1. OK CONDOMS RENOVATION
Marketing Proposal
October 3, 2013
Presented by
Lê Xuân Yến Nhi
Lê Thị Tuyết Ni

2. BACKGROUND INFORMATION
DEMOGRAPHIC.
• GDP per capital: 1,540USD
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Demographic :
Aging population;
Portion of children decreases;
Imbalance in gender,
Imbalance in population in urban and rural area
(27.44% living in the urban and counting);
 Majority of the women care about
contraception.
•
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Lifestyle:
11.2% of teenagers have sex,
33.9% of them doesn’t use contraception
Average age at first sex is 18.2 years old ;
82.6% use condom,
13.1% use birth control pills.

3. BACKGROUND INFORMATION
GEOGRAPHIC
HA NOI
SAIGON
6,448,837 people.
7,123,340 people.
More collective.
More individualistic.
Ask others’ opinions prior
to purchase.
Make their own purchase
decisions.
Love promotions and more
aware of prices.
Buy what they need when
they need.
More impacted by
advertising.
Less impacted by
advertising.
Brand loyalty.
Lower loyalty to brands.

4. • Power Distance (70): people
accept a hierarchical order.
• Individualism ( 20):
Collectivistic society fosters
strong loyalty, relationships
and responsibility.
• Masculinity (40): Feminine
society values consensus,
equality, solidarity and
quality.
• Uncertainty avoidance (30):
Low preference for
uncertainty avoidance so
people are more flexible and
relaxed attitude.
• Long-term Oriented (80):
ability to adapt traditions to
a modern context.

5. BACKGROUND INFORMATION
DISEASE
• Sex Education: Lack of knowledge
and skills about sexual problems
due to lack of education; Don’t
have the gender knowledge
system.
• Abortion rate : 300,000 cases/
year, 4-5% of those is teenage. VN
has highest abortion rate in SEA
and rate 5th among the world.
• HIV/ AIDS: About 0.6% of the
population has HIV.
• STDs: sexually transmitted
diseases – about 20
types transmitted between huma
ns by means of sexual behavior. In
Vietnam, 800,000 – 1m people get
STDs each year.
Year
Living
people
who have
HIV
Year
Living
people
who have
HIV
8/2007
128.367
3/2010
164.197
3/2008
123.775
9/2010
180.312
6/2008
129.722
12/2010
183.938
8/2008
132.048
3/2011
185.623
06/2009
149.653
9/2011
193.350
09/2009
156.802

6. BACKGROUND INFORMATION
INDUSTRY
• Condoms are convenient good with low purchase
involvement.
• High social risk: fear of being judged or
discriminated by others when the person is
known to use/ buy the products.
• Main players:
Durex, Okamoto, OK, Sagami, Unidus.
• Factors competing on: price, quality, brand
reliability.
• Awareness of brands: Most people place Durex
in their evoked set and others in inert set.

7. OK CONDOMS
 OK rubber latex condom are made in Thailand by
Thai Nippon Rubber Industry Company.
 Package is boring and “cheap”.
 130,000 VND for 144-condom box and 5-8,000VND
for a 3-condom box.
 Mainly distributed through the chain of pharmacy
and used by hotels business.
 No distribution at supermarkets, retailers or
convenient stores.
 Not well marketed and promoted.
 Past promotional material are not engaging.
 No continuous and updated promotional activities.

8. VALUE PROPOSITION
Desired
position
Current
position

9. POSITIONING MAP
Sagami
High reliability
Okamoto
Durex Unidus
Cheap
Expensive
OK
Low reliability

10. TARGET MARKET
Young adult 18-24
Social group
BCD
High school and university students, blue and white
collars
Lifestyle
Thinker, achiever, experiencer
Personality
Sincerity, health cautious
Benefits
Behavioral
Male & Female
Occupation
Psychographic
Ho Chi Minh city, Ha Noi capital
Age
Demographic
Region
Gender
Geographic
Health protection, pregnancy and STD prevention, self
and sex partner assurance
User status
Potential users, First-time users, Regular users
User rate
Low to medium

11. CUSTOMER INSIGHT
• About condoms: People
who are knowledgeable
and understand the
benefits of having safe sex.
People who use condom to
protect themselves and
show responsibility to their
partners.
• About OK condom: OK
condom – Live to love, love
to live.

12. PROJECT OBJECTIVES
70%
60%
50%
40%
30%
Demand
20%
Sales
10%
Dec-15
Aug-15
Apr-15
Dec-14
Aug-14
Apr-14
0%
Dec-13
• Increase demand
from 45% to 65%
• Increase awareness
of OK.
• Increase OK sales by
15%.

13. SWOT ANALYSIS
•
•
•
•
Subsidized by Government
Affordable price
High awareness
Direct distribution to all
pharmacies in Vietnam
Strengths
• Sex education has been brought to
school curriculum.
• More distribution channels are
available:
clubs, retailers, convenient stores
and so on.
• Vietnamese are more open to the
sex culture.
• Limited marketing activities from
the competitors except for Durex
Opportunities
Weaknesses
Threats
• No continuous and
updated improvement
of products and
promotion.
• Ineffective marketing
team.
• Distribution channels
are not maximally
deployed.
• Cultural and social
restrictions.
• Many substitutes available
such as pills.
• Low brand loyalty.
• Strong competitors: Durex
and Okamoto

14. PROPOSED MARKETING STRATEGIES
• OK Condom brand is not in evoked set and it
has characteristics of habitual decision making
product. Disrupt strategy is used to regain and
strengthen its position.
1. Product.
2. Price.
3. Place.
4. Promotion.

15. MARKETING STRATEGY BASED ON INFORMATIONSEARCH PATTERN
Brand
position
Target market decision making pattern
Habitual decision
making
Brand NOT in
evoked set
4-15
Extended decision
making
(no search)
Brand in evoked
set
Limited decision
making
(limited search)
(extensive search)
Maintenance
strategy
Capture strategy
Preference
strategy
Disrupt strategy
Intercept
strategy
Acceptance
strategy

16. PROPOSED MARKETING STRATEGY
PRODUCT
Core Product
Actual
Product
Augmented
Product
• A barrier device used during sexual intercourse
• Helps reduce the probability of pregnancy and STDs
•
•
•
•
•
•
•
Brand Name: OK condom.
Existing product: Classic OK Condom.
New Luxury Product line: Flavors , Sensations, Breakthrough.
Quality level: Moderate
Package: 3-condom box and 12-condom box
Packaging: Red (Classic); Silver ( Flavors); Gold ( Sensations); Black (Breakthrough)
Feature: Latex material with additional flavors.
• High warranty
• Improved distribution channels
• Accessible post purchase and hotlines.

18. PROPOSED MARKETING STRATEGY
PRICE
• Slightly increase price for Classic product:
9,000VND per 3-condom box.
• Set higher price for new product line:
24,000VND per 3-condom box.
• Pricing method: cost-based (current products)
and value based pricing strategy (new product
line)

19. PROPOSED MARKETING STRATEGY
PRICE
• Price strategy objectives:
• Maximize Current Profits: Higher prices to help improve
overall profit margins.
• Maximize Sales Quantity: Lower prices compared to
competitors – to increase the total number of items sold and
generate discounts or rebates from suppliers or wholesalers.
• Generate New Customers: Flat fee pricing to generates
additional customers.
• Create Additional Sales Opportunities: Existing customers –
especially satisfied existing customers – are fertile ground for
additional purchases.

20. PROPOSED MARKETING STRATEGY
PLACE
1/ Without intermediaries:
• OK Website and Hotline.
• OK vending machine.
2/ With intermediaries
Selective distribution channels:
• Convenient store
• Pharmacy
• Retailers
• Supermarkets
• Hotels
• Online selling
• Clubs

21. Proposed marketing strategies
PROMOTION
OBJECTIVES
• Raise awareness of OK product through the
OK renovation by communicating the new
packages and differentiating the new product
line and the existing one to the market.
• Raise safe-sex awareness and encourage
people to use contraceptives and protection.

22. Proposed marketing strategies
PROMOTION for OK CONDOMS
• Interactive website
- Allow online purchase.
- Direct marketing: no use
of intermediaries.
• SEO keywords: baocaosu,
Baocaosuok, tinhducanhtoan,
Okcondom.
• Exclusive sponsoring for “Be Responsible” campaign
(refer to next slide)

23. Proposed marketing strategies
PROMOTION for BE RESPONSIBLE
Propaganda – “Be Responsible” Campaign:
• The OK Mascots
• Online competition – Video contest
• TVC – “Be Responsible? OK”
• Safe-sex courses at high schools and universities
• Banners at street poles/ Billboards/ Posters/
Booklets
• Bus stops

24. The OK Mascots
Guerilla marketing
• Have fun looking designed
mascots running around to
give out samples and
Booklets at high residential
areas.
• Let mascots drive motorbikes at centers to get
the immediate attention and media viral.

25. TVC – “Be Responsible? OK”
• Mascots will run to random
young people and ask “Will you
take responsibility for your life?”
• Respondents say “OK”
• Showing response from
Individuals and groups saying
“OK”
• OK Condoms
will appear as sponsor
at the end of the video.

26. Online competition- “Be Responsible”
• Participants age: 18-24
• Create a video to raise awareness about the use
of condoms.
• OK products need not to be displayed in the
video but no competitors’ brands are allowed.
• OK will appear as a sponsor for the competition.
• Youtube is the flat form.

27. TIMELINE

28. BUDGET
Cost Estimation provided by Triniad Company
and Khai Thong Media Company

29. KPI
KPI and Metrics
Benchmark
Return on investment
150%
(Applying 80/20 Pareto theorem.)
Incremental Sales
70% for online promotion. 30% for offline promotion.
Social Interaction
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
Youtube
Dec-15
Sep-15
Jun-15
Mar-15
Dec-14
Sep-14
Jun-14
Facebook
Website
SEO Keyword Ranking
Baocaosu
• Rank: 3
• CTR: 8.7%
okcondom
• Rank: 5
• CTR: 7.3%
Baocaosuok
• Rank: 15
• CTR: 4.4%
tinhducantoan
• Rank: 11
• CTR: 5.6%

30. Thank you from
the Chubby Bunnies
Họ và tên
Lê Xuân Yến Nhi
Lê Thị Tuyết Ni
Ngày sinh
29/1/1993
25/4/1993
Giới tính
Nữ
Nữ
Trường
RMIT Vietnam
RMIT Vietnam
Khoá lớp
Quản trị thương mại
Thương mại marketing
Địa chỉ
540 Nhật Tảo, F.7, Q.11
137 Bàu Cát 4, F.14, Q. Tân Bình.
Điện thoại
0982 291 193
0909 628 254
Email
s3426462@rmit.edu.vn
s3324412@rmit.edu.vn
Facebook
/ynle.allison
/lethituyetni
Youtube introduction video of the Chubby Bunnies