Family Planning:CondomsBy Sullivan Goetz

Brief Overview

Supplier is in complete control No private label Strong brand loyalty Limited number of brands

6 Stores Audited Wal-Mart(2), Target, Walgreens, USA Drug, &

Kmart

Overview

Brand # of SKU’s # Unique SKU’s

Trojan 49 11

Lifestyle 13 5

Durex 11 3

TOTAL 73 19

3 Major Brands: Trojan, Lifestyle, & Durex

73 total SKU’s found.

Trojan leading the market with 49 SKU’s

Summary & Comparison

Stores Audited # SKU’s # Unique SKU’s % of CategoryWM 6th Street 51 3 21.6%

WM Springdale 40 1 16.9%

Walgreens (School) 53 6 22.4%

USA Drug (College) 29 7 12.2%

Target (Fayetteville) 35 2 14.8%

K-Mart (Springdale) 29 0 12.2%

Wal-Mart on 6th and Walgreens would have the most depth. Number of SKU’s have grown since previous years by increasing

depth WM 6th went from 33-51 SKU’s Walgreens went from 28-53SKU’s Target went from 18-35 SKU’s

Demographics

DUREX - CONTRACEPTIVES - MALE

LIFE STYLES - CONTRACEPTIVES - MALE

TROJAN - CONTRACEPTIVES - MALE

TROJAN- ENZ - CONTRACEPTIVES - MALE

DOLLAR VOLUME

INDEX

DOLLAR VOLUME

INDEX

DOLLAR VOLUME

INDEX

DOLLAR VOLUME

INDEXTOTAL

HOUSEHOLDS 100.0 100.0 100.0 100.0

INC - <$20,000 116.7 50.2 54.4 70.4

INC - $20,000-29,999 89.0 110.3 62.7 63.7

INC - $30,000-39,999 115.2 104.0 123.9 75.4

INC - $40,000-49,999 57.0 92.4 119.3 125.8

INC - $50,000-69,999 100.9 139.5 124.4 134.4

INC - $70,000+ 109.7 104.8 126.7 133.7

Trojan is the stronger brand which is bought by middle to upper class income people.

Condoms in are mainly bought by HH incomes of $50K-$70K

Lifestyle has highest $ volume within that income bracket.

Demographics

DUREX - CONTRACEPTIVES - MALE

LIFE STYLES - CONTRACEPTIVES - MALE

TROJAN - CONTRACEPTIVES - MALE

TROJAN- ENZ - CONTRACEPTIVES - MALE

DOLLAR VOLUME

INDEX

DOLLAR VOLUME

INDEX

DOLLAR VOLUME

INDEX

DOLLAR VOLUME

INDEXTOTAL

HOUSEHOLDS 100.0 100.0 100.0 100.0SIZE - 3-4 MEM 105.6 143.0 107.8 118.5SIZE - 5+ MEM 161.8 77.1 150.4 140.2

AGE FH - UNDER 35 223.1 239.3 262.1 220.9

AGE FH - 35-44 89.1 83.8 118.7 142.8AGE FH - NO

FEMALE HEAD 172.4 144.5 121.9 125.9KIDS - ANY <

18 124.3 135.8 152.5 132.5KIDS - ANY < 6 229.3 229.7 223.7 190.8KIDS - ANY 6-

12 144.9 144.5 176.7 135.1LS - YOUNG

SINGLES 259.8 97.7 242.7 296.1LS -

CHILDLESS YOUNGER COUPLES

220.0 342.0 244.5 349.1

The Condom Buyer

Want $ volume index >120

Under 35 With children <6 Young singles Younger couples with

NO kids

Category Role “Maintain”

Total HouseholdsITEM $ (000)

DOLLAR

SHARE

ITEM BUYERS

(000)

ITEM PENETRATIO

N

ITEM $ PER ITEM TRIP

N=RAW BUYERS

DUREX - CONTRACEPTIVES - MALE

TOTAL U.S.

9,850.3 14.5 1,089.7 0.9 5.9 484.0

LIFE STYLES - CONTRACEPTIVES - MALE

TOTAL U.S.

8,675.1 12.8 883.2 0.8 7.4 396.0

TROJAN - CONTRACEPTIVES - MALE

TOTAL U.S. 17,415.1 25.6 1,756.1 1.5 8.0 758.0WEST SOUTH CENTRAL 1,425.9 25.0 187.4 1.4 6.4 89.0

TROJAN HER PLEASURE - CONTRACEPTIVES - MALE

TOTAL U.S.

3,342.4 4.9 324.1 0.3 8.0 125.0

TROJAN MAGNUM - CONTRACEPTIVES - MALE

TOTAL U.S.

4,593.2 6.8 428.7 0.4 7.3 143.0

TROJAN- ENZ - CONTRACEPTIVES - MALE

TOTAL U.S.

11,011.8 16.2 1,054.1 0.9 7.9 469.0

The condom industry would be considered a maintain category role. Has a LOW sales

volume. % Gross Margins

High. Low penetrationNot bought regularly but higher price raises GM in category.

Dominant Brand

Condoms Category Scorecard Fall 2011MFR WM6_FO WMS.D._FO WGNscl_FO USAclg_FO TRGT_FV_FODurex % of Total Face 13% 10% 11% 25% 13%

% of Total GM 12% 8% 11% 26% 13%% of Total N 16% 10% 11% 25% 14%N 8 4 6 7 5

Lifestyles % of Total Face 16% 17% 17% 11% 13%% of Total GM 11% 11% 15% 10% 9%% of Total N 18% 18% 17% 11% 14%N 9 7 9 3 5

Trojan % of Total Face 71% 73% 72% 64% 75%% of Total GM 78% 82% 74% 63% 78%% of Total N 67% 73% 72% 64% 71%N 34 29 38 18 25

Total % of Total Face 100% 100% 100% 100% 100%% of Total GM 100% 100% 100% 100% 100%% of Total N 100% 100% 100% 100% 100%N 51 40 53 28 35

Trojan is the dominant brand and leading in shelf space. WM 6th & Walgreens has the highest depth and share of display for leading brand. Target had 2nd lowest number of SKU’s but highest % total facings for Trojan.

Stock Rate and Leading Brand

Brand # of Retailers Stocking Stocking Rate

Trojan 6 61%

Durex 6 56%

Lifestyle 6 51%

Each brand has a significantly high Stocking rate Trojan has the highest stocking rate of 61% Each brand was found at all 6 stores. Lifestyle had lowest stocking rate but had more shelf space than Durex.

Gross Margins

Retailers are giving facings to margins not volume for category. Gross margins are high and sales volume are low making up maintain

category role. Dominant brand has more depth, more shelf space, and higher GM’s at all

retailers.

Private Label???

• No Private label in category.

• Quality and brand loyalty is a major factor to consumers in category, so private label would be hard to introduce.

• Trusted brands would still get purchased over private label even though it’s a quick purchase product.

• Also remember the demographics for condom buyers are people with higher incomes and age 35 or younger “aka” The Condom Buyer!!!!!

Private Label Presence

• Private label would NOT work in the category!!!

• Leading brands like Trojan can be a premium brand, and the price of Lifestyle could compare to private label price/brands.

• Walgreens leading in private label products wouldn’t want to have private label condoms. That’s why their prices are twice as high as leading retailers.

Recommendations

• Since there is no private label in the market USA drug could increase their depth of national brands.

• Add more of an assortment of dominant brand Trojan.• Even add more Durex and Lifestyle.

Thanks For Listening!!!