On this project, i am going to analysis , in condom industry market leader company as known name
“Durex” . Durex is based UK company and mainly engaged in condom industry and also they are
focus on diffrent type of lotions.Durex has over 80 years of experience of manufacturing condoms.
So it’s safe to say that every single one is the product of a process that’s tried and tested.
The company is playing active role in two business segments. The condom segment is engaged in
the design, manufacture and sale of well being products including message lotions, creams ,
parfumes and guide books about sexual life. Expect making condoms, The company is aim to
produce educational sexual life books.
At the beginning of the my work, į have focused on how Durex's improvment. Than I made a
critism about philosphy of corporation and organisational structure. Also very important directly to
know what a company is now and it‘s future plans (mission and vision). After it follows company
objectives and it‘s SWOT analysis; company strategy; four management functions; bussiness
functions and finally product line.
SSL International is a global healthcare company, with leading brands in the condoms (Durex
brand), footcare (Scholls), and powder-free surgical gloves markets.
Sold in over 150 countries worldwide Durex is the market leader in over 40 markets. Durex
accounts for 24% of the world's sales of over 4 billion condoms annually.
For 75 years, Durex has represented quality and reassurance for consumers. The brand has grown to
represent even more - moving from not only providing expert protection for safe sex to also
providing the confidence and freedom to enjoy better sex.
History of Durex
In 1915, L. A. Jackson founded the London Rubber Company Ltd ("LRC"), selling imported
condoms and barber supplies. In 1929, the company registered the brand name, Durex. The name
was chosen to represent DUrability, REliability & EXcellence.
In the 1930's LRC manufactured the first condoms using the latest liquid latex dipping technology
and in 1953 electronic testing was introduced as part of the production process, ensuring the quality
of each individual condom.
With innovations that were to transform the global market in condoms, LRC manufactured the
world's first anatomically shaped condom in 1969 and in 1974 produced the first spermicidally
Health Increases in public concern and awareness of the dangers of AIDs & HIV throughout the
1980's drove condom distribution into bars, corner shops and supermarkets as people became more
aware of the dangers of unprotected sex.
In 1985, the London Rubber Company changed its name to London International Group plc. Durex
the brand is owned by SSL international. SSL International Plc (SSL) was formed in July 1999
through the merger of Seton Scholl Healthcare plc and the London International Group plc.
Throughout the 1980's and 90's Durex brought new and innovative condoms to the market
including; Durex Avanti, made from a unique polyurethane material that is odourless and double
the strength of natural latex; Extra Safe, Elite, Select, Improved Ribbed, Ultra Strong and Comfort.
In 1998, all medical devices, including condoms, had to carry the CE markings when sold in the
EU. Durex was the first condom brand to be CE marked.
Recent additions to the condom range include Durex Performa, Durex Sensation, Durex Comfort
XL, . Also, the range of personal lubricants was relaunched under the banner 'Durex Play' to
emphasise the fun aspect of sex and is positioned as a sexual enhancement product.
Durex works with healthcare professionals, governments and organisations including World Health
Organisation, UNAIDS and United Nations Population Fund to support them in promoting good
sexual health and the importance of consistent condom use to prevent HIV and other STIs
Durex Performa, a condom that contains an anaesthetic to prolong lovemaking has smashed all
sales records, says Durex.
Durex Performa condoms outsell other types the company sells by a margin of five to one.
Each condom contains a small amount of lubricant cream inside the tip, which disperses with body
The cream contains Benzocaine, a mild anaesthetic that de-sensitises the tip of the penis, so sex can
Durex Corporation has focused on people's desire of being wellness and every each day , they are
trying to improve theirskills about it.Now, as well as pushing the boundaries of product testing, we
are also constantly undertaking research projects – looking for new ways to improve our products or
spotting new trends in sexual behaviour that may lead to whole new product areas.
This means that we have collected a goldmine of information that’s regularly consulted by health
ministries, hospitals, scientists, academics and other sexual health bodies.
So…there you have it; the best processes, making the best products, backed by the smartest
Maybe that’s why millions of people across the world trust Durex every day.
Materials of Condom
18.104.22.168 Natural latex
An unrolled latex condom
Latex has outstanding elastic properties: Its tensile strength exceeds 30 MPa, and latex condoms
may be stretched in excess of 800% before breakinget standards for condom production (ISO 4074,
Natural latex rubber condoms), and theEU followed suit with its CEN standard (Directive
93/42/EEC concerning medical devices). Every latex condom is tested for holes with an electrical
current. If the condom passes, it is rolled and packaged. In addition, a portion of each batch of
condoms is subject to water leak and air burst testing.
While the advantages of latex have made it the most popular condom material, it does have some
drawbacks. Latex condoms are damaged when used with oil-based substances aslubricants, such
as petroleum jelly, cooking oil, baby oil,mineral oil, skin lotions, suntan lotions, cold
creams,butter or margarine. Contact with oil makes latex condoms more likely to break or slip off
due to loss of elasticity caused by the oils. Additionally, latex allergy precludes use of latex
condoms and is one of the principal reasons for the use of other materials. In May 2009 the
U.S. Food and Drug Administration granted approval for the production of condoms composed
ofVytex,latex that has been treated to remove 90% of the proteins responsible for allergic
reactions.An allergen-free condom made of synthetic latex (polyisoprene) is also available.]
The most common non-latex condoms are made from polyurethane. Condoms may also be made
from other synthetic materials, such as AT-10 resin, and most recentlypolyisoprene.
Polyurethane condoms tend to be the same width and thickness as latex condoms, with most
polyurethane condoms between 0.04 mm and 0.07 mm thick.
Polyurethane can be considered better than latex in several ways: it conducts heat better than latex,
is not as sensitive to temperature and ultraviolet light (and so has less rigid storage requirements and
a longer shelf life), can be used with oil-based lubricants, is less allergenic than latex, and does not
have an odor. Polyurethane condoms have gained FDA approval for sale in the United States as an
effective method of contraception and HIV prevention, and under laboratory conditions have been
shown to be just as effective as latex for these purposes.
However, polyurethane condoms are less elastic than latex ones, and may be more likely to slip or
break than latex,lose their shape or bunch up more than latex,and are more expensive.
Polyisoprene is a synthetic version of natural rubber latex. While significantly more expensive,it
has the advantages of latex (such as being softer and more elastic than polyurethane
condoms) without the protein which is responsible for latex allergies Like polyurethane condoms,
polyisoprene condoms are said to do a better job of transmitting body heat. Unlike polyurethane
condoms, they cannot be used with an oil-based lubricant.
Condoms made from sheep intestines, labeled "lambskin", are also available. Although they are
generally effective as a contraceptive by blocking sperm, it is presumed that they are likely less
effective than latex in preventing the transmission of agents that cause STDs, because of pores in
the material.This is based on the idea that intestines, by their nature, are porous, permeable
membranes, and while sperm are too large to pass through the pores, viruses—such as HIV, herpes,
and genital warts—are small enough to pass through. However, there are to date no clinical data
confirming or denying this theory. Some believe that lambskin condoms provide a more "natural"
sensation, and they lack the allergens that are inherent to latex, but because of their lesser protection
against infection, other hypoallergenic materials such aspolyurethane are recommended for latexallergic users and/or partners. Lambskin condoms are also significantly more expensive than other
Some latex condoms are lubricated at the manufacturer with a small amount of anonoxynol-9,
a spermicidal chemical. According to Consumer Reports, condoms lubricated with spermicide have
no additional benefit in preventing pregnancy, have a shorter shelf life, and may cause urinary-tract
infections in women.In contrast, application of separately packaged spermicide is believed to
increase the contraceptive efficacy of condoms.
Nonoxynol-9 was once believed to offer additional protection against STDs (including HIV) but
recent studies have shown that, with frequent use, nonoxynol-9 may increase the risk of HIV
transmission. The World Health Organizationsays that spermicidally lubricated condoms should no
longer be promoted. However, it recommends using a nonoxynol-9 lubricated condom over no
condom at all.As of 2005, nine condom manufacturers have stopped manufacturing condoms with
nonoxynol-9 and Planned Parenthood has discontinued the distribution of condoms so lubricated.
Textured condoms include studded and ribbed condoms which can provide extra sensations to both
partners. The studs or ribs can be located on the inside, outside, or both; alternatively, they are
located in specific sections to provide directed stimulation to either the g-spot or frenulum. Many
textured condoms which advertise "mutual pleasure" also are bulb-shaped at the top, to provide
extra stimulation to the male. Some women experience irritation during vaginal intercourse with
In March 2010, the Swiss government announced that it was planning to promote smaller condoms
intended for boys of 12–14 years old following concern about the pregnancy rate among adolescent
girls, and also about the potential spread of AIDS among this age group. This was due to the fact
that standard condoms were too wide and consequently failed to afford protection to adolescent
boys during vaginal and anal intercourse. Family planning groups and the Swiss Aids Federation
had campaigned to have a narrower condom produced for adolescent use after a number of studies,
including a government study researched at the Centre for Development and Personality
Psychology at Basel University, found that standard condoms were unsuitable for boys in this age
range, and that the condoms either failed during use or that the boys rejected them altogether
because they were too wide, and consequently they used no protection at all.
As a result of these studies, a condom aimed at 12 to 14 year old boys is now produced and is
available in Switzerland and in certain other countries. Manufactured by Ceylor, the "Hotshot" is a
lubricated, teat-ended latex condom which is narrower than a standard condom and has a tight band
at the opening to ensure that it remains on the boy's penis during intercourse. A standard condom
has a diameter of 2 inches (5.2 cm) whereas the Hotshot has a diameter of 1.7 inches (4.5 cm). Both
are the same length–7.4 inches (19 cm).
In a German study of 12,970 13- to 19-year-olds, a quarter of the boys surveyed also said a standard
condom was too large. Other manufacturers, such as Durex, also produce smaller than average
condoms such as Durex Love which is aimed at this end of the teenage market.
The anti-rape condom is another variation designed to be worn by women. It is designed to cause
pain to the attacker, hopefully allowing the victim a chance to escape.
A collection condom is used to collect semen for fertility treatments or sperm analysis. These
condoms are designed to maximize sperm life.
Some condom-like devices are intended for entertainment only, such noveltycondoms may not
provide protection against pregnancy and STDs.
The main Heads of Durex:
Public limited company
• FWB: GB00B24CGK77
Slough,Berkshire, United Kingdom
Consumer healthcare products
Yearly meeting of Presidents, as with all other corporations, the governing body of Durex, which
is convened in October of each year. Only those shareholders that own above a certain thresholdof
shares may attend and vote at the General Meeting.
Table of Vice presidents meetings are organised monthly to resolve important management
matters and monitor the execution of duties by directors. External directors attend meetings of the
Board of Directors, in which they give opinions and ask questions as deemed necessary to ensure
legality and validity of the Board's decisions as well as directors' execution of duties.
Additionally, Durex have adopted the Managing Officers System, which enables managing
officers to focus solely on the execution of business operations and speed up decision making.
The voting table, which is composed of directors above the executive vice president level as well
as relevant directors, managing officers and corporate auditors, deliberates on a variety of issues
concerning important management matters such as corporate vision, management policies, mediumterm business strategies and major investments. Condom Industries has a divisional organization
system, with significant authority delegated to each business division.
Planing of business office established for especially crucial matters the to enable the president to
meet with the heads of each business division regularly to monitor and follow the status of their
Voting of Couchil, directors, managing officers and corporate auditors convene to share
management information with regards to matters resolved at the respective Board of Directors
meetings as well as the monthly status of the operations of each business.
Committe of Emergency Profit Improvement. Durex established the Emergency Profit
Improvement Committee in response to the rapid downturn in our business environment. Moreover,
TMC set up 16 different subcommittees, such as the General Expenses Subcommittee, and are
actively working on profit improvement activities throughout the Company. Durex standardize cost
reduction activities in each department, while strengthening planning and execution of measures to
increase sales. Through this structure, Durex strikes a balance between being highly traditional and
bureaucratic while at the same time agile and innovative.
Stakeholders through Durex Business Operations
In order to contribute to the sustainable development of society and the earth, Durex believes that
management emphasizing all stakeholders is of considerable importance, in addition to
environmental initiatives. Durex maintains sincerity in its actions, honors its promises and acts in a
spirit of good faith in seeking to become a global enterprise respected by all peoples around the
world, as well as working conscientiously to provide value to stakeholders through the business it
Durex revised its CSR POLICY: Contribution towards Sustainable Development that takes into
consideration Durex's relations with stakeholders. In addition to applying this policy to all of its
consolidated subsidiaries throughout the world, Durex expects its business partners to also support
This section provides an introduction to Durex's stance on responding to the diverse needs of its
stakeholders, providing background as well as a summary of its past and present activities - both
within Japan and overseas.
Toyota stakeholders are focusing on five main spheres. They say that on the first place are all the
time customers. Then is coming employees, relationships among Durex employees are based on
trust and responsibility. Business partners help to expand and operate easier. Shareholders it is the
corporate value through outstanding long-term relationships. Global Society and Local
Communities is as much important as the rest four parts they implement Durex to the daily social
Vision & Mission
Durex Global Vision Statement
The Durex Network’s core vision is to inspire people to take responsibility for their sexual health,
based on the principle that information leads to knowledge which, in turn, leads to action.
In terms of the Durex Network’s work, this means talking to people to get an in-depth
understanding of their needs before developing initiatives that will enable them to gain the
knowledge they need to make informed choices.
[Durex Global Vision ] Available from the Internet: <http://www.durexnetwork.org/enGB/aboutthedurexnetwork/Pages/Home.aspx >
SSL International, the parent company of Durex, operates in a way that reflects the company’s
values while understanding and responding to stakeholder views and connecting business decisions
to ethical, social and environmental concerns.
The Durex Network was founded in 2005 to formalise the work that Durex has been doing over
many years to raise awareness of the safer sex message globally.
The Durex Network’s core activity is to develop and support key initiatives that harness the
expertise of international organisations, healthcare professionals, educators and politicians to help
prevent unplanned pregnancies and the transmission of sexually transmitted infections (STIs),
The Durex Network has five main components:
1. Global partnerships
3. Social marketing
Global Durex Mission Statement
The Durex Network’s mission is to develop and support key initiatives that harness sexual health
expertise globally to raise awareness of the safer sex message, communicate a ‘prevention not cure’
ethos and encourage consistent condom use. By pooling the expertise of key sex and reproductive
healthcare professionals, the Durex Network also seeks to share knowledge and help replicate best
practice in the field to ensure safer sex stays at the top of everyone’s agenda.
Durex Mission Activities:
“Provide safe and enjoyable sexual pleasure of customers.
Provide new development safety issues for costumers.
Putting the hygen in high level on products to make sexual fun enjoyable and safe in same
Improving delivery service of the product to get all globalization
Through true mutual trust with partners, contribute to development of new technology and
Global Durex Mission & Vision Objectives:
As in every companies, Durex has their own special duties and promises which has given by their
own and objectives have been identified as the aim of the company in keeping with its beliefs and
building on its prior sales and financial success.So, Toyota works on "Guiding Principles at Durex“
which represent Durex. From it follows five principles which explain the main Guilding Principle:
11 Always be faithful to your duties, thereby contributing to the company and to the overall
11 Always be studious and creative, striving to stay ahead of the times.
11 Always be practical and avoid frivolousness.
11 Always strive to build a homelike atmosphere at work that is warm and friendly.
11 Always have respect for spiritual matters, and remember to be grateful at all times The three
main corporate goals are the following:
Overall, these intentions translate into increasing sales and profit, maintaining superior quality, and
Durex SWOT analysis
1.Durex has been ranked as one of the Most Innovative Companies in the World by leading
business magazine Forbes
2. Available in various varieties
3. One of the most popular and good quality male contraceptive brand
4. Brand presence by advertisements and prints
5. Excellent distribution network through chemist stores
• Large efforts put on promotion of sexual health, which may benefit competitors
Product is often purchased in high stress immediate situations (ex. When your hot date is buck
naked, spread eagle & waiting for you to slip her the big greaser and you need to get a condom
NOW, brand becomes of less importance.)
Bold advertising often leads to controversies
. Competitive segment with even the Govt. distributing free contraceptives
• 1.People are becoming more educated in the need to protect themselves against STIs which
represents an increased number of consumers
2. Rapidly advancing technology makes manufacturing more efficient, less costly, more effort can
be placed on distribution
discomfiture in discussing about condoms and sex.
2. Local Brands
3. Other contraceptive methods
4. Limited brand loyalty
5. Government restrictions on advertising
The strategy of Durex is:
to increase sensetivity of the product and decrease same time cost
to improve the company's global selling system
Durex's management philosophy has evolved from the company's origins and has been reflected in
the terms "Lean Manufacturing" and „Just In Time Production“, which it was instrumental in
developing. Durex's managerial values and business methods are known collectively as the Durex
According to external observers, the Durex has four components:
1. Long-term thinking as a basis for management decisions.
2. A process for problem-solving.
3. Adding value to the organization by developing its people.
4. Recognizing that continuously solving root problems drives organizational learning
2. "Just-in-Time" in which each process produces only what is needed by the next process in a
Based on the basic philosophies of jidoka and Just-in-Time, the Toyota Production System can
efficiently and quickly produce vehicles of sound quality, one at a time, that fully satisfy customer
The organizations that have implemented Lean most successfully have adopted TPS as their
operational blueprint. They have studied and understood the system, renamed it to take ownership
of it as their own system, and adopted as pure a form of TPS as possible
Make what the customer needs, when it is needed, and in the right amount
Separate machine work from human work and fully utilize both
Build quality into the process and prevent errors from happening
Reduce lead-times to allow for rapid, flexible scheduling
Produce a high mix of low volume products efficiently
Planing is a decision making process that incorporates a cycle in which outcomes are
analyzed, evaluated, and revised. Durex and their various recalls, the sources
management needs to focus on are clearly their customer's safety and further their
satisfaction.Toyota planing is based on management decisions on a long-term
philosophy, even at the expense of short-term financial goals.
Organizing Durex‘s sais that the right process will produce the right results. Statment
leading seven principles which durex follows:
1. Create a continuous process flow to bring problems to the surface;
2. Use "pull" systems to avoid overproduction;
3. Level out the workload (heijunka). (Work like the tortoise, not the hare);
4. Build a culture of stopping to fix problems, to get quality right the first time;
5. Standardized tasks and processes are the foundation for continuous improvement
and employee empowerment;
6. Use visual control so no problems are hidden;
7. Use only reliable, thoroughly tested technology that serves your people and
Leading Durex needs to explain to athers why Durex is a good vehicle, and why it
would be benefital to operate it. In this case Durex has three ways to improve it:
1. Grow leaders who thoroughly understand the work, live the philosophy, and
teach it to others
2. Develop exceptional people and teams who follow your company's
3. Respect your extended network of partners and suppliers by challenging
them and helping them improve
Controlling leads through three stages:
Go and see for yourself to thoroughly understand the
Make decisions slowly by consensus, thoroughly considering
all options; implement decisions rapidly.
Become a learning organization through relentless reflection
(hansei) and continuous improvement.
human manager of the human resources department is responsible for ensuring that department
employees are well-versed in their areas of expertise. The various disciplines of HR require
expertise in compensation, benefits, safety, payroll, recruiting and training. Ideally, the human
resource manager is a generalist, which means his expertise is cross-discipline. An article on the All
Business website titled “Should Your Office Manager Also Handle HR Duties?” cautions small
businesses to reconsider a decision to combine two roles into one, such as the office manager and
the human resource manager. “A thousand things can go wrong if this individual is not aware of the
potential liabilities inherent in HR management,” the article warns. he manager of the human
resources department is responsible for ensuring that department employees are well-versed in their
areas of expertise. The various disciplines of HR require expertise in compensation, benefits, safety,
payroll, recruiting and training. Ideally, the human resource manager is a generalist, which means
his expertise is cross-discipline. An article on the All Business website titled “Should Your Office
Manager Also Handle HR Duties?” cautions small businesses to reconsider a decision to combine
two roles into one, such as the office manager and the human resource manager. “A thousand things
can go wrong if this individual is not aware of the potential liabilities inherent in HR management,”
the article warns.
As we can see also in map that, Durex selling profitable is all around to world except african
content.Because of some transport issues , its hard to get in such african countries.
Transport agents receive orders bundled according to volume and in most cases they are paid only
for the volume transported. As a result they automatically have an incentive to organise transport
services in a more efficient and environmentally-friendly manner and empty runs are avoided.
Furthermore, all transport agents are bound by contract to use only trucks which comply with the
latest European emissions standard.
Avoiding transport packaging.
Up until now, new vehicles were protected from the elements and damage during transit by
adhesive film, protective covers or wax. To establish whether this was absolutely necessary and
determine the environmental impact, the Durex conducted an environmental performance
The study concluded that closed transport, as in covered freight cars, or open transport with
subsequent cleaning of the vehicles is much better for the environment. Up to 80% of the CO2
emissions generated by application and disposal of surface protection can be prevented this way. In
2007, 72% of all vehicles were shipped without surface protection. This has dramatically reduced
the use of solvents and chemicals. In the future, the Durex will manage with even less packaging
and also further reduce the number of vehicles shipped with surface protection.
Durex is using the plastic which is friendly for environment and it doesnt happend for any kind of
1. Product Line Breadth
The breadth of the product mix consists of all the product lines that the company has to offer to its
customers. If we take P&G, for example, the breadth of the major product lines would consists of
hair products, oral care, soaps and detergents, baby care, and personal care. Figure 1
You may also hear the product line breadth referred to as the product width, product assortment
width, and merchandize breadth.
Product Line Breadth and the Product Mix
The product mix of a company is generally defined as the complete set of all products a business
offers to a market. The product mix (sometimes called "product assortment") is made up of both
product lines and individual products.
A product line is a group of products within the product mix that are closely related, either because
they function in a similar manner, are sold to the same customer groups, are marketed through the
same types of outlets or fall within given price ranges.
An individual product is a particular product within a product line. It is a distinct unit within the
product line that is distinguishable by size, price, appearance, or some other For example, all the
courses a university offers constitute its product mix, courses in the marketing department constitute
a product line, and the principles of marketing course is a product item.
Now, there are four dimensions associated with a company's product mix and the product line
breadth is one of them. The other three are the length, the depth, and the consistency.
Going back in our P&G example we saw five different product lines: hair products, oral care, soaps
and detergents, baby care, and personal care. This means that the product mix breadth is five.
CS will be in competition with the following types of companies:
• Yellow Pages : This is the primary source of local and regional information on small
businesses. All companies listed in the Yellow Pages pay a fee dependent on the size
of the entry. Yellow Pages providers are not at the moment in a position to exploit
the advantages of the Web, as they are based on a different business model, i.e., data are
only irregularly updated and there is no customer advice or service component.
• Print media: Newspapers and magazines may lose a part of their advertising
revenue to the WWW. The first online newspapers with classified ads are
already on the market. However, it seems unlikely that publishers will see
themselves in a new role, and shift from being information suppliers to information
• Telecom and cable companies: The telecom companies are the owners of the
physical network by which the Internet reaches its users; they also offer "valueadded" services, such as “T-Online”. CS's advantage over these competitors
comes from its regional orientation and its particular attractiveness for "corner
• Own networks: Access providers like CompuServe, T-Online, and Metronet offer
their own services for a monthly fee, which represents the major part of their
income. However, we are convinced that these services will not survive, as private
customers are not willing to pay for them.
• Internet presence providers, search engines, and directories: Internet presence
providers are CS's most direct competitors in terms of directories, "shop window"
space, text services and transaction processing. There are hundreds of such
companies. We have talked to over 130 of them, or visited their homepage. Our
conclusion is that most presence providers are still at a very early stage of
development, and are proceeding very much at random. In general, they only have a
handful of customers in Europe, and attracting customers is likely to be their
greatest problem. CS, accordingly, intends to develop core skills here, and use
these strengths in marketing and sales to build up partnerships with presence
providers (see Business system chapter).
Competitor analysis in strategic management and marketing is an 'assessment of the strengths
and weaknesses of current and potential competitors.' This type of analysis gives 'offensive and
defensive strategic context to identify opportunities and threats.' One example of a competitor
analysis is to construct a competitor array. The steps for this are to define your industry,
determine who your competitors are, determine who your customers are and what benefits they
expect, determine what the key success factors are in your industry, rank the key success factors
by giving each on a weighting, rate each competitor on each of the key success factors, and
multiply each cell in the matrix by the factor weighting.
Direct competitors are companies which produce the same products as you. For example if you
make frozen ready meals, all other frozen ready meal producers will be direct competitors.
competitors are companies operating in other markets but targeting the same
consumers. For example, a chilled ready meals producer will be competing with frozen
meal producers for the same meal occasions. Frozen ready meal manufacturers have
seen sales decline for a number of years as consumers have moved towards better
quality chilled meals. If you did not appreciate the threat from chilled foods you would
be losing sales without understanding why, and would not know how to react to protect
2.If the market is relatively easy to enter, i.e. there is not a heavy investment in
equipment or product development expertise, you will also need to continually watch
out for future competitors. For example, premium quality biscuits can be made on a
small scale initially in a kitchen, therefore the barriers to entry are low, and if you are in
the same sector of the biscuit market, you may be under threat from new producers. On
the other hand, crisps are made on an industrial scale and would require major
investment to enter the market.
Trojan™ Brand Condoms are America's #1 condom and have been trusted for over 90 years.
Trojan™ Brand Condoms are made from premium quality latex to help reduce the risk of
unwanted pregnancy and sexually transmitted diseases.
Each condom is electronically tested to help ensure reliability. There are over 30 varieties of
Trojan™ Brand Condoms. More Americans trust the Trojan™ Brand than any other condom.
Mates Condoms :
Richard Branson launched Mates condoms in the UK in 1987 to promote condoms to young
adults at a low price point as awareness of HIV and AIDS grew. A year later Ansell, who were
initially manufacturing the condoms for the Virgin brand, bought Mates.
Over the past 20 years Mates has evolved and developed to keep up with market changes,
consumer demand and new product developments whilst always standing for safety and
reliability. It is this consistency which has kept Mates a key player in the condom market.
Mates can now be purchased in a variety of stores on the High Street, within major
supermarkets, chemists and pharmacies.
Ansell Ltd, formerly Pacific Dunlop Ltd, first commenced business in Australia in1905. Eric
Ansell was employed at Dunlop Pneumatic Tyre Company and was asked to dismantle the
plants condom making machine. Ansell saw an opportunity and set the machine up in a small
Today, Ansell Ltd is a world leader in the design, supply, and marketing of barrier protection
products and services. Ansell are an international manufacturer of condoms and own a variety
of brands around the world – Mates in the UK, Lifestyles in the USA & Australia, and Manix in
France to name but a few.
Our operations are organized into three business segments - Professional Healthcare (medical
examination and surgical gloves), Occupational Healthcare (industrial and consumer protective
gloves), and Consumer Healthcare (condoms).
We manufacture our products at eighteen factories in seven countries selling in more than 100
countries.The majority of our factories are located in Southeast Asia in order to be close to the
rubber tree plantations - our source of natural latex.
Condomi is a German condom manufacturer based in Cologne, which began production in
1988. For many years, Condomi used a production technique, which did not involve the use of
the milk protein casein. This meant Condomi was one of the few condom lines that were caseinfree and suitable for Vegetarians and Vegans.
Due to a change of ownership at the company, this production technique was changed[citation
needed] and the company lost the ability to display theVegan Society trademark on their
products. Condomi is currently owned by Unimill Condoms, which is a
subsidiary of Ansell.
Condomi's products come in a variety of styles and flavours
including strawberry, chocolate, spearmint, and coconut.
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FINANCIAL PLANNING AND FINANCING
We expect that Durex will have 500,000 customers and sales of condom 67.8 million
within 3 years; we estimate a net profit after tax of DM 7.9 million.
Our sales forecast is based on the expected distribution of customers between the
various options. According to our estimates, 70% of customers will choose the
basic option, and 25% the deluxe option (e.g., restaurants); only 5% of customers
are expected to be interested in the catalog service – the most expensive and
comprehensive option. We expect only customers with the deluxe option and
catalog service to require regular updating of their homepages
Projected sales growth
The sales growth forecast is based on the assumption that by the end of year 3 we
will have reached 20% of our target customers (total 500,000 customers). On
account of the fixed number of businesses, we expect that growth will be less
rapid in the following years. The growth scenario is based on an average town
with 2,000 businesses, 50,000 inhabitants, and 50000 paying customers.
Summary of financials
The expected financial results are shown in the form of the expected cash
requirement , cash flow calculation ), income statement for
the first 3 years and balance sheet The key
assumptions on which the financial plan is based are also shown
Cash flow and sensitivity analysis
Exhibit 19 shows CS's total cash requirement for the first 3 years on the basis
of three different scenarios. The three key levers of the financial calculations are
the projected growth rate, total income from customers, and the percentage
passed on to our partners (Internet presence providers). As exhibit 20 shows,
these indicators demonstrate a high level of sensitivity.
• The assumptions for the base-case scenario correspond to the figures given; on
this basis there is a financing requirement of DM 4.5 million. Payback is
expected in mid-2001. First-round investors can expect an IRR of 68%.
• The best-case scenario assumes an annual growth rate of 10%, 10% more
income from our customers, and 10% less income to be shared with our
partners. With this scenario, the financing requirement is DM 3.2 million.
Payback will be achieved about half a year earlier. The IRR for first-round
investors is 96%.
• The worst-case scenario assumes 10% less growth, 10% less income from
customers, and 10% more income to be shared with our partners. The
financing requirement is DM 6.5 million, with payback expected by 2004. With
this scenario, IRR for first-round investors is 44%.
Income, profit, and balance sheet (Exhibits 21 and 23)
Sales in year 5 are projected to reach DM 67.8 million. Net profit after tax will be
positive from the start of the third year of operations, and will rise to 12% or DM
7.9 million in year 5.
Gross margins will be around 55% for the first five years; this figure reflects the
payments to Internet presence providers for recording and maintaining our
customers' homepages. As a rule, the presence providers will receive the main
part of the one-time installation fee, while Durex will receive the main part of the
continuing monthly fees. We also estimate a monthly expenditure of DM 10,000
per town to cover additional local information on current events, weather
forecasts, restaurants, cinemas, etc. Operating costs will be incurred primarily in
marketing, sales, and advertising campaigns. Initially, software development and
the start-up of operations will also incur significant costs.
The balance sheet reflects Durex's profit mechanism, based on fee income and
variable costs. Capital investments are minimal, as no manufacturing plant is
required and offices can be rented. condom and raw materials for
application development represents a significant investment. The base-case
scenario does not envisage any need for debt capital.
Financing (exhibits 23 and 24)
The initial financing of DM 200,000 will be provided by the founders. This sum
will be required for the initial phase, in which application software will be
developed and tested and investors sought. We expect to obtain DM 1.5 million
by March 1999, in exchange for 43% of the shares in the company. These funds
will enable us to develop the software applications to ready-to-use status,
employ sales staff and begin marketing activities. This first financing round will
last about one year.
We are looking primarily for a venture capital company with profound
knowledge of the sector, able to assist us in attracting experienced software
developers and sales staff. A significant part of the start-up capital is reserved for
an incentive system for the members of the management team.
The second financing round is envisaged for the start of 2000; we then want to
raise an additional DM 2 million, which will be used for further growth in
exchange for 24% of the share capital.
To finance more growth, another DM 1 million will be required in a third
financing round in 2001. Our scenario envisages the sale of 5% of the equity.
After this round, DUREXwill be able to finance itself until it goes public, as intended,
at the end of the fifth year of operation.
On the basis of the assumptions described and the resulting growth, an initial
public offering at the end of the year five is conceivable. If we conservatively
estimate a price-earning ratio of 6, the company’s market capitalization in year
five would be DM 47.6 milion. With the proposed financing structure, the
investitors in the first financing round (VC1) would earn an IRR of 68%, round
Durex is such a great example of evulation how suppose to to be leader in market. They are one
of the bigest companies whole world about condom industry and they are getting bigger in
every each year.
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