Summary
Halls is the brand originally founded in 1930 by its founding company, Halls Brothers. Cadbury-Adams, a branch of Cadbury Company, sells its goods under Mondelez International. However, Halls has long been advertised as a cough suppressant and oral anesthetic brand. This move is next to well-known brands like Trident gum, Dentyne, and Chiclets (Kokoska et al. 2019). When writing this, Mondelez International has become the owner of the brand “Halls” in the global market. With its long history, Halls has achieved decent success in many markets and countries, such as Argentina, the United States, Mexico, Japan, Peru, Colombia, Ecuador, Pakistan, Philippines, China, South America, and Denmark. This research into Halls’s success begins with an industry analysis and environment scan. The second part analyses Halls’s segmentation, targeting and positioning.
Industry analysis
Globally, cough syrups are priced competitively, with Halls leading the North American market. For example, Ricola, Strepsils, and Vicks are all household names (Anderson, 2018). Halls was one of the most commonly prescribed medications in the United Kingdom in 2016. Additionally, the business reports that its products account for more than half of all cough-drop sales globally. The corporation produced net revenues of $700 million in 2018. Indeed, it is one of the few sign companies in the industry. Ricola generates around 50 million USD in annual revenue, while Reckitt Benckiser, the owner of Strepsils, will generate only 14 million USD in 2020 (Marathe, 2020). Modelez International has the highest sales of any competitor in 2021, as seen by the figures. As illustrated by the chart below, the gap between the two companies is rather large.
This can also be illustrated in a pie chart as shown below.
Due to the current pandemic, Market analysts anticipated that hall drop sales would climb even higher this year due to increasing demand. In general, Halls Cough Drops are doing exceptionally well in its industry, and the company’s future appears to be extremely bright due to the anticipated increase in demand.
An Environment Scan
Only a small percentage of people seek prescription medication for common conditions such as colds and coughs, while the great majority rely on over-the-counter (OTC) treatments. The transition of OTC medications from brick-and-mortar pharmacies to online merchants represents a significant technological advancement. Today, you can acquire a wide selection of OTC medications online, with the cough and syrup businesses dominating the market. As a result, critical populations that were previously unavailable via standard distribution pathways are now available. Similarly, the global cough syrup market is predicted to expand rapidly between 2019 and 2027, owing to an increase in respiratory disorders and rising levels of air pollution. In addition, a rise in people’s incomes in developing countries would help the global cough syrup market grow.
Observers can observe the same customer trends and behaviors across various brands. Cough drops are in greater demand throughout the winter season, resulting in increased sales, particularly in countries that experience cold weather. Customers’ preferences evolve, and Hall’s brand has altered its goods to meet those evolving needs: cold relief in the northern hemisphere, sweet joy in the southern hemisphere, and a refreshing beverage in the southern hemisphere. Keeping ahead of current trends and understanding consumer and client preferences and requirements is critical for this industry and other industries in general. Additionally, by increasing product innovation and introducing new flavors to the market, the brand may be able to increase its competitiveness. On the other hand, alternative over-the-counter medicines for throat infections are becoming increasingly available, jeopardizing the industry’s long-term viability. Alternative treatments include throat sprays and cough syrups, which are helpful.
Although most countries are undertaking initiatives to reduce cough-related diseases, the political climate is hostile to these efforts. The restriction of cigarette usage is one piece of legislation that affects the cough and syrup industry. Consider H.R. 2339, which the House of Representatives passed on February 28, 2020, and is called the “Protecting American Lungs and Reversing the Youth Tobacco Epidemic Act.” President Donald Trump signed it into law on February 28, 2020. Under the wording of this law, it would be illegal to sell flavored tobacco products, including flavors found in electronic cigarettes, menthol cigarettes, and flavored cigars, among others.
Additionally, most professional bodies are against OTC cough medicines. For example, Yong strongly discourages children under 14 from using over-the-counter cough and cold medications (Yong, Et al. 2015). The likelihood of unpleasant consequences surpasses any potential benefits. Coughing is a very common occurrence among children. On the other hand, cough and cold drugs are useless in children and can even be harmful to them (Whetsel, 2018). Dr. Richard Irwin of the University of Massachusetts Medical School made the statement in response to media questions. These discoveries could spell the end of cough medicine and the entire over-the-counter (OTC) business.
Researchers may find a similar line of thinking in the fact that over-the-counter (OTC) cough and cold medications have the potential to be lethal in children under the age of one. In October 2008, the United States Food and Drug Administration suggested that children under four not be given over-the-counter cough and cold medications. While brands such as Ricola and Halls assert that their products are generally safe for toddlers because of the active component of menthol, a basic cooling agent, this assertion is disputed. Given that the company distributes products to children between the ages of two and four, this can significantly influence revenue.
Another trend in the sector is the popularity of natural products. J&J bought Zarbee’s Naturals in July 2018, bringing the company’s total market value to $1 billion. For kids, natural cough syrups were in high demand, so J&J bought the company. Customer patterns and behaviors are consistent across various industries and product categories. Cough drops, for example, will see a boost in sales throughout the winter season, especially in nations with chilly temperatures, due to increased demand for the product. It is critical for the Halls brand to remain relevant in changing consumer preferences. The brand offers a cold relief option and a sweet treat to customers in the northern hemisphere who live in hotter and drier regions. Understanding consumer preferences and demands and the ability to monitor trends and ascertain consumer preferences and expectations is critical for this industry, as well as for other industries in general, and particularly for the food and beverage industry. Another way to make the company more competitive is to be more creative with the product and add more flavors.
Additionally, market demand is shifting as a result of geopolitical concerns. As of 2019, cough syrups were more readily available in retail pharmacies throughout the United States. It accounted for the biggest percentage of sales in 2019 due to an increase in the senior population in the Asian area and less stringent regulations in the region addressing the abuse of cough and cold remedies. Despite this trend, demand in the United States, both from humans and dogs, have resulted in market shortages (Landge, & Petare, 2021). These have also been attributed to labor shortages resulting from the implementation of COVID-19.
Segmentation and Targeting
The organization uses demographic segmentation as part of its marketing strategy, which categorizes a company’s target market based on demographic data such as age, gender, and disease prevalence. The goods on the market can suit everybody, from infants as young as two to the elderly well into their nineties. Consider the Halls brand, which developed a product called Halls Kids Cherry Cough and Sore Throat Pops with a tart cherry flavor to appeal to children and teenagers.
Halls’s brand also capitalizes on gender segmentation by selling a range of mild to extremely powerful flavors based on the population’s male-female ratio. For instance, the menthol flavor is available in two strengths: extra strong menthol flavor drops and extra strong menthol frozen cherry flavor drops. Among the calming products at the store are Halls Honey Naturally and Artificially Flavored Cough Drops and Halls Honey Vanilla Flavored Cough Drops, both of which are honey-flavored. All of Halls’s other brand names have the same level of variety as the rest of the company’s products.
Modelez International is the distribution network via which the Halls brand serves its diverse customer base and market. Modelez International has been in operation for more than three decades. It can boost sales due to its well-established distribution network. Due to the breadth of its brand portfolio and differentiated product offerings designed to meet the needs of a global market, it is strategically positioned to capitalize on changing consumer tastes worldwide. Therefore, with the economies of scale that the company has achieved, Halls can offer competitive prices to its consumers.
The Halls brand operates at maximum capacity to meet the global market’s expectations. It has about 300 plants in all, located in numerous locations worldwide. This international firm employs around 170,000 individuals in a variety of locations worldwide. Hall packages its children’s items in brightly colored plastic bags, ensuring that they stand out from the competition. These are medical, which helps them keep its reputation as a fun and useful brand.
Positioning
The Halls brand employs issue and solution positioning tactics to strike a balance between enjoyment and practicality to express its message. Its objectives include pain alleviation, relaxation, defense, and MINIS. Breezers, as well as the establishment of a separate category for children. The children’s cough syrup series in the short term, it helps to alleviate coughing and sore throats. Each pop contains 5 milligrams of menthol, an ingredient that can be used to alleviate discomfort, aches, and pain. Additionally, it is suitable for children, has a lovely cherry flavor, and gradually dissolves in the mouth when one pop is placed in it every two hours as needed to alleviate the condition’s symptoms. All of these things are also available in a wide range of other flavors, like Cherry, Honey Lemon, and Menthol-Lyptus, to name a few.
Another technique for brand promotion has been to position the Halls brand through the use of celebrities. Consider Halls’ work with famed sportscaster Joe Buck in developing the HALLS minis Sugar-Free Cough Drops, which debuted in 2019. Joe Buck appeared on various creative channels throughout the campaign, including social media, paid-to-advertise, and earned media, in addition to an in-house-produced video that provided fans with a behind-the-scenes look at how he prepares for broadcasting games.
According to the government, there is no such thing as a “free market” in India. The fact that Procter & Gamble’s lozenge brand, Vicks (mostly supplied through pharmacies), was already a popular seller on the medical market for coughs and colds impacted Warner Lambert’s decision to differentiate itself from Halls by building a new brand identity for it. Initially a platform for coughing and colds, halls turned into a “cool and delightful” confection.
Brand Evaluation
Product
Halls is a cough suppressant available in a range of dose forms, including cough drops and throat lozenges. Its “vapor action” is one of the aspects that has garnered the most attention. Halls’ Plus, Halls Sugar-Free, Halls Warm-Ups-menthol vapors soothe throats, and Halls-Soothes a sore throat are only a few of the company’s goods. Halls Breezers, Halls Naturals, Halls Defense Sugar-Free, Halls Breezers. These essential products are available in a variety of flavors, including Blackcurrant, Black Cherry, Caribe, Citrus Blend, Fresh Mint, Spearmint, Colours, Cherry, Air Mint, Mountain Menthol, Pina ‘Colada, Licorice, Kiwi-Apple, Ice-Blue Peppermint, Raspberry, Pomegranate, Orange, Strawberry, Chela-Limon, and Peach. While many of the Soothers varieties are intended to alleviate the symptoms of a common cold, none of these products contains menthol as the principal active ingredient.
Price
Following in-depth research of client attitudes, Halls determined that the company would employ a sensible pricing plan compared to its competitors. It was critical to have a strong presence in the cough medicine sector to grow and sustain a successful business. Additionally, halls face severe competition from a diverse range of organizations. Although the product’s costs are modest, and a buyer may acquire it without hesitation, it is a wise investment due to its low expenses. This presence has facilitated the organization’s efforts to expand its revenue-generating ability.
Place
For many individuals in the United Kingdom, Halls is a well-known and well-recognized brand that began in Whitefield and has expanded to a very large territory that spans a variety of international markets. Halls began its adventure in Whitefield and has since expanded to include a vast geographic area encompassing numerous countries in the global market. It operates in several countries worldwide, including the United States of America, Argentina, Japan, Peru, Mexico, Colombia, Pakistan, the Philippines, Ecuador, China, Denmark, Brazil, and South America. Halls manufactures its goods and modifications in a variety of locations. Halls’ products are available across India, in both rural and urban regions, through chemists and pharmacy stores located throughout the country. Halls’ product lines are available in more than 100 countries worldwide. People can buy Hall’s products from a few internet pharmacies specializing in selling pharmaceuticals.
It is critical when it comes to positioning Halls’ products on the internet. Through collaborations with e-commerce behemoths such as Amazon and Alibaba and the company’s specialized websites such as gethalls.com, It can reach and sell to people in all 50 states of the United States and around the world. The e-commerce platform comes with the advantage of fewer labor requirements. This has never been more important in the current pandemic, where labor is in shortage due to the Covid-19 pandemic. Moresore, the large online stores allow Halls brand to create space for more production.
Promotion
Advertising, direct marketing, public relations, and sales promotion compose the Halls’s marketing communications mix. Promoting the Halls brand is crucial, and the corporation has used a range of promotional methods to improve public awareness of the brand’s existence. To promote sales, the corporation has developed imaginative advertising that is timed to coincide with seasonal patterns, such as the flu season and weather variations. It has succeeded by marketing its products through various electronic, social, and print media channels.
Commercials are aired on several television networks and radio stations, with Halls’ appearing in the program’s background on the relief and refreshment platform. Advertisements are placed in magazines, newspapers, and hoardings in strategic locations throughout society to ensure that they receive the maximum amount of exposure feasible. The company has made substantial use of prominent social media platforms and websites. To boost its overall visibility, the platform has a high presence on Facebook, Twitter, and YouTube. In addition, the company’s official website has important information for anyone who wants to learn more about the company.
Additionally, Halls’s packaging has been described as innovative and visually appealing. The packaging satisfies the consumer’s psychological needs by placing words of encouragement outside the package (Kauppinen-Räisänen, et al. 2020). At Halls Pharmacy, customers can find inspirational messages on the cough drop wrappers, such as “Be resilient.” and “Get back in there, champ!” Additionally, this relationship strengthens its brand positioning as a medicinal product. It also gives buyers a sense of ownership over the product, leading to more customer loyalty and repeat purchases.
References
Kauppinen-Räisänen, H., van der Merwe, D., & Bosman, M. (2020). Global OTC pharmaceutical packaging with a local touch. International Journal of Retail & Distribution Management.
Kokoska, L., Kloucek, P., Leuner, O., & Novy, P. (2019). Plant-derived products as antibacterial and antifungal agents in human health care. Current medicinal chemistry, 26(29), 5501-5541.
Landge, R. R., & Petare, P. (2021). Study on Consumer Behaviour in Covid Pandemic with respect to OTC medicine. International Research Journal of Humanties and Interdisciplinary Studies, 2(5), 104-113.
Marathe, P. A., Kamat, S. K., Tripathi, R. K., Raut, S. B., & Khatri, N. P. (2020). Over-the-counter medicines: Global perspective and Indian scenario. Journal of postgraduate medicine, 66(1), 28.
Research and Markets. (2021). Worldwide cough syrup industry to 2027 – increasing number of patients suffering from respiratory disease is driving growth. GlobeNewswire News Room. Web.
Whetsel, T. (2018). Can menthol-containing cough drops worsen a cough? Pharmacy Today, 24(8), 14. Web.
Yong, C. C., Islahudin, F., & Shah, N. M. (2015). Knowledge, attitude and perception of parents on the use of cough and cold medications in children. Southeast Asian J Trop Med Public Health, 46, 512-25.