Full Market Impact: Measuring Impact of Private-sector Health Projects AED’s N-MARC Project Nepal Nadra Franklin March 31, 2009 Nepal Social Marketing & Franchising Project: AIDS, Reproductive Health, and Child Survival 2006-2009 Goal Expand the depth, reach, and impact of Family Planning/Reproductive Health, MCH, and HIV/AIDS prevention products and services among low socioeconomic populations through sustainable social marketing and social franchising programs A New Model of Private Sector Health Initiative - Full Market Impact™ • Social marketing approach to achieve “total market” development for essential healthcare products and services, coupled with sustainable health impact • Multiple partners from the private commercial sector, NGOs, public sector and civil society to increase the practice of healthy behaviors and generate/fulfill demand for an affordable and accessible range of “public health” products and services • Four P’s of marketing, (product/supply, price/affordability, place/distribution, and promotion/demand and appropriate use) • Three primary outcomes – equity, commercial viability, and sustainable public health impact • Facilitator and broker, steward of donor investment N-MARC’s Program Strategy • Build on 30 years of USAID/Nepal’s investment in social marketing in Nepal • Conduct generic communication campaigns to build ‘total market’ demand for products • Enhance independence of social marketing organizations and local ownership Commercial-Sector Partnerships • Matching funds – Joint-risk, joint-reward approach – 1 to 1 matching ratio (or higher ratio favoring USAID) – Partners responsible for own product procurement – Stimulates commercial-sector investment • Technical assistance – Sensitization to public health issues in Nepal – Refining and developing marketing strategies – Brand rationalization/new products – Market research (e.g. Household behavioral surveys, GIS mapping) – Support local partners’ implementation Key Products and Services N-MARC invests in subsidized and fully-priced locally owned brands HIV/AIDS Prevention • Male condoms • Latex female condom • Oral contraceptives Family Planning/ Reproductive Health • Injectable contraceptives • Long-term methods (IUD and Norplant) • Emergency contraceptive pills • Clean delivery kits Maternal & Child Health • Oral rehydration salts • POU chlorine solution Evaluation Theory Based on Program Theory: Full Market Impact (FMI) • Measure the program model – 7 results areas relate to intervention design – 7 results areas associated with specific indicators – FMI outcome is Impact • Prospective evaluation design – Refers to program model and intervention design – Developed at outset of program – Refined in real-time as program design is refined and revised Result Area1: Improved Supply • Increased production capacity and output • Creating strong links between manufacturers and distributors – Number and percentage of partners utilizing fully developed marketing plans, including market segmentation strategy to facilitate development of sustainable business relationships between manufacturers and distributors (brand building, planning etc) • Providing technical support to expand manufacturing capacity and quality – Number of partners trained in development and implementation of social marketing communication strategies to increase capacity of local partners to design, implement and manage state-of-the-art social marketing and social franchise programs – Expansion of the number of outlets Improved stock management and distribution system Result Area 2: Increased Demand • Generic demand creation campaigns based on extensive research • Increased equity to ensure equal demand and access (Household coverage rates as high or higher among low-income and high risk groups) • Private Market Size per product (Present Sales) • Commercial Market Size per product (Present Sales) • Percent increase in commercial sector market share per product or service (difference between baseline and present sales) Result Area 3: Improved Technologies • Making cutting-edge technology and new products accessible to all manufacturers • Bringing new products to the attention of manufacturers and then to consumers – Latex female condom – Zinc treatment for diarrhea Result Area 4: Increased Distribution • Franchise opportunities and targeted subsidy via commercial sector, vested party or additional donor – Franchising products through training – Voucher schemes – Coverage and reach • More outlets and enhanced stock management Result Area 5: Efficiency • Maximizing public health impact through efficient investment • Resources leveraged by N-MARC project • Number and % of initiatives (e.g. research and communication) that include a minimal level of multi-sectoral representation • Efficiency ratio of using donor resources Result Area 6: Access • Creating a sustainable marketplace for consumers at a variety of price-points • Coverage per product distributed for target population in geographically-defined populated areas • Access saturation index - monitor variations on the levels of coverage and access for enhanced program management, with the ultimate goal of increasing both coverage access at smaller geographically-defined areas and distances to maintain the focus on realizing public health impact Result Area 7: Sustainability • Creating a sustainable business model among manufacturers, suppliers and their distributors to serve long-term consumer needs • Increased number of brands, partners, with steadily increasing investment in market development by commercial sector • Establishment of distribution networks and promotional capacity at the regional and country levels that are not dependant on any donor support beyond project • Sustainability indicator Full Market Impact™ PRIVATE Coordination Product Capacity building Quality Assurance PUBLIC Supply Market Research Price Affordability Distribution Support/ Marketing Funds Place Promotion Financing Policy/ Advocacy Distribution Demand/Use Demand Creation/ Matching Funds Targeted Subsidies Vouchers Sustainable Markets Equity Increase Usage of Public Health Products/Services Sustainable Public Health Impact Family Planning/Reproductive Health Results (2007-2008) Indicator Target Achievement Private Sector CYP 312,481 369,977 Private sector oral contraceptive market size 781,508 912,699 Number of people trained in FP/RH with USG funds 1,500 1,817 • Male 900 1,252 • Female 600 565 55,000 97,380 • Male 11,000 29,614 • Female 44,000 67,766 Number of people that have seen or heard a specific USG-supported FP/RH messages HIV/AIDS Results (2007-2008) Indicator Coverage of condom distribution in geographically defined areas Target Achievement 85% 88% 21,524,709 21,804,780 700 5,466 3,500 43,785 • Male 1,750 29,611 • Female 1,750 14,174 Number of individuals trained to promote HIV/AIDS prevention through other behavior change beyond abstinence and/or being faithful 1,600 4,509 Number of franchised health providers trained to provide STI treatment 1,800 1,674 Sales of USG-supported condom brands Number of targeted condom outlets opened in “hot zones” Number of individuals reached through community outreach that promotes HIV/AIDS prevention through other behavior change beyond abstinence and/or being faithful Results: Increased Demand and Access Individual Sales Performance of commercial partners Aug 06-Jul 07 Aug 07-Jul 08 % Growth Praxis 1,250,000 2,474,861 97% Gayatra 3,500,000 4,728,573 35% Pioneer Launched Dec 07 720,000 N/A Total 4,750,000 7,923,434 66 % Increased Geographic Coverage Prior to After Intervention intervention Commercial Partners 20/75 72/75 Results: Sustainability Private sector market size has increased by 20% since the intervention was initiated, resulting in greater commercial sector role 22,000,000 21,419,289 20,000,000 18,000,000 17,416,357 17,365,620 2003-2004 2004-2006 17,843,361 17,823,990 2005-2006 2006-2007 16,000,000 14,000,000 12,000,000 Source: ACNielsen, Retail Market Audit 2007-2008 Results: Efficiency Increased investment from commercial sector Period: August 2007-July 2008 AED support ($) 51,269 Partner Investment ($) 250,035 Gayatra Store Pioneer 50,577 147,222 1:3 21,481 45,237 1:2 TOTAL 123,326 442,494 1:4 Praxis Ratio 1:5 Full Market Impact • Creating a sustainable market for maximum public health impact through improved access, sustainability and consumerfocused efficient use of funds • Three main outcomes – equity, commercial viability, and public health impact – Calculate FMI Index – Model births averted – Model HIV infections averted Implications: Replicability • Key results areas can be applied to multiple interventions beyond private sector partnership development models • Results derived from multiple methods and approaches applied throughout project performance period • Translate FMI to non private-sector approaches Implications: Data Quality • Triangulation of data from household surveys, retail audits, sales reports, GIS mapping, qualitative inquiry • Private-sector model results in nation-wide intervention and agnostic “selection” of program areas • Inability to identify “control” areas because of model’s reach and ethical concerns of not providing the intervention Is this Impact? • Apply models to measure public health impact using program data – cases averted • Define program context that potentially contributed to and stalled program implementation over the three-year project period – attribution and speeding up secular change • Estimate costs of tracking results to measure impact – making budgetary allocations