Wednesday, December 05, 2007

Why are they doing this?

Every once in a while, a company rolls out a product that, at least on the surface, would appear to cannibalize future sales of that product or sales of a related product line. If you're a market leader and you've established a pattern of repeat sales and customer loyalty, why come out with a product that lengthens the time between sales (longer-lasting XYZ; shoes with soles that never wear out)? Of course, there are good reasons to do this, but the cynic in me says most companies are more concerned about short-term sales and "shareholder value" and less concerned about long-term relationships.

Given the amount of bugs, viruses, bacterial and ear infections our family has succumbed to in the last seven weeks, I decided to go and buy a whole bunch of new over-the-counter products at the pharmacy today--both curative and preventative.

I bought "Early Defense" foaming hand sanitizer from Vicks, a brand that was seared into my brain at a very young age, when my mother used to rub me down with Vicks VapoRub (pronounced "Boppo-Roob" in the Spanish-speaking world). And there's no better way to guarantee rest when fighting off a cold than Vicks NyQuil. So, my question is this: If people are buying and using Vicks hand sanitizer, and it truly works, then won't those same people have far less need for VapoRub and NyQuil because they'll become sick less often? And if so, why do it?

Three possible answers: 1) The stuff doesn't really work (though I have to admit, the cucumber/mint scent would almost make it worthwhile even if there were no antibacterial properties). 2) The clear solution is so easy and cheap to make that the margins are off-the-charts. 3) Preventive products are clearly booming (just take a stroll down the cold medicine aisle and look at all the zinc lozenges, herbal supplements, Zicam-like "cold shortener" products there are) and Vicks (Proctor & Gamble) wants a piece of that market as a hedge.

Regardless, I've disinfected my hands with the fragrant foam eight times today.

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