Download Reproductive Health Supplies Market Development Approaches

Reproductive Health Supplies
Market Development Approaches
Presentation to the Coalition
What 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 money
saved is reinvested to the benefit of the poorest
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Market Development Approaches – Ends and means
Means/ Approaches
Ends/ Outcomes
Non-Commercial
Commercial
Peripheral MDA
Core MDA
supply chain to private sector
e.g. introducing new
commercial player to
attract users from
public sector
Improved e.g. public sector introducing
RH effici- charging for some segments,
ency
or outsourcing part of
Improved
Not MDA
RH effec- e.g. public sector expanding
tiveness
scope of free distribution
program
•Initiatives to grow supply or
demand in the non-commercial
market (I.e. little or no costrecovery, non-commercial
distribution)
Peripheral MDA
e.g. introducing new
commercial player to
add to method mix
•Lowering cost/
increasing
sustainability of
achieving a given
RH outcome
•Achieving a
better RH
outcome
•Initiatives to grow supply or
demand in the commercial
market (I.e. some/ full cost
recovery, commercial
channels)
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Example 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
4
Example 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
5
Example 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 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 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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Recommendations
• 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
9
Creating a Country Typology for
Market Development Approaches
RHSC MDA Subgroup
Proposed Criteria
Market Potential
Financial Potential
• CPR levels x
Population of Women
of Reproductive Age
• Competitive
environment – esp.
efficiency, affordability
and targeting of public
sector vs private sector
• Ability to Pay
• Willingness to Pay
• Business environment
(regulations, taxes,
distribution, promotion)
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Characterizing country environment
Market
Potential
High
High CPR and/or favorable
competitive environment
High CPR and/or favorable
competitive environment
Little ATP and/or WTP
and/or unfavorable business
environment
High ability to pay and/or
WTP and/or favorable
business environment
Ex: Kenya
Low
Ex: Morocco, Venezuela
Low CPR and/or competitive
environment unfavorable
Low CPR and/or competitive
environment unfavorable
Little ATP and/or WTP
and/or unfavorable business
environment
High ability to pay and/or
WTP and/or favorable
business environment
Ex: Benin, Congo
Ex: Ukraine
Low
High
Financial
Potential
12
Characterizing country environment
Market
Potential
High
High CPR and/or favorable
competitive environment
High CPR and/or favorable
competitive environment
Little ATP and/or WTP
and/or unfavorable business
environment
High ability to pay and/or
WTP and/or favorable
business environment
Ex: Kenya
Low
Ex: Morocco, Venezuela
Low CPR and/or competitive
environment unfavorable
Low CPR and/or competitive
environment unfavorable
Little ATP and/or WTP
and/or unfavorable business
environment
High ability to pay and/or
WTP and/or favorable
business environment
Ex: Benin, Congo
Ex: Ukraine
Low
High
Financial
Potential
13
Characterizing country environment
Market
Potential
High
High CPR and/or favorable
competitive environment
High CPR and/or favorable
competitive environment
Little ATP and/or WTP
and/or unfavorable business
environment
High ability to pay and/or
WTP and/or favorable
business environment
Ex: Kenya
Low
Ex: Morocco, Venezuela
Low CPR and/or competitive
environment unfavorable
Low CPR and/or competitive
environment unfavorable
Little ATP and/or WTP
and/or unfavorable business
environment
High ability to pay and/or
WTP and/or favorable
business environment
Ex: Benin, Congo
Ex: Ukraine
Low
High
Financial
Potential
14
Characterizing country environment
Market
Potential
High
High CPR and/or favorable
competitive environment
High CPR and/or favorable
competitive environment
Little ATP and/or WTP
and/or unfavorable business
environment
High ability to pay and/or
WTP and/or favorable
business environment
Ex: Kenya
Low
Ex: Morocco, Venezuela
Low CPR and/or competitive
environment unfavorable
Low CPR and/or competitive
environment unfavorable
Little ATP and/or WTP
and/or unfavorable business
environment
High ability to pay and/or
WTP and/or favorable
business environment
Ex: Benin, Congo
Ex: Ukraine
Low
High
Financial
Potential
15
Matching MDAs and country environment
Market
Potential
High
Demand creation /
BCC
•
•
Target subsidies
Improve policy
environment for
private sector
•
Offer low cost
products in private
sector
•
Low
Low
High
Financial
Potential
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Matching MDAs and country environment
Market
Potential
Value creation (new products,
advertising, marketing)
• Segmentation strategies
• More targeted public sector
Extend offer / outreach of private
sector
•
High
•
Low
Low
High
Financial
Potential
17
Next Steps
• Finalize a country typology tool with clear
source of data identified and a
methodology for classifying countries
• Make tool available (RHSC website)
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