Social Marketing Evolves to Achieve Total Market Development

Full Market Impact™ Social Marketing Evolves to Achieve Total Market Development and Sustainable Health Impact SEEP Annual Conference Sustainable Delivery of Health Products and Services to Underserved Populations October 2007 Usual Situation: Inefficient Market Coverage Rich A B Commercial Sector C D Public Sector SMOs/NGOs E Poor Traditional Social Marketing • Develop and promote noncommercial brands, subsidize supply side, and create donor-dependant marketing systems • Successful in achieving high sales, but at what cost to donors and local business? • No incentives for private sector to invest in marketing “public health products” • What happens when the money runs out? Charity is injurious unless it helps the recipient to become independent of it. John D. Rockefeller Evolution Traditional social marketing evolves to Full Market Impact Full Market Impact Through PPP Rich A B Commercial Sector Sustainable C Subsidized D SMOs/NGOs Public Sector E Long term, highly subsidized Poor Full Market Impact™ PRIVATE Coordination Capacity building Quality Assurance Market Research PUBLIC Product Supply Price Distribution Support/ Marketing Funds Affordability Distribution Demand/Behavior Change Place Promotion Financing Policy/ Advocacy Demand Creation/ Matching Funds Targeted Subsidies Vouchers Sustainable Markets Increase Usage of Public Health Products/Services Equity Sustainable Public Health Impact Implementing FMI in USAID Private Sector Projects • NetMark • Private Sector Program – Tanzania Marketing and Communications for AIDS, Reproductive Health and Child Survival (T-MARC) – Nepal Social Marketing and Franchise Project: AIDS, Reproductive Health and Child Survival (NMARC) – Social Marketing Plus for Diarrheal Disease Control: Point-of-Use Water Disinfection and Zinc Treatment (POUZN) • Together for Health Ukraine For More Information, Contact: Reed Ramlow Project Director, Private Sector Program Center for Private Sector Health Initiatives Global Health, Population & Nutrition Group Academy for Educational Development 1875 Connecticut Ave., NW Washington, DC 20009-5721 Tel. 202-884-8504 E-mail: rramlow@aed.org Center website: http://pshi.aed.org/ AED website: http://www.aed.org Questions • Does the commercial private sector have a role in the production, distribution, and sale of products/services to underserved populations? • What can be done to foster incentives and reduce the risks for commercial private sector to develop/market products and services to poor/underserved populations? NetMark • Mission: To build viable markets for ITNs that reach the BOP in select African countries through partnerships with business • Strategy: Joint-risk, joint-investment partnerships with multi-national and African manufacturers, marketers and distributors • Countries: Ethiopia, Ghana, Mali, Nigeria, Senegal, Uganda, Zambia NetMark FMI Highlights • Partnership – 40 international and African ITN manufacturer and distributor partners • Investment – Joint investment with net manufacturers and distributors have resulted in over $53 million private investment, $1.37 for every USAID dollar invested • Equity – Pioneered targeted subsidies with voucher programs in multiple countries, with funding from multiple sources including private sector (Exxon) T-MARC • Mission: Contribute to improvements in the health status of Tanzanian families and reduce the transmission and impact of HIV/AIDS • Strategy: Form public-private partnerships that will develop and expand markets for a broad range of health products and promote behavior change that will improve public health T-MARC FMI Highlights • Partnership – Collaborative agreement with Shelys Pharmaceuticals • Investment – Shelys invested over $100,000 in-kind support for marketing subsidized condoms and pills in 2006 – Launched own brand ACT, ORS and zinc through its own investment • Sustainability – Shelys to take ownership of USAID RH brands as they graduate from USAID support while continuing to develop markets for its own “public health” brands T-MARC FMI Highlights • Generic Demand/Behavior Change – T-MARC placing increasing priority on generic promotion and BCC to support FMI • Vaa Kondom generic condom campaign • Mama Ushauri FP campaign (to extend to CS) • Sikia Kengele (“listen to the bell”) “be faithful” partner reduction campaign N-MARC • Mission: Increase the availability and sustained use of FP, MCH and HIV/STI prevention products and services in Nepal • Strategy: Form local public-private partnerships that will develop and expand the reach of health products and services that can improve public health Social Marketing Partnership Nepal CRS Company • Traditional social marketing model • Markets subsidized low-priced contraceptives and other health products to enable access among lower income groups • Tasked to reach the hard-to-reach • Established community-based direct selling scheme with CBOs and female health workers/entrepreneurs – Potential for expansion and collaboration with private commercial companies and livelihood/microfinance projects Commercial Partnership Commercial Distributors • Enlist commercial sector in effort to increase consistent condom use among MARPs – More condom choice (types/varieties) for MARPs, increase use • Tap willingness to invest in condom market development • Reduce dependency on donated and/or subsidized condoms • Address RHCS goals due to planned phase-out of USAID donated commodities Condom Market Share - 2006 50% market value Commercial Sector 11% Government 39% FPAN 10% Social Marketing 40% Government Social Marketing FPAN Commercial Sector Commercial Partnership Strategy • Implement matching funds program based on: – USAID Global Development Alliance principles – Full Market Impact principle of “shared risk, shared reward” for public-private partnerships • One-to-one match ratio Commercial Partnership Process • Competitive selection process – 15 EOIs received, distributed RFP to interested parties – Select partners with willingness and ability to co-invest in market development, expand the market for their brands in “hot zones” – Collaborative agreements with three partners – Brands: • Cobra, Black Cobra (Gayatra) • Smooth and Safety Smooth (Pioneer) • Skinless Skin, Inspiral, Honier, female condom (Praxis) • Support all brands, including public sector free condoms, through “generic campaign” (FMI “rising tide lifts all boats”) POUZN • POU – Launched direct selling entrepreneur scheme with microfinance institutions PANI and PRATINIDHI and 1300 of their self-help groups – Commercial Partners: Hindustan Unilever Ltd (HUL), Eureka Forbes Ltd (EFL) and Usha-Brita • Zinc – Six commercial partners – Leveraging $150,000 in POUZN resources vs. commercial sector investment of 1.3 million – Market grew by 130% over 10-month period (as of July 2007) Together for Health Ukraine • Partnership agreement with 7 private sector partners – Janssen-Cilag, Organon, Bayer Schering, Richter Gedeon, IUD distributor, condom distributor, research firm • Certified pharmacy and provider training programs • Generic promotion and education • Co-promotion – EBM approach for CME and provider detailing Question • What is the appropriate role of the development practitioner in supporting the commercial private sector to develop/promote commercially viable products? Appropriate Role of the Development Practitioner • Organizational managers of (total) total market approaches must be disinterested market players – Organizations that own and market brands have an inherent conflict of interest and cannot viably lead a “Total Market Approach” that facilitates the participation of multiple players – Example: Would Microsoft be able to lead a total market approach for software? Wolf tending the sheep herd