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YitaoMicky Chen
Jessie Gomez
Jerry
Audrey Portes




   1    Marketing project : Durex
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


        2   Marketing project : Durex
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.
      3   Marketing project : Durex
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


      4   Marketing project : Durex
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


      5   Marketing project : Durex
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.




      6   Marketing project : Durex
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

      7   Marketing project : Durex
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.




       8   Marketing project : Durex
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
      9   Marketing project : Durex
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 :

    10     Marketing project : Durex
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


    11    Marketing project : Durex
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




    12    Marketing project : Durex
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



    13    Marketing project : Durex
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

    14    Marketing project : Durex
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


    15      Marketing project : Durex
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



    16    Marketing project : Durex
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

    17      Marketing project : Durex
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.




    18    Marketing project : Durex
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



    19     Marketing project : Durex
$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)




    20    Marketing project : Durex
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


    21    Marketing project : Durex
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.




    22    Marketing project : Durex
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>.




    23   Marketing project : Durex

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Etude Marketing complète Durex (Anglais)

  • 1. YitaoMicky Chen Jessie Gomez Jerry Audrey Portes 1 Marketing project : Durex
  • 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 2 Marketing project : Durex
  • 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. 3 Marketing project : Durex
  • 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 4 Marketing project : Durex
  • 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 5 Marketing project : Durex
  • 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. 6 Marketing project : Durex
  • 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 7 Marketing project : Durex
  • 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. 8 Marketing project : Durex
  • 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 9 Marketing project : Durex
  • 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 : 10 Marketing project : Durex
  • 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 11 Marketing project : Durex
  • 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 12 Marketing project : Durex
  • 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 13 Marketing project : Durex
  • 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 14 Marketing project : Durex
  • 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 15 Marketing project : Durex
  • 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 16 Marketing project : Durex
  • 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 17 Marketing project : Durex
  • 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. 18 Marketing project : Durex
  • 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 19 Marketing project : Durex
  • 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) 20 Marketing project : Durex
  • 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 21 Marketing project : Durex
  • 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. 22 Marketing project : Durex
  • 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>. 23 Marketing project : Durex