In its 100 years the iconic Nyal brand name has featured on many different OTC medications. Most recently its focus has been in the area of cough and cold. Nyal has been primarily a supermarket brand.
Despite recent advertising and promotions, new packaging and line extensions sales were poor. Competition increased in winter 2010 in the grocery channel as leading pharmacy cough and cold brands began to be sold in supermarkets. This contributed to further declines in sales of the Nyal brand. The deletion of Nyal SKUs by Woolworths and Coles was a certainty. For survival of the brand there was a desperate need for new opportunities in new healthcare categories. These needed to make sense to the organisation itself, the brand, consumers and retailers.
The Therapeutic Skincare Category (TSC) was pharmacy only at the time. Launching Nyal Therapeutic Skincare into the grocery channel was a logical strategic decision. It made sense because the organisation had the knowledge, know how and capacity to facilitate such a launch because it owned the Dermaveen brand. Not only did it help in increasing production volumes and gaining further efficiencies, it also maintained Dermaveen as pharmacy only for some time to come.
Successful line extensions and portfolio development must make sense to consumers, the retailer and recommenders like doctors and pharmacists.
With an extensive range and a commitment to new product development the clear positioning of variants proved invaluable for the Dermaveen brand.