Marketing Strategies for Sagami Rubber Industries - Case Study Example

Running Headers: MARKETING PLAN FOR SAGAMI'S POLYURETHANE CONDOMS Name: Course: Institution: Instructor: Date: Table of Content: Table of Content: 2 Executive summary Sagami Rubber Industries was the first company to manufacture coloured and dotted condoms in the world. It is also ranked as the first company to produce a condom that has the ability to adjust to the PH inside a woman’s vagina. The reliability and focus on Sagami’s condom business is further illustrated by the manufacture of the world’s thinnest condom in history which is considered to be 0.02 mm thin. A 30 years special review of material and research resulted in the production of a special polyurethane condom, one of the top brands in Japan. This marketing plan seeks to expolore into the company’s polyurethane condoms and provides reasons why these condoms should be adopted in Australia’s market, since these condoms are not just like any other condoms manufactured by other company’s, but their unique focus on creating polyurethane condoms, have been accompanied by numerous special characteristics, which gives them an advantage over other condom producers. Introduction Sagami Rubber Industries Company was founded in the year 1934. It is considered as the first company in Japan to manufacture condoms. Since then the company has supplied condoms to more than eighty countries worldwide. However, in each of the countries that are supplied with condoms, Sagami’s products have always been highly ranked in consumer reports, thus continues to enjoy extensive popularity as one of the world’s best producer of condoms, (ELC International Staff, 2006). The company started by manufacturing latex condoms for the first time in Japan in 1934. These are known to be made from finest natural rubber latex obtained from Malaysia. Supported by high level production technology and strict quality control, the company continued to produce very high quality condoms for seventy years. In 1970, Sagami established a joint venture company in Malaysia, which was its primary source of latex. The company then acquired ISO 9002 certification in 1992, which has now been upgraded to ISO 13485-2000, which assures quality production. Then company then carried out a thorough review of material and research for over thirty years and as a result, Sagami Company was able to come up with a condom that was made from special polyurethane, the Sagami original, , (Kaigisho, 1989). It is considered as one of the top brands globally, due to the natural feel that makes it totally distinct from other brands. Sagami Original 0.02 is only twenty microns thick, which is estimated to be one third the thickness of a latex condom. It is widely used in Japan and Asia and other countries of the world. It is used by discerning consumers who require thinness for increased sensitivity and yet look for superior strength for increased protection. The popularity of Sagami’s polyurethane condoms has already spread to Italy, Spain, France, Portugal, Sweden, United States, Finland, Norway, Mexico, Indonesia, and Hong Kong and the products are now available in Australia. Mission statement Provide higher quality and unique products and services to meet the requirements of consumers and business partners. The company pursues technology and innovation to strive for perfection in quality and user experience of their superior condoms, (Katsura, & Gen. 2005). Products Sagami Rubber Industries primarily engages in the production and sale of condoms. It produces condoms made from both latex and polyurethane and sells them locally and to other countries, (Katsura, & Gen. 2005). Apart from these products, the company also produces probe covers and external catheters, and plastic films. It also offers a variety of healthcare services and products. It supplies its products to about eighty countries globally, (Kaigisho, 1989). Financial situation Year after year, Sagami Rubber Industries Company has continued to experience a shrink in its revenues from approximately four point eight billion Japanese Yen to about four point five billion Yen, although the company realized a net income growth from one hundred and fifty six point three million Japanese Yen to three hundred and twenty two million Yen. A reduction in the percentage of sales devoted to cost of goods sold from seventy one point one percent to sixty two point three percent was a key component in the bottom line growth in the face of the falling revenues. The net income for the last financial year stands at three hundred and twenty two point two million Japanese Yen, (Sagami Ham Co Ltd, 2010). Strengths of polyurethane condoms Polyurethane is an elastomer polymer that is tough, resistant and flexible. This material is also used in other consumer products such as fit gather of paper diapers or even sports wear. In the medical field, this material is used in making of artificial hearts or vessel catheters because of its high reliability and biocompatibility, (Matsumoto, Koizumi, & Nohara, 1972). Sagami Rubber Industries focused on the strengths of polyurethane, and after many years of extensive research, the company came up with a condom made from polyurethane in 1988. Polyurethane condoms are normally stronger, thinner and less constricting compared to latex condoms and because of that, this product has received a highly favourable reputation from many of its users. It has several other special characteristics that make it outstanding compared to other condoms. One of the special characteristics of polyurethane condoms is its thinness. It is estimated to be 0.02 microns thin. The strength of polyurethane gives this product the ability to be much thinner than the normal latex condoms. Indeed, polyurethane condoms are considered to be thinnest condoms in the world since they are half the thickness of normal latex condoms, (Icon Group Limited, 2000). They are also odourless because they contain no proteins and therefore there is no rubber latex smell. Polyurethane condoms also have a strong feature of heat conductivity for a more natural sensation and extra pleasure. They are also tough and they are estimated to be about three times higher pressure bursting and two times higher tensile strength compared to the normal latex condoms. This product is also considered to have long life stability and since it contains no latex, it can be used by consumes who have an allergy to latex condoms. Polyurethane condoms are also highly transparent hence creates visually natural feeling and is also biocompatible and non toxic, thus guarantees the safety of the users. Compared to the standard latex condom, polyurethane is also considered to be much more resistant to oil and is also smoother, (sha, 1965). Alignment of the urethane molecules under high density gives this product a smoother surface and a natural feeling. Unlike other condoms, each polyurethane condom is packed in its own individual Blister Pack, (Kippley, & Kippley. 1996). The foil lid is easy to open and the tray and lid protects the condom from damage unlike other sachet packs, which when being opened can lead to tearing of the condom. The packaging contains the silicon oil lubricant and a condom and has no powder. They are also clean and hygienic. Weaknesses Polyurethane condoms are indeed considered by many of its users to be good. It is a norm that every thing considered best has to be achieved at a higher cost. Thus, compared to other normal latex condoms, polyurethane condoms are more expensive, (Kippley, & Kippley. 1996). Apart from being expensive, polyurethane condoms have also been supplied to few countries. Market statistics show that the company has been able to sell this product to approximately eighty countries globally. This shows that most people are not yet accessible to this product. Opportunities Sagami Rubber industries Company produce condoms to fit all user preferences. For instance, it produces the coloured condoms for those who prefer to use coloured condoms, dotted ones for those in need of them, latex condoms and the recently introduced and most preferred polyurethane condoms due its numerous qualities among them the ability to adjust to the vagina’s PH level and its ability to use water based lubricants, (Nihon Shoko Kaigisho, 1989). Thus, the company has everything the consumer needs and suits all consumer tastes and preference. In order to earn more profits, the company can decide to sell its products worldwide and target other smaller countries that have not been accessible to the product, (Icon Group Limited, 2000). This can be achieved through the use of internet and other media devices to advertise and explore markets for its products. Another opportunity is that since the company is considered to be the first to produce the thinnest condom in the world, it can partner with different governments from various states and establish patent rights, which will allow the company to have exclusive ownership of the product and avoid competition. Threats Technology is good but is also accompanied by different negative impacts. For instance, in the world today, people can reproduce a product that totally resembles that of the original producer. This has been on of the biggest threats facing our markets today. Thus, a person may produce another brand of condoms, which in actual sense may resemble the original polyurethane condoms call them polyurethane condoms since this product is known to be the most preferred by consumers, (Kippley, & Kippley. 1996). This may have a negative impact to the company since it may experience a fall in its sales. Another threat is competition from other condom manufacturing companies. Since other companies have realized that polyurethane condoms are trading higher in the market, they may also come up with another brand that may be closely related to this product or they may opt to introduce another cheaper brand that has almost the same characteristics as polyurethane condom. This may in turn face out polyurethane condoms from the market. External environment Sagami Rubber Industries Company is known as a condom manufacturer in Japan. Its products are highly ranked over other products both domestically and internationally. The company acquired ISO 9002 certification in 1992, which has now been upgraded to ISO 13485-2000, which assures quality production. Because of its quality production, the company receives government support since it follows the stipulations set by the government concerning manufacturing. The country’s economic, political and social environment is favourable and allows the company to carry out its operations. The countries economy has been steady and for years allowing the company to carry out its operations. This is the reason why the company has remained effective since the year 1934. The company faces stiff competition from other condom manufacturers. For instance, Okamoto Industries recently started manufacturing a new sensation type of condom that features bumps on the surface and menthol-based jelly. However, the company has maintained its top rank as the country’s best manufacturer since the latest polyurethane condom if rated as the world’s thinnest condom, thus giving it an exclusive advantage over other condoms, (Nihon Shoko Kaigisho, 1989). Marketing objectives The company’s marketing objectives include arousing as many interests as possible in order to get bigger sale of their products. The company also aims at enhancing its brand value. It produces a variety of condoms to fit all consumer preferences such as coloured, dotted condoms and the recently produced polyurethane condoms that have numerous advantages, and thus targets all types of user preference. Marketing strategies Sagami Rubber Industries Company markets its products through different ways. It conducts sales promotions which are aimed to woo customers to buy their products. It also sets up events which are aimed to give its customers an actual view of the various brands that are produced by the company. It is during such events that customers are taught about the various advantages of using their products. The target group is mainly the youths who can not refrain from sex before marriage and also commercial sex workers, (Icon Group Limited, 2000). The company also targets the married couples who opt to use condoms as a way of family planning. Regarding to polyurethane condoms, they basically target people who have a latex allergy. It is mostly preferred by users who seek thinness for increased sensitivity and superior protection. The company conducts sales promotion in many ways since the introduction of the product into the Japanese market. These include television advertisements, which have been aired throughout the country, (Kippley, & Kippley. 1996). In these advertisements, the company provides the differences of using this product compared to others. Apart from television advertisements, radio advertisements are also conducted, which target housewives and taxi drivers. Newspapers advertisements are also conducted such as Yomiuri Shinbun and Asahi Shinbun, which is the largest newspaper in the whole of Japan, (Nihon Shoko Kaigisho, 1989). The company uses simple expression and strengthening the impact to lure customers to but polyurethane condoms. In order to attain high acknowledgement of this product, the company puts continuous adverts on tabloid papers, (Standard New Zealand, 1999). Magazine advertisements are also used as a method of sales and promotions. These are mostly used during the months of August and December since they are considered as the best seasons for condom sales. Selection of magazines considering the generation of readers and sales channels allows the company to conduct promotion campaign intensively. For instance, during the FIFA world cup in Japan and Korea in 2002, the company used magazines for its advertisements and targeted the world cup football fans. Music events are also used as a means of sales promotion. This often targets people of the younger generations, basically those in the tens and twenties generation. The company holds an event every winter and summer for safe sex, known as ‘protected’. In this event, representatives of Japan’s hip hop artistes advertise Sagami’s polyurethane condoms with free samples. This event is then featured on magazines, radio, televisions and even newspapers hence arousing interests. The company also conducts tie up promotions in movies, Olympic Games, snowboard field and MTV. These aim at arousing more interest about the product and enhancing the brand value. Apart from that, the company also conducts free sample distribution as a way of sales promotion in order to appeal this product to users, (Icon Group Limited, 2000). The company hires distributors from different countries to distribute their products. For instance in Australia, the authorized sole distributor of Sagami is Instantron Pty Limited. The company offers bulk order discounts for purchases of five hundred pieces or more, (Katsura, & Gen. 2005). For example, for orders ranging from five hundred to nine hundred and ninety nine, customers are offered five percent off the price, from one thousand to one thousand four hundred and ninety nine, they get ten percent off the price while those purchasing more than one thousand five hundred pieces get a fifteen percent pay off. However prices differ from one country to the other. Conclusion Sagami Rubber Industries Company specializes in the production of condoms, made from both latex and polyurethane and other plastic products. These products have been highly ranked both locally and internationally. Polyurethane condoms are now highly advertised and marketed in several countries due to numerous advantages that place this product high compared to other condoms. These include heat conductivity, smoothness, thinness, less constricting and the better packaging. Efforts are being made to ensure these condoms dominate the Australian market, (Standard New Zealand, 1999). However, considering the numerous advantages polyurethane condoms have over other condoms, I would recommend that people should switch to polyurethane condoms for increased sensitivity and pleasure. However, one big disadvantage of polyurethane condoms is that they come at a higher cost compared to other brands hence they are available to the high level income earner only. Still, the fact remains, you have to spend much to obtain something considered to be the best, and thus this justifies the cost, (Icon Group Limited, 2000). References ELC International Staff, 2006. Asia's 10,000 largest companies: marketing and financial information on Asia's top companies, Volume 18. ELC International. The University of California. 0948058854, 9780948058851 Icon Group Limited, 2000. Labour Productivity Benchmarks and International Gap Analysis. Icon Group International. 0597286868, 9780597286865 Icon Group International, 2000. Sagami Rubber Industries Company Limited: International Competitive Benchmark and Financial Gap Analysis. Icon Group International, Incorporated. 0597116601, 9780597116605 Janet Shibley and John Delamater, 2006. Understanding Human Sexuality. 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