I. THE CASE FOR REGIONAL SOCIAL
MARKETING IN CENTRAL AMERICA
Social Marketing is the commercialization of product that
is deemed beneficial to a given population which in most cases is unaware of
their need, and existing like product in the marketplace, if any, is priced
higher than a majority of the population can afford. Like any commercially available product,
perceived and real benefits need to be presented in a manner which motivate the
purchase, use and repurchase of the product.
Perceived value reinforces purchases of the product and results in an
expanded market for the product.
Pharmaceutical and consumer product companies utilize the
cost efficiency of regional management and marketing operations in Central
America. Media production and staffing
are based on the demands of the marketplace rather than geo-political
borders. Social marketing projects can
benefit by utilizing the same economies of scale used by private sector
businesses to increase the potential for self sustaining operations once
start-up and development funds have been exhausted. Self sustaining as used here implies that the
operation can continue to serve its intended targeted populations even though
the donor for start-up and development activity is no longer able to provide
support.
Central America presents a special opportunity for the
development of an HIV/AIDS prevention Condom Social Marketing project in that
the countries of the region, as a whole, can afford (see Table 1, page 8) to
reach a level of product cost recovery early on while maintaining a focus on
those segments of the population with the greatest need/risk. As the condom market expands and general
economies improve, it is believed that the development of distribution pipeline
compatible products and utilizing a process of cross subsidy while continuing
with reinforcing communication campaigns and a maintained focus on populations
of greatest need, the CSM activity can be sustained for the long term.
A. The Central American AIDS Situation
The state of the epidemic is important to study in that
it presents to the marketer a picture of where the greatest need lies. To understand the need presents the marketer
an opportunity to satisfy the need by addressing those populations so
identified with communication campaigns that will facilitate behavior change
which in this case is to use condoms in every sex act in which there is an
element of risk and to better assess one's personal level of risk.
Guatemala
As in most Central American countries, the
under-reporting of AIDS cases is perceived to be high in Guatemala. 539 cases have been reported as of September,
1994 although it is believed there are more than 36 thousand HIV infected
persons unaware of their status and who continue with their sexual
lifestyles. With a male to female
transmission ratio of 5.5 to 1, the heterosexual community in general is at
risk.
The family planning social marketing group, IPROFASA, has
not targeted the AIDS problem to any degree although the launch of the new,
more expensive condom "SCUDO Oro" which is lubricated with Nonoxinol
9 was carried out within the last year.
This condom is too expensive for the AIDS prevention target populations
of migrant and transit workers, and Nonoxinol 9 is not considered appropriate
for use by commercial sex workers or other high frequency users due to its
drying effect which may cause lesions increasing the risk for HIV and other
STDs.
The only branded condom priced to be affordable to those
in greatest need is the "Panther" condom which is not widely
available in the marketplace. The outer
packaging suggest a uniqueness that, in some locations within the region, no
longer exists from the freely distributed condoms from 100 count boxes.
El Salvador
Half the size of Guatemala in total population, El
Salvador nevertheless has higher HIV infection estimates, with official AIDS
cases numbering 696, reported as of December, 1994 and a projection of 30
thousand more unaware seropositive sexually active individuals in a relatively
densely populated country. Male to
female transmission is reported to be 3.5 to 1.
ADS (Asociacion Demografica Salvadorena) oversees the
condom social marketing operation in El Salvador. They have two AID provided condoms, the
Panther brand (seen with no-logo inner wrapping) and the unbranded but
repackaged Condor condom. In addition, a
plethora of U.S. brands have been placed in the marketplace by ADS through
their own funding. These condoms cost
too much both from the supplier and to the consuming public, compete with one
another and fragment the market. They do
however meet the need of the commercial marketplace to have world class
packaged products even though information on the packs is only in English.
With the Central America Regional Project's assistance in
sourcing equal or better quality condoms at a fraction of their current cost,
ADS could launch a more affordable product with packaging of a more appropriate
cultural and linguistic presentation. It
is believed that the increased promotional and advertising activity, brought
about by the regional AIDS prevention campaign, will enlarge the overall market
for condoms and will enhance the capacity of ADS to sustain their operations
after the withdrawal of USAID support.
Nicaragua
Heterosexual contact is currently the most commonly
reported mode of HIV transmission although, based on the 7.5 to 1 male to
female transmission ratio, it is perceived that a cultural bias distorts the
actual percentage distribution between heterosexual, bisexual, and homosexual
transmission. The epicenter of the
epidemic remains in the capital of the country with the major port areas
showing signs of strong vulnerability.
According to the Nicaragua Ministry of Health (MOH), it is estimated
that there are an estimated 6,000 to 10,000 asymptomatic HIV infected
Nicaraguans. Unaware of their infection
until the final stages of its development, these individuals continue to place
others at risk for many years in an environment where lack of knowledge is
commonplace and condoms are generally inaccessible.
Available epidemiologic data suggest that while HIV/STD
infection continues to be high among groups that engage in traditional
high-risk behavior (e.g. prostitutes and bi/homosexual men), heterosexual
transmission is believed to be the most common mode of transmission, and women
in self perceived monogamous relationships are at great risk.
Honduras
Since the first AIDS case was identified in 1985, the
Honduran MOH has been collecting data on the progress of the epidemic. The cumulative total of 3,920 AIDS cases has
been reported through December 1994. Of
reported cases, 88.5 percent are between the ages of 16 to 45. The male to female ratio is 2:1 and has
remained relatively constant since 1987.
Seventy-seven percent of all reported AIDS cases are attributed to
heterosexual transmission. The majority
of the country's confirmed AIDS cases are from geographical areas surrounding
San Pedro Sula and Tegucigalpa. The 1993
incidence rate per million population is 159.7.
There are believed to be 90,000 asymptomatic HIV positive individuals, many
unaware of their status.
San Pedro Sula, the center of the epidemic, has only 6.4
percent of the country's population and reports over 40 percent of all
confirmed AIDS cases for Honduras. This
makes San Pedro Sula the singlemost important focus for AIDS prevention
activity. Female Commercial Sex Workers
from San Pedro Sula travel to "prostibulos" in the other Central
American countries to work in much the same manner as migrant laborers. This is done for anonymity as well as for
higher earnings.
The largest number of cases reported during the period
from 1985 to 1994 are from the economically disadvantaged. Among these, the most vulnerable are the
urban poor. Forty-five percent of the
cases reported during this period were Laborers (28%) and Housewives
(17%). Women in self perceived monogamous relationships are at
great risk.
Costa Rica
As the least populated Spanish speaking country of the
region, Costa Rica reports a higher number of AIDS cases than does the most
populated, Guatemala, with 661 counted as of 10 September, 1994. Along with the reported 635 cases are an
estimated 20,000 people continuing to infect others unknowingly.
Homosexual activity accounts for a good portion of AIDS
cases in Costa Rica with a reported 13.3 to 1 male to female transmission
ratio. The Instituto Latinoamericano de
Prevencion y Educacion en Salud (ILPES) offers a variety of services to this
hard to reach group and has expressed an interest in becoming involved in CSM
activity. They also help sponsor an AIDS
prevention HOTLINE locally as well as in El Salvador and in Guatemala.
Costa Rica has the most successful social marketing
program (family planning) in all of Latin America. The program has reached a level of
penetration into the market unequaled in the hemisphere at a price that is
accessible to their target audience.
Profamilia has introduced compatible products with a for-profit margin
such as pap smear kits, gloves and various medical instruments into the market
that help cross subsidize their social marketing products allowing them to
maintain their focus on those of greatest need.
Profamilia has not been actively involved in AIDS prevention social
marketing although they have released a condom with Nonoxinol 9 targeted to
youth. Lic. Jorge Lopez has expressed
a strong interest in working within the
region to replicate the success that Profamilia has experienced with family planning CSM to the area of AIDS
prevention.
Panama
863 total AIDS cases have been reported in this country
of around 2.5 million inhabitants, as of September 1994. The 1993 incidence rate of AIDS is 69.1 per
million which places Panama third in the region behind Honduras and
Belize. There have been 716 sexually
transmitted AIDS cases reported between 1984 to 30 April, 1995. The distinction is made here between total
AIDS cases reported and sexually transmitted AIDS cases due to the unusually
high percentage of self-reported transfusion and drug usage as means of HIV
infection by males. The male to female
ratio, taking into account all but perinatal cases, is approximately 5.4 to 1
as reported in official documents, however as in the rest of Central America,
it is believed that cultural bias prohibits a more accurate representation of
homosexual and bisexual transmission rates.
To date there is no active Condom Social Marketing effort
taking place in the country. As in all
of the countries of the region, there is a national program which distributes
condoms. It has been reported that many
of these are "sold" for donations on street corners by local
NGOs. Commercial brands such as
"Rough Rider," "Sultan" and "Prime" are available
in the local market for approximately
US$0.35 each sold in packs of 3 for between B1.05 to B1.15 (B1=US$1).
Belize
Belize also lacks a Condom Social Marketing effort. And although the country is only made up of
approximately 200,000 persons, there have been reported as of September, 1994 a
total of 100 AIDS cases. There are
untold numbers of HIV+ individuals undoubtedly spreading the infection unknowingly. The 1993 annual incidence rate of AIDS per
million population is 129, second in the region only to Honduras.
Migration from war torn countries of the region has
increased the Spanish speaking populace of this predominately English/Creole speaking country. It is believed that the majority of the
Spanish speaking population live near the border of Guatemala in the Livingston
area and could benefit from the social marketing condom distribution channels
found there. However, a creative
"generic" package could be designed which would be appropriate for
all of the regions languages and should be strongly considered. Migratory populations have been listed as a
targeted population for AIDS prevention efforts in nearly all of the countries
under study.
.
Ignoring the rate of growth of AIDS among Central America
populations which are unaware of and/or in denial of personal risk could lead
to disaster by the end of this decade.
Such figures emphasize the need for concerted action towards HIV/AIDS
prevention activities to stem the tide of the epidemic. The governments of Central America,
international donors and NGOs have yet to fully address this issue. Condom use has been suggested almost
uniformly and to date no mechanism has been put into place that can inform,
educate, and motivate correct and consistent condom usage for AIDS
prevention. Condom Social Marketing,
which includes product marketing as well as active communication campaigns, is
the best and perhaps the only type of program that can be successful in this
endeavor.
It is universally recognized that prevention is not only
the cheaper alternative to care, it is also the only way to contain the rapid
spread of the HIV virus in the absence of a cure or vaccine. The previous statement is under the
assumption that mankind is made up of imperfect creatures and that fidelity and
abstinence are more desired goals than current realities. Condoms, the most effective barrier to the
sexual transmission of HIV and STDs, have been scarce in remote areas of the
region for free distribution, and are insufficiently promoted and, in general,
too expensive in the commercial sector.
B. The Need for Affordable/Accessible
Condoms in Central America
For AIDS prevention efforts to succeed, condoms must be
made available, accessible, and affordable, and efforts to promote their
correct and consistent use must be strengthened. Presently, condoms in Central America are
available through three channels, the public health system, the commercial
sector, and through family planning social marketing programs. None of these channels outside of Costa
Rica's PROFAMILIA social marketing program has developed a substantial market
primarily because of lack of or inappropriate promotion/advertising and
education, failure to exploit the potential for market expansion through
non-traditional outlets and cooperative efforts with NGOs working with the same
target populations, and inappropriate pricing.
Public Sector Condoms:
The public sector has been, for the most part, dependent
upon donations from donor agencies and foundations. Health posts cater to people who seek their
services and these are usually for curative, not preventive, reasons. Thus, only a limited percentage of the
population is served. Moreover, condoms
for AIDS prevention need to be available at easily accessible places, usually
within a few steps, and at different times of the evening. Also, since condoms still carry some stigma,
they need to be obtainable in a manner as anonymous as possible, which in many
health posts would be difficult since patients are required to register. Furthermore, supplying the country's condom
needs for free is too expensive a proposition even if the public health system
could physically reach the total population.
It is thus necessary to complement public health efforts in a manner
that the majority of the low income population can avail of, with some element
of cost-recovery that can help offset the cost of condoms. This can be done through supplying low-priced
condoms through aggressive (highly publicized/ promoted) social marketing.
Commercial Condoms:
The private commercial market presently represents only a
minor role in supplying condoms in Central America. Some countries do however have a variety of
high price condoms available for those who can afford to pay. The main hindrances to expanding the condom
market are the overall high retail price, the inaccessible placement in a
limited number of outlets, lack of acceptance in the general population and
little noticed advertising/promotion activity.
In most places, the market is made up of only a few brands of which even
fewer are available on a consistent basis.
Prices can be found as high as US$5.00 per condom. Most condoms are sold in packets of 3 or 12
condoms although some of the low priced condoms are sold in single units from
broken packs, including generic no-logo condoms from 100 count boxes.
C. Social Marketing - An Effective and
Complementary Program for AIDS Prevention in Central America
A unique public service, Social Marketing utilizes the
proven techniques of commercial marketing for high-efficiency, low-cost
delivery of vital social and health needs.
This service essentially applies highly effective private sector
business principles to humanitarian causes.
Successful condom social marketing programs for AIDS
prevention incorporate the following important characteristics:
Distribution/Accessibility/Placement:
Social marketing uses the vast commercial sector to make
products available to the user. Just as
companies use this distribution channel to make mass consumer products (like
Coca Cola, beer, cigarettes, and chewing gum) widely available to the general
population, social marketing adopts this very same principle to reach large
numbers of people in the fastest manner possible and at the least cost.
Product placement is particularly important for condoms,
since users may need to have the product upon short notice. Condoms can be made available in bars,
nightclubs, motels, and other points of sale within easy reach of most
people. Experience has shown that condom
purchasers want convenience and are willing to pay for it rather than seek free
condoms through a public health delivery system. In many cases, obtaining free condoms from
health posts requires having to travel some distance for them, not to mention
cumbersome and possibly embarrassing registration requirements to obtain these
condoms. Further, for every health post,
there are several hundred potential retail outlets and a transaction can be
quick and anonymous.
Even the smallest country of the region has thousands of
potential outlets which could retail condoms.
Presently, condoms can be found in most pharmacies, a few
non-traditional outlets such as motels and sold through the family planning
networks. There is only minor effort
being undertaken to distribute to non-traditional outlets such as those places
a population in greatest need congregates.
The Costa Rica CSM model which targets a family planning audience has
increased condom sales by an average of
40% a year for the last 10 years from 453,000 a year in 1985/86 to
4,516,000 in 1993/94. The program now
claims an approximate 1.3 per capita annual consumption rate, the highest of
any CSM program in the hemisphere.
Supermarket check-out lines have proven to be a point of purchase
preference to approximately 60% of social marketing condom customers in Costa
Rica.
Point of Purchase (POP) merchandising
has for many years been claimed by Business International Corporation,
a leading publisher of International Management and Marketing technical
publications, to be the most important delivery system for consumer products in
Latin America.
Pricing/Affordability:
Social marketing products charge a price to the
user. Users are willing to pay for
convenience (accessibility) and they attach more value to something purchased,
as opposed to something they get for free (perceived value influences use
rates). The price charged for a social
marketed product is used to pay for the normal profit incentives a commercial
retail outlet demands for stocking a product line, the manufacturing cost of
the product and lastly to help defray marketing and overhead expenses. Research and experience have shown that a
purchaser is more apt to use a product if s/he buys it which is the heart of the
social marketing model.
Price is a particularly important issue in Central
America due to low per capita incomes and the reluctance of the population to
use condoms, thereby resulting in a small commercial market for condoms. Taking into account the recommendation on
contraceptive pricing by the Population Crisis Committee and supported by the
Chapman Index (Family Planning World May/June 1992, Vol.2,No.3, p.23), the
ideal price for a condom affordable by the lower income groups in Central
America should be within the range presented in Table 1 on the following page.
Pricing alone will not pull condoms through the
distribution channels. A product that is
not already valued and which is priced too low risks the loss of credibility in
the marketplace. Every effort must be
made to attach to the product those qualities that give the perception of
quality and value while still maintaining a price which is accessible to the
target population(s).
Calculations of per capita GNP and purchasing power are
difficult to agree upon. The method
which would allow for more precise calculation of proper pricing of the social
marketing condom for AIDS prevention would be not to exceed three days earnings
for a years supply of condoms. The
Population Crisis Committee suggests that as a rule, the price for a full
year's protection, which in this case represents 100 condoms,
should not exceed 1% of annual income.
The Chapman Index analyzes pricing and condom per capita sales in
various countries worldwide and shows that sales are highest when the
price for a full year's protection falls between 1 to 3 days national average
wages. Thus, because of high
condom retail prices, the lower income groups comprising the majority of the
Central American populations and who are at increasing risk of HIV infection
are largely left unserved.
Table 1
|
Pricing
Guide
Table
|
PPP
(Purchasing Power Parity)
Current International Dollars as of 1992
|
Per
Capita GDP
|
Approx.
3-day income* (Tgt. Mkt.)
|
Local Currency 3/pack
|
U.S.
Currency per condom
|
|
Recommendations
|
|
Belize
|
|
$ 2,228
|
US$
75
|
BZ$0.45
|
15¢
|
|
Costa Rica
|
$ 5,550
|
$ 1,960
|
|
C
78.75
|
15¢
|
|
El Salvador
|
$ 2,230
|
$ 1,170
|
US$
18
|
C
3.35
|
13¢
|
|
Guatemala
|
$ 3,370
|
$
980
|
US$
22
|
Q
0.75
|
13¢
|
|
Honduras
|
$ 1,970
|
$
580
|
US$
11
|
L
3.00
|
11¢
|
|
Nicaragua
|
$ 2,160
|
$
340
|
US$
15
|
C
2.50
|
11¢
|
|
Panama
|
$ 5,440
|
$ 2,420
|
US$
26
|
B
0.45
|
15¢
|
* The approximate three day
income listed has been determined by a small and incomplete survey of the
informal sector and reported minimum wages.
Further research is warranted in this area to more accurately price the
Social Marketing product.
The price of a social marketed product
does not necessarily relate to the need to recover costs.
Rather, the amount to be charged is determined by the ability of the
consumer to pay.
Product:
For AIDS-prevention social marketing, the condom must
conform to the WHO-approved ISO 4075 or equivalent manufacturing
standards. These condoms should be
attractively packaged and given a brand name.
Package type, quantity per package, design, and brand name must be
subjected to appropriate market research before selection.
External packaging gives the condom more protection from
natural elements as it is channeled through the distribution pipeline. The assigning of a brand name makes the
condom more identifiable and adaptable to marketing techniques. The whole process of packaging and branding
also adds to the perception of quality and reinforces the value attached to the
condom, which is especially important since the user is paying an unaccustomed low
price for the product which could, without careful attention to the
presentation of inner and outer wrappings, lead to a low perception of
quality.
A "Super Brand" or "Umbrella Brand"
can be assigned to a group of similar products making it possible to
standardize media presentations which would cover all products in the
"line" resulting in a lower per product production cost.
Promotion:
Condom promotional messages, much like those used for
medicinal products, have to be tailored to emphasize the benefits to the user
of the product/condom. But first, there
must be a perceived "need." Although this is initially a difficult
task to accomplish, condom social marketing has been applied very successfully
among populations with widely diverging cultural and religious beliefs. Above all, target populations must be exposed
to a means of establishing an appropriate personal risk assessment to identify
and acknowledge a "need" before condom use rates will increase and
before the overall condom market can be expected to expand.
Condoms must be targeted to the general sexually active
population. In addition to this, groups
identified as having higher-risk behavior such as prostitutes and their
clients, transport workers, homosexual/bisexual men, etc., should be targeted
through specific promotional efforts.
Condoms can be promoted in
settings where high-risk behavior is common, such as prostitution centers,
nightclubs, and motels. Promotion teams
have been utilized for AIDS education and safer sex promotion to large clusters
of target populations such as worksites and low-income neighborhoods. It is possible to hire these teams on an as
needed basis if prolonged training is not required. Local NGOs would be a possible employment
pool for this activity.
In sum, although each Central American country is unique
in many ways, there are substantial similarities in social, economic, and
cultural environment as well as epidemiology.
A regionally focused AIDS prevention condom social marketing
intervention program is consistent with private sector marketing and
international management practices. Such
a program will complete the condom servicing needs of the total population of
Central America by putting in place a mechanism to expand condom social
marketing success as only seen in Costa Rica at this time to the rest of the
countries of the region.
II. REGIONAL SOCIAL MARKETING STRATEGIC
DESIGN
A. Statement of Purpose
The objective of a regionwide condom social marketing
program for AIDS-prevention in Central America
should be to take full advantage of cultural and linguistic similarities
that provide opportunities in material production, distribution, and technical assistance
economies of scale which would result in the development of a specific condom
brand for AIDS prevention that would maintain a strict focus on populations of
greatest risk and need; which would expand the overall commercial condom
market; and which would collaborate with existing social marketing programs in
such a way to facilitate their growth and cost recovery efforts.
After a five to seven year period, this program should be able to
sustain its operations, absent of outside donor
support, without compromise to its social objectives.
Technical support should be provided by an entity with
expertise in the region. Commercial/
consumer marketing experience is needed along with a demonstrated commitment to
the social marketing model wherein pricing and product placement for the
targeted low-income market remains a top priority.
A regional model could conceivably be elaborated from the
PROFAMILIA of Costa Rica experience.
This organization should be utilized in a technical capacity in an effort to replicate their successes in
CSM within the region. Their bare
essentials management and marketing structure is cost effective and allows for
prompt response to marketplace demands.
NGOs which express an interest in becoming involved in the AIDS
prevention CSM effort, to augment their own cost recovery activities, should be
included in the chain of distribution and/or utilized for their community
promotion/ distribution capabilities.
This latter activity would have to be negotiated with the local
authorized commercial distributor.
B. Goal and Objectives
The major goal of an AIDS-prevention condom social
marketing project is to reduce the sexual transmission of HIV and other STDs in
the sexually active population of the region by making condoms widely available
and affordable to target consumers and by promoting their consistent/proper
use.
The specific objectives for the regional CSM project are:
1. To generate demand and increase condom
use among the low-income, sexually active population. Sales objectives over a seven-year period
should be no less than 90 to 100 million condoms.
2. To increase condom distribution and
achieve coverage in major urban and peri-urban areas. This coverage needs to include pharmacies,
supermarkets, private health clinics,
motels, bars, prostitution centers, and neighborhood vendors. Emphasis should be made in areas where
low-income people habituate. It is
expected that at the end of a seven year period, no less than 30,000 retail
outlets could be selling the socially marketed condom for AIDS prevention
throughout the region.
3. To achieve a high level of brand
awareness for the social marketing brand and strong consumer recall of the
specific benefits associated with the product.
Consumer studies should demonstrate an 80% level of brand awareness
among the target populations for the project-sponsored condom by the end of the
project either through the Umbrella brand name or product specific name.
4. To increase the awareness and practice
of HIV/STD prevention measures among the general low-income population and
specific target groups. Levels of
awareness of appropriate HIV and STD prevention behavior should reach 80% of
specific target populations by the end of the fifth year.
5. To develop program sustainability
through a process of cross subsidy derived from the creation and
distribution/sale of distribution pipeline compatible non-condom
products, allowing for long-term continuation of operations targeting those in
greatest need beyond the initial funding period.
C. Market Analysis
Low priced condoms are available in much of the region
although not uniformly and where they are available it is often found that they
maintain a significant share of the overall condom market. They have not however increased the demand
for condoms and the overall market for condoms has in most cases remained
stagnant and in some cases declined over recent years. Releasing another low priced condom, without
market expansion, will only serve to further segment the market making it more
difficult for distributors to meet their need for volume sales in order to make
a small profit and justify carrying the line.
This could have negative results by decreasing overall accessibility
even though the low priced condom might gain a significant share of the declining market. Strategic promotional efforts are needed to
avoid this type of situation. Above all,
in the context of the planned regional activity, the release of a new product
should expand the existing condom market.
Of course, with the increased market, the share percentages for
pre-project condoms would potentially be reduced even while total numbers are
increasing.
Many CSM products have been launched over the life cycle
of such activity in Central America without proper market testing. Communication campaigns have been implemented
by CSM projects without target population review/evaluation/testing. Not only has this resulted in wasted effort
without demonstrated increases in brand awareness (in most cases) or product
sales, it has been an expensive dispersion of limited financial resources
delaying the weaning of the project from outside donor support. The lack of success of CSM operations in the
region should strengthen the argument to submit everything in the marketing
process to appropriate testing and analysis within the targeted populations
from product branding and packaging to pricing.
There remains a large underserved market for condoms in Central
America. Appropriate promotion,
packaging, pricing, and distribution will undoubtedly expand the market,
increase individual use rates and save lives.
Income levels have been rising over the last several years as reported
in the World Development Report, 1994 and with these increases, in spite of the
recent 80% increase in latex prices, a new product should be able to break even
if not generate a small profit within the next seven years.
As economies improve, greater demands are placed on the
commercial marketplace to provide world class products at affordable
prices. Conveniences are sought that
were previously overlooked due to lack of disposable resources. This creates an opportunity to develop
additional products on a for profit basis that would be appropriate for the
distribution channels created by the CSM product and provides a mechanism for
cross subsidy.
D. Legal
Issues
Commercially imported products are levied a duty upon
entry into all countries of the region.
The duty can be exempted when the product is assigned to a foundation or
not-for-profit organization. There are
critical administrative and financial requirements that must be met by the
not-for-profit entity to be permitted to raise funds through a commercial
activity for carrying out the objectives of the organization. Registration requirements to establish the
legal presence of the foundation can take from six to nine months and require local
legal representation.
Each product brought into a country also requires a
registration process. Product
registrations will take from six months to a year to complete although, with
the assistance of the locally contracted distributor, the time can be reduced
substantially. Brand names, Trade Marks,
and promotional slogans all require a process of registration.
Laws in each of the Central American countries vary to
some degree and local legal advice is required for the establishment of new
organizations and for the registration of new products. Legal advice is especially important during
the startup process. Employment law must
also be taken into consideration as well as contract law pertaining to
distributor agreements.
III. PROGRAM IMPLEMENTATION STRATEGIES
A. Target Consumers
It is virtually impossible to ascertain how many
individuals in the sexually active population are at risk of HIV infection by
sexual transmission. Therefore, all
sexually active adults should be considered target consumers. However, certain populations can be
identified as having higher-risk behavior such as prostitutes and their
clients, transport workers, mobile traders, and men with male partners. There is reason to believe that multiple
partner relationships are widespread and therefore partners of individuals with
high-risk behaviors are subject to the same considerations as the target
populations mentioned, e.g. housewives.
Promotional efforts should be directed to the sexually
active population with specifically designed efforts to reach the at-risk
groups mentioned above.
B. Formative Research
Formative research needs to be initiated prior to the
introduction of the AIDS prevention socially marketed brand. The brand name,
concept, packaging layout, and pricing should be appropriately tested and
analyzed. Concept tests also need to be
conducted to develop the first generation media campaigns to be released/aired
upon launch of the new brand.
Further tests through focus groups involving concept and
communication tests are essential for the development of the advertising and promotional materials for
post-launch campaigns and for specific promotions to targeted groups.
Note:
As Richard Ott states in his book Creating Demand,©1992,
there is great danger in placing too much weight in what people say they
believe and do. After all it was
perceptual and attitudinal research that led to the launch of the huge failure
of the 1980s, "New" Coke.
People generally answer the way they are "supposed to" or they
can not articulate the subconscious impulses that drive them to buy and use a
product. Observation, analysis, and
deductive reasoning will probably generate better results in designing product presentations than asking
for opinions and preferences, the basis for traditional market research.
Researchers should be selected on the basis of their
ability to identify behavior patterns that will facilitate the design and
launch of the new HIV/AIDS condom.
Research should focus on learning what the "motivators" are
for the target market. Benefits of
product usage can then be expressed in terms relevant to the consumer's
mindset. In the case of a regional
campaign, "motivators" must be identified which are consistent
throughout the region.
Generis Latina is a Guatemalan Market Research
organization believed to be capable of the type of research necessary to create
and launch an HIV/AIDS prevention condom suitable to the regional
marketplace. This activity should not
require longer than 2 to 3 months to perform and analyze if carried out
simultaneously throughout the region.
The initial cost of these services is estimated to be between $65,000
and $75,000.
C. Product
It is strongly suggested that a mechanism be established
that would permit condom imports from low-cost, high quality Asian producers
who are now supplying most of WHO's and other multilateral agencies' condom
needs or otherwise negotiate directly with U.S. manufacturers. The quality standard ISO 4075 should always be followed. Prior to product release, independent tests
should be required from an independent standards laboratory for certification
of quality.
Currently USAID supplied condoms can be found in the C.A.
marketplace and throughout the public sector distribution network. The same government supplied condom, that is
reported to have a low perception of quality with target consumers, is re-packaged
under various brand names throughout Central America potentially keeping the
perceived value of those brands at a low level.
This could possibly be a partial explanation for low sales figures of
the FP CSM condoms.
Packaging/Presentation
At the present time, it is perceived that an upscale
glossy version of generic white packaging with both English and Spanish
instructions would sell well in the Central American market. Should a competitively priced condom be found
"Made in the USA" it would also carry with it a perception of value
which would be beneficial to the products overall image. Any design or packaging idea should be
properly tested/analyzed before release to the public.
An "umbrella brand" will be assigned to the
social marketing product which could be utilized by existing FP CSM projects in
the region on specific products under agreed upon terms that would help expand
the overall market for condoms and help the FP CSM projects generate additional
operating funds. These specially labeled
products would benefit primarily from the increased promotion and advertising
activity carried out by the HIV/AIDS prevention project.
D. Pricing
Setting consumer prices for a socially marketed condom is
a critical aspect of the planning process.
It is imperative that the consumer price be affordable to even the low
income segments of the population.
There are several formulations that have been used to
decide the best price for a socially marketed condom including the per capita
national income, retail prices of mass consumer goods (soft drinks, cigarettes,
chewing gum), costs of local public transport, minimum wages, government
pricing laws and sales taxes, and traditional commercial wholesale and retail
margins. A quick transaction should also
be allowed for by pricing the product at a level in which the customer could
conveniently pay for the product using readily available denominations of
currency whenever possible.
Pricing for Market Penetration
Additional research is needed to appropriately price the
HIV/AIDS prevention condom for the Central American market(s). Optional formulas utilize the per capita
Gross Domestic Product, per capita Purchasing Power Parity, or 3 days of average
wages. The more accurate figure would
seem to be that which is more specific to the target population(s). Research into the informal economy would
identify an average 3-day income of the projects target groups and allow for a
more appropriate pricing structure. The
3-day income figure is utilized to demonstrate the maximum amount which should
be charged for a year's supply of product represented by 100 condoms even
though use rates vary widely.
A suggested pricing structure for the C.A. AIDS
Prevention Condom, utilizing a version of the Chapman Index 3-day income
maximum cost for a year's supply of condoms follows.
*Price/Condom % Margin
in U.S. Currency
Guatemala
To Distributor _.08 30 %
To Retailer _.104 25 %
To Consumer _.13
Nicaragua
To Distributor _.0625 35 %
To Retailer _.0844 30 %
To Consumer _.11
El Salvador
To Distributor _.0725 35 %
To Retailer _.0979 30 %
To Consumer _.13
Costa Rica
To Distributor _.085 35 %
To Retailer _.115 30 %
To Consumer _.15
*Price/Condom % Margin
in U.S. Currency
Honduras
To Distributor _.07 25 %
To Retailer _.0875 25 %
To Consumer
_.11
Panama
To Distributor _.0875
30 %
To Retailer _.1138 30 %
To Consumer _.15
Belize
To Distributor _.085 35 %
To Retailer _.115 30 %
To Consumer _.15
* Prices shown are approximations for
demonstration purposes only and are roughly based on the perceived incomes of
primary target groups.
Margins for the distributor and the commercial trade have
to be kept high enough to motivate them to buy, merchandise and promote the
condom despite the low price relative to other condoms and pharmaceutical
products. This financial incentive is
likewise necessary because wholesalers and retailers will realize substantial
volume and profit only after a period of intensive promotional and advertising
campaigns to generate consumer demand.
This phenomenon has been universally experienced not only for condoms
but for new mass consumer products as well.
It should be noted that these financial incentives are not excessive,
but are normal in these countries for products of this type. These margins will have to be adjusted as the local conditions fluctuate
with changing times. Margins in the
region are typically quoted on a cost plus basis.
E. Distribution
Commodities for the HIV/AIDS CSM project will ideally be
drop-shipped from the manufacturer in 20' containers directly to the
distributors in Guatemala/Belize, Honduras, El Salvador, Costa Rica, Nicaragua,
and Panama. Packaged product shipped in
20' containers to six countries would provide the first year's supply of
condoms for the region. Supplies would
be closely monitored to assure adequate lead time was provided for reorders and
testing so as to avoid stock outs. Distributors would warehouse the product and
pay for it in monthly installments based on sales.
Distributors would utilize their nationwide sales and
distribution networks to place product in traditional outlets throughout their
respective areas of operation.
Non-traditional outlets will be primarily addressed through mayorista
networks, NGOs, and special promotion teams who acquire discounted product
direct from the authorized distributor.
There should be multiple levels of distribution - to the
general commercial market, and to the clusters of specifically targeted
populations engaged in behaviors which place them at great risk.
A national commercial distributor, a distributor or
distributors to non-traditional outlets, a Community Based Distribution
network, and a promotions force
could conceivably be engaged to carry out an ambitious distribution drive.
General Distribution
This can be negotiated with local and/or regional
commercial private sector wholesale distributors which need to have developed a solid
nationwide network of retailers. The
outlets would then be serviced directly by the distributor's professional sales
force.
Some form of supplemental sales/promotions force will be
needed in each country to be trained and supported by the private sector
wholesale distributor, the CSM implementing organization, and/or local/regional
NGOs. At a minimum, a project marketing
coordinator needs to be assigned to the local distributor to motivate and
inform the local sales force as well as keep the regional HQ appraised of
market conditions and new product development opportunities for possible
cross-subsidizing activities. In
addition to normal sales efforts, the marketing coordinators would arrange for
point-of-purchase materials to be set up, distribute informational literature,
and organize educational and promotional sessions to clusters of target
populations wherever they might be gathered.
It is expected that the number of outlets retailing
condoms developed through this process would reach a minimum of 30,000 throughout the region within seven
years.
F. Sales Targets
Over a seven year period from launch date, regional sales
objectives should be between 90 and 100 million condoms. Although this sales objective is ambitious,
it is felt that it is achievable in the light of the following factors:
1. The AIDS epidemic is known throughout
the region. It is also known that
prostitutes, migrant workers and truck drivers move freely within the region
potentially spreading HIV throughout.
Apart from this regional CSM activity, the Governments of the region and
various NGOs are engaged in the fight against the spread of the disease. These efforts combined will bring AIDS
awareness and safer sex behavior information to the population, which is
expected to respond positively once an appropriate personal risk assessment has
been made.
2. The increased demand for condoms could
be met by supplies purchased from the social marketing for AIDS prevention
project by private sector distributors, all of which should be committed to
assuring a stable and regular supply by contract.
In addition to these factors, social marketing efforts
also tend to increase the broader commercial market for condoms.
Revenues from the social marketing effort should only be
used to perpetuate itself. Contracts
need to be specific as to how receipts are to be accounted for.
G. Condom Education and Product Promotion
A wide variety of targeted educational and promotional
activities could be carried out in
collaboration with commercial distributors and local NGOs. This could include condom education sessions
using slides, video shows, and role-playing at gatherings of specific target
groups, such as worksites, prostitute centers, and neighborhood health
centers. Booklets, leaflets and other
educational materials could be developed for distribution at these sessions. Product promotion and sampling can be
undertaken in these sites, and at bars, "casas de citas", and
motels. This activity can be supported
on an as needed basis either through subcontract or as a collaborative effort
with local NGOs.
Point-of-purchase materials such as posters, displays,
informational leaflets, and decals can be utilized wherever the AIDS prevention
social marketing condoms are sold, or have a potential to be sold. Consumer and trade promotional incentives
such as key chains, calendars, T-shirts, etc. should be used in a timely manner
so that there is always something new and exciting connected with the selling
and buying of the social marketing condom.
Samples of the condom should be made available at special
events such as popular music concerts, festivals, athletic events, etc. These should always be accompanied by
educational leaflets stressing AIDS prevention practices and correct condom
usage. As an element of correct condom
usage, the appropriate use of supplemental lubricants should be addressed, as
improper usage may account for the perception of poor quality condoms and
excessive breakage in some parts of the region.
H. Mass Media
Its often said that the fastest and most cost-efficient
method to influence public consciousness and provoke modifications in personal
behavior is the mass media. According to
a survey conducted by Generis Latina, S.A. , it is estimated that 90+% of all
homes in the proposed regional area have radio sets. Virtually everyone has access to one. This presents a great opportunity to
sponsor/produce radionovelas with condom use themes/messages. Television also plays an important role in
shaping public opinion. Television
reaches a majority of the homes in the targeted region of Central America and
should be utilized primarily during special, highly viewed programming since it
is expected that the most television viewers fall outside of our
"low-income" targeted groups and air time in the region is
excessively priced.
The first AIDS CSM project in Zaire demonstrated that
radio and television could effectively reach a significant proportion of the
population. Research conducted to
evaluate the reach and impact of AIDS prevention mass media messages showed a
high level of audience exposure - up to 85% in urban areas. The research also showed a correlation
between the mass media campaign and modification of sexual attitudes and
practices. It is expected that similar
results would be seen in Central America regardless of the acute differences in
the two marketing arenas.
The phenomenon is not new, and has been seen not only in
consumer products, but also in health areas, such as the anti-smoking drive in
the United States and Western Europe.
The implementing entity needs to have demonstrated experience in
developing and implementing mass media campaigns, and in validating the
effectiveness of mass media as an integral part of social marketing
efforts. The mass media campaign can be
supported by local/regional advertising agencies such as McCann-Erickson; Leo
Burnett; Foote, Cone, and Belding and others.
Critical to the design of mass media campaigns would be
attentiveness to social and cultural sensitivities. A range of messages stressing the need for
protection should be developed and tested for effectiveness, credibility, and
acceptability among target consumers, health professionals and policy
makers. By pre-testing a range of
messages, the social marketing group would be able to develop messages that
maximize informational and motivational impact while maintaining close attention
to social and cultural constraints. A
private sector research organization such as Guatemala based GSI/Information
Resources should be utilized for this activity to effectuate the professional
results desired.
Radio and TV programs can be selected according to
audience size and composition. Rather
than gross ratings, target ratings should be considered for these
programs. This would allow specific
messages to be channeled directly to individual target segments, maximizing
media effectiveness. A thorough and
detailed media plan should be developed on an annual basis and reviewed
regularly.
Mass media should be used selectively due to its high
cost. Messages need to be spaced so that
optimum cost effectiveness and public awareness can be achieved. "In your face" public presentations
that incite some, offend the sensibilities of many, and only demonstrate modest
positive effects should be strategic and dynamic and more generic in message,
e.g. "Pide la Sombria para protegerse" ...presentado
como un servicio communitario. Signage
(small media) throughout the region in public toilets including those in bars,
restaurants, motels, and other public places would probably cost less and be
more effective than large public displays.
Small Media
The social marketing program also needs to develop and
distribute print materials to inform, educate, and motivate target populations
to accept/acknowledge their personal risk of HIV infection and thereby modify
their behavior to begin using condoms in all sexual encounters with an element
of risk. Brochures (rotafolios),
pamphlets (afiches), posters (desplegables), folders (trifolios), and picture
story books (fotonovelas) concerning appropriate personal risk assessment as well
as correct and consistent use of condoms for AIDS prevention should be produced
and distributed to health centers, NGOs, and other areas where target
populations may congregate. These
presentations should, as all media, be tested for effectiveness prior to
release to the field and whenever practical include a product sample. Visual media should be periodically changed
to avoid the tendency to blend into the background over long periods of public
exposure.
I. Monitoring and Evaluation
To determine program effectiveness, a monitoring system that will track program
progress relative to measurable objectives and an evaluation component that
will try to assess impact on the epidemic needs to be initiated. These will necessitate the development of a
variety of tracking studies, and an evaluation of the program at midpoint and
at the end of the proposed funding period.
Monitoring Activities
Ongoing monitoring and tracking needs to be conducted to
assess the effectiveness of the program's efforts and to refine elements of the
marketing mix. Specifically, this would
include:
1. Product Inventory Status: number of condoms on order, in the warehouse,
in the distribution pipeline (based on inventory control sheets of major
clients). This must be done on a monthly
basis and will aid the program in determining sales rates and in forecasting
condom needs.
2. Product Sales: number of condoms sold by outlet type, by
geographic area, and average wholesale and retail prices. This must likewise be tracked monthly and
will be used in forecasting, and improving promotional efforts on a regional
basis.
3. Distribution: number of outlets where product can be
purchased, by geographic area, and average inventory levels. This should be undertaken quarterly, and will
help indicate where efforts need to be improved both in communications activity
and in product placement.
4. Media Effectiveness: analysis on the target rating points amassed
by media plan, reach and frequency. This
should be based on a system comparable to the Nielsen system, reviewed
quarterly and used to improve/redirect purchase of radio and TV time.
5. Cost Record: detailed expenditures by spending category
should be maintained and reported monthly to the oversight group in the region. This will allow for a strict monitoring of
expenses, and analysis of the cost of the project.
Project Performance Evaluation
Impact studies on the epidemic are difficult to implement
due to the prolonged period before HIV infections evolve to AIDS, and the
imperfection that most of the world's surveillance systems have in ascertaining
the precise number of HIV infected individuals.
Thus, while AIDS prevention programs may in reality have an impact on
rate reduction of HIV infection, improvements in surveillance systems and
reporting may indicate otherwise. The
alternative is to turn to indicators that can strongly suggest whether
prevention programs have any impact on the epidemic.
WHO/GPA and USAID have developed certain indicators that
have undergone testing in several projects throughout the world. It is suggested that the Central American
AIDS prevention social marketing program use some of these, together with
standard marketing evaluation tools. The
following researches would focus on:
1. Pre-social marketing baseline data on
condom use, HIV/AIDS awareness and safer sex behavior could be compiled from
existing studies. These would be
incorporated into a database with which results of evaluation research could be
compared. Acceptable levels of awareness
would reflect the WHO/GPA/USAID standard of at least two known ways of HIV
protection. This could be done by an
independent local marketing consultant/ organization.
2. A KABP should be conducted at midpoint of
the funding period in the areas of coverage to determine whether the program
has been effective in promoting AIDS prevention practices, awareness, condom
accessibility and affordability, and proper condom use. The data could be used to modify marketing
plans to correct weaknesses or to take advantage of identified
opportunities. This should also be done
by an independent Central American research firm.
3. Intercept studies - interviews of
consumers as they exit outlets after purchasing condoms- should be conducted on
an annual basis by an independent local or regional research firm, or by the
designated advertising agency. This will
indicate the reason for condom purchase, with whom and in what situation the
condom will be used, and whether the purchaser is cognizant of AIDS, STDs,
prevention practices and from where s/he has obtained knowledge of these and
the condom. Additionally, this will give
a very accurate profile of the condom purchaser, his/her age, educational
attainment, occupation, etc. This is one
of the best ways by which it can be determined whether a program has reached
its target audience.
4. Other:
It is suggested that an independent epidemiologist be contracted to
review data on STDs from health posts and prostitute centers. Although it is expected that STD reporting
will increase initially as AIDS prevention campaigns get underway, regular
condom usage over time will show a decline in STDs. A study of STD data from the region should
reveal whether the social marketing program has been effective in communicating
its messages and increasing condom use among the targeted low-income
population, and prostitutes.
5. A final evaluation report utilizing the
information gathered from the aforementioned researches and sources should be
submitted six months after the termination of the funding period. This needs to be conducted by an independent
entity. This report is expected to
reveal the extent of the penetration and effectiveness of the condom social
marketing program vs. its stated objectives; the degree to which the target
consumers have modified their behavior and adopted safe sex practices; the
source of information regarding HIV/AIDS/STDs; a cost-benefit analysis of the
whole program; and future strategies.
Expected Measurable Results
1. Condom sales of 90 to 100 million pieces over seven years.
2. Condom availability in 30,000 retail
outlets in major urban and peri-urban areas regionwide by the end of the
funding period.
3. Sustainability of program that will
continue making low-priced condoms accessible and affordable to low-income
populations in the long-term beyond the funding period.
4. 75% of target populations demonstrate
increased awareness of HIV/STD prevention measures.
Additional Benefits Expected
1. The financial implications of averting
HIV/AIDS cases are enormous. Susan
Foster and Sue Lucas of the Health Policy Unit of the U.S. Department of Public
Health and Policy report findings that show costs for treating AIDS in Latin
America is more closely related to that of the U.S. than other developing
regions at around US$75,000 per annum per patient. (PHP Departmental Publication No 3, 1991 p27)
2. Condom social marketing programs should
expand the total market for condoms by making the general population, even the
high-income groups, more aware of the need for disease prevention. Thus the market for the higher priced
commercial condoms will also grow.
Taking the growth in this sector into account, even more HIV infections
will be averted.
3. Growth in condom demand for both
sectors, commercial and social marketing, should continue beyond the seven year
period indicated, as it rides the momentum of the demand creation program. This will not only mean more future HIV transmissions
averted, but will also alleviate the government's burden of having to supply
vast quantities of free condoms, as the population will be accustomed to
purchasing quality low-cost condoms conveniently.
4. Existing Family Planning Social
Marketing programs will receive some benefit from the increased condom demand
both through the Umbrella brand marking on select products and increased
communication/promotion campaigns.
5. The benefits to the emotional,
psychological and economic well-being of individuals, families and all of society
are incalculable. Human suffering will
be alleviated as individual tragedies are averted, and productivity will be
enhanced.
J. Program Sustainability
A major issue in implementing a social marketing program
is its sustainability. The implementing
organization should set as a priority the continuity of operations beyond the
funding period by imparting its skills and technology on social marketing as
well as commercial product development to its local associates and counterparts
during the funding period.
With particular regard to the condom social marketing
program, the implementing entity needs to pursue the expansion of the social
marketing product line into other distribution network compatible
products. Additions to the product line
should sufficiently cross-subsidize condom purchase, promotion, and placement
without reducing access to the low-income targeted consumer.
Private Sector Participation
It is a naive presumption that business organizations will
pick up the cost of HIV/AIDS prevention
given the current state of awareness in the region of Central America. The initiation of business participation will
require that stockholders of upper middle and higher economic classes have an
understanding that the epidemic is serious enough in their area of operations
to effect their "bottom line," or they identify in some way with the
effort through an expanded social consciousness by personally knowing
individuals that they can relate to who are infected with the virus or in some
way accept/acknowledge their own personal risk from behavioral practices known
to be conduits of infection.
Once the general public begins to understand their risk
and need for prevention, business leaders may be convinced to pick up some of
the costs to develop "Goodwill" in the geographical areas in which
they do business. Whether the business
participation sought is active through direct sponsorship of prevention
activity or passive through donation or permission to access employees on
company time, an effort equal to a "sales job" must be
performed. Sometimes it takes years to
nurture relationships before solicitations will be listened to. Modeling presentations are good alternatives
and can speed up the process by enlisting the support of business associations or governments.
The only sure way to sustain an activity, regardless of
its public or private status, is to generate sufficient funds to offset any and
all costs incurred in the carrying out of that activity. The Central American HIV/AIDS Prevention
Condom Social Marketing project can reach a level of sustainable operations
within the seven years established for its implementation. By the seventh year, it is predicted that
annual condom sales will reach 1.0 per capita or approximately 30 million per
year. 30 million condoms sold at
approximately 13¢ U.S. each will generate a gross income of approximately 4
million dollars with an operating budget of about that same amount. It is further predicted, however, that the economies
of the region will improve and slightly higher prices can be obtained while
maintaining the social marketing pricing model.
1. Line
of Credit/Revolving Fund
EU/KFW
The European Union, represented by Arbeitsgruppe
Gesundheitssystemplanung (Health Systems Planners) consultant Dr. Wolfgang
Weber, has expressed an interest in investigating the possibility of
collaborating with the HIV/AIDS prevention effort in Central America by
establishing a fund for the purchase of commodities. Dr. Weber is also assisting KFW to find
suitable organizations to receive grant funds for programming in the region.
PROFIT
Attached to this report is a copy of a Concept Paper,
dated June 26, 1995, provided by the PROFIT Project proposing the creation of a
Line of Credit for financing the Central American HIV/AIDS Prevention CSM
project's first order of condoms from the manufacturer. PROFIT's guarantee could bridge the gap from
startup until the revolving fund can be established with support of the
European Union and/or KFW or proceeds from the sale of the first years stock.
IPPF/UNFPA
The International Planned Parenthood Federation and the
United Nations Family Planning Agency offer procurement services that include
testing along with the benefit of their volume purchasing pricing structure
from WHO approved vendors. This is
presented as a possible option which should be followed up on by contacting
either Tim McCloud of IPPF, tel: 011-44-71-486-0741 (London) or Chris Hestling
of UNFPA, tel: (212) 297-5000 (New York).
These organizations have been known to provide seed stock for the
creation of revolving funds which would contribute strongly to the organizations
effort to become self sustaining.
2. Cross
Subsidies
To guarantee the attainment of self sufficiency while maintaining social
marketing prices for HIV/AIDS prevention commodities, the development of
distribution network compatible products will be necessary. This activity is consistant with the
successful Profamilia of Costa Rica model which attained a level of sustainability
in 1994.
New products will have to be developed based upon the
needs identified in the marketplace by the Country Marketing Representatives,
the primary Technical Advisor, and the local distributors. Training will be provided to all staff of the
implementing organization and an incentive program will be activated to
facilitate the development of niche products.
Niche products are desired, to maintain a low profile and to minimize
competition with larger, deeper pocket multinational organizations.
CSM is a form of unfair competition that can be
justified, in developing economies, for disease control and family
planning. However, for-profit efforts in
this arena transfer the entire activity into a commercial rather than a social
marketing classification. It is believed
that for-profit commercial activity, to cross subsidize the not-for-profit
AIDS/STD prevention activity, can only be justified through a fully competitive
entry into the marketplace meaning that products other than commodities used in
the social marketing effort should be conservatively evaluated/analyzed for
their financial contribution potential to the project's goal of sustainable
operations by the end of the funding period.
IV. PROJECT MANAGEMENT
The management approach for a Central American CSM
project needs the following characteristics:
·
Commitment
to collaborative and purposeful interaction within FP CSM and AIDS prevention
community.
·
Dedication
to developing sustainable systems through training and utilization of local staff
and sub-contractors.
·
Experienced in management, marketing and sales systems
including new product development.
·
Systematic
application of human, financial, and physical resources to conduct activities
directed at attaining defined and achievable goals.
·
Experience
working with host governments and multilateral and bilateral donor agencies, as
well as the private sector.
Overall, the implementing entity must ensure that a
proper blend of commercial and social concerns are incorporated into project
strategies, and that technical and scientific expertise are applied to
activities in a timely fashion.
The implementing entity should be responsible for
management of all program activities, including financial management and
recruitment of local staff, and the training of associated organizations. The warehousing of product and general
distribution will be undertaken by country specific commercial distributors
under a contract with the regional CSM entity.
The private sector wholesale distributors will be
responsible for nationwide distribution of condoms in traditional outlets. Non-traditional distribution will be
primarily undertaken by mayoristas, associated NGOs, and special promotion teams. A Marketing Coordinator hired by the
regional CSM entity will be placed with each country's distributor to relay
relevant marketing information, motivate the local sales force and operate
local incentive programs for the retail and consumer market. The market coordinators will also investigate
new product development opportunities for possible cross subsidization
activities.
The implementing entity should focus on the following
areas:
·
Implementation
of annual plans;
·
Local
staff recruitment and training and working with regional expertise for research
and advertising;
·
Reporting
and monitoring of program progress;
·
Coordination
with partner government and private organizations;
·
Ensuring
the regular supply of condoms and clearing them through customs;
·
Launching
distribution pipeline compatible products to enhance sustainability efforts.
Documenting activities and achievements through reports
is an integral function of the management process. Periodic reports could include the following
reports:
·
Monthly
financial reports;
·
Monthly
program progress reports;
·
Annual
work plans;
·
Short-term
activity reports.
A. Potential Central American Implementing
Organizations
1. Commercial Distributors/Wholesalers
Locating a wholesale distributor for a social marketing
product is a formidable task. Usually
the reason the product is not prevalent in the marketplace in the first place
is due to the lack of demand, and the necessity to move a large volume of
product before a significant profit can be realized by the
wholesaler/distributor. Condoms also
require temperature controlled warehousing and there is often an outspoken
resistance to their presence in the market by religious leaders. In spite of these facts, many of the
distributors listed in this section have been made aware of the potential for
the demand and of the social need which has resulted in their expressed
interest in carrying a social marketing brand condom for AIDS prevention. Organizations in Nicaragua, Guatemala, Costa
Rica, El Salvador, and Honduras have so spoken.
The companies listed for Panama
have not yet been solicited directly and are placed here for reference
only, as potential distribution sources.
Belize will be covered by the Guatemala distributor.
•
Agencias
J.I. Cohen
13 Calle 3-24, Zona 1 Tel: 502-2/536222
Guatemala City, Guatemala C.A. 01001 Fax: 502-2/29046
Contact:
Mr. J.I. Cohen or Mr. Albert Cohen
Sales:
30 sales persons cover every region of the country
Products: Pharmaceutical, Hospital Supplies, Health
Care Products
•
CEFA
Comercial, S.A.
Apdo. 10725-1000 Tel: 506/232-2020
San Jose, Costa Rica Fax:
506/232-2233
Contact:
Mr. Sergio Altmann
Sales:
Cover all of Costa Rica and are expanding regionally
Products: Pharmaceutical, Hospital
Equipment, Cosmetics, many other
•
FARMEX
Apdo. 8-5840-1000 Tel: 506/225-4422
San Jose, Costa Rica Fax:
506/234-2903
Contact:
Mr. Roberto Castillo
Sales:
Small, aggressive company with country wide coverage
Products: Pharmaceutical, OTC, Cosmetics, etc.
•
FARINTER
Apartado Postal 3183 Tel: 504/332718
Tegucigalpa, D.C., Honduras, C.A. Fax: 504/332732
Contact:
Dr. Karim Faraj
Sales:
National coverage
Products: Pharmaceutical, Alcoholic Beverages,
Cosmetics, others
•
Drogueria
Vides
Ovidio J. Vides & Cia. Ltda
13 Avenida Sur No. 318 y 324
Codigo Postal 01 150 Tel: 503/221-0320
San Salvador, El Salvador, C.A. Fax:
503/221-0113
Contact:
Dr. Jose Roberto Vides
Sales:
National coverage
Products: Pharmaceutical, Cosmetics, etc.
•
Distribudores
Puschendorf
Edificio Puschendorf Km. 61/2 Carretera
Sur Tel: 505/651532
Managua, Nicaragua, C.A. Fax:
505/651222
Contact:
Ms. Patricia Puschendorf
Sales:
National Coverage
Products: Pharmaceutical, OTCs, Cosmetics, etc.
•
CEFA
de Nicaragua, S.A.
Km. 5.5 Carretera Norte
Edificio CEFA (Lafanisa)
Aptado. Postal 1149 Tel: 505/491737
Managua, Nicaragua Fax: 505/490530
Contact:
Mr. Noel Robleto
Sales:
2 years or so in country at time of this report, growing regionally
Products: Regional based Pharmaceutical, OTCs, Consumer
goods, etc.
•
Panama
- Contact: Mr. Alfredo L. Maduro, tel:
507/27-0100; fax: 507/27-2935
These potential distributors for Panama are provided by
Alfredo L. Maduro, former President of the local Chamber of Commerce and
current President of the Panama Heart Association and of Lindo and Maduro,
S.A. and are listed in order of
preference.
1.
Feduro: Contact Felix or Larry
Eduardo Maduro
2.
Agencia D.W. Dickerson: Contact
Enrique Castrillón
3.
Brostella: Contact Miguel
Brostilla
4.
Filipi Motta: Contact the son of
Filipi Motta
5.
Intercifa: Contact Johnny (Juan)
Cannavaggio
6.
Reprico: Contact Manuel Ferrer
7.
Wrigleys/Levonel Distributors:
Contact Keith Klickenhouse
2. Family Planning CSM Distribution
Networks
Family Planning Condom Social Marketing programs may show
a temporary decline in sales if the newly released AIDS prevention condom is
perceived to be of greater value for the price.
Competitive Family Planning CSM projects will, however, benefit in the
long term from an expanded marketplace and a more aware consuming public. Short term benefits will favor those brands
which carry the "Umbrella" mark, which all FP CSM programs will be
permitted to do under certain guidelines as established by the HIV/AIDS CSM
project management and private sector distributor.
•
Profamilia
- ASDECOSTA, S.A.
Apdo. 204-1005
Av. Central, Calle 20 Tel: 011-506/257-1129
San Jose, Costa Rica Fax:
011-506/255-0584
Contact:
Mr. Jorge Lopez
•
IPROFASA
Apdo. Postal 220-A
Carretera Roosevelt KM 14.5
5a Av. 0-75, Zona 2 Mixco Tel: 011-502-2/954827
Guatemala, Central America Fax:
011-502-2/954837
Contact:
Mr. Jorge Mario Ortega
•
Asociación
Demografica Salvadoreña (ADS)
Apdo. Postal 1338
Avenida Olimpica y 65 Av. Sur No. 192 Tel: 011-503/271-4786
San Salvador, El Salvador C. A. Fax:
011-503/224-2270
Contact:
Mr. Jorge Hernandez Isussi
•
ASHONPLAFA
Colonia Alameda No. 2002
Av. Juan Manuel Galvez, Calle Arturo
Lopez Rodezno
Apartado Postal 625
Tegucigalpa, M.D.C. Honduras, C.A. Tel:
011-504/323225
Contact:
Mr. Alejandro Flores Fax: 011-504/325140
3. NGO Networks
Asociación Guatemalteca para la
Prevención y Control del Sida
A.G.P.C.S.
1 Ave. 11-19 Zona 1
Ciudad de Guatemala 01001, Guatemala
Tel: 011-502-2-24581 ext. 201
Tel/Fax: 011-502-2-516531
Contact: Dr. Eduardo Arathoon, Lic.
Annelise Hirschamann
Asociación de Prevención y Ayuda a
Enfermos de Sida-Solidaridad
A.P.A.E.S.
6ta. Ave. 14-33 Zona 1, Edif. Briz.
3er. Nivel, ofic. 301
Tel/Fax:
011-502-2-81-561
Apdo. Postal 1636 Guatemala
Contact: Sr. Mario Andrade
Asociación Prevención contra el Sida
APACSIDA
Apdo 873091
Panamá 7, Panamá
Tel/Fax: 011-507-261593
Contact: Dr. Alejandro Cantón
Fundación Nacional de Prevención,
Educación y Control del Paciente VIH/SIDA
FUNDASIDA
23 Calle Poniente No. 1155 Col. Layco
San Salvador, El Salvador, C.A.
Tel/Fax: 011-503-226-0864
Contact: Dr. Francisco Carrillo
Fraternidad Sampedrana de Lucha contra
El Sida, Honduras
19 Calle, 10 y 11 Aves. S.E. No. 1036
Barrio Palmas
San Pedro Sula, Honduras, C.A.
Tel/Fax: 011-504-58-1313
Contact: Dr. Carlos López Ferrera
Fundación NIMEHUATZIN
Tel: 011-505-278-0028, Contact: Sra. Rita Arauz
Fundación Xochiquetzal
De los bomberos Centrales, calle abajo,
casa #93
Managua, Nicaragua
Apdo. Postal 112
Tel: 011-505-2-662224
Fax: 011-505-2-784904
Contact: Sra. Mary Bolt González
Instituto Latinoamericano de Prevención
y Prevención y Educación en Salud,
ILPES,
Costa Rica
Apartado 561-1002 San José, Costa Rica
Tel: 011-506-253-8662 o 011-506-283-5305
Fax: 011-506-253-7625
4. Commercial Marketing Research
Organizations
GSI/Information Resources
Plaza GSI
5a Av. 6-39, Zona 14 Tel: 011-502/237-3751
Guatemala, Guatemala C.A. Fax:
011-502/237-3764
Contacts: Derek Steele,
Fernando Mazariegos
This is the only full service Central American marketing
research organization with regional capabilities and it is headquartered in
Guatemala City, Guatemala.
5. Advertising Agencies with Regional
Capabilities
McCann Erickson Centroamericana
(Guatemala), S.A.
7a. Av. 5-10, Zona 4
Centro Financiero Torre II 12o Nivel Tel: 011-(502) 2-318037
Guatemala, Central America Fax:
011-(502) 2-347270
Contacts: Jose Fernando Gutierrez,
President, Patricia Barrutia, Account Executive
Foote, Cone & Belding/Guatemala
Av. La Reforma 8-60, Zona 9
Galerias Reforma, 9o Nivel, Torre I Tel: 011-(502) 2-320921
Guatemala, Central America Fax:
011-(502) 2-340509
Contacts: Joaquin Rodriguez, Executive
V.P., Yury Fortin, Creative Director
6. Central
American Printers/Packagers
Talleres Graficos Diaz Paiz
2 Calle 35-70 Zona 11 Tel/Fax: 011-(502) 2-933318,
Guatemala City, Guatemala -930503 and -920249
B.
Project Management Options
The only CSM program in Latin America to reach financial
sustainability while maintaining the social marketing model pricing structure
has been the USAID supported Profamilia of Costa Rica project. The organization or individual selected to
implement the Central America HIV/AIDS prevention CSM project would benefit
greatly from studying this model.
There are several operating structures which could be
utilized to fulfill project objectives.
Should the implementing entity be
on a minimalist scale, perhaps more TA would be required which could be contracted
on an as needed basis after the initial training and startup activities were
completed. This would possibly be required in the areas of communications,
market research, logistics planning, and condom procurement. In many ways the minimalist structure could
be the most effective and cost efficient.
There would be less overhead to cover and faster action could be taken
on rapid changes in the marketplace. A
regional staff consisting of the Project Manager, an Accountant, an Assistant/
Secretary, and perhaps a couple of rotating marketing/ communications interns
(Howard University's International Business Department has such a program as do
many other universities) would be all that would be necessary to coordinate the
regional activity. Along with this
regional staff would be a local coordinator assigned to each distributor in
their respective country of operation.
Communications/ Advertising technical assistance would be solicited on
an as needed basis and passed through the contracted regional advertising
agency(s) when required by local business practices. Evaluation/Monitoring technical assistance
would be contracted through local, regional, and international entities on an
as needed basis. In effect, the
minimalist operation would be comparable to an import company.
Another means of managing a regional CSM activity would
be to funnel the AIDS efforts through existing Family Planning CSM operations
in each of the Central American Countries.
This would temporarily omit Panama, Nicaragua, and Belize since they do
not yet have any social marketing activity in these countries. The operations in Honduras, Guatemala, and El
Salvador have not had a history of success that would warrant additional funds
or an expansion of their existing activities.
There has also been an effort within these organizations to develop
overpriced "premium" brands, which threaten to fragment the market
and erode the confidence of the condom buying public. Too often multiple brand names have been
assigned to the same product and then are sold at varying prices which also
threatens to erode the confidence of the consumer. This "administrative heritage" or
organizational culture would be difficult to overcome. However, if the family planning organizations
were committed to the AIDS prevention effort and the Profamilia of Costa Rica
CSM program were to be used as a model and technical advisor, an umbrella brand
could be launched that could be adapted to selected products in the family
planning line of condoms and benefit from regional communications/advertising
campaigns. Modifications would be needed
in the distribution effort or new contracts would have to be formalized in
order to reach the target markets for AIDS prevention. This relationship with family planning would
also expose the AIDS prevention condom to the same opposition by the church as
contraceptives.
The third mechanism which could be used to implement the
regional condom social marketing activities would be to contract with one of
the large, internationally experienced social marketing institutions. These organizations have in-house expertise
or can acquire the technical expertise needed to successfully implement all of
the activities proposed. They can
provide on-site managers as well as HQ consultancies for specialized
activities. Drawbacks to this mechanism
are the high overheads charged by bureaucratic headquarters, a tendency to
place inexperienced personnel in the field and rely heavily on the experienced
regional or headquarters personnel to backstop the operation. As in many large operations, both public and
private, there is often the failure to listen to the needs of the specific
marketplace but instead import ideas and solutions from inappropriate projects
in their cadre of programs around the world.
The success of using this project management approach lies largely with
the person(s) selected to "run" the project and the amount of
independence they are given in doing so.
This later situation places this mechanism as an expensive and more
bureaucratic version to the minimalist structure presented as option one.
C. Recommended
Local Implementing Organization - Description
The following chart is descriptive of the mechanism in
which the Regional HIV/AIDS Prevention Condom Social Marketing project can be
implemented with the least cost and the greatest opportunity for market success
and project sustainability over the long run.
|
USAID/G-CAP
|
|
Fundación Klee
Under Contract to USAID
|
|
C.A.
Regional HIV/AIDS Prevention CSM
Project
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KFW/Other
|
Technical
Advisor
Acting Project Director
|
|
Guatemala - HQ, and Belize
|
|
|
El Salvador
|
|
|
|
Honduras
|
|
Other Technical Assistance
|
Nicaragua
|
|
|
Panama
|
|
Costa Rica
|
Distributorships would not be an integral part of the
organization but suppliers of services for a fee (sales margins). As part of the service, they would provide
office space and administrative support to local country representatives of the
foundation's CSM project.
The local representatives will coordinate all project
activity in their specific country, provide feedback and new product
development ideas back to Guatemala HQ for cross-subsidy analysis. Local representatives will also provide
incentives to the distributor's sales force and work with local NGOs and other
HIV/AIDS prevention efforts to promote the consistent and correct use of
condoms in all sexual activity with an element of risk.
The Marketing Manager, who will also be the country
representative for Guatemala and Belize, will work closely with the primary
Technical Advisor/Acting Project Director in order to become fully grounded in
the social marketing model prior to taking the reins of the organization at
approximately mid-point in the funding period of the project. The Technical Advisor would play a continued
but decreasing role in the day to day operations of the project until fully
sustainable.
The Technical Advisor will assist in the startup and
initial stages of implementation of the project. This individual will work closely with the
registration process, product design, media campaign development, staffing,
training, the negotiation process with suppliers and distributors, new product
developments for cross-subsidy purposes, and solicitation of external grants
for the creation and expansion of a "revolving fund" for
commodity/product purchases for resale.
D. Management
Team/Project Staffing
1. Regional
Marketing Manager
It is believed that a commercially trained and
experienced marketing person will be more successful in a social marketing
environment after being trained in social marketing principles than a health
profession project manager needing training in commercial marketing. The success of commercial marketing
professionals such as Lic. Jorge Lopez of Costa Rica and Carlos Ferreros of DKT
do Brazil lend strong support to this argument.
Of added benefit is the entrepreneurial
background of these two individuals.
Therefore, the characteristics to be identified in prospective
candidates are the following:
·
Master's
Degree in Business (MIM or MBA)
·
International
Marketing Experience
·
Experience
in Central America
·
Demonstrated
Entrepreneurship/Creativity
·
Business
Training/Teaching Experience
·
Trade
Promotion, Export-Import, and Advertising Experience
·
USAID
Project Experience
·
Social
Marketing Experience or Aptitude
These are the same qualifications desirable of the
primary technical advisor that will guide the organization through the startup
process and be responsible for the training of field representatives. The selected Marketing Manager should
participate in the selection process of the remaining country representatives
and be involved in the negotiation process with the selected distributorships
while being trained in the social marketing model. Once trained, the Marketing Manager could
assist in the training of the remaining personnel. This individual will also perform the duties
of country representative in Guatemala.
The residence of the Marketing Manager should be flexible since it isn't
crucial that s/he live in the headquarters country and the ability and
experience of the individual selected is more important than their
location. Whomever is selected should
expect to travel frequently within the region, especially during the first
several years of activity.
The individual selected to become Marketing Manager would
be groomed to become the overall Project Director, a slot to be held initially
by the primary technical advisor.
2. Country
Representatives
The same general requirements held for the Marketing
Manager would also be desired of the country Marketing Representatives although
to a lesser degree. Jorge Lopez has
expressed his interest in becoming involved in the Regional HIV/AIDS prevention
effort and it is strongly recommended that he represent the implementing
organization in Costa Rica and serve as an internal social marketing consultant
to the other representatives within the region.
This would greatly facilitate the training process. An ideal candidate for the other five
countries would have the following qualifications:
·
Local
Marketing Experience
·
Business
or Liberal Arts Degree
·
Interest
in/Commitment to HIV/AIDS Prevention
·
Creativity/Entrepreneurship
·
Demonstrated
Sales Ability
·
Communications
Skills
Country representatives will be the coordinators of all
project activities in their respective country.
They will insure collaboration with local NGOs, NACPs, and other CSM
programs at a local level and submit reports to the central office on a
predetermined schedule. Additionally,
the representative will observe the marketplace for new product development
opportunities to cross subsidize the social marketing products.
The selected individuals will have office space and
administrative support supplied by the local distributor. The Technical
Advisor/Acting Project Director will have an office with the Fundación.
E. Operations
A foundation is being created in Central America to
promote the health and general welfare of the people of the region. It is being established by one of the oldest
and most respected chain of Pharmacies/Drug Stores in Guatemala, Farmacias
Klee. The foundation has expressed
interest in sponsoring the regional HIV/AIDS CSM project and would provide the
office space and administrative infrastructure necessary for the implementation
of the project. They are committed to
the long term sustainability of the effort and understand the social marketing
model. They have had their attorney
investigate the legalities of selling product via a not-for-profit foundation
and have been assured that they can do so to maintain and expand (sustain)
their operations. The only restriction
is that the monies generated by the sale of product must remain within the
organization to carry out its programming.
A letter concerning Funcación Klee from one of its founders and
representative of Farmacias Klee is attached to this report along with a
statement from their attorney.
The foundation would have management oversight of the CSM
project and would place within each country of operation a representative that
would oversee the distribution and marketing of the HIV/AIDS prevention
condom. This individual is described
throughout this document in several ways.
S/he is mentioned as Marketing/Project Coordinator, Marketing
Representative, and Foundation Representative.
These should all be considered as the same individual in each country of
operation except for Belize which will be covered by the Marketing
Representative/ Guatemala. All Marketing
Representatives will report to the Marketing Manager/Guatemala. The foundation will receive duty free status
thereby saving approximately 5% duty and other charges normally paid by
importing companies. The tax free status
of the foundation will contribute towards its goal of sustainable operations
within the time limitations of the project.
Fundación Klee, even in its conceptual state, is thus far the only local
organization willing, capable, and appropriate to implement the Regional CSM
project and expect the results desired in short term sustainability, market
development, management efficiency, and commitment to maintaining the social
marketing pricing structure for HIV/AIDS prevention commodities even after
donor support has been withdrawn.
The HIV/AIDS Prevention CSM Project would become an
integral part of the foundation, under contract to USAID/G-CAP. The primary Technical Advisor selected to
oversee the startup, training and initial monitoring of the project would
function as a Project Director and remain on-site for a minimum of 18 months
after the official launch date of the HIV/AIDS CSM condom. This individual would continue to be involved
in the project on an as needed basis to troubleshoot problems, assist in the
development of new products to cross-subsidize the CSM condom, and generally
monitor the progress of the project. It
is projected that the Marketing Manager will move into the role of CSM Project
Director once the primary Technical Advisor in no longer needed on a full time
basis.
Each country's private sector wholesale distributor would
be responsible for warehousing and selling to the general commercial sector,
primarily traditional wholesale outlets.
For this they will provide their national sales force, their nationwide
wholesale distribution network, and their warehousing management and
facilities. The cost of this service is
included in the distributor margin of various percentages as demonstrated
previously, which is standard in the country of activity and is thus excluded
from direct program costs.
It is a customary practice for distributors in Central
America to provide office space for representatives of the product lines they
carry. These representatives coordinate
promotional activity and keep local sales personnel motivated and educated on
the benefits of their particular product(s).
They are also responsible for feeding information on the local market
conditions to their regional manager.
This is the management structure utilized by many private sector organizations
and it is consistent with the structure presented as option one in paragraph
IV.B.
V. TECHNICAL ASSISTANCE
A. Startup
1. Contract
Negotiations
Procurement, distribution, and personnel negotiations
must take place prior to launching the new HIV/AIDS prevention condom. Most of the potential distributors have been
identified and have been presented in Paragraph IV.A. The organizations identified in all the
countries but Panama have agreed in principle to carrying the CSM condom. Long delays between talks with these
organizations may erode confidence in the project and new distributorships will
need to be identified. This should not
present a problem for the near term since the majority of the organizations
have restated their interest within the last several months and others have
been identified which may present equal or better possibilities.
Final negotiations can only take place after project funding
has been approved. The Technical Advisor
can initiate discussions but foundation representation will be needed to sign
any agreements. The Technical Advisor
could, however, be issued a limited power of attorney to negotiate on behalf of
the foundation along with their legal representation. This process would also be necessary for
procurement and staffing negotiations.
2. Registrations
The implementing entity must be registered in each of the
countries in which condoms will be placed on the market. The registration process could be carried out
prior to the selection of local personnel through a local attorney. Products and brand names require a separate
registration in each of the countries.
Costs associated with the entire registration process amount to 2 to 3
thousand dollars for each country. The
time required for this process is approximately 3 to 6 months and can run
concurrently.
B. Training
Training will be initiated with the hiring of the
marketing manager. The newly appointed
marketing manager would benefit greatly by being assigned to Costa Rica for a
month of CSM orientation by Lic. Jorge Lopez.
Lic. Lopez could serve as both country representative for Costa Rica and
as project training coordinator. All
country representatives would benefit from a similar process to get a clear
understanding of CSM/Distributor relations and a strong foundation in the
principles of Social Marketing by the projects Technical Advisor and Lic.
Lopez. Training will be an ongoing
process to continually improve skills within the organization.
C. Monitoring/Evaluation
1. Local/Regional
Local organizations will be utilized whenever available
for project evaluations/monitoring. The
types of activity that might be required of personnel outside of the project
include the following which have been elaborated on elsewhere in this report:
·
Product
Inventory Status
·
Product
Sales Information
·
Distribution
Network Reach
·
Media
Effectiveness Analysis
·
Pre-Social
Marketing Baseline Data
·
A
KABP at Midpoint of the Funding Period
·
Intercept
Studies
·
A
Study of STD Data - Regionally
·
A
Final Evaluation Report
2. International
Any of the above mentioned activities or others desired
by donor organizations which can not be addressed by local organizations will
be contracted for on the world market.
Startup activities and follow-up monitoring is expected to be performed
by an international technical advisor/ consultant experienced in social
marketing as described elsewhere in this report.
VI. PROCUREMENT
The procurement process should begin as soon as possible
after the Marketing Manager has been identified and selected. Lead time for the delivery of condoms could
take as long as nine months. Prior to
procurement, design and packaging requirements should be generally known even
though a local organization may be chosen at a later date to package imported
bulk product.
A. Condoms
Purchasing condoms for the regional CSM project would
require that the importer (implementing entity/organization) have consistent
line of credit available or a revolving
fund which would permit them to take advantage of the lower priced world market
condoms, primarily originating in Malaysia.
Some suggested suppliers along with their approximate costs per gross
(CIF) as of May, 1995 follow.
1. Dongkuk
Rubber Industries Sdn. Bhd.
7th Floor, Wisma Manila
3 Penang Street, 10400 Penang, Malaysia
Tel:
011-60-4-810808; FAX:
011-60-4-810999
Contact:
C.S. Park, Managing Director Price: 3-Pack US$ 6.00 gross CIF
2. Suretex
Ltd.
Gee Pee house, 71 Sap Road, Sipraya,
Bangrak
Bangkok 10500, Thailand
Tel: 011-662-234-0016; FAX: 011-662-237-2607
Contact:
Mr. M.V. Subba Rao, Vice President Price: 3-Pack US$ 5.45 gross CIF
3. Medilatex
Sdn Bhd
Lot PTB 500, Kawasan Perindustrian PKT 2
Bandar Tenggara, Kulai, Johore, Malaysia
Tel:
011-607-896-1888; FAX:
011-607-896-1055
Contact:
Mr. Jeffrey Heah, Executive Director Price: 3-Pack US$ 5.25 gross CIF
4. Sagami
Industries (Malaysia) Sdn Bhd
No. 2, Jalan Kilang Tiga
Jelapang Light Industrial Estate
30750 Ipoh, Perak, Malaysia Price: 3-Pack
US$ 8.25 gross CIF
Contact:
Mr. T. Ushiama, Director/General Manager
5. Mbf
Personal Care Sdn Bhd
Malaysia
FAX:
011-507-599-3797
Contact:
Mr. Rony Lim, General Manager Price: 3-Pack US$ 6.25 gross CIF
These prices include packaging. The range of prices per unit, branded,
packaged and delivered to the local port is approximately 4 to 7 cents
U.S. All of these manufacturers have
consistently met ISO 4074 quality standards.
For bulk foil strips of condoms, the cost would be approximately US$1.50
less expensive per gross and three times the quantity can be shipped per
container without an increase in transportation cost.
ISO 4075 Quality Control
The standard demanded of condoms by USAID as well as
other international donor organizations are those of ISO 4075. Each manufacturer electronically test their
product before releasing it to the public for sale. Some manufacturers, such as Sagami Industries
of Malaysia, additionally perform Air Bursting, Tensile, Aging, and other tests
to guarantee that the product will pass independent testing laboratory
inspection.
Independent laboratory testing is recommended by
WHO. These test can cost up to 15-20% of
FOB prices and can delay the delivery of product significantly. The process of ordering and testing can take
from 6 to 9 months depending upon the quantity of the order. Various organizations provide testing such as
PATH in Seattle, WA and FHI in Raleigh-Durham, NC. As mentioned elsewhere in this report, IPPF
and UNFPA include testing in their procurement services. See attached description of the production
process provided by Sagami Industries of Malaysia. (FHI/North Carolina Testing Laboratory letter
attached)
B. Promotional
Material/Advertising Services
All promotional material such as posters, leaflets, etc.
can be procured in the region from local suppliers. Production of radio and television campaign
material can likewise be prepared in the region through local advertising
agencies or independent sources.
Two advertising agencies with operations or special
collaborative relationships throughout the region follow in their order of
preference:
Foote, Cone & Belding/Guatemala
(FCB)
Av. La Reforma 8-60, Zona 9
Galerías Reforma, 9o. Nivel, Torre 1
(Apdo. Postal 1993)
Guatemala City, Guatemala
Tel: 011-502-2-320921
Fax: 011-502-2-340509
Contact:
Sr. Joaquín Rodriguez, Exec. Vice Presidente
McCann-Erickson Centroamericana
(Guatemala), S.A.
7a. Av. 5-10, Zona 4
Centro Financiero Torre II 12o. Nivel
(Apdo. Postal 390)
Guatemala City, Guatemala
Tel: 011-502-2-318037
Fax: 011-502-2-347270
Contact: Sr. Jose Fernando Gutierrez M.,
Presidente
Srta. Patricia Barrutia, Ejecutiva de Cuentas
