CONDOM INDUSTRY

BY:
PARASHAR MOHIT
12332872
RAMPURIA MAYANK
12336093
NARAYAN RAHUL 12882883
 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
 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
ABOUT CONDOM
 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

 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 {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

 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

 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

http://www.buzzle.com/editorials/11-3-2004-61134.asp)
 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.
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
INDUSTRIAL
ANALYSIS
 Market Leaders & Players

Major Players :- Crown, Okamoto, Durex , Lifestyles, Trojan

Others….
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
http://www.reportlinker.com/p090642/World-Condoms-Market.html
 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%
 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.

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
 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.
http://www.iolhivaids.co.za/index.php?fSectionId=1591&fArticleId=4718424
 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.

 COMPETETIVE
ENVIRONMENT OF
INDUSTRY
 Marketing Mix
Products

Condoms: types
Male or female condom
Color, Flavor, Size
Thickness , Safety
Material used (latex& polyurethane, Polyisoprene)
 Place

Products can purchase through:

• Home Delivery- with Fast Delivery

• Online stores
• Hospitals
• Super markets & hyper malls
• Sex shops
• Medical stores
• Hotels & Resorts
 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®
 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.
 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
 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
 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
 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.
 Competitive analysis

Note: Ansell’s Lifestyle, SSL’s Durex, Okamoto’s Crown.

Yaz is contraceptive medicine
 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
attract more consumer. Social, cultural and traditional
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)
 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).
 KEY SUCCESS FACTORS

Quality control
Creating awareness
Variety & Innovations
Brand image
Excellent distribution channels
Market availability
Society and government support
Future Trends and Projections
Future market potential
Results of not using CONDOM
Thank You