Durex in India: The category normalization challenge

1. Durex in India: The category
normalization challenge
Submitted by
Team Ground Breakers, IIM Ranchi
Name Email id Mobile number
Tarun Gupta tarun.gupta12@iimranchi.ac.in 9000015915
Sanjana B. Pattanshetti sanjana.pattanshetti12@iimranchi.ac.in 8051183361

2. Situation analysis
What is the current perception among customers and channel partners about
sexual well being?
Why is the perception so skewed?
Acceptability Affordability Accessibility
• Hesitance to talk
about condoms
openly
• Lack of
awareness about
their usage,
benefits
• Fear of damage
of social
reputation
• Regulated media
• Unit price of
condoms range
from INR 2 to INR
750+
• One time use
product
• Heavy expenditure
considering
repeated need for
the product
• Available only in
chemist stores and
select retail stores
• Retailer reluctant
to stock and
display condoms
• Reluctance of
customers to
purchase condoms
in public
• There still exists a stigma associated to condoms and sexual well being
• Disparity in perception and practices between different regions
• Some feel that use of condoms effects their masculinity
• Awkwardness about the product exists among both the buyers and sellers

3. Socio-cultural evolution
Sanitary napkin evolution Acceptability of condoms
Factors driving increase in acceptability:
• Literacy
• Sex education in schools
• Urbanization
• Evolution of Bollywood
Situation pre 1990s:
• Limited product varieties
• Highly priced ( approx. INR 2 napkin)
• Ban on mass media communication
Source: Livement - Breaking a cultural taboo
Situation 1990s:
• Increase in product varieties and brands
• Advertisements focusing on functionality/utility of
product
Situation 2000s:
• Increased focus on product and communication
innovation
• Various taken by government and not-for-profit
organization to increase affordability and
accessibility in rural areas
• Advertisements’ focus shifts from functionality to
lifestyle
Accessibility
Time
• Educational campaign
• Innovation in home delivery model
• Enhanced communication
• Associations with government & other organizations
Disruptive growth in acceptability
Accessibility
Time
Literacy
Sex education
Bollywood
Increasing
urbanizationEducational
campaign
Home delivery model
Association with NACO
Channel partnerships

4. ____ analysis
• Existing advertisements are mostly provocative
• Focus on the ‘pleasure’ aspect rather than ‘safety’ –
which is reason for using condoms
• Highlights the fact that sexual well being is a taboo
in the society
Relating with condom ads
• Packaging of most of the condom brands
• This deters purchasing condoms as customers feel
awkward/conscious to visit that section of a
store, choose a pack and get it billed
• This also deters retailers from displaying and
promoting these products
Packaging
• Packaging should give information about the
brand and the varieties, enabling the customer to
choose wisely , yet it should not be explicit
• This prevents catching unwanted attention, for
both customers and retailers
• Advertisements should be aimed at connecting with the
target customers – the youth - likely to be the biggest
potential customers
• Ads can be sensual to communicate that it does not
hinder pleasure but should be portrayed in good taste
• Ad expenses – Results of Aamsutra
• Targets only the segment that already uses condoms
and offers varieties, but does not connect with new
customers
• Increases the stigma in the society by highlighting
the taboo
• Portrayal in the ads deters people from associating
with it and hence deters usage
• Possible reason for media houses to regulate
Impact of such promotion

5. Brand communication
Education is the best contraceptive….a close second is
Durex
Mascot for Durex: Mr Sure
Educational campaigns in association NACO
Project Suraksha
Target audience: People aged 16 to 38 years
Mode of communication: Mass media – Television ads,
print ads, radio etc.
Protagonist: Mascot, Mr Sure
The educational advertisements will focus on safely,
various facilities available, where condoms would be
available etc.
Advertisement of the Durex brand would be subtle yet
powerful
Since campaign is in association with NACO,
advertisement costs would reduce
Campaigns will also include sex education programs for
schools
Targeting and communicating to the right
audience through the social media
• Games on Facebook based on Mr. Sure
• Applications which give information about
different varieties of the products
• Campaigns on World Aids day, valentines day etc.
• Awareness programs for the various other
initiatives like the delivery channels etc.
• Android apps for mobile phones with games and
other information
Project Suraksha

6. Brand communication (contd.)
Building a conducive environment to communicate openly
The most important sources of
information regarding sexual
well-being for today’s youth
1. Peers
2. Internet
Implications:
1. Unavailability of complete
information
2. Incorrect information - can
result in a worse situation
The biggest problems in the
current situation is that people:
1. Cannot approach parents &
teachers for information
2. Cannot freely approach
retailers while purchasing
Retailers should be made more open
to display condoms; brand
management and pushing products
must be similar to other products
• Arrange regular retailer & dealer
meets where they are sensitized
• Incentive schemes for
displaying, shelf space and
better sales
Associate with companies and
conduct awareness programs on
World Aids day etc.
Awkwardness between parents and
children regarding sexual well-being
is one of the biggest barriers
Solutions:
• Under Project Suraksha, organize
programs to enable parents to
talk openly to their children and
impart timely information as
needed
• Open communication in mass
media will also help parents open
up
• Print ads, banners in public
places showing communication
Parents Retailers
Companies
The new FREE-DOM
My mother told me
that condoms are
safer and
contraceptive pills

7. Affordability
No Indian-ization of Products
Reasons for non –
usage of condoms
0
10
20
30
40
It affects
Masculinity
Recurring Cost Don’t like using Not satisfying
Non-usage of Condoms Key Takeaways
Recurring cost is the
major factor
stopping the mass
adoption.
Aware of Condoms
as a medium for
prevention of STI’s
0
20
40
60
80
100
120
Men Women
Aware
Not-
aware
Majority considers
Condoms as a
spacing device
rather than a health
product.
Solutions
Reducing the cost per
usage by a cheaper
variant for Tier 2 Cities.
Health
Promoting Condoms as a
health device not a
spacing device

8. Accessibility
Marketing
ChannelProduct
Customer
Based on the product life cycle and the target market in a specific
geography , one or more of the three pillars has been chosen as focus to
meet our clients business needs.
Customer
Product Channel
New Product Entry
Customer
Product Channel
Entry of Competition Mature Markets
Customer
Product Channel
Primary focus Secondary focus
Post analyzing the primary and secondary focus for ‘Durex’ in a India, we have studied the
market entry strategy from various perspectives and suggested the most preferred route.
From
Product
To
customer
s
JVs/
Acquisitions
Distributors
/ Agents
Channel
Partners
Marketing
Strategies
GTM Framework
Enhancing Accessibility with the right Go-To-Market strategy
Source: From-To Approach, BCG; Redefining GTM, AT Kearney

9. Accessibility (Contd.)
Building a conducive environment to communicate openly
Vending Machines Activation in
Metros
Majority of the vending machines are
in Delhi & Mumbai. Activation of
Vending machines across India will
help in Increasing Acceptability.
Durex FB Page
Home Delivery Tie-ups
Medical Shops Chain:
Online Retailer tie-ups
Aiming for Greater Display space:
Push strategy
Higher margins for
dealers, Distributors& retailers.
Urban
Rural
Tie-up with Govt. Schemes & NGO’s
Innovation in Accessibility
Free or Subsidized
condom supply to
people taking
Life Insurance
Schemes
Tie-up with SBI, ICICI or
HDFC banks to have a
vending machine in each
ATM. Enhances Accessibility
with privacy.

10. Accessibility (Contd.)
Penetrating the market in a phased manner
KEY FACTORS FOR CHOOSING CENTRES
Literacy Rate Per Capita Income
1 2
LUCKNOW
NEW DELHI
JAIPUR
PATNA
KOLKATA
HYDERABAD
CHENNAI
MUMBAI
AHEMDABAD
BHOPAL
BUBANESHWAR
TRICHI
BENGALURU
kanpur
allahabad
Malda
hugli
vijaywada
guntur
madurai
coimbatore
mysore
davangere
pune
udaipur
ajmer
rajkot
surat
warangal
nagpur
Targeted regions
Rest of India
Sources: List of cities and towns in India – Wikipedia; Indiastat.com
• UP(Agra, Meerut, Varanasi)
• WB(Siliguri, Asansol, Khargpur)
• Bihar(Arwal, Gaya, Muzaffarpur)
• MP(Ujjain, Ratlam, Indore, Sagar)
• Rajasthan(Pali, Sikar, Alwar)
• AP(Vishakhapatnam, Eluru)
• TN(Thoothukudi, Vellore, Salem)
• Maharashtra(Thane, Dombivili)
• Karnataka(Gulbarga, Mangalooru)
• Gujarat(Vadodra, Bhavnagar)
• Orissa(Dhenkal, Debargh)
Phase 1
• Target metros & major Cities
• Establish hold in major metros which will act as drivers
of change.
Phase 2
• Target tier 1 & major tier 2 cities
• Create a wider customer network
Phase 3
• Target tier 3 cities
• Cater to the digital divide by penetrating the under-
served rural market
Tier3Cities

11. Strategic
objectives
Insights
To identify the
drivers for
acceptability of
condoms
Acceptability Affordability
To address the
Affordability
challenge
w.r.t this category
Socio-cultural
Evolution is
increasing the
use of Condoms
but at a
Slower pace.
Disruptive
innovation
needed to boost
growth
Packaging of
the product
& Brand
communication
play a crucial
role
Recurring cost
is a major
deterrent
For using
condoms
Condom
considered
a birth control
device
than a device to
protect from STI.
22% of the
people
Surveyed did not
like Using
Condoms
Product discounts
are the most
favoured means of
discounts accepted
by retailers.
Accessibility
To develop a Go-To-
Market strategy
Majority of
vending
Machines are
limited
to Delhi &
Mumbai region
Social media and
Online
Retail are the
next big Marke-
ting mediums.
Promote condoms
as Health Device
Rather than a
spacing device.
Example Variant:
Durex Health
Recommendations
Associate and
companies and
conduct
awareness
programs
on World Aids day
Free or Subsidized
condom supply
to people taking
Life Insurance
Schemes
Come up with
a range of cheaper
Variants to address
the larger market
Arrange regular
retailer & dealer
meets where they
are sensitized
Project Suraksha,
organize programs to
enable parents to
talk openly
Associate with
government
program
Like NRHM &
NACO
Focus on Channel
Development in urban
region & product
Education in Rural
Regions.
Tie-up with SBI, ICICI or
HDFC banks to have a
vending machine in
each ATM.
Executive Summary
Summarizing the Key Recommendations