Have female condoms and global marketing got something in common?
22 Oct 03

Yes, a lot.

The Female Health Company (FHC), who offers the product of female condoms, is a typical ‘globalized’ SME (Small- and Medium-sized Enterprise), with around $7m in revenues per year. FHC has its headquarters in Chicago, production in London, and its condoms marketed under different brand names in different regions. For example, in the United States they are called "Reality", in the United Kingdom "Femidoms", and in other markets, such as Japan, they are called "MyFemy".

The product, global and standardized across borders, is sold all over the world - especially in less developed countries (such as those in sub-Saharan Africa) where men perceive a stigma attached to wearing condoms, and the number of people with HIV/AIDS, according to the World Health Organization, has reached 24.5 million. In many sub-Saharan cultures it is accepted that men can be irresponsible in terms of sexual health, so the female condom is a way of empowering and protecting women in those countries. In Africa the firm provides low-cost female condoms through an agreement with the Joint United Nations Program on AIDS (UNAIDS).

Secondly, the FHC case is a good example of a new paradigm in this area. For many years global marketing was thought to only be relevant to large multinational companies, who could use the advantages of scale to successfully introduce world-standardized products. However, in response to such threats as increased competition from large multinational firms, many SMEs are now attempting to grow their sales by entering foreign markets. International expansion provides new and potentially profitable markets; helps increase the firm’s competitiveness; and facilitates access to new product ideas and the latest technology.

The internationalization of the SME is unlikely to succeed unless the firm prepares in advance. Advance planning is especially important in international ventures, in which the business environment can be considerably more complex than at home, especially when it comes to coordinating activities in different cultures. The preparation for internationalization involves conducting international market research; committing human, financial and other resources to supporting the international venture; and adapting products to suit the needs of target foreign markets.

The global marketing of female condoms is a typical example of the 65 new and updated case studies to be found in the new third edition of Global Marketing: A decision-oriented Approach by Svend Hollensen. Publishing in January 2004, for more information click here.

To view our latest news releases, please click here.