in

association with

Presents

THE DUREX CASE STUDY

COMPETITION

DUREX IN INDIA : THE CATEGORY NORMALISATION CHALLENGE

The Origin
Reckitt Benckiser is a British multinational consumer goods company with brands like Dettol
(the world's largest-selling antiseptic), Strepsils (the world's largest-selling sore throat
medicine), Veet (the world's largest-selling depilatory brand), Air Wick (the world's second-
largest-selling air freshener), Calgon, Clearasil, Cillit Bang, Durex, Lysol, and Vanish in its
portfolio among many others. The company entered the contraceptive market through the
acquisition of the brand Durex globally in November 2012.
Durex has been making the highest quality condoms for nearly 80 years. With over 30% of
the global branded condom market, it is the number 1 condom brand in the world. However
despite having a dominant market position globally, the brand faces a challenge to change
the perception of Indian consumers and channel partners regarding sexual well-being (male
contraceptive) in order to normalise the category and drive growth. The current market
share of Durex in India is a mere 4% in a market which is under developed compared to
other markets in terms of the category size and growth. The brand team acknowledges that
there is a lot to be done to make the brand a formidable player in the sexual well-being
(male contraceptive) category.
A recent study commissioned by the Durex brand marketing team has thrown-up some
interesting facts about the category dynamics and challenges in marketing condoms in India.
While pondering over the results, the team was clear about one thing, that to make a play
for the leadership position in this category something needs to be done to normalise the
category so as to expand its size rather than joining the sales expansion rat race. However,
the bigger question was how to achieve category normalisation? The team was wondering
what learning can be drawn from the sanitary napkin category success? Or whether it was at
all possible to do to the sexual well-being (male contraceptive) category what has been
achieved in case of sanitary napkin category? If yes, how should one go about doing it?

Sexual well-being, Sex Education and Contraceptives: Indian Realities
India being the second most populous country in the world with a population of over 125
crores, it would not be incorrect to say that there is a lot of sexual activity in India making it

a natural and huge market for products in contraceptive and sexual well-being category.
However, the socio-cultural realities of India forbid a more explicit approach to sex and sex
education since ancient times and nobody is willing to talk about it explicitly. Though sex is a
basic biological need, discussion on sex and sexual well-being is still absent within the
community. Even between parents and kids, the passing down of knowledge related to safe
sex and sexual well-being is virtually absent. So, the only source of information to which
people in India fall back on is the internet. However, not only is access to the internet
limited, most of the content available on the net is not really educational. As compared to
other developed and developing nations the mean age at which an individual experiences
the first sexual activity as well as sex education, still rate high for India (See exhibit 1 & 2).
With the mean age of the first sexual activity in India fast dropping, in comparison to the
rest of the world, and the impetus of government's policy to encourage small families, India
becomes an important market for birth control, family planning measures and sexual well-
being category.
The most effective modern contraceptive methods include sterilization by means of
vasectomy in males and tubal ligation in females, intrauterine devices (IUDs) and
implantable contraceptives. This is closely followed by a number of hormonal contraceptives
which include oral pills, patches, vaginal rings, and injections. Other methods comprise of
barriers like condoms, diaphragms and contraceptive sponge and fertility awareness
methods. Sterilization, while highly effective, is not generally reversible whereas other
methods are. Emergency contraceptives are able to prevent pregnancy in the few days after
unprotected sex. Low female literacy levels and the lack of widespread availability of birth-
control methods are also hindering the usage of contraception in India.
In recent times HIV/AIDS has emerged as a major health challenge. The National AIDS
Control Organization estimated that 2.39 million people lived with HIV/AIDS in India in 2008-
09. About 35% of reported HIV cases are below 29 years which implies that youth are
especially vulnerable to HIV. 85% of all HIV infections occur due to unprotected sexual
intercourse. The risk multiplies when one indulges in sexual intercourse with multiple
partners without using a condom.1

http://mhupa.gov.in/AIDS_CENTRE/page3.htm

All the methods detailed above are used for birth control, however condoms are seen to be
the only and most effective tool in preventing / controlling STDs/HIV/AIDS amongst the
population (both male and female). Though various studies and reports suggested that the
awareness of contraception is reasonably high amongst the married population in India, a
vast majority of married Indians have reported significant problems in assessing which
contraceptive methods to use.
Nearly half of married women were estimated to use a contraceptive method. About three-
fourths of these used female sterilization, which is by far the most prevalent birth-control
method in India. Condoms, at a mere 5% penetration were the second most prevalent
method as per a recent NFHS survey (exhibit- 3). In comparison, other BRIC countries are at
10% condom penetration and Europe is at 30%.
Another alarming statistic suggests that about 52% of the married population in India are
not using a modern birth control method. This is despite the fact that birth control use in
developing countries has decreased the number of maternal deaths by 40%. One big reason
for low use of modern contraception methods is a lack of awareness/education among the
potential users. This deficiency of awareness/education is not only limited to the usage
procedure of contraceptives but also its usage benefits in (a) maintaining the appropriate
time gap between pregnancies; (b) birth control as a measure to improve adult women's
delivery outcomes and (c) the survival of their children. In the developing world women's
earnings, assets, weight, and their children's schooling and health can all improve with
greater access to birth control measures. Birth control also enhances economic growth
because of fewer dependent children, more women participating in the workforce, and less
consumption of scarce resources. Thus to achieve effective birth control proper usage of
contraceptives is a must.

Condom Market in India
In India, condom usage was not part of the culture before the AIDS epidemic. This is despite
attempts made to promote the use of contraceptives as a tool for family planning in the
country, which was largely driven by the government through awareness creation programs.
The use of condoms has been slow in receiving acceptance. Even though condoms are
widely available, its penetration in India is only about 5% which reflects the stigma attached

to the purchase of the product. Over time, many national and international brands have
forayed into the Indian condom market but none of them have been able to achieve a
substantial increase in category sales. Also regional disparity is observed in the usage of
condoms within the country (Exhibit-4, 5, & 6).
It has been a prevalent perception amongst men (and women too) that the use of condoms
interferes with pleasure during sex, though much has been done to overcome this in the recent
past by making various product innovations and improvisations. In pursuit of fighting this
perception, brands in this category have been trying to come up with product innovations

like thin Condoms, stimulating condoms, flavoured condoms etc.

Durex has a low market share of 4%, however the brand team is confident about the future
of the brand and believes that there is a need to change the perception of the category. For
this reason, the brand team commissioned a market study to understand major challenges
hindering the acceptance of condoms in India. The findings gave some insight into the
challenges faced.

The Study Findings

Shopper embarrassment/Hesitation
Despite the prevalence of sexually transmitted diseases and unwanted pregnancies, many
young people in India are hesitant to buy condoms because they are simply too
embarrassed. It has been observed that men report less embarrassment than woman, but
both sexes kept an eye out for other customers while buying condoms and some of them
even waited for other customers to leave. Fear of damage to social reputation by buying
condoms is considered a major reason. Customers reported that they would not buy from
local chemists until they get married and go to a far away retailer for fear of being judged.
Married couples are also of the view that sex is a private family matter making them shy of
asking for condoms (Exhibit-7 & 8).

Stocking and display of condoms in retail environment
The lack of widely available condom stocking retail outlets outside of conventional family
planning services supported by the government or the mom and pop stores/chemist shops,
was identified as a major barrier to safe sex between male clients and female sex workers.

Retailers are often hesitant to display condoms in their shops which makes it more
challenging for a customer to even ask for the product (Exhibit 9 & 10).
While comparing it to similar categories, like sanitary napkins, which are not purchased
freely due to embarrassment/hesitation, the category under-trades severely in the modern
trade environment that allows self- selection, brand choice, and shopping without being
judged (Exhibit 11). Though modern trade have agreed to display the category, customers
are reluctant to pick up and bill the same.

Sex Education
In an era where we talk about imparting sex education to school students right from their
primary classes, it is rather shocking to note parents are still reluctant to discuss anything
relating to sex with their children, especially teenage daughters. 90% of respondents felt that
they cannot have an open dialogue on topics related to sex with their kids/parents, even when 67%
felt discussion on the same should be encouraged (Exhibit 12 & 13). With the advent of the

internet and social networking websites, adolescents and teenagers are more likely to
engage in unprotected sex. Even Government statistics indicate that 40% of new sexually
transmitted infections are in the age group of 15-29 years, which makes it even more
important for the parents to impart sex education to their children.

Self Regulating Media
Though Advertisements/Movies with overtly sexual cues are visible across categories,
various self-imposed regulations come in to play when it comes to advertisement of
condoms. Most of the media houses have self regulation due to which condom
advertisements are restricted to either late prime time shows or not allowed at all. In such a
regulated environment it becomes difficult for condom manufacturers to promote or
educate customers regarding the product (Exhibit 14). This coupled with a reluctance in
visible point-of-purchase display at the retail end severely restricts brand makers from using
mass communication tools to promote the category or the brand.
Considering these challenges, the brand marketing team is now posed with the question of
how to normalize the sexual well-being category in India where the retailer possesses a lot
of power to manage brand switch based on margins & trade spends.

The Road Ahead

In view of the above facts and the prevalent category dynamics, the brand team is faced
with a host of questions. Some of the significant ones are:
1. Perception of Indian consumers regarding condoms In the Indian context there is
still a stigma associated with condoms and people are hesitant to talk openly about
the same. How can the brand team change this perception and normalise the
category just as it happened in the case of sanitary napkins?
2. Communication Regarding Condoms: Given the regulations and the taboo attached
to condoms the communication by companies to the end user is not distinct and
clear. How can an effective communication strategy be developed to help the brand
achieve its goal of category normalisation?
3. Uncooperative Media Houses: Most TV channels are averse to airing condom ads
and those that do usually allot late prime time slots. What kind of a strategy can be
devised to get media channels on board to achieve brand communication goals?
4. Lack of proper stocking and display of these items in retail outlets: Most retail
outlets are hesitant to stock condoms and even when they do, it is normally kept out
of sight making it even more difficult for customers to make the purchase. What are
the actions that can be taken to promote the channel acceptance of the brand for
both display and sales facilitation and how does it impact brand preference?
5. Lack of availability in modern retail channels: Most modern channels, where the
customer selects items through self-service, dont stock condoms hence making it
difficult for customers to procure them. How can the modern format be exploited to
the categorys advantage?
6. Sensitivity towards perception of other customers shopping in the store: Most
customers feel that other customers in the store look down upon them if they
purchase condoms so it further hinders their shopping process. How can the
perception be changed?
7. Leveraging Digital Media: We are aware that mobile and internet penetration in
India is rapidly growing. Hence the challenge for the brand is how to leverage this
changing trend to impart sex education and awareness regarding condoms amongst
the target group for the sexual well-being (male contraceptive) category.

Exhibit- 1 Global census showing mean age at first formal sex education

Exhibit- 2 Global census showing mean age at first sex

Exhibit- 3 Penetration of contraceptives in India

NFHS-1

NHFS-2

NHFS-3

(1992-93)

(1998-99)

(2005-06)

Female Sterilization

27%

34%

37%

Male Sterilization

4%

2%

1%

Pills

1%

2%

3%

IUDs

2%

2%

2%

Condom

2%

3%

5%

No Modern Method

64%

57%

52%

Total

100%

100%

100%

Method

Exhibit- 4: Overall market share of different Leading brands in India (Source: Brand Marketing
Team Survey)

Brands

2011

2012

Durex

3%

4%

Kohinoor

15%

16%

Manforce

23%

24%

Kamasutra

11%

11%

Moods

9%

10%

Skore

0%

0%

Exhibit- 5: Region wise market share of different Leading brands in India (Source: Brand Marketing
Team Survey)

Region

North

East

Brands

2011

2012

Region

Brands

2011

2012

Durex

3%

4%

Durex

4%

5%

Kohinoor

12%

12%

Kohinoor

21%

22%

Manforce

31%

31%

Manforce

1%

1%

Kamasutra

8%

8%

Kamasutra

26%

24%

Moods

8%

9%

Moods

21%

24%

Skore

0%

0%

Skore

0%

0%

Durex

1%

1%

Durex

5%

5%

Kohinoor

13%

13%

Kohinoor

19%

20%

Manforce

21%

25%

Manforce

23%

24%

Kamasutra

10%

10%

Kamasutra

10%

10%

Moods

8%

10%

Moods

5%

6%

Skore

0%

0%

Skore

0%

0%

South

West

Exhibit-6 Value Take off (Source: Brand Marketing Team Survey)

Region

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Q2'13

India

1,720,302

1,750,391

1,831,900

1,841,551

1,859,742

1,919,498

North

760,762

758,421

795,406

807,281

854,605

875,295

East

239,517

253,683

250,905

247,987

249,746

258,725

West

476,632

480,689

522,407

519,168

501,104

542,444

South

243,391

257,599

263,182

267,116

254,287

243,034

10

Exhibit- 7: Education Profile of the people hesitating to buy from nearest chemist (Source: Brand
Marketing Team Survey)

Exhibit- 8: Marital Status of the people hesitating to buy from nearest chemist (Source: Brand
Marketing Team Survey)

Exhibit- 9: Photo depicting stocking of condoms at a chemist store (clicked during the survey)

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Exhibit- 10: Penetration of condoms in grocery store in different region (Source: Brand Marketing
Team Survey)

Challenges in Grocer Environment

70%

50%

30%

60%

67%

60%

40%
20%
10%
0%

17%

13%
0%

0%

Stocking %

Visibility %

Delhi NCR

Indore

Lucknow

Exhibit- 11: Modern trades contribution to total sales within category (Source: Brand Marketing
Team Survey)

12.0%
10.0%
8.0%
6.0%
4.0%
2.0%

11.3%

11.4%

6.5%

7.0%

7.5%

1.2%

1.2%

1.2%

2010

2011

2012

10.4%

0.0%
Sanitary Napkins

Condoms

FMCG

Exhibit: 12: Hesitation in discussing sex and related topics (Source: Brand Marketing Team Survey)

12

Exhibit- 13 Hesitation in discussing sex and related topics (Source: Brand Marketing Team Survey)

Exhibit-14: Advertisement and clicks from movies (collected from various websites)

13

Annexure-1 Verbatim on promiscuity among married from Lucknow (Source: Brand Marketing
Team Ethnography Study)

While sex is seen and talked about as taboo, a verbatim on

promiscuity among married from Lucknow shows a very
different picture
I am 36 years old and I am having sex with a young girl. That
I have sex with my girlfriends, only If there is a
connection, i.e., she is attracted to me, and so am I, then
we go ahead
Ethnography_Lucknow_Established
relationship_A2B1

We talk about our affairs among friends, but not

among married people, so that the information
doesnt reach my home. Before marriage, we used to
talk a lot about these things but then also we would
keep in mind that it shouldnt reach our home. Now
its more important that it shouldnt reach my wife, not
even if someone is joking.
Ethno_Lucknow_Established relationship_A2B1

When the legal partner refuses, then we

need to go out for it.
FGD_Lucknow_Established
relationship_A2B1

is great sex for me, she is my girlfriend. Clandestine affairs are

same. It is an achievement for me to date such young girls at
this age, so this is great sex for me. Everyone is jealous of
me.
FGD_Lucknow_Established relationship_A2B1
As we grow older we look for young girls
FGD_Lucknow_Established
relationship_A2B1

If my girlfriends demands increase, and I cant

fulfill them, then the chance of the relationship
ending increases
Ethnography_Lucknow_Established
relationship_A2B1
If I want to have sex, and my wife doesnt then I
go out at night, even after 10 pm, to have sex
with my girlfriends
Ethnography_Lucknow_Established
relationship_A2B1

With girlfriends we can experiment more.

FGD_Lucknow_Established
relationship_A2B1

If we cant have sex at home, then we will

see where can we find action.
FGD_Lucknow_Established
relationship_A2B1

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