Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 27

University of Language and International Study

Southern New Hampshire University

MARKETING FINAL REPORT

DUREX AND ITS MARKETING


STRATEGY IN VIETNAM

Lecturer: Lê Thị Thu Mai

Group participants

Trịnh Ngọc Khánh Linh Nguyễn Minh Hiếu


Trần Phi Hoàng Long Nguyễn Duy Hưng
Nguyễn Nhật Duy

1
TABLE OF CONTENT

I. INTRODUCTION..................................................................................................................................2
1. Why choose Durex..............................................................................................................................3
2. Company Background.........................................................................................................................4
3. Goal and Objective..............................................................................................................................6
4. Methodology.......................................................................................................................................6
II. THEORY AND ANALYSIS................................................................................................................7
1. Company Analysis...............................................................................................................................7
2. 4P analysis.........................................................................................................................................10
3. Marketing strategy.............................................................................................................................14
III. DISCUSSION AND CONCLUSION...............................................................................................24
REFERENCE..........................................................................................................................................26
EVALUATION........................................................................................................................................27

2
I. INTRODUCTION
Marketing is obviously an extremely significant tool that not only helps a company
locate a market and establish competitive advantages, but also helps the company sustain
and develop market. Marketing entails professional and technical operations such as
market research and forecasting, as well as determining technical and professional
procedures to regulate the flow of goods and services to meet market demands. This
problem has gotten substantially worse, especially in the age of globalization.
Manufacturers must have an effective marketing plan tailored to each type of market in
order to build a long-term brand. DUREX is one of the products capable of doing so.

Our essay today with the topic: "DUREX and its effective marketing campaigns" will
clearly show the positive points of this product in the process of entering the market.
market, as well as our recommendations when the product penetrates the Vietnamese
market.

1. Why choose Durex


According to Vinaresearch's report on contraceptive methods, condoms are the first
choice of customers with the rate of 86.7%, for the reasons: simple, easy to use, does not
cause side effects like drugs, suitable with all types of sex and compact easy to carry.
Durex knows well that its clients today are not only concerned with safe sex, but also
"quality". Understanding those hidden needs, Durex creates product lines that excel in
features such as ultra-thin, fruity scents, and easy-on designs, with veins and floating
beads... Continuous innovation is a competitive strength that helps the Durex brand
maintain its leading position in the market, building trust in quality, reliability, perfection
and creativity. Durex belongs to a sensitive product line, so it must often skillfully
convey its message to consumers. Thanks to the "hard to say" specificity of the product,
Durex has the opportunity to create both smart and meaningful strategies that make this
brand different from the competition. Therefore, Durex is becoming a familiar and strong
brand in the market in many countries and not except Vietnam. Therefore, we decided to
study the topic "Marketing strategy of Durex condoms in Vietnam market" to better

3
understand Durex's marketing strategy - an important part in helping this delicate industry
become a become a strong brand in the Vietnamese market.

Image 1: Contraceptive methods analysis

2. Company Background

Durex is a well-known brand of condoms and lubricants


under the public company Reckitt Benckiser - a leader in
consumer goods manufacturing based in Slough, UK. In
1915, in a small room in London, behind a tobacco
factory. LA Jackson established the London Rubber
Company (referred to as LRC) to trade in imported
condoms. In 1929, the London Rubber Company registered the brand name as Durex,

4
which stands for “Durability, Reliability, and Excellence”. Then 3 years later in 1932,
Durex started its first manufacturing company, and applied the most modern techniques
in rubber processing in its production. Today Durex is the market leader in more than 40
countries, controlling 26% of the world's $4 billion market for contraceptive condoms
and becoming the number one brand in this sector. In an effort to be a public sexual
health ambassador, both in terms of products and research, the Durex brand has always
been associated with safe sex in people's minds.
Durex is famous for its bold, creative and imaginative advertising that has had a huge
success in the condom market and has contributed to creating healthy sexual habits with
safe methods of contraception. Perfect for couples.

Image 2: Some creative advertisement of Durex

a. Vision

Durex has always fostered the development of sex education throughout the world since
the understanding of gender and sexuality is key to shaping awareness and attitudes for
the younger generation. In Asia, especially in Vietnam where people have the lack of
knowledge of safe sex and feel embarrassing while buying or having condom beside.

5
b. Mission

Since 1929, Durex has always been the mission of being a safe choice for couples all
over the world. Durex believes that everyone deserves a healthy and uplifting sex life
where they can feel the freedom and fullness of their emotions

c. Core Value
Durex - the symbol of sex new age. Durex - welcome and support those who have the
same opinion in healthy "love". Together, we will be stronger and more enduring. And
wherever you are, if you need help - there will be Durex.

3. Goal and Objective


The goal of this thesis is to provide an overview of Durex's company profile and business
environment, as well as to analyze Durex marketing strategies in Vietnam, with a focus
on the difficulties and challenges that Durex faces when promoting and advertising its
sex-related products in Vietnam, given that sexual activity is a delicate and sensitive topic
in conservative Vietnamese culture. On the other hand, this report work demonstrates that
marketing using contemporary social media trends can help with the current Covid-19
pandemic.

4. Methodology
Because the case study for this report was generated and evaluated using public
data/information sources from Vietnam and online advertising posts from Durex, this
thesis will focus heavily on literature review and qualitative research. While the literature
review is focused on gathering data and information about Durex and the Vietnamese
market, such as company analysis and situation analysis to understand the background
market, qualitative research will be focused on marketing strategy in general, audiences,
and customer experience.

6
II. THEORY AND ANALYSIS
1. Company Analysis
a. Current Status – Where are we now?

DKSH Vietnam Co., Ltd, a company founded by three Swiss businessmen moving from
Europe to Asia, now distributes Durex's high-end products in Vietnam. Although there
are no Durex condom producers in Vietnam, genuine Durex rubber providers that store
information on the Vietnamese market are mostly sourced from Thailand (Thailand).
ThaiLand Company SSL Manufacturing). Durex condom use is only 19 percent in
Vietnam, compared to Durex's global dominance of 26 percent, which is lower and free.
However, this figure is steadily rising because, while people in Vietnam were still
reluctant to discuss emotional sex a decade ago, society has progressed. People's
awareness of sexual health issues has improved, and the usage of condoms and other
sexual support goods has been given a more sympathetic look. According to the data
system plan of the Group Study of the University of Economics, Durex's total sales in
Vietnam was 20,408,000 USD in 2012, with an average yearly growth rate of 10-15%.
This growth rate is up to 30% in 2013.

 Competence analysis

Durex Industries Experienced Sensor Manufacturing Team: Lean Manufacturing


processes and flexibility for small and large manufacturing work orders is the second
reason for selecting Durex and will dovetail into the third reason: Price and Delivery.
Durex knows that to be the best it is necessary to invest in people, manufacturing
processes, and equipment. Being the best means achieving consistent results by
delivering sensor assemblies that meet specification, on schedule and at a competitive
price. In 2009, at the height of the recession, Durex’s management team made a
significant strategic decision for the long-term health of the company. While many
competitors were cutting key personnel, process improvement and internal capabilities,
Durex decided to invest in the robustness of our product lines and vertical integration

7
capabilities. Durex reduced costs through lean activities and by developing processes to
manufacture more of the sensor assembly components in house. Even during the
recession, Durex was able to grow business by providing solutions that our customers
value.

Price and Delivery are the attributes that engineers rated as their third priority. In reality
and to be a sustainable supplier, competitive price and delivery are the results of Creative
Engineered Designs and Lean Manufacturing Processes and Flexibility. Durex’s
manufacturing engineers participate in the product design process and assure that the
sensor assembly is designed for ease of manufacturing.

 Competitive advantages

Strong Parent company: Durex becomes part of the Reckitt Benckiser, a Consumer goods
MNC in July 2010 when SSL International sold it to RB for $3.88 billion. Reckitt
Benckiser is a well-known brand in the FMCG market and Durex is leveraging the
competencies of the parent company.

Economies of scale the parent company has the broad product portfolio which is helping
the company in being competitively ahead of its competitors and at the same time
minimizing its operational cost through scaling its operations.

 Competitor analysis

There are more than 100 brands of condoms from Asia to Europe, from low to high-end.
Vietnam's current market leader is Durex (the British brand) and the OK brand
(Vietnam origin). This is evident by the level of awareness and frequency of use

The OK condom brand has a slightly higher level of perceived support than the Durex
condom brand. However, the interesting thing here is that when compared to the level of
awareness of these brands in the two groups of single men and married men, the result is
for single group, Durex had a significantly higher level of awareness than married
couples (74.1% vs. 52.6%). But with the OK condom brand, married men are more

8
aware than single men (59.6% vs. 66.1%).

Right now, Durex is facing with Okamoto which is made in Japan. However, the price
of Okamoto is much higher than Durex, but the quality is better, thinner than Durex.

Image 3: Condom brands usage comparison

Although Durex is a global brand, there are no true global competitors; instead, there are
national-sized competitors such as Trojan in the United States, Mates in the United
Kingdom, Condom in Europe, and so on.

The condom market has two main objectives: STD prevention, such as AIDS and what
contraception entails.

As a result, in addition to direct competitors, it is critical to consider indirect competitors,


or those that have a substitute product. The condom is the most used type of
contraception worldwide, according to the Durex Sex Survey (2001). (41 percent of
people use it). The pill is used by 19 percent of non-condom users, natural methods are
used by 8%, and no contraception is used by the remaining 75%. As a result, the indirect
competitors (the pill and natural methods) have relatively small market shares.

9
The condom industry has no official competitors in the STD market's preventative
measures.

b. Future orientation

Durex offers coronavirus prevention guidance. We've all witnessed the chaos that has
erupted across the country as a result of the Covid19 pandemic, which has resulted in
grocery shelves being emptied. Observant netizens tweeted photographs of condoms and
adult toys being swept away with the toilet paper, rice, and instant noodles that were
flying off the shelf.

=>> Durex took advantage of the circumstance by turning it into a piece of advice about
remaining safe during the coronavirus outbreak.

2. 4P analysis
In this section, the report will provide key characteristics of the market, in terms of the 4P
strategy, thereby providing valuable insights into Durex for informed business decisions.

a. Product

Invest in quality products to bring the best to customers.

Durex holds 26% of the global market and distributes over a billion products each year.
Condoms, lubricating gels, pleasure boosters, adult toys, and other Durex items are
designed to fulfill the different preferences and demands of clients based on satisfaction
levels, fragrances, and colors. Condom materials are also subjected to electromagnetic
testing. Durex's competitive advantage in the quest to conquer clients has come from
constant innovation and ongoing creation.

Customers choose safe contraception above all else. Durex is aware of the importance of
engaging in sexual activity that is both safe and enjoyable. Durex creates product lines
with remarkable features, fruity smells, easy-on designs, and floating seeds, all while

10
understanding these "hidden" demands... Customers' needs are met, according to these
products. Customers are in high demand assisting in the renewal of the Durex brand
while maintaining a strong market position. This product is ideal, unique, and
trustworthy...

Image 4: Durex products

According to Vinaresearch’s report on contraceptive methods, condoms are the first


choice of customers with the rate of 86.7%, for the reasons: simple, easy to use, does not
cause side effects like drugs, suitable with all types of sex and compact easy to carry.
Regarding the inconvenience of using condoms, 67.8% of users say that it reduces the
feeling of love and 48.4% feel entangled and uncomfortable… Durex knows well that its
customers today not only care. Not only does it involve having safe sex, but it also
requires “quality”.

b. Price

Pricing products, helping customers choose the right products for their budget.

Durex is positioned as a high-end product line, uses a brand positioning strategy and
high-end product lines, so the product price is still quite high compared to other Japanese
or Thai condoms available in the market. Although the high price strategy will help

11
Durex raise its brand and reputation in the eyes of customers, it will not have a long-term
competitive advantage because the price is not really suitable for the pocket and living
standards of Vietnamese people.

c. Place

Distributing products where appropriate

Durex has been present in more than 140 countries including Vietnam, holding a large
market share in the US condom industry. In fact, Durex holds a 26% share of the global
distribution market. Selling with 1 billion products with 3 main distribution channels
including:

 Reckitt Benckiser: representative office receiving goods.


 DKSH: is a distributor of products that bring health to users.
 Retail stores such as convenience stores, supermarkets, pharmacies…

In Vietnam, Durex is distributed up to 95%, including big supermarkets such as Lotte


mart, Big C, Aeon Mall... as well as Family Mart, Circle K, Mini Shop retail systems...

Durex's marketing strategy also distributes online channels through the main website

In addition, Durex also develops online distribution channels through the official website
Lazada and Durex.com.vn. Durex always strengthens activities such as gift giving,
promotion, sincere customer gratitude. The brand also has a free care and consultation
system on sex life and customer psychological issues. Customers who purchase Durex
products will also receive points at condom retailers, which will be used to advertise
more items, in-kind gifts, and books with additional expertise and information for loyal
customers.

d. Promotion

Reasonable form of media advertising.

12
Durex's marketing strategy is aimed at 18-35 years old. Brand Durex with bold, smart and
sometimes witty ads. Communication channels aimed at targeted customers such as TV,
social media, etc. are proving to be effective. The familiar tagline of the brand “Feeling is
everything” is also the core of each advertising product.

Durex regularly produces viral clips and very bold and humorous product review content
on social media channels such as Facebook, Youtube, etc., attracting thousands of
customer interactions. Durex's content is often very different and concise, exploited based
on insight and potential customer psychology. Recent Durex ads are aimed at real couples
or young people receiving valuable lessons about sex.

Image 5: Durex advertisement on Facebook

For example, the #DoNotDisturb campaign, launched in May 2016, challenged couples to
not use phones and other technology devices to fully enjoy the holiday. Of the 6 couples
participating in the experience, half are allowed to bring technology devices, the other
half have absolutely no phones, no laptops, no computers.

13
Image 6: #Donotdisturb campaign

The campaign's goal is to show how much technology can help couples enjoy their trips,
and Durex is always willing to assist them in avoiding issues.

3. Marketing strategy
a. Objective
 Durex is committed to promoting responsible sex and reproductive healthcare
around the world, as well as spreading the safer sex message, by developing and
sponsoring sexual health projects. They believe that their consumer product
distribution and marketing plan would not only differentiate Durex from the
competition, but will also increase overall sales on a shoestring budget.
 To begin, educate single males aged 18 to 34 about Durex Condoms. Durex must
then attempt to demonstrate the numerous and brand-specific product
advancements aimed at consumer happiness. Finally, for new product launches,
Durex has to increase the amount of sample sales.

14
b. Segmentation

Image 7: Age segmentation

Image 8: Geography segmentation

15
Image 9: Income segmentation

Image 10: Behavioral patterns segmentation

c. Targeting

16
 Based on the preceding segmentation, Durex's target client should be a guy
between the ages of 20 and 45. Despite the fact that condoms are marketed to
people of all ages, those aged 20 to 30 are the most likely to use them. People
in their 20s and 30s are the most vulnerable to sexual conduct, but those in
their 35s and older are married or in long-term relationships and choose to
protect themselves through other means. Over the age of 35, Durex products
are less relevant.
 Condoms should be readily available in supermarkets and convenience stores
such as Circle K and Winmart, where the target audience lives. Durex's target
customers enjoy attending parties and events, as well as going out with friends
to have as much fun as possible. They are well-off citizens who live a modern
lifestyle and are unafraid to discuss sexual topics.

d. Differentiation

Alongside with the development of the company, Durex has always been finding a way
to promote their products among those from other brands. The seemingly best way to do
this is by Durex’s action in marketing and educating to this topic.

The undoubtedly successful content PR of Durex’s marketing team is shown clearly by


just looking at the interactions to their posts and advertisement. Their trendy and
inspirational content breaks the barrier of the young generation who might not want to
talk about this topic, and they made it in the funniest and most viral way possible such as
relating their products and statement to new popular events, movies or characters.

17
Image 11: An advertisement related to COVID_19 pandemic

Image 12: An advertisement related to the new released movie of MARVEL

The 20s must be the most entertaining period of time, where people’s creativity gone so
far and gained so much intention, mostly the young generation and Durex has become so
popular in it. With multiple non-recycle wordplays, quotes, references, there’s no doubt
of the success of Durex’s marketing programs, particularly in Vietnam, Durex has nearly
12 million of follows on Facebook and numerous community reactions on their content,
getting awareness in a broad group of people.

18
Besides the trendy part, Durex also use this marketing channel to educate of sexual health
by combining the funny post and an educational sequel comment:

Image 13: Durex actively comment and interact on Facebook

In a market with such an incentive topic as this, Durex shows their concern of the
community by releasing multiple educational contents, which their opponents were not
ready to step up for it. Therefore, gain people’s trust and loyalty for a better sale and
brand awareness.

Image 14: Durex provide sex educational contents

19
With the brand being so popular and trustworthy, their products therefore gain a
supremacy position in people’s perspective and totally stands out from other brands
product.

e. Positioning

As above, Durex positioned itself as a company which is more than just being a condom
brand but a company taking care of the emotional and sexual health of the community.
The brand focuses on the emotional experience and feelings of customers when using the
products while giving lessons for a better sexual life.

Understanding their customers, Durex released multiple types of products that can easily
fit consumers desire such as the thinness or scent or protection, … At this point, most of
the customers are satisfied with Durex’s products quality and with a firm stand in the
market, there will be a huge amount of time until its rival can pose a threat to the
company.

Speaking of the scent, Durex release 4 most popular scents for better experience in sex,
and by the thinness and protection, there are types with different quality. There is no
doubt this number will grow by time, promising a bright future to the brand. 60% of the
buyers from Amazon rate Durex on 5 stars with 1 star of only 7% of the buyers, we can
see the customers still thought of Durex as one of the best brand in the market for over a
century.

20
Image 15: Durex flavored condoms

f. SWOT analysis

The first strength of Durex is brand awareness. One sees a blue


packaged condom, one thinks of Durex. The brand is widely
known and trusted around the globe. This is such a result for its
effective and long-term commercial campaign, both direct or
indirect.
The second one is its distribution. Most of the times Durex
products are sold at convenient store, mall or online shopping.
These are most familiars shopping destination to Durex’s target
STRENGTH customer: the young generation. The moment they come into the
store and about to leave, Durex products are right in front of their
eyes and it’s such a difficulty not paying attention to these,
whether if they are going to buy it or not.
The third one is its experience. In this field, Durex is one of the
eldest of all with decades of experience of production and
commercial marketing. In addition, the company also provides
knowledge of this topic to the community, which one more time
emphasize their experience and profession.

WEEKNESSES
One most obvious and difficult to resolve cons of Durex is its
dependence on its main line of products: condoms. Although
condom sales have always been stable and slightly increase, other
products like lubricants or sex toys are not getting enough attention

21
from the community as it should be.
A more social weakness of the brand is the barrier of religion and
culture in some market, mostly Muslim and Asian countries.
Despite of the educational campaign, elderly in these market still
have a narrow-minded opinion of these topic and that leads to a
difficulty selling the products to these group of customers.

As we have all experienced and maybe a part of it, this young


generation age 18-30 around the globe is having a free lifestyle,
therefore the needs of protection and awareness about the sexual
health topic is getting more and more crucial. An opportunity for
Durex, who has already been a pioneer and concerned of this topic.
OPPORTUNITIES
Alongside the growth of technology, the company is also
benefitted. New technology helps reduce production cost, increase
products quality and also, the growth of social media such as
Facebook, Instagram, Twitter, Tik Tok and so many more is a
chance for multiple marketing channel to its target customers.

THREATS
These days, Durex is having more new competitors in its market
alongside the most famous rival Trojan. In many market like
Japan, where customers prefer domestic brand, there might be a
threat of competitors like Okamoto, Shigami, … Although this is
not being a serious problem at the moment, in the future there will
be a more surprising threat from these competitors.

Like most brands that works in incentive market, the government


may also be a threat as they have policies that restricted the

22
products to fit their nations culture. Without a careful and wise
choice of commercial campaign, Durex may lose part of the
market due to the penalties of the policies.
Like most brands that works in incentive market, the government
may also be a threat as they have policies that restricted the
products to fit their nations culture. Without a careful and wise
choice of commercial campaign, Durex may lose part of the
market due to the penalties of the policies.

III. DISCUSSION AND CONCLUSION


In Vietnam, Durex is doing exceptionally well. Durex's success is demonstrated by its
large market share, which it achieved by maximizing its unique benefits. Durex does not
appear to be experiencing many problems because its parent firm, Reckitt Benckiser,
provides assistance in terms of distribution, financing, and marketing. It not only
produces condoms for various fetishes, but it also focuses on what Vietnamese
consumers want most: thickness and protection. Although the company targets the correct
demographics, the most essential elements in its growth were advertising and public
relations. Durex has succeeded in understanding the local culture, increasing brand
awareness and improving customer perceptions of condoms.

Durex's strength is that it is a trusted brand that produces high-quality product at a


reasonable cost. Durex is famous for its creative marketing team, which comes up with
unique concepts to attract customer. a considerable number of Durex products are widely
available in grocery stores, making them convenient for customers. All of these variables
make it necessary for Durex to interact with its competitors on a daily basis.

Besides its strengths, Durex still have a number of shortcomings. Because their
products are not recyclable, they may cause negative environmental consequences.

23
Secondly, the Durex product's selling price is slightly higher than middle-class income.
Due to a lack of knowledge among Vietnamese younger generations about sex education
and protection when sex is engaged in a relationship, therefore using condoms is still
restricted. Durex will lose some certain number of clients in the long term as the
Vietnamese population ages. Durex products are hazardous to the environment, while
environmental concerns are growing in popularity around the world. As a result,
consumers and the government will no longer support Durex products.

They should take advantage of the product strategy to add a quality product line, the
price is a bit low, ancillary values can be omitted, to reduce product costs, or reduce
profits to reach this segment. Training and searching for human resources in Vietnam to
establish an official office cum sales process

 Overall, conservative feudal perception and cultures still exist in East and South-East
Asia, creating an intangible boundary in the issue of sex. As a result, if Durex chooses to
sell its products more effectively in Asia, thorough research of characteristics and market
surveys in each nation and culture should be completed and analyzed ahead of time in
order to establish an appropriate marketing strategy.

24
REFERENCE

1. Slides of lecturer Le Thi Thu Mai - Lecturer in Principle of Finace Faculty in Southern
New Hampshire University

2. Images and charts from: Google, Facebook, Vinaresearch website

3. DUREX và chiến lược Marketing “Chẳng giống ai”: https://marketingai.vn/chien-luoc-


marketing-bao-cao-su- durex/#:~:text=Chi%E1%BA%BFn%20l%C6%B0%E1%BB
%A3c%20marketing%20c%E1%BB%A7a%20Durex%20tr%C3%AAn%20to%C3%A0n
%20c%E1%BA%A7u%20l%C3%A0%20h%C6%B0%E1%BB%9Bng,v%C3%A0%20ph
%C3%A1t%20m%E1%BA%ABu%20d%C3%B9ng%20th%E1%BB%AD.

3. Vinasreach (2017), Báo cáo nghiên cứu thị trường bao cao su, Báo cáo nghiên cứu thị
trường - Bao Cao Su – Biện Pháp Tránh Thai Hàng Đầu Được Các Quý Ông
Việt Lựa Chọn | Vinaresearch

4. Babuki JSC(2021): https://cafebiz.vn/giai-ma-thuong-hieu-bao-cao-su-hon-100-tuoi-


binh-thuong-hoa-van-de-nhay-cam-van-noi-tieng-hang-dau-the-gioi-
2021082308451699.chn

25
EVALUATION

No Full Name Contribution Percentage

- Collecting and
summarizing information
1 Trịnh Ngọc Khánh Linh 25%
- Introduction and
Conclusion

3. Marketing Strategy
d. Differentiation
2 Nguyễn Minh Hiếu 20%
e. Positioning
f. SWOT analysis

4 Nguyễn Nhật Duy 1. Company analysis 20%

26
5 Nguyễn Duy Hưng 2. 4P analysis 20%

3. Marketing Strategy
a. Objective
6 Trần Phi Hoàng Long 15%
b. Segmentation
c. Targeting

TOTAL 100%

27

You might also like