Final report module marketing management topic marketing plan for durex in period of valentine 2024

In addition, Durex especially focuses on social marketing through unique sexual-health conscious marketing campaigns on social media platforms as shown by Figure 1 and 2 whereas Sagamoto

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND FINANCE

FACULTY OF BUSINESS ADMINISTRATION

UEF

UNIVERSITY OF ECONOMICS & FINANCE

FINAL REPORT MODULE: MARKETING MANAGEMENT

TOPIC: Marketing plan for Durex in period of Valentine 2024

Lecturer: Vong Chanh Kieu GROUP MEMBERS:

1 Đễ Cao Gia Minh: 215018823

2 Bùi Quốc Minh: 215016894

3 Nguyễn Thị Kim Ngân: 205011897

4 Nguyễn Thị Như Quỳnh: 205011851

5 Phan Bảo Thiên: 215041193

TABLE OF CONTENT

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an explosive and breakthrough plan Especially increasing the number of people interested in Durex's different platforms in the Vietnamese market And create a lot of meaningful content subtly, thereby bringing closer attraction between users to help achieve the goal of achieving increased sales revenue after operating the Marketing program for the 2024 Valentine's season.

2 Situation Overview

2.1 Overview of market and market trends

A Overview of Durex in the Vietnamese market

Politics and Law: Vietnam's import tax on products made of rubber, synthetic, and nylon fiber is 5% Durex is a product imported from abroad and belongs to this product group Import taxes have pushed product prices higher than direct domestic competitors Vietnam's Advertising Law stipulates that advertising sensitive products

is prohibited during the hours of 6:00 p.m - 8:00 p.m Durex condoms are one of the products on the list above Therefore, brands cannot use mass advertising channels to widely reach target customers

Economy: Vietnam's average income per capital increased by 3,000 USD/year The consumer confidence index is at a record high - 129 points Therefore, the ability to pay for products also increases Consumers tend to look for quality products from reputable brands for consumption Prices fluctuate continuously In particular, the prices of essential goods such as electricity and gasoline continue to increase Therefore, the proportion of income devoted to transient products decreases Consumer price sensitivity is high Consumers will consider more when products have significant price differences

Society and Culture: Vietnamese people consider issues related to gender and

sexual relations to be private, delicate and shy to talk about Therefore, it is difficult

for brands to use direct, public advertising about products and related issues

B Market trend

The three major consumption patterns in Vietnam in 2020 are: health- hygiene

literacy, e-commerce, and convenience Furthermore, the effect of Covid-19 in 2020

must be considered Because of social distancing and the fear of contracting Covid-19, Vietnamese consumers are becoming more receptive to online shopping Durex seems

to be on the right track Durex is able to keep in touch with its customers and maintain

a consistent sales figure by encouraging safe sex and going online

2.2 Overview of company

A History

Starting out as London Rubber Company (LRC) in 1915, the company produced and sold barber condoms and related accessories By the 1950s, due to the progression of technology, the name “Durex” was registered and launched its first-ever moist condom With continual development and research, Durex has diversified its products from flavors, shapes to sizes and materials to finally receive the “EURA Global Quality-seal” award in 1990 (Durex 2020) In 2010, Durex was bought by Reckitt Benckiser, an Anglo-Dutch company specializing in health-related products, and continues to grow With years of not just selling but also advocating for sexual health, Durex has become one of the most popular brands today (Mordor Intelligence 2019)

B Reckitt Benckiser

Owned Reckitt Benckiser (RB) is a well-known giant owning popular brands such

as AirWick, Clearasil, Lysol and Durex The company claims to “protect,heal and nurture individuals, families and communities, to live cleaner and healthier lives

through our products and educational initiatives” and has lived up to their mission statement through creating various charities and educational programs This includes HIV and AIDS prevention programs (Benckiser 2018) and Save the Children (Lake & Lake 2013) Their positive reputation came with its success as in 2020, RB has seen a 10.8% increase in net revenue of £6,911 million due to the heightened demand for hygiene products Although holding many big brand names under its belt, RB is well- known for the following products in Vietnam: Strepsil, Gaviscon and Durex (Lam 2020)

C Durex

Durex, owned by RB, produces condoms, lubricant, massage gels and devices

However, with over 80 years of experience in manufacturing, male condoms remain as the main product of Durex as shown by their website (Durex 2020) Durex claims that their core mission is to “inspire people to take responsibility for their sexual health” (DurexNetwork 2020) as well as making sex “open, honest, messy and fun” (RB 2018) With their eye-catching and sometimes controversial advertisements, Durex has become the world's best-selling condom brand which accounts for 30% of the condom market (Mills et al 2016)

2.3 Competition Analysis

Durex competitors are mostly direct as male condoms are the most used contraception method(85%) preferred in Vietnam Durex's two main competitors are Sagami and OK condom which dominate the “cheaper” end of the condom price range (Vinaresearch 2017)

& Naughty Chocolate

Saga

Xtrem aN

Pack of 10 ~ 150,000 VND | Pack of 12 ~ 17,400 VND Pack of 3 ~ 50.000 VND Price of 1 ~ 15,000 VND Price of 1 ~ 1,450 VND

However, Durex differentiates itself through distinct “global-quality” (Durex 2020) and international reputation to effectively justify its higher price In addition, Durex especially focuses on social marketing through unique sexual-health conscious marketing campaigns on social media platforms as shown by Figure 1 and 2 whereas Sagamoto and OK condom falls behind in brand awareness (Vinaresearch 2017) This emphasizes Durex’s commitment to their motto of “fun sex” as well as their mission

to promote sexual health

These factors allow Durex to focus on their target demographic: the urban working class and the upper-middle class (Bhasin 2019) efficiently Main indirect competitors include pregnancy prevention pills (normal and emergency) (28.8%) and NuvaRing (12.6%) (Vinaresearch 2017) However, Durex is unlikely to suffer a great loss from these competitors as condoms are the easiest and cheapest option available

Furthermore, the mentioned methods are considered “medical” and “last-resort” by most and therefore will hold a much lower place in customer perceived value Another indirect competitor is counterfeit condoms with the same packaging as Durex Invisible but of much lower quality (Vietnamese Law Blog 2019) These counterfeit products in the market do not just affect Durex’s brand image, but also decrease the brand loyalty from customer’s bad user experience

2.4 SWOT Analysis

2.4.1 Strengths

- Largest brand in the global condom market shares (30%), position as market leader

- Strong background and experience in the condom industry even after changing several parent companies

- Change in vision allows Durex to grow with changing customer needs - “more on emotional aspects than functional aspects”

- Stays true to its mission statement and brand image consistently through marketing and branding

- Trendy, relevant marketing campaigns on a variety of social media platforms which successfully engage the target demographic of Gen Z and Millennials

- Wide variety of products: two flavors, six different thickness of condoms, and six

2.4.2 Weaknesses

- Strong advocacy for sexual health may reduce market share comparatively: This increases awareness for the whole condom market and therefore result in higher sales

that are more familiar with them

- High price: To maintain its production quality and brand image, a higher price is charged for its "taste" (Durex Sensual-Naughty) in comparison to popular brands that offer similar products

- Increased education quality: People are educated about sex and encouraged to discuss these topics This allows for open discussion and helps people that need condoms to comfortably buy them without feeling embarrassed

- Government policies align with Durex’s core mission: To protect those at risk, prevent abortions, and prevent overpopulation These policies allow Durex to market their product effectively to Vietnamese consumers who are already accustomed to 2.4.4 Threats

- Competitive prices with the same product offered that can serve consumers the same needs

- Counterfeit products under Durex brand name when there are 47% of the International branded condoms are widely sold in Vietnamese market (Vietnamese Law Blog 2019)

- Recent social distancing due to the pandemic can affect the number of using condoms

3 Marketing Objectives

These are the specific goals that the company aims to achieve through its marketing

efforts, such as increasing sales, brand awareness, or market share

Objective Marketing the Durex Sensual Strawberry & Naughty Chocolate flavored product line

A Increase sales revenue

The goal after implementing the Marketing strategy for the Valentine 2024 season is that after 3 months of preparation and approaching the program, the revenue of the product line with the Sensual Strawberry & Naughty Chocolate position will increase

by 50% compared to current revenue

B Increase customer reach on social networking platforms

Durex pays attention to the level of customer interest on social networking platforms

such as TikTok, YouTube, Spotify, and the official Durex fanpage in VietNam

< Durex Vietnam Official Q 2>

6 aes a Bài Vài Người theo dõi Đang theo dõi

Trang TikTok chính thức của Durex Việt Nam

Website: www.durexvietnam.vn

=a 7 Trang Instagram chính thức của Durex

Durex Vietnam's tiktok and instagram channels

With the current TikTok and Instagram platforms, Durex does not have much interest

in creating groundbreaking and viral programs, paying attention to regular investment

in the TikTok platform Therefore, the goal after implementing the Marketing strategy during the Valentine 2024 season is to increase TikTok’s interest from 46.9K followers

to 200K followers

On the Instagram platform, it is expected that within 2 months of implementing the Marketing program, the number of posts will increase by 20 posts, and implementing

a promotional program with games for customers to increase the number of followers

of Durexvietnamoffical with the goal of increasing number of followers to 1000

followers from 8,385 to 9300 followers

Chiếc Tây Valentin: Tình yêu

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Linh Ngô, Giám đốc ICS: Bạn được tạo nên từ những điều không phải tình

Figure.2 Durex collab with Vietcetera on spotify

Spotify is an online music and podcast platform that Durex has only recently entered into this field, so the number of Podcasts that Durex produces is not much and there is some good content but has not yet attracted much attention Therefore, Durex's goal in implementing the Valentine 24 marketing strategy will be to focus on the content of the conversation with guests Therefore, according to the plan, it will attract followers With spotify, Durex has combined with Vietcetera to series "Céi mo" but in terms of accessibility, it has not yet created a breakthrough for listeners Because when focusing on the cognitive aspect, there are still cultural and social barriers that are not yet widespread, so the excitement and attraction are high From there, creating a

Series focusing on love and mentioning 18+ as a gentle flavor is expected to bring wider acceptance on this platform The goal is to increase 100K Followers and achieve 5 star ratings compared to 4.9 stars of the old series "Coi mo"

MANH DAN YEU

S⁄4AM ĐỈNH

Durex Vietnam

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các cặp đôi Hãy cùng Durex khuyên

khích tự do SÔNG và YÊU hết mình Mua ngay Nhan tin

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Figure.3 Durex's official facebook The goal with Durex's official facebook page in Vietnam is to increase 100K likes and followers Because Durex's main reach is the Fanpage, which is operating quite strongly, running campaign ads for Valentine 2024 helps speed up the process of attracting customers

MANH DAN YEU

CUNG CHAM BINH

Durex Vietnam

dure @DurexVietnam 4,3 N người đãng ký 142 video

m hiểu thêm về kênh này >

Figure.4 Durex Vietnam on Youtube

Durex's current YouTube channel in Vietnam does not have a high number of subscribers However, the goal of combining to create a talk show with Vietcetera brings more attention to increase registration to 50K followers

Durex's Marketing strategy sets the Vietnamese market as its target Clients and

viewers are divided into categories based on similar demographics, interests, needs, or

geographic location Market segmentation is significant because it allows businesses

to focus their marketing efforts and resources on the most valuable customers and achieve Durex’s goals

Similarities

Psychographic characteristics - Have a busy lifestyle

- Prefer real and pleasurable feelings in sexual

activities without actual skin touch

- High awareness toward social issues

Behavioral characteristics

women’s day, anniversaries ) - Benefit sought :

- Occasions : Unpredictable ,high possibility on holidays ( For instance: valentines, international

«Thin condom to maximize sensitivity

«Avoid unplanned pregnancies and STDs

«Affordable price

Differences

characteristics characteristics characteristics characteristics

Students | - Age: 16-22 Mainly urban -Social class: - User status:

- Income: No income,

still depend on parents

-Sexually

active: low

(tend to switch Low loyalty

brands to experience various products)

- Seek: safe and quality

(Single) unmarried ( 28 time looking for | - User rate:

is the average different types of | Light to

- Income: Low - Price sensitive | product

active: Medium

- Marital status: unmarrie

d ( Vietnamese women tend to get marry around the age

of 25

White- Male - Age: 28-45 Both urban - Social class: - User status:

Female | - Age: 25-42 - Experienced | Medium to

- Quality - Middle to

conscious

- Sexually active: high

high loyalty (Have sex frequently as a habit so do not change much

- Income:

High to very high

- Social class:

medium to high

- Follow birth control policy

- Health conscious

- Quality conscious ( Picky )

- Sexually active: Medium

- Wives are entering menopause

so they are unlikely to worry about the thickness

of the condom

to guarantee unexpected pregnancy Feel free to

choose Durex

- User status: Frequent users

- User rate: Medium

- High loyalty ( Use product that they are familiar with )

Durex Naughty Chocolate & Durex Sensual Strawberry — flavors

These are the only 2 scent condom lines of the Durex condom brand While Durex Naughty Chocolate is loved for its special chocolate flavor, Durex Sensual Strawberry

is loved by women for its sweet and fresh strawberry scent

The special highlight of Durex home fragrance products is the design with many floating particles Helps increase emotions, increase stimulation and stomach excitement for "sex" The couple makes love and experiences the most mind-blowing, fulfilling moments of sex Therefore, it can be said that the scent and tiny highlights surrounding the tip of the condom are the characteristics that distinguish Durex types and products of this type

Width: 52mm

Accent level: Normal

Style: Straight

Tiny embossed configuration increases emotions

Novel sweet taste, ready to change the conversation and excite excitement

The wall of the bag is smooth, easy to wear, and has a service container

5.2 Service Durex regularly has promotional programs, for example 40% off the entire store Up to 35% off Voucher 100k during happy hours Gifts:

DETTOL hand sanitizer, wheat water

bottle, cotton banana, Xmen

Durex Naughty Chocolate

16

shampoo 100% free ship Durex has used promotional tools to help customers have many opportunities to access the product in a convenient and quick way such as home delivery, free ship so customers can use the product without paying Need to spend too much money to serve your own needs Gifts when purchasing goods are intended to appeal to the psychology of Vietnamese customers in general and foreign customers in particular These are all special promotions on special days or golden hours, especially with the dominant Gen sell products, encouraging support for new Durex products

such as Durex Invisible, Durex Jeans

Customers can access the product by talking directly with a team of enthusiastic consultants or talking directly through the Durex Vietnam Page In addition, Durex also works very hard to interact with customers in introducing its products on social networks by responding to customer comments Fully present the functions of Durex products, answer customer questions, build trust information and unique customer requirements leading to purchasing behavior And provide some consumer codes,

discounts, to measure users, and statements that touch users, like “Boyfriends may

disappoint you, but Durex never’ and those in Durex's customer and consumer communications department are never lacking in flexibility In a witty and clever way, they subtly advertise their products, and provide users with product information 5.3 Brand

DUREX, in addition to an easy-to-read, easy-to-remember phrase for yourself, makes this product line, helping the product reach customers easily, and leave a deep

impression, because the name is easy to remember, in the label This brand also has

structural elements from the letters of different words, which is still used by many brands to express their wishes

Durable: Sustainable Maybe in addition to the sustainable development of their brand, they also refer to another thing related to their products Reliable (trusted) This brand has affirmed its reputation right in the name Excellence Show your will towards perfection, and accomplish everything in the best way

Durable Reliable Excellence

Figure 5 Meaning of the Durex brand

DUREX uses a brand strategy: combining the brand with the product's own name DUREX products almost all have a common naming formula: DUREX + the special name of the product (for one product line but many types) DUREX + product line name This use has helped DUREX's brand strategy not only be successful in their main product line but also help other lines be very successful, thanks to this, their products have a name on the market But few people know the names of each product Just hearing about DUREX, users can immediately remember the products this brand

sells

đ39.000

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Therefore, on average, 1 wholesale price is 17,000 VND A suitable price for those

who want to experience this product line and for only 100,000 VND, customers can buy a product line with two flavors of chocolate and strawberry, a special product line that only has the scent of Durex

Development stage and brand affirmation

Being in the middle of development but having some characteristics of maturity in the Vietnamese market, their products penetrate deeply and widely into the market, the market for this condom industry is gradually heating up in Vietnam So of course demand will be increasing, profits are also increasing rapidly, when the number of products produced is stable, and begins to combine attracting customers to create a difference

Confirm price and quality with customers and competitors

DUREX has extremely strong competitors, from Japan and other countries DUREX has affirmed its quality by its price or to be exact, its high price, they have affirmed its products are high quality products, as their prices are always higher than other brands' products, this has made customers have more trust in them, and a stronger impression

than other brands

Demand will be increasing, profits will also be increasing rapidly, when the number

of products produced is stable, and begins to combine attracting customers to create a difference

Confirm price and quality with customers and competitors

DUREX has extremely strong competitors, from Japan and other countries DUREX has affirmed its quality by its price or to be exact, its high price, they have affirmed its products are high quality products, as their prices are always higher than other brands' products, this has made customers have more trust in them, and a stronger impression than other brands

Price adjustment strategy

Because they insist on quality, DUREX is not afraid of their prices being higher than others, so they keep their prices the same no matter what price their competitors offer, this has created a lot of psychological confidence for consumers However, it still only reaches the middle and upper classes, which leaves opportunities for other brands to use and reach the market below In part, this is because consumer goods do not fluctuate in price very often, which is something that a strategy of adjusting prices up

or down would be less likely to do

5.5 Incentives:

Customers: Durex Vietnam may offer various incentives to its customers, such as discounts, loyalty programs, and promotional offers on their range of condoms and sexual wellness products These incentives can encourage repeat purchases and brand loyalty

®

Cis Gis ế-

: Mã DR159C Giảm 50,000đ Đơn từ 199,000đ oe:

@ Dax har Hién thi chi tiét Bình luận (0 Hết hạn vào 2023-09-17 - 0 + o %

Figure 7 Durex promotion policy

Collaborators: Collaborators, which may include distributors or retailers, can be

incentivized through favorable pricing, marketing support, and training programs Offering them attractive margins and marketing materials can motivate them to promote and sell Durex products effectively

Company Employees: Durex Vietnam can provide its employees with incentives like performance bonuses, healthcare benefits, and career development opportunities Creating a positive work environment and recognizing outstanding performance can also be motivational incentives

5.6 Communication:

Customers: Durex Vietnam can communicate its product offerings through various

channels such as social media, online advertising, in-store displays, and educational

campaigns Messaging should focus on the importance of safe sex, intimacy, and the quality of Durex products

H.9 Durex activities with UEF students

Collaborators

Effective communication with collaborators involves providing them with clear

product information, marketing materials, and support Regular meetings, webinars,

and training sessions can ensure that they understand the products and can convey the benefits to customers

Company Employees

Internal communication is crucial to keep employees informed about company goals, product updates, and any changes in strategy Regular team meetings, email newsletters, and training programs can facilitate this communication

22

5.7 Distribution

Customers: Durex Vietnam can distribute its products through various channels, including pharmacies, supermarkets, online marketplaces, and its own e-commerce platform Ensuring availability and convenience for customers is essential

Figure 10 Durex sold at shopee

Collaborators: Collaborators such as distributors and retailers should have efficient access to Durex products A well-organized distribution network, timely deliveries, and adequate stock levels are key components of effective distribution to collaborators

In summary, Durex Vietnam can offer incentives to customers, collaborators, and

employees to drive sales and motivation Effective communication strategies should

be employed to convey product information and brand messaging, while a well- structured distribution system ensures that products are readily available to target customers and collaborators

6 Marketing Budget

Phase 1: Advertise on Spotify

Includes 4 main costs: Banner design, Audio, Audio Ads and Display Ads

e Banner design cost: 2,000,000 VND

Related to talk show introduction, guests, and topic of the talk

e Cost of recording Audio to run Audio Ads: 1,000,000 VND

The length is about 30 seconds as the host introduced the talk show on February 14

23