DUREX’S MARKETING STRATEGY IN VIETNAM LAB University of Applied Sciences Bachelor of International Business 2021 Hien Dat, Nguyen Abstract Author(s) Nguyen, Hien Dat Type of Publication Bachelor’s the[.]
Thesis topic
In developed nations like the US, Western Europe, and East Asia, the condom market has long been established, making condoms an essential aspect of sexual health Governments and international organizations promote condom use in developing countries, where HIV/AIDS and other sexually transmitted infections are prevalent A decade ago, discussing sexual health was taboo in Vietnam; however, societal progress has fostered a more open attitude toward sex and condom use This shift in perception has encouraged domestic condom manufacturers to focus on the growing market for these vital products.
The Vietnamese market features a variety of competitive condom brands, predominantly imported, including popular names like OK from Malaysia, Strait from Russia, Okamoto from Japan, Trojan from the USA, and Durex from the UK Among these, Durex, produced by Reckitt Benckiser, stands out as the most recognized and widely shared brand in Vietnam, gaining significant attention in both the press and online platforms.
150 nations in the world The brand is so prevalent that in the United Kingdom, its origins,
The phrase "people do not say condom, they say Durex" highlights the significant role of condom products in human life While Durex may not be the cheapest option on the market, its superior quality ensures consumer satisfaction, comfort, and safety As one of the most recognized condom brands globally, Durex commands approximately 30% of the market share, reinforcing its reputation for excellence in sexual health.
In the era of globalization, competition among companies is intensifying, leading many to prioritize effective marketing strategies Recognizing the significance of well-structured marketing efforts, businesses are increasingly allocating larger budgets to attract customers and enhance sales.
A well-crafted marketing strategy is essential for companies to achieve a competitive edge and enhance profitability In Vietnam, the Durex team faces the dual challenge of competing against various brands while also promoting their products in a culturally sensitive and skillful manner that resonates with local values.
Goals and Objectives
This thesis aims to analyze Durex's company profile and its business environment in Vietnam, focusing on the challenges of marketing sex-related products in a culture where sexual activity is a sensitive topic It highlights the difficulties Durex faces in promotion and advertising while demonstrating that leveraging ongoing social media trends can enhance engagement, particularly during the current Covid-19 pandemic.
Methodology
This thesis emphasizes a comprehensive literature review and qualitative research, utilizing public data and online advertising from Durex in Vietnam The literature review aims to gather essential information about Durex and the Vietnamese market through company and situation analysis, while the qualitative research will explore marketing strategies, audience engagement, and customer experiences.
Company analysis
Current status
Durex, a renowned global condom brand, was established in London in 1915 by L.A Jackson The brand name, adopted in 1929, stands for "Durability, Reliability, and Excellence," reflecting its commitment to quality and safety in sexual health products.
In the late 1970s, condoms became widely available in supermarkets and convenience stores, driven by growing concerns over AIDS and related diseases By the early 2000s, Durex had expanded its reach to over 50 countries, establishing itself as one of the leading condom manufacturers with a global market share of approximately 30% since its inception in 1915 In Vietnam, Durex holds a dominant position in the condom market, closely followed by the OK brand.
Durex continuously evolves its products to align with emerging trends in sexual behavior, ensuring customer needs are met while prioritizing product quality The company recognizes the vital role of sex in psychological, physical, and mental well-being, advocating for a healthy and safe sexual lifestyle for all.
Durex has established local websites in each country, offering pages tailored to the local language and culture These platforms serve as valuable resources for sex education, enabling visitors to seek expert advice, access detailed information about Durex products, and discover sponsored events.
Durex, a leading brand in the condom market, operates as a subsidiary of SSL International, a multinational corporation specializing in medical and consumer healthcare products In Vietnam, Durex achieved sales of approximately $20 million in 2012, demonstrating a consistent growth rate of 10% to 15% annually (Vinaresearch, 2017) Since entering the Vietnamese market, Durex's marketing campaigns have established it as a formidable competitor.
Future Orientation
The condom market is increasingly competitive, with a growing number of brands and stagnant sales due to alternative contraceptive options Durex, a globally recognized condom brand, seeks to enhance its market share and surpass competitors The brand is also committed to promoting safe sex awareness through sexual health initiatives and partnerships with governments and organizations in developing countries to address related issues.
Situation Analysis
Market Overview
In this section, the report will provide key market features, in terms of macro and microen- vironment, as a result, provide Durex value insights to make appropriate business deci- sions
The macro-environment encompasses the overall state of the economy, influencing factors such as gross domestic product (GDP), inflation, employment, spending, and monetary and fiscal policies Unlike the performance of individual business sectors, the macro-environment is intricately linked to the entire business cycle, affecting how firms and industries thrive within these conditions Macroeconomics focuses on mass production, spending, and price levels rather than specific markets Analyzing the macro-environment is essential for strategic management, with tools like PEST (political, economic, socio-cultural, and technological) analysis helping business analysts identify current and potential macroeconomic factors impacting future business success.
The macro environment significantly influences businesses, particularly those that are cyclical and rely on the overall health of the economy Industries dependent on credit for financing purchases and corporate expenses are especially affected by fluctuations in interest rates and global financial markets Additionally, the macro environment shapes consumer spending habits, which can greatly impact sectors like luxury goods and high-ticket items Businesses and economists closely observe consumer reactions to these macroeconomic factors as indicators of economic health.
As of 2019, Vietnam's population surpassed 90 million, ranking thirteenth globally and constituting 1.26% of the world's total population (Worldometer, n.d) Notably, nearly 29% of this population falls within the millennial age group of 25 to 45 years This youthful demographic presents a significant opportunity for Durex, as condom usage is predominantly associated with early adulthood and married individuals, potentially driving increased sales in the region.
Vietnamese awareness of contraception in sexual behavior has significantly increased due to improved education Generation Y, having grown up amidst rapid technological advancements and globalization, has contributed to higher incomes and a more comprehensive education in Vietnam.
The projected increase in the male population, expected to reach an excess of 2.3 to 4.3 million by 2050, presents significant sales opportunities for Durex, as men are the primary consumers of their products (MarketLine Country Profiles, 2017) This demographic trend underscores the potential for growth within the economic environment, positioning Durex to capitalize on the expanding market.
Following the 2008-2009 recession, Vietnam experienced significant economic growth, with its GDP rising from 99.13 billion USD in 2008 to 245.2 billion USD in 2018, creating numerous opportunities for foreign multinational companies This economic expansion has notably improved the living conditions of the Vietnamese population, driven by a substantial increase in national output The remarkable economic performance is a key factor contributing to this enhancement in quality of life.
Vietnamese consumer spending is experiencing significant growth, with consumer confidence reaching a record high of 130 in the third quarter of 2018, according to Nielsen This surge indicates that brands like Durex are benefiting from increased purchasing power among consumers.
Consumers still put a top priority for their health and lifestyle, according to Nielsen (Nielsen,
In 2018, economic growth enabled Durex to enhance its revenue and income, as approximately 40 to 45 percent of consumers sought products that meet their essential needs.
Following the outbreak of the Covid-19 pandemic in Vietnam, the government swiftly collaborated with local healthcare centers to implement strategies aimed at curbing the spread of the virus Key measures included closing borders, quarantining travelers, and enforcing a lockdown in Da Nang, the epicenter of the second wave of infections These proactive steps were taken to ensure a rapid recovery of economic activities As a result, Vietnam's real GDP growth is projected to rebound to 7.0 percent in 2021, reflecting a resilient economy that managed to grow by 1.8 percent in 2020 despite the challenges posed by the pandemic.
The economic challenges in Vietnam have led consumers to prioritize grocery spending, impacting Durex's sales However, recognizing that sex is an essential aspect of life, Durex actively engages in social media marketing with entertaining content to boost sales and uplift the spirits of the Vietnamese population during these tough times.
Vietnam has implemented various policies to attract foreign companies to transfer technology, aiming to foster advanced technological absorption These initiatives seek to generate employment, alleviate hunger, and reduce poverty, while enhancing the living standards of its citizens Additionally, they aim to create a conducive environment for the development of human resources in the country.
In mid-2018, Vietnamese authorities partnered with organizations like the Asian UNPF and Pacific Ocean UNPF to launch nationwide campaigns aimed at promoting family planning and increasing awareness of HIV/AIDS prevention, addressing critical issues in the country (UNFPA Vietnam, 2018) Consequently, Durex enjoys a significant advantage in the Vietnamese market, as its products are viewed as essential solutions for preventing unwanted pregnancies and sexually transmitted diseases.
The Ministry of Health in Vietnam has actively promoted free condom distribution campaigns aimed at preventing HIV/AIDS and promoting sexual health, which may impact Durex sales.
Political considerations can be considered as a chance for Durex to increase sales or draw more customers, but also posing a risk of the government imposing a free-condoms scheme
The Vietnam Ministry of Commerce has reduced the importing tax from 17.4% to 13.4% over five years, benefiting companies like Durex that import condoms from their Thai factory Despite the pandemic-related closure of airlines and borders, alternative transportation methods remain available for international brands to export their products to Vietnam Consequently, the supportive policies of the Vietnamese government enable Durex to maintain a steady supply to meet the demands of the Vietnamese market during challenging times.
Vietnamese culture tends to discourage open discussions about sex, yet individuals are actively engaged in sexual relationships Pre-marital pregnancies are particularly stigmatized among Generations X and Y, leading Generation Z to seek reliable methods for addressing their sexual health needs According to Vinaresearch (2017), condom usage is the preferred method of pregnancy prevention among young adults in Vietnam By targeting this demographic with effective communication campaigns, Durex has the potential to significantly increase its sales.
Market trend and Evolution
In 2020, Vietnam saw three key consumption trends: health and hygiene awareness, the rise of e-commerce, and a preference for convenience The impact of Covid-19 significantly influenced these patterns, as social distancing measures and health concerns led to an increased acceptance of online shopping among Vietnamese consumers Durex effectively adapted to this shift by promoting safe sex and enhancing its online presence, enabling the brand to stay connected with customers and sustain steady sales during challenging times (Huong, 2019).
Marketing Strategy
Objective
Durex is committed to promoting responsible sexual health and awareness of safe sex practices globally By developing and supporting sexual health initiatives, they aim to distinguish their brand in the market while enhancing sales efficiently on a limited budget.
Durex aims to increase awareness among single males aged 18 to 34 by highlighting its innovative product developments focused on customer satisfaction Additionally, the brand plans to enhance its marketing strategy by boosting the number of sample sales for new product launches, ensuring a broader reach and engagement with its target audience.
Segmentation
Market segmentation involves dividing a target market into smaller, well-defined categories based on demographics, interests, needs, or geographic location This process is crucial for businesses as it helps them concentrate their marketing efforts on the most valuable customers, ultimately achieving their objectives By understanding their customers' specific needs within each segment, companies can identify which products or services will best satisfy those requirements.
Age Young and inexperienced cus- tomers
Older and experienced custom- ers
This demographic consists of young and inexperienced individuals who are just starting their sexual journeys They are learning the importance of using condoms to prevent unwanted pregnancies and protect against sexually transmitted infections.
People in this age groups are ma- ture and experienced customers
There is a growing demand for high-quality and safe products among consumers, particularly among those who prioritize comfort and sensation during use.
Table 2: Age segmentation of experienced customers
People in rural areas have little knowledge about contraception measures Their mindset is lim- ited
The distribution network of con- dom is limited
Citizens acquire more knowledge about sex and contraception measures
Income Middle income High income
Income of this age group is below
5 million dong/month in average
Income is above 10 million dong per month in average
Young and experienced cus- tomers
Older and experienced custom- ers
Well aware of love as well as sex education
Well aware of love as well as sex education
People who are opened-minded and knowledgeable about sexual safety and contraception measures
More concerned about quality and experience when using the product
They have tendencies to take part in parties and events, which may have alcohol and sex
Frequently go online to search for information before buying, influ- enced by advertisements, pack- aging, and creative design of the product
Table 5: Behavioural patterns segmentation of experienced customers
Young and new customers Old and new customers
People in this group may have sex not frequently but in certain occasions, such as holidays or when they have high sexual needs
These people do not use condom very frequently, but favour other methods such as contraception implant, due to high frequency of having sex
The benefits expected by this group are to avoid unwanted pregnancy and sexually transmit- ted diseases
The benefits expected by this group are to avoid unwanted pregnancy and sexually transmit- ted diseases
They may be regular user, be- cause of the high prices and com- plexity of other contraception measures
These are married couples and non-regular users Their loyal sta- tus is low and medium
Table 6: Behavioural patterns segmentation of new customers.
Targeting
Based on the above segmentation the target customer of Durex should be male, aging from
Condom usage is prevalent among individuals aged 20 to 30, who are particularly attuned to sexual behavior While Durex products are designed for a broad audience, they resonate less with those over 35, as this age group is more likely to be in long-term relationships or married and may prefer alternative forms of protection.
Differentiation
Durex distinguishes itself from competitors through a unique product marketing strategy focused on public content connection (Content PR) Their advertisements, whether on TV or social media, effectively capture the attention of thousands, embodying the company slogan "Feeling is everything." The success of the Durex Vietnam PR team is evident in their ability to leverage special opportunities and current social media trends, as demonstrated by their impactful marketing during the 2019 Hanoi Summit, which promoted a message of peace.
Durex prioritizes high-quality products in its promotional strategies, which contributes to its average prices being higher than local brands in countries like Thailand and Japan Despite these elevated prices, Durex enjoys strong customer loyalty, thanks to its solid reputation and commitment to product quality The brand consistently emphasizes quality over quantity, having only removed a substandard batch once in 2018 Durex's successful presence in the Vietnamese market further underscores its dedication to excellence.
2016 gross Durex condom income is 20,000,000 dollars This rate grew significantly in 2017 by roughly 30% Last year, the total number of condoms Durex sold in Vietnam was 4.2 million c Packaging
According to the ODM Group, Durex's packaging is a key strength that attracts and retains customers, setting it apart from other condom brands Research indicates that consumers typically prioritize packaging when selecting products, and for young adults, eye-catching designs significantly influence their purchasing decisions.
Positioning
Durex positions itself as a brand dedicated to the emotional and sexual wellbeing of couples worldwide, transcending its identity as merely a condom manufacturer By emphasizing the emotional experiences and feelings of its customers, Durex offers a diverse range of products that cater to various preferences, including different thicknesses and scents The brand features 16 distinct condom products, incorporating elements such as gel support, ribbed and dotted textures, and flavored options, ensuring a comprehensive selection for enhanced intimacy.
Figure 1: Thickness comparation in general (Author)
(Brands in order from left to right: VRT Excellent, Okamoto, Azodra, Power Man, OK, Durex)
When choosing a product, consumers should prioritize understanding its properties alongside packaging, particularly in the case of condoms, where thinness is a crucial factor A comparison of condom brands reveals that while Durex is priced higher than others, its thinness ensures customer satisfaction This premium product appeals mainly to middle-class young adults aged 16 to 35, making its cost justifiable for this demographic.
Figure 2: Scent comparison in general (Author)
(Brands in order from left to right: ONE, Okamoto, OK, Pretex, Durex)
Durex also confirms its role in condom production technology with two elements: "price" and
Durex condoms, particularly those with a strawberry scent, are highly valued by young and novice couples seeking new experiences and adventures By diversifying and enhancing their fragrance options, Durex aims to improve the sexual experience and emotional connection for these consumers, ultimately fostering greater brand loyalty.
Marketing mix
Durex's packaging stands out as a key strength that attracts customers, according to The ODM Community When buying products, consumers often prioritize packaging, and Durex's condoms, designed by Fesign Bridge, exemplify this with their vibrant colors and appealing design This visually engaging packaging not only reflects Durex's innovative capabilities but also enhances customer satisfaction, effectively persuading consumers to choose their brand over competitors.
Product labeling reflects the quality and characteristics that each product line offers to consumers For instance, the Durex Invisible Extra Thin, Extra Lubricated condom is labeled to highlight its key features, emphasizing its ultra-thin design and enhanced lubrication, which align with customer preferences and demands.
Durex condoms are available with many different features as a way of staying competitive and increasing distribution effectiveness
+ Comfort + Xxl + Extra sensitive + Natural feeling + Sheik sense thin
Table 7: Features factors Durex focuses on b Pricing strategy
Durex condom sales have consistently thrived, driven by the company's diverse and high-quality product offerings, along with strategic pricing policies Each product is tailored to specific demographics: younger consumers seek affordability, young adults prioritize convenience and are open to spending more, while middle-aged customers demand premium quality and are willing to invest for optimal results.
Durex has taken all of this into consideration and has implemented pricing policies that are affordable and reasonable for its users
Product line pricing involves setting distinct prices for each product line based on its perceived value and production costs This strategy helps convey varying levels of quality to customers, allowing them to easily navigate and select products within their preferred price range, with prices indicated in Vietnamese Dong (VND).
- Spines, tendons, floating seeds: 60.000-180.000VND
Product bundle pricing is a strategy that involves grouping multiple products into one or more combinations and establishing a single price for them For example, Durex offers bundle and pleasure sets that vary in price, catering to a range of budgets from low to high.
- Pleasure hunt combo 200.000VND (50% sale off): Pleasure Ring 1 Pack, Play Little Devil Vibrating Cock Ring, Thrilling Touch Stroker Vibrator
- Spring to sex combo: 320.000VND (46% sale off): “Durex Extended Pleasure Con- doms 12 Pack”, “Durex Emoji Thin Feel Condoms 12 Pack”, “Durex Emoji Pleasure
It is typical that combo's price less than the total cost of the items that make up the combo
On the other hand, Durex’s been applying discounts and allowances on products to intro- duce new products that have lower price but still ensure quality:
• Discount: Bill discount, cash discount, seasonal discount
- Ex: Customers using discount code get exclusive sale-off
• Allowance discount: The manufacturer pays a sum of money to retailers to accept the manufacturer's products, as well as to support the management
• Reducing pricing to encourage customers to do things such as paying early or pro- moting the product c Promotion Strategy
Durex is significantly boosting its digital and social media marketing budget to foster deeper customer relationships, which has greatly enhanced its influence and popularity in the Vietnamese market Unlike competitors such as OK and Okamoto, Durex's strategic focus on customer interaction and engagement through official social media channels has set it apart, leading to a stronger brand presence in the region.
Durex leverages social media and digital marketing, particularly on platforms like Facebook, Instagram, Twitter, and YouTube, to engage with its audience The marketing team in Vietnam has successfully created a Facebook page that captivates the community through humorous and creative imagery that resonates with current trends By transforming a culturally sensitive product into one that is memorable and relatable, Durex fosters a sense of comfort among consumers Their latest advertising initiative features a World Cup campaign, while their viral videos are crafted with concise content that reflects a deep understanding of the psychology of potential customers.
Marketing communication strategies during Covid 19 period:
In the wake of the COVID-19 pandemic, digital networking has emerged as a crucial tool for promoting products and services safely and effectively Adapting to modern media is essential for businesses to stay relevant, enhance customer engagement, and build brand value Social networks, such as Facebook, Twitter, LinkedIn, and Instagram, serve both social and business purposes, providing marketers with a vital platform to connect with exceptional customers during these challenging times.
19 more than a year recently (Sotaydoanhtri, n.d.) Therefore, Durex has implant social marketing strategy successfully during this pandemic
Social media platforms are powerful tools for enhancing brand recognition, enabling businesses to target specific demographics effectively By leveraging these platforms, Durex can differentiate itself from competitors by cultivating a loyal following and attracting new customers However, due to the competitive nature of social media, it is crucial for the brand to produce and share informative, engaging content on the right channels at optimal times to capture audience attention.
During the COVID-19 pandemic, Durex launched a communication campaign titled “Let’s Not Go Back to Normal,” challenging societal norms that shame women for carrying condoms and men for avoiding them due to discomfort The brand sees this moment as a chance to reshape perceptions of what “normal” should be, advocating for a more open and accepting approach to sexual health and responsibility.
Figure 3: "Let’s not go back to normal" by Durex (Global, 2020)
Figure 4: Durex's marketing trend 1 in Covid-19 (Durexzambia, 2020)
The aim of this campaign is to encourage both women and men wearing condoms when having sex, just like wearing masks when going out
Figure 5: Durex's marketing trend 2 in Covid-19 (DurexVietnam, 2020)
Translate: Enough stock for 14 golden days (over 7400 interactions, 661 comments and
In response to the recent stockpiling behavior of Hanoi citizens amid fears of a lockdown, which left supermarket shelves bare, a message was shared emphasizing that Durex products will always remain available, even during a 14-day quarantine This reminder aims to reassure consumers that essential items, like Durex, can be relied upon during uncertain times.
Figure 6: Durex's marketing trend 3 in Covid-19 (DurexVietNam, 2020)
Translate: Don’t go out (over 1500 interactions, 158 comments and 33 shares) In the Covid-
In response to the COVID-19 pandemic, the Vietnamese government urged citizens to remain at home to curb the virus's spread During this period, Durex's campaign message, "do not go out," not only promotes public safety but also emphasizes the importance of practicing safe sex at home, highlighting the necessity of using condoms.
Figure 7: Durex's marketing trend 4 in Covid-19 (DurexVietNam, 2020)
Durex's impactful message, "Safety on top and bottom," emphasizes the importance of wearing masks to prevent virus transmission while also highlighting the necessity of using condoms for sexual safety With over 10,000 interactions, 642 comments, and 236 shares on their Facebook page, this unique marketing campaign effectively combines the imagery of a condom and a mask, creating a relevant connection to current health concerns while promoting their product.
Marketing communications activities that are strongly influenced by Vietnamese culture:
To succeed in the Vietnamese market, Durex needs to tailor its marketing communication strategy to align with local cultural values This localized approach enables the company to effectively engage with the audience, promoting its products while also conveying important messages about sexual safety in a culturally sensitive manner.
Figure 8: Durex's marketing post 1 suits Vietnamese culture (DurexVietNam, 2020)
Durex's humorous New Year's Eve message, featuring jubilant fireworks, quickly went viral, garnering over 6,400 interactions, 455 comments, and 150 shares on social media The clever wording resonated with audiences, leading to thousands of likes on Facebook and capturing the festive spirit of the celebration.
Figure 9: Durex's marketing post 2 suits Vietnamese culture (DurexVietNam, 2021)