Trojan condoms' market dominance and brand longevity in America

Trojan Condoms

It seems rather odd that a company would name their condoms 'Trojan,' considering that most people think of Troy and the deception that occurred there. However, that does not seem to be of any consequence to the people who buy the brand. Trojans are the most popular brand in America, and they make up over seventy percent of the condom sales in drugstores, which is over four times the market share of their closest competitor (Koerner, 2006). They are also sold throughout the world, so they can be found almost everywhere - although they are not as well-known in many other countries because those places often have their own brands that are very well established (Trojan, 2008). Trojan, however, remains a strong brand and there are more than twenty-nine different varieties that can be chosen from (Koerner, 2006).

The main strength of the company and the condom is the longevity of the brand (Trojan, 2008). Name recognition is very important when selling condoms. Most people will gamble with unheard of brands of all types of things, but birth control should not be one of them (Condom, 2008). There is something about it that just makes people uncomfortable. They want a brand that they have heard of and that they therefore assume that they can trust (Koerner, 2006). Trojan is that brand, for most people. Even if they cost a little more than the store brand or other competitors, most people feel that quality should win out over price with something as serious as unwanted pregnancy and STD protection (Koerner, 2006). If they do not recognize or trust a condom brand, they are not likely to buy it, and Trojan has been around since 1920 - long enough to build up that trust (Koerner, 2006).

History

For the generation of today, it is likely that their parents - and even their grandparents - probably used Trojan condoms (Koerner, 2006). There are newer brands out there, and they have some market share, but they are little fish in a big pond compared to Trojan. The condoms came about as the idea of a New York Presbyterian by the name of Merle LeLand Youngs (Koerner, 2006). When he moved to the NYC area, the sale of condoms was very seedy. Most of the makers of them were fly by night organizations and the products were questionable, at best. In 1873, there has been a law passed, called the Comstock Law, that made the sale of any kind of birth control illegal (Koerner, 2006). To get around that, the people who sold condoms marketed them as protection against disease so that they could continue their sales. It was difficult to sell them, though, because most pharmacists saw them as a product associated with sexual vice. Most people bought their condoms in back rooms at bars (Koerner, 2006).

Even though the condom market was struggling, Youngs saw that he could find a way to make a lucrative business out of them. He was an entrepreneur, and he had upstanding morals. Time was on his side, as well. During WWI, the condom makers in America sold their goods to the European armies (Koerner, 2006). The American forces were not allowed to have condoms, and they came home with all kinds of diseases. It was a public health concern, so condoms became more acceptable (Safe, 2008). Youngs thought this would happen, and the year that the war ended a judge ruled that birth control was ok. Condoms still had a bad image, though, and Youngs knew he would have to change that if the idea was going to catch on and grow (Koerner, 2006). He started counteracting the image that condoms had, and began to stress the quality standards that he had to offer. He also built a plant in Trenton, N.J. And produced condoms that were all tested to be uniform quality (Koerner, 2006).

Another thing that Youngs did to ensure that his product would be taken seriously was to change the packaging (Koerner, 2006). Most of the previous packaging from condom manufacturers was very erotic in nature, and he favored a package that was very austere and was meant to indicate both protection and virility without being graphic. His main rival for the condom market, Jules Schmid, was a sausage-maker before he began in that market, and his artwork graced the covers of the Ramses and Sheik brands (Koerner, 2006). Schmid began his work by making condoms from lamb guts in the 1880s. The pharmacists, though, liked the approach that Youngs had because the packaging did not look sinful, so they felt less guilty about it (Koerner, 2006). People were not asking for any particular brand just yet, so when they asked the pharmacist for a condom they were given a Trojan more often than not.

The company that was created, Youngs Rubber, sued another company that was making knockoffs of the Trojan brand (Koerner, 2006). This was done in an effort to show that the company had a strong commitment to the quality of its products. The company also started lobbying both local and state governments to restrict condom sales. This would mean that only pharmacies could sell them, and since the Trojan brand had such an 'in' with pharmacists it basically gave the company a monopoly anywhere that these kinds of laws were passed (Koerner, 2006). It was not successful everywhere, but there were many places where it did pass and the Trojan brand was pretty much all that a person could buy. Another advantage to the pharmacy-only laws was that Youngs Rubber company could get around the idea that condom advertisements were not allowed in mass-market publications (Koerner, 2006).

Conclusion -- Future Trends and Stocks

In recent years, Trojan has brought out the mint tingle condom and the vibrating ring, but there are laws in some states that prohibit sales of that particular product (Koerner, 2006). These are called killjoy laws, and have been on the books for some time. Kansas, Colorado, and Alabama are three of these states, and there are five others (Koerner, 2006). However, the culture and beliefs of the Trojan brand have really not changed that much since Youngs started the brand. The desire was for a quality product that would be appropriate for its use and properly designed, and that is what was created (Koerner, 2006). Since it has remained that way for so long, Trojan is still a very trusted brand that most people recognize throughout the world.

The Church & Dwight primary SIC code is 2840, and the company seems to be doing quite well (EDGAR, 2007). From September of 2006 to June of 2008, the P/E ratio of the company went from 19.95 to 21.10 (EDGAR, 2007). Given what the market has been doing during that time, the company is doing better than a lot of its competitors. The dividend that the company offers has also increased during that time, indicating that the company is still growing and evolving, and that the problems that are plaguing world markets are not affecting the sales of Trojan condoms to the extent that it is a serious problem for the company (EDGAR, 2007). Trojan still remains the favorite condom in American because of the genius of Merle Young and the way that he marketed what he had to offer (Koerner, 2006). Enhancing pleasure is nice, but reliability is what people look for in their condoms and what they need, especially with some diseases on the rise as well as unwanted pregnancies among some groups, like teen girls (Safe, 2008). The Trojan brand has basically become synonymous with condoms in general, and once that happens it is very likely that the brand will continue to remain strong and important in the minds of consumers.