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DKT upbeat on double-digit growth

Indonesia’s largest condom distributor, DKT Indonesia, expects to sell 145 million condoms this year, an increase of 11

Tassia Sipahutar (The Jakarta Post)
Jakarta
Fri, November 16, 2012

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DKT upbeat on double-digit growth

I

ndonesia’s largest condom distributor, DKT Indonesia, expects to sell 145 million condoms this year, an increase of 11.5 percent compared to its sales performance in 2011, according to country director Todd Callahan.

The company has maintained double-digit growth during the past four years.

Callahan attributes the company’s increased sales to rising public awareness about sexually transmitted diseases and the extensive marketing programs carried out by his team for three brands managed by the company: Sutra, Andalan and Fiesta.

Existing perceptions about imported products has also played a role in DKT higher condom sales since all of its products were manufactured abroad, Callahan said.

“Imported products are still perceived as being of higher quality,” he said.

Sutra and Andalan are manufactured in Thailand, while Fiesta is produced in Malaysia. Sutra is currently the firm’s most popular product.

DKT Indonesia’s Sutra and Fiesta senior brand manager, Pierre Frederick, attributed Sutra’s popularity to its relatively low price. A pack of three Sutra condoms costs between Rp 3,500 (36 US cents) and Rp 4,000.

Even though Sutra currently dominates DKT’s sales, Fiesta is also becoming more popular, according to Todd. Based on research by MarkPlus Insight to determine Indonesia’s favorite youth brand in 2012, Fiesta is placed second after Sutra. “We regularly hold events at various entertainment venues to promote Fiesta,” he added.

Besides selling condoms, the company also provides various contraceptive products under the brand Andalan.

DKT, a US-based social marketing enterprise specializing in HIV/AIDS prevention and family planning, has sold more than 1 billion condoms since its establishment in Indonesia in 1996.

Todd said the firm currently held the largest share in the condom market. He cited last year’s AC Nielsen research on the market for condoms, which stated that market sales had reached 200 million condoms, excluding those handed out by the government.

However, the firm’s expected sales target in 2012 was still considered low compared to Indonesia’s population, Todd added.

“I will be very glad if we can sell 145 million condoms this year but in Indonesia, whose population is around 240 million people, sales should be a lot higher. It should be several hundred million condoms per year,” he said, adding that people’s low self-perceived risk of becoming infected with HIV/AIDS posed a major challenge in marketing condoms.

In 2013, DKT will introduce new products, including a strawberry-flavored Fiesta lubricant and an Andalan tubal ring. Both products are expected to be launched in the first half of the year.

Todd said DKT hoped the products would help boost condom use and increase people’s awareness about HIV/AIDS and the need for family planning. “It is very important for people to be able to protect themselves against the disease,” he said.

According to a report by the Health Ministry, between January and June 2012, the number of HIV cases reached 10,138. Last year, the number totaled 21,031, down 2.6 percent from 2010.

In terms of the number of people contracting HIV/AIDS, the ministry and the National Commission on AIDS Prevention (KPAN) reported that the estimated number had declined to 186,257 in 2009, compared to 193,070 in 2006.

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