Taking a Total Market Approach:

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Taking a Total Market Approach

• October 1, 2007, Arlington, USA

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The Total Market Approach (TMA)

• The goal and objectives of the RHSC-MDA group
• are based upon the Total Market Approach
• To develop commercial market possibilities for
  the benefit of the poor, to assist in increasing
  prevalence rates and ensure that products are
  available to meet the resulting demand
• TMA-designed to expand commercial contraceptive
  markets and improve overall contraceptive
  security at the national level

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The Total Market Approach

• TM Approach based upon
• A comprehensive understanding of the environment
  and current and future potential market situation
• A willingness of all contraceptive providers,
  both current and future to define their roles,
  based upon capacity and expertise and agree to
  work in partnership for the benefit of improving
  contraceptive use, availability and choice for
  clients
• To bring together the best available national and
  international resources and expertise to work
  toward a common objective
• Bring together the total market actors to develop
  a total
• market solution

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The Total Market Approach

• This requires
• Clear understanding of the future market
  structure that is desired and why
• Undertaking the necessary range of research and
  feasibility activities to accurately develop a
  proposal and business plan
• Being accountable for achieving the project
  outcomes identified and agreed upon
• In the Total Market Approach, the potential
  overall
• impact of the intervention is addressed at the
• planning stage

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The Total Market Approach

• Total Market Approach must not distract donor
  attention away from the priority needs of the
  poorest clients

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The Total Market Approach

• Assess the market
• Engage all stakeholders national and
  international, private and public
• Segment and target
• Research willingness and ability to pay,
  consumer preference
• Plan and coordinate!

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The Total Market Approach
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Total Market segmentation- simple
High-price commercial sector products
Affordable commercial products
Donor subsidized branded products Social
Marketing
Government/donor products, supplied free of
charge or at minimum cost recovery
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Additional segmentation issues

• In addition to economic segmentation between the
  public, social marketing and different commercial
  sectors, other detailed segmentation issues can
  be explored E.G.
• Methods of contraception provided by the
  contributing sectors
• Coverage and reach of services provided by the
  different sectors urban/rural, pharmacy/clinical

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Total Market Actors
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Market Development Approaches (MDAs)

• There are many ways of defining what a Market
• Development Approach actually means
• Market Development Approaches (MDA) are defined
  as any intervention undertaken by donors,
  implementing agencies or the commercial sector
  that has led, or would lead, to an improved level
  of financial sustainability, improved access and
  improved choice for a given market.
• Each of these end-goals can be supported by
  outcomes of improved RH efficiency and improved
  RH effectiveness
• These can be achieved via a variety of
  means/approaches

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Market Development Approaches
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Market Development Approaches
The 5 primary ways in which MDAs can
expand choice and access to products

• Shift costs from public purse to private pockets
  so poor and vulnerable can be better served
• Reduce the cost of the products
• Reduce the costs and/or increase the
  effectiveness of distribution
• Create a policy/enabling environment that
  encourages competition and choice
• Create demand through marketing

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Market Development Approaches

• Two main models of social marketing
• NGO model most suited to immature markets
• Manufacturers model most suited to mature
  markets

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Market Development Approaches
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Market Development Approaches

• Variety of hybrid models have been used
• Recognition that markets are unique, base models
  have been adapted mixed merged and tailored
• Evolving markets, evolving opportunities, new
  ideas
• Market Development Approaches

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RHSC-Market Development Approaches Working Group

• Actively engaged in dialogue, information sharing
  and
• efforts at better coordination
• Donors
• Implementing agencies/SMOs
• National government/NGOs
• Commercial manufacturing sector