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DUREX

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by

Carla CHEN

on 21 May 2014

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Transcript of DUREX

Love Sex
San, Lin Hui Shan (BB200612)
Carla, Chen Zhi Hua (BB201646)
Kirsten, Wong Im Tong (BB202055)
Susie, Zheng Shao Shi (BB202160)
Angie, Lei Ka Io (BB202776)
Agnes, Lei Weng I (BB203812)
Minnie, Chuang Chieh Jui (BB204858)

Introduction
History
background

Product
Price
Place
Promotion
Recommendations
Thank you!
Durex Introduction
World-known brand of gender health
DUREX comes from

DU -- “durability”
R -- “reliability”
EX -- “excellence”
Major products

Condoms
Lubricants
sex toys

Why and How Durex become a successful and well-known brand through 4Ps (place, product, price and promotion).


Objective
Components of product
Core product
What is the buyer really buying?
Condoms
Lubricants
sex toys
Components of product
Formal product
the actual physical or perceived characteristics
Comprehensive
Effective
Cool
Components of product
Augmented product
the support items that complete your total product offering
After-sales survey
Condom wiki
Characteristics
Product attributes
Quality
Features
Design
Characteristics
Branding
health protector
pleasure provider
Packaging
Characteristics
Labeling
Positioning
Young people
low price condoms

Young adults
better feeling and more comfort

Curious people
new experience and heated sex life
LOVE SEX
Durex’s location
Available in 150 countries
target market
The range is quite wide.
From teenagers to adult who has the need.
Where can you buy it?
Supermarkets
Convenient shop
Pharmacies
Internet
Taobao
Amazon
Contribute a low occupancy cost
Durex started in
1915
in London

Market share of
29%

Market leader in more than
40
countries
Multichannel Distribution System
Vietnam
Most of the Durex products in Vietnam are imported from nearby factories in Thailand.
Durex uses almost every type of media to communicate about its products.
Promotion
Advertising
Sales promotion
Public relation
cooperation
endorsement

Advertising: Internet
Facebook pages
Advertising: Internet
Official website
Advertising: Internet
Official website:
“Durex News Release” for customers to have more sexual knowledge.
Advertising: TV commercial
Advertising: Billboard
London Olympics: Olympic rings.
Slogan: “not every man wants to be the fastest in the world.”
Retweeted more than 1,700 times in few days.
Advertising: Games
Durex Baby
Public relationship
Durex finds unique and newsworthy opportunities to publicize its products and builds a positive image of the brand in different place.
Public relationship
London Olympics
Donation on World AIDs Day Durex helps raise awareness of safer sex and good sexual health by joining the World AIDs Day campaigns.
Provide the knowledge of sexual and condoms for teens (age 14-15) in Austria.
Sales promotion
Premium
Disadvantages
Disadvantages
-Limited brand loyalty
-Government restrictions on advertising
-Other products with similar function:
Oral contraception
Dams
IUDs
Recommendation
1.Explore expansion of advertising opportunities while abiding by government regulations
2.Increased distribution through:
Vending machines in washrooms
Availability in nightclubs/bars-free
3.Sponsorship in educational institutions
History & background
History & background

so how does Durex provide accessibility to the market
?


Logistics

Customer value-based pricing
experience and past data

materials
low price

experiment
spend time and money

Durex's price is fair with good quality and competitors.
Pricing decision
-different prices due to its different usage and categories
- basic ones are at low price easy to be bought
- suitable of spreading the importance of sexual health and prevention of AIDS
Pricing decision
Source: Latest price information from Hong Kong Consumer Council.
Penetration strategy
set up low prices on new products to attract customers
Purpose: Increase market share and sales volume
NOT TO Make profit in short-term

Result: - Prefer to use Durex
- Durex = condoms

This strategy makes its brand well known all around the world.

Advantage
Creates goodwill among the early adopters segment

Creates more trade through word of mouth

Creates cost control and cost reduction pressures from the start

leads to greater efficiency

Disadvantage
Difficult to raise its prices eventually

The low profit margins may not be sustainable long enough for the strategy to be effective

Comparison of Durex and Okamoto
Okamoto
* one of the first condom industry
* opened since 1934 and the head office is settled in Tokyo Japan.

Difference of Durex and Okamoto:
1. Okamoto:
-NOT JUST produce condoms
-biggest rubber latex producer in Japan

By-product pricing strategy
Pricing decision:
- according to its competitors--->a lot of by-product which also use rubber latex to produce, Okamoto can increase the price of the by-products to increase its revenue

Geographical pricing strategy
Durex on sex products

represents sexuality health


set prices in different situation
Prices indifferent countries:
-India is much more cheaper than the other countries----Asian countries
Dynamic pricing
setting different prices in different area to meet the characteristics needs of individual customers and situation
Reasons:
Poor area no money
Low education no knowledge of having healthy sexual life

Promote the idea of sexual health and prevention of AIDS
Okamoto Uniform-delivered pricing
- Prices in different countries are nearly the same
- Prices are different depend on the freight of that area
Sales promotion
Discount would offer in some special dates or holidays.
Sales promotion
Discount sometimes are given when new product is promote.
Sales promotion
Discount would also giving in package selling.
Q & A
Cooporation
Durex Australia and Havas Worldwide Sydney have revealed the launch of Fundawear.
Endorsements
JLS(a British boy band) JLS launched a range which is called 'Just Love Safe' of condoms with Durex.
Endorsements
Ranveer Singh: an Indian actor. His advertisement for Durex condoms has been released in April, 2014
raising awareness of safe sex
Full transcript