CL ccm2015 durex 02_03_2016

Постоянство в партнере –
постоянство в контрацепции!

2Постоянство в партнере – постоянство в контрацепции!
CONTENTS
For several years, RB has been promoting SWB (sexual wellbeing) brands in the Russian market as a representative of the large Durex brand.
Participants should develop a strategy for the promotion of condoms as a modern method of contraception among target audience in the 25 to
45 age group in Russia over the next 5 years. What methods of communication are suitable for a more mature audience? Which key messages will
be effective and will work for those who are already married or in a relationship? Devise a strategy that will prompt people of the older generation
to take a fresh look at the subject of condoms, and lead to increased condom use among them.
1
3
2
4
About the company, its SWB department,
and the history of the Durex brand
Promoting modern methods
of contraception
The Market and the Methods
of Contraception
Applications
This case study was prepared
by Changellenge>> for RB
solely to use for educational
purposes in the framework of
Changellenge National Case
Study League >>. The authors
do not intend to illustrate effec-
tive or ineffective management.
Certain names in this case
study, together with other iden-
tification data might have been
altered for confidentiality pur-
poses. Case study data might
not be valid or accurate, and
also might have been altered to
comply with commercial confi-
dentiality policy.
All rights reserved, unauthorized
use is prohibited. In order to pur-
chase the case and for distribu-
tion purposes please contact us:
info@changellenge.com.

INTRODUCTION
«This is not gripping, and is too vulgar,» Alexei
thought to himself, having finished viewing
another clip from the advertising agency. He
opened his diary to outline a plan for the next
week. Alexei – Senior Brand Manager for the
SWB category – liked to conquer new heights
and be first in everything. Now, having returned
fromamarketingconference,hewasonceagain
thinking deeply about the as-yet unrealised
opportunities for the Durex brand. A TV clip
had recently been launched by his team about
the unreliability of traditional contraception.
According to a survey, 42% of those who had
watched the clip were willing to start using
condoms. The clip was so successful that it
was adapted by other RB branches around the
world to their respective regions.
Now Alexei was faced with an ambitious
task to establish a long-term strategy
to promote condom use among the
audience aged 25 to 45 over the next
five years to raise the penetration of use
up to 56% (ie by at least 8 percentage
points). The strategy was to include a
set of messages, insights, and a detailed
plan of marketing activities to prompt
people aged 25-45 to take a fresh look
at the subject of condoms, and lead to
increased condom use among them.
Alexei was well aware of the difficulty of the
task, so he had been preparing for it for a long
time. While his team had achieved convincing
results in communicating with young people,
there was still a lot of work to be done with
the audience of the 25-45 age range. About
80% of people in that audience were in a
relationship, and protection from sexually
transmitted diseases was not as significant
an issue for them as prevention of unwanted
pregnancies. Traditional contraceptive methods
predominated among the mature audience – the
calendar-based method and coitus interruptus.
This age group was of particular interest to
Alexei, who had been involved in promoting
the Durex brand. Despite the fact that the older
audience was sexually less active, it was larger
in size, and had a lot of potential, as it was less
saturated with modern contraceptive methods
than the younger audience.
Alexei thought to himself that the difference
between the age groups lay not only in the
motives for choosing a certain method of
contraception, but also in the ways of conveying
information. For example, young people
were much easier to influence through online
resources and friends, while representatives
of the older audience had more confidence in
their own experience. At the age of 32, Alexei
no longer watched television and found all the
necessary information on specialized internet
platforms. However, being familiar with the
habits of his friends and acquaintances, he
realized that not everyone could trust the
internet (blogs, social networks, Youtube clips).
Therefore, it was vital to work thoroughly on
both channels of communication with a more
mature audience – television as the main
communications channel of the day, and the
internet as a channel with future potential due
to its increased coverage of the target audience
over the next 5 years. Other channels of
promotion, such as outdoor advertising, could
also have been used, but Alexei knew from his
experience that this would not bring tangible
results.

THE TASK
That week, inspired by the conference, he decided to formulate all the ideas that he had long
nurtured into a single presentation. Moreover, a week later, he was scheduled to meet with the
management to discuss the topics of business development and increasing the sales of Durex.
Alexei once again looked at the plan for the week:
• To formulate the concept of the video clips, messages and insights that could
change the consumer’s views about the use of condoms over the next year and
bring about a significant increase in penetration by 2 percentage points.
• To evaluate the coverage and conversion of different channels of communication.
• To create a detailed plan of all marketing campaigns for the next 5 years, which
would help increase the penetration of condom use among the target audience to
up to 56%.
• To calculate the effect for the business: investment into promotion should not
exceed the profit obtained from increased sales.
Many materials had already been collected, and what was needed was to formulate the ideas into
a short presentation for the company’s management. Perhaps in a year’s time, his messages and
ideas would not only be used in Russia, but also help more people around the world use Durex
as a more reliable means of contraception.

ABOUT THE COMPANY, ITS SWB DEPARTMENT,
AND THE HISTORY OF THE DUREX BRAND

Alexei considered his ability to concentrate on
the important tasks and ignore any external
interference to be his forte. He sat in his office
thinking deeply about the development of the
Durex brand, and even though the door was
ajar, the sounds coming in from the outside
did not bother him. A training session on RB’s
values and core brands was being held next
door for young trainees, some of whom would
be joining Alexei’s team in the near future, while
someone would perhaps go on to become a
Senior Brand Manager or Head of Department
in a few years’ time. The training session
began with a presentation about the company’s
development and current situation.
RB is the world’s leading consumer health
and hygiene company, — training leader was
commenting slides in the next negotiation
room. The company has operations in over
60 countries, with headquarters in London,
Dubai and Amsterdam, and sales in almost 200
countries.The company employs approximately
37,000 people worldwide.
RB was formed in December 1999 by a merger
between Reckitt & Colman and Benckiser NV
that were founded in the 19th century. Now RB
employs over 36,000 people worldwide, with
operations in 60 countries and sales in over
200 countries
.
With a purpose of delivering innovative solutions
for healthier lives and happier homes, RB is in
the top 20 of companies listed on the London
Stock Exchange.Today it is the global No 1or No
2 in the majority of its fast-growing categories,
driven by an exceptional rate of innovation. Its
health, hygiene and home portfolio is led by
19 global Powerbrands of Nurofen, Strepsils
Gaviscon, Mucinex, Durex, Scholl, Clearasil,
Lysol, Dettol, Veet, Harpic, Bang, Mortein,
Finish, Vanish, Calgon, Air Wick, Woolite and
French’s. 75% of core revenues came from the
health and hygiene categories of the portfolio.
Fuelled by a new breed of talent who blend
intellectual curiosity with commitment to the
highest quality standards, RB is set to redefine
the world of consumer health and hygiene. RB
people and its culture are at the heart of the
company’s success.
RB is listed in the Dow Jones Sustainability
World Index (DJSI). The company was named
leader of the Household Products industry and
earned ‘industry best’ scores for the broad
economic and environmental dimensions. RB
is also a member of the CDP FTSE 350 Carbon
Disclosure Leadership Index and was ranked
7th in the Corporate Knights Global 100 Most
Sustainable Corporations in the World Index.
In Russia RB has been working since 1994
with the central office located in Moscow.
The RB company’s sales forces are operating in
more than 50 cities in Russia and in major CIS
countries (Armenia, Azerbaijan, Belorussia,
Georgia, Kyrgyzstan, Tajikistan, Ukraine,
Uzbekistan and a representative office in
Almaty, Kazakhztan).
The local production of household goods is
located in Klin, Moscow region. The Klin factory
was opened in 2005. Currently more than
1800 professionals are employed by RB in
Russia/CIS.
RB’s betterbusiness sustainability
strategy includes three goals for 2020:
• To cut the water and carbon footprint of
products by one third per dose
• To achieve one third of net revenue from
more sustainable products
• To reach over 200 million people to
improve their health and hygiene behavior
Key achievments of company`s goals:
• Over 141 million people reached with
health and hygiene messaging, 70% of
goal to reach 200 million people by 2020
• 50% of products in pipeline more
sustainable than their predecessors
• 74% of factories sending zero waste to
landfill, including hazardous and non-
hazardous waste
• 25% reduction in water use per unit of
production.
RB
Make Your Move with RB
A speedy guide to RB
СМОТРЕТЬ
СМОТРЕТЬ

RB has reduced the environmental footprint
of the products in its pipeline by embedding
sustainabilityintothewayitinnovates.RBusesa
bespokeonlinetoolthatguidesthedevelopment
of low-impact products by showing designers
the environmental impacts of their decisions
in real time. RB’s entire product pipeline is
continually assessed by the tool. By end 2014,
50% of the pipeline consisted of innovations
that are more sustainable than existing RB
products. RB is one of the first businesses to
take a portfolio view of its product development
process through a sustainability lens and has
reduced the overall carbon footprint and water
impact of its products by 3% and 2% per dose,
respectively, since its baseline year of 2012.
In manufacturing, 74% of RB factories are
sending zero waste to landfill (including
hazardous and non-hazardous manufacturing
waste). Since 2012, RB has gone from four
to 35 factories achieving zero waste to landfill
and reduced water and energy use by 25% and
13% respectively (per unit of production). RB
has also seen a 13% reduction in lost work day
accident rates since 2012.
RB brand social goal declared in 2013
Sustainability report: helping >200 million
people to improve their health & hygiene
behavior by 2020.
RB, the global leader in consumer health
and hygiene, reveals that it has reached over
141 million people since 2013 with health and
hygiene messaging. RB has achieved 70% of
its 2020 goal to reach over 200 million people
to improve their health and hygiene through
programmes led by brands including Dettol and
Durex. For example, Durex’s «Someone Like
Me» programme has reached approximately
70 million people with sexual health messaging
while 70 million people have been reached
through Dettol and Harpic’s hygiene education
and sanitation programmes.
Rakesh Kapoor, CEO, commented:
«While I am proud of the progress
that we have made, we will continue
to challenge ourselves to do more
with less to achieve our vision of a
world where people are healthier
and live better.»
THE CORE VALUES Active member of official
technical committee on barrier
contraceptives, responsible for the
review and publication of ISO 4074:
global latex condom standard
Participated in US FDA inter-
laboratory study on condom
compatibility of lubricants leading to
a new ASTM standard on the use of
lubricants

«Prior to proceeding with describing the
Healthcare Department, I would like to ask
a question to test your attention skills: what
percentage of core revenues came from the
health and hygiene categories?»
The only one to raise his hand was a tall
young man with glasses: «If I’m not mistaken,
it’s 75%.» The head of the training session
nodded: «Absolutely correct! Let us continue,
as we only have a little time left before the
coffee break.»
Category profile
Generally over the counter (OTC) solutions in
this category target relief for common ailments
such as pain, fever, cold, flu, sore throat or
heartburn. Living the brand promise is critical
in this category as consumers seek solutions
to everyday health and wellbeing issues.
Sexual wellbeing products including condoms,
lubricants and other aids, make up part of our
health portfolio promoting safe and pleasurable
sex. Footcare rounds out this category with
products to address hard skin and other foot
and nail conditions.
Market position
Nurofen and Gaviscon are leading analgesic
and gastro-intestinal brands in Europe and
Australia. Strepsils is No.1 in medicated sore
throat globally. Mucinex is the No. 1 cough brand
in the US and No. 2 in cold and flu products
worldwide. No. 1 in the world for condoms with
Durex. Leading positions in many markets in
footcare and comfort footware with Scholl.
Category brands
InadditiontothePowerbrandsDurex,Gaviscon,
Nurofen, Mucinex, Scholl and Strepsils the
health portfolio consists of well-known local
heroes and multi-country brands like Bonjela,
Cepacol, Delsym, Disprin, Dobendan, Lutsine,
Optrex, Lemsip, Moov and Senokot.
Healthcare Business
Thus ended the first part of the introductory
training session, and the trainees rushed to the
table where the coffee machine stood. Maksim,
the Health Category Manager and head of the
training session, decided to visit Alexei and
invite him to personally hold a speech about
Durex, to which the latter immediately agreed.
After all, there were a couple of people among
the trainees whom Alexei was planning to get
involved in the process of developing new ideas
about promoting Durex as early as this week.
«I’m glad to welcome you to our office,» began
Alexei when the young listeners took their
seats. «I’m the Senior Brand Manager for the
SWB category. You all know that Durex has
been making highest quality condoms for nearly
80 years. With over 30% of the global branded
condom market, it’s the no. 1 condom brand in
the world. Durex condoms continue to go from
strength to strength with new products such
as Durex Tingle, Pleasuremax and Performax.
The name, which the London Rubber Company
trademarked in 1929, is an abbreviation of
«Durability, Reliability, and Excellence».
We can say with confidence that each of our
products has passed thorough monitoring
and examination. This process starts at the
earliest stages of production, so we use only
raw materials of the highest quality. Each
condom is then electronically checked and
samples from each batch are inflated with air
to test for strength. International standards
require condoms to be able to hold up to
18 liters of air. Durex condoms are able to
accommodate up to 40 liters of air without any
damage!
History of Durex

«That’s not all, though,» Alexei said, as he
poured himself a glass of water. «Samples
were also tested with water to make sure they
do not leak. To guarantee the quality of our
products we conduct about two million of these
tests each month. If the sample fails any one
of our tests, the whole batch of up to 432,000
units stays at the factory. In addition, all Durex
condoms are dermatologically tested.
«Not only do we develop new tests for
products, but we also conduct a lot of research.
We learn how to improve our products, and we
also observe trends in sexual behavior, and
in the society as a whole. We strive to be the
first to know everything that will inspire us to
realise new ideas. To date, we have collected
a large amount of information. We get advice
from the Health Ministry and hospitals, as well
as scientists, academics and leading experts
in the field of sexuality. Such an approach to
its products makes Durex the global market
leader. Finally, I would like to wish you good
luck and patience. Aim to make the best
product on the market – at RB, you will have all
necessary conditions for that.» Alexei smiled,
said goodbye to the audience, and went back
to work. The following day he was due to
hold a meeting with marketers to discuss the
company’s current position of the market and
the preferences of Russian consumers in the
field of contraception.
Pic. 1. Structure of sales value
Source: according to RB

Summer Olympics. Although Durex were not an official
sponsor of the Olympic Games, company provided 150,000
free condoms to more than 10,000 athletes that competed
in the 2012 Summer Olympics in London.
Founded The London Rubber Company
was founded by LA Jackson, selling
imported condoms and barber shop
supplies.
The London Rubber Company (LRC)
registers the Durex brand.
Durex release its first lubricated
condom.
Durex is the first condom brand to
launch a website. Now we have 42
different sites for the countries we
market in.
Durex is the first condom company to
conduct and publish a global survey.
Durex network launches the Face of
Global Sex reports than explore the
aspects of human sexual behavior
and are produced primarily to inform
academics and policy.
To promote safe sex for young people,
Durex called for young people betweeen
the agea 16-24 to design a unique sexual
health poster — a poster designed by them,
for them.
Durex is bought by Reckitt Benckiser.
1915 1929 1929 1996
1997
2005200820102012

THE MARKET AND THE METHODS
OF CONTRACEPTION

Alexei began his morning not with a cup of
coffee, but with a glass of fresh orange juice that
gave him energy for the whole day. Despite the
early morning meeting at the office, he did not
change his habits. Gathered in his office that
day were marketers Anton, Olga and Dima.
«I will start by stating that interacting with the
25-45 age group will not be easy» – Anton
did not like to give lengthy speeches, and
immediately proceeded to state the results
of his research – «there is a huge amount of
dubious information out there about safe sex.
Mothers and grandmothers say one thing,
friends say something else, and advertisements
say something different altogether. Who will
earn the trust of our target audience aged 25
to 45? Last week, I asked the experts from
the Russian Association for Population and
Development for advice, and studied the latest
WHO (World Health Organization) bulletins
on reproductive health and contraceptive
methods. Each method has its advantages and
disadvantages that ought to be considered.
«The extent of contraceptive use is on the
increase in many parts of the country. Global
figures for the use of modern contraceptives
have only increased slightly – from 54% in
1990 to 57.4% in 2014. The problem with
using traditional methods of contraception
is acute not only in Russia, but even in such
informatively developed countries as the US
and the UK, where there are similar statistics
regarding the number of abortions.
«Among the means of contraception that are
most popular in Russia, I would highlight the
following,» Anton said as he handed out tables
to everyone present:
OF CONTRACEPTION
Methods of contraception
Modern Methods of Contraception

«Thank you, Anton, this information is very
valuable! Olga, what about the survey of target
groups? Has their attitude to condoms changed
after the launch of our advertising campaign?»
«Our clip about the number of abortions during
six months has led to a 0.6 percentage point
increase in the 25-45 age group. For our
category, where changing consumers’ minds
about the most intimate matters is extremely
difficult, this can be described as a success. In
spite of the unreliability of traditional methods,
Russians are still more likely to reject modern
methods than it is the case elsewhere in
the world,» began Olga, one of the most
experienced analysts working on social surveys
of the population.
OF CONTRACEPTION
Traditional Methods of Contraception
Pic. 2. Contraception method used most often
Source: Global Survey (U&A, June, 2012), INCITE

Market overview
«I agree, a 0.6 percentage point growth is
a good result,» Alexei said in support of his
colleague. «However, we can achieve more
if we correctly choose the insights that will
change the minds of the consumers. The
subject of abortions is only one such insight –
we need to find a further two or three themes
for the clips. Dima, can you remind us what the
situation is like with sales?»
«According to the latest data,» readily
responded Dima, a young employee of the
marketing department, «up to 53.7 % of sales
in monetary terms of the total condom market
in Russia were conducted through pharmacies.
In terms of units sold, about 140 million
condoms have been purchased in pharmacies
over the year, which constitutes an increase of
over 6 million units per year. About 35 different
brands of barrier contraception and more than
300 kinds of condoms of various forms and
package sizes are represented in pharmacies.
The total volume of the Russian market for the
year from June 2014 to June 2015 amounted
to 4.79 billion rubles. The package sizes sold
in pharmacies range from 1 to 100 pieces.
In monetary terms, package nr. 3 is the most
popular one at 40 %.»
Pic.3. Condoms sales by channels
Source: Euromonitor 2012
«Dear colleagues, thank you for the meeting.
We have a lot of work ahead of us» Alexei told
the attendees to conclude the meeting.
Alone in his office, he once again looked at
the overall results of the company’s activity
for six months. The results were impressive,
especially when considering the deteriorating
economic situation that was felt across the
world.
OF CONTRACEPTION

PROMOTING MODERN METHODS
OF CONTRACEPTION

Russian anti-abortion
information programs
«Hmm, there is so little,» Vadim thought to
himself. Having seemingly looked in every
corner of the vast internet, the amount of
information that he gathered was very small,
and was mainly related to the Russian anti-
abortion programs. Here is what he found:
The anti-abortion information program
conducted by the Charitable Fund for Protection
of Family, Motherhood and Childhood. This
organization has been engaging in the
prevention of abortions for over ten years.
conducted by the outdoor advertising agency
RussOutdoor (formerly NewsOutdoor) in 2010.
conducted by the ROC, which also supports
crisis centers for future mothers.
OF CONTRACEPTION
Vadim, a tall man with glasses, was the first
trainee whom Alex invited into his team
immediately after the training. «Your first task
will be to search for examples of promotion
programs aimed at our target audience, and
do not forget that our whole department will be
meeting for a final briefing at 12 on Friday» –
Alexei did not like long introductions, instead
preferring to immediately hand out tasks to get
new employees fully involved in RB’s business. All programs carried messages in opposition to
abortion, but there was no mention of how to
prevent having to choose between abortion and
life. «Perhaps it is the absence of information
about the prevention of unplanned pregnancies
and abortions that led Durex to produce the
clip that is now being shown on TV,» Vadim
thought to himself. People do not have enough
information about the underlying causes of
unintended pregnancy and the measures to
help avoid the need for abortion – the use of
more reliable means of contraception.
Advertising Laws
Vadim came across some notes in the margins
of one of the documents.
He then gathered all the documents together –
tomorrow he would be able to boast about his
work to Alexei.

Having received all the necessary information,
the Senior Brand Manager decided to once
again think through everything. Alexei knew
that coming up with a new packaging design or
a new size of condom would not make sense,
as it would not have any effect on those who
did not use them in first place. To increase the
penetration of condom use it was necessary
to focus on coming up with new messages.
The tone was an important factor in getting
the messages across to the consumer: they
should not have contained negatives that may
have deterred the consumer not only from
the traditional methods of contraception, but
also from the Durex brand itself. The first step
had already been taken – the clip about the
unreliability of the coitus interruptus method
had led to a gain of 0.6 percentage points over
the six months of it being broadcast. Although
the company’s global management rated the
clip highly, Alexei did not like the negative tone
of the message, and wanted something more
positive. Perhaps it would have been worth
considering a switch from the term «abortion»
to a more concise «family planning.» It would
havemadesensetomakethenextclipaboutthe
unreliability of the calendar-based method, but
how best to get consumers from the 25-45 age
group interested in the product? A new insight
was necessary – as effective as the one about
abortion, and conveyed correctly, whereby the
existing standard means of communicating with
younger audiences may not have produced the
desired effect. Furthermore, even though no
financial restraints had been placed on Alexei
in terms of investing in creating, marketing and
advertising, he knew that all expenses would
have had to be recouped over the following 5
years, as it was a fundamental prerequisite for
the development of the Durex brand.
Of course, as Senior Brand Manager, Alexei
was responsible for the growth in revenue and
sales of Durex. Yet at the same time, increasing
the penetration of condom use was not so much
a matter of increasing sales of Durex for Alexei,
as it was a matter of preserving the health of
several generations.
Friday’s internal briefing with the team, where
Alexei was going to present a strategy to
promote the brand among an older audience,
was supposed to be a dress rehearsal before
the meeting with the company’s management a
week later. The briefing started on time – Alexei
was punctual and demanded the same from his
entire team. «So, dear colleagues, let’s start»…
OF CONTRACEPTION

APPLICATIONS

APPLICATION 1.
Termination of pregnancy (abortion) by age groups women
Source: Federal State Statistics Service
*- Data are presented by organizations of the Russian Ministry of Health
25%
NON-OFFICIAL STATISTICS
25% of deaths among
pregnant women refer
to illegal abortion
(not in official clinics)

APPLICATION 2.
Percentage of women experienced an unplanned pregnancy
Source: GSS Russia 2011

APPLICATION 3.
Descriptions of condoms
(ranked on gap between user and non-user response)
Source: Durex U&A (June, 2012), Incite

APPLICATION 4.
Percentage distribution of the level of risk to the health of the individual
methods of contraception, according to women 15 to 44 years, ever married
Source: «Reproductive health of the population of Russia 2011», Russian Ministry of Health, Federal State Statistics Service

APPLICATION 5.
The percentage distribution of views on the effectiveness of various
methods of contraception among women 15-44 years old

APPLICATION 6.
Russian market value structure
Source: Pharmexpert, IMS Health

APPLICATION 7.
The percentage distribution of the causes of abortion made
by respondents in 2006-2011

This case study was prepared
by Changellenge>> —
the leading case organisation
in Russia
www.changellenge.com
info@changellenge.com
vk.com/changellengeglobal
facebook.com/changellenge
This case study was written
for Reckitt Benckiser
www.rb.com

CL ccm2015 durex 02_03_2016

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