Visine product to eat into the sales of its subsidiary McNeil's Zyrtec, Stibel said. If this is the case though, he asked, why bother launching the Visine drug?

J&J may have considered the plan a two-pronged approach, reaching brand-loyal Visine users via one version of the product, and allergy-focused Zyrtec users on the other.

Two Firms Take Different Advertising Paths

McNeil and Schering-Plough diverge in their approach to additional promotions with McNeil favoring coupons and in-store displays and Schering-Plough opting for a larger Internet presence.

Stibel noted all the SKUs for Zyrtec in drugstores he has seen have featured a $4 instant redeemable coupon, which knocks the price down below Claritin Eye's equivalent price - even with Claritin's $2 coupon offered online.

Instant redeemable coupons offered in-store are valuable because consumers are more likely to redeem them than Internet coupons, Stibel added.

McNeil also used display space at Walgreens to promote Zyrtec, and as Stibel notes, "Walgreens doesn't give that away for free."

Schering-Plough created social media buzz by launching an official Facebook fan page dedicated to Claritin Eye that includes tips for allergy relief and a tool to remove red eye from photos.

The page is "one sesame seed short of a Big Mac. It is brilliant. They have done a fantastic job ... and it probably cost them a fraction of the coupons and display case" that McNeil used to promote Zyrtec, Stibel said. Zyrtec does not have a Facebook page.

Michael Kristof, president of Kristof Creative and founder of tweetreport.com, agreed that "if a company is not on social media they are going to lose."

Social media has a downside though, Kristof warned. It is controlled by users and companies no longer have total control of the message so it is vital that companies actively monitor social media and manage their brands' reputations.

At least one poster on Claritin's Facebook page publicly criticized Schering-Plough for placing the Claritin brand name on a product with ketotifen when most consumers and physicians associate the brand with the active ingredient loratadine. He added, "Why should one bother to use your newer, branded more expensive product ... when there are older, less expensive products with the same ingredient."

In response, Claritin Eye posted information about ketotifen fumarate and provided a link for coupons.

The page attracted more than 6,840 fans, several of whom posted positive feedback about Claritin Eye on the page's wall.

This positive feedback is what companies want, Kristof said. "Just having fans doesn't make the cash register ring. The whole point of fans is to build evangelists who talk about your product."

- Elizabeth Crawford ( ² [email protected] )