reproductive health supplies market development approaches presentation to the coalition
TRANSCRIPT
Reproductive Health SuppliesReproductive Health SuppliesMarket Development ApproachesMarket Development Approaches
Presentation to the Coalition
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What MDAs should achieveWhat MDAs should achieve
• Efficiency – MDA interventions will serve to move people up the value chain from heavily subsidized products to wholly commercial and non-subsidized products
• Effectiveness – MDA interventions will result in overall market growth
• Equity – The success of MDA interventions relies on a better targeting of subsidies
MDA interventions are worthwhile only if the moneysaved is reinvested to the benefit of the poorest
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Market Development Approaches – Ends and meansMarket Development Approaches – Ends and meansE
nd
s/ O
utc
om
es
Peripheral MDAe.g. public sector introducingcharging for some segments,
or outsourcing part ofsupply chain to private sector
Core MDAe.g. introducing new commercial player to
attract users frompublic sector
Not MDAe.g. public sector expanding
scope of free distributionprogram
Peripheral MDAe.g. introducing new commercial player to
add to method mix
Means/ Approaches
Non-Commercial Commercial
Improved RH effici-ency
Improved RH effec-tiveness
•Initiatives to grow supply or demand in the commercial market (I.e. some/ full cost recovery, commercial channels)
•Initiatives to grow supply or demand in the non-commercial market (I.e. little or no cost-recovery, non-commercial distribution)
•Lowering cost/ increasing sustainability of achieving a given RH outcome
•Achieving a better RH outcome
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Example of MDAsExample of MDAs
• Shift costs from public sector purse to private pockets so that poor and vulnerable can be better served:
– Targeting subsidies– Transitioning consumers to higher priced
products– Alternative financing mechanisms– Reduce commodity costs for procurers and
consumers
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Example of MDAsExample of MDAs
• Reduce the costs of and increase the effectiveness of distribution
– Public to private distribution– Private provider training– Partnership for commercial distribution (with
FMCG companies)– Effective distribution– Social franchising
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Example of MDAsExample of MDAs
• Create a policy/enabling environment tat encourages competition and choice
– Registration facilitation– Taxation and duty reduction– Increased number of products / offer
(crowding in)– Authorize new distribution channels / type of
outlets for hormonals
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Example of MDAsExample of MDAs
• Marketing and demand creation– Category demand creation (vs branded)– Greater freedom with advertising / distribution– Better communications (effectiveness of BCC)
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Priorities and GapsPriorities and Gaps
• Define success – what programme aims to achieve: health impact, sustainability, cost to donor/government, targeting of subsidy, availability/choice for consumer, enabling environment
• Take a Total Market Approach – requires recognition of market dynamics and collaboration across projects
• Understand Markets – including consumer segmentation, before programmes are designed
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RecommendationsRecommendations
• Develop more tools (and pay for them to be used!)– Market assessment– Targeting mechanisms– Market segmentation– Willingness to pay surveys– 4 Ps: Product, Price, Place, Promotion– Post-project evaluation
• Try out more and various approaches, evaluate them & share results quickly
Creating a Country Typology for Creating a Country Typology for Market Development ApproachesMarket Development Approaches
RHSC MDA Subgroup
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Proposed CriteriaProposed Criteria
Market Potential
• CPR levels x Population of Women of Reproductive Age
• Competitive environment – esp. efficiency, affordability and targeting of public sector vs private sector
Financial Potential
• Ability to Pay • Willingness to Pay• Business environment
(regulations, taxes, distribution, promotion)
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High CPR and/or favorable High CPR and/or favorable competitive environmentcompetitive environment
Little ATP and/or WTP and/or Little ATP and/or WTP and/or unfavorable business unfavorable business environmentenvironment
Ex: KenyaEx: Kenya
Characterizing country environmentCharacterizing country environment
Market Market
PotentialPotential
Financial Financial
PotentialPotential
LowLow
HighHigh
LowLow HighHigh
Low CPR and/or competitive Low CPR and/or competitive environment unfavorableenvironment unfavorable
Little ATP and/or WTP and/or Little ATP and/or WTP and/or unfavorable business unfavorable business environmentenvironment
Ex: Benin, CongoEx: Benin, Congo
High CPR and/or favorable High CPR and/or favorable competitive environmentcompetitive environment
High ability to pay and/or High ability to pay and/or WTP and/or favorable WTP and/or favorable business environmentbusiness environment
Ex: Morocco, VenezuelaEx: Morocco, Venezuela
Low CPR and/or competitive Low CPR and/or competitive environment unfavorableenvironment unfavorable
High ability to pay and/or High ability to pay and/or WTP and/or favorable WTP and/or favorable business environmentbusiness environment
Ex: UkraineEx: Ukraine
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Market Market
PotentialPotential
Financial Financial
PotentialPotential
LowLow
HighHigh
LowLow HighHigh
High CPR and/or favorable High CPR and/or favorable competitive environmentcompetitive environment
Little ATP and/or WTP and/or Little ATP and/or WTP and/or unfavorable business unfavorable business environmentenvironment
Ex: KenyaEx: Kenya
Low CPR and/or competitive Low CPR and/or competitive environment unfavorableenvironment unfavorable
Little ATP and/or WTP and/or Little ATP and/or WTP and/or unfavorable business unfavorable business environmentenvironment
Ex: Benin, CongoEx: Benin, Congo
High CPR and/or favorable High CPR and/or favorable competitive environmentcompetitive environment
High ability to pay and/or High ability to pay and/or WTP and/or favorable WTP and/or favorable business environmentbusiness environment
Ex: Morocco, VenezuelaEx: Morocco, Venezuela
Low CPR and/or competitive Low CPR and/or competitive environment unfavorableenvironment unfavorable
High ability to pay and/or High ability to pay and/or WTP and/or favorable WTP and/or favorable business environmentbusiness environment
Ex: UkraineEx: Ukraine
Characterizing country environmentCharacterizing country environment
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High CPR and/or favorable High CPR and/or favorable competitive environmentcompetitive environment
Little ATP and/or WTP and/or Little ATP and/or WTP and/or unfavorable business unfavorable business environmentenvironment
Ex: KenyaEx: Kenya
Low CPR and/or competitive Low CPR and/or competitive environment unfavorableenvironment unfavorable
Little ATP and/or WTP and/or Little ATP and/or WTP and/or unfavorable business unfavorable business environmentenvironment
Ex: Benin, CongoEx: Benin, Congo
High CPR and/or favorable High CPR and/or favorable competitive environmentcompetitive environment
High ability to pay and/or High ability to pay and/or WTP and/or favorable WTP and/or favorable business environmentbusiness environment
Ex: Morocco, VenezuelaEx: Morocco, Venezuela
Low CPR and/or competitive Low CPR and/or competitive environment unfavorableenvironment unfavorable
High ability to pay and/or High ability to pay and/or WTP and/or favorable WTP and/or favorable business environmentbusiness environment
Ex: UkraineEx: Ukraine
Market Market
PotentialPotential
Financial Financial
PotentialPotential
LowLow
HighHigh
LowLow HighHigh
Characterizing country environmentCharacterizing country environment
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High CPR and/or favorable High CPR and/or favorable competitive environmentcompetitive environment
Little ATP and/or WTP and/or Little ATP and/or WTP and/or unfavorable business unfavorable business environmentenvironment
Ex: KenyaEx: Kenya
Low CPR and/or competitive Low CPR and/or competitive environment unfavorableenvironment unfavorable
Little ATP and/or WTP and/or Little ATP and/or WTP and/or unfavorable business unfavorable business environmentenvironment
Ex: Benin, CongoEx: Benin, Congo
High CPR and/or favorable High CPR and/or favorable competitive environmentcompetitive environment
High ability to pay and/or High ability to pay and/or WTP and/or favorable WTP and/or favorable business environmentbusiness environment
Ex: Morocco, VenezuelaEx: Morocco, Venezuela
Low CPR and/or competitive Low CPR and/or competitive environment unfavorableenvironment unfavorable
High ability to pay and/or High ability to pay and/or WTP and/or favorable WTP and/or favorable business environmentbusiness environment
Ex: UkraineEx: Ukraine
Market Market
PotentialPotential
Financial Financial
PotentialPotential
LowLow
HighHigh
LowLow HighHigh
Characterizing country environmentCharacterizing country environment
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Market Market
PotentialPotential
Financial Financial
PotentialPotential
LowLow
HighHigh
LowLow HighHigh
• Demand creation / Demand creation / BCC BCC
• Target subsidiesTarget subsidies
• Improve policy Improve policy environment for environment for private sectorprivate sector
• Offer low cost Offer low cost products in private products in private sectorsector
Matching MDAs and country environmentMatching MDAs and country environment
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Market Market
PotentialPotential
Financial Financial
PotentialPotential
LowLow
HighHigh
LowLow HighHigh
• Value creation (new products, Value creation (new products, advertising, marketing)advertising, marketing)
• Segmentation strategiesSegmentation strategies• More targeted public sectorMore targeted public sector
• Extend offer / outreach of private Extend offer / outreach of private sectorsector
Matching MDAs and country environmentMatching MDAs and country environment
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Next StepsNext Steps
• Finalize a country typology tool with clear source of data identified and a methodology for classifying countries
• Make tool available (RHSC website)