ALTERNATIVE MODELS FOR ALTERNATIVE MODELS FOR TIER TWO MARKET TIER TWO MARKET

DEVELOPMENT DEVELOPMENT

THE HAGUETHE HAGUE6-7 OCTOBER 20056-7 OCTOBER 2005

JERRY CHAMBERSJERRY CHAMBERSACCESS INTERNATIONAL LLCACCESS INTERNATIONAL LLC

ILLUSTRATIVE EXAMPLES OF ALTERNATIVES ILLUSTRATIVE EXAMPLES OF ALTERNATIVES TOTO

PSI & IPPF ICON TIER TWO MODELSPSI & IPPF ICON TIER TWO MODELS

MOROCCO MOROCCO KINAT AL HILAL KINAT AL HILAL PROJECTPROJECT

INDIA INDIA GOLI KE HOMJOLIGOLI KE HOMJOLI PROJECT PROJECT

BANGLADESH SOCIAL MARKETING COMPANYBANGLADESH SOCIAL MARKETING COMPANY

HINDUSTAN LEVER HINDUSTAN LEVER PROJECT SHAKTIPROJECT SHAKTI

UNDERLYING BELIEFS UNDERLYING BELIEFS FOR FOR

PRIVATE SECTOR ENGAGEMENT IN PRIVATE SECTOR ENGAGEMENT IN DEVELOPMENT AGENDADEVELOPMENT AGENDA

The RHSC should honor the pledge of the ICPD The RHSC should honor the pledge of the ICPD Program of Action to engage the private sector as Program of Action to engage the private sector as stakeholders in RH commodity security deliberationsstakeholders in RH commodity security deliberations

The private sector can contribute to social The private sector can contribute to social development development even ifeven if governed by business governed by business objectivesobjectives

Any sustainable initiative from the private sector will Any sustainable initiative from the private sector will be sustainable and scalable be sustainable and scalable only if only if it makes business it makes business sensesense

DEFINITION OF THE PRIVATE SECTORDEFINITION OF THE PRIVATE SECTOR

Commercial FirmsCommercial Firms Social MarketersSocial Marketers Pharmacists and Drug VendorsPharmacists and Drug Vendors Doctors and MidwivesDoctors and Midwives Rural Practitioners/Traditional HealersRural Practitioners/Traditional Healers NGO CommunityNGO Community Local Societies/ParastatalsLocal Societies/Parastatals Informal Sector/Self Help GroupsInformal Sector/Self Help Groups Local Businesses (Providing a Platform)Local Businesses (Providing a Platform) Transnational Corporations Transnational Corporations

• Generic Hormonal ManufacturersGeneric Hormonal Manufacturers• R&D-Based Hormonal ManufacturersR&D-Based Hormonal Manufacturers• Companies with Complementary CSR ProgramsCompanies with Complementary CSR Programs

MOROCCO KINAT AL HILALMOROCCO KINAT AL HILAL

• USAID FUNDED SOCIAL MARKETING CAMPAIGN TO PROMOTE USAID FUNDED SOCIAL MARKETING CAMPAIGN TO PROMOTE USE OF ORAL CONTRACEPTIVESUSE OF ORAL CONTRACEPTIVES

• UMBRELLA BRAND DEVELOPED FOR TWO PILLSUMBRELLA BRAND DEVELOPED FOR TWO PILLS

* MINIDRIL * MINIDRIL (WYETH)(WYETH)

* MICROGYNON * MICROGYNON (SCHERING)(SCHERING)

• USAID PROVIDED TA FOR MARKETING & PROMOTIONUSAID PROVIDED TA FOR MARKETING & PROMOTION

• MANUFACTURERS AGREED TO KEEP THEIR OC PRICES DOWN MANUFACTURERS AGREED TO KEEP THEIR OC PRICES DOWN TO LOW INCOME CUSTOMERSTO LOW INCOME CUSTOMERS

• MANUFACTURES AGREED TO CONTRIBUTE A PERCENTAGE OF MANUFACTURES AGREED TO CONTRIBUTE A PERCENTAGE OF PROFITS TO SUPPORT ADVERTISING CAMPAIGNPROFITS TO SUPPORT ADVERTISING CAMPAIGN

INDIA GOLI KE HOMJOLI PROJECTINDIA GOLI KE HOMJOLI PROJECT

““FRIENDS OF THE PILL” CAMPAIGN INITIATED BY ICICI FRIENDS OF THE PILL” CAMPAIGN INITIATED BY ICICI BANK AND TA PROVIDED BY USAIDBANK AND TA PROVIDED BY USAID

FOCUSED ON URBAN AREAS OF EIGHT HINDI SPEAKING FOCUSED ON URBAN AREAS OF EIGHT HINDI SPEAKING STATES IN NORTHERN INDIASTATES IN NORTHERN INDIA

AFTER FIVE YEARS: AFTER FIVE YEARS: • IMPROVED ATTITUDES TOWARDS OCsIMPROVED ATTITUDES TOWARDS OCs• USE INCREASED FROM 4% TO 11%USE INCREASED FROM 4% TO 11%• IMPROVED KNOWLEDGE AND ATTITUDES BY PROVIDERSIMPROVED KNOWLEDGE AND ATTITUDES BY PROVIDERS• SALES OF ALL OCs INCREASED BY 48% vs 0% IN NON-TARGET SALES OF ALL OCs INCREASED BY 48% vs 0% IN NON-TARGET

AREASAREAS• IN TERMS OF VALUE THE MARKETS GREW BY 110%IN TERMS OF VALUE THE MARKETS GREW BY 110%• LAUNCH OF NEW OC BRANDS AND SIGNS OF PRIVATE SECTOR LAUNCH OF NEW OC BRANDS AND SIGNS OF PRIVATE SECTOR

INVESTMENTINVESTMENT

THE SOCIAL MARKETING COMPANY OF THE SOCIAL MARKETING COMPANY OF BANGLADESHBANGLADESH

ACCOUNTS FOR ABOUT ONE-THIRD OF NATION’S CPR FOR ACCOUNTS FOR ABOUT ONE-THIRD OF NATION’S CPR FOR MODERN TEMPORARY SPACING METHODSMODERN TEMPORARY SPACING METHODS

180,000 RETAIL OUTLETS 180,000 RETAIL OUTLETS * DISTRIBUTE SEVERAL BRANDS OF PILLS AND* DISTRIBUTE SEVERAL BRANDS OF PILLS AND

CONDOMS FOR SPECIFIC MARKET SEGMENTSCONDOMS FOR SPECIFIC MARKET SEGMENTS* PRICES RANGE FROM VERY LEVELS TARGETING THE* PRICES RANGE FROM VERY LEVELS TARGETING THE

POOR, TO MODERATE LEVELS, WHERE THE BRANDSPOOR, TO MODERATE LEVELS, WHERE THE BRANDS CAN GENERATE SOME PROFITCAN GENERATE SOME PROFIT

* COMMERCIAL DISTRIBUTOR FOR WYETH LINE OF* COMMERCIAL DISTRIBUTOR FOR WYETH LINE OF ORAL CONTRACPETIVESORAL CONTRACPETIVES

SMC PROJECTED GROWTH AT 30% - 50% PER YEARSMC PROJECTED GROWTH AT 30% - 50% PER YEAR

MOVING TOWARD SUSTAINABILITY MOVING TOWARD SUSTAINABILITY

PROJECT SHAKTI: A RHSC OPPORTUNITYPROJECT SHAKTI: A RHSC OPPORTUNITY

Unilever/Hindustan Lever Unilever/Hindustan Lever commercial & social initiativecommercial & social initiative

Shakti impacts rural society through four interventions:Shakti impacts rural society through four interventions:

• The The Shakti Entrepreneur model creates income-Shakti Entrepreneur model creates income-generating opportunities for underprivileged rural generating opportunities for underprivileged rural womenwomen

• The The Shakti Vani Shakti Vani program improves rural living program improves rural living standards through the spread of health and hygiene standards through the spread of health and hygiene awarenessawareness

• The The i-Shakti i-Shakti is a community portal that empowers rural is a community portal that empowers rural community by creating access to relevant informationcommunity by creating access to relevant information

• The The e-Shakti e-Shakti initiative seeks to enhance functional initiative seeks to enhance functional literacy among rural Indian womenliteracy among rural Indian women

PROJECT SHAKTI KEY ELEMENTSPROJECT SHAKTI KEY ELEMENTS

WORK WITH WOMEN TO FORM SELF-HELP GROUPS IN THE WORK WITH WOMEN TO FORM SELF-HELP GROUPS IN THE SMALLEST VILLAGES OF INDIASMALLEST VILLAGES OF INDIA

HLL APPOINTS WOMEN AS SHAKTI ENTREPRENEURS (SE)HLL APPOINTS WOMEN AS SHAKTI ENTREPRENEURS (SE)

SE’S ARE SUPPLIED PRODUCTS AT THEIR DOORSTEPSE’S ARE SUPPLIED PRODUCTS AT THEIR DOORSTEP

SELL WITHIN CLUSTERS OF 3-6 VILLAGESSELL WITHIN CLUSTERS OF 3-6 VILLAGES

AVERAGE EARNINGS OF Rs 700-1,500 PER MONTH ---OFTEN AVERAGE EARNINGS OF Rs 700-1,500 PER MONTH ---OFTEN DOUBLING HOUSEHOLD INCOMEDOUBLING HOUSEHOLD INCOME

PRESENTLY 15,000 ENTREPRENEURS COVER 61,400 PRESENTLY 15,000 ENTREPRENEURS COVER 61,400 VILLAGESVILLAGES

2010 GOAL: 100,000 ENTREPRENEURS COVERING 500,000 2010 GOAL: 100,000 ENTREPRENEURS COVERING 500,000 VILLAGES REACHING 600 MILLION PEOPLEVILLAGES REACHING 600 MILLION PEOPLE

I-SHAKTII-SHAKTIBRIDGES THE DIGITAL DIVIDE & EMPOWERS BRIDGES THE DIGITAL DIVIDE & EMPOWERS

THROUGH INFORMATIONTHROUGH INFORMATION

A local language, audio-enabled, rural community A local language, audio-enabled, rural community portal that creates access to relevant informationportal that creates access to relevant information

Computers are set up in Computers are set up in Shakti Entrepreneur’s Shakti Entrepreneur’s homehome Visitors browse by content: health, agriculture, Visitors browse by content: health, agriculture,

employmentemployment Visitors can post queries, which are answered by expertsVisitors can post queries, which are answered by experts

Leverages cross sector partnerships: government, Leverages cross sector partnerships: government, corporate, NGOscorporate, NGOs

400 400 i-Shakti i-Shakti kiosks have been set up in partnership kiosks have been set up in partnership with government of Andhra Pradeshwith government of Andhra Pradesh

2010 goal: 6,000 2010 goal: 6,000 i-Shakti i-Shakti kiosks across Indiakiosks across India

e-Shaktie-Shakti

Care India PartnershipCare India Partnership

Trains Trains Shakti Entrepreneurs Shakti Entrepreneurs to run a to run a functional literacy program for village functional literacy program for village womenwomen

Covers basic literacy, banking, micro-Covers basic literacy, banking, micro-credit, and credit, and health & hygienehealth & hygiene

SHAKTI VANISHAKTI VANI

A health and hygiene communication program A health and hygiene communication program targeted at the rural communitytargeted at the rural community

Village women recruited as Village women recruited as Vanis Vanis (‘Voice’) and trained (‘Voice’) and trained on matters relating to health and hygieneon matters relating to health and hygiene

Travel from village to village addressing young Travel from village to village addressing young mothers, school children, local opinion leaders, self-mothers, school children, local opinion leaders, self-help groups and general publichelp groups and general public

Currently Currently Project Shakti Vani Project Shakti Vani covers 10,000 villagescovers 10,000 villages

Goal: scale up to 100,000 villages covered 2010Goal: scale up to 100,000 villages covered 2010

“…“…Development is like a two wheel Development is like a two wheel barrow. The two wheels are man and barrow. The two wheels are man and

woman; if they don’t turn together, there woman; if they don’t turn together, there will never be development.”will never be development.”

The above quote is from Paul Wolfowitz The above quote is from Paul Wolfowitz arguing that until more is done for the arguing that until more is done for the emancipation of women, much of the emancipation of women, much of the Bank’s development effort will be futile.Bank’s development effort will be futile.

CONCLUSIONSCONCLUSIONS

• There are lots of ways to look at tier two market There are lots of ways to look at tier two market developmentdevelopment

• ICON and PSI are options presently under ICON and PSI are options presently under consideration by TMA Working Groupconsideration by TMA Working Group

• Kinat Al Hilal, Goli ke Homjoli, Kinat Al Hilal, Goli ke Homjoli, SMC and SMC and Project Project Shakti Shakti are other optionsare other options and PSPand PSP-One -One will be will be initiating other modelsinitiating other models

• Does this group want to consider options other Does this group want to consider options other than PSI/ICON for tier two market development?than PSI/ICON for tier two market development?