Karex Industries Sdn. Bhd. was established in Malaysia of the year 1988 to manufacture high quality natural rubber latex condoms and other latex dipped products. The company produce a full range of condom variants to meet the ever changing consumer demands and they are managing over 15% of the world's condom market (Karex, n.d). Moreover, they have also expanded their customer base to accommodate individual retailers, government bodies and healthcare organizations to support the fight against HIV, AIDS and other STDs, as well as encouraging good sexual health and awareness (Karex, n.d).
According to Maslow Hierarchy physiological needs, it is suggested that the ﬁrst and most basic needs of human beings are physiological requirements for food, water, sex and shelter. People must have food to eat, water to drink, shelter and sex before they think about anything else (Belmont 2009). Meanwhile, China is one of the most population countries in the world with 1,350 million residents (Population Reference Bureau 2012). Thus, it is clearly shown that there is great market opportunities exist in China. Moreover, another reason we choose to penetrate is due to China’s government has enforced a law that to limit only 1 child per family and the rising sexual transmitted disease in China (Wang 1996; and Levin 2013).
The main target segment in china would be both male and female aged 18 years old and above. However, we will target mainly on married couple due to the restriction of 1 child per family by China government. The lifestyle preference of men and women who are in a relationship where men would prefer to have sex compared with women would rather go out with friends (Durex 2001, p.16). It is considerable to target more on men rather than women due to men are more sexually active than women, however, the buying decisions may also lie on the women for the product’s preference. As for social media target segment, social enthusiasts would be the main target segment. They spend more time on social media sites than other segments, use social media to build and maintain circles of friends and care about the number of friends they have (Chiu, Lin and Silverman 2012, p.5). Not only that this segment places priority on the number of friends they have, it is found that they are educated and slightly younger than average as well. These consumers are happy to see brand advertisements on their sites. They are the most likely to use social media sites to learn about products and services that they want to purchase. The research shows that 46 per cent of respondents in this segment agree that this is an important feature of social media (Chiu, Lin and Silverman 2012, p.5). Social enthusiasts are the most open to advertising and special-purpose apps sponsored by brands. Social media is used most for sharing reviews of products and services and telling friends about their recent purchases (Chiu, Lin and Silverman 2012, pp.5-6). 3.0
Due to the fact that our product is not monopolized, it is identified that there are competitors which can be categorized as direct and indirect competitors. One of the direct competitors for Carex is Durex as it is the best-selling condom brand in the world by the London-based company (Shi 2012,p.24). Durex was introduced into the China by 2007 and became the top condom brand in less than two years and accounts for 10 per cent of the market in China (Shi 2012,p.24). Meanwhile, Yantai 4D High-Tech Biochemistry Co., Ltd, wholly owned by Safedom Technology Holding Group, was established in 2006 at Zhaoyuan City, Shandong Province as manufacturing base of Safedom products (Safedom 2011). The company relies on advanced technology, research and development and also explores constantly in the fields of life science, biotechnology and pharmaceutical R&D, and reserves new technologies and products (Safedom 2011). On the other hand, Carex...
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