DKT
MOZAMBIQUE
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Population
Urban Population
Per Capita PPP (US$)
0 - 14 years
Life Expectancy F/M
Adult Literacy F/M
Infant Mortality / 1,000
Maternal Mortality / 100,000
TFR
Annual Population Increase (%)
Contraceptive Use: (%)
Modern Methods
Unmet need
HIV/AIDS Deaths (Annual)
Total HIV Cases 15-49 yr (2009)
HIV prevalence 15-49 yr (2009)
Living below $ 2 / Day
22,950,000
38%
900
46%
52/51
32/63
79
550
5.5
2.4
12
18
74,0001
1.4 million
11.5%
70%
Globally, 7th highest number of deaths
1
Introduction:
Almost five centuries as a Portuguese colony came to a close with independence in 1975.
Large-scale emigration by whites, economic dependence on South Africa, a severe drought,
and a prolonged civil war hindered the country's development until the mid 1990's. The ruling
Front for the Liberation of Mozambique (FRELIMO) party formally abandoned Marxism in
1989, and a new constitution the following year provided for multiparty elections and a free
market economy. A UN-negotiated peace agreement between FRELIMO and rebel
Mozambique National Resistance (RENAMO) forces ended the fighting in 1992. In
December 2004, Mozambique underwent a delicate transition as Joaquim CHISSANO
stepped down after 18 years in office. His elected successor, Armando Emilio GUEBUZA,
promised to continue the sound economic policies that have encouraged foreign investment.
Mozambique has seen very strong economic growth since the end of the civil war largely due
to post-conflict reconstruction.
Despite having one of the world’s highest economic growth rates, nearly 70% of
Mozambique’s population lives in extreme poverty, and the access to health and education
services are limited. While the national literacy rate is 45% it is only a dismal 32% among
females.
Much of the health infrastructure was destroyed during the long civil war and less than 50%
of the population currently lives within 5 km of fixed health services. The country also has a
severe shortage of trained professionals, particularly in the health sector. The majority of
health sector expenditures are financed by external sources, with USAID currently providing
the largest share of commodities for the sector. i.e. USG and UNFPA provide 100% of
contraceptives to GoM.
The latest national HIV prevalence rate is 11.5 % (2010), placing Mozambique in the ten
most affected countries. While the latest prevalence rate is lower than previous year’s reports,
the new survey was conducted using a different method from previous surveys. The latest
survey utilized antenatal sentinel sites that will enable regular updates of prevalence data.
The major causes of mortality in adults are tuberculoses and AIDS. Maternal mortality is
estimated at 550 maternal deaths per 100,000 live births (DHS 2009).
Progress in establishing a rural primary health care network and management system is
limited by various factors, including internal capacity, high rates of infectious disease and
malnutrition; growing prevalence of HIV/AIDS; inadequate access to potable water;
Mozambique has one of the most severe health personnel shortages in the world2.
There is increased consensus that a key driver of Mozambique’s HIV/AIDS epidemic is the
pervasive practice of multiple and concurrent partnerships. Other drivers are low rates of
condom use with non-regular partners (33.1 % for men and 23.5% for women) and low rates
of condom use were also reported between “regular” partners. Data from the UNAIDS 2008
Mozambique Modes of Transmission Study revealed that 48% of new infections occur
among adults reporting regular-partner heterosexual sex with an additional 18% of new
infections due to casual heterosexual sex. Mozambique’s HIV/AIDS prevalence is one of the
few remaining countries in the world which continues to increase.
2
World Health Report 2006: Working Together for Health. World Health Organization, 2006.
2
Planned Sales: 2012
Products
IUDs
Safe Load 380 A
Sleek 375
Implants
Misoprostol3
Oral Contraceptives4 (Coc, Pop, Diana-35)
Emergency Contraceptives
Injectable
MVA5
Prudence6
Fiesta7
Purchase
Price
2012
Franchise Private
Clinics
Sector
$0.85
$0.75
$9.47
$0.27
$0.29
$0.58
$0.68
$22.60
$5.93-7.02
$4.15
$1.10
$1.10
$1.10
$0.28
$0.33
$0.66
$0.77
$28.17
$12.41
$6.07
$5.50
$6.25
$10.75
$0.28
$0.33
$0.66
$0.77
$28.17
$12.41
$6.07
CYPs
CYPs
33,000
11,000
60,000
15,750
9,858
3,055
16,250
9,600
50,000
27,500
236,013
Manufacture
Prudence
Fiesta
NRS
TNR
Oralcon-F
(OC)
Pregnon
(EC)
Isovent
(Miso)
IUD
Zarin
(Implant)
Maputo
Health Care8
MHC
Enaf (Inj)
Progestyn
(OC)
Microlenyn
(OC)
Sekure (EC)
MVA
Total
Ponds
Ponds
2012 Target
CYP
% CYP Total
5,000,000
2,750,000
50,000
27,500
21%
14%
18,000
1,286
1%
7,500
833
0%
120,000
8,000
15,750
44,000
6%
18%
15,000
60,000
25%
65,000
16,250
7%
20,000
1,429
1%
100,000
20,000
150
7,143
2,222
9,600
236,013
3%
1%
4%
MHC
Pregna
Sino II
Ponds
Ponds
Ipas
3
tablets
Cycle
5
Kit of syringe and 8 cannulae
6
Gross
7
Gross
8
Mozambican distributor
4
3
Context and Analysis
Keys issues: HIV/AIDs, couple’s limited knowledge/understanding of FP, 12%
modern methods, high maternal mortality, lack of trained healthcare personnel, and
poorly developed small to medium sized businesses.
Activities
Prudence
Develop new premium Prudence SKU (Delay) to increase product segmentation and
higher margin product.
Community Awareness and partnerships
Development of FP knowledge is vital to increasing contraceptive prevalence in
Mozambique. A mixture of partnership, direct implementation, and radio programs
will be employed to develop the knowledge base. Teams will work in close
coordination with franchise clinics.
Medical Staff Training
To maintain training quality, follow up of 2010/11 trainees will continue.
Injectables
DKT will work with VSI and Pathfinder on a pilot study to evaluate distribution and
use of (DMPA) at the community level in Mozambique. The intent of the study is to
affect MoH policy decisions to allow community based persons to avail DMPA
directly to the community. DKT will be providing DMPA for the study and
participating in the development of community education.
Pharmaceutical Product Registration
DKT will submit two products for registration to the MoH in 2012.
Mifepristone/Misoprostol combo package and Misoprostol, both from Acme
Formulations, Lda.
The approval of DKT’s own Misoprostol brand will minimize product stockouts,
reduce COGs and packaging has been developed under the Íntimo umbrella brand.
4
Sales and Marketing Strategies: 2012
Corporate Business Strategies
1. Strengthen organizational
capability by building the right
competencies and culture.
2. GROWTH. Grow the business
through reach expansion, entry into
new channels and new business
development.
Priorities and Action Plans
1. Integrate processes and systems and improve
internal communication.
2. Ensure that Organization Quality Indicators are
in place: Measures/Scorecard, Performance Review
and Assessment.
3. Institutionalize rewards and recognition program
to increase employee motivation and help retain
high-performers.
4. Inculcate organizational culture of performance,
responsibility and integrity.
1. Achieve desired coverage reach and
development for all product categories nationwide.
2. Strengthen relationships with key influencers
and community gatekeepers.
5
Condoms
Background:
While condom sales increased 87% over 2011, sales were only 59% of 2011 targets.
The introduction of a new value for money brand, Fiesta, did not perform as expected
and sales were only 44% of 2011 targets. As a value for money brand, Fiesta is a
subsidized product and DKT’s only source of funds for condoms is DKT International
and sales revenue. Due to volume and a margin of 38%, Prudence generates
approximately 55% of sales revenue and this is expected to remain the same in 2012.
Strategies
Increased efficiencies of sales teams through training and planning (Barracas)
Increased volumes through targeted promotional campaigns
(Pharmacies/Convenience stores)
Develop new premium Prudence SKU (Release late 2012)
Brand
Prudence
Key Strategies
1. Continue to enhance the
brand image as sexy, fun
and increases sexual
pleasure
2. Become a primary source of
sexual health information
for youth (16 – 25)
3. Expand distribution
coverage in all
establishments
4. Market Segmentation
6
Key Activities
1. Continue advertising on Facebook
and maintaining consumer
attention
2. (FB) Announcing product
promotions & sale locations
3. Create local activities at bars &
high end discothèques to induce
trial, increase brand awareness,
and stimulate demand
4. Initiate merchandising contests in
key trade outlets
5. Identify additional sites to paint
outdoor “murals”
1. (FB) Continue offering sexual
health tips, challenging myths and
sexual misconceptions
2. Cross linkages between Íntimo and
Prudence Facebook pages
1. Increase number of distributors as
well as sales volumes
2. Increase number of POS
3. Stagger sales teams working hrs to
respond to night time only
establishments
1. Conduct marketing research
2. Develop before end of 2012
one new premium market
SKU
3. Based upon results of 1),
develop specific segmentation
strategy for Prudence SKUs
with differential SKU pricing
Fiesta
1. Continue to enhance the
brand image as an
affordable quality brand
1. (FB) Announcing product
promotions & sale locations
2. Identify additional sites to paint
outdoor “murals”
2. Become a primary source of 1. (FB) Continue offering sexual
sexual health information
health tips, challenging myths and
for youth (16 – 25)
sexual misconceptions
2. Cross linkages between Íntimo
and Prudence Facebook pages
3. Expand distribution
1. Increase number of distributors as
coverage in all
well as sales volumes
establishments, emphasizing 2. Increase number of POS
rural locations
Pricing Structure
2012
NRS
Prudence
New
SKU
Cost of
≈$6.50
9
Goods
DKT Selling
$26.67
to Retailer
Suggested
$44.44
Retail Price
Suggested10
$0.93
Retail Price
9
NRS
Prudence
Morango
NRS
Prudence
Maracuja
NRS
Prudence
Sensual
NRS
TNR
Prudence Fiesta
Classico
$7.02
$7.02
$6.59
$5.93
$4.15
$12.41
$12.41
$12.41
$12.41
$6.07
$17.78
$17.78
$17.78
$17.78
$8.89
$0.37
$0.37
$0.37
$0.37
$0.19
Gross (144 pieces)
One package of 3 pieces
10
7
Íntimo Umbrella Brand
Background
During 2011, products marketed and sold under the Intimo brand were IUD (safeload)
and Implants(Sino II). The CoC, PoP, EC, and injectable were approved with Intimo
brand on packaging, no products were purchased in 2011. 99% of IUD market is
provided free through the public sector as well as to private clinics. Until the
approval of DKT’s Implant in 2011, no Implant had been approved for sale in
Mozambique.
In late 2010, DKT Mozambique began franchise clinics in Maputo, where 85% of
Implant and IUDs were sold during 2011.
Strategies
Establish Íntimo as The Family Planning Brand
Continue creating interaction and noise on Facebook page expanding reach
Expand distribution and number of POS
Brand
Íntimo
Key Strategies
1. Introduce new product
lines
Key Activities
1. Launch new products
(Intimo: OC/EC/Inj)
2. Start discussions of new
products on FB
2. Continue to enhance the
1. (FB) Announcing product
brand image as an
quality, availability,
affordable quality brand
promotions & sale
locations
2. (FB) Linking sales
locations with special
product promotions
3. Become a primary source
1. Start product specific
of sexual health
discussions (Benefits,
information for youth (16
Myths)
– 25)
2. (FB) Continue offering
sexual health tips,
challenging myths and
sexual misconceptions
3. Cross linkages between
Íntimo and
Prudence/Fiesta Facebook
pages
4 Expand distribution
1. Pharmacies
coverage in all
2. Private Clinics
establishments
3. Franchise Clinics
5 Use mass media materials 1. Conduct basic survey to
identify product
consumers
2. Develop product specific
media material
3. TVC if approval is
obtained
8
Franchise Clinics
Background
In late 2010, DKT Mozambique began franchise clinics in Maputo. None of the
clinics were offering any family planning services. With the addition of Implants in
June, sales increased substantially. Primary activities were the training of medical
staff, provision of basic informational material to clinics and community educators,
and sale of IUDs and Implants at subsidized prices.
Strategy
Identify and begin activities with new clinics
Continue creating interaction and noise on Facebook page expanding reach
Expand available services at clinics
Brand
Íntimo:
IUD/Implant/OC/
EC/Injectable/
Misoprostol
Key Strategies
1. Expand available services
2. Continue to enhance the
brand image as an
affordable quality brand
3. Become a primary source of
sexual health information
for youth (16 – 25)
4. Increase knowledge of FP
methods
5. Explore key partnership
9
Key Activities
1. Launch new products (Intimo:
OC/EC/Inj)
2. Nurses sell products directly to
clients
3. Identify and open new franchise
clinics
4. New Ponds products, detail
medical staff
1. Continue advertising on Facebook
and maintaining consumer
attention
2. (FB) Announcing product
promotions & sale locations
3. Detailing medical personnel
1. (FB) Continue offering sexual
health tips, challenging myths and
sexual misconceptions
2. Cross linkages between Íntimo
and Prudence & Fiesta Facebook
pages
1. Continue community based FP
educational activities
2. Implant and IUD insertion training
when required
3. Ensure availability of educational
material at clinics and with
educational teams
1. Continue dialogue with PSI
Oral Contraceptives, Injectables, and Emergency Contraceptives
Background
While registering DKT products, CoC, EC and Misoprostol were sourced through a
local Mozambican pharmaceutical distributor and sold nationwide. While COGs
were high, this provided significant experience in detailing medical staff, selling to
pharmacies, and private clinics.
Strategy
Expand distribution and number of POS
Leverage Intimo’s price and quality advantage
Establish Íntimo products as The Family Planning Brand
10
Oral Contraceptives Pills
Brand
Key Strategies
Oralcon-F
1. Improve distribution
coverage
Microlenyn (Íntimo)
Progestyn (Íntimo)
Key Activities
1. Route maps are developed
2. Efficient detailing teams are retrained and deployed
2. Develop consumer
1. Conduct basic client product
profile
profile at POS
1. Product introduction and 1. Product Launch in Maputo, Beira,
launch
& Nampula
2. Detail doctors & nurses
2. Leverage the brand’s
1. Detail doctors and nurses at public
competitive pricing
health points
point & quality
2. Target users who are dependent
upon free contraceptive supply
and provide them with affordable
and better quality option
3. Expand distribution
1. Identify potential distributors:
coverage
Beira & Nampula
2. Efficient detailing teams are
trained & deployed
1. Product introduction and 1. Product Launch in Maputo, Beira,
launch
& Nampula
2. Develop detailing cards outlining
quality and pricing advantages
3. Detail doctors & nurses
2. Leverage the brand’s
1. Detail pharmacists, doctors and
competitive pricing
nurses at public health points
point & quality
2. Target users who are dependent
upon free contraceptive supply
and provide them with affordable
and better quality option
3. Focus on direct to
1. Conduct clinic based and/or
consumer education
community based education
activities
Pricing Structure
2012
MHC
Oralcon-F
(CoC)
Cost of Goods
$.70
DKT Selling to
Distributor
Distributor
$.74
selling to Retailer
Suggested Retail $1.43
Price
Íntimo
Microlenyn
(CoC)
$.29
$.315
Íntimo
Progestyn
(PoP)
$.42
$.45
Bayer
Microgynon
(CoC)
N/A
N/A
$.33
$.48
N/A
$.58
$.85
$8.15
11
Injectables
Brand
Enaf-150 (Íntimo)
Key Strategies
Key Activities
1. Product introduction and 1. Product Launch in Maputo, Beira,
launch
& Nampula
2. Develop detailing cards outlining
quality and pricing advantages
3. Detail doctors & nurses
2. Leverage the brand’s
1. Detail pharmacists, doctors and
competitive pricing
nurses at public health points
point & quality
2. Target users who are dependent
upon free contraceptive supply
and provide them with affordable
and better quality option (link to
Franchise Clinics)
3. Expand distribution
1. Efficient detailing teams are
coverage
trained & deployed
2. Create marketing collaterals that
capture consumers’ interest
4. Expand availability of
1. Work jointly with VSI and
injectables at
Pathfinder on “research” to effect
community level
MoH policy modification to allow
TBAs to provide injectables in
communities
Pricing Structure
2012
MHC
Nothing for
sale
Cost of Goods
DKT Selling to
Distributor
Distributor
selling to Retailer
Suggested Retail
Price
Íntimo
Enaf-150
$.68
$.71
$.77
$1.36
$40
Emergency Contraceptive
Brand
Key Strategies
Pregnon
1. Improve distribution
coverage
Sekure (Íntimo)
??
??
Key Activities
1. Route maps are developed
2. Efficient detailing teams are
deployed
2. Develop consumer
1. Conduct basic client product
profile
profile at POS
1. Product introduction and 1. Product Launch in Maputo, Beira,
launch
& Nampula
2. Detail doctors & nurses
2. Leverage the brand’s
1. Detail pharmacists, doctors and
competitive pricing
nurses at public health points
12
point & quality
3. Improve distribution
coverage and trade
visibility
4. Increase retailer and
consumer product
knowledge
Pricing Structure
2012
MHC
Pregnon
Cost of Goods
$2.22
DKT Selling to
Distributor
Distributor
$2.44
selling to Retailer
Suggested Retail $4.30
Price
Íntimo
Sekure
$.58
$.61
$.66
$1.16
13
1. Create marketing collaterals that
capture consumers’ interest
1. Conduct community based
education activities
2. Target pharmacists to dispel
myths and increase product
knowledge
Misoprostol
Brand
Isovent
Key Strategies
1. Improve distribution
coverage
2. Pilot small scale
community based sales
activity
3. Target key family
planning organizations
Pricing Structure
2012
MHC
Isovent
Cost of Goods
$.28
DKT Selling to
Distributor
Distributor
$.29
selling to Retailer
Suggested Retail $0.51
Price
Sigma
MisoTac
$.30
Key Activities
1. Route maps are
developed
2. Efficient detailing teams
are re-trained and
deployed
1. Identify manageable
location
2. Train community based
TBAs
3. Identify key pharmacies
1. Continue to develop
relationship with
Pathfinder, jpiego, and
FHI
Cytotec
N/A
N/A
N/A
$.60
$1.85
IUDs and Implants
The strategies for Iuds and Implants are contained in the Franchise clinic section. While none
of the products are Íntimo branded, an Íntimo sticker will be developed to identify both
products as part of the Íntimo line.
Other than the Government’s IUDs, which private clinics can obtain for free, no IUDs are
available in the private sector other than Government and DKT’s.
Pricing Structure
2012
Intimo
Safeload
(DKT)
Cost of Goods
$.85
DKT Selling to
$1.10
Franchise Clinics
DKT selling to
$5.50
non-FC Clinics
Suggested Retail ??
Price
Intimo
Sleek
.75
$1.10
Intimo
Zarin
(Implant)
$9.47
$1.10
$6.50
$10.75
??
$18.92
14
15
1
Funding Source
DKT
DKT Washington
STBF
$700,000
$795,655
STBF
Sales Revenue
$618,844
$2,114,499
Sub Total Income
2
Commodity Purchases
Misoprostol
$33,000
Oral Contraceptives
Emergency
Contraceptives
$87,000
Injectable
OC/EC (local
purchase)
$34,100
$26,250
Implants
$84,194
Prudence
$247,000
Fiesta
$162,000
$35,000
$57,806
Sub Total Commodities
3
$766,350
Media Promotion
Condom
Buffett (Purchased
Services)
$215,000
$150,000
$365,000
Sub Total Media Promotion
4
Program (Buffett)
Social Franchise Clinics
Training (Community
Education)
$155,133
$140,000
Sub Total Program
5
$295,133
Program Operational Costs
Condom Sales
Maputo
$109,500
Beira
$49,500
Nampula
$49,500
Pharmaceutical
General Administration
+Fees
$62,111
Travel
Monitoring & Evaluation
$101,800
$140,000
$85,000
$60,000
$30,605
$688,016
Sub Total Operational Costs
Total Costs
$2,114,499
16
Cash Transfer Schedule
DKT
STBF
Jan-12
$300,000
$100,000
Feb-12
$100,000
$50,000
Mar-12
$0
$250,000
Apr-12
$0
$0
May-12
$100,000
$0
Jun-12
$0
$100,000
Jul-12
$100,000
$0
Aug-12
$0
$150,000
Sep-12
$100,000
$0
Oct-12
$0
$145,655
Nov-12
$0
$0
Dec-12
$0
$0
Total Transfer
1,495,655
17