Okatomo Durex Case.pdf

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People at the Back Acutina, Iann Joseph Loreto Chu, Tsina Jade Gerafil, J-El Rhudy, Ma. Caryl Yap, Axel Jason

Submitted to: Professor Rowena Gelvezon

March 26, 2019

Current Situation SWOT Analysis Strengths 1. London International Group (LIG) is recognized worldwide as a leader in the development of latex and thin-film barrier technologies. 2. Success on its wide range of products. - LIG has built its success on the development of its core businesses: The Durex family of branded condoms, Regent medical gloves, and Marigold household and industrial gloves. - These are supported by a range of noncore health and beauty products. 3. Ability to expand in different markets because of strategic placing of facilities all around the globe. - LIG has operational facilities in over 40 countries, 12 manufacturing plants (wholly or jointly owned), and an advanced research and development facility in Cambridge, England. 4. Great brand image and awareness of LIG’s one core business which is Durex. - Durex is the world’s number one condom brand in terms of quality, safety, and brand awareness. - The Durex Family offers a variety of products and is sold in over 130 countries worldwide and leader in more than 40 markets. 5. Successful launching of Durex Avanti in the United States and Great Britain. 6. Great product quality of Durex Avanti.

- Made from Duron which is a unique polyurethane material and is twice as strong as latex therefore enabling it to be much thinner compared to regular condoms but with equal or better safety. - It is stated that Durex Avanti condoms are able to conduct body heat and create a more natural experience. - It is also the first condom to be odorless, colorless, and is suitable to be used with oil-based lubricants. Weaknesses 1. Relatively high prices compared to competitors. 2. Sagami Rubber Industries, the major competitor of Okamoto, also produce 0.02 and 0.01 mm condoms in Japan. Opportunities 1. Significant opportunities in emerging markets like in Taiwan in terms of public relations and event sponsorships as stated by the Durex Global Survey together with MTV. 2. Thinner condoms are more popular compared to those of overseas brands in Japan. 3. Instant access to the condom market in Japan through a joint venture with Okamoto. - Oral contraceptives are still not publicly available in Japan that is why Japan is an important condom market because condom usage there is one of the highest in the world.

4. Upcoming Tokyo 2020 Olympics - 110,000 free condoms were given during the Pyeongchang Winter Games. - It is an opportunity for Durex to showcase their world-record ultrathin products. - Giving out of condoms for free during Olympic games to athletes is already a tradition thus giving these producers an unrivalled marketing opportunity. 5. Condoms have been the longest and most popular contraceptive method in Japan. Threats 1. The aging population in Japan. - As the market starts to grow older, their sex drive is getting lower as well resulting to the low usage of condoms. 2. Rising number of young people in Japan staying single. - A survey of Japanese people aged 18 to 34 found that 70% of unmarried men and 60% of unmarried women are not in a relationship. - 42% of men and 44.2% of women admitted that they were still virgins. - More than 70% of single people in Japan, mostly in their 40s, claimed that they do not only reject the idea of marriage but they are also satisfied with solitude and is ready to face life alone mainly because they enjoy work and are focused with their hobbies. 3. Japanese people are not enticed by sexual advertisements.

Statement of the Problem How can Durex effectively penetrate the market and properly position itself in Japan? Although Durex is partnering with London Okamoto Corporation to enter the market it could still be difficult for them to position their brand properly especially that it is a first time that an international brand is entering their market. Aside from that, Japan is a country which is very open to sex and that makes it normal for them to use contraceptives and birth control pills- as it starts to rise from the market competition, but it could also be a factor for the consumers as to not choose a brand because there are a lot of substitutes in the market. So, Durex need to properly position their brand whereas it would be a top of the mind brand in Japan when it comes to birth control and contraceptives.

Alternative Courses of Action 1. Repositioning of Durex in the Japanese market The Japanese market for Okamoto Duralex condoms has a sophisticated market. They have a sophisticated behavior towards usage of condoms. The market may have a high usage rate of condoms, but this market is starting to age and is having a decline of condom use. In fact, it was stated in an article that Japanese have low sex urge stimuli on sexual advertisements. In television screening, condom advertisements and commercial are only aired at late hours. The Japanese market was reported to have a rising rate of HIV and AIDS. And a part of this so-called sophisticated market, is the youth. The youth have low

awareness of sexually transmitted diseases, which becomes a concern of the brand and company. a. Advertise through social media In order to reach and communicate to the youth, Durex must penetrate social media in order to push through their advertisements without timeframe constrictions. These advertisements also will maintain the current approach of Durex on their advertisements by encouraging condom use by making sure that sex is a topic of a dinner table conversation. b. Leverage on its strong core product attributes and benefits Durex condoms is self-sufficiently ideal to condom users. With its Duron material that makes it twice as strong as Latex, and therefore makes it thinner; increasing sensitivity while maintaining its safety benefit. This, however, needs more product integration as other condom manufacturers in the country are also leveraging on thinness attribute. c. Targeting OLYMPICS for event marketing Japanese men are into sports. Thus, sports events like Tokyo Olympics 2020 is a marketing opportunity for Durex. This type of event is an avenue for the company to advertise the Durex Avanti like giving samples and building a booth conducting forums that encourage safe sex without compromising the natural feeling through Durex Avanti. In addition, the booth will run games with prizes. The only way to join the games is to post in a social media platform a photo or a video with the hashtag #DiscoverTomorrowThruSafeSex. This hashtag is related with the Olympics 2020

motto which is “Discover Tomorrow.” This way will increase exposure and engagement among the young men market. Decision and Implementation After identifying the alternative courses of action for Durex to properly position its brand and effectively penetrate the Japanese market, we suggest implementing the first alternative recommending Durex to reposition itself in the Japanese market. As what is stated above, we have identified certain areas where we can penetrate the market. Since condom advertisements are only aired at late hours in Japan, we will be using social media as an advertising tool in order to reach and communicate to the younger generation without timeframe constrictions while maintaining Durex’s current approach which is to encourage condom use by making sure that sex is a topic of a dinner table conversation. Also, as part of the brand’s repositioning, we will lure the market through promoting the strong core attributes and benefits the product offers which is a competitive advantage in penetrating the Japanese market. Lastly, as part of the marketing campaign, we will grab the opportunity to market the product in the upcoming Tokyo Olympics in 2020 where it can be a big avenue for Durex to advertise its brand to a huge number of people especially the Japanese market. This will be done through giving samples and building booths conducting forums which encourages safe sex without compromising the natural feeling through its product, Durex Avanti. Also, in relation to using social media as a promoting tool, the booth will run games with prizes where people can only participate through posting on social media platforms photos and/or videos with the hashtag #DiscoverTomorrowThruSafeSex which relates to the Olympics 2020

motto “Discover Tomorrow”. Through this, the brand can maximize the use of social media and increase its exposure and engagement among the young men market in Japan.

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