Durex Analysis Note
Durex Analysis Note
Service Marketing (Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh)
Group member:
Tran Thi Van Anh - s3689040
Nguyen Duc Thanh - s3715175
Pham Thuy Linh - s3754493
Nguyen Yen Trang - s3753365
Nguyen Tran Khanh Van – s3757959
Tran Huu Hoang Ninh -s3794484
Table of Contents
A. Situation Analysis..........................................................................................2
I. Company description...........................................................................................2
II. Product description............................................................................................3
B. Marketing Environment................................................................................3
I. Micro environment..............................................................................................3
1. Suppliers.........................................................................................................................3
2. Marketing Intermediaries...............................................................................................4
3. Customer........................................................................................................................4
4. Competitor.....................................................................................................................5
5. Publics............................................................................................................................5
II. Macro Environment...........................................................................................5
1. Demographic..................................................................................................................5
2. Economic.......................................................................................................................6
3. Natural............................................................................................................................6
4.Technology......................................................................................................................6
5. Political..........................................................................................................................7
6. Culture............................................................................................................................7
C. SWOT Analysis..............................................................................................7
D. STDP...............................................................................................................9
I. Segmentation........................................................................................................9
II. Targeting...........................................................................................................10
III. Differentiation.................................................................................................11
1. Promotion.....................................................................................................................11
2. Product.........................................................................................................................11
3. Packaging.....................................................................................................................11
IV. Positioning........................................................................................................12
1. Positioning Maps..........................................................................................................12
2. Value proposition.........................................................................................................13
E. Conclusion....................................................................................................13
F. References......................................................................................................13
G. Appendices....................................................................................................16
A. Situation Analysis
I. C
any descYription
Durex brand was first registered by The London Rubber in 1929; nowadays the Durex
brand has been producing condoms with multiples types and worldwide spread for over 80
years (Durexuk, 2019). The brand Durex is representing three standards: durability,
reliability, and excellence aiming for experience, safe sex and fun, not just condoms (Will
Smale, 2010).
Durex first release was the lubricated condom in the 1950s and the first brand to use
the electrical testing technology for their condoms in 1953 (Durexuk,2019). During 1970,
Durex commercially advertised in multiple countries, including the Formula One Racing
Tournament (Durexuk,2019). Once again, Durex was the earliest in the history of the condom
industry to gain Global “Shield of Quality” (Durexuk,2019).
Till 2010, a remarkable date for Durex when its former parent corporation SSL
International to announce the agreement of selling Durex to Anglo-Dutch consumer goods
company Reckitt Benckiser for £2.54 billion (Will Smale, 2010). Durex entered Vietnam’s
market in 2005, and it is growth rises year by year till now, reaching 16% of the market
shares.
B. Marketing Environment
I. Micro environment
The microenvironment of Durex Vietnam consists of six factors close to the company
that influence its potentiality to serve its customers. These elements are the suppliers,
marketing intermediaries, customers, competitors and publics (Histech Bhasin,2018).
1.Suppliers
Most of the Durex products namely condom and lube available on Vietnam market are
imported from Thailand from RB Bangpakhong (SSL Manufacturing (Thailand) Ltd.)
(TimGiaNgon). Since it only takes one hour for a cargo flight from Vietnam to Thailand,
which could be counted as a rather fast delivery, there is little likelihood that the products’
quality would be affected. Other suppliers from Vietnam might include companies like
Healthy Life Co.,Ltd and shopthehetre (Supplierss, 2019).
Starting with the opportunity, as mentioned above the time to deliver goods between the two
countries is quite fast so the quality would not be affected much. Furthermore, the close
distance means shipping can be done regularly, Vietnamese importers can calculate the
amount of import based on the market, limiting the amount of unsold goods. Another
advantage would be the price. Since Thailand is an ASEAN member, there will be some
benefits on tariff when exporting to Vietnam and this might contribute to a lower price in
general, compared to products from European countries for instance.
2. Marketing Intermediaries
Durex is known for their good marketing as their product is widely known and can be
found nearly every shop. Their wholesale market in Vietnam includes retail stores,
supermarkets and convenience stores, which Durex has the strength of 90 to 95% by retail
stores and supermarkets in the entire country have Durex products on their shelves, although
the consuming percentage was just around 16% (Laodong,2018). Other data might include:
4.16 million condoms were consumed, the revenue in 2012 was 20,408,000 USD, annual
growth is around 10 to 15% and 2013 saw an impressive growth of 30%(Laodong,2018). As
for convenience stores, Circle K, Family Mart and Mini Stops are the most popular and
widespread ones in Vietnam. Since they open 24/7, meaning customers can buy the products
at any time, Durex would have better selling opportunity there (Bích Lan, 2017).
Durex use exclusive distributor and their only distributor in Vietnam is DKSH
Vietnam, wholesalers must cooperate with them to have the brand’s condom, this is the
strength for Durex to only take an eye on one distributor, easier control over the quality
(Ngọc Trang, 2017). Certain products like Durex Red are also available on eCommerce
platforms such as Tiki, Lazada and Shopee. Younger generation is more likely to approach
the products in this way (Lao Dong Tre,2018).
Their main marketing strategy is using digital media. The company advertises by
using amusing online games and articles about sex. This turned out to be effective
considering Durex sales increased threefold in China from 2010 to 2013 (Angela Doland,
2015). An explanation could be that these kinds of content are sensitive and nowadays people
use the internet more than watching traditional TV. Durex also knows how to advertise
through anticipated event. As Vietnam won the AFF Suzuki Cup 2018 championship, they
made a poster having the condom twisted like an eight number, corresponding to the year
2008 and 2018-ten years of waiting to be a champion again, this movement attracted many
Vietnamese attention (infonet, 2018).
3. Customer
Customer Market: Durex is well-known, and their products are used in many parts
of the world. However, their consumer appears to be highly focused on certain demographic
groups. According to the data on Numerator, Durex’s primary customers are from the under
24 age group, followed by the 25 to 34 and then come the 35 to 44 group (Numerator,2019).
Region-wise, Asian, the category which Vietnamese fall into, are their main consumers
(Numerator,2019).
4. Competitor
The Vietnam’s condom market has been competitive by several foreign brands aside
Durex. Sagami & Okamoto are the Japanese brands which have great impact into the condom
market. Most interestingly, according to a domestic retailer in Ho Chi Minh city, Durex was
place first at 16%, then Sagami was placed second after Durex for the overall buying rates at
12,7% and then the domestic brand “Ok” at 8% (Laodong,2018). The domestic brands are Ok
and Happy, especially Ok was the first Vietnamese brand in 1993 which conquered the
market way before foreign brands due to its affordable price and well known for middle age
men (Vinaresearch,2017).
However, upon all these brands, Durex seems to be the biggest guy in the market with
competitive pricing over the Japanese’s brands from 30,000 VND – 80,000 VND (Durex) and
23,000 VND-70,000 VND (Sagami), (Tuyet Hong ,2017). Even though the competition
against Japanese brands has taken place for several years, Durex has been successfully
dominating the Digital Media using outstanding and creative posters which is its opportunity
in customers embracement. During the USA - North Korea Summit occasion, "Ngăn đạn lạc.
Vì hòa bình", the Facebook post had gathered attention of 30 thousand people during day 1
(Bong Mai, 2019).
In 2014, British company Crown Agent has conducted that 26% of over 170 million
condoms failed he standards of ISO, WHO and UNFPA, this was a direct threat to Durex and
the condom industry (Vietnamnews,2015). Therefore, the Birth Control pills manufacturers
became Durex’s indirect competitor, approximately about 73-75% of consumption by
Vietnamese women (Gynopedia). NewChoice, Regulon, Diane 35 and Marvelon are the big
names in the market for daily uses type (Anh Duong, 2011). Moreover, the birth control pills
are only be sold through pharmacies and hospitals, they are easily access without any
prescription needed (Vietnamnews, 2015).
5. Publics
Besides the popularity of Durex in Digital Media segment which they critically
dominated. The media publics such as domestic news always talk about Durex’s creative in
every significant event, the World Cup posters by Durex had been used for several digital
news (Vietnammoi,2018). The use of News had promoted the digital community into Durex’s
official fan page on Facebook for years which shows an opportunity in customers attraction
especially in the young generation, currently the fan page has reached 11 million subscribers
over 90 million in national population (DurexVietnam, 2019).
Durex also launch campaign about AIDS awareness by partnering with (RED), the
campaign benefits from the general public. The #DUREXRED had been spreading in
Vietnam and e-commerce retailers as Tiki, Lazada & Shopee are the exclusive seller to the
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market (Laodongtre, 2018). The use of both the campaign and e-commerce retailers had
showed an opportunity for Durex to embrace the younger customers with mobile-first region
market. (Laodongtre,2018).
1. Demographic
In 2019, the population of Vietnam has a total of over 97,1 million which makes up
1,26% of the population worldwide and ranked 15th in terms of the level of population in the
world (world meters 2019). Dense population lead to high in customers demand. This is a
golden opportunity for Durex for market expansion as well as gaining a large number of
potential customers. In addition, Vietnam is a country with a young population, there are
nearly 67,3 million people aged between 15 and 64, making up 69,3% of Vietnam population
(countrymeters 2019). Because condoms are the most commonly used product for people in
early adulthood and married people, based on a survey of W&S market research company.
Therefore, Durex company have a large a number of customers. However, according to
nhandan (2017) Vietnam has a fast aging population. Nowadays, on average, 9 people will
have 1 people aged 60+ and this ratio is predicted 5:1 in 2050.
This will be a significant disadvantage for durex because older people often do not use their
products.
Moreover, there is growing trend in male population, Vietnam's excess population of
males might reach between 2.3 and 4.3 million by 2050 (vnexpress 2016). This will be an
opportunity for the company to increase revenue because man is main consumers of durex
manufactures.
2. Economic
According to IPC South Vietnam, economic growth is very fast, the reason for this
phenomenon is industrialization and modernization, economic development is accelerating.
Vietnam GDP has increased sharply over the last decade, from 6,28% in 2008 to 8,46% in
2018(trending economic). Thanks to the outstanding economic development, people living
standard were also significantly increased which lead to an increase in the amount of money
spent on items. Additionally, consumer confidence index is on record growth, making at 129
point in Q3 2018(Nielsen 2018). It means that purchasing power is also high for companies
including durex. In Nielsen report, consumers always put health and life balance issues first,
around 40 to 45% for 2 patterns. Durex products can meet both the essential needs of
consumers. Therefore, this economic development will be an opportunity for durex to
increase sales and earn more profits.
3. Natural
According to the 9th grade geography textbook, Vietnam has large area of badan land,
and the climate is hot and humid all year round, the weather is less volatile, less windy.
Thanks to these favorable conditions, rubber production in Vietnam ranks third in the world
(tapchicaosuvn 2018). This is an advantage of durex if they want to open a factory in Vietnam
because they will have abundant and cheap rubber. However, condom brings negative
consequences into environment. The condom is made from rubber latex which is
indestructible and is not recyclable (ecosalon 2010). Thus, nature will have both
disadvantages and advantages for opening durex condom production facilities.
4.Technology
In technological area, Vietnam is a country that tends to catch up with the trend of the
world. Data from Nielsen report that user-rate mobile accounts occupied 84% and this
proportion still has a tendency to increase steadily in the following year. Furthermore, more
than 70% of Vietnamese people use phones only to social media and surfing Facebook (Soha
2018). This is an opportunity for durex company to promote the image and quality of the
products through mass media which results in reaching more potential customers and increase
their sales.
5. Political
Political factors have some effect on the operation of Durex in Vietnam, for example:
the government in Vietnam continued to associate with Asian UNPF and Pacific Ocean
UNPF (United Nations Population Fund) on 11/7/2018 (UNFPA Viet Nam, 2018) and
launched national programs (path, 2018) to promote family planning or HIV/AIDS
prevention programs which are becoming stronger in Vietnam, so it is an advantage for Durex
to gain more profits from selling its condom which is used as a basic solution to prevent
sexual diseases or unwanted pregnancy or increasing the amount of customers.
On the other hand, Ministry of Health in Vietnam undirected strengthening the
campaigns which distributing free-condoms to the citizens for HIV/AID or sexual prevention
(luatvietnam,2018) so it can affect the vending of Durex.
Political factors are seen as an opportunity for Durex to lift its revenue up or attract
more buyers, but it is also a threat for Durex to face up with free-condoms program from the
government.
6. Culture
Culture forces are essential factors that any company must concentrate on to achieve
its goal. In Vietnam, football is the most popular sport, the fans of football are really huge,
Durex understands that and according to a report called “Cách tiếp thị sáng tạo của hãng bao
cao su Durex trong mùa World Cup" from Vietnambiz.vn, in the 2018 World Cup season, the
brand created some funny and noticeable World Cup advertising campaigns such as “tắt trận
này, bày trận khác", “càng vào sâu, càng gay cấn”, “trước phạt sau đền đưa “anh" tới bến"
and it attracted 11,6 millions of likes from Vietnamese on Facebook, a very famous social
network in the world.
However, the amount of using condoms of people in Vietnam is increasing (laodong,
2018), so it means that Vietnamese are raising awareness of sexual-self-protection day by
day, therefore, it is a great sign for Durex to sale more its products.
On the other hand, Vietnam is one of traditional countries so there are still a lot of
parents, especially the ones in rural area, are reluctant to share sensitive themes such as sex
with children because they suppose it will cause soon sexual curiosity in children
(giaoducthoidai,2018). Sex education programs are quite weak in Vietnamese schools,
teachers are shy to carefully teach students about this field, hence it the reason why a lot of
young people in Vietnam still lack the knowledges of sex education as well as the methods of
sexual self-protection (PetroTimes,2017), (dtinews,2013). So Asian ideas are one of factors
could cause trouble for Durex operation in Vietnam.
In addiction, Vietnamese often favor buying foreign commodities (Zing.vn, 2018),
especially the commodities from developed countries such as United Kingdom, the US or
Korea, therefore, Durex could attract more attention from Vietnamese customers than local
condom brands and gain more profits.
Cultural factors could be considered as threats when it might affect the sale of Durex
bases on Asian ideas. But culture influences are also opportunities for Durex when the
Vietnamese often favor foreign brands when shopping.
C. SWOT Analysis
Strength Weakness
Opportunities Threat
D. STDP
I. Segmentation
Geographic
More than 150 countries in the world (include Vietnam). The main markets are
Europe, American and Asian.
Distributing also in shopping online webs with authentic copyright such as Shoppe,
Lazada, Amazon, etc.
Almost people in cities who have sex education knowledge can access the product.
It satisfies requirement of both Easterners and Westerners with a variety of sizes and
types such as Durex Kingtex for most of Asian size.
Demographic
- Generation: Y, Z - Generation: Y
- Income: working to middle class - Income: working to upper class
- Education: high school, university - Occupation: post-graduated, workers
Psychographic
- Aware of love as well as sex education. - Aware of sex life, feeling and health.
- Be influenced by advertisement, creative - Having experiences in sex and
design, etc. wanting to try new different feeling.
- Open mind. - Less price considering.
- There is a tendency to participate in parties or - Caring about quality and feeling.
events which have alcohol and sex.
- Price considering.
Behavioral
- Occasion: - Benefit:
+ Normal day. + Avoiding unwanted pregnant.
+ In the time when have high sexual needs + Avoiding social diseases like genital
(Winter holidays in Western or Valentine’s day. herpes, HIV/AIDS, etc.
etc.). + Providing many types of products
- Benefit: which support users to have good sex
+ Avoiding unwanted pregnant. life.
+ Avoiding social diseases like genital herpes, - User status: potential/ regular.
HIV/AIDS, etc. - Usage rate: medium to heavy users.
- User status: potential/ regular/ first time users. - Loyalty status: medium to high.
- Usage rate: light to medium users.
- Loyalty status: Low to medium because they
can be appealed by other products.
II. Targeting
Following the segmentation table above, Durex offers many types of products with
many different prices for all the customers. Thus, “Differentiated Segmented Marketing
Strategy” is what Durex chose to develop their own brand. Durex attract more customers
than other condom brands because of their diversified products (14 main products). For
example, Olo with only 6 products or OK of Turkey with 6 products. Moreover, Durex
also offers many choices of sizes and scents for customers to freely choose according to their
preferences. That is the reason why this strategy has helped Durex become the most famous
condom company in the world which sold products in more than 150 countries. Durex also
leads in the manufacturing modern condoms industry. That are some main products of Durex
which serve both kinds of customers.
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Durex Extra Safe is suitable for customers who want to make sure their condom is
safe. Although it has special design to ensure absolute safety for users, it make
customers feel comfortable. Durex Extra Safe targets to young and inexperienced
customers because they need absolute safety in their sex life.
Durex Invisible with the slogan “Our thinnest ever condom” attracts many customers
because of its thin design which gives true feeling for users. Durex Invisible also
ensure the safety for them. That is why it is a good choice for all type of customers.
Durex now considers Vietnam as a potential market because of a large population and
particularly, the number of people in the regular age of sexual activity accounts for 29% of
the total population. However, Vietnamese Durex utilization rate is only 16% lower than the
global figure. This is a big challenge
III. Differentiation
1. Promotion
2. Product
Not only strong in advertising strategy, Durex also pays great attention to their
products about high quality. Their modern technology production is the reason why the
average price of Durex is higher than local condom brand like Thailand or Japan. Although
the price is quite high, consumers still trust Durex because of Durex’s reputation and quality.
Durex always tends to go for quality before the quantity. Just once in 2018, Durex have their
retrieval team revoked the below standard batch. It was also proved through proceeds of them
in Vietnamese market. According to Laodong.vn, total revenue of Durex condoms in Vietnam
in 2012 is 20,408,000 USD. In 2013, this rate has increased significantly by 30%. The total
number of condoms Durex consumed in Vietnam market last year reached 4.16 million.
3. Packaging
According to The ODM Group, comparing with other condoms brand, packaging is
the strength of Durex that appeal as well as absorb their customers. In fact, when buying any
products, customers always pay attention to the products’ packaging firstly. To verify this
factor, we made a survey taking opinions from people of all ages. The results show that the
majority of customers, especially people who at young age, choose packaging as the reason
why they are attracted by Durex.
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IV. Positioning
1. Positioning Maps
To choose any product, consumers not only care about the packaging but also have to
thoroughly understand the properties of the products. The most important factor that
customers usually pay attention when choose condom is the thinness. The map above
compares 2 main factors of each condom brand “price” and “thinness level”. Although the
price of Durex is quite high, customers always satisfy with the quality of product through its
thinness. Moreover, Durex's main customers are young people aged 16-35 in middle-class, so
this price is suitable for them.
In addition, with 2 elements “price” and “scent”, Durex confirms its position in
condom production technology. According to the survey, Durex condoms are in the top of
worthwhile condoms which have scent, especially strawberry scent.
2. Value proposition
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“More for more” is the propositioning strategy that Durex applies for their products.
E. Conclusion
Durex's strength is a reliable brand with good product quality and reasonable price.
Durex is widely known for its creative marketing team with bold ideas that help them attract.
huge number of customers. Customers can access durex products easily because it is widely
sold in convenience stores. all these points make durex always compete with their rivals
there are still some limitations of durex. It is their product does not decompose and recycle so
it affects the environment. moreover, the price is higher than that of middle-income citizens.
The main problem that durex is facing: Vietnamese young people lack awareness of sex
education and safety when sex is in relationship, so condom use is still limited. In the future,
the Vietnamese population will be aging so durex will lose a certain number of customers.
Environmental issues are increasingly heating up around the world while durex products are
harmful to the environment. This will make durex products without consumer support or
government.
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12
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13
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G. Appendices
16
17
18
The data the age and sex structure of Vietnam population: The table shows that the population
of Vietnam is still young, and the number of sexes is nearly equal.
19
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