The Total Marketing Approach (TMA) The Cambodia Condom Experience TMA: what is it? • Three Key Components: 1. Impact: Is the market reaching an increasing % of the at-risk population? 2. Equity: Is market evolution benefiting the poor and vulnerable? 3. Sustainability: Is the market becoming less dependent on subsidies? • Note: “market” includes public sector page 2 Desired TMA Effects Current Private Sector 1. Increased Impact: • Lower vulnerable pop (behavior change) • Market (all sectors) fills greater portion of need 2. Increased Equity: poor and vulnerable reached equally well 3. Increased Sustainability: growing commercial market role -> reduced subsidy required for greater health impact Private Sector Social Marketing Public Sector Public Sector Increasing income/WTP Social Marketing Future TMA: why should we care? • Works toward a reduced public investment • Desires for more effective and efficient segmentation based on ability to pay, access • Avoids duplication and overlap • Results in better program decisions • Requires broadened strategy perspective shift from brand/product to overall category page 4 page 5 Cambodia TMA: Maximize Health impact… …. Through more sustainable markets. 1. Better positioning of brands—based on occasion and price; 2. Building commercial value of Number One condom in order to pull middle class off subsidy 3. Improved Category Promotion make space for commercial brands page 6 Improved Brand Positioning Previous Number One : • To low-middle income, urban and rural sexually active men (aged 18-40) Number One is the trusted, affordable and widely available condom brand of choice that ensures safety against HIV without compromising pleasure. ‘Premium’ Number One: • Rithy uses the premium-quality condom Number One when he wants to impress his partner. page 7 Improved Brand Positioning Previous OK Condom: • To low and middle income sexually active married couples and sweethearts within loving relationships and aged 18-40, OK Condoms are the dual protection condom brand of choice for couples wanting the insurance of planning their family with a modern FP method while having the peace of mind they are protecting themselves from sexually transmitted diseases. Brand Positio n ‘Mass Brand ‘OK Condom: • For Rithy, OK is the smart choice for HIV prevention products because it is the best value for money. page 8 Improved Category Positioning Brand Position Via unbranded BCC condom campaigns that grow the market Condom Category Positioning Core benefit of: Differentiated by: Makes him a real Khmer man 1. Lets him be responsible 2. Lets him enjoy himself page 9 The Positioning “Map” Brand Position Condom Use as a Behavior (60% of promo $) Allows real Khmer men to protect themselves so they can enjoy themselves Number One (15% of promo) - To impress your partner - Premium-quality positioning OK Brand (25% of promo) - For any occasion - Value positioning the smart choice (i.e., quality & affordability) Base Brand OK Condom Variants OK Plus Sachet OK Plus Tube Updated pricing/targeted subsidy % COGS Recovered Consumer Price (per unit) Original “OK” 42% $0.019 New “OK” 104% $0.042 Original “#1” 35% $0.025 New “#1” 146% $0.083 Consumer price % change 121% 233% page 11 How are we Doing? Measuring a TMA to Sustainable Markets Improving Metrics to monitor Programmatic Impact page 12 The Condom Market avg 26.0 mill 25 10,000 Brothel crack downs from 2008 avg sa le avg 16.2 mill 20 15 ok intro 9,000 8,000 7,000 6,000 5,000 2009 #1 2nd price incre ase 10 5 4,000 3,000 2,000 Unique outlets reached Millions Condom sold 30 1,000 0 0 2000 2002 2004 2006 2008 2010 PSI Condom Sales Outlet page 13 Cambodian Condom Market: Value (new brands since 2009: 6 major, 15 minor) Value of Condom Market 4.5 4.0 Value of Market (millions) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2005 2006 2007 OK 2008 Number One 2009 2010 Projection 2011 Private page 14 Cambodia Total Condom Market Volume 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 2004 2005 2006 Private Sector 2007 2008 Public Sector 2009 2010 Projection 2011 PSI Condom page 15 Millions O.K. & #1 Condom volume 30 25 20 15 10 5 - OK No1 page 16 TMA Impact: Condom Use Consistent Condom Use - High Risk Sex 100% 96% 92% 90% 96% 94% 89% 86% 84% 80% 93% 94% 92% 85% 78% 70% 70% 67% 64% 62% 60% 57% 54% 53% 53% 50% 40% 42% 1997 1998 1999 Sex Worker, transactional sex 2001 2003 2007 Male Client, transactional sex 2008 2009 2010 Male Client, Sweetheart page 17 page 18 Condom Coverage of risky sex acts (universe of need) 2007 88% 2008 91% 2009 90% 2010 86% page 19 Impact of Programs In Summary Health Impact: condom use behavior trends level but still high UoN work in progress, but high coverage of high risk sex acts Tracking volumes - consumer uptake - challenging Equity of access: TRaC/MAP data indicate SM condoms still affordable Sustainability: Social Marketing segment of market significantly more sustainable Total Value of Condom Market increasing New players continue to enter (and exit) page 20 How the TMA Lens has made us smarter marketers (1) More effective positioning for our brands and category promotion developed Rationalized investments in P&A branded vs. generic, resulting in… Improved campaigns growing the category (& measurable behavior change) Improved price management appropriately priced brands and more sustainable SM sector page 21 How the TMA Lens has made us smarter marketers (2) Sales probably better indication of Health Impact Identified weaknesses in our S&D Trade Marketing Plan developed for PSI brands Treating Trade as target, better understanding retail Smarter w/outlet management Got us thinking about the fundamentals TMA metrics far better measure of programmatic health than volume sales of past page 22 Persistent Challenges Information Gaps persist UoN, total market volumes / consumer uptake, private sector volumes Differentiating Number One and OK is work in process Donor procured commodities and the 3 year decision page 23