ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student name: Đào Duy Phước Student ID number: 31221025360

UNIT AND TUTORIAL DETAILS

Unit name: Principles of Marketing Unit number: PMK-DH48ISB-1

Tutorial/Lecture: Lecture Class Class day and time: Thursday, 8am
Lecturer or Tutor name: Dr. Nguyen Ngoc Quynh Thu

ASSIGNMENT DETAILS

Title: A2_BUSINESS ANALYSIS REPORT_DUREX INVISIBLE

Length: 1486 Due date: 12/11/2022 Date submitted: 12/11/2022

DECLARATION

I hold a copy of this assignment if the original is lost or damaged.

I hereby certify that no part of this assignment or product has been copied from any other student’s work or from
any other source except where due acknowledgement is made in the assignment.
I hereby certify that no part of this assignment or product has been submitted by me in another (previous or
current) assessment, except where appropriately referenced, and with prior permission from the Lecturer /
Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person except where
collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned.
I am aware that this work may be reproduced and submitted to plagiarism detection software programs for the
purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism
checking).

Student’s signature: Đào Duy Phước

Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not been
signed.
 Table of Contents

I. INTRODUCTION……………………………………………………………………………..……………………………………………….
II. BUSINESS ANALYSIS – DUREX INVISIBLE…………………………………….…………………………………………………
1. Microenvironment……………………………………………………………………………………………………………..
1.1 Suppliers……………………………………………………….………………………………………………………
1.2 Marketing Intermediaries……………………………………………………………………………………..
1.3 Competitors………………………………………………………………………………………………………….
1.4 Publics………………………………………………………….……………………………………………………….
1.5 Customers………………………………………………….…………………………………………………………
2. Macroenvironment…………………………………………………………………………………………………………….
2.1 Demographic Environment……………………………………………………………………………………
2.2 Economic Environment…………………………………………………………………………………………
2.3 Natural Environment…………………………………………………………………………………………….
2.4 Technology Environment………………………………………………………………………………………
2.5 Cultural Environment…………………………………………………………………………………………….
3. SWOT Analysis……………………………………………………………………………………………………………………
III. CONCLUSION AND SUGGESTIONS………………………………………………………………………………………………..
IV. REFERENCE…………………………………………………………………………………………………………………………………..
 A2_BUSINESS ANALYSIS REPORT

DUREX INVISIBLE

DAO DUY PHUOC

I. INTRODUCTION

DUREX’S BUSINESS BACKGROUND:

 Durex is a British original condom company owned by Reckitt Benckiser. It was established
and developed in London, England in 1915 by L.A Jackson with the initial name London
Rubber Company and, later, was changed to Durex (“Durability, Reliability and Excellent”) in
1929. (Durex, n.d)
 In the 1970s, the world observed Durex’s very first overseas expansion campaign of global-
launching advertisements. Then, in the 2000s, Durex expanded to approximately 50
different countries in the world, therefore, becoming one of the world’s top condom
producers, holding a market share of over thirty percent worldwide, since its foundation in
1915. (Durex, n.d). In the Vietnam market, Durex takes the leading role in condom sales,
followed closely by the OK brand.

II. BUSINESS ANALYSIS – DUREX INVISIBLE

1. Microenvironment:

1.1 Suppliers:

 Besides the manufacturing facilities located in the United Kingdom, Durex has also
extended its product operations to countries with a strong but low-cost labour force like
China, India, and Thailand while also maintaining supply orders from Karex which company
is well-known for being the world’s largest condom manufacturer.
 SSL Manufacturing Ltd., a Durex’s condom manufacturing company in Thailand, a part of
the Reckitt Benckiser business empire (SSL Manufacturing (THAILAND)), plays a vital role in
helping Durex’s goods be imported to Vietnam. Since Thailand is only a country away from
Vietnam, the goods transportation time is rather quick, approximately an hour. Therefore,
there is no doubt that the products’ quality would always be in excellent condition and
there is an unlikelihood that the price would be comprised when arrived in Vietnam.

1.2 Marketing Intermediaries:

 The fact that Durex's product is well-known and easily accessible at practically any store
helps the company become famous. Convenience stores (Family Mart, Ministop, Circle K,
etc.), retail establishments, and pharmacies make up their wholesale business in Vietnam;
Durex holds an 80–90% share of this industry. Even though only about 16 percent of the
population uses Durex products, the nation's retail and convenience stores stock Durex
items on their shelves (“Ông Lớn Nào Đang Chiếm Lĩnh Thị Trường Bao Cao Su Của Việt
Nam?”). Any Vietnamese would notice that every checkout counter in Vietnam has a
"condom" booth. Retailers in Vietnam sell Durex condoms to individual clients. Two of the
biggest food wholesalers in Vietnam, Big C, and Coop-mart, distribute a range of consumer
goods. Big C focuses on both wholesale and retail.
 Since online shopping is becoming more familiarised and trendier, Durex’s products have
also penetrated popular e-commerce markets in Vietnam like Shopee, Tiki, Lazada, etc. to
be more accessible to consumers.

1.3 Competitors:

 Durex has been dominant in the percentage of condom sales in Vietnam, stated at 16%.
However, international brands like Sagami and Okamoto from Japan or OK from America are
also competing for first place in Vietnam as well, whose sales percentage in Vietnam
accumulates 12.7% and 8%, respectively (“Ông Lớn Nào Đang Chiếm Lĩnh Thị Trường Bao
Cao Su Của Việt Nam?”). However, with its brilliant social media marketing and innovative
online posters, Durex remains the market leader in Vietnam.

1.4 Publics:

 Durex has achieved enormous success in the digital marketing area, especially in the social
media department. Numerous ingenious advertisements along with creative online posters
appear on famous social media platforms whereas Facebook. The content is well-designed
and carefully illustrated to fit the Vietnamese market’s sensitivity. Moreover, the marketing
products are always put under metaphor in a such brilliant way that helps the products
delivered to the customers smoothly and effectively. For instance:
 (Facebook, n.d)

1.5 Customers:

 In the Vietnam market, Durex targets virgin customers or customers who have already had
sex but without condoms, aged between 18 and 24.
 However, the core customers are the most sex-active consumers under 45 years old.

2. Macroenvironment:

2.1 Demographic Environment:

 In 2019, Vietnam had a population of more than 90 million, placing thirteen globally and
accounting for 1.26% of the global population (Worldometer, n.d). Additionally, Vietnam is
one of the nations with a young generation, or "millennials," between the ages of 25 and 45
(generation Y), which makes up around 29%. Because young adults and married people tend
to use condoms more frequently, Durex has a chance to increase sales by taking advantage
of the young demographic structure.

Dan so Viet Nam 2019 – Tuan v. Nguyen. (n.d.)

2.2 Economic Environment:

 One of the economies in Asia with the quickest growth is Vietnam. Vietnam is a desirable
market for a long-term campaign due to its average annual GDP growth rate of 6.5%, stable
population growth, and rising income. In 2021, Vietnam’s GDP reached 362.2 billion USD
with a population of 98.17 million. In other words, on average, a Vietnamese earned about
3693.59 USD/year which would be willing to pay for the price that Durex Invisible offers if
the brand has sufficient customer engagement. The Vietnam economy is on a gradual rise,
so, the Vietnam market seems to be profitable for Durex’s approach.

2.3 Natural Environment:

 If Durex decides to establish a plant in Vietnam, they will be at an advantage because there
would be a lot of inexpensive rubber.
o Vietnam’s geography makes the country well-known for being hot and humid
throughout the year, with only 2 recognizable seasons: the dry and wet seasons.
Moreover, located in Indochina, Vietnam has a huge area of Bazan red soil
accumulating 10% of the total area. Altogether, these geographical conditions help
Vietnam develop the rubber industry with ease: ranked third in the rubber
manufacturing of the world and ranked first in Asia in the average yield of rubber
(1,682 kg/ha).
 However, condoms are made of rubber which is not biodegradable. A condom lasts for
about 3 to 20 years; therefore, the mass disposal of condoms would be harmful to the
global and local environment. Since consumers are more and more concerned about
environmental problems and, particularly in Vietnam, the consumption of condoms has
been increasing lately, Durex must act and show their care towards this world’s issue.

2.4 Technological Environment:

 Nowadays, people spend a lot of time on a mobile phone. In Vietnam, on average, people
spend one-fourth of their day on mobile phones, especially, for surfing social media and
social networking. Specifically, the percentage of mobile phone time used for surfing
Facebook is 25%, followed by YouTube which accounts for 12%. Zalo and Messenger’s
statistic takes third place, 7%, and 6%, respectively.

Average usage time of apps over total smartphone usage time

 This can be seen as an opportunity for Durex to launch a mass social media marketing
campaign about brand and products advertisement to increase sales and attract potential
buyers.

2.5 Cultural Environment:

 Although Vietnamese, generation Z specifically, has become more open when it comes to
having sex, many people still feel uncomfortable and inappropriate to talk about it. Sex is a
very sensitive topic and even being considered taboo in conversations. Therefore, Durex
needs to create a safe place or a sex-friendly environment or even a sex education event in
Vietnam so that Vietnamese people would be less prone to sex.

3. SWOT Analysis:

STRENGTHS WEAKNESS

 Strong brand name  High pricing

 Strong parent company
 Manufacturer and distributor located
near Vietnam
 Social media marketing strategy
 90 years of working experience
 Strong finance
 No headquarters in Vietnam
 Ethical issue (cannot do marketing on
TV)
 Competitors can also be benefitted
from Durex’s strong promotion of
sexual health

OPPORTUNITIES THREATS

 Changing mindset in Vietnam  Cultural barriers, Vietnamese


 Vietnam’s increase in population
 Vietnamese time usage of the phone on
social media
 Vietnamese positive economic growth
 Vietnam’s rubber source
 Vietnam’s demographic structure
 The popularity of social networks
perception of sex topics
 Competitors’ strategy, the two main
ones are OK with lower pricing and
Okamoto with higher quality
 Low brand loyalty
 The future customer’s buying behaviour
would be affected because Durex has
yet to introduce products, campaigns,
or marketing strategies that are related
to environmental protection

III. CONCLUSION AND SUGGESTIONS

 Overall, Durex is an experienced company that has been doing business for over 90 years. It
has built its reputation and become one of the most famous brands in the condom business.
In Vietnam, Durex has succeeded in building its brand name through the social media
platform.
 However, Durex’s condom industry still observes a low market penetration level (about
19%) in this country, despite its considerable effort online, mainly due to the Vietnamese
culture of considering sex or sex-related topics as taboos. Therefore, Durex needs to seize
that opportunity and approach the generation Z, who are still in school or university, open-
minded and comfortably adaptable to changes, to conduct a sex educational program and
direct misleading conception about sex into the correct understanding of benefits that sex
offers, as a result, raising awareness or encouraging those potential buyers to buy their
products. Moreover, modification to Durex’s products needs to be made to become more
environmentally friendly, so, soothing the public concerns about the well-being of the
environment.

IV. REFERENCE
A brief overview of the Vietnam economy.
(n.d.). https://vietnam.mfa.gov.by/en/exportby/business/viobzec/

-, C. K. (2022, June 18). Xuất khẩu ngành CAO Su Len tới 9,5 Ty USD, nhưng đối mat nhiều Thach
thức. Nhịp sống kinh tế Việt Nam & Thế giới. https://vneconomy.vn/xuat-khau-nganh-cao-
su-len-toi-9-5-ty-usd-nhung-doi-mat-nhieu-thach-thuc.htm

Dan so Viet Nam 2019 – Tuan v. Nguyen. (n.d.). Tuan V.

Nguyen. https://nguyenvantuan.info/tag/dan-so-viet-nam-2019/

Dao, S. (2021, May 14). Vietnamese smartphone usage spent mostly on Facebook. Vietnam
Insider. https://vietnaminsider.vn/vietnamese-smartphone-usage-spent-mostly-on-
facebook/

(n.d.). Durex UK. https://www.durex.co.uk/

Durex Vietnam: "We are bold and saucy but never in bad taste regarding the Vietnamese culture".
(n.d.). Advertising Vietnam. https://advertisingvietnam.com/durex-vietnam-we-are-bold-
and-saucy-but-never-in-bad-taste-regarding-the-vietnamese-culture-l17341

Facebook. (n.d.). Facebook. https://www.facebook.com/Durex.Vietnam

SSL manufacturing (Thailand). (n.d.). Asian Manufacturers

Directory. https://asian-links.com/manufacturer/ssl-manufacturing-thailand

VietNamNet News. (n.d.). Vietnamese spend hours a day on mobile apps, social
networks. https://vietnamnet.vn/en/vietnamese-spend-hours-a-day-on-mobile-apps-
social-networks-816954.html

Ông Lon NAO đang Chiem lĩnh thị Truong Bao caosu CUA Viet Nam? (2018, November
7). https://laodong.vn/kinh-doanh/ong-lon-nao-dang-chiem-linh-thi-truong-bao-caosu-cua-
viet-nam-640214.ldo?fbclid=IwAR37Da-4GpmRDLNKOVdPx6lPTCJdjcs-M-