Country Typology Country Typology Aiming for MDA Aiming for MDA

SuccessSuccess

RHSC MDA Working GroupRHSC MDA Working Group

Presentation to the Coalition Presentation to the Coalition

October 2006October 2006

22

ContextContext

MDA WG seeks to identify and disseminate MDA WG seeks to identify and disseminate models and tools that facilitate the models and tools that facilitate the development of market approaches that development of market approaches that meet the need of low and moderate income meet the need of low and moderate income customerscustomers

MDA scoping exercise conducted in Q1 MDA scoping exercise conducted in Q1 2006 and recommendations were shared 2006 and recommendations were shared with RHSC in April 06with RHSC in April 06

MDA WG identified need to create a tool MDA WG identified need to create a tool that would broadly inform how MDAs relate that would broadly inform how MDAs relate to country environmentsto country environments

33

Summary of MDAs Summary of MDAs identifiedidentified

Shift costs from public sector purse to private Shift costs from public sector purse to private pockets so that poor and vulnerable can be pockets so that poor and vulnerable can be better served:better served:– Targeting subsidiesTargeting subsidies– Transitioning consumers to higher priced productsTransitioning consumers to higher priced products– Alternative financing mechanismsAlternative financing mechanisms

Reduce commodity costs for procurers and Reduce commodity costs for procurers and consumersconsumers– Procurement mechanismsProcurement mechanisms– Assisting generic manufacturers to play increased Assisting generic manufacturers to play increased

role in provision of RH productsrole in provision of RH products

44

Summary of MDAs Summary of MDAs identifiedidentified

Reduce the costs of and increase the Reduce the costs of and increase the effectiveness of distributioneffectiveness of distribution– Public to private distributionPublic to private distribution– Private provider trainingPrivate provider training– Partnership for commercial distribution Partnership for commercial distribution

(with FMCG companies)(with FMCG companies)– Social franchisingSocial franchising

55

Summary of MDAs Summary of MDAs identifiedidentified

Create an environment that encourages Create an environment that encourages competition and choicecompetition and choice– Support marketing and demand creation interventionsSupport marketing and demand creation interventions

Category demand creationCategory demand creation Greater freedom with advertising / distributionGreater freedom with advertising / distribution Better communications (effectiveness of BCC)Better communications (effectiveness of BCC)

– Policy interventionsPolicy interventions Registration facilitationRegistration facilitation Taxation and duty reductionTaxation and duty reduction Increased number of products / offer (crowding in)Increased number of products / offer (crowding in) Authorize new distribution channels / type of outlets for Authorize new distribution channels / type of outlets for

hormonalshormonals

66

PurposePurpose

Develop a tool that wouldDevelop a tool that would

– provide a broad overview of where a country provide a broad overview of where a country stands in the market development continuumstands in the market development continuum

– get a better sense of the type of MDAs get a better sense of the type of MDAs interventions that would be appropriate for interventions that would be appropriate for this countrythis country

77

Intended useIntended use

To:To:– Help focus analysis on the most relevant aspects of Help focus analysis on the most relevant aspects of

market development in a specific countrymarket development in a specific country– Educate about type of MDAs with higher chances of Educate about type of MDAs with higher chances of

successsuccess

Not to:Not to:– Replace a proper situational analysisReplace a proper situational analysis– Tell stakeholders what to doTell stakeholders what to do

88

Proposed CriteriaProposed Criteria

Market PotentialMarket Potential

CPR levels x Population CPR levels x Population

of Women of of Women of

Reproductive AgeReproductive Age

Competitive Competitive

environment – esp. environment – esp.

efficiency, affordability efficiency, affordability

and targeting of public and targeting of public

sector vs private sectorsector vs private sector

Financial PotentialFinancial Potential

Ability to Pay Ability to Pay

Willingness to PayWillingness to Pay

Business environment Business environment

(regulations, taxes, (regulations, taxes,

distribution, promotion)distribution, promotion)

99

Proposed MP/FP matrixProposed MP/FP matrixMarket Market

PotentialPotential

Financial Financial

PotentialPotential

LowLow

HighHigh

LowLow HighHigh

Low CPR and/or competitive environment unfavorable

Little ATP and/or WTP and/or unfavorable business environment

Ex: Benin, Congo

High CPR and/or favorable competitive environment

High ability to pay and/or WTP and/or favorable business environment

Ex: Morocco, Venezuela

Low CPR and/or competitive environment unfavorable

High ability to pay and/or WTP and/or favorable business environment

Ex: Ukraine

High CPR and/or favorable competitive environment

Little ATP and/or WTP and/or unfavorable business environment

Ex: Nigeria

1010

StatusStatus

TORs developedTORs developed Activities to include:Activities to include:

– Confirm criteria for the classification and Confirm criteria for the classification and revise as necessaryrevise as necessary

– Recommend approach to weighing dataRecommend approach to weighing data– Document the classification system Document the classification system

(methodology and approach)(methodology and approach)– Develop and explain the approach for 8 Develop and explain the approach for 8

countries countries – Set up database in the RHSC websiteSet up database in the RHSC website– Liaise with other WG in the CoalitionLiaise with other WG in the Coalition

1111

Proposed next stepsProposed next steps

Identify consultancy to develop Identify consultancy to develop tool / databasetool / database

Determine source of fundingDetermine source of funding