Marketing of Condoms in Supermarkets: Cash Registers versus Regular Shelves as Point of Sale. Contract Nos. CI86.21A / CI87.47A July 1 1986 - September 30 1987. Final technical report.

In Mexico PROFAM conducted operations research from July 1 1986 to September 30 1987 to 1) test the effect on sales of locating condoms at a supermarket cashier versus on the pharmacy shelves 2) test whether lower- or higher-priced condoms generated more sales 3) develop a consumer profile 4) describe the attitudes of potential consumers and supermarket personnel regarding the sale of condoms in supermarkets and 5) estimate the costs of sales of condoms in supermarkets. Eight stores in a chain were randomly assigned to one of the two conditions. Data were provided by supermarket records focus groups and questionnaires. Cashier location sales were nearly four times higher than shelf location sales and the higher-priced brand was 40% more popular. During the last trimester of the project all condoms were displayed only on pharmacy shelves because of complaints received about the cashier location. The total number of boxes of condoms sold was a relatively small 11627. Results of the consumer focus groups led to the recommendation that sales would be expanded by increasing the accessibility and acceptability of condoms. The cashiers reported that the product attracted consumer attention and a satisfactory turnover. Store managers were committed to condom sales but could not agree on how to handle the product because of concerns about the effect of easy access on the attitudes of young people. Data from the consumer questionnaire indicated that 96% of purchasers were male 90% were between 20 and 39 64% were married 49% had no children 35% had two children 68% had some university education 58% owned a car 52% owned their home 51% had used condoms for less than one year and 81% used condoms for family planning. The consumers liked the convenience of purchasing condoms in the supermarket. Cost analysis showed that renting space near the cashiers was prohibitively expensive and the low sales volume meant that 46% of total sales went to expenses. To counteract this cost PROFAM hired a commercial distributor with a commission of 20% of sales. As a result of this project a major competitor in the private condom market has also begun to sell condoms in supermarkets and PROFAM is working to expand sales to other chains.