Harsh's Coffee Can Portfolio: Views Invited

P&G doesn’t have much experience on OTC medicine front, except Vicks (under P&G Hygiene). And there also they were successful mainly on the ointment, spray, inhaler and candy category, but were not successful with tablets or syrup category. The reason I can fathom is the lack of doctors’ connect through (MR route) as people usually take tablets or syrup after consulting with doctors. Now P&G Health products are mostly tablets & syrups. So, there is a possibility of less success here too unless they mobilize a MR team.

The main strength of P&G has always been excellent branding & distribution, and I hope the acquired Merck’s portfolio will benefit from that. However, branding and distribution can take you only upto a scale after which you’ll need more products in your stable to keep growing at a good pace. Now, I am sceptical about P&G’s competence on becoming successful at launching new OTC medicines and make them popular like the original Merck’s brands.

Also I suspect their willingness to launch a potential good product through listed companies given that they haven’t launched any new products under their already existing companies. Also they have a sufficient product overlap across the listed companies. For example: Nasivion is a Nasal Decongestant under P&G Health whereas Vicks has Sinex Decongestant that serves the same purpose. I suspect that P&G may become less aggressive on one or both the products to avoid cannibalization. There are many such products overlap in the listed companies which always puts me off.

You can also read the following reply to Ranvir’s portfolio thread.

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