Sunday, November 24, 2019
Assignment Durex Essay Example
Assignment Durex Essay Example Assignment Durex Essay Assignment Durex Essay The county has seen a shift from a conservative society to an increasingly open perspective. Condoms can be easily purchased at most petrol kiosks and convenient stores and are usually placed near the counters. Singapore are also seen as materialistic and brand conscious when it comes to purchasing (Google Books, 2015). More youths are also engaging in sexual relations at a younger age due to such influences like internet, media, and society at large (Enid Grubber, 2010). It is important that Dared constantly pays attention to these changes in society and constantly reposition its brand to avoid being seen as an out-dated brand. This way, it is able to connect to he youths and to avoid being stigmatize but the younger generations. In Singapore, technology is integral in the growth due to the limited resources. Singapore are mobile saws with 88%, either owning an Apple device or an android device that enables them to have access to the internet wherever and whenever they need it (semaphores in Singapore: A Whitepapers Release, 2012). However, technology is also a double-edged sword; while it can provide fast information but it can also be a Source of clutter. This provides a challenge for Dared as it has to compete with other online advertisements to reach out to the market. At the same time, because of technological advancements, this also allows condoms to be an alternative for contraceptive pills. In the recentness, Dared has caught up with the technological and social trend which allows them to reach out to more youths through the use of floggers, Youth and Google by purchasing the condoms online. By doing so, Dared has effectively addressed most of the PESTLE concerns by shifting their marketing efforts in that direction (Lovingly, 2014). Singapore has a tropical climate with humid temperatures, however, this does not affect Dared much as all of the products are not affected by seasonal or climate change. Singapore is a moderately green country and with their increasing efforts to categorize wastes accordingly, there is still a low adoption rate of these practices among households. As such, condoms are often used during personal time or at homes and are usually not disposed in a green manner. Dared condoms are made of Latex, Polystyrene and Polyurethane, which are not biodegradable materials (The Condom Depot Learning Center, 2014). This means that they must either be burnt or disposed in a landfill. There are no landfill taxes to be paid in Singapore, however, expired/unsold condoms are turned to Dared to ensure that they are not irresponsibly sold or disposed. This also means that Dared has to take on the costs of disposing off unwanted condoms and affects their profit of margin. There are no legal restrictions on the sale and use of condoms in Singapore, however, the legal age to have sex is at the age of 16 years old and 1 8 years old for commercial sex (Congregationalisms. Com, 2011). Therefore it is also a regulation that the condoms are to be accompanied by a user manual. This user manual often comprises of a pictorial diagram So as to cater to all. This ads additional production cost to the product. There are not much legal implications for Dared Singapore to enforce the legal age to have sex but however, they spend more resources on promoting safe sex as part of their social responsibility. 3. Porters Five Forces Analysis 3. 1 . Threat of New Entrants (Low) Due to the costs and access to the distributive channels for the industry, the threat of having new entrants in this trade is seemingly low. Action for Aids (FAA) by World Health Organization (WHO) have been promoting prevention of HIVE and Studs constantly but with little demand for condoms, companies eke Dared have put in all their investments in this particular industry. Dared does not only produce condoms but they have also constantly produced new products to compete with the other condom brands in the market, with the products at a lower and affordable cost. 3. 2. Threat of Substitutes (Moderate) Besides the myriad of condom brands available in Singapore, there are also many alternative contraceptive measures that are popular among Singapore. Condoms are socially viewed to be the less pleasurable method, and are also attached with the stigma of embarrassment when making the purchase (Thinkers. Erg, 2014). Because of this, many youths tend to shun away from using condoms. Less informed youths may use withdrawal as a mean of contraception, although strictly speaking it is counted as unprotected sex. More informed youths may choose natural contraception, abstinence from penetrative sex or even oral contraceptives. There also are surgical contraceptive methods available that are limited due to the permanent effects. However, this suits a particular older market; those who have made decisions or also due to health reasons. The threat of substitutes is moderate due to the propensity for the market to eek out other alternative contraceptive methods. As sex and contraception are intimate and personal decisions, it is often hard to alter the mind-set of the market. Recently, Dared has made several efforts to introduce Fatherlier, thin and skin like condoms to change this (Dared. Com. My, 2015). 3. 3. Bargaining power Of Suppliers (Low) Most of todays condoms are made of latex and other synthetic materials. The primary ingredient for these is rubber. The 5 main suppliers of this commodity are Thailand, Indonesia, Malaysia, India and Vietnam; all of which are very close to Singapore, reducing the supply chain cost. As these sources re also located within SEAN region, it is not difficult to switch supplier from within the country, or even to source for materials in neighboring countries (Steve B. Scoot, 2015). Hence, the bargaining power of supplier is low. Furthermore, there are recent developments to use synthetic rubber (Polypropylene) as an improvement to latex condoms provides and alternative supply source for Dared. Since it is a synthetic rubber, Polypropylene is easily produced and available throughout the world. The low cost in the supplied materials are vital for Dared to be able to keep the condoms at a low price point to remain competitive. While the selling point of the product does not always directly relate to the quality of the material used, Dared spends a lot on to constantly develop and improve their products on materials. 3. 4. Bargaining Power of Customers (High) In the Singapore market, condoms are easily available at all convenience stores and are often placed near impulse purchase shelf areas. This is because the nature of the product is fast moving and disposable. To further add on, there are way too many other competitor brands with a variety of other different product offerings. A lot of youths also chose to have unprotected sex, due to the many social related issues despite the low cost of condoms in Singapore (Heartfelt. Asinine. Com, 2015). This makes the bargaining power of Dared customers high. Although Dared is a well-positioned brand and more recognized, there is little brand loyalty among customers due to the discussed points. Competitor brands are similarly priced coupled with the affluence of Singapore make the cost of switching to a competitor brand very easy. Any significant changes in the price of Dared condoms can cause a loss of customers unless the price change can be justified by the product offering. 3. 5. Competitive Rivalry (High) Competitive rivalry in the industry is relatively high. This is because of the nature of the product that is low involvement and customers have little loyalty. It is hard to differentiate the products from other brands and it, coupled with the difficulty of marketing to the masses. This high competitiveness has driven the various companies to constantly innovate to differentiate. From condoms of different flavor, texture, and thickness are all efforts by brands to grab the attention of the fickle consumer. Dared has responded to this rivalry by creating bundle packs of pleasure gels and sex sys along with condoms to be branded as an advocate of enjoyable and safe sex. Dared is able to differentiate themselves from other competitors by addressing the perspective that condoms are a pleasure-kill. Ultimately, regardless of all the marketing and bundles that Dared can offer, the core product offering of a condom is fundamentally the safety and assurance that it provides to consumers. The measure of safety and reliability is often intangible and difficult to market out. Hence, Dared strategies to compete against rivals involve providing scientific data to instill assurance and life in Duresss technology. Dared is a company with relative branding in Singapore with quite a range Of products they have displayed on the shelves. Not only their products are of good quality, they are also constantly coming up with new flavors and innovations. However, compared to the prices of their competitors, Dared products are still relatively higher. Therefore, the four strategic recommendations are Cost Leadership, Differentiation Strategy, Diversification Type and Diversification Process. 4. 1 . Concentration Strategy Based on the brand equity that Dared has already built up, it would be advantageous for the company to continue investing and further strengthening their foothold in the industry. With the application of Nations Matrix, there are many directions that Dared can pursue in the industry. Remaining in the industry allows Dared to focus more resources onto developing better products so as to gain leverage over the competitive market in Singapore, as shown in the Porters 5 forces analysis. 4. 2. Concentric Diversification As the social and technological trends develop, it is difficult for a company like Dared to predict and react. Hence, a strategic move is for Dared to acquire ND develop into other forms of contraception industries (both commercial and medical) so as to remain a key player in the industry. Regardless of what forces exert pressure, Dared will be able to have a certain degree of influence over the market and its environment. In order to further influence those with no brand loyalty, innovation can often help to tip customers in choosing Dared. As with the case of Samsung, by introducing many innovative products to the market and reacting to the consumer preferences can actually help to differentiate how different the brand is from the others. For example, Dared came up with an ultra-thin Indo ranged Fatherlier is a good strategy to attract customers. Dared also has a superior research team which further adds on to the branding (Dared. Com. So, 1 915). Although the price range of Dared may seem affordable, however customers think of Dared much more as a premium brand compared to other competitors like Spire and Oakmont. Hence, implementing low costs to beat the competition is ideal for the saturated market in Singapore and at the same time, this also allows Dared to gain more brand loyalty customers. For example, current pricing at $7 may not be attractive to win impulse buyers or hose who have no brand preferences. Hence, if the price range of Dared is justified this may in time gain brand loyalty customers. In the recent years, Dared has managed to find much marketing success online. Much of this is because of the Singapore culture and environment that Dared is able to benefit from. However, the strict advertising policies still pose a problem for the industry as it is difficult to market and stand out. Furthermore, as a low cost product, little emotional attachment and buyer involvement, Dared has done more to innovate and differentiate themselves from competitors.