international marketing report 1/2012

International Marketing Report

1/2012

For internal use only 1

Bulgaria

Sales development in the first half of 2012 compared to the first half of 2011 The Bulgarian market was marked by a period of strong competition in a stagnating market of winter products. There was a negative sales growth of cough & cold products with – 10 %. Bulgaria is suffering from an economic crisis which also strongly affects the health sector and brings with it an increasing unemployment rate of currently 13 % as well as a growing feeling of financial insecurity among the population. As a counter-measure Alpen Pharma increased the number of medical representatives in the company and invested in very valuable and creative marketing activities Overall sales of Alpen Pharma Bulgaria in the first half of 2012 increased 41 % compared to the first half of 2011. Alpen Pharma saw a very intensive development of Schüßler Salts, a good growth of Influcid and an 85 % growth of Tonsilotren for the observed period, thanks to a TV commercial. The sales development of the different product groups was as follows: Homeopathic specialities + 50 %, Children’s line – 15 %, Schüßler Salts + 253 %. Marketing and/or PR campaigns in the first half of 2012 Specialities Influcid was the object of intensive marketing activities in the first half of 2012, with particular emphasis on ethical activities. The re-print of the new clinical research of Prof. Eropkin “Opportunities for more effective antiviral therapy and prevention of ARVI. New experimental data with cell cultures” was an important tool to reach doctors. The brochure was presented in regional meetings and at a big event with 130 GPs and pediatricians in Sofia. The clinical data on Influcid was shown in presentations by the Alpen Pharma KOL pediatricians, furthermore, they were published in medical journals and a new brochure.

International Marketing Report 1/2012

For internal use only

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Prescription blocks featured “Influcid in feverish infections. Results of an international, randomized, controlled clinical trial”, and a sampling campaign was conducted. Another set of activities for Influcid targeted at increasing product awareness among pharmacists and improving the product visibility in pharmacies. Various games were staged and new materials printed. Alpen Pharma was present in pharmaceutical magazines and created new displays for the pharmacy shop. On 13 January a major event – “Kick in the top ten” was carried out together with the wholesaler Sopharma with the result of 5,000 units sold in one day. On the occasion of the 50th anniversary of DHU a tombola was organised for pharmacists. All campaigns were accompanied by a banner campaign and articles on the website of a big pharmacy chain www.framar.bg. End-consumers were addressed with a TV campaign which started in January and was on for six weeks. The objective of target rating points (TRPs) was exceeded by 28 %, reaching 923 TRPs. In February a PR campaign on Influcid was started. Another campaign titled “Carefree summer days with the medicine range of DHU” aimed at reminding end-consumers during the summer of the winter products of Alpen Pharma. End-consumers were invited to get a summer gift from Alpen Pharma. Doctors received a mailing in the months of June and July and were asked to select a sample of either Influcid, Tonsilotren or Cinnabsin. The campaign was rounded off with prescription blocks and give-aways for doctors – an Influcid-branded CD with relax music and a short meditation technique manual on the back of the CD cover. Tonsilotren also received intensive marketing support, which included presentations in pediatric and ENT clinics, an already existing brochure with three clinical studies, prescription blocks, samples, and giveaways. The successful activities for pharmacists (displays, tombola, campaign with Sopharma as well as print and internet advertising), which were organised for Influcid, were also carried out for Tonsilotren. Also end-consumers were addressed with a set of marketing activities which encompassed a very successful TV commercial which ran four weeks in January and another week in March and reached 537 TRPs (32 % more than planned). This was accompanied in February by a PR campaign.



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The key opinion leader Prof. Bezshapochniy was present at various events in May, which were the “Big spring ball for GPs and pediatricians” with a presentation titled “Rational approach in the treatment of tonsillitis and tonsillar hyperplasia” as well as meetings and presentations with ENT specialists and allergologists. A campaign with the already known and very successful mix of activities was also run for Cinnabsin.

Another marketing focus lay on Rhinital (also known as Heuschnupfenmittel or Hay Fever Remedy), with early activities on prophylaxis with doctors. A pollen calendar for children was printed and doctors and pharmacists were informed in a bi-weekly mailing about the pollen forecast and were provided with samples and advice from specialised allergologists. The Alpen Pharma key opinion leaders gave presentations at the 5th National Conference of Pediatricians in pre-hospital practice. During the active pollen season, all target groups were addressed. Doctors received prescription blocks and flyers and were reminded of the option for prophylaxis, articles were published in medical journals like “GP News”, “Practical Pediatrics”, Science Pulmology” etc. The already existing web page www.alergii.bg was optimised and advice from allergologists was added. Rhinital and Vivoton were also promoted with special discounts in a spring promotion which lasted two months, and were featured in a PR campaign. Also Vivoton was supported with intensive marketing activities. One of the most important ones was the TV commercial which was on for five weeks in April and May and which was accompanied by print materials, internet advertising, PR articles, and POS activities.



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Schüßler Salts For Schüßler Salts a new annual program with courses for doctors and pharmacists with four cycles was set up. The training cycles were made public in a flyer, and potential participants received an invitation by e-mail or SMS. The registration form was available on http://www.schusslersalts.com. Participants received certificates as Dr. Schüßler therapists and were listed as Dr. Schüßler experts on www.schusslersalts.com. A calendar for holidays was printed as give-away, information on the application of Dr. Schüßler Salts in rhinitis was published on a disc.

Event within the framework of the training cycle and Certificate

The “School for Parents” was extended to two new cities. There was a campaign together with the magazine “My Child” in big shopping centers in Sofia and Varna, and as of May also in Plovdiv and Burgas. Schüßler Salts during pregnancy and for small children were the major topics. The “On-line school for mothers” also provided a brochure “Schüßler Salts during Pregnancy” and was complemented by many articles and advertising pages. The topics were also presented on a monthly basis in the TV show "Coffee", a daily women talk show with a special edition for holistic health every Monday. The show counts with an audience of almost 2

Brochure “School for Parents” mio. people! Twelve editions were shown, one for every salt.



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Children’s Line A big event was also organised for the Children’s Line: The Mama Natura brand was launched in two big pediatric conferences. Apart from product presentations, there was an advertising stand with an attractive game, where participants could win a spa weekend as top prize. Samples of Gastrokind and brochures with the new brand “Mama Natura in Bulgaria” were distributed. The launch was continued with major events with GThP’s and pediatricians in five big cities in June. A special brochure provided scientific information, giveaways (bags with the logo of Mama Natura, notepads, pens) were distributed, an interesting game with the “wheel of fortune” and many presents as well as a musical program

rounded off the events. PR articles were published in magazines for pediatricians and GPs.

Ukraine

Sales development in the first half of 2012 compared to the first half of 2011 Sales of the DHU range in Ukraine in the first half of 2012 were 15 % higher than in the first half of 2011. The sales development is marked by an unstable economic and political situation, with judicial proceedings and social protests going on, and shows a slow and unstable growth with the tendency to stagnation or even decrease. The situation is aggravated by unpopular reforms, especially in medium-sized businesses, e.g. an unfavourable tax code, health care reform, pension reform, customs reform, and an unfavourable investment climate in general. DHU Ukraine offers 17 medicinal products and 19 para-pharmaceutical products. The major part of sales is made by Tonsilotren (23 % of total sales), Cinnabsin (20 %) and Influcid (19 %), which together account for 62 % of the total sales volume. The children’s line and Kindinorm account for 38 % and 16 % of sales, respectively. Sales of DHU complex products were up 32 % in the first half of 2012 compared to the same period of 2011.



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The best sales growth in the first half of 2012 was shown by Immunokind (+ 234 %), Capadol (+ 119 %), and Kindinorm (+ 82 %). The most important products, Tonsilotren and Influcid, recorded sales growth rates of 43 % and 23 %, respectively. Marketing and/or PR campaigns in the first half of 2012 Specialities Medical doctors are the most important target group of marketing efforts in Ukraine. They are addressed in more than 20,000 personal visits and presentations for pediatricians, ENT doctors, neonatologists. The following events for this target group were of major importance: In April 2012 leading professors of Ukraine shared their experience with the usage of Cinnabsin, Tonsilotren and Rhinital at the 1st Forum of Otorhinolaryngologists of Russia in St. Petersburg in a Symposium titled “A modern view on complex treatment of the diseases of the upper respiratory tract.” The Resolution of the participants of the “International Interdisciplinary Symposium on the Treatment and Prevention of Inflammatory Diseases of the Nasopharynx in Children” within the IV Congress of Pediatricians of the CIS countries was published under the title “Child and society: problems of health, development and nutrition.”

For Influcid Alpen Pharma made a summary of the autumn sampling within the framework of the social program “Protect yourself and your family from colds and flu.” During this second stage of the campaign more than 1,500 doctors and 400 pharmacists were contacted and interviewed. The third stage is planned for October 2012. It includes the publication of the results and reports at conferences. A new leaflet for Tonsilotren was printed in order give doctors advice for a “Basic therapy of tonsillitis”. Post-marketing studies were conducted with pediatricians about the application of the scheme of therapy with Tonsilotren and Umckalor in the complex treatment of tonsillitis-pharyngitis in children. The results will be published in November 2012. Both products were also promoted in a new leaflet for doctors.



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Resolution on Influcid Leaflet Tonsilotren for doctors Leaflet Tonsilotren and Umckalor

Cinnabsin was promoted in the already well-known and successful specialised program for ENT doctors at hospitals with the objective of optimising the treatment of acute or sharp chronic rhino-sinusitis for inpatients. The program included sampling for the patients with further recommendations to continue the therapy course for four to six weeks. A post-marketing study with pediatricians was also conducted on the application of the Cinnabsin therapy scheme in the treatment of acute sinusitis in order to reduce duration of treatment. The consumer booklet "7 rules to fight a runny nose" was distributed to patients by doctors and pharmacists. For Rhinital the results of the clinical trial “Effectiveness of Rhinital in the treatment of respiratory displays of food allergy among children” were published in the medical press.

“7 rules to fight a runny nose” (Cinnabsin) Publication of clinical trial on Rhinital

Among the great number of activities directed at doctors, there is another noteworthy campaign called “Summer program”. It includes a series of Mono-Conferences for doctors and pharmacists. In May and June 2012 four scientific-practical Mono-conferences on “Recreation without problems” were



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held in the cities of Simferopol, Yalta, Sevastopol, and Odessa. There were reports by the leading professors of Ukraine on the proper diagnosis and treatment of most common diseases of the upper respiratory tract and ENT organs in the summer, “Pharmaceutical care, or how to help a tourist on vacation” with Influcid, Cinnabsin, and Tonsilotren. More than 250 participants attended the Conferences. Obstetricians and gynecologists were invited to a scientific and practical conference in May. Two reports on Dysmenorm and Klimaktolan were given by the leading professors in gynecology of Ukraine, more than 950 participants attended the conference. A survey was carried out with therapists and gynecologists in April 2012: “Klimaktoplan - maintenance of female health.” 6,000 women with climacteric syndrome were prescribed Klimaktoplan in monotherapy or in complex therapy. After the treatment period of one month both the patients and the doctors filled in a questionnaire. Doctors recommended administration of Klimaktoplan for a further period of at least three months. Results of the survey will be published in November 2012. Pharmacists are supported in their sell-out activities with very different POS campaigns. Apart from that, Alpen Pharma conducts more general and not product-related activities for pharmacists. Among them there was a very successful project called “Pharmacist of the Year.” In the course of the year Alpen Pharma offered trainings for pharmacists in the largest pharmacy networks of Ukraine. In March and April pharmacists were tested for their product knowledge: In a “Secret shopper” campaign the best pharmacists, who recommended best and most often the products of Alpen Pharma, were identified. In June the best pharmacists were invited to a trip to the capital of Ukraine with a guided tour, awarding, contests, and a celebratory dinner. Here some impressions from the trip:

During the summer season, from June until September 2012, Alpen Pharma is carrying out a campaign with manifold actions for distributors, pharmacy chains and individual pharmacies on the top products Influcid, Cinnabsin, and Tonsilotren. A special flyer was created for the summer campaign. For image recognition and a sales increase of the mentioned products, pharmacy windows, beaches, water parks were decorated with oracal foils and charts.



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Some examples can be seen here:

Video advertising on Influcid, Klimaktoplan and Tonsilotren was launched in public transport (trolley buses) on the South Coast of Crimea. Trams and trolley buses in the city of Odessa were decorated with oracals on Influcid, Tonsilotren and Cinnabsin. For Influcid a summer visual was created as well as a new summer advertising video for promotion in public transport and TV channels of Ukraine. Influcid TV commercial

Tonsilotren, Cinnabsin, Influcid were also featured in TV and radio advertising as well as in ads in the metro of the city of Kiev.

Trams and trolleys in Odessa with Tonsilotren and Cinnabsin ads



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Tonsilotren was another product for which a new summer visual and slogan “Summer without angina” was created.

Rhinital was promoted in an end-consumer campaign titled “Life without allergies”, which was

implemented from the beginning of April until end of June 2012. The campaign encompassed a patient leaflet and advertising on TV (May) and radio (two channels in April and May).

All products, i.e. specialities, topicals, and children’s line, were promoted by special thematic releases in parents’ magazines, colour advertising publications e.g. in “Lisa”, “Moi Rebenok” (My Child), “AiF” (Arguments and Facts), “Otdohni” (Have a rest), “Moi prekrasnyi sad” (My lovely garden), “Dobryie sovet”“ (Good advices) as well as ads in newspapers.



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Children’s Line The Children’s Line was supported with a summary of the specialised program for pediatricians "For children who get ill for a long time and often” (Immunokind). During the first stage of the program in November 2011 Alpen Pharma had conducted a sampling for pediatricians. During the second stage a survey among the pediatricians was made, and the result was the decrease of the amount of long-time ill children after the administration of Immunokind, as evaluated by the doctor. The results will be published in the medical press in November 2012. Furthermore, presentations were held and individual calls on Immunokind and Kindinorm were made on the topic of “Immunological and psychological adaptation to the kinder garden and school: “Raising of successful people”. An article on Gastrokind was published in the medical press with the results of the clinical trial of prof. J. Belousov. Pharmacists were informed about Enterokind and Gastrokind in the “Provisor” pharmaceutical magazine.

Russia

Corporate News In the first half of 2012 the DHU representation in Russia was closed, and the new partnership with Alpen Pharma in Russia was set up. Sales development in the first half of 2012 compared to the first half of 2011 Sales of the DHU range in Russia in the first half of 2012 were 90 % below sales of the first half of 2011. The reason for this sales decrease, which affects almost all products alike, are huge stocks at the wholesalers.



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Marketing and/or PR campaigns in the first half of 2012 Specialities A marketing campaign for Influcid in the first half of 2012 included a radio and TV campaign in January, February and March on two radio channels (all Russia) and on two TV channels in the four biggest cities (Moscow, St. Petersburg, Samara, Kazan). Activities encompassed also conferences for doctors with the aim of increasing of brand awareness, loyalty and recommendation to patients. In the first half of 2012 an article was published which covered a satellite symposium on anti-cold products: The “1st St. Petersburg Forum of Otolaryngologists of Russia” in April 2012, where presentations were given by the key opinion leaders Prof. T. Garashenko, Prof. S. Ryazantsev, Prof. S. Besshapochny. Also was published an article on Cinnabsin for the treatment of chronic adenoiditis and allergic rhinitis by Prof. A. Kiselev A series of new promotional materials for doctors have been published, among them a booklet on Cinnabsin and a collection of scientific articles for Cinnabsin and Rhinital.



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Furthermore, a scientific article by Prof. T. Garashenko about Rhinital has been published in a medical journal. It describes a mechanism of action of homeopathic remedies on the example of Rhinital. A marketing campaign for Klimaktoplan included a TV campaign, the placing of toppers in pharmacies, and trainings for pharmacists as well as merchandising. A TV commercial was broadcast in the four biggest cities. In May 2012 a trip of KOLs to the Black Forest in Germany with two groups of pediatricians and otorhinolaryngologists was organised.

Germany

Sales development in the first half of 2012 compared to the first half of 2011 The first half of 2012 was even more competitive as 2011, especially in the Schüßler Salts market. For the first time marketing spendings of Pflüger, the main competitor, exceeded the DHU spendings. Moreover, the allergy season was very weak and affected the sales of specialities as a product group. As a result, total sales of DHU from January to June 2012 were 1 % below the same period of 2011. Cumulative internal sales of Schüßler Salts during the first half of 2012 were down by 3 % vs. prior year, while the total market grew by almost 3 % (January – April) driven by Pflüger. The market situation is becoming increasingly competitive with Pflüger continuously investing in TV, print and high sell-in discounts for pharmacies. Sales of single remedies in the first half of 2012 increased 1 % vs. 2011. The sales increase was particularly triggered by the globules which increased sales by almost 3 % and had a share of sold packages of 82 %. The top-10 product Chamomilla benefited (+ 51 %) from supply difficulties of Osanit® - a well established homeopathic speciality in Germany used for teething problems in babies. Homeopathic specialities saw a sales decrease of 10 % in the observed period, which was basically due to the missing allergy season in Germany. Heuschnupfenmittel DHU (international brand Rhinital) suffered from the situation with a loss of almost 19 % vs. prior year.



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Even though homeopathic specialities did not meet the sales expectations, the general trend faces upwards, as their total sales in June increased by 41 % vs. prior year. The first two months after the re-launch of Manuia, which is part of the umbrella brand “DHU meine Homöopathie” since May 2012, showed a positive result. The product benefited from intensive marketing support, but is still below expectations. Marketing and/or PR campaigns in the first half of 2012 Schüßler Salts DHU launched a new Testimonial Launch campaign, in which Ursula Karven was introduced to the media, pharmacists and end-consumers as the new DHU Schüßler-Salts testimonial. The objective was to establish preferences for DHU over other competitors and to address and introduce new users to Schüßler-Salts. In mid-February Ursula Karven was announced and introduced as the new testimonial of DHU in a press conference in Hamburg with journalists. DHU incorporated the new key visual and corporate design in advertising and promotional materials including e.g. print materials, online design (homepage/Facebook) and POS material. The direct impact of the campaign on unit sales is difficult to measure. However, within the months of activity (March, April) internal value sales increased compared to previous year by 18 % and 6 %, respectively. DHU has no data on changes in the numbers of Schüßler-Salts users or brand health scores. In March and April the number of unpaid publications on Schüßler-Salts, which included press material generated from the press conference in mid-February, increased from 29 in 2011 to 88 in 2012.

POS material (window decoration, leaflet and display)



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Promotional Material (brochure, give-away)

During the first half of 2012 DHU reinforced the partnership for Schüßler Salts with various pharmacy co-operatives, which cover up to several thousand individual pharmacies, such as MVDA (~ 3,000 pharmacies), and Avie (~ 100). The cooperation contract with Sanacorp (~ 3,200 pharmacies) is due to be signed in July 2012. Online or social media activities Partnership with eight of the top ten online pharmacies is in place and co-operation has been reinforced. Regular updates of the homepage and Facebook presence in combination with Google Adwords campaigns are made. As far as data are available for the individual online pharmacies, DHU Schüßler-Salts clearly outperform the competition. The number of Facebook fans increased to over 12,000. On the general DHU website the average number of users in 2012 was 6,650. During the period of the Google Adwords campaign this number almost doubled. The daily investment in Google Adwords was € 1 ,000.

Single remedies On the occasion of the UEFA European Championship 2012 and the upcoming Olympic Games DHU introduced a new summer campaign “Meine Taktik gegen Spielverderber” (Tactics against grinches). Three single remedies – Arnica, Calendula, and Apis – fight against the three big indications of summertime: obtuse injuries, abrasions, and stings. The campaign aimed at addressing and introducing new users to single remedies.



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A POS campaign in pharmacies started in mid-May with PR co-operations with several publishing houses and relevant magazines. An ad campaign followed with more than 81 mio. contacts. The direct impact of the campaign on unit sales cannot be measured. However, within the month of activity (June) internal value sales of the focused single remedies increased more than 23 % compared to June 2011.



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Sales have not achieved the objectives so far. A problem was the introduction of a new set for active summer days, which was mainly declined by pharmacists. Nevertheless after eight weeks in the field, DHU achieved 60 % of the target of POS placements. Specialities Marketing activities in the first quarter of 2012 focused on seasonal health products such as Nisylen (international brand Influcid), Tonsiotren and Heuschnupfenmittel DHU for allergic rhinitis. The latter was promoted via mailings and POS activities including window decoration and pharmacy counter displays. Consumer ads in print magazines as well as a Google Adwords campaign started at the end of March and ran until May, respectively July. In May 2012 Manuia was re-launched under the umbrella brand “DHU meine Homöopathie” with a new packaging (tablets in blisters) and an adapted design. The new campaign included a print campaign and POS activities such as decoration material, consumer leaflets and counter displays. Moreover pharmacies were informed about the product and attractive discounts via mailing. Counter Display for complete range Window decoration New packaging for Manuia Window decoration plus counter display



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Spain

Corporate news DHU is the first company to get the approval of a homeopathic registration procedure in Spain. The registration of the single remedy Lycopodium in a Decentralised Procedure can be seen as a major success after many of years of standstill. Sales development in the first half of 2012 compared to the first half of 2011 Cumulative homeopathic sales of DHU Ibérica until the end of June 2012 were 6 % below sales of the same period of 2011. Homeopathic specialities were 15 % below prior year, the Children’s Line 1 % below prior year, and Schüßler Salts – 3 %, while single remedies were 29 % up. The “homeopathic” cosmetics, i.e. Calenduflorbaby and InsectDHU were 7 up. Marketing and/or PR campaigns in the first half of 2012 Specialities InsectDHU was promoted in a successful POS campaign with a new product display and supported with PR activities.

Examples of PR articles InsectDHU product display



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The main objective was to increase the positioning and rotation of the product during the summer season. Marketing activities were supported by an aggressive presales campaign from January until April. Direct-to-consumer activities encompassed the attendance of fairs and the distribution of samples. The product benefitted from the campaign: During the first half of the year and, therefore, still before the summer season InsectDHU achieved a sales increase of 4 % in value and 18 % in units. Children’s line DHU Ibérica launched the new Mama Natura box concept with the aim of improving the key visuals and increasing visibility of the four current top brands at the POS. Another main objective was to recover the losses generated in the first months of the year. Results of the launch cannot be evaluated at this point of time, since the concept was only launched in June. The next edition of this Report will provide an update of the campaign.

In the first month of activity the promoted products, i.e. Chamodent, Colikind, Kindival, and Munostim, achieved total sales of 18,000 units (+ 18 % vs. June 2011). The box concept was also supported and made known in a PR campaign, of which an example can be seen on the right, taken from the “Farmavents Pediátrico” magazine (quarterly circulation: 8,000 copies). DHU Ibérica was present at the fair “Bebés y Mamás” with more than 30,000 visitors. A major activity at the stand was the introduction of the Mama Natura concept. Another activity, which is already well-known and well accepted, was the sponsoring of a baby massage workshop for parents.

Impressions from the fair Bebés y Mamás



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Schüßler Salts For all major activities DHU is co-operating with AEBS, the Spanish Association for Schüßler Salts. The key strategy in the first half-year was the training of professionals and consumers as well as PR actions. 35 trainings were carried out in order to maintain and increase the knowledge of the Schüßler therapy and product awareness. Here are examples of Schüßler PR articles from the most representative media:

January: SportLife Magazine March: Diez Minutos Magazine April: Crecer Feliz Magazine Monthly circulation: 80,000 copies Weekly circulation: 321,000 copies Monthly circ.: 62,000 copies Target: Sport (Audience: 1,437,000 readers) Target group: Mothers Target: Women

Online or social media activities The evolution of the Facebook followers of Mama Natura España deserves special attention: After the launch in November 2011, the Facebook presence attracted 5,000 followers until end of 2011, and continued on the growth path in the first half of 2012, attracting another 60,000 fans: At the end of June 2012 65,000 fans were reported for the Mama Natura España Facebook presence. The average growth is 10,000 fans per month.



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A positive development can also be shown for the monthly interactions at the Mama Natura Facebook presence, which ranges from almost 26,000 in February to more than 66,000 in June:

January February March April May June

Total Month 37639 25855 42193 48102 41248 66382 Total Month/ number of days 1214 892 1361 1603 1331 2213 Although the page does not show a continual growth, the trend goes upwards. DHU Ibérica has also undertaken the following cross marketing activities offering the participation in the draw of a prize when making oneself a fan of the Mama Natura page: Mama Natura & Nonabox

Mama Natura & Tutete

Mama Natura & El Recién Nacido

The cross marketing activities have attracted more than 3,000 contestants in the first half of 2012. 21 % (662) of the total of contestants (3,167) have become new followers of Mama Natura page. These actions are very important in order to attract more followers. The co-operation with these companies offers new contacts. “Nonabox” is a new concept that offers mothers the possibility to test products for later consumption. “Tu Tete” is a company that manufactures personalised pacifiers and has a good positioning in the online baby sector. “El Recién Nacido” distributes gift baskets for newborn babies. At the end of the first half of 2012 DHU Ibérica decided to use the Facebook platform to promote the Mama Natura products in a more explicit way, i.e. with a Facebook ad. The first products to be promoted this way were InsectDHU and the Munostim box. The page of Mama Natura provides a



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platform with 60,000 followers. 82.5 % of them are men and women in the age of parenting. Publications are not only seen by the page followers, but by a broader community, because with their interactions ("like" comments and share) followers manage the information flow to all their friends. This interaction provides the added value that the promotion is not perceived by the user of Facebook as an "announcement" directly from the company, but rather like a friend's advice. The publication reached 20,000 (InsectDHU) and 24,000 persons (Munostim), respectively. Facebook ad for InsectDHU …

… and Munostim Mama Natura box.



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Italy

Sales development in the first half of 2012 compared to the first half of 2011 Cumulative homeopathic sales of Loacker in Italy at the end of June 2012 were 3 % below the first half of 2011. The sales trend is in line with the negative development of the pharmaceutical market in the first half of 2012. The negative result of the Loacker and DHU homeopathy turnover is mainly explained by the negative sales of winter products that in the Loacker portfolio account for more than 35 % of sales. This result is a consequence of two factors: The sell-out in the cough and cold market in the 2011/2012 season was 3 % below prior year, mainly due to a lower incidence of the flu pathology. Another factor is the very positive sell-in of Loacker and DHU cough and cold products in the 2011 winter pre-sales campaign, which was 58 % vs. prior year. The sell-in at the beginning of the season was higher than the following sell-out during the winter. Other product lines which are not affected by the winter season, e.g. Schüßler Salts and Ointments, show a positive sales trend in line with the development in the last year: Homeopathic specialities – 10 % (DHU and Loacker specialties), Children’s line – 7 %, Schüßler Salts + 6 %, single remedies + 2 %, ointments + 9 %. Marketing and/or PR campaigns in the first half of 2012 Specialities The winter pre-sales campaign starts in April and ends in August. It now accounts for 23 % of total sales in the direct distribution channel. 70 % of winter products are in the pre-sales campaign (current data: 214,814 units, - 14 % vs. prior year; see comments above). The available materials to support the actual campaign are a wooden shelf display, a window decoration and decoration sets for the pharmacy counter.



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Children’s line Due to the legal limitations in Italy the key marketing activities are focused on the point of sale. The visibility in the POS for Homeokind products and communication materials is of strategic importance. Colourful and effective POS materials with the graphics of the Kindy’s world help the Homeokind range gain space and visibility and, thus, the consumers’ attention. In addition to the new POS materials two main tools have been implemented to inform and educate the health care professionals (HCPs). A new educational leaflet for HCPs about the cough syrup Tussistin has been printed and is distributed to pediatricians. 350 in–store trainings in pharmacies have been organised from January until June.

Educational leaflet Tussistin for health care professionals

Children’s alphabet for the pharmacy corner Schüßler Salts In 2011, in view of the DHU development of an in-depth international positioning strategy for the Schüßler Salts, Loacker Remedia decided to adapt the international brand essence and personality of the line to the local context. The new brand positioning and marketing strategy of Schüßler Salts, based on a well-being concept, was presented in September 2011 to the sales force. From September 2011 until June 2012 the main focus was based on increasing visibility in pharmacies with new POS materials (wooden shelf display, window decoration) and a good distribution of information materials to consumers and HCPs. Loacker created new educational materials, e.g. the educational manual with a simplified data sheet for each salt, and developed an intensive training program for pharmacists (10 training days, 1 Schüßler Educational Tour with Mr. Walter Käch from Switzerland as speaker, 150 in-store trainings) with an overall attendance of approx. 1,000 pharmacists. Schüßler Salts were also the main protagonist of the most important Italian trade exposition “Cosmofarma” in May with a massive distribution of branded pill boxes and branded T–shirts. During the fair Loacker launched



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also the Italian version of the new Schüßler Quickfinder Internet site. The impact of these activities on direct sales was great: + 19 % in value and + 21 % in distribution.

Branded Schüßler t-shirts: “And what is your salt? – Discover your salt at our stand!”

Window decoration Schüßler Quickfinder site Topicals In 2012, the topicals strategy is in line with what has already successfully been implemented in 2011: a focus on Halicar as a strategic product and aggressive commercial conditions for Arnica and Calendumed. Loacker created a brochure for pharmacists and a leaflet for consumers as new educational materials as well as new POS materials: a product display and a window decoration with a window display and three cubes of Arnica, Calendumed and Halicar. Pharmacist brochure



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The new materials were presented in December 2011 and April 2012. The training strategy for pharmacists included 300 in-store training. The campaign generated a 10 % growth of direct sales in the reported period.

Product display Window decoration

Switzerland

Sales development in the first half of 2012 compared to the first half of 2011 Total sales of OMIDA in Switzerland in the first half of 2012 were scarcely above the same period of 2011. Sales were triggered particularly by the Schüßler Salts. The new introductions worked very well in the market. This is the sales development of the different product groups: Homeopathic specialities + 4 %, Children’s line + 25 %, Schüßler Salts + 2 %, single remedies – 3 %. Marketing and/or PR campaigns in the first half of 2012 Specialities A joint “skin” marketing campaign was carried out together with Schwabe Pharma. The campaign featured Cardiospermum ointment/cream with the indication skin irritations and Hametum as phyto product for wounds and



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injured skin. The campaign included the entire marketing mix. 500 window decorations as well as 300 second POS could be places in pharmacies and drugstores. Training events for professional audiences were offered in six cities. Sales were + 10 % at the end of June 2012 as compared to the first half of 2011. Schüßler Salts Marketing activities focused on the new Schüßler Sportdrink, which is offered in stick packs, and the new Lip Cream. Especially sales of the Schüßler Sportdrink exceeded expectations by far. Consumer convenience is an important aspect of this success. The stick packs are very practical and can easily be taken along. OMIDA has a cutting edge here since the stick packs cannot easily be copied by competitors. The Schüßler Sportdrink was launched in March 2012. Before that a mailing and sampling campaign had been carried out with drugstores and pharmacies. The product increases the amount of oxygen in the muscles, enhances physical and mental performance, is relaxing and antispasmodic. It shortens the regeneration after doing sports and in addition it is a wonderful thirst quencher. The target group is mainly people doing sports, but also adults and children who want to enhance or maintain a high level of physical and mental performance.

The decision to launch a Schüßler lip balm with Schüßler Salts nr. 1 + 3+ 8 + 11 was taken in view of the growing success and importance of topical dosage forms of Schüßler Salts. An example of new and successful topical products is the OMIDA Schüßler lipstick, which had been launched in 2008 and which is one of the best-selling lipsticks in Switzerland. The lip balm was launched in April and was promoted in pharmacies and drugstores with a product display, and was made known in ads and PR articles in the public press.



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Online or social media activities In Switzerland social media activities are not allowed for pharmaceutical products.

Austria

Corporate news In January 2012 the number of sales reps was increased from four to seven. The four original sales reps are now exclusively promoting the range of homeopathic products. Simone Seidl joined Peithner Austria in April 2012 as new head of Sales & Distribution and head of the pharmaceutical sales reps. Sales development in the first half of 2012 compared to the first half of 2011 Cumulative sales at the end of June 2012 were almost 2 % below the corresponding period of 2011. Single remedies continued last year’s downward trend with sales being 3 % below prior year. Due to lack of market data it is not quite clear whether this development is a consequence of a growing number of self-dispensing pharmacies, of increasing competence or of a general decrease of the market of single remedies in Austria. The sales reps will carry out a qualitative research over the coming months which will hopefully bring some insight.



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Among specialities the sales decline vs. prior year (- 4 %) is mainly due to the weak performance of Tonsiotren, by far the most important product. As can be seen from the available IMS data for the first quarter of 2012, this a result of a weak seasonal demand. Within the homeopathic segment, however, Tonsiotren lost less sales than the major competitors. A positive trend can be seen with the Dr. Schüßler Salts (+ 5 %). It was particularly the intensive training and presentation activities which render first results. Marketing and/or PR campaigns in the first half of 2012 Specialities and Single Remedies Data from recent market research prove an unbroken high interest of the Austrian population in homeopathic medicines: 63 % of Austrians say that they would appreciate more information on homeopathic. This was one of the reasons why after long and intensive preparation, the initiative “Homöopathie hilft!” (Homeopathy helps) was launched in April. Apart from providing information on homeopathy the initiative has further objectives: further improve the image of homeopathy with regard to efficacy; increase the level of recognition of Dr. Peithner as a homeopathic company; create a (so far not existing) platform of exchange of information for the general public and professionals; further improve the relationship with the partners of the initiative (ÖGHM – Austrian Society for Homeopathic Medicine, the Chamber of Doctors, the Chamber of Pharmacists, the Committee of Midwives, the Society for Homeopathy within Veterinary Medicine and others). The kick-off was given at a press conference in April where renowned experts spoke about very different aspects of homeopathy– the attitude of the Austrian population towards homeopathy, homeopathy & science, homeopathy & costs – and presented the initiative as such. The press conference met with a response which by far exceeded expectations: More than 30 journalists were present, more than 70 clippings (the objective were 50 clippings) were achieved until end of June. Apart from media coverage the initiative is made known by broadly distributed information folders which are available in pharmacies, waiting rooms in the doctor’s practice and at events organised by Dr. Peithner or partners of the initiative. The heart of the initiative is the homepage www.homoeopathiehilft.at, which offers several new services, e.g. a search function for indications or drug pictures as well as a data base for doctors. Twelve doctors and pharmacists are members of an advisory board, both the contents of homepage and the advisory board are still growing.



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In May and June the homepage counted more than 4,000 visits, which is twice as much as expected. Here are some impressions:

Starting page of the homepage

Press conference

Folder



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Examples of clippings



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Czech Republic

Sales development in the first half of 2012 compared to the first half of 2011 Although specialities increased sales by 70 % in the first half of 2012 over the same period of 2011, total DHU sales were only 5 % up. This is due to the withdrawal of single remedies from the Czech market. This also led to rumours that the company was leaving the market. The situation stabilised in April. Peithner is now only marketing topicals in the Czech Republic. Marketing and/or PR campaigns in the first half of 2012 Specialities Marketing activities focused on Halicar. Halicar was previously positioned mainly as a medicine for children. In the first half of 2012 the positioning of the product was extended to the treatment of various dermatological problems. Halicar was integrated into the e-learning platform, focusing on clinical studies. Peithner created a new product brochure for homeopathic doctors and pharmacies with both products included. On the level of pharmacies, both Halicar and Rubisan were part of the sales promotions (5+1, 3+1). Recommendation cards were printed for Halicar and were distributed to pediatricians and pharmacies. Peithner published the new company magazine “Health from Nature” with Halicar and Rubisan insertions. This advertisement focuses on the use of Halicar in case of solar dermatitis and highlights it as an ideal product for the summer vacation which helps against solar allergies and itching after insect bites. Magazine was distributed to doctors, pharmacies and also to final customers vie insertion into magazines for women. “Don’t let your summer vacation be spoilt by sun allergies!”



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Hungary

Sales development in the first half of 2012 compared to the first half of 2011 Dr. Peithner sales in Hungary in the first half of 2012 were influenced by an economic and political crisis which strongly reduced overall demand and a dramatic decrease of the homeopathic market of – 25 %. In addition, new health care regulations increased the costs of companies in terms of registration fees and set up new restrictions for advertising and PR activities. As more and more Rx companies switch to OTC marketing, competition in the OTC market increased. In order to compensate for the loss of Rx sales, pharmacy margins and, thus, OTC consumer prices increased. Total DHU sales in the first half of 2012 were 5 % below the first half of 2011. While specialities (Halicar, Rubisan) increased sales by 44 %, Schüßler Salts, the most important product group, declined by 7 % and single remedies by almost 56 %. Marketing and/or PR campaigns in the first half of 2012 The key objectives for the DHU portfolio are to increase consumer demand, stimulate market demand and improve product availability. Specialities The focus of marketing was on Halicar with the objective of extending the patient population of the Halicar brand in Hungary. The focus lies on pruritus, which is the most prevalent feature and the patient’s most unpleasant cutaneous sensation in atopic dermatitis and atopic eczema. A promotional campaign was carried out in the first and second quarter of 2012. Pharmacists and, to a lesser extent, doctors were addressed via personal communication channels, such as face to face visits, sales presentations by the Peithner sales force, telemarketing and telesales. End-consumers were addressed via PR articles and ads in premium women’s newspapers, blogs in the website www.viszketek.hu, and in social networking sites. Ads were also broadcast on the radio. Schüßler Salts The “Angelface” promotional campaign in the first half of 2012 persued the objective of strengthening the Schüßler brand in Hungary. Apart from the communication channels described above, pharmacists and doctors were also addressed in facial diagnostics trainings and meetings, run by the Association of Friends of Homeopathy. End-consumers were addressed by print and online ads and via social media, particularly on the website



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www.arcdiagnosztika.hu and on www.Facebook/arcdiagnosztika.hu, always implementing the new Angelface visual. The “Angelface System” is meant as a product-based and medically profound Schüßler facial diagnostics and communications program which provides easy-to-use, disease-related and therapeutic educational information that can be used in pharmacy shops, a doctor’s practice or online. Online or social media activities For Halicar and Schüßler Salts different internet sites have been set up, since they have great potential for high-impact interactivity and can be updated quickly and cost-effectively. Current web presences can be found at www.viszketek.com, www.viszketek/facebook, www.arcdiagnosztika.hu, www.arcdiagnosztika/facebook, and in Google Ads.

Slovakia

Sales development in the first half of 2012 compared to the first half of 2011 Total homeopathic sales in the first half of 2012 decreased 9 % compared to the first half of 2011. This was caused by the general economic crisis, because the decrease did not only affect Dr. Peithner products (decrease of 14 % in value and 0.3 % in units), but the company Boiron as well (decrease of 9 % in value and 22 % in units). This was in spite of the fact that Boiron invested more than 1.9 mio. EUR in advertisements in the year 2011 and currently continues with big ad campaigns. Sales of homeopathic specialities in the first half of 2012 were – 7 % (Halicar) and – 61 % (Rubisan), respectively, compared to the first half of 2011. Marketing and/or PR campaigns in the first half of 2012 Peithner published the new company magazine “Health from Nature”, also containing a Halicar ad. Re-launch activities for both Rubisan and Halicar in two pack sizes were continued. Several mailings were sent to pediatricians. Peithner runs a regular e-learning education program for doctors and pharmacists and regularly offers pharmacies a bonus campaign.



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INDIA

Corporate news A vision of “100 Billion Rupees by 2014” was given to the entire workforce by the Managing Director of Schwabe India at the beginning of the second quarter. The continuous communication to the field force and the factory employees revolves around the same concept. It was accepted by everyone and all have started contributing to achieve the same. In continuation to the above concept a special campaign “100Dr for 100Cr” is to be launched in the Business Review Meetings. This revolves around the basic fact that “more coverage of Drs, more business”. The entire company is motivated to achieve the goal of touching “100 Billion Rupees by 2014”. Sales development in the first half of 2012 compared to the first half of 2011 In the first half of 2012 local business, i.e. Domestic and Imports excluding the export of globules, grew by 17 % over the first half of last year. Overall domestic sales have shown a growth of 20 % in the reporting period. The major growth contributors are mother tinctures with 38 %, Phytolacca Berry tablets with 37 % and Alfalfa Tonic with almost 43 % growth over last year sales.



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Alfalfa Tonic, Phytolacca Berry Tablets and Alpha Liv have responded well to the trade schemes in the first six months. Now that the season is changing, with the advent of summers, sales of Alpha-Liv will grow and initial signs are positive with sales of Alpha Liv 500 ml at 20.106 units. The cumulative growth is 40 % over last year. The ongoing activities for boosting the corporate image of the organisation like Doctor meetings, retailer meetings, participation in seminars in different parts of the country, the Schwabe Merit Award in Homoeopathic Medical Colleges. Starter kits and OPD campaigns were also done. Marketing and/or PR campaigns in the first half of 2012 Single remedies In the first half of 2012 Schwabe India conducted a marketing campaign for the 1X tablet range. A retail/order booking competition was organised in the first quarter. The objective of the campaign was to give the push to the 1X range and increase the penetration and usage of the same in the Indian market. The target group were doctors. Marketing support such as LBC (leave behind cards), physician samples, reminder gifts (vacuum flask) and samples were provided to the field force. The campaign had a huge impact, with 79 % growth in sales. This growth is more significant because last year Schwabe India had a similar campaign in the same period, which was also extremely successful.



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Vacuum flask as gift for selected doctors Leave behind card

A print campaign for important product ranges was helpful to maintain the zeal and enthusiasm of the field force and get positive response from the medical fraternity. New POS materials were designed and distributed for the for Phytolacca Berry tablets and are also drawing positive responses. Various new control measures were introduced in OTC for smooth and improved functioning of the team. Online or social media activities Activities on Facebook, Twitter and other social websites have increased manifold. 5,000 homoeopathic doctors are already part of the Schwabe India profile. In order to improve the online sales, mother tinctures and dilutions have been added in the product list. An agency is hired for the search engine optimisation and to help the internal team, with the aim of improving the web traffic on the Schwabe India website. A new webpage, “Fattofit.schwabeindia.com” for Schwabe India’s top selling product Phytolacca Berry Tablets, was launched in to enhance product awareness and improve online sales.

United States

Sales development in the first half of 2012 compared to the first half of 2011 In the first half of 2012 total homeopathic sales were up 7 % compared to the first half of 2011. Topical products are driving overall growth, especially Arniflora Arnica Gel.



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While Homeopathic specialities were down 2 % and cough & bronchial syrups down 10 %, single remedies were up 2 %, and topical gels and creams increased sales by even 25 % in the first half of 2012 compared to the same period of 2011. Marketing and/or PR campaigns in the first half of 2012 Specialities A print ad campaign was carried out for Arniflora Gel. The objective was to maintain brand awareness and provide an initiative for repurchase or first-time order of Arniflora (the ad included a coupon for $2.00 off any size Arniflora). Print ads were published in eight different publications in or around the month of June, e.g. “Better Nutrition”, “Delicious Living”, “Natural Health”, “Vegetarian Times”. A sampling campaign was also carried out for Arniflora with the objective of offering a value add opportunity for SNA through Martha Stewart Whole Living Magazine to increase brand awareness and provide an opportunity to sample Arniflora for free. 3,000 free samples were distributed at three different Wanderlust events in June and July. Wanderlust is a festival combining outdoor activities, yoga, inspirational speakers, and music that had attendance last year of roughly 60,000 people (20,000 people per location).



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Belgium

Corporate News VSM Belgium faces several problems with the homeopathic range: Optilan Eyedrops 10 ml are withdrawn from the market since September 2011. During spring 2012 sales suffered due to this lack in the portfolio. The certification of a new eye drop in a bottle is running and is expected to solve the problem. For the junior range VSM Belgium is still struggling to obtain a partial registration which would allow them to make DTC communication. Until then all promotion should be done on a very low level. Positive news comes from the gels and ointments. This range was also in danger, since registration for most of these products is not possible. The regulatory status is now being changed from medicinal products to cosmetics in order to be able to make DTC promotion. In July 2012, the first cosmetic product was launched. The others will follow within the coming twelve months. Sales development in the first half of 2012 compared to the first half of 2011 Total homeopathic sales in the first half of 2012 decreased almost 9 % compared to the first half of 2011. The decrease is only caused by the lack of Optilan 10 ml bottles in the portfolio. Not considering the Optilan range, growth of the homeopathic sales is 8 %. This is the sales development of the different product groups: Optilan – 36 %, Children’s line + 3 %, Muscles & joints + 5 %. Marketing and/or PR campaigns in the first half of 2012 Given the regulatory problems, all marketing actions are carried out on a very low level VSM Belgium relies very much on the advisory role of the pharmacists who are trained during local regional meetings.

The Netherlands

Corporate News In June VSM welcomed Mr. Luc Knispel as new General Manager. He replaced Mr. Wolfgang Hunger, who has fulfilled this position at VSM for a period of five years.



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Sales development in the first half of 2012 compared to the first half of 2011 Total cumulative sales were 9 % below the first half of 2011. Among the skin products Calendulan is highly depending on the summer season, and June was good for sales with this product. Cardiflor did well in June for the first month, but shifting the advertising campaign partly form Cardiflor to Schüßler, Pearls and mental health products takes its toll. In the group of pain products Arniflor is also depending on the summer season and is also facing competition form Biohorma with their THMP Atrosan gel (Arnica). The sales development of the different product groups: Homeopathic specialities – 9 %, Mother & Child – 5 %, Schüßler Salts + 36 %, Single remedies – 17 %. Marketing and/or PR campaigns in the first half of 2012 Specialities At the end of February 2012 VSM decided to start a new campaign, with VSM as the common endorser. In this campaign VSM makes use of the fact that 66 % of Dutch people above the age of 18 are familiar with VSM as a brand. The new focus gives VSM the opportunity to focus on relevant products and sales. The message of this campaign is that VSM is the (most important) advisor in natural remedies and has a natural solution for every (health) problem. The radio was chosen as the most important instrument to promote this message. During the entire year of 2012 (August excluded) radio ads promote VSM products. The message in these commercials starts with the sentence: “At the VSM advice telephone we received the following question…” On TV VSM opted for promoting the campaign in a very popular morning program. A doctor and an advisor promote several VSM products in the health block of this program. Several advertisements in well-known print magazines such as “Libelle” also convey the advisor role of VSM. Of course they also promote different products, e.g. Schüßler Salts, Cardiflor, Calendulan, Arniflor. The look of the VSM website changed as well. Visitors are now able to listen to the radio commercials and ask for advice with a “please call me back”-function. The consumer advice telephone is an important part of the campaign. Since the start of the campaign more and more people are contacting VSM for advice about natural products. The campaign seems to work for Schüßler Salts. Respiratory products did not profit yet. Children’s line The children’s line is promoted in print activities and through online portals. A VSM Child app was also launched. With this application smartphone or tablet owners can find information about more than 100 child diseases. The user can also call the VSM advise telephone directly. The target was to get



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5,000 downloads, which was achieved in only two weeks time. In mid June 6,000 downloads were already counted. Single remedies VSM launched the new www.vsmprofessional.nl website for both phyto and homeopathy professionals. Online or social media activities VSM currently has 1,700 followers on Twitter. 300 friends are found on the general VSM profile on Facebook and 2,400 for the children’s line.

international marketing report 1/2012

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