Condom Industry


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Analysis of Condom Indutry

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  • Informative type of presentation.. but did not explained the threat of entry of new technologies or new methods in male contraception like (RISUG).. how the condom market get effected by this new methods..
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Condom Industry

  2. 2. CONTENT  Introducing Condom  History of Industry  Product Innovation  Market Leaders & Players  Capital requirements & Economies of scale  Market size  Market growth rate & Industry profitability  Entry barriers
  3. 3. cont.  Marketing Mix  Market Segmentation  Strategic Group Analysis  External Environment  Porter’s five forces  Competitive Analysis  SWOT Analysis  Key Success Factors  Future Trends and Projections
  5. 5. Introducing Condom Used during sexual intercourse to cover a man's erect penis. Blocks semen from entering the partner’s body. Prevent pregnancy and transmission of sexually transmitted diseases (STDs—such as gonorrhea, syphilis, and HIV). Made from latex, polyurethane or lamb intestine
  6. 6. Cont. A female condom are also there. made of polyurethane. Male condoms are inexpensive, easy to use, less side-effects. Users experience only 2% condom failure. Secondary usage to waterproof microphones & also to protecting rifle barrels from clogging. Source { assessed 29/03/09} { / assessed 29/3/09
  7. 7. History of Industry  Condom was named from CONDUS’ which means a vessel or a container.  Oldest paintings of condom found in Egypt portrayed around 950 B.C.  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).  By the 1700s, condoms made from animal intestines & considered as “an armour against pleasure, and a cobweb against infection.“  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. 8. Cont.  Japanese made it from tortoise shell.  Land of the Pharaoh used crocodile dung, intestine of killed enemies in Rome.  In 18th century Ist rubber condom was invented.  After 1930’s, latex was used to make condoms, superior then rubber.  Now condoms manufactured with varying size, shape, length, strength, color, flavor etc. Source( Published 11/04/2004, assessed 1/04/09
  9. 9. Rapid product innovations  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. 10. Ansell’s Lifestyle xtra pleasure Leonardo da Vinci of condom Inspiral condom condom in 1990’s in 1990. Avanti first polyurethane Trojan came with Supra Dolphin condom in condom in 1995 2008
  12. 12. Market Leaders & Players Major Players :- Crown, Okamoto, Durex , Lifestyles, Trojan Others….
  13. 13. Capital requirements & Economies of scale  Condom industry is subject to significant economies of scale.  While the capital investments are too high, the variable costs are low.  Manufacturing plants are mostly automatic  Contraceptive production is a high-volume thereby low-cost business.  Variable costs constitute about 15% of the total costs of producing
  14. 14. Market size  For over the counter sales, market share in 2005 is estimated to be:  Church & Dwight (Trojan) 70.0%  SSL (Durex) 9.2%  Ansell (Lifestyles) 11.6%  Others 9.2%
  15. 15. Market growth rate & Industry profitability  Dr. P. M. Mathew, Vellore says, “economic stress would normally cause depression and lessen the urge for sex” .  But condom sales say a different story: “In 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 million”, HUL Life care marketing director Suresh Kumar told ET.
  16. 16. Cont…  Nuclear test sparks soaring condom sales in South Korea Last updated at 17:01 26 October 2006  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.
  17. 17. Entry barriers  The cost of obtaining the quality certification (like BSE Kitemark, UK)(different in different countries)  The cost of establishing a brand image.  Getting listed with wholesalers and retailers.
  19. 19. Marketing Mix Products Condoms: types Male or female condom Color, Flavor, Size Thickness , Safety Material used (latex& polyurethane, Polyisoprene)
  20. 20. Place Products can purchase through: • Home Delivery- with Fast Delivery • Online stores • Hospitals • Super markets & hyper malls • Sex shops • Medical stores • Hotels & Resorts
  21. 21. 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. Google®
  22. 22. Cont.. Public Relations: • Words of mouth [Viral Marketing] • Joining Social Community and Events Sales Promotion: • Discounts – buy 3 get 1 free • Premium – free sample on special occasions like valentine day Post-Sale Service: • Online Live Chat • Online guidelines regarding sex and condom usage.
  23. 23. 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 Valentine’s 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
  24. 24. Market segmentation Demographic: Psychographic: Gender: Male & Female Culture Age: 15-50 years – 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
  25. 25. 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 –import &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
  26. 26. Strategic Group Analysis  The condom industry has two principal aims:  1) Prevention of STD, such as AIDS etc. 2) Contraception means.  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  Concerning the prevention means of the STD market, the condom industry has no official competitors.
  27. 27. Competitive analysis Note: Ansell’s Lifestyle, SSL’s Durex, Okamoto’s Crown. Yaz is contraceptive medicine
  28. 28. SWOT Strength Weakness Easily raw material availability Unpleasant experience. Almost essential for sex Cannot advertise directly only Available in many sizes. surrogate advertisement for condoms. Available in many colors and flavor to Social, cultural and traditional attract more consumer. hindrances. Getting importance worldwide Increasing awareness & increasing Not 100% guarantee completely STD sales and pregnancy control. Use of condom to avoid STD from Slipping ,bursting problems. spreading(no other alternative available except condom)
  29. 29. cont. Opportunity Threats People are getting more aware & Surgical Procedures (sterilization)- conscious about use of condom. Tubal Ligation(F)/Vasectomy(M) Scope for expansion Society- the Roman Catholic Church generally opposes condom use. Increasing Availability in vending machines(people are still shy to ask for Masturbation and use of Sex toys. condom) Natural methods to avoid pregnancy like withdrawal (avoid ejaculation inside her).
  30. 30. KEY SUCCESS FACTORS Quality control Creating awareness Variety & Innovations Brand image Excellent distribution channels Market availability Society and government support
  31. 31. Future Trends and Projections Future market potential
  32. 32. Results of not using CONDOM
  33. 33. Thank You