Retail News South Africa

Condom market lubricated by dramatic increase in sales

Recent research has indicated a radical increase in condom sales from just under 1 million units in 1997 to 6.6 million in 2001 and 14.8 million in 2004. These significant increases, averaging 27.2% per annum over the last 5 years are testament to the significant work of the Society for Family Health/PSI South Africa in terms of its commitment to contribute to positive health and social change in South Africa.

In addition to volume increases, SFH has reduced unit cost of goods by more than 20% per annum over the last 4 years and distribution has been expanded to 14 000 outlets including traditional wholesale and retail chains as well as non-traditional condom outlets - cafes, spazas, taverns, shebeens, beauty parlours - with the result that SFH is estimated to own 69.8% market share for the Lovers Plus and Trust brands.

David Nowitz Senior Marketing Manger, SFH, recently received the research in the condom category sponsored by ACNielsen.

Ken McArthur, managing director, ACNielsen Marketing and Media, says: "By helping SFH we will be helping them to achieve their objective of ensuring that condoms are within walking distance for all South Africans.

"ACNielsen as a global organisation recognises the major issue of HIV/Aids in South Africa and the world. There is a necessity for supporting preventative programmes across the country an as part of our social responsibility programme we are in a position to supply information which we hope will help the SFH in identifying their distribution and availability needs."

Nowitz says the specific genre of trade research is unique to ACNielsen and details distribution information across class of trade (retail chains, garage forecourts or pharmacy and so on), as well as region, branch and retailer: "With this research we can identify the retailer, and the particular store (eg Pick 'n Pay, Southrand or Spar Eastern Cape) and rectify the issues of sales, shelfspace and stock depletion/replenishment with the facts at our fingertips."

SFH has used social marketing to make condoms attractive, available and affordable to its target audience. Social marketing is the non-profit use of commercial marketing tools to make quality health products and services available at low prices.

"With the ACNielsen research in hand, we are once again able to move forward with our marketing objectives by attending to gaps and weakness in the market, while continuing to enhance our successes," Nowitz says.

Let's do Biz