Condoms:

Dominican Republic
A market analysis

Prepared by Euromonitor International for Options
June 1, 2012
Contact:
Evan Shippee
Associate Consultant
Euromonitor International
www.euromonitor.com
evan.shippee@euromonitorintl.com
312.922.1115 EXT 8275

Contents
Market overview.....................................................................................................................................3
Condom environment.......................................................................................................................3
Market size, growth and trends....................................................................................................4
Product attributes...............................................................................................................................6
Competitive environment................................................................................................................6
Condom awareness in the DR.......................................................................................................8
Condom influences............................................................................................................................9
Channels....................................................................................................................................................9
Retail overview....................................................................................................................................9
Commercial condoms.....................................................................................................................12
Commercial condom overview................................................................................................12
Leading Brand Profile: Durex...................................................................................................12
Leading Brand Profile: Te Amo...............................................................................................13
Leading Brand Profile: Trojan..................................................................................................14
Social marketing condom sales..................................................................................................15
Free and generic condoms............................................................................................................19
Overview..........................................................................................................................................19
Government............................................................................................................................................21
Overview..............................................................................................................................................21
Forecast....................................................................................................................................................21
Overview..............................................................................................................................................21
Opportunities for Options..................................................................................................................22
Overview of opportunities.............................................................................................................22

Market overview
Condom environment
AsthegovernmentandNGOsincreasetheireffortstoraiseSTDawareness,Dominicansbecomemore
familiarwithcondomuse
CurrentattitudestowardsexualbehaviourintheDominicanRepublic(DR),reinforcedthroughcultural
traditions,arecontributingtotheincidenceofHIV/AIDSandothersexuallytransmitteddiseases(STIs).
Engaginginsexualactivitieswithmultiplepartnersisnotuncommonand,infact,isoftenculturally
encouragedasaneconomicrealitytohelpfinancethefamilyunit.Evenamongmarriedcouples,
particularlylowerincomecouples,menandwomenmaintainmultiplesexpartners.Menoftenprovide
moneytotheirloversandwomenmightnotonlyreceivemoneyfromtheirmaleloversbutalso
occasionallyprovidemoneytoaspecialextramaritalpartner.

Between2000and2005,theincidencerateforHIV/AIDSintheDRwitnessedadeclineastheDR
governmentbecamemoreengagedinpreventionprogramsandtheexpansionofhealthcareservices.
Additionally,NGOsandSocialMarketingOrganizations(SMOs)havecontributedsignificantlyto
HIV/AIDSeducationinthecountry.Itisestimatedthat1%oftheadultpopulationwasinfectedwith
HIV/AIDSin2002.By2007,theratedroppedto0.8%ofthetotaladultpopulation.Theseratesremained
stablethrough2009,overall.

Notwithstanding,highriskpopulationscontinuetoshowhigherratesofHIV/AIDSthanthegeneral
population,despitereducedincidencerateexperiencedamonghighriskpopulations.Accordingtoa
reportbytheUniversityofCalifornia,SanFrancisco,in2009anestimated4.8%ofsexworkersintheDR
wereinfectedwithHIV/AIDS,withthehighestrateof10.7%exhibitedamongmalehomosexuals(which
includemalesexworkers).Amongthegeneralyouthpopulations(ages1024),youngwomenshowed
higherincidencerates(0.7%)thanyoungmen(0.3%)1.Anumberoffactorsmightcontributetothislater
observation,includingwomenengaginginsexualencountersatanearlierage,thegeneralstatusof
womeninamaledominatedsociety,andtheneedtohelpprovideforthefamilyunitthroughfinancial
supportreceivedfromtheirlovers.Womenmayalsoenterintoprostitutionasameanstoacquire
financialsupport.

TheDRgovernmenthasbeenincreasinglysupportiveofprogramstotargethighriskpopulations
througheducationalandhealthcareinitiatives.AlongwithsupportfromNGOsandSMOs,attitudes
towardsexualbehaviourareimproving.IndividualsarebecomingmoreawareofthedangersofSTIs,
includingHIV/AIDS,andmorecognizantofpreventingunwantedpregnancies2.Accordingly,theyare
morelikelytopracticesafesexandaremorereceptivetocondommarketing,acrossthepopulation,
includinghighriskindividuals.Whileincidenceratesremainhigherinbateys(historicallysugar
plantationcommunitieswithhighpopulationsofimpoverishedHaitianimmigrantsandpoor
Dominicans),evenamongthispopulationHIV/AIDSratesdroppedfrom5%in2002to3.2%in20073.

1
2

Source:http://hivinsite.ucsf.edu
Referencestochangingbehaviorsarebasedontradeinterviewsandfieldinterviewswithretailers.Theobservationis

supportedbythecitedstatisticsindicatingreductionsindisease.
Source:http://www.ncbi.nlm.nih.gov/pubmed/19384103

ConcernsofabackslideintheprogressmadetoreduceHIV/AIDSandotherSTIsintheDRcreatethe
urgencytocontinueandevenexpandsocialawarenesseducationandhealthcareservices,including
condomdistribution,withinthecountry.Roughlyonethirdofthepopulationlivesatorbelowthe
povertylevel.Thisfactimpedeschangingbehaviourstoreducethenumberofsexpartners.Additionally
menareexpectedtousecondomswithnontrustedpartners(streetwomenorprostitutes)andrisk
offendingwomanwhoareconsideredtrustedpartners(frequentlovers)bysuggestingcondomuse
withthem4.

Notwithstanding,theoverallacceptanceofcondomuseisgrowingaseducationalresourcesandpublic
awarenessareexpanded.TheDRgovernmentisincreasinglymoreefficientinprovidingfree,nologo
condomsfordistributiontohighriskpopulations.Moreover,commercialcondombrandsare
implementingmoreaggressivemarketingstrategiesandSMOprogramscontinuetobeeffective.
Condomuseisincreasingamongyoungpeopleandretailersalsoreportthatfemalesarepurchasing
malecondomsfortheirpartnersusewithgreaterfrequency.

Individualswithhighereducationlevelsandhigherincomesarelesslikelytoengageinsexualactivities
withmultiplepartnersandlesslikelytocontractHIV/AIDSorotherSTIs.Continuedexpansionof
awarenessprogramsandhealthservicestohighrisk,lowerincomeandyouthpopulationsareexpected
toresultinmodifiedsexualbehavioursandanincreaseintheacceptanceanduseofcondoms,along
withreducedincidencelevelsofHIV/AIDSandotherSTIs.

Market size, growth and trends

Thetotalmarkethasgrownsince2009byalmost3millionunitswhilethecompositioninthesourceof
condomshaschangeddramatically;in2012commercialsalesclaimalargersharewhencomparedto
2009andthevolumedistributedthroughsociallymarketedchannelshasdecreased

TotalCondomDistribution
35,000
30,000
24,846

'000units

25,000
20,000
15,000
10,000
5,000

2009

2010

2011

2012F

2013F

2014F

Source: Euromonitor International

Source:ThesocialmarketinginterventionforHIVpreventionintheBateys.PSI,DominicanRepublic.

ThedistributionofcondomsintotheDominicanmarketflowsthroughtraditionalcommercialchannels
alongwithSocialMarketingOrganizations(SMOs)andgovernmentchannels.SMOssellsubsidized
condomstotheretailchannelandhotels/motelsthroughnongovernmentalorganizations(NGOs),
contractedsalesgroups,andsocialmarketingprograms.Thegovernmentdistributescondomsdonated
byinternationalagenciestoclinicsthroughoutthecountryandtohighriskpopulations.

In2010,themarketforcondomsreached26.1millionunitssoldanddistributed,a15.6%increaseover
thepreviousyear.Thisincreaseislargelyaresultofsignificantincreasesincommercialsalescoupled
withgrowthinSMOsalesanddistribution.Duringthesameyear,a6.2%reductioninthedistributionof
freecondomswasexperienced,from6.1millionunitsin2009to5.8millionin20105.

Commercialcondomssalescontinuedtoincreasein2011,reaching5.6millioninunitsales,andfree
distributiongrew8.1%to6.3millionunits.Notwithstanding,in2011thetotalmarketdrops4.8%to24.8
millionunits.ThisresultsfromasignificantdecreaseinsubsidizedcondomsalesthroughSMOs.In
additiontoincreasedcompetitionfromtheaggressivemarketingtacticsofcommercialbrands(both
highendandlowcost),SMOsexperiencedconflictsandinefficiencieswithinthedistributionchannels
employed.Measuresarebeingaddressedtostreamlinesubsidizedcondomdistributionbeginningin
2012andbeyond.

TheDRcondommarketcurrentlyappearstobeflushwithanincreaseover2009inthenumberof
brandsavailableandgreatervarietiesofproductofferings.Commercialbrandsaretakinganincreased
interestintheDRmarket,aresultinlargepartduetotheimpactofSMOsandgovernmentinitiatives
thathaveadvancedincreasedawarenessandeducationconcerningHIV/AIDSandotherSTIs.TheDurex
andTrojanbrandswhichofferhighendandhigherpricedcondoms,forexample,areengagedintough
competitionforthemiddleincometohighincomeconsumermarket.Bothbrandshavesignificantly
bolsteredtheirmarketingcampaignstoincludeawidervarietyofproductofferingsandenhanced
displaypresentations.

AnumberoflowerpricedbrandshavefloodedtheDRmarketinanattempttocaptureshareofthelow
incometomiddleincomesegment.TheTeAmobrand,manufacturedinChinaandwhichremains
somewhatofanenigma,hasaggressivelytargetedthelowtomidincomeconsumermarketseffectively.
Ansellwhichmarketsmultiplebrands,includingContempo,Lifestyles,KamaSutraandNYC6condoms,is
alsogrowingmarketshareamongthelowandmidincomemarket.ArelativenewcomertotheDR
condommarketistheMasculanbrandmanufacturedbyMPIPharmaceuticainGermany.

Inanotherdevelopment,theFemaleHealthCompany(FHC)ceasedoperationsintheDominican
Republicin2009.FHCmanufacturersafemalecondomthathasreceivedU.S.FoodandDrug
Administration(FDA)approvalandhasbeenwellreceivedworldwide.TheabsenceofFHCspresencein
theDRremovesacondomcontraceptiveoptionfromthetable;onethatparticularlyempowers
women7.NootherfemalecondomsareknowntobeavailableintheDominicalRepublic.

In2010,commercialsalesrepresented18.2%ofthetotalmarket,whileSMOsalesandgovernmentdistributionrepresented
59.6%and22.1%,respectively.
6
NYCcondomsareproducedforfreedistributionamonghighriskgroupsinNewYorkCity.Theyarebeingincreasingly
resoldintheDRillegally.Ansellproperlystampsthewrappingofeachcondomwiththedisclosure:NOTFORRESALE.Inthe
DRmarket,NYCcondomsrepresentapartofacontinuationofblackmarketsales.
7
Currently,theonlycondomproductofferedbyFHCistheFC2,anfemalecondomthatisinserted(www.femalehealth.com).

Notwithstanding,allindicationssuggesttheeducationalandawarenessprogramsespousedand
disseminatedbyDRgovernmentinstitutions,NGOsandSMOshavebeeneffective.Attitudestoward
condomusearebecomingincreasinglymorefavourable,particularlyamongstyoungerindividuals8.
Increasedknowledgeconcerningtheburdensofunwantedpregnanciesandtheriskofdiseaseinfection
hasincreasedacceptanceanduseofcondoms.Inaddition,condomretailersrepeatedlyreportthat
femalesarepurchasingcondomsfortheirmalepartnersingreaterfrequencies,breakingdownbarriers
ofatraditionallymaledominatedsociety.Demandforcondomswillcontinuetogrow;itisincumbent
uponthesupplychaintoenhancedistributionefficienciestomeetthisdemand.

Product attributes
Leadbyinnovationinhighendproducts,itisnowcommontofindproductswithdifferenttexturesand
coloursthatofferbenefitssuchasenhancedsensitivityanddelayedejaculation
IncreasedacceptanceofcondomuseintheDRhasledtoagrowingclassofdiscerningconsumers,
particularlyamongthemiddleandhighincomepopulations.BrandslikeDurexandTrojanofferawide
varietyofproductswithvaryingproductfeatures,includingcontours,textures,flavoursandcolours,
amongothers.Inaddition,thesebrandspromotepresentationstoenhancesensitivityanddelay
ejaculation.

Otherbrandshavealsobeensuccessfulbypromotingavarietyofproductoptions.TeAmopromotes
flavouredcondoms,alongwithLifestylesandotherbrandswithlessmarketsharesuchasAmoreMio,
SexxyandTrustex.Texturedcondoms,promotedasDots,DottedorRibbedarealsopopular
amongconsumers.

Promotionalcampaigns,primarilythroughmajorbrands(DurexandTrojan),havecontributedtothis
explosionindemandforvariety.Condomconsumersareincreasinglydesiringvarietyinproduct
offerings.

Competitive environment
Competitionamongcommercialbrandshasbeenfierceinrecentyears,asglobalbrandsDurexand
Trojan,wrestleformarketshare

Pant
Durex
TeAmo
Protector/Escudo
Trojan
Others

32%

TopBrands:
2011
3%
4% 5%

48%

8%
Source: Euromonitor International

Competitionisbecoming
increasinglyfierceintheDRcondom
market.Since2009,newbrands
havebeenintroducedintothe
marketandexistingcommercial
playershaveintensifiedtheir
marketingefforts.Mostmarketing
focusesonPointofSales(POS)
advertisingandcondomdisplaysin
retailoutlets(particularly
pharmacies)arebecomingmore
prevalent.

Basedontradeandretailinterviewsandobservations.

Twopowerhousebrands,DurexandTrojan,areengagedinintensecompetitiontocaptureanincreased
shareofthehighandmidincomeconsumermarkets.Thiscompetitionhasbolsteredsalesforboth
brands,increasingthetotalmarketshare9ofDurexfrom3.8%in2008to7.5%in2011;andforTrojan
from0.8%to2.7%respectively.Trojan,abrandownedbyChurch&DwightCo.,haseffectivelygained
shareofthetraditionalcommercialmarketlargelyattheexpenseofDurex(aReckittBenckiserbrand10).
Trojangrewfrom7.5%incommercialmarketsharein2008to11.9%in2011whileDurexdroppedfrom
a36%shareto33.1%duringthesameperiod.

Targetingthelowtomidincomeconsumeraudience,theTeAmo11brandhasincreasedtotalmarket
sharefrom3.3%to5.4%between2008and2011.Additionally,Ansellproducts,whichinclude
Contempo,Lifestyles,KamaSutraandNYC12,havealsogrown,from0.2%shareto1%totaland2.7%to
4.2%sharecommerciallyduringthisperiod.

Clearly,thegrowthinsalesofcommercialbrandshasencroachedupontotalsalesofSMObrands,
particularlyforthePantebrand.Pante,distributedbyPSI,remainsthedominantbrandintheDRbut
droppedfrom58.2%in2008to48.5%in2011totalmarketshare.Panterepresented62.6%ofthetotal
marketin2009.Despitea3.3%growthinsalesfor2010,marketshareforPantedroppedto56%oftotal
sharethatyear.In2011,thebrandsufferedaseverelossinsalesof17.6%asaresultofsignificant
stuttersinthedistributionchannels.Notwithstanding,theProtectorandEscudobrands,distributedby
theSMOProfamilia,actuallyhadanincreasefrom2.7%to3.7%between2008and2011intotalmarket
share.

Thephenomenalgrowthincommercialsalesrelevanttosociallymarketedbrandsisworthyof
observationandfurtherconsideration.BoththeDurexandTrojanbrandsofferawidevarietyof
productsincludingcontours,textures,flavoursandcolours,amongothers.TheyprovidequalityPOS
displaysandretailershaveconsistentlyreportedthatthepresentationsofthesebrandssetthemapart
fromtheothers13.Moreover,inthecaseofthesebrands,demandappearstodrivesupply.Consumers
areincreasinglyreceptive,tothepointofexpecting,avarietyofproductoptionsascondomuse
becomesmoreprevalentamongsexuallyactivepopulations.Stockoutsaremorelikelytooccurfor
DurexandTrojanasaresultofmisperceptionsofdemandratherthandistributionchannelissues
experiencedwhenstockoutsoccurforotherbrands14.

TheTeAmobrandrepresentsalowpricedalternativetoPante.WhereasPantehaspreviouslyreliedon
NGOsandindependentsalesgroupstopromoteproducttoretailersanddistributors,TeAmoenjoysa
morestreamlinedapproachtodistribution,buildingstrongrelationshipswithwholesalers/distributors.

TotalmarketshareincludescommercialbrandsaswellasbrandsmarketedbySMOsandfreecondomsdistributedby
governmentandsocialagencies.CommercialmarketsharediscountsSMOsharesandtheshareoffreecondoms
distribution.
10
TheDurexbrandwasformerlyownedbySSLInternational.InJuly2010,SSLagreedtosellthebrandtoReckittBenckiser.
TheacquisitionwascompletedinNovember2010.
11
ItremainsunclearthecompanythatmanufacturesTeAmo.ItisknownthatthebrandismanufacturedinChina.
12
Itshouldbenoted,again,thattheNYCbrandisintendedforfreedistributiontohighriskpopulationsinNewYorkCityand
isincreasinglysmuggledintotheDRandresoldillegally.
13
SMObrandstendtoofferfewerfeaturesthancommercialbrands.Inaddition,SMOPOSdisplays,whereavailable,generally
consistofsmallboxeswiththebrandlogoandareusuallynotprominentlydisplayed(rather,mostoftenbehindthecounter).
Commercialbrandsarefrequentlyreservedshelfspacefordisplays.
14
Retailersreportthatdistributorssupplytheirretailstoresonadefinedschedule(onceortwiceamonth,asarule,based
uponstoresize).Theforecastingshortcomingisgenerallyoftheretailerunderforecastingandnotorderingsufficientproduct
supplies.

Thebrandalsooffersadditionalvariety,primarilyinflavouredandtexturedcondoms.Demandforthe
TeAmobrandisdrivenbytheinfluxofsupplyandlowcost.

Condom awareness in the DR

Importantadvancesinawarenessamongyoungerpopulationshavebeenachievedasfreeand
subsidizedcondomsarepromotedheavilythroughGovernmentestablishedclinicsandvolunteers

Educationalprograms,designedtoaddressprotectionagainstunwantedpregnanciesandthe
preventionofSTIsintheDR,areincreasinglyeffectiveinpromotingcondomuse.Thelocusofrelated
disseminatedinformationresidesthroughcompoundedactivitiesofgovernmentsponsoredcampaigns
andtheinitiativesofSMOs.

DRgovernmentagencieshaveestablishedclinics,particularlyamonghighriskpopulations,toprovide
educationandguidancecounsellingaddressingreproductiveandsexualdiseaseconcerns.These
institutionsdistributeinformationandfreecondomstotheirconstituents.SMOsandNGOsengagein
socialmarketingactivitiesthroughabootsonthegroundapproach.Forexample,Prosolidaridad
coordinatesyouthgroups(composedofabalanceofmalesandfemalesages1424years)through
churchorganizations,fosteringthedevelopmentofyouthleaderstospreadthemessageofabstinence
first,followedbysafesexpracticesforthosealreadyengagedinsexualactivities.Theireducational
materialincludesa164pageillustratedbookentitledAprenderesVivir(LearningisLiving).This
organizationalsoworksthroughanetworkofvolunteersinnumerousbateys15eachyearproviding
guidanceandthedistributionoffreecondoms.

Otherorganizations,suchasCEPROSH,Mude,RedNacionaldeJovenesenSaludSexualyReproductiva
andMOSCTHA,engageinsocialmarketingactivitiesinschools,nightclubs,andwithyouthgroups,along
withpromotiontotheretailchannelthroughanetworkofvolunteers.Thematerialisspecificallyaimed
atyoungeragegroupswhoaresexuallyactive.

Resultingfromthesecombinedinitiatives,receptivitytocondommarketingandcondomusehas
advanced.Giventhefocusofthesecampaigns,condomusehasincreasedamongyoungerpopulations
foremost.Combinedwithanincreaseinformaleducation,theprogramsespousedbySMOsandNGOs
haveledtohigherratesofcondomuseamongstsexuallyactiveindividuals30yearsofageoryounger16.

Byridingonthecoattailsofgovernment,SMOandNGOactivities,commercialbrandshavebenefitted.
Whilethesebrandsprimarilypromotefeatures,theyalsoaddressthebenefitsofcondomusethrough
disclosuresrelatedtothereductioninunwantedpregnanciesandreducedriskofcontractingSTIs.
Accompanyingtheincreasedawarenessrelatedtocondomuseandsafesexualpractices,commercial
brandscapitalizeonthemessageofsafeandpleasurablesex.

15

Again,BateysarehistoricallysugarplantationcommunitieswithhighpopulationsofimpoverishedHaitianimmigrantsand
poorDominicans.Theyarereferredtovariouslyinthisreportasbateysandbateycommunities.
16
Totalincreasedsalesandcondomdistributionsuggestincreaseduseamongstthepopulationasawhole.Retailersreport
storevisitsfromyoungercustomershassignificantlyincreasedoverthepastthreeyears.

Condom influences
CulturalbarrierstocondomusehavereducedasthegovernmentandNGOscampaigntomakecondoms
culturallyacceptable.However,financialbarriersstillexistaspovertyandhighyouthunemployment
remainimportantissues.
ThereexistsgreatdisparitybetweenwealthandpovertyintheDR,where13.3%17ofthepopulationis
unemployedand34.4%18liveatorbelowthepovertyline.Thesituationisbleakerstillforyouth,ages15
to24yearsofage,where30.3%areunemployedoverall,and44.5%offemaleyouthareunemployed19.
ThesearehighriskpopulationsforSTIsandunwantedpregnancies.Maintainingmultiplesexpartnersis
culturallyacceptedintheDR.Intheserelationships,menareexpectedtoprovidefinanciallytotheir
lovers.ProstitutionisalsolegalintheDRandhighunemploymentcombinedwithfewavailable
opportunitiescontributestothedrawofenteringthesextrade.

TherearealsohighratesofCatholicisminthecountry,with95%ofthepopulationhavingtiestothe
CatholicChurch.This,instilsconservativeattitudestowardbirthcontrol,pregnanciesandcontraceptive
use.Theolderpopulation(40yearsandabove)ismorereligiouslyconservativeandslowertoadaptto
socialchange.Theyare,thus,lessreceptivetocondomuse.Youngerpeople,thosewithhigher
educationallevelsandhigherincomes,aremorelikelytobeawareofcondomuseandmorereceptive
tothepractice.

TherolesofSMOandNGOpracticescombinedwithgovernmentprogramscontinuetobeparamountto
increasingawarenessofcondomuse.Reachingouttovulnerablepopulationsandprovidingfreeand
subsidizedcondoms,hasimprovedattitudestowardcondomuseamongyoungerpopulationsandthe
poor.Accordingly,thesepopulationsarelikelytorelymoreheavilyonuseoffreecondomsorthe
purchaseoflowerpricedsubsidizedbrandsfromcolmados.Highandmidincomeconsumersaremore
likelytopurchasepremiumcommercialbrandsfrompharmaciesandcolmadosthatcarrythebrands.

Culturalbarrierstocondomacceptancearegraduallyerodinginlightofcontinuededucational
initiativesandexposure.Asthepopularityofcondomuseincreases,commercialbrandsareenhancing
marketingwhichcontributestofurthercondomexposureamongconsumers.

Channels
Retail overview
Colmados(neighborhoodstores)andpharmaciesarethemaindistributionchannelsforcondoms.Price
varianceincolmadosisveryhighwhereaspricestendtobemuchmoresimilarfromonepharmacyto
theother.

17

USCentralIntelligenceAgency,TheWorldFactbook,2011;https://www.cia.gov/library/publications/theworld
factbook/geos/dr.html
18
TheWorldBank,2010data;http://data.worldbank.org/country/dominicanrepublic
19
USCentralIntelligenceAgency,TheWorldFactbook,2011;https://www.cia.gov/library/publications/theworld
factbook/geos/dr.html

Channeloverview
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Colmados

Pharmacies Government Hotels,clubs, Socialagency Supermarkets

agency
etc
2008

2011

Others

Source: Euromonitor International

TheprimaryretailchannelsforthedistributionofcondomstoconsumersintheDRarecolmadosand
pharmacies,whichrepresent97.5%oftotalretaildistributionandnearlythreequartersofthetotal
condommarket.Colmadosprimarilyserveconsumersfromlocalneighborhoodsandcondompricing
varieswidelyfromstoretostoreforthesamebrands.Forexample,auditdatarevealsthatPante
condomsrangeinpricefromUS$0.10toUS$0.19perunit,whileTeAmorangesinpricefromUS$0.21to
US$0.43perunit.ThesamevariancesinpricesareseenforsmallerbrandslikeAmoreMioandSexxy
wherepricesrangefromUS$0.23toUS$0.77andUS$0.21toUS$0.61perunit,respectively.

Colmadocondompricingdoesnotappeartoberelatedtocompetitionamongothercolmadosor
pharmacies,butratherontheprofitmargindesiredbythecolmadoownerandhisknowledgeoflocal
consumers.Colmadomarketingofcondomsisalsomorediscretethanthatofpharmacies.Condom
displaysarelessprominentthaninpharmaciesanddonotreachtheelaboratedisplaypresentations
foundinmanypharmacies.Inpharmacies,thesemightincludelargeandcolourfulcounterorshelfkits
displayingthevariousproductsofthebrand.

Amongpharmacies,pricesaremuchmorestableandconsistent,especiallyforthemajorbrands.Price
variationsforlikebrandsfromstoretostorearegenerallyonlyafewcentsperunit.Thenotable
exceptionsoccurfortheEscudoandProtectorbrandswherepricesrangefromUS$0.13toUS$0.56per
unitfortheformerandUS$0.26toUS$0.64forthelatter.Theoverallstabilityinpricingappearstobea
resultofmoreintensecompetitionbetweenpharmaciesandtheincreasedmarketingexposureof
condomsintheseoutlets.

Freecondomsaremainlydistributedthroughclinicsandanetworkofvolunteersandactivists.Onthe
otherhand,commercialandsubsidizedcondomstakearoutetomarketwherewholesalersand
distributersareusuallyinvolved

10

Condomdistributiontoconsumersvariesdependingofthedistributionchannel.Forexample,theDR
governmentreceivesdonatedcondoms,primarilyfromUNFPA(theUnitedNationsPopulationFund)
butalsoUSAID(UnitedStatesAgencyforInternationalDevelopment),forfreedistribution.The
condomsaredistributedbygovernmentagencies,includingCOPRESIDA(thePresidentialCouncilon
AIDS)andSESPAS(theSecretaryofPublicHealth).Theseagenciesdistributethedonatedcondomsto
healthclinicsandhighriskpopulationsthroughoutthecountryemployinganetworkofNGOs,notfor
profitorganizationsandcommunityvolunteers/activists.

SubsidizedcondomsareprovidedtoPSIthroughtheCaribbeanSocialMarketingProject(CARISMA).The
pathtotheconsumerhashistoricallytakenamorecircuitousroute,withdistributionthroughNGOsand
contractsalesorganizationssellingproducttowholesalersandhotels/motels(inadditiontobarsand
brothels).Wholesalersthenfiltersalestotheretailoutletstypicallyreachingconsumersviapharmacies
orcolmados.SMOsalsosponsorsocialmarketingeventstoincreasecondomawarenessandreachhigh
riskpopulations.

Commercialbrandshaveenjoyedamoredirectmarketinganddistributionapproach.Thesebrandsare
importedandsolddirectlytodistributors/wholesalers.Theysupplymarketingmaterialsupplements,
includingPOSdisplayswhichareprovidedtomanyretailoutletsbythedistributors/wholesalersthat
purchasetheirproducts.

Importtaxesandtariffsdonotplayasignificantroleformarketplayersasapotentialreasonforaprice
increase
Neitherimporttaxesnortariffsaremajorconcernamongdistributors/wholesalers,SMOs,NGOs,or
retailers.Whiletherehasbeenagradualpriceincreaseforcommercialandsocialcondoms,the
increasesareattributedmoretogrowingtransportationcostsandthecostsofrawmaterials.
Transportationcostshaveincreasedasfuelpriceshaveskyrocketed.Thecostofrawmaterialsto
producelatexhasalsoincreased.Someofthisrawmaterialcostisrelatedtotransportingthelatexto
manufacturingplants.Thus,priceincreasesforcondomsaresignificantlytiedtotheescalatingpriceof
oilinternationally.

Pricesareexpectedtocontinuerisingbetween10%and15%overthe2012to2014forecastperiod.This
factcouldprovetobeadetrimenttofuturecondomssales,dependingondomesticeconomic
conditionsintheDRduringthisperiod.Thereexistsaconcernamongmanyindustryleadersthata
significantdevaluationoftheDominicanpeso,resultingfromtheoutcomeoftheupcomingMay2012
presidentialelectionintheDR,couldhaveanegativeimpactonthesalesofnonessentialproducts,
whichcouldincludecondoms.Intheeventsuchdevaluationoccurs,theimportanceoffreecondoms
andSMOdistributionsbecomescorrespondinglymoreimportant.

Importtaxesrelevanttocondomshavenotbeenreportedasanissuebyindustryleadersorretailers.
ThereareconcernsamongsourcesthattheoutcomeoftheupcomingMay2012presidentialelectionin
theDR,regardlessofwhocomestopower,mightdisrupteconomicconditionscausingadevaluationof
theDominicanpeso.Thiscouldputpressureonthegovernmenttoincreaseimporttaxes,includingfor
condomproducts,whichwouldhaveanegativeeffectonpricesandpotentiallyforsales.

11

Commercial condoms
Commercial condom overview
ThetopthreecommercialbrandsareDurex,TeAmo,andTrojan,whotogethercapture69%ofthe
commercialbrandsales.
ThepopularityofcommercialcondomsbrandsintheDRhasgrownsignificantlysince2008.By2011,
commercialbrandsrepresented22.7%ofthetotalcondommarket,accountingfor5.6millionunitsin
sales.ThethreeleadingcommercialbrandsareDurex,TeAmoandTrojan,respectively,which
collectivelycapture68.9%oftotalcommercialbrandsales.

DurexandTrojancompeteheadonforthehighendmarketandarethemostexpensivebrands.Both
brandsofferawidevarietyofproductofferingsandhaveenhancedtheirmarketingcampaignsby
providinghighqualityPOSdisplays,storeshelfplacementandpackaging.

TeAmotargetslowerincomeconsumersandcontinuestogrowsales.Thebrandismanufacturedin
ChinaandevidentlydistributedthroughPanamatotheDR.TheTeAmobrandhasstrongsupport
throughwholesalersinreachingretailers.In2008,theTeAmobrandcaptured3.3%ofthetotalmarket
(whichincludescommercialandSMOsales,alongwithfreecondomdistribution).In2011,TeAmosales
accountedfor5.4%ofthetotalcondommarket.

ThefastestgrowingbrandappearstobeTrojan.Trojancaptured7.5%ofcommercialbrandsalesand
0.8%ofthetotalmarketin2008.Saleshaveincreasedsincetoreachroughly671,000unitsin2011,
accountingfor11.9%ofcommercialsalesand2.7%ofthetotalmarket.Thisgrowthislargelyattributed
toaggressivemarketinginthecountryandincreasedpreferencesforhighendcondomproductsthat
offergreatervarietyandperceivedquality.

Commercialbrandshavefairlysimpledistributionroutes.Condomsareimportedbydistributor,who
sellstowholesaler,whointurnsellstopharmacies

CommercialbrandsentertheDRmarketandreachconsumersinamorestreamlinedmannerthantheir
SMOandGovernmentcounterpartchannels.Commercialbrandsareimportedthroughdistributorsthat
selltowholesalers(anddirectlytoselectpharmacies).Thewholesalerspushthebrandsdownintothe
retailchannel.

Providingancillarymarketingsupportmaterialtowholesalersbecomespartofthecommercialbrand
strategy,particularlyamongthehigherendbrands,toenticewholesalerstomovetheirproductsand
attractconsumerloyalty.Thesmallerbrandspromotetheirproductsprimarilythroughpricingstrategies
andsmallerdisplays.BothDurexandTrojanareveryactiveinprovidingPOSdisplayspromotingthe
varietiesoftheirproducts.

Leading Brand Profile: Durex

Durexistheleadingcommercialbrandandenjoysastrongreputationamongconsumers
12

DurexistheleadingcommercialbrandintheDR.Thebrandenjoysasolidreputationforproviding
qualityproductsthroughoutitsestablishedpresenceinthecountry.Durexisalsorecognizedasan
innovatorincondomtechnology,introducingnewandvariedproductsforadditionalstimulation,
enjoymentandprolongedsexualactivity.

TheDurexbrandhasalsobeenaleaderintheoverallexpansionofcommercialsalesbetween2008and
2011.Althoughthebrandsshareofthecommercialbrandmarketdroppedfrom36%to33.1%during
thisperiod,thebrandincreasedtotalsalesfrom750,000unitsto1.9millionunitsin2011growingfrom
3.8%to7.5%ofthetotalmarket.

ContributingtothisexplosioninsalesisincreasedinterestbyReckittBenckiser(owneroftheDurex
brand)intheDRmarket,theintroductionofnewandvariedproducts,andgreatermarketingemphasis.
Itisalsoworthnotingthat,despitetherelativepovertyofthenation,thereisagrowingmiddleclass
becomingmoresophisticatedintheirpurchasingbehaviours.Thishasincreaseddemandforhigherend
products.

DurexisatoptiercondombrandandPOSdisplaysareanimportantcomponenttoitsmarketing
strategy
Durexremainsamongthetoptierincondomprices.Dependingontheactualproduct,pricesrange
fromUS$0.77toUS$1.20(PerformaxappearstobethemostexpensiveDurexbrandandNatural
Feelingtheleastexpensive).Thereislittlepricingvariancebetweenretailoutlets,butcolmados
showedthehighestpriceatUS$1.20asopposedtopharmacieswherethehighestpricewasUS$1.03.

PromotionstypicallyincludePOSdisplays,withlimitedexternaladvertising(billboards,storeflyers).
ExpectDurextointroduceanewbrandcategory,NewFeelingCondoms,overthe2012to2014
forecastperiod.ThisnewbrandcategorywillincludeNewFeelingDeluxe,RealFeelandFetherlite
Ultrasubbrands20.Beyondtheseadditions,nochangeinpromotionalstrategyisanticipatedforthe
2012to2014forecastperiod.

DurexemploysasimpledistributionmodeltosupplytheDRmarket
TheDurexbrandisdirectlyimportedthroughdistributorstowholesalersintheDR.Wholesalers
distributethecondomstothecolmadosandpharmacieswhichrepresenttheprimaryretailchannelsfor
condomsales.Insomecases,pharmaceuticaldistributorsselldirectlytolargepharmacies.

Leading Brand Profile: Te Amo

Commercialproductfeaturesatlowprices
TheTeAmobrandhasfloodedtheDRcondommarket,particularlythecolmadoretailchannel,targeting
lowtomidincomeconsumers.Theownerofthebrandisunknownanditsentranceintothecountrys
marketisobscure(althoughmanufacturedinChina,evidentlythebrandisbeingimportedthrough
Panama).ThebrandhasanestablishedpresenceintheDR,showingpositivesalesnumberssinceat
least2008.

20

http://www.durex.com/enGB/Products/NEWFeelingCondoms/Pages/NEWFeelingCondoms.aspx

13

Shareofthecommercialmarketgrewfrom17%to23%between2009and2011,TeAmosalesreached
1.4millionunitsin2011accountingfor5.4%ofthetotalcondommarketintheDR.

GrowthoftheTeAmobrandhasbeenreliantonrelationshipsestablishedwithwholesalersandsupply
drivingdemand.Thebrandisparticularlyattractivetocolmadoretailerssinceitisalowercostbrand
thatappealstothedemographicsofcolmadocustomers.Additionally,thebrandoffersalternative
choices,includingflavouredandtextured(Dots)condoms,whichappealtoconsumerdemandformore
varieties.

ThegrowthofTeAmohasnotgoneunnoticedbythegovernmentandvariousNGOswhocitequality
concernswiththebrand.Forexample,TeAmodoesnotshowqualityassurancetestingatthepointof
manufacture,itspackagingdoesnotmeetISO/WHOguidelines,andfocusgroupsindicatethatbreakage
isanissue.Theseconcernscouldplayamajorroleinthefuturedistributionofthisbrandshouldthe
governmentchosetointerveneaftercloserinspectionoftheseissues.

LowpricesarethemainsellingpointforTeAmo

TeAmoisalowpricedbrandandstructuresitsmarketstrategiesaccording.Thebranddoesprovidelow
budgetdecanterdisplaysthatemployamixofcoloursandgraphics.Captureofmarketshareandsales
gainsarepredicatedprimarilyonlowpricingofthebrand.Althoughpricingfluctuatesamongretail
outletsmorewiththisbrandthanwithhighendbrands,pricestypicallyrangefromUS$0.26toUS$0.43
perunit.ItisexpectedtheTeAmobrandwillcontinueitstacticsofinundatingthemarketthrough
relationshipswithwholesalersandbyofferinglowcostproducts.

TeAmofocusesitsdistributingeffortsoncolmados(neighborhoodstores)

TheTeAmobrand,althoughsoldinsomepharmacies,primarilytargetsthecolmadoretailchannel.The
brandprovidesalowcostalternativetothehigherendbrandslikeDurexandTrojantowholesalers,
increasingthecapabilityofthewholesalerstodrivesalesthroughthecolmadochannel.
Leading Brand Profile: Trojan
Positiveresultsafterincreasedmarketinginitiatives
TheTrojanbrand,likeDurex,iswellestablishedgloballyandhasamaturepresenceintheDR.Although
thebrandsforayintotheDominicanmarketthrough2008appearedtobedownplayed,asifthebrand
wereexploringthemarketplace,Trojanhassignificantlyincreasedmarketinginitiativesandits
correspondingimpactontheDRcondommarketsince21.

EmployingasimilarmarketingstrategyasDurex,TrojanutilizessophisticatedPOSdisplays.Daniel
EspinalCPorA,aprivatewholesalerthatsellsavarietyofpharmaceuticalsintheDR,suppliesthe
nationalpharmacychainFarmaxwithTrojancondoms(amongotherproducts).Theyhavebeen
successfulinpushingtheDurexbrandoutofmanyFarmaxstores,takingsalesawayfromthe
wholesalerslargestcompetitorKettle&Sanchez.Thiscertainlyhascontributedtothegrowthinmarket
shareexperiencedbytheTrojanbrand.

TrojancompeteswithDurexonqualityandfeaturesinthehighendmarket

21

TheTrojanbrandhasfocusedonsalesthroughpharmaciesandmorerecentlyconveniencestores.Thebrandisexpectedto
expanditspresenceincolmadoretailers,wherecompetitorDurexhasbeenwellpositioned.

14

TrojanisahighpricedbrandcompetingdirectlywiththeDurexbrand.Primarilymarketedto
pharmacies(andconveniencestores),thebrandrangesinunitpricefromUS$0.62toUS$0.82formost
oftheproductvarietiesanduptoUS$1.25perunitfortheTrojanMagnumbrand.Pricevariations
betweenretailersareminimal.ThebrandispromotedtopharmaciesthroughwholesalersandPOS
displays.AlthoughDurexremainshighlypopular,Trojanhaseffectivelycapturedshareawayfromthat
brandthroughthedevelopmentofstrongrelationshipswithwholesalers,likeDanielEspinalCPorA.

Distributioneffortsareplacedonpharmacies,butthebrandisexpectedtofollowDurexintothe
colmadochannel
TheTrojanbrandwillcontinuetobeimporteddirectlytokeydistributors,fromwhereitissoldto
wholesalers,andislikelytomaintainitscompetitivepressureagainstDurex.Whilefocusonretail
distributionwillremainonthepharmacychannel,theTrojanbrandisexpectedtoenterthecolmado
retailchanneloverthe2012to2014forecastperiod.ThegrowingsuccessofDurexinthecolmadoretail
channelenticestheTrojanbrandtoexpanditsmarketingscope.

Social marketing condom sales

Thetop5governmentandSMOsinvolvedindistributionofcondomsareCOPRESIDA,SESPAS,PSI,
ProfamiliaandCEPROSH,withPSIleadingsubsidizedcondomdistributionandCEPROSHleadingfree
condomdistribution
GovernmentagenciesandSMOshavebeeninstrumentalinincreasingawarenessofcondomuseinthe
preventionofunwantedpregnanciesalongwithprotectionagainstHIV/AIDSandotherSTIs.These
organizationsreceivedonatedandsubsidizedcondomsthroughinternationalprograms.Combined,they
areresponsiblefordistributingfreecondomstohighriskpopulationsintheDRandsupplying
hotels/motelswithlowcostcondomsandsellinglowcostsubsidizedcondomstotheretailchannels.

ThelargestgovernmentagenciesandSMOsassociatedwiththedistributionofcondomsinthecountry
areCOPRESIDA,SESPAS,PSI,ProfamiliaandCEPROSH(CenterforthePromotionofHumanSolidarity).
TheseorganizationsreceivefundingthroughUSAIDandtheGlobalFund.Donatedcondomsare
distributeddirectlythroughSESPAStogovernmentclinicsandhealthcentres.CEPROSHdistributes
donatedcondomsthroughIEC(Information/Education/Communication)activitiesfacilitatedbyNGOs
contractedfortheassignments.Thisdistributionpathincludesgovernmenthealthclinics,healthcentres
andprogramsdesignedtoreachhighriskpopulations,includingsexworkersandindividualslivingin
bateys,amongothers.

SMOsalsocoordinateactivitiesthroughcontractsnegotiatedwithNGOs,whichdistributecondoms
throughwholesalers(destinedprimarilyforretailchannels)orpromotionalgroupsandnotforprofit
organizationsdistributingcondomstohotels/motelsorthroughsocialmarketingprograms22.NGOs
mightreceivecondomsforfreedistributionorsubsidizedcondomstoselltotheretailandhotel/motel
channels.

22

ThedistinctionbetweensocialmarketingprogramsandSocialMarketingOrganizations(SMOs)shouldbenotedand
brieflyclarified.Socialmarketingprogramsoftenentailcoordinatingtheactivitiesofvolunteers,communityandyouth
groups,ormessengersofhealth.Thevariousgroups,includingSMOs,NGO,churchgroupsandgovernmentprograms,
workwithanddistributecondomstobrothels(byvolunteerswhoareoftenthemselvesassociatedwiththesexindustry),
barsandnightclubs,vulnerableyoungpeopleandotherhighriskpopulationssuchasindividualslivinginbateys.Social
programsgenerallyinvolvethedistributionoffreecondomsand/oreducationalmaterial.SMOsemploycommercial
marketingmethodologiestosellsubsidizedcondomsthroughcontractedsalesgroups.

15

IntermsofthedistributionoffreecondomsCEPROSHappearstobethemostactive.CEPROSHofficials
reportthedistributionof4.2millioncondoms(units)in2011.Theofficialsexpectfreedistributionto
increaseroughly30%in2012,followedbyaconsistentdeclinereachingadropof19%by2014.

PSIremainsthelargestSMO,despiteasignificantdeclinein2011wheretotaldistributionwas12million
units.In2011,PSIdistributionrepresented92.7%ofallfreeandsociallymarketedcondomsfortheyear.

COPRESIDA(thePresidentialCouncilonAIDS):www.copresida.gob.do
Focusesitseffortsonreachingthelowersocioeconomicsegmentsofsocietyandhighriskpopulations
COPRESIDAwasestablishedin2001toprovideaunifiedfronttowardthereductionofHIV/AIDSinthe
DR.ThecounciliscomprisedofseveralgovernmentagenciesandparticipatingNGOs.COPRESIDAis
supportedthroughinternationalfundingfilteredthroughtheInstituteofDermatologyandSkinSurgery
(IDCP).TheorganizationistheprincipalrecipientofthegrantfundsfromtheGlobalFundforHIV
preventionthroughtheprojectStrengtheningResponsetoHIVEpidemicintheDominicanRepublic
(20092015)',RCCIHIVAIDS.(DONATIONDMR202G04H00)23

COPRESIDAdistributescondomstothelower,poorandextremelypoorclassstratathroughNGO
projects.ParticipatingNGOsdistributefreecondomsinconjunctionwithprovidingeducationaland
awarenessprogramsconcerningsexualbehaviours,theriskofdiseaseandthepreventionofunwanted
pregnancies,amongotherissues.Targetpopulationsincludeyouthgroups,sexworkers,bateysand
otherhighriskpopulations.COPRESIDAservesasthedistributionchanneltotheseentitiesandmonitors
activitiesinaccordancetostandardsestablishedbytheIDCP.

ItseffortsareseenaslargelysuccessfulandhaveprovidedaddeddemandforcondomsintheDR

TheeducationalprogramssupportedbyCOPRESIDAhavebeenhighlyeffective,witnessedfirstbya
reductionintheincidencerateforHIV/AIDSsince2001andtheincreasedpopularityofcondomusein
theDR.Theincreasedawarenessthroughtheseeducationalprogramshasbolsteredcondomdemand
providinganimpetusforthegrowthincommercialsales,whichinturnreinforcesdemandandincreases
overallawareness.

CondomdistributionforCOPRESIDAislargelyreliantonsufficientfundingandsupplyofproductalong
withcooperationfromNGOs.OnFeb15,2012,COPRESIDAreceivedanadditionalinfusionfromthe
GlobalFundtocontinuetheirinitiatives24.

Upcomingelectionscoulddisruptthesuccessofitsinitiatives
CurrentinitiativesareinplacetosupportthevariousoutreachprogramsespousedbyNGOs.
Expectationsofa30%increaseincondomsdistributionfor2012havebeenexpressed.Asourcecloseto
theorganizationnotedthatthisprojectioncouldbedisrupted.Inlightoftheupcomingpresidential
election,activities,commitmentsandcontractualarrangementsfromotheragencieswiththeIDCP
(whichfiltersfundstoCOPRESIDA),couldaffectfundingandtheavailabilityofsupplies.Fundshave

23

SeniorProjectManageratleadingSMO

24

http://portfolio.theglobalfund.org/en/Grant/Index/DMR202G04H00

16

alreadybeendisbursedbytheGlobalFundtoIDCP,butbureaucraticinertiaresultingfromcompeting
prioritiescouldverywelldiminishactualdistributionresults.

PSI(PopulationServicesInternational):www.psi.org
ResponsiblefordistributingPante,themostpopularcondombrandintheDR

PSIisaglobalnonprofitorganizationdedicatedtoimprovingthehealthofpeopleindeveloping
countriesbyprovidingprogramsandservicestoimprovefamilyplanningandreducetheincidence
levelsofHIV/AIDSandotherSTIs,amongotherconcerns.PSIdistributesthePantebrandcondominthe
DR,subsidizedthroughinternationalorganizations,likeUSAID,PANCAPandUNFPA,toretailoutletsand
thehotel/motelchannel(throughNGOsandpromoters).

PSI,withthelowcostPantebrand,targetsmidtolowincomeconsumers.Theproductisprimarilysold
inthecolmadoretailchannelandtoasmallerdegreeinpharmaciesthroughoutthecountry.Through
2011,PSIemployedadistributionstrategyfortheretailchannelpredicatedonNGOsthroughdirect
salestoretailoutletsandnegotiatedsaleswithwholesalerssupplyingtheretailoutlets.

Addressingthehotel/motelmarketforcondomsintheDR,sinceDecember31,1993,thelawrequires
cabaaestablishmentstosupplytwocondomsineachroomatnochargetothepatrons.25.Acabaais
adiscreetdriveinmotel,generallylocatedontheoutskirtsofacityortown,whereroomsarerented
forfourorsixhourvisits.Thesemotelsarefrequentlyusedforsurreptitiousrendezvoustoengagein
sexualactivity.ProductsoldbyPSItoNGOsforthismarketisdistributedthroughpromotionalsales
groups.80%ofPSIsalesarebygranel(piece)andareprimarilydistributedthroughhotels/motels.

Salesofitsbrand,Pante,hasbeendamagedbydistributiondisruptionsandthegrowingsuccessoflow
costcommercialbrand,TeAmo

PSIsalesofPantecondomssufferedasignificantdropin2011,resultingprimarilyfromconflictswithin
thedistributionchannels.IthasbeensuggestedthatmotivationamongparticipatingNGOshasbeenlow
andtherehasoccurredterritorialdisputesamongthemovercondomsdistribution.Inaddition,thelevel
ofNGOmarketingknowledgeandcapacityhasbeencalledintoquestion.

Tobesure,marketsharecapturedbyTeAmoandotherlowcostbrandsnegativelyaffectedPantesales
aswellasexploitedPantesreducedpresenceincalmadosNotwithstanding,thePantebrandremains
highlypopularamongconsumersandretailers.

PSIisfocusingeffortsonstreamliningitsdistributionmodel

Beginningin2012,PSIisrestructuringitsdistributionstructuretoretailersofPantecondoms.Thehope
istostreamlinethedistributionprocesstoincreasespeedtomarket.Planscallfordirectmarketingto
wholesalersandlargepharmaceuticalcompaniesthroughrelationshipbuildingandincentives.These
companieswillpromoteandsellthePantebrandtocolmadosandpharmacies.

25

LawNo.5593;ChapterII,Article16;http://cyber.law.harvard.edu/population/aids/dominican.htm.Cabaaoperatorsare
requiredtopurchasethesecondomsfortheuseoftheircustomers.

17

PSIisalsorestructuringdistributionterritoriestoestablishcontiguousmarketingareasforthe
distributingorganizations.TheproposedpriceincreaseforPantecondoms,alongwithadjustmentsto
thenewterritorialboundaries,isexpectedtocauseslightdisruptionsindistributionduringthefirstpart
of2012.Bulkdistributiontohotels/motelswillcontinuetobefacilitatedbyNGOs.

Profamilia:www.profamilia.org.do
Distributessubsidizedcondomstoretailchannelsandfreecondomstoclinicsandservicecentres

ProfamiliaisanSMOthatworkstowardthepreventionofunwantedpregnancies,HIV/Aidandother
STIsthrougheducation,advocacyandthepromotionofcondomuse.Theorganizationsellscondomsto
pharmaciesandhotel/motelsthroughtraditionaldistributionchannels,includingwholesalers,andto
colmados,salons,hairdressersandothersthroughanetworkofpromotionalvendorsengagedinface
tofacesales.Profamiliaalsosuppliesfreecondomtoclinicsandservicecentres(NGOs).

TwobrandspromotedbyProfamiliaincludeProtectorandEscudothattargetmiddleandlowincome
consumers.Basedonretailauditdata,Profamiliaplacesgreateremphasisonretailsalesthrough
pharmaciesthancolmados.Thismightsimplybearesultofmoreefficientdistributionthrough
wholesalers(thatdistributeProfamiliabrandstopharmacies)thanthepromotionalvendorssellingto
colmados.

Distributionstrategyrevolvesaroundamixtureofcommercialmarketingstrategies,likePOSproduct
placement,andoutreachinitiatives
ProfamiliaemphasizesPOSproductplacement.Theorganizationrecognizesthatincreasedcompetition
throughtheintroductionofnewbrandsalongwithbrandsofferingmultipleproductoptionsplaces
competitivepressureontheirsalespenetration.

Profamiliareportstherehasbeenanincreaseineducationalprogramsandgrowthincondoms
awareness.Brandinginsocialactivitieshascontributedtothegrowthinawareness.Theoutreach
initiativeshavebeeneffective,butcontinuedreinforcementisrequiredparticularlyamongyouth.

Newand/ormodifiedprogramstoincreaseeffectivenessinreducingteenagepregnancyandnewcases
ofHIV/AIDSareexpected

Profamiliasuggeststheywillmodifyand/orintroducenewsocialprogramsaimedatteenagepregnancy
andthestillrelativelyhighincidenceofHIV/AIDSintheDR.Theseprogramsarealso,reportedly,
designedtohelpeasedonortensionsovertheeffectivenessoftheeducationalandoutreachprograms.
Donorcontributionsaresubjectedtodifferentscrutinycriteriathancommerciallydistributedcondoms.
Theneedforenhancedreportingcapabilitiestodemonstrateprogrameffectivenesshelptoensure
donorcontributionsremainstable,atminimum.Commercially,theorganizationwillcontinuetosellto
theretailchannelsthroughwholesalersandpromoters,andpromotecondomsbrandingatsocial
events.

CEPROSH(CenterforthePromotionofHumanSolidarity):www.ceprosh.org
Freeandsubsidizedcondomdistribution

CEPROSHdevelopsprogramsandeducationalprojectstopromotethepreventionandsurveillanceof
HIV/AIDSandotherSTIS.TheydistributesubsidizedcondomspurchasedfromPSIanddonatedcondoms
18

fromgovernmentagencies.Donatedcondomstargetthepoorandsexworkers.Theyaredistributed
throughsocialandcommunityprogramsinlowincomeareasandamongsexworkers.Toreachthe
populationofsexworkers,itisoftenindividualsworkinginthesextradethatdistributecondomsto
theirpeersexworkers.Lecturesarealsopresentedatschoolsdesignedtoreachouttoyouth.The
commercialcondoms(Pante)aresoldtohotels/motelsandtowholesalersfordistributionintotheretail
channel.

Theyreportpricingasanimportantfactorincondomdistribution

OfficialsatCEPROSHobservepricingasadrivingfactorincondomdistribution,particularlyinthe
commercialmarket.Theyholdthataspricesincrease,commercialsalescanbenegativelyimpactedfor
middleandlowincomeconsumertargets.CEPROSHalsocitestheincreaseingray/blackmarket
condoms,particularlyincertainareaslikeValverdeMaowheremotelownersarebeingsoldsmuggled
condoms.

Theorganizationbelievestheeducationalprogramshavebeenextremelyeffectiveatheightening
awarenessamonghighriskandyouthpopulations.Theseinitiativeshavereportedlyadvancedwiththe
increasedefficiencyofgovernmentagencyinvolvement.

Planningforanexpansionintocolmadosandfurtherdevelopingoutreachprograms

CEPROSHexpressesplansfordirectdistributiontosmallbusiness(colmados)inanefforttooffsetthe
commerciallossinsalesfor2011andtheexpecteddropfor2012.Theorganizationalsoplanstofurther
developandexpandsocialprogramstosupplementcommunityoutreachandthedistributionof
donatedcondoms.

SESPAS(theSecretaryofPublicHealth):www.salud.gob.do

SEPSAScoordinatestheactivitiesofnumeroussubsecretariatsandsupportunitsforavarietyof
healthconcernsintheDR,monitoringregistrationsandactivitiesofmultipleconstituents.SESPASserves
asanintegralinfluenceinsecuringinternationalaid,includingfordonatedcondoms.Supportingthe
initiativesofCOPRESIDA,SESPASalsodistributesfreecondomsthroughitssupportunitstogovernment
clinicsandhealthcentres,inadditiontoprovidingsupportforsocialprograms.

SecuringfundingisaparamountactivityforSESPAS

Clearly,thereceiptoffundingforsupportagencies,liketheIDCP,isparamounttothesuccessofSESPAS
activities.Theorganizationhasbeensuccessfulinincreasingcommunicationsefficienciesalongwith
enhancingprogrammonitoringandevaluationsystems.FeedbackfromSMOsandNGOssuggeststhe
improvementshavebeenwellreceived,productiveandeffective.

Free and generic condoms

Overview
InternationalfundingisthelifebloodoffreecondomsuppliesintheDR

19

DonatedcondomsintheDRarefundedbyinternationalorganizationssuchasUSAID,theGlobalFund
andUNFPA.ImportsofcondomproductsaresubjecttoinspectionsandregulationsbytheDRCustoms
Service.Sourcesclosetothedistributionchannelsoffree,nologocondomssuggestthatoccasionally
condomsupplydisbursementsbecomeentangledincustomsinspectionsdelayingdistributiontothe
organizationsmandatedtoprovidetheseproductstoconsumers.

Governmentagencies,specificallySESPASandCOPRESIDA,overseethedistributionofcondomsto
SMOs/NGOsandtheirvariousdistributionprograms.Consumersgainaccesstothesecondomsthrough
governmentclinics,healthcarecentresandthroughNGOandSMOsocialprograms.

Awidenetworkoforganizationsdistributefreecondomsthroughavarietyofchannels

Free,nologocondomsaredistributedwithgovernmentsupportthroughnumerousorganizations
implementingavarietyofprogramstotargethighriskpopulations.Amongtheorganizations
responsibleforfreecondomdistributionintheDRincludeCEPROSH,MUDE,MOSCTHA,Prosolidaridad,
COINandRedNacionaldeJovenesenSaludSexualyReproductiva.Theseorganizationsadminister
programstargetinghighriskpopulationsincludingsexworkers,bateycommunities,andyouthgroups,
alongwithdistributiontoclinicsandhealthcentres,barsandnightclubsandthroughcommunityevents.

Forexample,CEPROSH,RedNacionalandProsolidaridadreachouttoprovideeducationandsupportto
youthgroups.Prosolidaridadorganizesteamsofyouthvolunteers,oftenaffiliatedwithreligious
organizations,todevelopyouthleaderswhowillspreadthemessagesoftheorganizationtotheirpeers.
Prosolidaridad,alongwithMOSCTHA,alsoworkstoeducatepopulationslivinginbateysanddistributing
freecondoms.CEPROSHandCOINtargetsexworkersthroughmessengersofhealthtopromote
educationconcerningSTIsandcondomuse.

Intermsofthedistributionoffree/nologocondoms,MUDEandProsolidaridadidentifytheIDCPas
theirfundingsource.RedNacionalreportsfundingfromUSAIDandMOSCTHAindicatesitsfundingis
derivedfromtheGlobalFund.

Overdistributionandconcentrationoffreecondomsseemstocauseleakageoffreecondomsintothe
retailmarket.Anotherconcernisthesmugglingandrepackingoffreecondoms

TheissueofillegallysoldcondomsintheDRisofgrowingconcern.Whilesomeoftheseillegalcondoms
arearesultofleakageintothecommercialmarketfromdonatedcondomsdistributedfree,thisleakage
isoflesserconcernthanthoseproductsbeingsmuggledintothecountry.

Thereareincidentsoffreecondomsbeingrepackagedincheapboxesandresoldtocolmadoretailers.
Whenaninfluxofdonatedcondomsarrivesinthecountry,governmentagenciesandtheirproxiesare
occasionallyunderimmensepressuretodistributetheproductsquickly.Thiscanresultinover
distributionincertainareaswherethecondomsarethencollected,repackedandsoldintotheprivate
market.

Smuggledcondomsarereportedlyagreaterconcern.Onebrand,NYCcondomsmanufacturedbyAnsell,
isdistributedfreeinNewYorkCitytohighriskpopulations.ThisbrandisbeingsmuggledintotheDR
andhasbeenseeninbothcolmadosandpharmacies(soldlooseinsingleunits).Onthecondom
wrapperitisclearlylabeledNotForResale.Ithasbeensuggestedinfieldinterviewswithcolmados

20

thatotherbrandsaresmuggledintothecountry,includingTrustex(packagedinaboxof3condomssold
forUS$2.58,orUS$0.71perunit).

Smuggledandillegallyrepackagedfreecondomsarealsobeingsoldtothehotels/motels.Leakageof
freecondomsandsmuggledcondomsappeartohaveminimalimpactonthetotalcondommarket.
Industryleadershavecalledforgreaterregulationandcontrolofmarketdistributiontocombatillegal
andrepackagedcondomssales.

Government

Overview
GovernmentagenciesSESPASandCORPRESIDAareimportantplayersincondomdistributionintheDR

GovernmentagenciesintheDRarebecomingincreasinglymoreefficientincoordinatingthenational
responsetoHIV/AIDS.ThedistributiontoSMOsandNGOsofdonatedcondomshassignificantly
improvedoverthepastfewyears,enhancingthecapabilitiesoftheseorganizationstoreachhighrisk
populations.

Governmentagencies,SESPASandCORPRESIDA,establishpolicies,standardsandregulationsaspartof
thenationalresponsetoHIV/AIDSintheDR.SESPASisresponsibleforqualitymonitoringofproduct
duringstorageanddistribution.COPRESIDAisthemainrecipientofinternationalfundingtosupport
governmentandsocialmarketingprograms.

TheseagenciesalsoenactregulationsthatdefinedistributionparametersforSMOsandNGOs,in
additiontocommercialregulations.Furthertheyestablishregulatorypolicyandsince2010have
implementedtheUniqueSystemofMonitoringandEvaluation(SUME)26.SUMEenablesvarious
agenciesandorganizationstosynchronizetheirdatafindings,reducingthepossibilityfordataoverlaps
andsignificantlyenhancescapabilitiesforentitiestomanageindicatorsoftheNationalResponsefor
STI/HIV/AIDS.

Notwithstandingthetremendousgainsmadebythegovernmentandthevigourexemplifiedby
governmentagencies,industrysourcesreportthatthesocialandcommercialguidelinesarenotalways
enforced.Thereremainsgrowingconcernoverdistributionmonitoring,thesaleofillegalcondomsand
theneedforanincreaseinpreventionprograms.

Forecast

Overview
Condomusageisexpectedtocontinueclimbingasthepopulationbecomesmorefamiliarand
dependentontheseproducts.Onthesupplyside,freecondomsareexpectedtoincreaseinvolumein
2012,SMOsubsidizedbrandedcondomsareexpectedtoreboundandtopcommercialbrandswill
continuetodominatethemarket

26

https://www.2011caribbeanhivconference.org/abstract/uniquesystemmonitoringandevaluationsume
dominicanrepublic2010

21

2011

2014
Commercial
19%

23%
PublicSector(Free)
52%
25%

56%
SocialMarketing
(NGO)

25%

Source: Euromonitor International

Havingdippednearly5%in2011,thetotalcondommarketisexpectedtogrow2.7%in2012primarily
impactedbygrowthoffreecondomsdistributionandretailsales.Thetotalcondommarketisexpected
toreachnearly30millionunitsby2014,asSMOsalesrebound,freedistributioncontinuetoriseand
retailsalesbegintostabilize.By2014,subsidizedcondomsareexpectedtorepresent56.1%ofthetotal
condommarket,with24.5%representedbyfreedistribution.

Commercialcondomssalesareexpectedtoincreasinglyconcentrateamongthetopbrands(including
bothhighandlowcostbrands),whilesmallerplayerswillcapturedecreasingshareofthecommercial
market.Themarketingstrengthandbrandrecognitionofthelargerplayerswillmakeitincreasingly
difficultforthesmallerplayerstocaptureshare.Economicuncertaintiesoverthe2012to2014forecast,
followingthe2012presidentialelectioninthecountry,mayimpactcommercialsalesandevenresultin
slightdecreasesofcommercialsalestowardtheendoftheperiod.

Fundingsourcesandinternationalaidforsubsidizedanddonatedcondomsappeartobeinplaceforthe
forecastperiodbutarenotassured.Shouldfundingsourcesadjustallocations,subsidedanddonated
condomdistributioncouldbeadverselyaffected.

Consumerdemandforcondomswillcontinuetogrowovertheforecastperiod.Educationaland
awarenessprogramsespousedbygovernmentagencies,SMOsandNGOshavemadegreatstridesin
increasingconsumerawarenessofcondomsandinfluencingbehaviouralchangestowardsexual
practices.Attitudesarebecomingmoreliberaltowardcondomuse,particularlyamongtheyounger
populationsandfemales.Thechallengeremainstosecuretheresourcesandmechanismstomeetthis
growingdemandforcondoms.

Opportunities for Options

Overview of opportunities
Strongdistributorrelationshipsalongwithadditionalproductfeaturesprovideavenuestoincrease
brandparticipationintheDRmarket

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Thecommercialcondommarkethasgrownsignificantlysince2008intheDominicanRepublic.
Commercialbrandshavebecomeincreasinglyaggressiveintheirmarketinginitiativesandhavebuilt
strongrelationshipswithwholesalerstotheretailchannel.

Additionally,consumerpurchasingbehavioursarebecomingmoresophisticatedascondomawareness
anduseincreases.Consumersaredemandingmoreproductvarietiesandoptions,includingtextured
andflavouredproducts,condomsofvaryingthickness,retardantagentsthatprolongejaculationand
otherfeatures.Whilecommercialbrands,ledbyDurexandTrojan,arelargelyresponsibleforcreating
thisdemand,theyarealsoquicktoprovidethedesiredfeaturesfurtherfuellingthedemand.Innovative
brands,specificallyTeAmo,haverecentlyintroducedadditionalfeaturesdemandedbyconsumers.
ThesefactsplacecompetitivepressureonthePantebrandintheretailmarket.

Theproposednewdistributionstrategy,ifimplementedcorrectly,shouldgoalongwayinhelpingto
reinforcethePantebrandamongthekeyretailers:Colmadosandpharmacies.Reachingthecolmado
andpharmacyretailchannelsthroughdirectdistributiontowholesalersandlargepharmaceutical
companieswithsufficientsalesforces,willstreamlinecommunicationsandexpediteproductspeedto
market.

Clearly,stutterstepsinimplementingtheprocesscanbeexpected.Thisisparticularlytruewithrespect
tothelearningcurveinvolvedingaininganunderstandingofthepurchasinganddistributionprocesses
forwholesalers/distributors.ThePantebrandstrategyshouldmakeitasseamlessaspossibleforthese
wholesalers/distributorstoabsorbthebrandintheirproductmix.

Toexpeditethislearningcurveandbuildpositiverelationshipswithwholesalers/distributors,itwould
beprudenttoestablishclearlydefinedobjectivesandprocessesforaccomplishingtheseobjectives.
Considerationmightbegiventothecreationofaleadgenerationstrategy,whichhastheadvantageof
collectingdatawhilesimultaneouslyopeningdoorstorelationshipbuilding.Infollowthroughtolead
generationactivities,personalmeetingscanbescheduledonaformalbasisoramoreinformalbasis,
suchasboxlunchesoracombinationofboth.Whileformalmeetingsestablishrelationshipswith
executivesofthewholesalers/distributors,boxlunchesaredesignedtoprovideinformationtothefield
salesforcesofthesecompaniesconcerningthebrand,brandpositioning,keysellingpointsandthe
advantagesofpromotingthePantebrand.

Giventherapidityofimplementingthenewstrategy,itmightalsobeusefultoarrangemeetingsand
trainingsessionswiththeNGOstofurtherassurethemoftheirimportancetotheoverallprocessand
helpmotivateacceptanceofthenewstrategy(andnewlydefinedterritories).Onesuccessfulexample
ofthiswasCARISMAandPSI/DRscloseworkwithDIGITStoconveneatcondomcommitteethatwas
instrumentalingettingtheNationalCondomPolicyadoptedin2011.NGOswillcontinuetoplayakey
roleinthesalesofthePantebrandanditiscriticalthattheyembracethenewstrategy.

Finally,shouldthemanufacturingcapabilitiesexistwithinaneconomicallyfeasibleperspective;the
Pantebrandshouldbeginexploringadditionalfeaturestoexpanditsproductofferings.Tobesure,from
designtomanufacturingimplementationthroughmarketintroductionmayrequireasignificanttime
andresourcesinvestment.Notwithstanding,thePantebrandremainsahighlypopularandrecognizable
brandintheDR.Coupledwiththeenhancedmarketingcapabilitiesofthebrandthroughthenew
distributionstrategy,alongwithrightpricing,thereiseveryreasontofeelconfidentthatadditional
featureswillfurtherbolsterthebrandintheretailchannel.

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