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 Future Private Sector Social Marketing 1. Increased Impact

: • Lower vulnerable pop (behavior change) • Market (all sectors) fills greater portion of need

2. Increased Equity

vulnerable reached equally well

3. Increased Sustainability

growing commercial market role -> reduced subsidy required for greater health impact : poor and :

Private Sector Social Marketing Public Sector Public Sector

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  commercial brands make space for 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:

Makes him a real Khmer man

Differentiated by:

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 Variants OK Condom OK Plus Sachet OK Plus Tube

Updated pricing/targeted subsidy

Original “OK”

New “OK”

Original “#1”

New “#1” % COGS Recovered

42%

104%

35%

146% Consumer Price (per unit)

$0.019

$0.042

$0.025

$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

30 25 20 15 10 5 0 2000

avg 16.2

mill

2002

avg

2004

sa le

avg 26.0

mill 2006 2008 PSI Condom Sales Outlet Brothel crack downs from 2008 ok intro 2009 #1 2nd price incre ase 2010 10 000 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 page 13

4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0

Cambodian Condom Market: Value

(new brands since 2009: 6 major, 15 minor) Value of Condom Market

2005 2006 OK 2007 2008 Number One 2009 Private 2010 Projection 2011 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 2007 2008 2009 2010 Projection 2011 Private Sector Public Sector PSI Condom page 15

15 10 5 30 25 20

O.K. & #1 Condom volume

OK No1 page 16

TMA Impact: Condom Use

100% 90% 80% 70% 60% 50% 40% 54% 62% 53%

Consistent Condom Use - High Risk Sex

92% 84% 96% 89% 94% 86% 85% 78% 70% 53% 57% 96% 93% 67% 1997 42% 1998 1999 Sex Worker, transactional sex 2001 2003 2007 Male Client, transactional sex 2008 2009 2010 Male Client, Sweetheart 94% 92% 64% 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