Global Marketing Management Case Study: AIDS, Condoms & Carnival

1. Global Marketing ManagementCase Study:AIDS, Condoms & Carnival MKTG 3231-001 Spring 2014 Mrs. Tamara L. Cohen Class # 24

2. REMINDER Wednesday, April 16 = PROJECT WORK DAY

3. BACKGROUND • AIDS spread very quickly in Brazil, becoming 2nd highest incidence of HIV/AIDS in Americas. • Brazilians don’t like condoms; attitude aggravated by Latino machismo & accelerated by activity at Carnival time. • Government took high profile action: provided universal ARVs + progressive social policies toward risk groups + collaborated with NGOs. • Prostitution is legal in Brazil. Prostitutes not denied treatment despite unsavory image. • India has greater health problems (TB & malaria) than HIV/AIDS, so officials reluctant to prioritize AIDS. • India has massive population with AIDS (3rd largest in world). • Japan has most valuable condom market in world • London Okamoto Group JV launched Durex Avanti in 1998, world’s 1st polyurethane condom, which claims superior functionality. • Durex is only global brand of condoms.

4. PROBLEMS • Brazil - much of population has multiple partners, married or not • High incidence of HIV/AIDS; #1 killer of ♀ of child-bearing age • Contraception in general & condom use in particular has not been in frame of reference because Brazil is predominantly Catholic • Catholic party line re family planning • Brazilians (♂ & ♀) don’t like condoms; ♀ don’t like to ask; impasse • High price of condoms - both ♂ & ♀ • Perception that not at risk for HIV/AIDS - both ♂ & ♀ ≥ 80% • High cost of ARVs • Carnival: higher promiscuity; drugs/intoxication compromise judgment; less protection, high risk for spreading infection • India has huge incidence of HIV/AIDS - 3rd highest in world • Officials won’t prioritize & commit to national campaign; fighting spread of HIV/AIDS haphazard • AIDS education targets overall population, not specific segments • Denial at individual level; social stigma • Resistance at gov’t level; taint of Western decadence • Condom supply uncertain from gov’t • India has extensive labor migration, low literacy, gender disparity • London Int’l sponsors events like AIDS Conference, Vancouver 1996

5. COURSES of ACTION BRAZIL Health Ministry continue: • educational campaigns in high risk & general populations • distribute free ♂ & ♀ condoms • provide free ARVs • collaboration with NGOs • combat drug companies’ high prices • political commitment INDIA • learn from Brazil: fight on all fronts; gov’t lead • especially target high risk segments (e.g. prostitutes) • bolster barber network (e.g. tax incentive) • grass roots programs • piggyback Coke & Pepsi national distribution, or alternative multinational companies e.g. Lever, P&G, banks SSL International • use position of global influence to push education campaign e.g. via condom packaging • sponsor grass roots campaigns in addition to “preaching to the choir” AIDS conferences • manufacture in Brazil & India

6. RECOMMENDATIONS BRAZIL managed to halve its incidence of AIDS compared to the World Bank’s prediction for 2000. They are on the right track, and should vigorously pursue their initiatives: “don’t be squeamish”, treat freely, encourage volunteer action, early treatment is less expensive than later treatment. Continue to face down drug companies. INDIA needs commitment and a national plan. The government needs to extend education, and vigorously promote avoidance via condom distribution. All available channels should be used, bolster strong barber network and leverage multinationals’ distribution networks. SSL International should use its unique global brand to foster global education about AIDS. Use Durex packaging, and sponsor grass roots education programs in hard-hit parts of the world.

7. CONCLUSION According to the Economist magazine (May 2007), echoing a United Nations position, “no developing country has had more success in tackling AIDS than Brazil”. Brazil's multi-pronged attack is a model for other countries, especially India. With national (government) commitment, India can tap into effective networks like the iconic barber shops and multinational companies’ consumer goods distribution networks to promote education, prevention and treatment. SSL International’s business is booming (20% growth in revenue this year). SSL must demonstrate good corporate citizenship by leveraging its strength, which is global brand (Durex) presence.

8. EXECUTIVE SUMMARY AIDS has been devastating in every country, but the developing world has struggled extra hard to contain the scourge. Brazil’s multi-faceted approach has been successful against tough odds. It may be regarded as a model for other hard-hit countries like India. SSL International, owner of the only global brand of condoms, Durex, can leverage its unique market position to extend education programs and encourage use of condoms to stop the spread of the disease. Experience with the new Durex Avanti brand in Japan may be instructive in pursuing solutions for remaining issues in Brazil.

9. Next class: Exam # 3 Preparation: Review PPTs & your class notes