Reckitt Benckiser Case Study | Campus winners

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Information about Reckitt Benckiser Case Study | Campus winners

Published on April 21, 2014

Author: tarunramgupta



Durex in India: The category normalization challenge

Durex in India: The category normalization challenge Submitted by Team Ground Breakers, IIM Ranchi Name Email id Mobile number Tarun Gupta 9000015915 Sanjana B. Pattanshetti 8051183361

Situation analysis What is the current perception among customers and channel partners about sexual well being? Why is the perception so skewed? Acceptability Affordability Accessibility • Hesitance to talk about condoms openly • Lack of awareness about their usage, benefits • Fear of damage of social reputation • Regulated media • Unit price of condoms range from INR 2 to INR 750+ • One time use product • Heavy expenditure considering repeated need for the product • Available only in chemist stores and select retail stores • Retailer reluctant to stock and display condoms • Reluctance of customers to purchase condoms in public • There still exists a stigma associated to condoms and sexual well being • Disparity in perception and practices between different regions • Some feel that use of condoms effects their masculinity • Awkwardness about the product exists among both the buyers and sellers

Socio-cultural evolution Sanitary napkin evolution Acceptability of condoms Factors driving increase in acceptability: • Literacy • Sex education in schools • Urbanization • Evolution of Bollywood Situation pre 1990s: • Limited product varieties • Highly priced ( approx. INR 2 napkin) • Ban on mass media communication Source: Livement - Breaking a cultural taboo Situation 1990s: • Increase in product varieties and brands • Advertisements focusing on functionality/utility of product Situation 2000s: • Increased focus on product and communication innovation • Various taken by government and not-for-profit organization to increase affordability and accessibility in rural areas • Advertisements’ focus shifts from functionality to lifestyle Accessibility Time • Educational campaign • Innovation in home delivery model • Enhanced communication • Associations with government & other organizations Disruptive growth in acceptability Accessibility Time Literacy Sex education Bollywood Increasing urbanizationEducational campaign Home delivery model Association with NACO Channel partnerships

____ analysis • Existing advertisements are mostly provocative • Focus on the ‘pleasure’ aspect rather than ‘safety’ – which is reason for using condoms • Highlights the fact that sexual well being is a taboo in the society Relating with condom ads • Packaging of most of the condom brands • This deters purchasing condoms as customers feel awkward/conscious to visit that section of a store, choose a pack and get it billed • This also deters retailers from displaying and promoting these products Packaging • Packaging should give information about the brand and the varieties, enabling the customer to choose wisely , yet it should not be explicit • This prevents catching unwanted attention, for both customers and retailers • Advertisements should be aimed at connecting with the target customers – the youth - likely to be the biggest potential customers • Ads can be sensual to communicate that it does not hinder pleasure but should be portrayed in good taste • Ad expenses – Results of Aamsutra • Targets only the segment that already uses condoms and offers varieties, but does not connect with new customers • Increases the stigma in the society by highlighting the taboo • Portrayal in the ads deters people from associating with it and hence deters usage • Possible reason for media houses to regulate Impact of such promotion

Brand communication Education is the best contraceptive….a close second is Durex Mascot for Durex: Mr Sure Educational campaigns in association NACO Project Suraksha Target audience: People aged 16 to 38 years Mode of communication: Mass media – Television ads, print ads, radio etc. Protagonist: Mascot, Mr Sure The educational advertisements will focus on safely, various facilities available, where condoms would be available etc. Advertisement of the Durex brand would be subtle yet powerful Since campaign is in association with NACO, advertisement costs would reduce Campaigns will also include sex education programs for schools Targeting and communicating to the right audience through the social media • Games on Facebook based on Mr. Sure • Applications which give information about different varieties of the products • Campaigns on World Aids day, valentines day etc. • Awareness programs for the various other initiatives like the delivery channels etc. • Android apps for mobile phones with games and other information Project Suraksha

Brand communication (contd.) Building a conducive environment to communicate openly The most important sources of information regarding sexual well-being for today’s youth 1. Peers 2. Internet Implications: 1. Unavailability of complete information 2. Incorrect information - can result in a worse situation The biggest problems in the current situation is that people: 1. Cannot approach parents & teachers for information 2. Cannot freely approach retailers while purchasing Retailers should be made more open to display condoms; brand management and pushing products must be similar to other products • Arrange regular retailer & dealer meets where they are sensitized • Incentive schemes for displaying, shelf space and better sales Associate with companies and conduct awareness programs on World Aids day etc. Awkwardness between parents and children regarding sexual well-being is one of the biggest barriers Solutions: • Under Project Suraksha, organize programs to enable parents to talk openly to their children and impart timely information as needed • Open communication in mass media will also help parents open up • Print ads, banners in public places showing communication Parents Retailers Companies The new FREE-DOM My mother told me that condoms are safer and contraceptive pills

Affordability No Indian-ization of Products Reasons for non – usage of condoms 0 10 20 30 40 It affects Masculinity Recurring Cost Don’t like using Not satisfying Non-usage of Condoms Key Takeaways Recurring cost is the major factor stopping the mass adoption. Aware of Condoms as a medium for prevention of STI’s 0 20 40 60 80 100 120 Men Women Aware Not- aware Majority considers Condoms as a spacing device rather than a health product. Solutions Reducing the cost per usage by a cheaper variant for Tier 2 Cities. Health Promoting Condoms as a health device not a spacing device

Accessibility Marketing ChannelProduct Customer Based on the product life cycle and the target market in a specific geography , one or more of the three pillars has been chosen as focus to meet our clients business needs. Customer Product Channel New Product Entry Customer Product Channel Entry of Competition Mature Markets Customer Product Channel Primary focus Secondary focus Post analyzing the primary and secondary focus for ‘Durex’ in a India, we have studied the market entry strategy from various perspectives and suggested the most preferred route. From Product To customer s JVs/ Acquisitions Distributors / Agents Channel Partners Marketing Strategies GTM Framework Enhancing Accessibility with the right Go-To-Market strategy Source: From-To Approach, BCG; Redefining GTM, AT Kearney

Accessibility (Contd.) Building a conducive environment to communicate openly Vending Machines Activation in Metros Majority of the vending machines are in Delhi & Mumbai. Activation of Vending machines across India will help in Increasing Acceptability. Durex FB Page Home Delivery Tie-ups Medical Shops Chain: Online Retailer tie-ups Aiming for Greater Display space: Push strategy Higher margins for dealers, Distributors& retailers. Urban Rural Tie-up with Govt. Schemes & NGO’s Innovation in Accessibility Free or Subsidized condom supply to people taking Life Insurance Schemes Tie-up with SBI, ICICI or HDFC banks to have a vending machine in each ATM. Enhances Accessibility with privacy.

Accessibility (Contd.) Penetrating the market in a phased manner KEY FACTORS FOR CHOOSING CENTRES Literacy Rate Per Capita Income 1 2 LUCKNOW NEW DELHI JAIPUR PATNA KOLKATA HYDERABAD CHENNAI MUMBAI AHEMDABAD BHOPAL BUBANESHWAR TRICHI BENGALURU kanpur allahabad Malda hugli vijaywada guntur madurai coimbatore mysore davangere pune udaipur ajmer rajkot surat warangal nagpur Targeted regions Rest of India Sources: List of cities and towns in India – Wikipedia; • UP(Agra, Meerut, Varanasi) • WB(Siliguri, Asansol, Khargpur) • Bihar(Arwal, Gaya, Muzaffarpur) • MP(Ujjain, Ratlam, Indore, Sagar) • Rajasthan(Pali, Sikar, Alwar) • AP(Vishakhapatnam, Eluru) • TN(Thoothukudi, Vellore, Salem) • Maharashtra(Thane, Dombivili) • Karnataka(Gulbarga, Mangalooru) • Gujarat(Vadodra, Bhavnagar) • Orissa(Dhenkal, Debargh) Phase 1 • Target metros & major Cities • Establish hold in major metros which will act as drivers of change. Phase 2 • Target tier 1 & major tier 2 cities • Create a wider customer network Phase 3 • Target tier 3 cities • Cater to the digital divide by penetrating the under- served rural market Tier3Cities

Strategic objectives Insights To identify the drivers for acceptability of condoms Acceptability Affordability To address the Affordability challenge w.r.t this category Socio-cultural Evolution is increasing the use of Condoms but at a Slower pace. Disruptive innovation needed to boost growth Packaging of the product & Brand communication play a crucial role Recurring cost is a major deterrent For using condoms Condom considered a birth control device than a device to protect from STI. 22% of the people Surveyed did not like Using Condoms Product discounts are the most favoured means of discounts accepted by retailers. Accessibility To develop a Go-To- Market strategy Majority of vending Machines are limited to Delhi & Mumbai region Social media and Online Retail are the next big Marke- ting mediums. Promote condoms as Health Device Rather than a spacing device. Example Variant: Durex Health Recommendations Associate and companies and conduct awareness programs on World Aids day Free or Subsidized condom supply to people taking Life Insurance Schemes Come up with a range of cheaper Variants to address the larger market Arrange regular retailer & dealer meets where they are sensitized Project Suraksha, organize programs to enable parents to talk openly Associate with government program Like NRHM & NACO Focus on Channel Development in urban region & product Education in Rural Regions. Tie-up with SBI, ICICI or HDFC banks to have a vending machine in each ATM. Executive Summary Summarizing the Key Recommendations

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