Etude Marketing complète Durex (Anglais)


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Etude Marketing complète Durex (Anglais)

  1. 1. YitaoMicky ChenJessie GomezJerryAudrey Portes 1 Marketing project : Durex
  2. 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 worlds 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 aregoing to market a product is : « Who is actually going to buy my product ?” We have tofigure out what kind of customer they are in terms of behavior and also we have toapproximately evaluate the importance of the market. As the result, if we focus on themarket 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 17by The Kaiser Family Foundation and Seventeen magazine found that:“More than one-third 2 Marketing project : Durex
  3. 3. of teens surveyed (38 percent) said they had had sexual intercourse. Nine out of 10 teenswhove had sex said they use birth control all, some, or part of the time. Virtually all teenswho have had intercourse (98 percent) have used condoms. But half also admitted theydhad sex without a condom. Also, a Massachusetts statewide survey in 2005 among 3,500high school students showed condom use is increasing among teens in that state. “About 45percent of teens surveyed said theyd had sex at least once.” First of all, the results of thisexperience show that people have sex younger than in the past and apparently they aremore educated about sexuality. Also, that demonstrates the fact that a lot of people stilldon’t use a condom each time they are having sex or a lot are not satisfied by the use of acondom 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 andmore persons have sex early in their life. The majority of persons lose their virginity in highschool or the beginning of college. Also, a lot of teenagers have intercourses before the ageof 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 acondom during a sexual relationship. On another hand, these last years, another importantfact is that more and more people have a lot of different partners in their life. The number ofsexual partners is an important indicator of sexual risk behavior. The more you havepartners, the more you are exposed to the fact of contracting a STI. Also, it has beendemonstrated that men have more partners than a woman has.According to the “The Journal of Sexual Medicine” containing a report on the NationalSurvey of Sexual Health and Behavior (NSSHB) thanks to a study group of nearly 6,000participants between the ages of 14 and 94, we can understand what the trend about theuse of condoms is. The fact is that condom use is now becominga trend for young people. 3 Marketing project : Durex
  4. 4. Indeed, nearly 80% of boys and 60% of girls under the age of 18 said that they had usedcondoms during sex. That’s nearly twice the rate at which young adults used condoms, andnearly four times that of adults over 40.These results have a huge implication for globalpublic health policy and current efforts to promote condom use, and show that youngpeople are not reckless and careless when it comes to sex. They are educated by differentways like school or particular programs.Moreover, condoms are usually used by people who are not married but these past monthsin some regions where there is a lot of advertisements against AIDS and in favor of thecondom use, even married couples use them as a new trend.Another observation is that in developing countries only 3% of questioned people say thatthey 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 forsome young people a shame to go to buy condoms and even if they want to buy some, theprice 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 targetmarket?After finding out previously what are the trends and thoughts about condoms we can nowsay that the target market will be young people between 16 and 24 years old. In fact, if wesuccess in making young people using condoms for their first sexual relationship, they will bemore aware after and will still use condoms in their everyday life. Also, since more and morepeople are infected by AIDS and STDs, we could focus on selling condoms to these people. In 4 Marketing project : Durex
  5. 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 sideof the condom and want to promote a strategy of pleasure and sexual fulfillment. As theresult, the brand creates new products with colors, textures, vibrations… Consequently,besides focusing only on young people, Durex focus also on older customers (between 30and 55 years old) who want to spice their sexual life.Customer profile. Obviously, because we are studying in this case the male condom, thecustomer profile is composed of men. But also, with the development of our society, womentake more and more responsibilities and as the result they buy male condoms in order tocover unexpected situations and in order to do not be in a risky situation. ii. Social and cultural factorsAll over the world, the fact to use condoms is also dictated by our thinking, our socio-culturalenvironment and our religion. In fact, for example, some Protestant or catholic people don’twant to use any condom because it is against what God says. Also, sometimes, if the family isnot 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 ourbehaviors. Nowadays, preventing people about sex start with teenagers. In fact, educatepeople about this topic is very important but also friends and relatives can influence ouropinion. Moreover, the sensation a condom creates is not natural, so people were at thebeginning not agree to use it. In another hand, it still exists a lot of reasons why people don’tlike 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. 6. afraid that the condom breaks. Also, women are still afraid to ask men to use a condom ifthey don’t use it naturally.As the result, a lot of factors culturals and socials are important to take into account if wewant to success in selling in this marketing process. iii. Economic and business conditionsWith the crash of the economy these past years, the price of the latex increased a lot. Wecan see on the graphic that since 2006 the price of it rises from117,8 cents per pound to262,9 cents per pound. The price is twice higher. That explains a lot the price of the condomswhich is becoming really expensive. Also, the business conditions are not really favorable tohave a good return on investissment (ROI) since the raw materials are expensive. In fact, thecompany cannot increase the final price of the product too much because the consumer isnot going to buy it, but it also needs to keep a good profit from the production of itscondoms. The big trend is also that since the price of a condom has increased, young peopleor students can’t afford it or prefer to spend money in something else. 6 Marketing project : Durex
  7. 7. iv. PoliticsThis part cannot be traited because politics don’t influence the way the population usecondoms in the USA. But an example of politic that influences the behavior of people is inChina where couples cannot have more than one child. As the result they are obliged to usea contraceptive and use condoms. v. Laws and regulationsA condom is subject of a lot of reglementations and standards in order to insure security andhygiene to the customer. First, all the condoms are tested with an Electronic Testingmachine in order to provide a good quality product. This machine checks for holes andimperfections. Then, the next test is the “water leak testing” realized on a sample of2,000,000 condoms per month. That means that the condoms is filled with mater andsuspended for a minute to check for leaks. To finish, the last test realized on the condoms isthe “air inflation test”. It is to check for burst strength and elasticity and it is realized on asample of about 500,000 condoms per month. If the condoms fail on any of the tests, the 7 Marketing project : Durex
  8. 8. entire batch (432,000 condoms) is discarded. The standards size for a condom are : 18 litersbut Durex minimum latex standard is 22 liters and typically, Durex condoms will expand to40 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 ofexperience of manufacturing condoms. The company also doesn’t want just to meetworldwide safety quality standards, but wants to exceed them and be the best on themarket. Durex company is also looking for new ways to improve their products or spottingnew trends in sexual behavior that may lead to whole new product areas. They want to be areally innovative company. That is why millions of people across the world trust Durex everyday. b. The Neutral Environs i. Financial environmentAs economic crisis has happened in recent years, investors don’t have strong interests infinancial product. However, the daily product market is still beneficial for them. Condom asone kind of necessity in people’s lives, makes the demand side keep constant or even hasslightly growth. There are still lots of funds out there in the market. Large companies areinterested in developing their markets. They have cash in their pocket, and desire to investnew things to cover their lost in this economic crisis. Condom can be one type of investmentto increase profit, and still has many rooms to catch in the future. 8 Marketing project : Durex
  9. 9. ii. Government environmentThe 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 touse them by creating advertisements about AIDS. As the result, condoms brands benefit ofthese advertisements. iii. Media environmentThe media environment include everythingthat has a relationship with communicationabout 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 andsoftness. Exactly what the customer expects from a condom. Then, the blue color of the logosymbolizes dreams and peace. The rectangular form and the color of the Durex logo areideally chosen to be easily remembered by the customer. Moreover the name of the brand iseasy 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 theresult, the hard thing about communicating about condoms is to realize a goodcommunication on the product without being vulgar. In fact, generally, the products related 9 Marketing project : Durex
  10. 10. to sex are taboo. The objective for the brand is to communicate with tact, delicacy and withbeing trickiness. The Media and Out of Home Media Communication.The company Durex chose to focus its communication on originality and humor. The branduses a lot of implied and not direct ideas in its communication. The communication is alsoadapted to teenagers because the advertisements are humoristic but also respect the factthat 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 notnecessarily 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 customersbecause 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. 11. Advertisements for Durex on TV are eachtime well recognized by the audience even ifthey are not diffused a lot. The audienceremembers them because they are originaland funny. One of the last advertisementsDurex realized in the USA in 2009 byFitzerald and co was the one about two andthen then three rabbits made of condoms. They are having a human comportment andhaving sex in different positions. The funny part is the noises resulting of it( A lot of advertisements for Durex arecensured and as the result are not diffused on TV. For the most part, they are available onthe internet.• Oninternet :A lot of advertisements for Durex are viral advertisements and for the most part of the timerealize a buzz commercial. The one about rabbits having sex described previously was onlyavailable 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, thebrand Durex realizes a lot of contests on internet where the winners receive condoms butalso 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 partnerof a lot of events and distributes free condoms. For example, the brand distributes condoms 11 Marketing project : Durex
  12. 12. during the Gaypride and also in the partner of a lot of organizations fighting against AIDS. InEurope, the brand also sends a lot of sets to shools for preventing AIDS and pregnancy. iv. SpecialinterestenvironmentWhen we talk about condoms, it first comes in our mind that some people or groups ofpeople use condoms more than others. For example, we know that students or gay peoplewill have a special interest in the fact to use a condom. Married couple will have less interestfor this type of contraceptive. As the result, our marketing strategy need to be focused onthese groups of people. c. The Competitor EnvironsThe three biggest competitors of Durex in America are Trojan, Lifestyles and Kimono. Durexis focused on the pleasure a condom can bring to the user. Kimono is focused on creatingcondoms thinner than its competitors in order to allow the users to feel all the sensationswithout thinking they are using a condom. The brand Trojan is focusing its advertisementsand mission statement on the fact they are the most trusted and secure condoms existing onthe market. The brand is really present on the condom market and 60,5% of the sells ofcondoms in America are realized by Trojan. Lifestyles company is focused on the healthaspect of using a condom. Moreover the name of the brand shows that the company wantsto adapt itself to every types of lifestyles and wants to be available to everybody. The brandalso recruited Miley Cyrus as an advertising spokesperson 12 Marketing project : Durex
  13. 13. d. The Company EnvironsThe Durex products are really trusted by customers since the brand represents one of theleaders 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 arehuman but also the company needs a lot of machines in its production process. Thestrengths of the company are the fact that the brand is well recognized all over the worldand it is known for a long time. The weaknesses are the fact that Durex is not the companyleader in the sale of condoms in the United States. Also, because the communication of thebrand is humoristic old people or married couples don’t feel included and recognized. Thiskind of communication target principally young people who have a lot of sexual partners andwant 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 theproduct. 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 theonly ones who are interested in buying condoms. Young females are more and moreconcerned about unexpected pregnancy and sexually transmitted diseases such as HIV, adeadly disease which attacks and disables the immunity system of a human body. Somecolleges 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 freecondoms. Some college students are more fun-seeking while some of the others are more 13 Marketing project : Durex
  14. 14. like pleasure-pursuing, which means we have a huge market to sell different condoms todifferent people with different needs. However, college students is not the only market we are targeting to. Wide as the rangeseems to be, our core condom users are those who age from 18 to 32. Nowadays, manycouples choose to put off their plans of having a baby because of the financial crisis. Birthcontrol becomes more and more prevailing at thispoint. Compared with many other contraceptivemethods such as oral contraceptive drugs andNuvaRing, condom using is relatively harmless andtime-saving. Among young marrieds, there is anincreasing demand for condoms. Given that youngcouples focus more on the quality and pleasure ofsex and birth control, we will provide more lubricated condoms made of unbreakablematerial. Considering that most young couples are two-income family, the price of this kindof condoms will be higher than other products. Social media has contributed a lot to the universal use of condoms, but there is still a lackof 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 urbanand suburban condom users, people who are low-literate in rural area usually put lessemphasis on birth control and diseases protection. The low condom usage rate reminds us ofa huge potential market for our products. Although our potential profits from the target markets are huge, we still have somebarriers to overcome. One of the problems we are facing is promotion. Compared with our 14 Marketing project : Durex
  15. 15. consumers in urban or suburban areas, those who live in rural areas are more difficult toreach because they are relatively geographically spread out. In order to remind them of theimportance to use condoms and promote our products to them, we must use mass media aswell 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 withother competitors, we provide condoms with better quality and multiple advantages.However, other condom producers have lower prices than we do. For example, Trojan has alower market share than ours but they keep using the “low-price” strategy to attractiveyoung college consumers. On some campuses they even provide free condoms to collegestudents. Besides, there may be religious, cultural and social restrictions among certain groups inthe United States that oppose to using birth control methods. Although most Protestantgroups begin to accept the use of modern contraception methods, it is still opposed by someCatholics in the United States. IV. Marketing objectives and goals To make every customer satisfied. Product: suit every male’s needs perfectly. Makingresearch 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 ofpersonal 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 divideproduct in different factors to increase sale. We can set an organization to create subdivisionon these three factors. Each one increase sale 10% in every year, and in order to compete 15 Marketing project : Durex
  16. 16. with other companies, we can lower price by 2% in each condom. In 5 years, our productshould place on the shelf of every corner of world, and it need to bring 60% profit proportionto investment. 30% share of market is the main target in the following 10 years. Also, makesure everyone has a positive attitude on our product. Let them have awareness of ourproduct, and become the first condom brand they want to buy in their mind. We can buildCondom dealers in every big city. These dealers need to be professional sales center, and letthem 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 eachyear. Marketing strategies: invite mechanical engineer to create the fictional condom. It can beflash in night and have functions of increasing hormone level. Also, hire Biophysics experts tocreate natural-like material, make the condom feel like human body. Packaging is anotherimportant factor. To dazzle consumer by making it powerful, and this can be done byshowing natural phenomena on its package, like volcanoes, earthquake, or tsunami. Letpeople 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 toincrease. In reality, we can do the opposite way, which can absorb new customer and keepthe loyalty of our old customer, However, it apply only in a short run, and we can increaseprice as our customer and their loyalty increase. We can expand to new market like elderconsumer. They are potential buyers of condom, and can offer them special service. Foryounger generation, create new way of using condemn. Hi-tech condom need to beproduced 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. 17. it. In low-consumption area, like religious group, quite the market as soon as possible, andspend money on the more prosperous area. V. Marketing tactics.We decide to stick onto the current product mixsince it is broad enough to satisfy different needsfor different target markets and segments ofpopulation. We want to reduce the costs so wecould offer a lower price. Therefore, we could attract new groups of consumers from ourmain competitor, Trojan. At this point, our products are widely-available almost everywheresuch as supermarkets, pharmacies, corner stores, vender machines, online shoppingwebsites, etc. However, we want our products to be more well-known among colleges anduniversities so that we can build up our brand loyalty. If people’s needs and desires aresatisfied, they will keep using our products in the near future.For promotion, since our brand is usually associated with pleasure and passion. We want tokeep the existing brand culture and way of considering our brand by creating humorous butless explicit advertisement. As a result, it will not be censured and more people will betargeted. 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. 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. SummaryCompared 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 theirpleasure and satisfaction. Besides, our products are off better quality. Our latex is importedfrom South America which has been tested a lot on their durability and quality. 18 Marketing project : Durex
  19. 19. VIII. AppendicesMarketing MixProduct :It exists 16 different kinds of male condoms in Durex line product. They all have differentcharacteristics. Durex Love, Durex Jean and Durex Natural represent the basic ones. EveryDurex condom is made with latex beside Durex Avanti.The size of the Durex condoms are standards but it also exists some other condoms withdifferent size like “XS” or “XL” and “XXL”.Three particulate condoms are made in order to replicate the natural sensations and arereally thin: Durex Contour, Durex Feeling extra and Durex Elite.Durex Performa is the only condom designed to prolong sexual excitement as long aspossibleDurex 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 fasterand 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 basiconescost around $ 0.30 (Natural, Love and Jean) and the, the prices are around $0.60 or 19 Marketing project : Durex
  20. 20. $0.70 which is kind of expensive for only one condom. The condom Avanti Ultima is the mostexpensive of all.The distribution :Durex condoms are available almost everywhere: supermarkets, pharmacies, internet… Theyare sold one by one or by 3-pack, 4-pack, 6-pack, 10-pack, 12-pack. These past years, thedistribution networks are more and more diversified and as the result, customers can buythem where they are doing their food purchases. It is becoming easy to buy condoms. Weare not necessarily oblige to go to a pharmacy to buy some.Moreover, Durex condoms canbe 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 likeassociations, Gay Pride…Communication :Durex uses almost every type of media to communicate about its products. (Refer to thepart above) 20 Marketing project : Durex
  21. 21. SWOT Analysis Our products are made of high quality materials, and have markets overseas. The brandname 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 bemore familiar with the latest information about our condom and the advantage over otherbrands. High technology is the symbol for our products. Durex Deluxe, Durex RealFeel andDurex Fetherlite Ultra all use the latest methods and materials to give clients enhancedsensation and pleasure. The new Durex Deluxe condom is made from a special, crystal clearmaterial which is so light the wearer feels like theyre wearing nothing at all. Durex RealFeelcondoms 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 levelof heightened sensitivity at the tip of the penis. However, our weakness is obviously.Condoms cannot advertise directly, and also, it has social, cultural and traditionalhindrances. Durex as one of famous condom brands, it is prevented by these barriers. Inaddition, people buy condom randomly. They simply choose what can be convenient forthem. 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 ofcondom could rise in near future. Therefore, there will be many new users in market; theyhaven’t decided which condom they will choose in future. These new consumers give usopportunity to help them build loyalty, and meanwhile, we can expand our markets in thesenew users. People are still shy to ask for condom. Hence, the increasing of vending machineswill be necessary in future. We can create Durex vending machine to improve the sales ofcondom in this situation. The biggest threat is from our competitors, especially Trojan -it has 21 Marketing project : Durex
  22. 22. bigger market share than ours in U.S. They have similar product strategy and advancetechnology as ours. According to their bigger market share, they are more likely to besuccess of introducing new product. The intense competition between Trojan’s product andours will be a big issue in our future market. 22 Marketing project : Durex
  23. 23. Work CitedDurex Official website.N.p., n.d. Web. 29 Apr 2011. < US/Pages/default.aspx>.Finger, William R. "Family Health International." Condom use increases. N.p., n.d. Web. 29 Apr 2011. < 3/nt1836.html>.Rotermann, Michelle. " Trends in teen sexual behaviour and condom use." N.p., Sep 2008. Web. 29 Apr 2011. < eng.pdf>. 23 Marketing project : Durex