We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

See Pricing

What's Your Topic?

Hire a Professional Writer Now

The input space is limited by 250 symbols

What's Your Deadline?

Choose 3 Hours or More.
Back
2/4 steps

How Many Pages?

Back
3/4 steps

Sign Up and See Pricing

"You must agree to out terms of services and privacy policy"
Back
Get Offer

Launch of a Condom Brand in India

Hire a Professional Writer Now

The input space is limited by 250 symbols

Deadline:2 days left
"You must agree to out terms of services and privacy policy"
Write my paper

CONTENTS

1. Executive Summary
2. Situation Analysis
2.1. Market Summary
Target Markets
Our brand ‘G.Love’ focuses on providing premium quality male condoms, to the target group of urban youth (typically in the age group of 18-35) selected to cater to the specific needs of this segment, both in terms of product offerings and delivery, in terms of packaging and channels. The existing players cater to this segment in the traditional ways, without much adjustment to their changing sensibilities. It is this gap we are trying to fill as a brand.

Don't use plagiarized sources. Get Your Custom Essay on
Launch of a Condom Brand in India
Just from $13,9/Page
Get custom paper

2.1.1. Market Demographics

The profile of the typical condom user targeted by G.Love Condoms consists of the following geographic, demographic and behavioral factors. Geographics
Since data collated from National Health survey (Gov. of India) clearly shows high awareness levels about condoms (except in remote forested regions) across various regions in India, the geographical focus would not be on a particular region [1]. However, the broad focus would definitely be there on urban areas, since NHS data clearly points to urban population having much more percentage of condom users compared to rural population (14% vs.

6%) [2]. Further, Urban users are also more likely to buy fully priced condoms (39% of sales) than rural areas (13%) which reinforces the importance of the urban market for a brand like Glove condoms [2]. Demographics

Glove condoms would focus on the Smart, educated, aware, and ambitious youth in age group of 20-35 which would include both the college going population as well as the office going young adult population. The male youth population of India in the age group 20-35 comes to around 150-160 million people, out of which roughly 32 % people reside in urban areas. Thus we obtain a population of roughly 50-53 million urban youth aged 20-35, who would be our core target segment. The reasons for targeting the 20-30 age group segment is the high usage of condoms as well the higher percentage of full-priced condom sales being accounted for in this segment(close to one-fourth of total sales in this segment are fully-priced) of the population [2]. Also, we would be targeting the more educated, and wealthier segments of society, since education and wealth strongly correlate to condom usage (and full-priced condom sales also), which is something that comes out from our data [2]. Further, among female consumers of condoms, the usage rate peaks among the women with 2 children (27%) as opposed to women with No children or 1 child, which shows that the need to avoid pregnancy plays a major role in the purchase of condoms by female consumers [3].

Fig. 1 Consumption Patterns
Age
Free brand
Socially marketed brand
Fully priced brand
unknown brand
Total
Number who used a condom

15-19
9.6
33.5
21.6
35.3
100
231
20-24
15.3
34.3
23.4
27.0
100
576
25-29
13.0
38.9
25.5
22.6
100
818
30-34
14.1
38.1
27.9
19.9
100
953
35-39
15.8
35.1
26.5
22.7
100
772
40-44
13.7
34.7
34.0
17.6
100
488
45-49
13.5
36.9
27.5
22.1
100
244

Table 1: Age distribution of Percentage of sexually active men using condoms From Table 1, we deduced that 55% of the total users of fully priced brands are in our target segment of 20-35. Among the total users of fully priced brands, 77% of users are in urban areas. Behavior Factors

1. In the Indian market, there are various reservations for not using condoms. Sex and related topics are considered a taboo. Even though Govt. has tried to address the issues related to STDs and AIDS, by various campaigns, they were not much impactful in addressing this issue. The Issue is two fold, awareness & the actual usage. Awareness not just in terms of what it can save you from but as a comparison between other alternatives is lacking. The issue with actual usage is multi fold. People feel they are immune to these diseases/ feel they don’t need it in their regular sexual interactions. The other reasons are of discomfort and condom is looked at as a pleasure depriver. How over when one convinces oneself to use a condom, the purchase of product itself is another topic. 2. Consumer find themselves in awkward situation while buying condom a. Medical stores- The retailers and distributors stated that buying a condom is not as comfortable as asking for a painkiller in a drug shop [4]. b. Consumer finds it difficult to explain his exact needs and wants to finish the buying process as quickly as possible. c. Supermarkets- Biggest concern of the consumer is that they do not want to buy condom in front of other as they find it awkward 3. Consumers are not open about discussing their needs.

4. More than 45% consumers select brand based on advertisements they have seen. Also consumers prefer brand on which discounts are offered. Eg. 1 lakh condoms were sold by snapdeal on Valentine’s Day. Each condom was priced at Rs.1 2.1.2. Market Needs

The major needs of the market that our brand is trying to address are: 1. Safe sex and protection from STDs
2. Birth Control
3. Premium quality reliable condoms
4. Hassle free purchase
2.1.3. Market Trends
Contraceptive market has been on the rise in India due to a number of reasons. Higher awareness of contraceptives in the country has contributed to the growth. Perception associated with condoms is no longer negative [5]. This has led to a change in how advertising is done, earlier the contraceptive advertising was driven by government creating awareness among people about family planning, and nowadays advertising is more commercial. “Most of the growth in the demand for pills and condoms will occur in the private sector,” says M Ayyappan, CMD of HLL Lifecare[1]. Distribution channels for condoms is also changing with condoms being increasing purchased online. 2.1.4. Market Growth

According to Global Industry Analytics global condoms market is forecast to reach 27 billion units and US$6 billion by the year 2015, driven largely by emerging economies of Asia, Middle East, and Africa. Condoms’ use specifically in countries like India and China is growing continuously, on account of strong economy, heightened public awareness about condoms providing protection against sexually transmitted diseases, and increasing population [6]. Commercial segment recorded a growth of eight per cent in 2012 [7]. Asia-Pacific market for condoms is forecast to register the fastest growth, both in value and volume terms, with a compounded annual growth rate of more than 6.0% value-wise during the years 2007 through 2015 [6]. Responding to the growing market and targeting the predominant youth demographic, MTV, a youth centric channel has entered the market in a tie-up with JK Ansell extending its brand with MTV Hardwear [8]. 2.2. SWOT Analysis

2.2.1. Strengths
Negligible raw material cost due to already available rubber plantation Latest high precision machinery and testing facilities
Emphasis on Image differentiation
Differentiation through complementary customer services
2.2.2. Weaknesses
New entrant in the market which is already fragmented with a large number of manufacturers Huge capital investment due to costly machinery and testing facilities Economy of scale is the biggest issue in this industry as mass production is required to incur profits Threat of Substitutes

2.2.3. Opportunities
Huge potential in India due to growing awareness about safe sex and demographic dividend Expanding operations in other emerging markets
2.2.4. Threats
Intense competition could lead to loss of market share
Entrance of new and innovative product like unrolled condoms or spray-on condoms may revolutionize the industry and pose a threat to the existing Latex condoms. 2.3. Competition
In a generic sense all the companies providing contraceptive measures – male & female condoms, birth control pills and Intrauterine devices form our competition. Specifically for our target segment companies Durex, Kamasutra, Skore and Moods form direct competition. Competitor Analysis and their Value propositions:

Durex
Target Segment: Youth; Age: 16-25 Positioning: Category experts and thought leaders; Branding as products for ‘Sexual wellbeing’; Appeal to the emotional aspects rather than the functional aspects of their offerings. Kamasutra:

Target Segment: Youth; Age: 18-35; Positioning: Bold and edgy advertising that redefined condom marketing in India. Very Sensual. Focus on pleasure, with taglines like ‘for the pleasure of making love’, ‘what do you want to be tonight?’ etc. Skore:

Target Segment: Youth; Age: 18-25; Positioning: Focus on youth and naughtiness, with tagline like ‘good news for bad boys’ and ‘a lot to be won’. Aggressive marketing strategy that ensured rapid growth. Moods:

Target segment: Youth; 18-35; Positioning: Market leader with various sister brands including successful ones like Moods and Kohinoor; Focusses on presenting the picture of a happy young couple. Also focuses on emotional and fun aspects rather than sensual ones. Birth Pills:

The Birth Pill is an over the counter emergency female contraceptive, the market for which is growing at a rate of 25-30%. This high growth has been the reason for a lot of frenetic market activity, including the acquisition of Cipla’s i-pill by Piramal at a high premium. Intrauterine Devices:

It is a small device, often ‘T’-shaped, and is a long-acting reversible contraception that is one of the most effective types of reversible birth control. Commands only a small portion of the contraceptive market. 2.4. Product Offering

We have designed our portfolio based on customers changing requirements. Consumers are always searching for something new and our portfolio offers a balanced mix of traditional and new products of superior quality. 1) We are offering traditional Flavored, colored and dotted condom to serve our customers. Our offerings include three flavors-Chocolate, Strawberry and banana flavors based on customer requirements. 2) Marathon condoms-They have a layer of a topical anesthetic on the inside which will increase duration and pleasure. 3) Ultrathin condoms- These are very thin and reliable condoms which will increase the sensitivity and will offer natural sensation. 4) Double lubrication condom-This is our unique offering which is not easily available in the market. We are maintaining parity by offering traditional products and differentiating ourselves with Double lubrication condom. 5) We will be offering specialized packages for special occasions like Valentine’s Day. Customer will have choice of customizing product and will themselves choose the bucket of products they want. Attractive packaging will add to the value of the occasion.

2.5. Key Success Factors
There is a huge market potential in the Indian contraceptives industry. Based on our assessment of the past success and failures in this domain and its future requirements, the key success factors in this industry have been identified as: Vast product offering

Need to constantly look for new ways to reach out to consumers, including modern tools like social media Need to use latest technologies that can improve customer experience and bring uniqueness to the product Need to appeal to women to make them ensure usage of Glove condoms by their partners Need to ensure low raw material(latex) costs to protect bottomlines Constant innovation in Product offerings and marketing strategy Adequate returns to retailers, to ensure they push Glove condoms to customers over other brands. 2.6. Critical Issues

Lack of awareness
Oligopolistic market(domination of market by few players)
In conservative societies like India, condom marketing faces severe social restriction/limits, and message needs to be within certain boundaries Constantly increasing competition due to entry of new players Pessimism towards condoms efficiency: ‘what can happen to me?’ Reducing embarrassment between buyers and sellers

3. Marketing Strategy
3.1. Mission
To create a brand that is synonymous with Quality & Reliability with a brand attitude of ‘Being Smart.’ 3.2. Marketing Objectives
To design a marketing strategy and a brand image of ‘Being Smart & Being Responsible’, which is the mantra of this generation, and be perceived as a Cool brand. To deliver value to customer by proper packaging

To gain a market share of 8% in 5 years.
3.3. Financial Objectives
Recover initial capital investments within 5 years of operations. Generate profits for capacity expansion in future years.
Generate net profit from first year onwards
Generate enough revenues from first year onwards to support the increasing advertising, wages, and other expenses. 3.4. Segmentation
The condom industry can be broadly categorized into 3 segments: Free, Social Market (Subsidized products), Commercial Market. Our brand focuses on commercial segment. Further the commercial segment can be divided on the basis different factors like, urban-rural, age groups, income levels and education.

Urban-Rural
Free and Social market campaigns are the predominant contributors to the rural markets. 60% of total condoms used in rural areas are from the free and social condom campaigns and only 13% comes from the commercial segment. While in urban areas 39% of the total condoms come from commercial segment.

Age Groups
The condom users can be divided into the following age groups:

Age 15-19: Consists of high school and college students. 22% of the sexually active men in this segment use condoms. This can be attributed to the sexual education and awareness imparted to teens by schools and other media.

Age 20-24: Consists of senior college students and recently employed. 12% of the sexually active men in this segment use condoms. Although the percentage of condom users among sexually active men is lower in this segment, this is a very lucrative segment owing to its sheer size. With changing attitude towards sex in India and influence of the western culture, the market scenario is fast changing. Although there hasn’t been enough adjustments in terms of approach and offerings to this segment from the existing brands. It is exactly this gap that we are trying to fill in. By providing them with Quality products and try to brand ‘Quality of experience’ as a parameter to consider in the product selection. For the younger generation, apart from the quality of the product, appeal to them by a clean design and packaging, with a tint of wit and fun, that being the image we are trying to acquire for our brand. 3.5. Target Markets

The marketing plan for G.Love focus on following two segments of target population. College students (18-24 years)
Corporate people (25-35 years)
who are becoming more aware and concerned about personal health and safe sex.

3.6. Positioning
Although there are brands, which are targeting the same target segment, most of them position themselves with sensuality as their main theme. Pre – 90s, condoms were mainly marketed as Safe sex & birth control tool, with mundane ads. In 90’s, with KamaSutra taking a very sensual take on positioning and setting up a brand image, this has become a norm then onwards. With the changing culture and globalization, customer sensibilities too have changed. Although there hasn’t been much change in the way customers are approached. Sensuality is still the main idea in most of the condom adverts. This need not be the only way this market can be approached. Customer would definitely look forward for a brand that understands his sensibilities and makes products for his need and not for some poor chap seducing some fine lady in midst of a wedding. Moving away from this norm, we want to position ourselves as a brand that understands the sensibilities of its consumer and delivers products Our target consumer is an intelligent guy who appreciates a premium product that connects with him on an intellectual level rather than just in a primal sense. We don’t communicate the aspects of AIDS, birth control to the users; they are already aware of that. Rather for people who are using condoms for birth control, we attract the attention of female partners of the users to ‘be smart’ and use condoms instead of pills, for the obvious complications with the pills. We guarantee a high quality product that comes in a clean and clutter free packaging

Differentiation:
1) For College Youth

Pricing & perceived quality: In India this is the age in which people usually start using condoms and for the people in this age group the quality of the product is much more important than the price. We differentiate our product by creating an overall branding about being a Quality product. Moreover the pricing of our products promotes a perception of a quality product because of a high correlation observed in perceived quality v/s pricing.

Design and Packaging: We position ourselves as a premium ‘Smart’ brand. This is reflected in the design and packaging. To start with we looked at what are the basic flaws in packaging of the existing designs. In case of packs of 10, the typical packaging comes in a tear open style box or top open box. Pack of 10 is typically meant for use over a week(s). Hence we designed our packing keeping this in mind and went with an easy to use packaging; A match box type design. We kept the design of our brand and packaging very minimalistic with emphasis on a neat yet powerful design. Customization (First time in India): We added an assortment of designs on our website to choose from for a customized cover and a ‘design your cover’ feature on our website which lets customers design their own covers for condoms. Firstly, the percentage of customers who will use this feature in the current market will be very low, although if we look at it in the long-term perspective this feature becomes a big differentiator. With the growing online presence and people becoming more experimental, by providing them a platform to design their products essentially gives them to personalize their products. The same aspect is highlighted in the advertising and associates with the brand being a Cool and smart brand. This also helps customer develop a sense of brand identification and helps in building brand image. Plus this feature also helps increase on-site time and helps increasing online sales. Moreover this feature comes almost at a very minimal cost, compared to the premium being charged for the customized product. A similar model has been adapted by an e-commerce site sayitwithacondom.com for condoms, which makes customized packaging for customers and had a huge success with having shipped to 62 countries, with more than 1,000 retail stores carrying their product [a]

2) For young working individual (In a relationship):

Focus on partners: For customers in this segment, partners play a considerable role in the decision making process of purchase of a condom. We acknowledge this fact and address this directly in our “Be Smart” Campaign, where the focus is on addressing issues related to women and the contraceptive usage; promote condoms as a better contraceptive measure compared to other means like morning pill etc. and all through the campaign ensure brand identification to gain brand attachment with the fairer sex. 3.7. Strategies

Our brand positioning is that of a company that makes premium quality products for customer needs and delivers them the same with wit and in a clean design. Now to achieve this, firstly the product range has been selected keeping in mind the needs of the consumer market, secondly to achieve design aspect, the whole of branding, right from the selection of brand name, packaging, message in adverts need to deliver that message in an intelligent way. Branding Strategy:

Pre launch of the product we would conduct a national wide campaign to start building a foundation for the brand. Start building a brand image with youth by the ‘My Glove’ Campaign aimed directly at the college youth, with a message ‘Celebrate your first love’ – custom designs. Conduct 6- city college workshop program – Delhi, Mumbai, Bangalore, Hyderabad, Chandigarh and Kolkata. Forming campus ambassadors and terming them as Mr. Smart/ Ms. Smart, who are encouraged to promote safe sex in their colleges, with whom we will be coordinating for year long activities. ‘Be Smart’ campaign aimed at addressing the issues of female partners and the adverse effects of not using condoms and urge people to be smart and make smart choices. A series of advertisements that emphasizes the importance of making smart choices in critical situations. The whole of advertisement campaign is designed to deliver the message in a witty & humorous way. All the campaigns are aimed at creating a brand image with the specific target segments they are targeting and create a value perception among the TG.

3.8. Marketing Program
Pricing

Distribution
Distribution channels
Promotion
The major communication channels will be used for brand promotions. Pre- launch of the brand, a national wide campaign to start brand building with various activities. 6-city college workshops, ‘My Glove’ Campaign and ‘Be Smart’ campaigns through out the first year. Promote online sales by giving discounts. Giving out 10 custom designed packets free for every 200 custom design sales and promoting online channels. Product

Customer

3.9. Marketing Research
___ will continuously keep track of all the major research on quality improvement in Natural Rubber Latex and other different innovative technologies coming in the market in condom market. It will also take customer feedback on a timey basis to know about their preferences and problems faced by them in order to improve the product.

4. Financials
Financials for G. Love have been projected for the first five years of operation. Some of the underlying assumptions and calculations are explained below: 1. Plant, Machinery, Equipment and Building:

For setting up a condom manufacturing factory, following machines are required: Condom Dipping Machine
Testing Machine
Packaging Machine
Tensile Testing Machine
Pinhole Testing Machine
Electrical Testing Machine apart glass molds.
Estimated cost of setting up a factory manufacturing 40 million units of condoms is US $850,000 [9]. The projected sales for year 5 are around 70 million units. We have decided to install capacity such that no capacity expansion is required for the next 5 years. Thus the total machinery cost would be US $1,700,000. Equipment and machinery would be imported from outside India. The construction cost of the building is taken as Rs. 10 crores. 2. Land: Land includes space for factories and warehouses. For factory setup and warehouses, land of area 5000 sq.m. will be purchased. 3. Total Market Size (Volume):

In 2012, the commercial segment of the condom industry amounted to 800 million units. The segment registered a growth of 8% in 2012 [10]. Hence, the number of units sold per annum has been projected assuming that the industry experiences a similar growth in future. 4. Target Segment Size:

5. Market Share: Skore captured a market share of 4% in the first six months of its launch and is optimistic to capture a 10% market share in the first 18 months. Its target segment is male users in 18-25 age group [10]. Our product is targeting urban males in 20-35 age group. After calculating the size of our target segment, we have assumed that we will gain a market share of 5% in the first year in our target segment. Subsequently we assume a 2% increase in the market share for the next five years. 6. Pricing:

Channels
% Sales
Price of 3 (Rs.)
Price of 10 (Rs.)
Average price (Rs.)
Margins given
Revenues (Rs.)
Online
10%
37.98
113.94
12.41
10%
11.17
Private Sector
90%
42.20
126.60
13.79
20%
11.03
Table 1: Pricing Calculations for year 2014
For calculating Average price, it is assumed that 20% sales comes from packets of10, 80% sales comes from packets of 3. Average Revenue per unit for year 2014: Rs. 11.04
Prices have been adjusted for inflation at a rate of 8% for future years. 7. COGS: 1 For producing 10 million units of condoms, 100 ton of latex is needed. Market price of 100 kg of latex is Rs 16000. We have our own rubber plantation and it is assumed that after deducting the total cost incurred in extraction, processing, and transportation, it only costs us Rs. 8000, which is 50% of the market price. In addition to this, packaging costs are taken as Rs.1 per unit [11]. Thus the cost of goods sold is determined. 8. Depreciation:

The useful life of machinery and building is assumed to be 10 years and depreciation is calculated using the straight line method. 9. Salaries and Wages:
For a factory with capacity of 120 million units, 150 employees are required. In the first year, the utilized capacity will be around 30 million units. Therefore it is assumed that 40 employees will be sufficient for factory operations. Taking an average salary of Rs 1 lac p.a. for them, total labour cost is estimated to be Rs. 40 lacs. Additionally, Rs. 7.5 lacs p.a. are set aside for 8 founding partners bringing the total salary expenses for the first year to be around Rs. 1 crore. Adjustments are made in future expenses after incorporating inflation and capacity expansion. 10. Advertising:

Advertising will be done using following media:
Tele ads: Cost of a 10 second commercial in a prime time slot on Star TV is Rs 1.0 lacs [12]. We are planning to air three advertisements a day, 1095 times a year. Print Ads: Cost for a page 3 ad in TOI, national daily is around Rs. 4400 per sq. cm [13]. Assuming that a 12×20 cm print ad is displayed 104 times in a year (twice a week), cost of print ads becomes Rs 5 crores for a year. Social media:

Hoardings:
With increasing sales, advertising expense is increased at a 20% rate. (adult magazines) 11. Other expenses: Other expenses include utilities cost, electricity expenses, customized packaging costs etc. 12. Interest: Initial funding of Rs. 40 crores is taken as a loan on 10% p.a. interest rate. 13. Discount factor: 8%

5. Controls
5.1. Implementation
5.2. Marketing Organization
5.3. Contingency Planning
Difficulties and Risks
Worst Case Risks

1) Customer feedback- Important to understand satisfaction level of customers 2) Online sales Vs Store sales-
3) Customer awareness -Advertising effects- How effective our advertisements are? Is perceived version matching with our version of product 4) Expenses-
5) Revenue-
6) Change in strategy by competitors- Are they changing strategy for online selling? 7) Promotion costs might go u

Cite this Launch of a Condom Brand in India

Launch of a Condom Brand in India. (2016, Jul 24). Retrieved from https://graduateway.com/launch-of-a-condom-brand-in-india/

Show less
  • Use multiple resourses when assembling your essay
  • Get help form professional writers when not sure you can do it yourself
  • Use Plagiarism Checker to double check your essay
  • Do not copy and paste free to download essays
Get plagiarism free essay

Search for essay samples now

Haven't found the Essay You Want?

Get my paper now

For Only $13.90/page