5. Introducing Condom
ďUsed during sexual intercourse to cover a man's
erect penis.
ďBlocks semen from entering the partnerâs body.
ďPrevent pregnancy and transmission of sexually
transmitted diseases (STDsâsuch as
gonorrhea, syphilis, and HIV).
ďMade from latex, polyurethane or lamb intestine
6. Cont.
ďA female condom are also there. made of
polyurethane.
ďMale condoms are inexpensive, easy to use, less
side-effects.
ďUsers experience only 2% condom failure.
ďSecondary usage to waterproof microphones & also
to protecting rifle barrels from clogging.
Source {http://www.fwhc.org/birth-control/condom.htm/ assessed 29/03/09}
{http://www.plannedparenthood.org/health-topics/birth-control/condom-10187.htm / assessed 29/3/09
7. History of Industry
ď Condom was named from CONDUSâ which means a vessel or a container.
ď Oldest paintings of condom found in Egypt portrayed around 950 B.C.
ď First public demonstration of the condoms is recorded around 15th
century in Italy ,the person who used it first was Gabrielle. Purpose was to
prevent Syphilis (STD).
ď By the 1700s, condoms made from animal intestines & considered as âan
armour against pleasure, and a cobweb against infection.â
ď Dr. Condom or Conton, who reportedly kept randy King Charles II of
England supplied with sheaths made from animal tissue to reduce the risk
of infection during his sexual encounters
8. Cont.
ď Japanese made it from tortoise shell.
ď Land of the Pharaoh used crocodile dung, intestine of killed enemies in
Rome.
ď In 18th century Ist rubber condom was invented.
ď After 1930âs, latex was used to make condoms, superior then rubber.
ď Now condoms manufactured with varying size, shape, length, strength,
color, flavor etc.
Source( Published 11/04/2004, assessed 1/04/09
http://www.buzzle.com/editorials/11-3-2004-61134.asp)
9. Rapid product innovations
ď Condom revolution begins in early 19OO. players like Beyond seven,
crown, kimono made micro thin condoms which felt like skinless
skin and finally feeling pleasure during sex.
10. Ansellâs Lifestyle xtra pleasure Leonardo da Vinci of condom Inspiral condom
condom in 1990âs in 1990.
Avanti first polyurethane Trojan came with Supra Dolphin condom in
condom in 1995 2008
14. Capital requirements & Economies of scale
ď Condom industry is subject to significant economies of scale.
ď While the capital investments are too high, the variable costs
are low.
ď Manufacturing plants are mostly automatic
ď Contraceptive production is a high-volume thereby low-cost
business.
ď Variable costs constitute about 15% of the total costs of
producing
http://www.reportlinker.com/p090642/World-Condoms-Market.html
15. Market size
ď For over the counter sales, market share in 2005 is estimated to be:
ď Church & Dwight (Trojan) 70.0%
ď SSL (Durex) 9.2%
ď Ansell (Lifestyles) 11.6%
ď Others 9.2%
16. Market growth rate & Industry profitability
ď Dr. P. M. Mathew, Vellore says, âeconomic stress would
normally cause depression and lessen the urge for sexâ .
ď But condom sales say a different story: âIn the first 10 months
of this fiscal, from April 2008 to January 2009, we have sold
65 million condoms in the commercial segment, as against
the corresponding period in 2007-08 when the sales were
54.2 millionâ, HUL Life care marketing director Suresh Kumar
told ET.
http://www.dailymail.co.uk/news/article-412742/Nuclear-test-sparks-soaring-condom-sales-South-Korea.html
http://economictimes.indiatimes.com/ET-Cetera/Condom-sales-rise-as-slowdown-bites/articleshow/4177344.cms
17. ContâŚ
ď Nuclear test sparks soaring condom sales in South Korea
Last updated at 17:01 26 October 2006
ď Condom sales soar in India November 18, 2008.
Condom sales in India increased by 85 million in months.
Indian hope to reach a target of distributing 3 billion condoms
annually by 2010 - an increase from the current target of 1.7
billion.
http://www.iolhivaids.co.za/index.php?fSectionId=1591&fArticleId=4718424
18. Entry barriers
ď The cost of obtaining the quality certification (like BSE
Kitemark, UK)(different in different countries)
ď The cost of establishing a brand image.
ď Getting listed with wholesalers and retailers.
20. Marketing Mix
Products
Condoms: types
Male or female condom
Color, Flavor, Size
Thickness , Safety
Material used (latex& polyurethane, Polyisoprene)
21. Place
Products can purchase through:
⢠Home Delivery- with Fast Delivery
⢠Online stores
⢠Hospitals
⢠Super markets & hyper malls
⢠Sex shops
⢠Medical stores
⢠Hotels & Resorts
22. Promotion
Advertisement:
-Above the Line:
⢠TV, Cinema
⢠Banner & Posters.
⢠Billboard.
⢠Physicians prescription (Dr)
-Below the Line:
⢠Supermarket, medical stores
⢠Sales literatures.
⢠Internet web sites like Search Engines eg. GoogleŽ
23. Cont..
Public Relations:
⢠Words of mouth [Viral Marketing]
⢠Joining Social Community and Events
Sales Promotion:
⢠Discounts â buy 3 get 1 free
⢠Premium â free sample on special occasions like valentine
day
Post-Sale Service:
⢠Online Live Chat
⢠Online guidelines regarding sex and condom usage.
24. Cont..
Pricing
General pricing
⢠Volume Discount- (3pc for $5 & pack of 20 for $25or30)
⢠Combo Set- condoms + vibrator+ lady condoms
⢠Seasonal Discount: e.g. On Valentineâs Day or New Year eve or any
big event
Market Penetration Strategy:
Low price to capture customer base, expand community size
quickly.
Acquisition & Retention:
Each new customer gets Free Product Sample
Shop and collect points and get discount on next shopping
25. Market segmentation
Demographic: Psychographic:
Gender: Male & Female Culture
Age: 15-50 years â Needs & Wants
Teenage (Students), Adults (Workers)
Education: Minimum high school &
can understand English Language
Geographic: Behavioral:
Awareness
Developed countries Health concerns
Developing countries Partner (girl friend, prostitute, wife,
Under developed countries servant, etc)
Others
26. Competitive Environment
External Environment
Political: Economic
Laws governing condom manufacturing Economic growth affects the sexual desire
Trade regulations then intercourse times.
Unemployment rate increases sex rate
Exchange rates âimport &exports
Social Technologically
Social, cultural & traditional obligations. Substitutes like contraceptive pills and
Lifestyle of people (Western Vs Eastern) artificial toys
Education level Changes in
Population growth rate Technology transfer
Age distribution Distribution channels
Carrier attitude of the people
Leisure time for people
27. Strategic Group Analysis
ď The condom industry has two principal aims:
ď 1) Prevention of STD, such as AIDS etc.
2) Contraception means.
ď So, in opposition to direct competitors, it is essential to evoke the role of the indirect
competitors, which are those with a product of substitution. According to the Durex Sex Survey
(2001),
Market Dynamics
4.72 Condom users
11.12
Non users
41
Pills Users
43.07
Natural methods
ď Concerning the prevention means of the STD market, the condom industry has no official
competitors.
30. SWOT
Strength Weakness
ďEasily raw material availability ďUnpleasant experience.
ďAlmost essential for sex ďCannot advertise directly only
ďAvailable in many sizes. ďsurrogate advertisement for
condoms.
ďAvailable in many colors and flavor to
ďSocial, cultural and traditional
attract more consumer.
hindrances.
ďGetting importance worldwide
ďIncreasing awareness & increasing ďNot 100% guarantee completely STD
sales and pregnancy control.
ďUse of condom to avoid STD from ďSlipping ,bursting problems.
spreading(no other alternative available
except condom)
31. cont.
Opportunity Threats
ďPeople are getting more aware & ďSurgical Procedures (sterilization)-
conscious about use of condom. Tubal Ligation(F)/Vasectomy(M)
ďScope for expansion ďSociety- the Roman Catholic Church
generally opposes condom use.
ďIncreasing Availability in vending
machines(people are still shy to ask for ďMasturbation and use of Sex toys.
condom)
ďNatural methods to avoid pregnancy
like withdrawal (avoid ejaculation inside
her).
32. KEY SUCCESS FACTORS
ďQuality control
ďCreating awareness
ďVariety & Innovations
ďBrand image
ďExcellent distribution channels
ďMarket availability
ďSociety and government support