2. I. Introduction
Nowadays, condoms are considered one of the best birth control methods out in the
market. Unlike other contraceptives, they’ve been proven to be effective in the use of
STD and HIV/AIDS prevention. We talk about it, but do we know exactly what a condom
is? A condom is a thin, flexible pouch impervious to blood as well as penile and vaginal
secretions. It is the only contraceptive that also protects against STIs (sexually
transmitted). In this case study we will focus on the company which is the biggest
producer of condoms around the world: Durex. It has the most important market share
in the world. Durex company has also sold condoms in over 150 countries all over the
world and is the market leader in more than 40 markets. The Durex brand accounts for
29% of the world's four billion condom market, making it the Number one of condom
brand in the world.
II. Situation Analysis
a. The Situational Environs
i. Demand and demand trends
The first question that come in mind when you are
going to market a product is : « Who is actually going to buy my product ?” We have to
figure out what kind of customer they are in terms of behavior and also we have to
approximately evaluate the importance of the market. As the result, if we focus on the
market of condoms, we have to think about everybody: young, less young, mature people,
single person or married couples and so on.A survey realized in 2005 on teens aged 15 to 17
by The Kaiser Family Foundation and Seventeen magazine found that:“More than one-third
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3. of teens surveyed (38 percent) said they had had sexual intercourse. Nine out of 10 teens
who've had sex said they use birth control all, some, or part of the time. Virtually all teens
who have had intercourse (98 percent) have used condoms. But half also admitted they'd
had sex without a condom. Also, a Massachusetts statewide survey in 2005 among 3,500
high school students showed condom use is increasing among teens in that state. “About 45
percent of teens surveyed said they'd had sex at least once.” First of all, the results of this
experience show that people have sex younger than in the past and apparently they are
more educated about sexuality. Also, that demonstrates the fact that a lot of people still
don’t use a condom each time they are having sex or a lot are not satisfied by the use of a
condom because it is said that “they would have sex without a condom.”Consequently,
there is a huge opportunity for developing the market of condoms.To sum up, more and
more persons have sex early in their life. The majority of persons lose their virginity in high
school or the beginning of college. Also, a lot of teenagers have intercourses before the age
of 15. And as all we know, intercourses need also to be practiced with a condom. Moreover,
at the age of 15, sometimes, people are not enough mature to take the decision to wear a
condom during a sexual relationship. On another hand, these last years, another important
fact is that more and more people have a lot of different partners in their life. The number of
sexual partners is an important indicator of sexual risk behavior. The more you have
partners, the more you are exposed to the fact of contracting a STI. Also, it has been
demonstrated that men have more partners than a woman has.
According to the “The Journal of Sexual Medicine” containing a report on the National
Survey of Sexual Health and Behavior (NSSHB) thanks to a study group of nearly 6,000
participants between the ages of 14 and 94, we can understand what the trend about the
use of condoms is. The fact is that condom use is now becominga trend for young people.
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4. Indeed, nearly 80% of boys and 60% of girls under the age of 18 said that they had used
condoms during sex. That’s nearly twice the rate at which young adults used condoms, and
nearly four times that of adults over 40.These results have a huge implication for global
public health policy and current efforts to promote condom use, and show that young
people are not reckless and careless when it comes to sex. They are educated by different
ways like school or particular programs.
Moreover, condoms are usually used by people who are not married but these past months
in some regions where there is a lot of advertisements against AIDS and in favor of the
condom use, even married couples use them as a new trend.
Another observation is that in developing countries only 3% of questioned people say that
they use frequently condoms. But condoms are more widely used in countries. For example,
in Japan, half of the population who use a contraceptive use condoms.
When we focus on young people, the problem is the access to condoms. In fact, it is for
some young people a shame to go to buy condoms and even if they want to buy some, the
price is another issue they have to face. Indeed, condom’s price increased these past years.
Consequently, who are we going to target to sell Durex condoms? Who represent the target
market?
After finding out previously what are the trends and thoughts about condoms we can now
say that the target market will be young people between 16 and 24 years old. In fact, if we
success in making young people using condoms for their first sexual relationship, they will be
more aware after and will still use condoms in their everyday life. Also, since more and more
people are infected by AIDS and STDs, we could focus on selling condoms to these people. In
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5. fact, it is the only way they can have a sexual life without infecting their partner. To finish,
we could focus on the people who can’t or don’t want to use another kind of contraceptive.
Moreover, the brand Durex, leader on the condoms market wants to focus on another side
of the condom and want to promote a strategy of pleasure and sexual fulfillment. As the
result, the brand creates new products with colors, textures, vibrations… Consequently,
besides focusing only on young people, Durex focus also on older customers (between 30
and 55 years old) who want to spice their sexual life.
Customer profile. Obviously, because we are studying in this case the male condom, the
customer profile is composed of men. But also, with the development of our society, women
take more and more responsibilities and as the result they buy male condoms in order to
cover unexpected situations and in order to do not be in a risky situation.
ii. Social and cultural factors
All over the world, the fact to use condoms is also dictated by our thinking, our socio-cultural
environment and our religion. In fact, for example, some Protestant or catholic people don’t
want to use any condom because it is against what God says. Also, sometimes, if the family is
not used to talk about sexuality or to use condoms, the future generation will not have the
“idea” to use them. At the same time, our social environment has a big influence on our
behaviors. Nowadays, preventing people about sex start with teenagers. In fact, educate
people about this topic is very important but also friends and relatives can influence our
opinion. Moreover, the sensation a condom creates is not natural, so people were at the
beginning not agree to use it. In another hand, it still exists a lot of reasons why people don’t
like to use a condom. They say that there is a lack of sensation if they use it, or they are
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6. afraid that the condom breaks. Also, women are still afraid to ask men to use a condom if
they don’t use it naturally.
As the result, a lot of factors culturals and socials are important to take into account if we
want to success in selling in this marketing process.
iii. Economic and business conditions
With the crash of the economy these past years, the price of the latex increased a lot. We
can see on the graphic that since 2006 the price of it rises from117,8 cents per pound to
262,9 cents per pound. The price is twice higher. That explains a lot the price of the condoms
which is becoming really expensive. Also, the business conditions are not really favorable to
have a good return on investissment (ROI) since the raw materials are expensive. In fact, the
company cannot increase the final price of the product too much because the consumer is
not going to buy it, but it also needs to keep a good profit from the production of its
condoms. The big trend is also that since the price of a condom has increased, young people
or students can’t afford it or prefer to spend money in something else.
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7. iv. Politics
This part cannot be traited because politics don’t influence the way the population use
condoms in the USA. But an example of politic that influences the behavior of people is in
China where couples cannot have more than one child. As the result they are obliged to use
a contraceptive and use condoms.
v. Laws and regulations
A condom is subject of a lot of reglementations and standards in order to insure security and
hygiene to the customer. First, all the condoms are tested with an Electronic Testing
machine in order to provide a good quality product. This machine checks for holes and
imperfections. Then, the next test is the “water leak testing” realized on a sample of
2,000,000 condoms per month. That means that the condoms is filled with mater and
suspended for a minute to check for leaks. To finish, the last test realized on the condoms is
the “air inflation test”. It is to check for burst strength and elasticity and it is realized on a
sample of about 500,000 condoms per month. If the condoms fail on any of the tests, the
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8. entire batch (432,000 condoms) is discarded. The standards size for a condom are : 18 liters
but Durex minimum latex standard is 22 liters and typically, Durex condoms will expand to
40 liters before to break. All condom types are also dermatologically tested. As the result,
Durex enjoys a good reputation about its product quality. In fact, Durex has over 75 years of
experience of manufacturing condoms. The company also doesn’t want just to meet
worldwide safety quality standards, but wants to exceed them and be the best on the
market. Durex company is also looking for new ways to improve their products or spotting
new trends in sexual behavior that may lead to whole new product areas. They want to be a
really innovative company. That is why millions of people across the world trust Durex every
day.
b. The Neutral Environs
i. Financial environment
As economic crisis has happened in recent years, investors don’t have strong interests in
financial product. However, the daily product market is still beneficial for them. Condom as
one kind of necessity in people’s lives, makes the demand side keep constant or even has
slightly growth. There are still lots of funds out there in the market. Large companies are
interested in developing their markets. They have cash in their pocket, and desire to invest
new things to cover their lost in this economic crisis. Condom can be one type of investment
to increase profit, and still has many rooms to catch in the future.
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9. ii. Government environment
The government has a small but not insignificant importance in the fact of selling condoms.
In fact, even if the government doesn’t promote any brands in particular, it invites people to
use them by creating advertisements about AIDS. As the result, condoms brands benefit of
these advertisements.
iii. Media environment
The media environment include everything
that has a relationship with communication
about the product : the logo,
The Logo :
Communication realized by the brand starts first of all by the logo.
Durex logo is a blue horizontal rectangle. That makes us think about a condom pattern.
Moreover, the edges of the rectangle are straights and curved which symbolize strength and
softness. Exactly what the customer expects from a condom. Then, the blue color of the logo
symbolizes dreams and peace. The rectangular form and the color of the Durex logo are
ideally chosen to be easily remembered by the customer. Moreover the name of the brand is
easy to say, easy to spell, easy to remember and easy to read.
The communication about condoms in general.
Durex has a panel of products available to anybody but the topic concerned is sex. As the
result, the hard thing about communicating about condoms is to realize a good
communication on the product without being vulgar. In fact, generally, the products related
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10. to sex are taboo. The objective for the brand is to communicate with tact, delicacy and with
being trickiness.
The Media and Out of Home Media Communication.
The company Durex chose to focus its communication on originality and humor. The brand
uses a lot of implied and not direct ideas in its communication. The communication is also
adapted to teenagers because the advertisements are humoristic but also respect the fact
that young people think sexual relationships are private and don’t want to share about it.
Consequently, Durex realiaze a good communication focused on its principal target which is :
young people between 16 and 24. The brand wants also to show that a condom is not
necessarily a constraint but can also be an essential accessorie for pleasure.
We can also see that Durex is focused on the fact to procure pleasure to its customers
because they use a lot of slogans related to pleasure.
Durex. Made to make you last longer.
Better Shape, Better Sex.
Once you try it you would never do without it.
Good news for your sex life, bad news for beds.
Durex. Crowdstopper.
• On TV :
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11. Advertisements for Durex on TV are each
time well recognized by the audience even if
they are not diffused a lot. The audience
remembers them because they are original
and funny. One of the last advertisements
Durex realized in the USA in 2009 by
Fitzerald and co was the one about two and
then then three rabbits made of condoms. They are having a human comportment and
having sex in different positions. The funny part is the noises resulting of it
(http://www.youtube.com/watch?v=DMqjiny-xa4). A lot of advertisements for Durex are
censured and as the result are not diffused on TV. For the most part, they are available on
the internet.
• Oninternet :
A lot of advertisements for Durex are viral advertisements and for the most part of the time
realize a buzz commercial. The one about rabbits having sex described previously was only
available on internet because it was admitted this video would shocked the audience.
Moreover, on the internet we can find other advertisements from other countries. Also, the
brand Durex realizes a lot of contests on internet where the winners receive condoms but
also new products.
On another hand, the brand Durex doesn’t really exist in magazines, newspapers, etc.
Durex, not only use widely TV, intenet, contests for its advertisement, but also is the partner
of a lot of events and distributes free condoms. For example, the brand distributes condoms
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12. during the Gaypride and also in the partner of a lot of organizations fighting against AIDS. In
Europe, the brand also sends a lot of sets to shools for preventing AIDS and pregnancy.
iv. Specialinterestenvironment
When we talk about condoms, it first comes in our mind that some people or groups of
people use condoms more than others. For example, we know that students or gay people
will have a special interest in the fact to use a condom. Married couple will have less interest
for this type of contraceptive. As the result, our marketing strategy need to be focused on
these groups of people.
c. The Competitor Environs
The three biggest competitors of Durex in America are Trojan, Lifestyles and Kimono. Durex
is focused on the pleasure a condom can bring to the user. Kimono is focused on creating
condoms thinner than its competitors in order to allow the users to feel all the sensations
without thinking they are using a condom. The brand Trojan is focusing its advertisements
and mission statement on the fact they are the most trusted and secure condoms existing on
the market. The brand is really present on the condom market and 60,5% of the sells of
condoms in America are realized by Trojan. Lifestyles company is focused on the health
aspect of using a condom. Moreover the name of the brand shows that the company wants
to adapt itself to every types of lifestyles and wants to be available to everybody. The brand
also recruited Miley Cyrus as an advertising spokesperson
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13. d. The Company Environs
The Durex products are really trusted by customers since the brand represents one of the
leaders in the world. Customers think that the brand procures a safe and secure product.
The company has a lot of experience on that kind of production. The resources of Durex are
human but also the company needs a lot of machines in its production process. The
strengths of the company are the fact that the brand is well recognized all over the world
and it is known for a long time. The weaknesses are the fact that Durex is not the company
leader in the sale of condoms in the United States. Also, because the communication of the
brand is humoristic old people or married couples don’t feel included and recognized. This
kind of communication target principally young people who have a lot of sexual partners and
want pleasure and safety at the same time.
III. The Target Market and Problems and Opportunities
Undoubtedly, young people are the most important sources of condom users in the U.S.
The increasing consumer awareness of risks of sex has led to an increase in the use of the
product. Especially in colleges, there is a huge demand for condoms among young students.
With the influence of social media and the change in gender roles, males are no longer the
only ones who are interested in buying condoms. Young females are more and more
concerned about unexpected pregnancy and sexually transmitted diseases such as HIV, a
deadly disease which attacks and disables the immunity system of a human body. Some
colleges and universities in the United States offer free condoms for their young students.
However, most students in those colleges are not quite satisfied with the quality of free
condoms. Some college students are more fun-seeking while some of the others are more
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14. like pleasure-pursuing, which means we have a huge market to sell different condoms to
different people with different needs.
However, college students is not the only market we are targeting to. Wide as the range
seems to be, our core condom users are those who age from 18 to 32. Nowadays, many
couples choose to put off their plans of having a baby because of the financial crisis. Birth
control becomes more and more prevailing at this
point. Compared with many other contraceptive
methods such as oral contraceptive drugs and
NuvaRing, condom using is relatively harmless and
time-saving. Among young marrieds, there is an
increasing demand for condoms. Given that young
couples focus more on the quality and pleasure of
sex and birth control, we will provide more lubricated condoms made of unbreakable
material. Considering that most young couples are two-income family, the price of this kind
of condoms will be higher than other products.
Social media has contributed a lot to the universal use of condoms, but there is still a lack
of concern among young people in rural areas where social media has limited influence on.
Different lifestyles are also considered as a critical factor to this result. Compared with urban
and suburban condom users, people who are low-literate in rural area usually put less
emphasis on birth control and diseases protection. The low condom usage rate reminds us of
a huge potential market for our products.
Although our potential profits from the target markets are huge, we still have some
barriers to overcome. One of the problems we are facing is promotion. Compared with our
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15. consumers in urban or suburban areas, those who live in rural areas are more difficult to
reach because they are relatively geographically spread out. In order to remind them of the
importance to use condoms and promote our products to them, we must use mass media as
well as sales people more often and intensively, which maybe a little costly.
Another problem we are dealing with is the price condition. It is true that compared with
other competitors, we provide condoms with better quality and multiple advantages.
However, other condom producers have lower prices than we do. For example, Trojan has a
lower market share than ours but they keep using the “low-price” strategy to attractive
young college consumers. On some campuses they even provide free condoms to college
students.
Besides, there may be religious, cultural and social restrictions among certain groups in
the United States that oppose to using birth control methods. Although most Protestant
groups begin to accept the use of modern contraception methods, it is still opposed by some
Catholics in the United States.
IV. Marketing objectives and goals
To make every customer satisfied. Product: suit every male’s needs perfectly. Making
research on people’s attitude toward Condom depends on favor of color, smell and shape.
Divide color, smell and size in different groups. Then, set those groups on the basis of
personal identity. The goal to sell is to maximize the profit in these different sectors. Color,
smell and shape. Design unique characters on these terms. The main purpose is to divide
product in different factors to increase sale. We can set an organization to create subdivision
on these three factors. Each one increase sale 10% in every year, and in order to compete
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16. with other companies, we can lower price by 2% in each condom. In 5 years, our product
should place on the shelf of every corner of world, and it need to bring 60% profit proportion
to investment. 30% share of market is the main target in the following 10 years. Also, make
sure everyone has a positive attitude on our product. Let them have awareness of our
product, and become the first condom brand they want to buy in their mind. We can build
Condom dealers in every big city. These dealers need to be professional sales center, and let
them become representatives of our company. In these dealers, show our latest products,
and teach customer how to use these new products. Our goal is to build 3 dealers in each
year.
Marketing strategies: invite mechanical engineer to create the fictional condom. It can be
flash in night and have functions of increasing hormone level. Also, hire Biophysics experts to
create natural-like material, make the condom feel like human body. Packaging is another
important factor. To dazzle consumer by making it powerful, and this can be done by
showing natural phenomena on its package, like volcanoes, earthquake, or tsunami. Let
people to observe these scenes and make them want to engage in an “intensive” behavior.
Lower price can be used in sale, but since the cost of production rises, price need to
increase. In reality, we can do the opposite way, which can absorb new customer and keep
the loyalty of our old customer, However, it apply only in a short run, and we can increase
price as our customer and their loyalty increase. We can expand to new market like elder
consumer. They are potential buyers of condom, and can offer them special service. For
younger generation, create new way of using condemn. Hi-tech condom need to be
produced to increase sale. In existing market, increasing spending on ads. Because the Hi-
tech products are always charming and fascinating, and the most important is teenagers like
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17. it. In low-consumption area, like religious group, quite the market as soon as possible, and
spend money on the more prosperous area.
V. Marketing tactics.
We decide to stick onto the current product mix
since it is broad enough to satisfy different needs
for different target markets and segments of
population. We want to reduce the costs so we
could offer a lower price. Therefore, we could attract new groups of consumers from our
main competitor, Trojan. At this point, our products are widely-available almost everywhere
such as supermarkets, pharmacies, corner stores, vender machines, online shopping
websites, etc. However, we want our products to be more well-known among colleges and
universities so that we can build up our brand loyalty. If people’s needs and desires are
satisfied, they will keep using our products in the near future.
For promotion, since our brand is usually associated with pleasure and passion. We want to
keep the existing brand culture and way of considering our brand by creating humorous but
less explicit advertisement. As a result, it will not be censured and more people will be
targeted.
VI. Implementation and control
The price of latex in 2011 April is about $2.70 cents/lbs. In the United States, the annual
sale of condoms is $10,000,000. Durex has a market share of about 30% in the United
States market which means the annual production of Durex condoms is $3,000,000. The
cost of raw material for producing those condoms is $41,035.24. According to the data
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18. provided by marketing reports, the cost of machine maintenance is about 200,000
dollars each year. The cost of employees is about $500,000. In addition
to that, the cost of advertising and distribution is about $400,000. The
total costs of production are $1,141,035.24. The average cost of
producing a Durex condom is around $0.38 cents. This is the breakeven
point of our production. We can make a economic profit by setting the price higher than
this point.
VII. Summary
Compared to our major competitors, we have a broader variety of product mix. For example,
we have Durex PleasureMax for our young customers. This product will maximize their
pleasure and satisfaction. Besides, our products are off better quality. Our latex is imported
from South America which has been tested a lot on their durability and quality.
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19. VIII. Appendices
Marketing Mix
Product :
It exists 16 different kinds of male condoms in Durex line product. They all have different
characteristics. Durex Love, Durex Jean and Durex Natural represent the basic ones. Every
Durex condom is made with latex beside Durex Avanti.
The size of the Durex condoms are standards but it also exists some other condoms with
different size like “XS” or “XL” and “XXL”.
Three particulate condoms are made in order to replicate the natural sensations and are
really thin: Durex Contour, Durex Feeling extra and Durex Elite.
Durex Performa is the only condom designed to prolong sexual excitement as long as
possible
Durex Excita, Durex Pleasuremax are condoms with a different texture : ribbed, with beads…
To finish, there are Durex select, colorful condoms with different flavors of fruits.
All the condoms have an « easy-on » system that allows the user to set the condom faster
and easier than any other types of condoms. Moreover, each condoms have lubrification.
The price :
Price are really different and depending on what kind of condom you want. The most basic
onescost around $ 0.30 (Natural, Love and Jean) and the, the prices are around $0.60 or
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20. $0.70 which is kind of expensive for only one condom. The condom Avanti Ultima is the most
expensive of all.
The distribution :
Durex condoms are available almost everywhere: supermarkets, pharmacies, internet… They
are sold one by one or by 3-pack, 4-pack, 6-pack, 10-pack, 12-pack. These past years, the
distribution networks are more and more diversified and as the result, customers can buy
them where they are doing their food purchases. It is becoming easy to buy condoms. We
are not necessarily oblige to go to a pharmacy to buy some.Moreover, Durex condoms can
be purchased like sodas or snacks in some machines available in train stations, airports…
They are also available in clubs and are free in any kind of preventing places like
associations, Gay Pride…
Communication :
Durex uses almost every type of media to communicate about its products. (Refer to the
part above)
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21. SWOT Analysis
Our products are made of high quality materials, and have markets overseas. The brand
name of our product is easy to remember, easy to write, easy to say and easy to spell.
Mostly, people live in every corner of the world knows Durex, which helps our customs to be
more familiar with the latest information about our condom and the advantage over other
brands. High technology is the symbol for our products. Durex Deluxe, Durex RealFeel and
Durex Fetherlite Ultra all use the latest methods and materials to give clients enhanced
sensation and pleasure. The new Durex Deluxe condom is made from a special, crystal clear
material which is so light the wearer feels like they're wearing nothing at all. Durex RealFeel
condoms are made from a revolutionary material which is softer than latex and gives a skin-
on-skin feeling. Durex Fetherlite Ultra is our thinnest latex condom yet, providing a new level
of heightened sensitivity at the tip of the penis. However, our weakness is obviously.
Condoms cannot advertise directly, and also, it has social, cultural and traditional
hindrances. Durex as one of famous condom brands, it is prevented by these barriers. In
addition, people buy condom randomly. They simply choose what can be convenient for
them. In fact, we don’t have big markets in college, or some other dense population areas.
As people become more aware and conscious about use of condom, the total sales of
condom could rise in near future. Therefore, there will be many new users in market; they
haven’t decided which condom they will choose in future. These new consumers give us
opportunity to help them build loyalty, and meanwhile, we can expand our markets in these
new users. People are still shy to ask for condom. Hence, the increasing of vending machines
will be necessary in future. We can create Durex vending machine to improve the sales of
condom in this situation. The biggest threat is from our competitors, especially Trojan -it has
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22. bigger market share than ours in U.S. They have similar product strategy and advance
technology as ours. According to their bigger market share, they are more likely to be
success of introducing new product. The intense competition between Trojan’s product and
ours will be a big issue in our future market.
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23. Work Cited
Durex Official website.N.p., n.d. Web. 29 Apr 2011. <http://www.durex.com/en-
US/Pages/default.aspx>.
Finger, William R. "Family Health International." Condom use increases. N.p., n.d. Web. 29
Apr 2011. <http://www.reproline.jhu.edu/english/6read/6issues/6network/v18-
3/nt1836.html>.
Rotermann, Michelle. " Trends in teen sexual behaviour and condom use." N.p., Sep 2008.
Web. 29 Apr 2011. <http://www.statcan.gc.ca/pub/82-003-x/2008003/article/10664-
eng.pdf>.
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