We are offering a fresh and bombastically designed condom product mainly for the youth, but also for older generations. We have a unique mission: to change people’s mindset on safe sex and educate them to achieve a fuller and healthier sexual life.
Service & product
Designed in Hungary by the DUGO team, a new type of condom has been conceived. We believe that people need to change their views on sex. In most parts of the world, sex is a taboo, about which it is not cool to talk. We aim to change that. With our brand, DUGO, we offer a fresh, playful, and 2020 design condom, with which you can flex on your friends because it is so cool to wear.
Our main target group is the youth, who need a fresh, cool, discrete, and also online available branded condom product, which is easy to purchase.
Who are our customers? Why?
A huge issue considering the field of condoms is that teenagers cannot, or hardly can buy these products, at least they will be treated with an awkward glance or conversation with the cashier. What is even worse, some stores operate with such nonsense that they rule teenagers under 18 not to be served with these products, so even if they are in an active sexual relationship, they cannot access this form of protection. Our business model tackles these issues by allowing customers to make their condom purchases online, free of any judgments. Our main target age group is people between 16–23 because the design and visual appearance represents a greater factor for them.
Market and Competitors
Global Market Approach
There are a lot of businesses focused on selling sexual accessories, most of them are so-called sex shops, offering a wide range of products; whereas only a handful of companies use a creative approach to sell condoms. We can see different strategies: funny packages, subscription systems or a wide selection of sizes. Our closest competitions are the Say it with a condom based in Miami and the German Einhorn, both using catchy slogans and humorous design to attract customers.
What makes us different from our competitors is that we are not only using the design approach but also combining humor with sexual education. Sex ed at schools is outdated and it does not provide comprehensive knowledge for young people. We are not only selling a product but also providing instructions for a fuller and healthier sexual life.
Hungary is the country of 21 million condoms, where 80% of the turnover is shared by the three largest companies Durex, Lifestyles, and Masculin. Our approach would be refreshing to the unanimous Hungarian market.
Organization and management
We are a team of 3 dedicated young students, a perfectly composed team with a perfectly balanced skillset. Ben is responsible for managing the tasks and writing the agendas for the meetings, and also, for the future online growth of the project (webpage, social media, webshop management, handling the domain and hosting issues). Taki is responsible for research and validation of the project, and he will lead the sales and communication part. He is the truthful spokesman of the brand. Máté is boosting the team with his extraordinary design skills, and also, he will create the content for social media and manage advertisements.
Marketing and sales
Our slogan is, as you may have guessed already: “Wearing a condom isn’t awkward”
Our mission is to change people’s mindset and their views on sex
Our brand name, “DUGO” refers to what we do because of the letter D – it is shaped like a condom.
Why did we choose this brand name? Because it’s really dynamic and it can mean several different things, e.g.:
In the Hungarian language, we use this word literally.
1, We use it for cork and bathroom plug. This may indicate that the cork is preventing the wine escaping from the bottle.
2, The Hungarians also use it for that when they have sex. This is a figurative and often used expression for the activity.
Where else can we apply:
As for our marketing, we would like to complete our brand with T-shirts, and other accessories, like baseball caps which are easy and cool to wear, also functioning as amazing advertisements for our company. In these products, we wish to declare and highlight the key message behind our product, to spread it around the world. It is easy to grow, and get attention to our business in the online field as well, e.g. with sexy or funny gifs, short promo videos, or memes, that not only entertain but also educate. These contents (especially in this topic) tend to become viral on social media.
Events where we can represent the product:
Universities, school events, spring break camps, and dormitories. We already started to contact clubs and nightclubs, concert places where we can give promotional pieces with the entrance tickets. All these places are mainly used for promotional purposes not for profit. This is represented as “promotional distribution” in the calculation below.
We are planning to have 4 types of packages.
The production cost is $0.02/piece with custom product labelling. Shipping is $0.03/piece, so for 1,000,000 pieces including the tax fees, it would cost $53,600 in total. This way the cost of 1 piece is $0.0536. If the packaging is 0.15 , the production and sale price of each pack is:
this leads to a profit of $0.6460575/piece. Counting with the Hungarian tax rates (27% after the sale prices), we will earn a net profit of $0.486 after each piece, or $486,000.
For building up the brand, for online promotion, if we want to reach 1,000,000 customers counting with facebook ads would cost $150,000 (we are counting with 100 million people to see our ad, with a CPM of $1.5, to gain 1M customers; and we didn’t count with people telling each other about the product). If we are growing offline as well, for the T-shirts, and other gadgets we count with $50,000.
This way the ultimate net profit would be $286,000.
How do we want to enter the market?
“Malaysia’s Karex Bhd makes one in every five condoms globally. It has not produced a single condom from its three Malaysian factories in the past 10 days due to a lockdown imposed by the government to halt the spread of the virus.” – the Guardian, 27 Mar 2020
There couldn’t be a better time to enter the market than now when it is lacking 20% (which amounts to 100 million) of condoms. Major companies, like DUREX, had to shut down and stop production because of the virus, and it is spreading to India just now, where many other major factories.
In China, COVID-19 is no longer an issue. They are working as usual and can provide immediate shipping of the goods. We were negotiating with many factories and managed to obtain very fair prices from three major ones. They have all the necessary certificates to start and can produce a custom label for 100,000 pieces under 10 days. Shipping to Europe takes an additional 3–10 days with DHL.
We would be open, and we are ready for any kind of investment. Besides the financial support, we are seeking mentoring and social capital. We can start with as low as 100,000 pieces, but we can also go with 100,000,000. We would like 10% of the profit during the market entry period, and after x number of sales, or y time, which we can discuss together, we would be open to provide 49% of the whole business as a company to you.