Marketing Challenges In Promoting Herbal V/S Allopathic OTC Products

REVIEW ARTICLE Am. J. PharmTech Res. 2025; 15(05) ISSN: 2249-3387 Please cite this article as: Arbiya S et al., Marketing Challenges In Promoting Herbal V/S Allopathic OTC Products. American Journal of PharmTech Research 2025. Marketing Challenges In Promoting Herbal V/S Allopathic OTC Products Chaya. M*, S. Nayana, Ankitha , Syeda Arbiya , Shyamala Hegade Department of Pharmaceutics, Sree Siddaganga College of Pharmacy, 1st Left Cross, 3 rd Block, Mahalakshmi Nagar, Near Railway Gate, 80 feet Road, Batwadi, Tumkur-572103. Karnataka (India) ABSTRACT OTC medications are essential for increasing access to healthcare since they allow people to selfmedicate for mild ailments. In this project, the marketing difficulties of over-the-counter herbal and allopathic medications are compared. Despite being largely regarded as safe, natural, and culturally acceptable, herbal over-the-counter medications (OTCs) confront several challenges, including slower onset of action, clinical validation, standardization, and regulatory compliance. The strong scientific backing, stringent regulation, and quick therapeutic results of allopathic overthe-counter medications, on the other hand, make them vulnerable to price pressure, restrictions on promotions, and growing customer demand for "natural" substitutes. The study draws attention to variations in pricing policies, promotional restrictions, consumer perception, and regulatory frameworks. Antihistamine, antipyretic, antitussive, and NSAID case comparisons show differences in adverse effects, adherence, and market share. For both herbal and allopathic overthe-counter marketers to be successful in the cutthroat healthcare industry, they must ultimately embrace flexible tactics, guarantee evidence-based claims, and cultivate consumer trust. For both industries to thrive sustainably, patient-centered strategies, innovation, and responsible promotion are crucial. Keywords: Over-the-counter (OTC) medicines, Herbal products, Allopathic products, Consumer perception, Regulatory compliance, Marketing challenges *Corresponding Author Email: [email protected] Received 06 September 2025, Accepted 02 October 2025 Journal home page: http://www.ajptr.com/ Arbiya et. al., Am. J. PharmTech Res. 2025;15(05) ISSN: 2249-3387 www.ajptr.com 84 INTRODUCTION According to world health organization (WHO) “OTC medicines are drugs that are safe and effective for use by the general public without a prescription, for the treatment of minor health conditions or symptoms.” Over-the-counter (OTC) medicines are drugs considered safe and effective for treating minor health conditions without requiring a prescription1. In India, any drug not listed as prescription-based is treated as OTC. Common uses include relief from colds, coughs, headaches, body pain, menstrual cramps, fever, and other minor ailments. They are intended for symptom relief and not as substitutes for prescription medicines2. Globally, cough and cold remedies dominate the OTC market, with demand rising during the COVID-19 era due to increased self-medication and reliance on e-commerce. Analgesics are highly used, particularly among adults and the elderly3. Medical and nursing students are the most frequent users of OTC medicines, often due to time and cost-saving factors, though awareness of proper usage, dosage, and risks is generally low. This lack of awareness highlights the need for public education on responsible self-medication to prevent misuse, delayed diagnosis of serious conditions, and adverse effects. Examples include:  Allopathic OTC: Paracetamol, Ibuprofen, Antacids, Cough syrups  Herbal OTC: Triphala tablets, Ashwagandha capsules, Tulsi drops4 HERBAL OTC PRODUCTS Because individuals are more concerned about maintaining their health, herbal therapy is becoming more and more popular. Ayurveda was the pioneer of herbal medicine in India, but it is not as well-liked there as it is in the West. According to this analysis, purchasing herbal medications over-the-counter (OTC) without a prescription has both benefits and drawbacks. They can be safe and helpful for small illnesses, but they can be dangerous if not regulated or prepared consistently. People must understand how to utilize over-the-counter herbal medications properly in order to ensure their safe and effective use. Only 30% of herbal remedies in India are prescribed; the remaining 70% are over-the-counter.5 Arbiya et. al., Am. J. PharmTech Res. 2025; 15(05) ISSN: 2249-3387 85 www.ajptr.com Figure 1: Herbal products market share by category ALLOPATHIC OTC PRODUCTS The majority of nations have a well-organized classification system for medications, including over-the-counter medications. There isn't a category like that in India. Regarding medications that can be sold without a prescription, those that can be advised by a pharmacist, and those that can only be sold with a prescription from a doctor, different stakeholders have differing knowledge and viewpoints (Indian Pharmaceutical Association, 2017). Retailers and pharmacists are frequently accused of giving out prescription drugs without a prescription, allowing people to buy any medication they choose. A prescription medication cannot be promoted over-the-counter if it is approved for certain indications that can only be identified and prescribed by a healthcare professional. Customers may discover the impact of medications on their physical health after using them to treat a certain condition. When a patient recovers or switches to a different medication since the first one did not work well, medications used to treat non chronic conditions are usually used up or thrown away. 6 CONSUMER PERCEPTION AND AWARNESS ABOUT OTC PRODUCTS In general, customers have a favorable opinion of over-the-counter (OTC) products. frequently considering them to be practical, economical, and efficient for treating minor illnesses. However, opinions differ according to accessibility, brand loyalty, and safety. When taken as prescribed, many customers think over-the-counter medications are just as safe and effective as prescription ones. OTC products are a practical way to self-treat minor health conditions because they are easily accessible and do not require a prescription. 7 Herbal OTC products There are differing opinions about herbal products; some people think they are effective, while Arbiya et. al., Am. J. PharmTech Res. 2025;15(05) ISSN: 2249-3387 www.ajptr.com 86 others contend that they lack scientific validation. They need accurate and trustworthy information about the herbal product's quality and safety. Alongside the market's expansion, there has been a higher increase in demand for herbal products and worldwide sales of herbal products. More than 80% of the world's population uses herbal products to address their health care needs, particularly in low-income and developing nations. People trust herbal remedies because they are safe, high-quality, free of side effects, affordable, and culturally acceptable. Along with the beneficial effects of advertising, packaging, availability, and awareness of the herbal product, other elements such as product, pricing, place, and promotion, among others, have a significant role in affecting the customer's perception.8 Awareness Herbal OTC products interact with other medications can have side effects and may not be suitable for everyone, Some herbal remedies can interfere with blood clotting, blood pressure. Public awareness campaigns can educate consumers about the importance of reading labels carefully, understanding the ingredients, and looking for quality certification like TRADITIONAL HERBAL REGISTRATION (THR). Allopathic products The market is being driven by the growing number of senior people who suffer from a variety of illnesses, the prevalence of diseases among young people as a result of their daily lifestyle, the availability of these generic medications, their affordability, and rising patient awareness. Furthermore, generic medicine producers are becoming more conscious of the need for reasonably priced health solutions for those with poor eating habits. The industry is expanding due to the widespread use of online pharmacies and the digital accessibility of OTC medications. Taking drugs to treat ailments one has self-diagnosed without a prescription is known as self-medication.9 Awareness multifaceted strategy combining producers, public education campaigns, regulatory agencies, and healthcare professionals is needed to raise awareness of OTC products. Giving customers accurate information to enable them to make safe and informed decisions is the aim. Awareness can be created by Public health campaigns, Pharmacist and Healthcare Professional Education, Digital and Online Platforms. PRICING STRATEGIES FOR HERBAL AND ALLOPATHIC OTC PRODUCTS The pricing of herbal and allopathic OTC (over-the-counter) products involves strategies that balance consumer accessibility, affordability, and company profitability. These strategies consider factors such as consumer demand, competition, regulation, production costs, and brand Arbiya et. al., Am. J. PharmTech Res. 2025; 15(05) ISSN: 2249-3387 87 www.ajptr.com positioning. Pharmacies use different pricing approaches to increase revenue and market share while ensuring long-term viability. The main pricing tactics include: Value-based pricing: Sets price based on perceived value, effectiveness, and safety of the medicine (commonly used for high-value treatments). Cost-plus pricing: Adds a markup to production costs; ensures profitability but may not reflect actual patient value (common for generics). Differential pricing: Sets different prices in different markets based on demand, competition, and purchasing power, balancing affordability and profitability.10 Allopathic OTC Products Allopathic OTC products are often perceived as fast-acting, science-backed, and providing immediate relief for specific symptoms. Their efficacy is typically supported by clinical trials and a long history of use. This allows for pricing based on efficacy-driven value and a degree of premium pricing for well-established, trusted brands (e.g., popular pain relievers, antacids). Pricing strategies for allopathic OTC products involve various approaches like penetration pricing, skimming pricing, Value-Based Pricing, Market segmentation pricing, to maximize revenue, ensure market access, and balance profitability with affordability. Allopathic OTC Products involve significant R&D investments for drug discovery, clinical trials, and regulatory approvals, even for Rx-to-OTC switches. These costs are a major factor in their pricing, often leading to cost-plus pricing elements and the need to recoup large initial outlays.11 Herbal OTC Products Herbal OTC Products generally associated with natural ingredients, fewer side effects, holistic well-being, and preventive care. Their perceived efficacy might be based on traditional knowledge and unreliable evidence, though clinical validation is increasing. Pricing often reflects this "natural" and "safe" appeal, which can lead to value-based pricing if the brand effectively communicates these benefits. However, they can also be positioned as more affordable alternatives to allopathic options, especially for chronic or lifestyle-related conditions. The pricing strategies for herbal OTC products involves various approaches like penetration pricing, value-based pricing, market segmentation. Historically, R&D costs have been lower, often leveraging traditional knowledge. However, as the industry professionalizes and seeks scientific validation for efficacy and safety (e.g., developing standardized extracts, conducting clinical studies), R&D investments are increasing, which will put upward pressure on prices. Arbiya et. al., Am. J. PharmTech Res. 2025;15(05) ISSN: 2249-3387 www.ajptr.com 88 Table 1: Pricing strategy Allopathy OTC HERBAL OTC Cost plus Significant due to high R&D, manufacturing, and regulatory compliance costs. Historically lower, but increasing with formalization and clinical validation efforts. competitive Extremely popular. A branded paracetamol versus another branded paracetamol, or against generics, are examples of direct competitors that are frequently used to benchmark prices. In low-differentiation, high-volume markets, severe price battles are typical. more prevalent. In addition to directly competing with allopathic remedies for specific conditions, herbal brands also indirectly compete within their market (e.g., Patanjali vs. Himalaya). may be more affordable, although there are some highend herbal brands available. Value based used for items that are different from the competition and have special advantages, quick action, or particular formulas (e.g., "max strength," "non-drowsy"). Marketing and branding that are effective highlight these distinctive value propositions. Very important for premium herbal brands. Value is often derived from "natural," "safe," "holistic," "no side effects," and a connection to traditional wisdom. In order to support higher costs, brands spend money promoting these advantages. skimming Potential for truly unique OTC medications (such as a novel delivery method or a first-inclass OTC for a specific condition) Early adopters are the goal of the initial high price. Less common, but might be applicable to new herbal formulations or ones that are positioned as novel remedies and supported by significant clinical data. penetration Employed for new entrants in a congested area to acquire market share quickly against existing competitors (e.g., a new generic OTC pain medication). Often used by newer or smaller herbal brands to gain initial growth, particularly when they are competing on price. psychological Utilized widely (e.g., "$99.99," "Buy One Get One Free"). Focuses on perceived deals and savings. Also common. May emphasize "value packs" or bundle offers for long-term health regimens. Product line Common for different strengths, pack sizes, or specialized versions (e.g., "Day & Night" cold remedies, children's vs. adult versions). Similar application, often seen with different formulations for specific issues within a brand's herbal portfolio (e.g., different types of Ayurvedic churna or balms). Arbiya et. al., Am. J. PharmTech Res. 2025; 15(05) ISSN: 2249-3387 89 www.ajptr.com Figure 2: Graph representing pricing strategy of herbal v/s allopathic OTC products PROMOTIONAL AND ADVERTISING RESTRICTIONS OTC PRODUCTS In India, there are a number of laws and rules governing the promotion and advertising of OTC goods in order to protect the public and avoid false claims. These restrictions vary by country and region, but they generally aim to: Prevent misleading claims, Protect vulnerable populations, Promote safe use Advertisements are meant for product promotion to an extent of even exaggerating the usefulness of the product. However, when the claims made by the manufacturer are false and detrimental to the consumers, the product advertisement becomes illegal. There are two categories of false and misleading advertisements. The first type of advertisements have the potential to cause consumers financial loss and mental harm since these advertisements infringe upon consumer’s right to procure the right information and make an informed choice. The second type of advertisements are meant for marketing cures and promoting efficacy of questionable medications. These type of advertisements have a high potential to cause harm to consumer health. Drug advertising has become a platform in India in recent years to promote false drug claims and exaggerate drug efficacy using movie stars as spokesperson. False advertising affects consumer health. The influence of advertisements on consumer choice is indisputable. Promotion of OTC product refers the full range of marketing and communication initiatives used by producers to educate, convince, and remind consumers about their OTC medications in an effort to encourage purchase and repeated use. Unlike prescription (Rx) drugs, which are primarily promoted to healthcare professionals, OTC products are directly marketed to the general public. This DTC approach is central to their promotion. Arbiya et. al., Am. J. PharmTech Res. 2025;15(05) ISSN: 2249-3387 www.ajptr.com 90 Herbal OTC Products Herbal OTC products, often perceived as "natural" alternatives, may face additional scrutiny due to the lack of standardized dosing and the potential for unproven health claims. On the other hand, allopathic OTC products, which typically undergo more rigorous clinical testing and regulatory approval, are still subject to strict guidelines, particularly regarding the substantiation of health claims, side-effect disclosure, and comparative marketing. To protect consumers from misleading or exaggerated claims, regulatory frameworks govern how these products can be advertised. These frameworks typically include truth in advertising, scientific validation of claims, balanced communication of benefits and risks, and restrictions on targeting vulnerable groups such as children or individuals with specific health conditions. Specific restrictions for HERBAL (AYUSH) OTC products The Drugs and Cosmetics Act, 1940 and Rules, 1945 (specifically provisions for ASU drugs): Promotions are frequently required to display or make reference to any official AYUSH certifications or marks in order to establish credibility and meet regulatory requirements, while this is not technically a requirement. Lack of these could be interpreted as deceptive. Claims Based on Traditional books made for a lot of herbal items are based on references to them in reputable traditional books (e.g., ayurvedic pharmacopoeia). This should be appropriately reflected in advertisements, which can say "as per traditional texts" or "as mentioned in [specific text]". Avoiding Unsupported "Miracle Cure" Claims where one of the main issues with AYUSH products is this. The Ministry of AYUSH aggressively keeps an eye out for and responds to deceptive ads that make inflated or unverified promises, particularly those that veer into the realm of "magic remedies" or make claims to treat illnesses included in the DMRA Act. No "Modern Drug" Claims without Proof unlike many traditional formulations, herbal medications must be supported by rigorous modern clinical trials in order to claim the same "fast-acting" or "scientifically proven" effects as allopathic drugs. Ingredients & Purity: Natural origin, purity, and the particular herbs used are frequently highlighted in promotions; however, these statements need to be true and supported by evidence. For some AYUSH products, the warning "CautionTo be taken under medical supervision" applies: Like Schedule G, some conventional formulations may need this warning to limit public promotion if they include specific chemicals or are intended for particular purposes. Allopathic OTC Products All advertising must follow strict guidelines that include: Arbiya et. al., Am. J. PharmTech Res. 2025; 15(05) ISSN: 2249-3387 91 www.ajptr.com Substantiation of claims: All medical claims (e.g., "prevents cold symptoms") must be supported by clinical trials or scientific evidence. Balanced presentation: Ads must mention possible side effects, warnings, and contraindications. No misleading visual representation of effects (e.g., no “miraculous recovery” imagery). Prohibition of endorsements from healthcare professionals unless explicitly authorized. The Regulatory Body of allopathic OTC product in India is, the Central Drugs Standard Control Organization (CDSCO) governs OTC allopathic products. In the U.S., the FDA (Food and Drug Administration) regulates OTC medicines under the Federal Food, Drug, and Cosmetic Act. In the EU, Medicines and Healthcare products Regulatory Agency (MHRA) oversees OTC drugs.12 Specific Restrictions for ALLOPATHIC OTC Products: The Drugs and Cosmetics Act, 1940 and Rules, 1945: In India, OTC allopathic products are regulated under the Drugs and Cosmetics Act, 1940, and its rules. While there isn't a separate OTC policy, certain restrictions and guidelines govern their sale and marketing. These include restrictions based on drug schedules, labeling requirements, and the need for a pharmacist's presence for specific products. The approved indications, dosage, and warnings on the product's official label and medicinal license must be strictly followed by all promotional statements. Advertising benefits or uses that have not been authorized by the drug authorities is prohibited. Although DTC (direct-to-consumer) advertising of prescription-only medications is not specifically prohibited by law, it is a well-established industry practice and regulatory expectation that such advertisements not be made to the general public. By definition, DTC advertising is only allowed for OTC products. Advertising should always encourage the safe and appropriate use of the medication, following the format of the "Drug Facts" label, which is the international standard that India is formally adopting. India is working to define over-the-counter medications more precisely. Advertising must adhere to these future precise criteria, and once established, there will probably be a "positive list" of components and items allowed for over-the-counter sale and promotion. Common Advertising Restrictions for BOTH Herbal and Allopathic OTC Products: The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 (DMRA Act): The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 (DMRA) regulates drug advertising in India, prohibiting misleading promotions and the advertisement of "magic remedies" claiming miraculous cures. It bans advertisements for drugs treating serious illnesses like diabetes, cancer, and AIDS, aiming to protect public health from deceptive and harmful Arbiya et. al., Am. J. PharmTech Res. 2025;15(05) ISSN: 2249-3387 www.ajptr.com 98 9. Dwivedi A, Lodha G. A study on various marketing strategies used for promotion of OTC Drugs. Research Hub: International Multidisciplinary Research Journal. 2015;2(2):1-4. AJPTR is  Peer-reviewed  bimonthly  Rapid publication Submit your manuscript at: edito[email protected]