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Taking a Total Market Approach:

Taking a Total Market Approach:. October 1, 2007, Arlington, USA. The Total Market Approach (TMA). The goal and objectives of the RHSC-MDA group are based upon the Total Market Approach:

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Taking a Total Market Approach:

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  1. Taking a Total Market Approach: October 1, 2007, Arlington, USA From choice, a world of possibilities

  2. The Total Market Approach (TMA) The goal and objectives of the RHSC-MDA group are based upon the Total Market Approach: • To develop commercial market possibilities for the benefit of the poor, to assist in increasing prevalence rates and ensure that products are available to meet the resulting demand • TMA-designed to expand commercial contraceptive markets and improve overall contraceptive security at the national level

  3. The Total Market Approach TM Approach based upon: • A comprehensive understanding of the environment and current and future potential market situation • A willingness of all contraceptive providers, both current and future to define their roles, based upon capacity and expertise and agree to work in partnership for the benefit of improving contraceptive use, availability and choice for clients • To bring together the best available national and international resources and expertise to work toward a common objective Bring together the total market actors to develop a total market solution

  4. The Total Market Approach This requires: • Clear understanding of the future market structure that is desired and why • Undertaking the necessary range of research and feasibility activities to accurately develop a proposal and business plan • Being accountable for achieving the project outcomes identified and agreed upon In the Total Market Approach, the potential overall impact of the intervention is addressed at the planning stage

  5. The Total Market Approach • Total Market Approach must not distract donor attention away from the priority needs of the poorest clients

  6. The Total Market Approach • Assess the market • Engage all stakeholders – national and international, private and public • Segment and target • Research – willingness and ability to pay, consumer preference • Plan and coordinate!

  7. The Total Market Approach

  8. Total Market segmentation- simple High-price commercial sector products Affordable commercial products Donor subsidized branded products – Social Marketing Government/donor products, supplied free of charge or at minimum cost recovery

  9. Additional segmentation issues • In addition to economic segmentation between the public, social marketing and different commercial sectors, other detailed segmentation issues can be explored E.G. • Methods of contraception provided by the contributing sectors • Coverage and reach of services provided by the different sectors – urban/rural, pharmacy/clinical

  10. Total Market Actors

  11. Market Development Approaches (MDAs) There are many ways of defining what a Market Development Approach actually means • Market Development Approaches (MDA) are defined as “any intervention undertaken by donors, implementing agencies or the commercial sector that has led, or would lead, to an improved level of financial sustainability, improved access and improved choice for a given market.” • Each of these end-goals can be supported by outcomes of improved RH efficiency and improved RH effectiveness • These can be achieved via a variety of means/approaches

  12. Market Development Approaches

  13. Market Development Approaches The 5 primary ways in which MDAs can expand choice and access to products: • Shift costs from public purse to private pockets so poor and vulnerable can be better served • Reduce the cost of the products • Reduce the costs and/or increase the effectiveness of distribution • Create a policy/enabling environment that encourages competition and choice • Create demand through marketing

  14. Market Development Approaches Two main models of social marketing • NGO model – most suited to immature markets • Manufacturers model – most suited to mature markets

  15. Market Development Approaches

  16. Market Development Approaches Variety of hybrid models have been used • Recognition that markets are unique, base models have been adapted mixed merged and tailored • Evolving markets, evolving opportunities, new ideas Market Development Approaches

  17. RHSC-Market Development Approaches Working Group Actively engaged in dialogue, information sharing and efforts at better coordination • Donors • Implementing agencies/SMOs • National government/NGOs • Commercial manufacturing sector

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