Durex Featherlite Market Analysis Essay Example
Durex Featherlite Market Analysis Essay Example

Durex Featherlite Market Analysis Essay Example

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  • Pages: 15 (3941 words)
  • Published: October 22, 2017
  • Type: Analysis
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Executive Summary This report provides a detailed analysis of Durex featherlite condoms as a standalone product within the ultrathin condom market. The target market of featherlite condoms is a sexually active male gay or heterosexual orientated individual that are aged between 14 – 40 years old. They must also live in the Australian Area and have been educated in the practise of safe sex, with their buying habits of purchasing ultra thin condoms to improve the sensation of sex. The issues identified in this report are: 1.Increasing general consumer awareness of Featherlite Intense.

2. Increasing business to customer service through online channels. 3. How to create a competitive advantage with strategic alliance between Durex and Starpharma. 4. Lowering inconsistent quality if featherlite condoms.

These points are clearly analysed within the report by breaking down Featherlite’s Target Market, Global Market, Con

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dom Industry Forces, Competitor Analysis, SWOT analysis, and Human Resource Management.Finally the last section “Implementation” gives these recommendations to overcome these issues: 1. Increase Australian advertising through radio, billboards and television to increase consumer awareness. 2. Provide direct opportunities for consumers within the durex’s website to purchase condoms to increase business to customer services. 3.

Diversify the target market of durex to include women that purchase or use the play range and educate consumers about the benefits of viva-gel compared to normal lubricated condoms through the durex network. 4. dan ? What is the issueThe product chosen for analysis in this report is the Fetherlite Intense condom manufactured by Durex which is a subsidiary company of SSL International. Fetherlite Intense has been chosen for detailed analysis to create a better understanding of the function and purpos

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of the product. Furthermore investigating how the Fetherlite Intense condom is set apart from the fierce competition within the condom market, we will investigate how well the product functions compared to other similar products.

SSL International is the world’s major condom manufacturer offering the public ts Durex brand range of condoms. Durex brand condoms are sold in more than 150 countries throughout the world, out of these 150 countries it is the market leader in 40 of these counties. This accounts Durex for twenty six percent of the worlds four billion condom market making it the number one brand in the world. In this report a detailed analysis will be performed on the Fetherlite Intense product. A review will be performed on the products competitors, industry analysis will performed as this is good means of determining marketing strategies and trends occurring in the market.Whilst also taking into consideration the strengths and weaknesses that come from comparing the Fetherlite Intense product to competitors in the market.

Through the advances in technology competition has remained a strong part of the condom manufacturing industry as producers are continually trying to maintain competitive advantages over their competition. As technology is changing ever so rapidly condom producers are continually trying to meet the needs of consumers offering innovative ideas. One of these innovative ideas that Durex is currently offering is in the Fetherlite Intense product, ‘the Worlds Thinnest Condom.With these new innovative ideas comes the issue of product quality, Durex puts all of their condoms through a four step quality testing process which ensures the safety and durability of condoms manufactured by Durex. ? Customer and Market Analysis Featherlite Customer

Demographics The featherlite customer demographics is a sexually active male gay or heterosexual orientated that is aged between the age of 14 – 40 (Johnson, 2002).

They must also live in the Australian Area and have been education in the practise of safe sex, with their buying habits of purchasing ultra thin condoms to improve the sensation of sex (u, 2006).Buying Habits % of Condoms •Vendor machines 8% (Trading, 2006) •Free Distribution 30% (Trading, 2006) •Retailers and Wholesalers (online and over the counter) 62% (Trading, 2006) oSupermarkets oPharmacies and drug stores oConnivance stores and garage forecourts oOnline Why customers want to use featherlite condoms •Practise safe sex •Increase sensation during sex to regular condoms while still receiving the protection a condom offers. Business to Business and Business to Customer Market Resellers online provide featherlite condoms, with limited purchase options to buy from durex unless you are a business.With many durex products available on the net and in retail stores one can assume there is a prominent business to business market.

Businesses to Customer markets do exist outside of Australia (Durex, 2000). For example in the UK where durex originated durex thrives on this Business to Customer Market. With durex identifying that its website to be the main communication channel to consumers (Durex, 2000). With durex being a subsidiary company of SSL who is a UK based company (Datamonitor, SSL, 2008). SSL currently control 30% of condom sales globally (Datamonitor, SSL, 2008).Selling into 100 countries, with retail sales in 2005 reaching $3.

2 billion (Datamonitor, SSL, 2008). Durex has been in the Australian market since 2000, and is currently available for purchase across Australia (Durex, 2000).

Trends in the condom market is growing consistently each year. This is proven by a 4. 6% increase in sales by durex through continued expansion of the play range and further growth of condom sales (Datamonitor, SSL, 2008).

The usage of condoms is increasing each year as well, with education programs targeted at men and women. But the usage of condoms among gay men is decreasing with a predicted in 2015 73. % infection rate among gay men in Victoria alone (Medew, 2008). Advertising The marketing of the featherlite brand is never done singularly. Durex advertiser it’s condom within certain ranges.

As stated before the play range increased sales by 4. 6%. The easy on range is where featherlite was introduced. The promotion of the easy on range was done through TV based advertising in 2002 (Johnson, 2002).

Durex’s objective for this campaign was to increase customer awareness of the easy on range and promote the durex website. The campaign was successful in increasing customer awareness of durex from 44% to 70% (Johnson, 2002).This was the first time that Durex had used a visual TV medium. Another major part of Durex Advertising is the social marketing aspects.

Durex actively supports the education and practise of safe sex. This is through the “Durex Network” and “Horah Preservations” (SSL, 2000). The Durex Network promotes and supports projects such as the “dance 4 life” which works in collaboration with the World AIDS campaign (SSL, 2000). The support for HIV prevention promotes a social responsibility of the company, while providing brand recognition within the event and hitting the target market demographic between the ages of 16 – 25.Global Condom

Market The marketplace within the condom industry is growing each year.

With condoms being the only contraceptive for men, it accepted and practical contraceptive available. But one of the startling global trends is the increase of unplanned pregnancy among teenage women. Lifestyle trends within the market place has changed compared to 10 years ago, with population being sexually open. With things such as the increase of HIV infection among gay men. Research has also shown that men on average are having sex 114 times per compared to woman at 110 times per year.Age population demographics are increasing each year within the global market, with pensioners outnumbering the younger generation 2 to 1.

Legislation within the global condom market is the ISO standard 4074, this sets the standard for condoms internationally which is met by feartherlite condoms. Technological breakthrough such as the introduction of the microbead viva –gel with durex condoms. This new gel comes from the agreement between SSL international and Stapharme. Durex development program will be coating condoms with this new microbead lubraiations. Porters 5 forces KSF - Key Success FactorsDurex stands for DUrability, Relability, and EXcellence these are the key success factors for durex condoms.

With regards to manufacturing, Durex already has many manufacturing plants around the world, these are situated in India, Spain and Thailand. Durex provides direct distribution to internet sites for greater market spread and greater distribution. Durex also enjoys economies of scale, it has huge manufacturing plants in three countries, it orders huge amounts of raw materials which in turn lowers down the actual price. This gives durex a huge advantage and profit margin for its products.

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Driving ForcesWith the emergence of online pharmacies and online portals to purchase condoms, there is huge potential for money to be made. Durex has made use of this opportunity and allows online pharmacies to purchase direct from Durex and distribute to customers. Changes in cost and efficiency are a major driving factors in condom sales. All condom users expect and need the greatest efficiency with their product they expect this all at a relative cost.

Within the condom industry there isn’t much entry or exit, as most firms are established and are either plastic or rubber companies, who branch out into condom sales, e. Ansell Limited or Durex being a brand of SSL. There is only one new entrant which is Sax Ultra Thin Condoms. With regards to other products being available to completely protect users from STI’s condoms are still number one.

Due to this condom lightness and thinness it has become a major factor in the condom market. Durex featherlite is one of the market leaders in thin condoms. Industry Competitors According to www. undercovercondoms. com which conducts surveys from its users, in the top 10 most popular condoms featherlite condoms are not in the top 10.

Though other thin latex condoms made by durex are in the top 10. Durex’ main competitors in for ultra- thin condoms (56mm thick) is Ansell Life styles Ultra Thin, Ansell Life Styles Ultra Thin Platinum, Sheer Thin Bare Skin, Manix Ultra Thin, Ansell Contempo Nuda, Durex Natural Feel, Four Seasons Nude and Sax Ultra Thin. With regards to competition and its fierceness it is very limited for new entrants into the condom industry. New Entrants Sax Ultra

Thin condoms Suppliers Buying power of latex is vast considering having global sales of condoms of $31 million in 2005.With new innovations in the internet, suppliers who buy directly from Durex, are distributing directly from their own internet sites. This is reducing a huge amount of their cost & increasing their profits.

Though suppliers still constantly bargain for cheaper prices from Durex itself. Customers Sex always sells. With regards to the cost of condoms, their prices have not risen a great deal in the last few years. Since condoms are the only contraceptive to protect users from spread of HIV, STI’s & STD’s buyers are still willing to pay the prices which are dictated by outlet stores.

SubstitutesThere are many substitute products for condoms, but again as mentioned above condoms are the only product which entirely protect the user from the spread of HIV, STI’s & STD’s. There is also the female condom, and the Reality Female Condom is on the top 10 of condoms rated by www. undercovercondom. com. Even though there are good ratings for these condoms, in the overall they are more of a product for users who are in a relationship. Male condom sales will not reduce drastically as they are easily purchased and much more widely available than female condoms.

Analysis of the CompetitorsThe competition is global, as the two competitor brands Ansell & Church and Dwight CO. , INC. are available overseas and are widely used in their specific countries. Competitors that are publicly owned must publish their annual reports to shareholders once a year. Both of the competitors being looked at trade publicly on the stock market, and

therefore information on their products & services are widely available. Comparison of revenues & profits SSL’s overall revenue in 2007 was $924 million, which was an increase 5.

7% over 2006 (Datamonitor, SSL, 2008). Ansell’s revenue in 2007 was approximately $1248. million which was an increase of 8. 4% over 2006 (Datamonitor, Ansell limited, 2008). Our second competitor is Church and Dwight CO.

, INC. Their revenue for 2007 was $2,220. 9 million which was a 14% increase on the previous year (Co. , 2007). The overall profit for Church and Dwight CO. , INC.

was $169 million which was a 19% increase on their 2006 earnings (Co. , 2007). The overall profit of SSL for 2007 was $100. 6 million and for Ansell it was $100 million (Datamonitor, SSL, 2008; Datamonitor, Ansell limited, 2008).

Market Share In respect to ultra thin condoms, each of the competitors also produce a similar product.SSLs main product is the featherlite intense condom, whilst Ansells condom is known as the Ansell Lifestyle Ultra Thin. Church and Dwight CO’s product is called Trojan Ultra Thin. Because we have taken out products from the global market, their exact market share is hard to determine as each is dominant in their own specific region. Geographic Scope Ansell has a huge share of the Australian market as it is an Australian company (Datamonitor, Ansell limited, 2008).

It has also branched out to market it condoms worldwide, and can now be found in Asia, Europe and New Zealand. Church and Dwight CO. , INC. s a major condom supplier in the global market, focusing on the American, European and a small portion of the

Asian market (Co. , 2007). SSL controlling a huge share of the global market, is available in 90% of countries worldwide.

Product features All three of the companies are very similar with regards to the price of their Ultra Thin condoms. As ultra thin condoms are very new to the market the companies need to keep a competitive price as their overall quality is more or less the same. All three products have the same goal in mind, they aim to give the consumer the utmost satisfaction, with the utmost protection available.Distribution Channels The distribution channels of all three condoms fall into vending machines, free distribution, retailers and wholesaler which includes online and over the counter.

In respect to retailers it means supermarkets, pharmacies, convenient stores and vending machines. In summary the two competitors chosen for our analysis are very similar due to the fact that each condom company must meet an ISO standard, ensuring their overall quality resulting in similar features, therefore making it very difficult for a competitor to gain an advantage. SWOT StrengthsOne of the major attributes of the Fetherlite Intense product is that it has a very high brand name recognition as it is the world’s number one condom brand. Another major innovation by Durex which is also a feature in Fetherlite Intense product is the provided lubrication within the package. The Durex.

com web site plays a key role in enabling the company to communicate with young adults across the globe and provide them with safer sex information in their own language. Durex also provides the option of selling in bulk to internet sites to increase its market spread and

increase its distribution outside the United Kingdom.Durex constantly supports non for profit organisations that focus on the education and prevention HIV throughout the world. Weaknesses A problem with the Fetherlite Intense product is the inconsistency of the durability of the condom. The Durex brand is not as common in Australia as it is in its infancy within the Australian condom market.

Opportunities Support of the Durex network through events such as dance for life, creates opportunities for Durex generating future revenues. It also supports the HIV prevention which inturns promotes social reasonability of the company while providing brand recognition within the events.Threats Due to the constant need for companies to have the competitive edge Fetherlite Intense is struggling to become a major market leader within Australia. Trends of condom use within gay communities are decreasing steadily.

With a decline for condom use within societies consumers are looking for alternatives such as female contraceptive pill. Strategic Human Resources Management In terms of staffing for sales, service and information technology the durex brand has sufficient staff at this time due to current financial targets and business performance being achieved.The business has a strong commitment to human resource planning, which includes competencies for the position required which are evaluated based upon the needs of the position and the business. The company has a highly selective and intensive recruitment policy, also a comprehensive orientation program with a strong emphasis on the vision values and key performance indicators of the organisation.

There is a comprehensive staff training program with a career pathway demonstrated for the people who perform and continue to grow professionally within the company.The Durex product can be

sold through a number of distribution channels such as large retailers, grocery stores, petrol stations, and vending machines. This means that Durex does not have to employ people to sell their product directly to the consumer, but via the distribution channels. The staff involved has to be part of a dedicated integrated sales team, which report through a professional management structure which follows the leadership and strategic direction as set by the Board. The human resource strategy is one of the key strategic issues of the organisation and becomes part of the organisational culture.The business has strong human resource policies and procedures within the organisation, which covers the legislative requirements and ensures Durex is a preferred employer of choice for all leading professionals within the market place.

Also, Durex use channels such as the internet and sales representatives to ensure that the Durex label will be presented professionally and competitively. When it comes to the production line, staff are eager to retain their job and work hard. This is because the production lines for Durex are in mostly developing countries or nations with high unemployment rates such as, Thailand, India, and Spain.This results in the most suited people being chosen for the job, and more that likely keeping it for an extended period of time. Currently Durex’s management team is sufficient for strategic success and no problems with leadership are present. Durex earlier increased product development by 25% with the new ‘play-range’ of condoms resulting in prolonged sustainable growth.

However, Durex made some controversial decisions about relocating divisions of labour, only to increase the profitability of the company.However, Chief Executive Garry Watts believes that leadership

is strong enough to continue growth trends “We have a strong management team in place and morale throughout the Group is high; we are confident that further good progress will be made in the current year (Garry Watts). ”SSL have been successful in their ability to recruit new highly qualified staff. This can be seen from the chairman who was recently appointed by SSL, Gerald Corbett.

With all his experience prior to SSL with prominent figures such as Woolworths Group plc he is certainly an indicator of a good recruit regime within SSL. Implementation Items / Plans Problem and solution 1 Fetherlite Intense is not common throughout the various condom ranges within Australia. Advertising campaigns such as: radio, billboard and television advertising need to be introduced to create this public awareness to further boost profits. As Fetherlite Intense is a product of Durex it has the resources behind it to create such a campaign. Currently Fetherlite Intense is promoting itself as the ‘Worlds Thinnest Condom’ as it only just meets the current ISO standards whilst providing durability.

This is one area which the product has been successful in leveraging its strengths Fetherlite Intense can optimise their opportunities by further marketing within its Durex network this inturn promoting the product. Subsequently if Fetherlite Intense maintains the product affordability in a flow on effect brand development will continue to flourish. Fetherlite Intense gives value to the customer by offering protection and reliability whilst also enhancing pleasure to the customer. Currently Fetherlite Intense is behind the competition as it is not doing such advertising that further promotes the product.If successful in promoting it to the wider community within Australia

Fetherlite Intense has the potential to become the markets number one product. Problem and Solution 2 (ash) Durex needs to become business to customer through durex.

com offering products for sale which in order will boost sales. Even though durex's website is very informative and provides great services for the user, if it was able to provide direct opportunities for users to buy products online it would increase the business to customer relations. Unfortunately only at this present time, durex sells products directly to other online portals to sell their products in bulk.With regards to featherlite condoms, the ability for users to buy directly would boost Durex's profits and overall market share, and its capability to reach those customers who are unaware of the online stores to buy Durex products. Problem and Solution 3 The recent co-development agreement between Starpharma and Durex creates opportunities for durex for creating a competitive advantage through the durex play range.

This agreement is the framework for a commercial licence between both companies for co-development program for coating condoms with vivagel. This can be seen in Appendix 1.Durex needs to diversify its target market for this product to be successful. Diversifying to women as well, as well as supporting the target market of men.

This will not be hard with the recent introduction of the play range. The first step would be market research. Analyse of the current market of the play range needs to be implemented with these key factors in mind: •Demographics of women who use the play range. •Feeling of consumers of just using the gel without condoms.

•Would women/men buy the condoms if it contained viva-gel

over normal lubricated condoms? •What type of men/women would use it (Married, Single).Current data and trends will not be hard to obtain with “sex surveys” being conducted each year internally by durex. After demographic data has been analysed it needs to be correlated with the new business objectives: •To incorporate viva-gel coating to all condoms to enhance female and male sex lives, by giving peace of mind. •Introduce the viva-gel as a standalone product or with condoms depending on the clinical trials and target market response. Depending on the time frame of viva-gel production availability, promotion of the product cannot start.

The key strategy to introducing this new gel is the education of the consumer.Apart from the normal TV mediums and paperback advertising. Incorporating the new gel into social marketing events through the durex network, such as “dance 4 life”. Would help promote consumer education and target market response to the product.

The vital point of the advertising campaign is spelling out the key difference between viva-gel condoms compared with ordinary condoms to educate the audience. These tactics will ensure the customer fully understands that using durex condoms coated with viva-gel will provide double the protection and is superior to other lubricated condoms.However one of the major weaknesses is that consumers might not fully accept the product straight away without the beneficial medical evidence. This is where independent medical studies need to be done to promote the viva gel. If consumer reaction to the product is slow this will ultimately diminish the competitive advantage, allowing for other companies to react promptly. Overall the introduction of viva-gel condoms would start with one condom range and be

slowly introduced into all condoms depending on the clinical trials.

Durex will still offer normally lubricated condoms as some people might have allergic reaction to this new gel.Overall the timing of this product solely lies with starpharma clinical trials and results ? Works Cited Co. , C. &. (2007).

Annual Report. New York: MarketWatch. Datamonitor. (2008).

Ansell limited. New York: DataMonitor. Datamonitor. (2008). SSL.

New York: Datamonitor. Durex. (2000, December 01). Home. Retrieved June 23, 2008, from Durex. com.

uk: http://www. durexworld. com/en-GB/Pages/default. aspx Johnson, H. (2002, January 01). Durex case study.

Retrieved June 28, 2008, from The chartered institute of marketing: http://www. cim. co. k/mediastore/campaigns/brandpower/durex. pdf Medew, J. (2008, March 3).

State's gay men face HIV surge. Melbourne, Victoria, Australia: The Age. SSL. (2000, January 01). Social Marketing. Retrieved June 20, 2008, from SSL international plc: http://www.

ssl-international. com/Responsibility/Social/Pages/default. aspx Trading, O. O.

(2006). Condoms. LRC products limited. London: Office of fair trading. u, A. a.

(2006, January 01). Featherlite condoms. Retrieved June 23, 2008, from Allbout condoms 4 u. : http://www.

all-about-condoms-4-u. com/featherlite-condoms. html

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