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FOREIGN TRADE UNIVERSITY

FACULTY OF ECONOMICS AND INTERNATIONAL BUSINESS


---------------

MARKETING REPORT

ANALYSIS OF OK CONDOMS
MACRO ENVIRONMENT AND COMPETITIVE FORCES
IN VIETNAM MARKETPLACE

Professor: Nguyen Ngoc Dat, Master


Class: MKTE302(2-1617).3_LT
Group Virus Viral:
1. Ta Phuong Anh - 1512250006
2. Dinh The Dung - 1512250011
3. Cao Thi Thanh Hue - 1512250019
4. Nguyen Thi Hoai - 1512250018
5. Bui Nhat Quang - 1512250029
6. Ngo Minh Thu - 1517250031
7. Doan Thi Thanh Thuy 1512250032

Hanoi, March 2017


RESEARCH SCHEDULE AND GROUP SELF-EVALUATION
1. Research schedule
Time Task
03/01 Defining problems and research onjectives
Developing research plan
Assigning tasks and deadlines
03/02 03/05 Collecting information
Analyzing data
03/06 03/07 Summarizing
Writing report
Designing slideshow
03/08 Presentation rehearsal
03/09 Presentation on class

2. Group self-evaluation
Member Task Evaluation
Ta Phuong Anh Collect information and analyze data Complete the task well
about Porters five forces model and responsibly
Writing report part III
Dinh The Dung Collect information and analyze data Complete the task well
about OK products and its rivals, draw and responsibly
conclusion about OKs competitive
advantages.
Write report part II.3, II.4, II.5
Cao Thi Thanh Research and offer solutions to Complete the task well
Hue compete in Vietnam marketplace and responsibly
Prepare the content of presentation
Present on class
Nguyen Thi Hoai Write schedule and introduction Complete the task well
Design slideshow and responsibly
Bui Nhat Quang Collect information PEST model Complete the task well
Prepare the content of presentation and responsibly
Present on class
Ngo Minh Thu Leader: assign tasks and deadlines, Complete the task well
finalize report and slideshow and responsibly
Prepare the content of presentation
Present on class
Doan Thi Thanh Collect information and analyze data Complete the task well
Thuy about OK and Vietnam market place in and responsibly
general
Write part I, II.1, II.2 and finalize
report
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TABLE OF CONTENTS

I. INTRODUCTION ................................................................................................................. 4
1. Rationale .............................................................................................................................. 4
2. Purposes and objectives ....................................................................................................... 5
3. Subject and scope................................................................................................................. 5
4. Methods of research ............................................................................................................. 5
II. CONTENT .......................................................................................................................... 6
1. Methodology ........................................................................................................................ 6
1.1. PEST analysis ............................................................................................................ 6
1.2. Porters five forces analysis ....................................................................................... 7
2. Overview of OK................................................................................................................... 7
2.1. Establishment and Development ............................................................................... 7
2.2. Product lines .............................................................................................................. 8
2.3. Market segmentation................................................................................................ 10
3. Macro environment of OK PEST analysis ..................................................................... 12
4. Competitors of OK Porters five forces analysis ........................................................... 14
4.1. Bargaining power of suppliers ................................................................................. 14
4.2. Bargaining power of buyers ..................................................................................... 14
4.3. Rivalry among existing competitors ........................................................................ 15
4.4. Threat of substitute products or services ................................................................. 15
4.5. Threat of new entrants ............................................................................................. 15
5. Competitive advantages of OK in Vietnam marketplace .................................................. 15
5.1. Overview of Vietnam condom market..................................................................... 15
5.2. OK competitive advantages in Vietnam condom market ........................................ 17
5.3. Identifying main competitor .................................................................................... 18
5.4. Other factors related to competition ........................................................................ 19
6. Competitive strategy for OK in Vietnam marketplace ...................................................... 20
6.1. SWOT analysis ........................................................................................................ 20
6.2. Competitive goals .................................................................................................... 20
6.3. 4Ps STRATEGY ...................................................................................................... 21
III. CONCLUSION ................................................................................................................ 23
REFERENCE....24
APPENDIX....25

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I. INTRODUCTION
1. Rationale
Nowadays, people are becoming open and easy when they talk about sex. It
means that sex is more and more popular especially at the young. It is result of the
social development and modernization. However, there are also many problems
that we need to concern about such as population growth, sexually transmitted
diseases.
Global human population growth amounts to around 75 million annually, or
1.1% per year. The global population has growth from 1 billion in 1800 to 7 billion
in 2012. It is expected to keep growing, and estimates have put the total population
at 8.4 billion by mid-2030, and 9.6 billion by mid-2050. Worldwide, there are
many unintended pregnancies, which cause population growth.
Sexually transmitted diseases have been rising more and more. Sexually
transmitted diseases are infections that are passed from one person to another
through sexual contact. The causes of them are bacteria, parasites, yeast, and
viruses. There are more than 20 types of sexually transmitted diseases, which is
threatening human, including: chlamydia, genital herpes, gonorrhea, HIV/AIDS,
HPV, syphilis, trichomonas, etc.
Condoms are highly effective against the most dangerous of sexually
transmitted infections-HIV, the virus that causes AIDS. They are also effective
against unintended pregnancy as well as against gonorrhea, chlamydia, and
trichomonas. Condoms use is also associated with a lower rate of cervical cancer,
an HPV-associated disease. It is vital that sexually active youth have access to
condoms to protect their health and their lives.
In condom industry market, OK has gain the trust of consumers because the
quality is assessed and certified to international standards. However, there are many
brands challenging OK company. With the increase in demand and growth in the
industry, today there are many players in the market which offers condoms such as
Durex, Sagami, Power Man,etc, affecting OKs business. Therefore, OK is
promoting competitive strategy on the market.

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2. Purposes and objectives
The main purpose of this analysis is to find the demand and liking of
customers who are living and working at capital to innovate, improve the quality of
products and strengthen our position in the market amid the intense level of
competition.
The results could provide a comprehensive review of market trends, issues,
mergers, acquisitions and other strategic activities of company. Consequently, the
customers can take the best choice with the most satisfaction.
3. Subject and scope
With those aforementioned objectives, the subject that this research focuses on
is OK condoms. Data are collected from OK products selling in Vietnam
marketplace and Vietnamese customers from 2013 to 2017.
4. Methods of research
4.1. Method of collecting data
Primary data collection: observation, survey
Secondary data collection: printed books, electronic books, and websites.
4.2. Method of sampling
Simple random samples
4.3. Method of classifying, characterizing, presenting and analyzing data
After being collected classified by Google Docs, data were characterized,
presented and analyzed based on statistic theories in this course with the supports
of computer software, specifically Excel.

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II. CONTENT
1. Methodology
1.1. PEST analysis
PEST analysis (Political, Economic, Social and Technological) describes a
framework of macro-environmental factors used in the environmental
scanning component of strategic management. It is part of an external analysis
when conducting a strategic analysis or doing market research, and gives an
overview of the different macro-environmental factors to be taken into
consideration. It is a strategic tool for understanding market growth or decline,
business position, potential and direction for operations.
The basic PEST analysis includes four factors:
Political factors are basically how the government intervenes in the
economy. Specifically, political factors has areas including tax policy, labor
law, environmental law, trade restrictions, tariffs, and political stability.
Political factors may also include goods and services which the government
aims to provide or be provided (merit goods) and those that the government
does not want to be provided (demerit goods or merit beds). Furthermore,
governments have a high impact on the health, education,
and infrastructure of a nation.
Economic factors include economic growth, interest rates, exchange
rates, inflation rate. These factors greatly affect how businesses operate and
make decisions. For example, interest rates affect a firm's cost of capital and
therefore to what extent a business grows and expands. Exchange rates can
affect the costs of exporting goods and the supply and price of imported
goods in an economy.
Social factors include the cultural aspects and health consciousness,
population growth rate, age distribution, career attitudes and emphasis on
safety. High trends in social factors affect the demand for a company's
products and how that company operates. For example, the ageing
population may imply a smaller and less-willing workforce (thus increasing
the cost of labor). Furthermore, companies may change various management
strategies to adapt to social trends caused from this (such as recruiting older
workers).
Technological factors include technological aspects
like R&D activity, automation, technology incentives and the rate
of technological change. These can determine barriers to entry, minimum
efficient production level and influence the outsourcing decisions.
Furthermore, technological shifts would affect costs, quality, and lead
to innovation.

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1.2. Porters five forces analysis
Porter's five forces analysis is a framework that attempts to analyze the level
of competition within an industry and business strategy development. It draws
upon industrial organization (IO) economics to derive five forces that determine the
competitive intensity and therefore attractiveness of an Industry. This analysis is
associated with its principal innovator Michael E. Porter of Harvard University.
Porter referred to these forces as the micro environment, to contrast it with the
more general term macro environment. They consist of those forces close to
a company that affect its ability to serve its customers and make a profit. A change
in any of the forces normally requires a business unit to re-assess
the marketplace given the overall change in industry information. Porter's five
forces include three forces from 'horizontal' competition: the threat of substitute
products or services, the threat of established rivals, and the threat of new
entrants; and two forces from 'vertical' competition: the bargaining power of
suppliers and the bargaining power of customers.
2. Overview of OK
2.1. Establishment and Development
In 1989, Phil Harvey founded the nonprofit organization DKT International,
which owns the brand OK, to promote family planning and HIV/AIDS prevention
through social marketing.
DKT Vietnam began as a pilot project in 1993 and today operates in all 63
provinces and cities. The program in Vietnam has
two components:
A social marketing campaign that focuses on
making subsidized condoms, oral contraceptives
pills, and other modern contraceptive methods
available to the general population through its
nation-wide distribution network.
Targeted interventions that focus on at-risk
populations that are vulnerable to HIV/AIDS and
sexually transmitted diseases.

DKT Vietnams OK and Super Trust condoms and


NewChoice oral contraceptives are currently available from
over 11,000 outlets, including 9,000 pharmacies. A field
sales force of 55 individuals handles these outlets through a
local private sector distributor.

Since 2013, Golden Choice Co., Ltd has officially


become the strategic partner in brand building and product
promoting for DKT International in Vietnam, one of the
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largest organizations that provide products and services in the area of reproductive
health and family planning in the world.
In 2015, DKT Vietnam sold over 3.5 million condoms and over 5.2 million
oral contraceptives. This translates into 942,040 CYPs1.
2.2. Product lines
Introduced in 1993, OK was one of the first condoms in Vietnam and has gained
strong popularity with consumers. Currently, various products have developed and
launched.

Condom BASIC: Regular lubricated


condoms designed for safe sex

Condom TEXTURED
These condoms are specially designed for her
pleasure with dotted, ribbed or a combination on the surface.

Condom FLAVORED
The pleasant odor of these condoms adds excitement to both partners.

1
Couple Years of Protection (CYPs) to measure program success. A CYP is the supply of
contraceptives or the provision of a contraceptive service to protect one couple from pregnancy for one
year. The sale of one hundred condoms, fourteen cycles of birth control pills, or the provision of four
quarterly injections are all considered the equivalent of one CYP.
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Condom CLIMAX CONTROL
These condoms contain a small amount of Benzocaine that prolong the
sensation, help those with premature ejaculation.

Condom ULTRA THIN


These condoms are those that offer the most non-condom feeling thanks to
extra thinness and heat transfer ability.

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2.3. Market segmentation
2.3.1. Target customers

Place Age Gender Income


Hanoi 18 24 years old Male BCD2
Ho Chi Minh City Female

2.3.2. Potential customers

MSM Age Gender Income


Men who have sex 18 24 years old Gay BCD
with men Bisexual
Transgender

Due to the fact that 14% of HIV patients are MSM and more than 60% of
MSM do not use condoms when having sex, as well as the increasing tendency of
same sex relationship, MSM is going to be the new potential market for OK.
2.3.3. Customer insight

Area Age

14% 16 - 22
Northern area 16% 20%
47% 23-26
Central area
33% 27-34
39% Southern area 31%
> 35

Marriage status
RESPONDENTS
Single INFORMATION
41% 25%
In a relationship
34% Married
n=83

2
See appendix
10
Types of condom (%)
Not sure 1.5

Cool, wet 1.2

Ribbed 1.2

Dotted 8.1

Climax control Types of condom (%)


14.5

Flavored 19.6

Basic 20.8

Ultra thin 31.3

0 5 10 15 20 25 30 35

Where to buy?
Pharmacy 71.7%
Condom store 19.6%
Supermarket 3.3%
Medical center 3.0%
Internet 1.2%

Average cost to buy a condom


35
30 29.2
25 24.7
20 21.4
%

15
10 9.6
5 5.4 4.5
2.4 2.7
0
<2000 2001 - 5001 - 10001 - 15001 - 20001 - 25001 - > 30000
5000 10000 15000 20000 25000 30000
VND

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Responses on a survey of 46 adults who used OK:
Quality:
- 17.4% responsed that OK size is not suitable
- 56.5% responsed that there are not plenty of models
- 39.3% feels OK is not safe enough
- 54.35% thinks that other brands is easier to find
Price:
40% is willing to pay 5000 10000 VND/item
Distribution
Most of OK users buy at the convenient stores and supermarkets (28.26%),
pharmacies (17.39%), condom shop (15.22%). Only 8.7% was received support
from medical centers.
Customer interview:
Most of BCD customers choosing condoms by:
- Brand
- Quality
- Place to buy
They also do not really care about the difference between price of OK and
Durex. Nearly 90% users buy famous brands products.
3. Macro environment of OK PEST analysis
PEST analysis (Political, Economic, Social and Technological) describes a
framework of macro-environmental factors used in the environmental scanning of
OK products in Vietnam market. It is part of an external analysis when conducting
a strategic analysis or doing market research, and gives an overview of the different
macro-environmental factors to be taken into consideration.
For Political factors, Vietnam is adopting a mixed economy and government
still plays a big role in planning and governing, but OK was the first brand
penetrating the Vietnam condom market when introducing from Thailand since
1993. At the time, Ok condoms were substantially subsidized and made available
nation-wide. As a result, with the support of Government and NPOs in marketing,
OK, the brand, is now an implication of condoms in the Vietnamese mind,
becoming a first brand people think of when asked Name any condom brands.
This is a huge advantage of OK in relationship with the government. Now OK is
sold at every pharmacy in Vietnam and highly supported by government and
organizations such as 100% Condom Use Program in 2011 by UNAIDs Vietnam;
DKT Vietnam: social marketing for healthy sexual life and contraception; Center
for Health market innovation. Furthermore, governments have a high impact on the
health, education such as HIV prevention education program for secondary and

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high school students, provide free condom and sex education for rural area, birth
control programs,etc.
For Economic factors, Vietnam maintains a stable and high economic growth
(6,5-7% in average for the last 5 years). Enterprises such as DKT Vietnam are
facing up to challenges in access to expensive credit and financial management due
to high inflation (7- 9%) and low interest rates of saving (4-7,5%/year). OK price
has remained the same of 3000 VND for last decade despite high inflation thank for
supporting from government, making it cheaper than most of other brand names.
Furthermore, average income of Vietnamese is $2200 per years in 2016 or $42.3
per weeks and only 5% of the population live below property, making OK is more
affordable compared to other competitor ( Durex with 15000VND/pcs; Trojan with
30000VND/pcs)
For Social factors, in Demographic factor, 55% of Vietnamese are currently
in breeding age (15-59 for male, 15-39 for female according to Vietnamese Statistic
in 2016), with merely 25, 5 million people in 15-29 years old. These generations
are very IT literate and have created a large and lucrative teen and young adult
market which make a potential market related to sex such as condom. In Culture
factors, Vietnamese culture is affected by Western culture; youngsters are open-
minded with sex before marriage especially for those who live in the urban areas
with 36% of people have their first sex at the age of 14 - 17. However, 1/3
Vietnamese youth have misconceptions about proper use of condoms and consider
their use an improper conduct and young people think condoms are for prostitutes
or unfaithful partners.
For Technological factors, power shortage is now very current with
increasing demand; internet is widely accessible with reasonable price; counterfeit
and imitation, especially in software products, are widespread in Vietnam. Products
now is commonly sold on the internet with private shipping and information,
making a blossom era of e-commercial; avoid ashamed and confusing feeling when
buying sensitive product such as condoms at offline. FCMGs plastic technology is
increasingly improved, making more durable and thinner material, especial in
condom industry. Flavor industry is developing every day to satisfy customer
demand of more flavor and healthcare products.

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4. Competitors of OK Porters five forces analysis

4.1. Bargaining power of suppliers


In the past, Ok condoms are officially produced in Thailand, so Vietnam had
to import them. But today, Vietnam had official production place, therefore,
supplier power of OK condom is large to make advantages for Vietnam market.
DKT Vietnams OK and Super Trust condoms and NewChoice oral
contraceptives are currently available from over 11,000 outlets, including 9,000
pharmacies. A field sales force of 55 individuals handles these outlets through a
local private sector distributor.
4.2. Bargaining power of buyers
According to statistic, 75% the young have a sex before marriage, 45% of
them use condoms and 50% of them are confused to access condoms. Today,
peoples awareness is raised, most of people know that having a sex without having
baby and infectious diseases is using condom. Therefore, demand of condoms is
large. In the fact, there are some automatic machines which contain condoms for
customer not to go to the shop, in case of confused customer. People find that
condoms in machine are empty quickly. To sum up, quantity of condom consumer
is high.
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4.3. Rivalry among existing competitors
Durex: According to statistic, when asking about condom brand used in
Vietnam, 61.1% used Durex, 58.1% used OK. In that survey, Durex is always the
most popular brand used, and OK brand is the second popular. Durex is safer than
Ok, but Ok is far cheaper than Durex and relatively safe.
4.4. Threat of substitute products or services
Today, in the market, there are some substitute products for condoms to
prevent having baby when having a sex.
Firstly, contraceptive pill is used relatively much. It helps women prevent
being pregnant, easily drink. In terms of using, contraceptive pill is used more
easily than condoms. However, it takes a long time for women to be pregnant after
using this pill once; many women do not be able to be pregnant again after that
using time.
Moreover, vasectomy and spermicide are also applied to prevent having
babies. However, they are relatively difficult to do and ability to be pregnant is
high in spite of applying it.
4.5. Threat of new entrants
Now the condom market is saturation, there are many condom brands used
popularly such as: Sagami, Durex, Jex, Trojan, etc. Therefore, if a new condom
brand merged, there would be many difficulties in market.
5. Competitive advantages of OK in Vietnam marketplace
5.1. Overview of Vietnam condom market
According to the old statistic, annual year the number of women was
conducted abortion in the worlds second largest and emergency contraceptive pills
become commodities sold ultra-running, quite expensive.
Recent years, the behavior of people is changing through the statistic in this
following:
75% young people are now have sex before marriage
Only 45% using condom
Up to 50% people are shy in using condom when they have sex
Because the awareness of people about using condom is low so diseases
related in sex are rising to alarming level, 7 times increase in 15 years.

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The number of patients

Evolution Situation Infection spreads through


Sexually from 1996 to 2010 (National hospital of Determatology and Venereology, 2012)
In the center city, Hanoi and Ho Chi Minh city, teenagers have basic
awareness about the general contraceptives and condoms in particular. With the
quality of life now, customers appreciate the safety and high product quality than
reasonable prices.
Condom are the most used condom in safety sex (86.7%).The reason why
people should use condom listed in this following (through survey Vinasearch 2013
with 383 men and 332 in that chosen condom)
Simple, easy to use
More effectively contraceptive methods than other methods
Avoid diseases related in sex
Small size to bring everywhere
No side effects
Birth control methods
Source: vinasearch.net
Other methods
Tubal
Implants
Contraceptive injections
Condom for woman Birth control methods

Menstrual cycle count


Contraceptive pills
Condom
0 20 40 60 80 100

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Vietnamese people choose condoms by:
Safety in using process
Clear origin
Small size to bring everywhere
Youth trends increasingly more interested in sex. 5 years before the age of
first sex among men is 20; the female is 19.4 years of age has fallen to 18.2 for men
and women are 18 years (Songtre.tv, 2013).
According to Understanding Vietnam condom markets 2012
Have sex 75%
No have sex 25%

While having 55% people do not use condom in sex and people feel shy.
Therefore, the condom market with youth is potential
5.2. OKs competitive advantages in Vietnam condom market
When asked about the brand condoms available in Vietnam.Men have used,
61.1% of 332 people respondents have used Durex, followed by OK accounted
billion 58.1% rate.
When asked about the brand Condom use is often most frequently, Durex is still
trademarks are the respondents most used accounting 43.1%, followed by OK
accounted billion 36.4% rate.
Regular used brand vs. Used brand
Others
Simplex
Cowboy
Drex
Rock
Romantic
Durex
0 10 20 30 40 50 60 70
Dure Rom Playb Delu Sum Cow Troja Simpl Saga Othe
OK Rock Drex
x antic oy xe o boy n ex mi rs
Regularly used brand 43.1 36.4 3.3 4.5 2.1 0 8.1 1.8 1.1 0.3 0.3 0.9 0.9
Used brand 61.1 58.1 15.1 14.8 11.4 10.8 10.8 10.5 8.1 6.3 5.4 3.9 1.8

Analysis about price and function of some condoms in Vietnam market. The
result is showed in this following:

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Condom OK red Innova condom
Price:5,000 VND Price:75,000 VND
Box :3 pieces Box: 12 pieces
Funtions: not Functions: external
external

Condom Durex Condom


Kingtex Romantic
Price: 30,00VND Price: 75,000 VND
Box: 3 pieces Box: 12 pieces
Functions:not Functions:
external external
Vip Plus condom Sagami condom
Price: 9,000 VND Price:35,000 VND
Box: 3 pieces Box: 3 pieces
Functions: not Functions:
external external

Competive price: OK vs Vip Plus


Competitive brand and customer: OK vs Durex
5.3. Identifying main competitor

Compare 4P between OK and Durex


Differences OK Durex
Product features Three flavour, basic features More than three flavour, many
are protected sex additional features sensory
stimuli supports users when
sex
Price Cheap Expensive
10,000VND/3 pieces 30,000 VND/3 pieces
Place Inaccessible to customers, the Very accessible, can be
stores sell condoms currently purchased easily at
no OK or to be OK, but when convenience stores, specialty
it's on Durex stores sell condoms. The store
is very popular Durex
Ads Absolutely not appear TVC as The print-ads and banner ads
well as print quality-ads, in major key transport axis
banners in the street (eg, Ho Chi Minh City)
TVC (emphasis on excitement
during sex, the newly launch a
few weeks ago)

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Durex is identified main and strong competitor of OK.Through survey,
customers say that:
Durex is three times safety than OK Object : youth 16 24 years old
Good material and comfortable during sex
So why OK is not popular with cusumers about the market than that Durex:
Threats from competitors: With higher prices (from 20.000-25.000VND / 1
unit), but towards Durex customer segment income ABC +, but if OK without the
appropriate strategy, the risk of losing customers to Durex's hands absolutely can
happen. Also, currently on the market were constantly appearing BCS firms such as
Fuji, sumo, ... the price and variety of species, threatening the market share of the
two "hug boss" mostly OK and Durex.
5.4. Other factors related to competition
Economic factors: The economy of the world in general and Vietnam in
particular are facing many difficulties, combined with high inflation will be no
small challenge for all commodities on the market. Consumers will tend to weigh
the quality products with reasonable price, affordable to use
Socio-cultural factors: Although the market has been present in Vietnam for
nearly 20 years, finished Condoms have not been mentioned in the comfort of
society. Buyers still feel afraid, while others still tend to evaluate and look bad on
the use of this product.

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6. Competitive strategy for OK in Vietnam marketplace
SWOT analysis
STRENGTHS WEAKNESSES
- International brand and reputation - Duration and quality is lower than
- Global corporation with consistent its competitor (especially Durex)
foundation - Weak distribution network and
- The first brand immigrated in availability to young people
Vietnam, led the market and has a - Do not have their own website
strong distribution channel in and marketing efforts to maintain
pharmacies in Vietnam their position
- Low price and medium quality - Rarely sold at supermarkets,
Many kinds of scents. convenience stores,...

SWOT

THREATS
OPPORTUNITIES
- Barriers when target market
- Safe sex is now one of the most
neglects to use condoms
concerned issues in our society
- Competitive environment with
- Supported by Government, NPOs
other rivals
to raise awareness about the
importance of avoidance STIs in - Perception of the Youth to have
Vietnam sex freely without the concern of
using condoms for protection
- Increased Internet usage leading
to wider approach to target market - Around of Vietnamese youth
today have misconceptions about
- The development of technique
proper use of condoms and consider
creates new products
their use as an improper conduct

Competitive goals
Increase the demand for using product
Raise brand awareness
Increase the sales revenue
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Create the habit using condoms when having sex for the Youth
Reduce the number of STIs patients (including in LGBT)

4Ps STRATEGY
PRODUCT

New
material:
Non-Latex
(thinner)
Maintain the Maintain the
traditional red Latex More sizes
packing and material, More flavors:
the logo to product fruit, candy,
raise the quality chocolate,
brand (medium) and vanilla,...
awareness use (avoiding Added
pregnancy spermicide

Develop new products


and STIs) Rubber
Traditional product

deodorization
Enhance
sensitivity
and prolong
Packaging

sexual
performance

PRICE Maintain the cheaper


price than rivals

- Latex product
- Non-Latex product

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PLACE

Traditional Optimize the distribution in current outlets,


especially pharmacies by displaying the products

Increase the availability by distribution in


non-traditional outlets
Hotel, guesthouses (mainly)
Slot machines
Non-traditional Massage parlors
Bus terminals
Supermarkets: BigC, Vinmart,...
Convenience stores: Shop&Go, Circle K,...
Online shops

PROMOTION

Step 3: Maintain
public demand
Step 2: Heighten - Social activities
public demand - Society
Step 1: Heighten - Advertising: healthcare: for
public awareness TVCs, Web example, sexual
Banners, Printed education for
- Using website
Arts,.. poor/minority
and fanpage: to
- PR: Education people, disabled
provide the official
programs, fairs, adults and
product portfolio
workshops, children,...
and give the advice
for customers roadshows, - Evaluate the
creative satisfaction of
- Using viral
competitions, customers, analyze
marketing
using KOLs,.. the market share,
marketing
strategies and keep
track with this.

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III. CONCLUSION
According to the analysis, we see OK condom had many outstanding
advantages and accounted for the big market in market in Vietnam. However, we
cannot deny that OK condom still had drawbacks in products to improve to
compete with other brands in Vietnam or in others countries.

In order to do that, OK condom needs to change some characteristics and


quality of OK condom to be more suitable with demands consumers, aiming to the
future is giving the safe product to protect the health of consumer. Apart from it,
many strategies marketing are essential to maintain and confirm the brand name of
condom, step by step becomes the believable friend for couples in Vietnam.

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REFERENCE

1. 2017 DKT International, Country Programs in Vietnam.


Available at:
http://www.dktinternational.org/country-programs/vietnam
2. Philip K., Gary A. (2012), Principles of Marketing, 14th edition, Pearson
Education, Inc.
3. Schiffman, Kanuk (2006), Consumer Behavior, Pearson International Edition.
4. Porters five forces analysis.
Available at:
https://en.wikipedia.org/wiki/Porter's_five_forces_analysis
PEST analysis.
Available at:
https://en.wikipedia.org/wiki/PEST_analysis
5. NCTT Group (2013), Thi quen s dng bao cao su ca nam gii Vit Nam,
W&S Joint Stock Company.
Available at:
https://vinaresearch.net/public/news/1413-
6. Paler-Calmorin (1995), Methods of Research and Writing, Red Book Store,
Malina.
7. Paul Newbold, William Carlson, Betty Thorne (2015), Statistics for Business
and Economics, 8th edition.

24
APPENDIX

CLASSIFICATION OF INCOME
Class Monthly income (VND)
F Under 1 500 000
E 1 500 000 2 999 999
D 3 000 000 4 999 999
C 5 000 000 7 499 999
B 7 500 000 14 999 999
A1 15 000 000 29 999 999
A2 30 000 000 44 999 999
A3 45 000 000 74 999 999
A4 75 000 000 149 999 999
A5 150 000 000 and above

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SURVEY ON YOUTH ABOUT SAFE SEX

1. Your age:
16-24
25-30
30 -35
Over 35
2. Your marital status
Single
In a relationship
Married
Married and having at least one child
3. Do you care about safe sex?
Yes No
4. Do you think that condom should be use when having sex?
Totally disagree Disagree Neutral Agree Totally agree

5. If you have used condom, rate how often you use:


Never 1 2 3 4 5 Always

6. Do you think price affecting your condom buying decision?
Totally affect Quite affect Fairly affect No effect

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7. If there is another person in the same places where you want to
buy condoms, do you still buy it?
Yes No
8. Place(s) where you buy condoms:
Pharmacy
Supermarket
Convenient store
Sex shop
Others:
9. Which brand(s) listed here do you know?
OK Deluxe
Durex Drex
Romantic Sumo
Simplex Cowboy
Playboy Sagami
Rock Others:

10.Which is the most important factor in choosing condom?


Small, convenient
Reasonable price
Comfortable when having sex
Many functions
11. Which is the first condom brand appearing in your mind?
12. What do you want to improve in Vietnam condom?

27

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