Intimate Selling
Product innovation and sales growth have boosted the family planning category.
Out from behind the pharmacy counter and onto the supermarket shelves, family planning products have become a mainstream part of many shopping lists.
While many consumers consider these products to be part necessity and part indulgence, some retailers have yet to find ways to cater to shoppers interested in this potentially lucrative category.
It was not too long ago that many grocers were reluctant to carry family planning products, especially condoms, and those that did handle the products kept them basically hidden. When it came to this category's acceptance at retail, grocers depended on drugstores to do the heavy lifting in merchandising and promotion to make the public aware of their availability before bringing them into mainstream supermarkets.
However, times have certainly changed for the vast majority of supermarkets retailers, which offer a more convincing approach to key category drivers, such as condoms, pregnancy testing kits, personal lubricants, and oil and massage products. The evolution of the category in supermarkets mirrors broad changes across the board, by moving from a couple of condom brands and a SKU or two for pregnancy tests, to an increasingly diverse array of contraceptives and personal "pleasure-enhancing" items. Further, merchandising has also gone from a couple of facings a decade ago to a full section of complementary products in many grocery stores.
Building on Tradition
Chicago-based Mintel Group reports steady growth within the OTC contraceptive category, which is by far the largest portion of the family planning section. The market researcher estimates that sales of OTC contraceptives will reach $1.19 billion in 2012, a 4.7 percent increase of 2011 levels. With sales increasing annually since 2008, Mintel forecasts OTC contraceptive sales will continue to increase through 2017, to surpass $1.6 billion.
Male condoms are the foundation of the OTC contraceptive category, accounting for 78.9 percent of all sales. While other products, such as female condoms and especially the so-called "morning after" emergency contraceptive will play an increasing role in the category, the traditional condom is expected to remain the stalwart player in category sales.
Part of the increase in condom sales can be credited to the plethora of new condom varieties, such as ribbed, vibrating, colorful and even flavored varieties.
The choice of products has generated a great deal of interest in the category, especially among female shoppers. According to a survey by Church & Dwight's Trojan brand, 51 percent of women surveyed said that they had purchased condoms, though men are still more likely to purchase condoms — 85 percent of males surveyed, according to Trojan's U.S. Sex Census.
Trojan's study found that on average Americans over age 18 engage in sexual intercourse 120 times a year; 63 percent of those surveyed indicated they wanted to have sex more often. These findings indicate that the market for OTC contraceptives and family planning products in retail food stores is particularly promising.
Missing the Love Boat
As such, supermarkets have the most to gain from better marketing of OTC contraceptives, because the supermarket channel is running dead last in sales of these products. Mintel estimates supermarket sales of OTC contraceptives will reach $70 million in 2012, virtually unchanged from their 2011, which represents about 6 percent of the total retail category sales. By contrast, drug store sales will reach $405 million (34 percent of the category), while convenience stores will sell about $180 million (15 percent).
So why are supermarkets so far behind other retail channels when it comes to sales in the family planning category? It largely comes down to awareness and promotion.
Supermarkets have traditionally been very conservative in their approach to these products compared to other channels, especially in terms of active promotions, which is the deemed to best build awareness and drive sales within the category. The good news is that manufacturers are beefing up their marketing efforts within the family planning category. Not only are the major national brands, such as Trojan, Lifestyles and K-Y, actively promoting their products but so too are newer and smaller brands, some of which are using rather unconventional promotional methods.
Trojan — by far the leading condom brand with sales of $224 million for the year ending April 15 — has responded by becoming more aggressive with its promotions, as has the personal lubricant brand K-Y from McNeil.
Invigorating Promotions
Meanwhile, Ansell's Lifestyles condoms have been a mainstay on retail shelves for two decades, although a new major player has arrived: Reckitt Benckiser's Durex brand condoms and complimentary products that have made inroads on retail shelves. The British condom manufacturer has used aggressive and, some might say, suggestive, advertising to build awareness and market share.
While these new mass advertising campaigns have spiced up the awareness of the category, smaller manufacturers are behind some of the most innovative and controversial promotions. Brands such as Rough Rider are using social events and parties at clubs to promote their product, much like some liquor manufacturers do. Celebrities are also playing a starring role in these promotions, as are websites featuring models and photo galleries of the promotional parties.
Other makers, like Bravo, use sponsorships of extreme sports to build awareness, while social media outlets are becoming a particularly effective means of building awareness for a brand of condos or other products in the category.
Supermarkets can also harness the Internet as a means of building awareness for their family planning sections. Promoting the products and offering consumer education online can help retailers build a shopper base for these products. Launching a social media campaign targeted to younger adult shoppers could also help bring them into the store instead of Internet retailers.
Supermarkets have the most to gain from better marketing of OTC contraceptives, because this channel is running dead last in sales.
78.9 percent the amount of sales male condoms account for the OTC contraceptive category.
Source: Mintel