To Research the Possible Concern Chance of Rubber Fabrication of a Novelty Condom Essay Example

and girls. Many women lack adequate understanding about sexual and reproductive health and are unaware of the potential risks associated with their own or their partners' sexual behavior.

Many individuals in South Africa are aware of their exposure to STIs but lack the ability to protect themselves. The prevalence of STIs in the country varies depending on the type, estimated to range from 5% to over 30% in different population sub-groups and areas (source: ASSA and Quantec Database). It is important to note that STIs not only cause illness and disability but also increase the risk of HIV transmission during sexual intercourse due to inflammation and ulceration.

In South Africa, male condoms can be easily obtained through public sector programs as well as retail stores. The private sector offers a wide range of condom products, including various sizes and options tailored to user preferences such as taste, color, and texture (Our target market: Novel Condom User).

Compared to male circumcision, female condoms have more notable drawbacks. Studies have shown that male circumcision decreases the risk of HIV transmission. Nevertheless, it is crucial to acknowledge that depending solely on circumcision as a means of preventing HIV transmission is not advisable. There is worry that misconceptions about the link between male circumcision and HIV transmission may result in its substitution for condom use. Furthermore, manufacturing condoms necessitates both financial resources and manpower.

The manual sampling and testing of rubber batches is an essential part of the manufacturing process. In Thailand, a major exporter of rubber, it has been observed that young women are particularly skilled at this job due to its demanding nature, precision requirements, and need for speed and dexterity.

Currently, local rubber factories employ an average of 100 workers. Therefore, establishing a new rubber manufacturing facility could potentially provide employment opportunities for approximately 100 semi-skilled young women. On the other hand, if a male-run rubber manufacturing facility were to be established in Thailand, certain inputs would be necessary. Unlike South Africa where there are mandatory regulations governing the production and testing of rubber, such regulations do not exist in Thailand.

The Department of Health indirectly regulates the rubber industry by mandating that all male rubbers in the public sector meet specifications outlined by the World Health Organisation. These specifications encompass design, performance, packaging, material safety, shelf life, and other attributes. Public sector rubbers, regardless of their origin, must undergo testing and approval from the South African Bureau of Standards (SABS). Manufacturers outside of the public sector have the option to seek a "standardization mark" from SABS as evidence of adherence to their criteria. Adherence to these requirements is voluntary rather than obligatory.

Currently, there are no other products exclusively designed for men to provide protection against STIs, HIV, and pregnancy. The primary preventive measure for men continues to be the male condom. Nevertheless, newer variations of male condoms have been invented, including synthetic non-latex condoms manufactured from materials such as polyurethane and SEBS.

These condoms possess a lengthier shelf life and can be used with oil-based lubricants, making them appropriate for men who have latex allergies or sensitivities. However, these items face challenges in terms of accessibility in South Africa due to competition from both domestic and international manufacturers.

Data obtained from the South African Bureau of Standards (SABS) suggests that India, China, and Malaysia are the primary

competing countries regarding foreign-manufactured condoms accessible in South Africa.

The above analysis provides an understanding of the factors that will determine the success or failure of the business. It includes identifying potential strengths and weaknesses within the company, as well as external opportunities and threats. In South Africa's male rubber manufacturing industry, a new entrant would face strong competition from a limited number of companies in this market. They would also have to compete with foreign manufacturers who can achieve cost competitiveness through economies of scale, cheaper labor, and easy access to raw materials.

Securing a contract with the Department of Health is crucial for any operation in this market. Failing to do so would jeopardize the viability of the business. Additionally, manufacturers need to demonstrate their existing capacity, which poses a potential risk to their facility without certainty of securing this major customer.

To succeed in the retail environment, it is necessary to compete against well-established brands like Durex and Lifestyle.

South Africa imports both male and female rubbers, primarily from three latex rubber producing countries. The table below illustrates the imports from these countries. Additionally, South Africa also sources rubbers from other nations including the UK, Thailand, Germany, and Korea. The public sector is the main supplier of rubbers in South Africa. In 2006, around 428 million male rubbers were distributed through public sector channels while retail establishments sold only 36 million units.

During the economic recession, condom sales in the United States have experienced a rise as financially constrained Americans opt to stay at home. While purchases of cars and designer clothes have declined, condom sales have increased by 5% in the fourth quarter of 2008 and

by 6% in January compared to the previous year.

Dave Glass, the general manager of Adcock, has noted a remarkable surge in condom sales in South Africa. This growth can be attributed to effective marketing efforts and increased awareness of the importance of AIDS prevention. Adcock is responsible for distributing popular condom brands such as Lifestyles and Contempo. Similarly, Durex SA, a competitor in the market, has also experienced significant sales growth with a 35% increase in condom sales. The demand for condoms spans across different price ranges. For instance, a pack of three Contempo condoms costs approximately R20 to R27 whereas the more affordable Lifestyles brand has seen increased sales at around R10 for 3 condoms. Last year's government condom recall seems to have played a role in driving this surge in sales as it prompted the public to prioritize protection and demonstrate willingness to pay for it.

The Department of Health, which is a government entity, plays a significant role in the public sector. Condoms can be obtained from private retailers at regular prices or at lower subsidized prices through social marketing programs. The government's primary focus and resource allocation towards combating HIV/AIDS indicate that the public sector market will continue to dominate in the future. Additionally, since the main target users are primarily Black youth who typically cannot afford condoms at regular retail prices, there is a demand for affordable options. To identify potential markets for future sales, a new condom manufacturer would need to assess five distinct segments within South Africa.

The Department of Health contract is crucial for the success of a new rubber maker as it is the most critical factor. The

absence of this contract would render other potential market segments insufficient to sustain the viability of the operation. In order to produce a high-quality product that can be sold at a reasonable price, innovation (freshness) is imperative. Moreover, generating demand for the product is essential and will require significant dedication towards creating and promoting an appropriate marketing message.

The success of the operation depends on several factors. These include having a dedicated project management team for efficient operations, ensuring effective marketing and financial control. Additionally, it is important to form strong partnerships with both local and international organizations in reproductive health and HIV/AIDS prevention. Furthermore, any supplier bidding for a government contract must demonstrate their current production capacity, which can involve substantial setup costs without guaranteeing a major client.

HIV bar is the cornerstone of authorities's National HIV ; A ; AIDS and STI Strategic Plan for South Africa 2007-2011. The main goals of the National Strategic Plan ( NSP ) are to: Decrease the rate of new infections by 50 % by 2011. Lessen the impact of HIV/AIDS by expanding intervention, care and support to 80 % of all HIV positive individuals and their families by 2011. One important intervention to reduce the rate of new infections is the distribution of male and female condoms.

The Department of Health (DoH) is in charge of overseeing the quality and logistics of public sector rubbers. Both male and female rubbers are distributed for free to various locations. Male rubbers are primarily distributed to hospitals and clinics, with additional distribution to non-governmental organizations, workplaces, and other places. Female rubbers are distributed to specific sites and require individual counseling on their

usage.

Below is a table illustrating the government's distribution of male rubber and jutting future distribution. The Department of Health (DoH) acquires condoms through a stamp procedure. The current contract, which began in October 2005, has been extended and will end in February 2008. The Department currently procures male rubbers from both local and foreign manufacturers. In the current contract, all four local manufacturers were allocated a portion of the contract, despite significant price variations and the locally manufactured rubbers being more expensive than the imported products. Discussions with the National Treasury and the Department of Trade and Industry (DTI) present conflicting perspectives on how future stamps will be adjudicated.

The Treasury proposes that future stamps follow international benchmark values, setting a limit on their monetary value. Conversely, the DTI advocates for prioritizing local manufacturers, particularly small and medium-sized companies with assets valued under R200 million. Currently, ongoing discussions are occurring between the DoH, Treasury, and DTI. However, it is unlikely that an agreement will be reached before government approval in Q1 2008, resulting in continued discriminatory treatment towards South African manufacturers.

A new manufacturer does not have to meet a minimum capacity requirement, but must show its existing manufacturing capability. In South Africa, the condom market is mostly influenced by the government's distribution channel for HIV/AIDS and reproductive health organizations, resulting in limited involvement from NGOs. However, there is one exception - the Society for Family Health (SFH), which is affiliated with Population Services International (PSI), an international NGO network. PSI was established in 1970 in Washington DC and aims to improve reproductive health through commercial marketing strategies. By implementing programs that address malaria, reproductive health, child

survival, and HIV, PSI empowers low-income and vulnerable individuals to lead healthier lives by promoting products, services, and healthy behaviors.

PSI operates in more than 60 countries worldwide, focusing on HIV/AIDS issues in South Africa. The organization, along with SFH, employs social marketing to encourage behavior change regarding consistent condom use, HIV testing, and other safer behaviors. SFH promotes consistent condom use through their own male condom brands, Lovers Plus and Trust. The organization purchases 24 million male condoms annually from local and international suppliers. Additionally, SFH receives free female condoms from the Department of Health (DoH), which they market under the Care brand and sell at retail stores.

SFH sells approximately 6000 female rubbers per month. In addition, SFH aids the DoH in distributing its complimentary rubbers. The government distributes around 8 million male rubbers per month in Gauteng, Kwazulu-Natal, and the Western Cape. The retail sector accounts for 7.8% of the market share for male rubbers in South Africa. Male rubbers are readily accessible for purchase in retail stores. The most commonly available rubbers are the socially marketed brands, Lovers Plus and Trust.

A survey conducted in November 2006 by PSI assessed the availability of Lovers Plus and Trust rubbers in Cape Town, Durban, and Johannesburg. The survey found that most areas within the three cities met the minimum criteria for coverage. Coverage was defined as the number of specific locations where at least 30% of establishments stocked Lovers Plus and Trust rubbers. These establishments included a variety of traditional and non-traditional outlets such as pharmacies, high-end retailers, general traders, garage forecourts, hair salons, and shebeens. It was estimated that approximately 36 million male rubbers are

sold in South Africa annually, with Lovers Plus and Trust rubbers accounting for around 70% of those sales. (Senior Marketing Manager, SFH).

The gross revenues consist of Durex, Lifestyle, Contempo, and various other locally manufactured and imported rubbers. The corporate sector in South Africa is now aware of the HIV epidemic and many companies have implemented HIV awareness and management programs for their employees. However, while condom distribution is a key component of corporate HIV programs, most companies provide their employees with free government-provided rubbers.

Out of the 10 corporate members of the South African Business Coalition on HIV/AIDS (SABCOHA), all except Chevron South Africa provide free Government male condoms to their employees. These companies stated that they did not see a need to purchase condoms directly from suppliers when free condoms from the public sector were readily available. Female condoms are not typically distributed by these companies, although some have purchased them in the past for training purposes.

South Africa has struggled to find a market for its male rubbers due to its inconsistent exports. Competitors from Thailand, Malaysia, India, and China, who have the advantage of being close to natural rubber plantations, dominate the global rubber market with their affordable products. Local manufacturers have been unable to compete. While all four local manufacturers have exported their products at some point, mainly to Mozambique, Malawi, Angola, and Congo Brazzaville, only Karex currently exports rubbers to Congo Brazzaville at a rate of approximately 1 million pieces per year. The global rubber market is valued at $3 billion.

The public sector is a significant market globally, consuming between 6 and 9 billion male condom units per year. While pregnancy prevention

remains an important function of condoms, the prevention of sexually transmitted infections (STIs), particularly HIV/AIDS, is driving growth. The rapid spread of HIV in countries like China, India, and recently South Africa (within Sub-Saharan Africa) and their large populations mean that the annual demand for condoms in the public sector is expected to reach 19 billion units by 2015 (Source: Female Health Company, 2007).