Condom Audit Eric Reinhardt

Alec (Michael) Domenick Brad Alexander

Role of the category

• Total Male Contraceptives •Category Penetration: 3.7%•Sales Top $430 Million (2012)•Rapidly Growing

•Channel Summary•42% Mass Merchandise •25% Drug •22% Grocery •All other 13%

Flagship

Sales Dollar Volume

High Medium Low

CoreTraffic

CashMachine

UnderFire

Maintain

Rehab

Gross Margin %

Hig

hLo

w

Condom Category Statistics • The global condom industry has been forecast to hit a market value of

5.4 Billion by 2018• 3 Major Condom companies

• Durex condoms • Trojan condoms• Lifestyles Condoms

Completed Store Audit • Where did we Audit?

• Walmart: 4 Stores • Walgreens: 3 Stores • Target: 3 Stores • CVS:1 store

• Store we used for comparison• CVS was our main store for comparison

• What demographics steered the group to audit certain stores?• Highly populated Hispanic areas• High Index of persons aged 18 to 24

• What were the dominant brands, what firm owed these brands?• Trojan condoms: Church and Dwight Co Inc. • Durex condoms: Reckitt Benckiser Group PLC• Lifestyles Condoms: Ansell Limited

• What was the range in depth of the different stores- what store had the greatest depth, i.e, committed to category?• Walgreens had the biggest depth

Eleven Stores Audited and Depth

    NTarget Fay 35Target Little 31Target Rog 35Walmart MLK 29Walmart Pleasant 25Walmart Wed 37Walmart ElmSpring 29Walgreen MLK 57Walgreen Rog 54Walgreen Dal 58CVS   54

• Retailers differentiate with, size, count, feel, and material• The count of condoms per box ranges from 3 to 40

Ex. Trojan Fire & Ice or Trojan Ultra Ribbed

• No Private Label!!!

Brands, Differentiation, and Competition

Attributes with the most Importance• Age of Head of Household• Occupation of Head of household • Marital Status of Head of Household

Demographics

Target Facings vs CVS Facings

Walmart Facings vs. CVS Facings

Walgreen Facings vs CVS Facings

Pricing Difference

Gross Margin $

Gross Margin %

Condoms Spring 2015 Compared to Fall 2015

• Walmart• Had a decrease in the amount of facings from 38 to 29

• Walgreen • Had an increase in the amount of facings from 55 to 57

• Target • Had an increase in the amount of facings from 33 to 35

Spring 2015Fall 2015