Alternative models for tier two market development the hague 6-7 october 2005



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ALTERNATIVE MODELS FOR TIER TWO MARKET DEVELOPMENT

  • THE HAGUE

  • 6-7 OCTOBER 2005

  • JERRY CHAMBERS

  • ACCESS INTERNATIONAL LLC


ILLUSTRATIVE EXAMPLES OF ALTERNATIVES TO PSI & IPPF ICON TIER TWO MODELS

  • MOROCCO KINAT AL HILAL PROJECT

  • INDIA GOLI KE HOMJOLI PROJECT

  • BANGLADESH SOCIAL MARKETING COMPANY

  • HINDUSTAN LEVER PROJECT SHAKTI



UNDERLYING BELIEFS FOR PRIVATE SECTOR ENGAGEMENT IN DEVELOPMENT AGENDA

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

  • The private sector can contribute to social development even if governed by business objectives

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



DEFINITION OF THE PRIVATE SECTOR

  • Commercial Firms

  • Social Marketers

  • Pharmacists and Drug Vendors

  • Doctors and Midwives

  • Rural Practitioners/Traditional Healers

  • NGO Community

  • Local Societies/Parastatals

  • Informal Sector/Self Help Groups

  • Local Businesses (Providing a Platform)

  • Transnational Corporations



MOROCCO KINAT AL HILAL

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

  • UMBRELLA BRAND DEVELOPED FOR TWO PILLS

  • * MINIDRIL (WYETH)

  • * MICROGYNON (SCHERING)

  • USAID PROVIDED TA FOR MARKETING & PROMOTION

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

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



INDIA GOLI KE HOMJOLI PROJECT

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

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

  • AFTER FIVE YEARS:

    • IMPROVED ATTITUDES TOWARDS OCs
    • USE INCREASED FROM 4% TO 11%
    • IMPROVED KNOWLEDGE AND ATTITUDES BY PROVIDERS
    • SALES OF ALL OCs INCREASED BY 48% vs 0% IN NON-TARGET AREAS
    • IN TERMS OF VALUE THE MARKETS GREW BY 110%
    • LAUNCH OF NEW OC BRANDS AND SIGNS OF PRIVATE SECTOR INVESTMENT


THE SOCIAL MARKETING COMPANY OF BANGLADESH

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

  • 180,000 RETAIL OUTLETS

  • * DISTRIBUTE SEVERAL BRANDS OF PILLS AND

  • CONDOMS FOR SPECIFIC MARKET SEGMENTS

  • * PRICES RANGE FROM VERY LEVELS TARGETING THE

  • POOR, TO MODERATE LEVELS, WHERE THE BRANDS

  • CAN GENERATE SOME PROFIT

  • * COMMERCIAL DISTRIBUTOR FOR WYETH LINE OF

  • ORAL CONTRACPETIVES

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

  • MOVING TOWARD SUSTAINABILITY



PROJECT SHAKTI: A RHSC OPPORTUNITY

  • Unilever/Hindustan Lever commercial & social initiative

  • Shakti impacts rural society through four interventions:

    • The Shakti Entrepreneur model creates income-generating opportunities for underprivileged rural women
    • The Shakti Vani program improves rural living standards through the spread of health and hygiene awareness
    • The i-Shakti is a community portal that empowers rural community by creating access to relevant information
    • The e-Shakti initiative seeks to enhance functional literacy among rural Indian women


PROJECT SHAKTI KEY ELEMENTS

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

  • HLL APPOINTS WOMEN AS SHAKTI ENTREPRENEURS (SE)

  • SE’S ARE SUPPLIED PRODUCTS AT THEIR DOORSTEP

  • SELL WITHIN CLUSTERS OF 3-6 VILLAGES

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

  • PRESENTLY 15,000 ENTREPRENEURS COVER 61,400 VILLAGES

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



I-SHAKTI BRIDGES THE DIGITAL DIVIDE & EMPOWERS THROUGH INFORMATION

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

  • Computers are set up in Shakti Entrepreneur’s home

      • Visitors browse by content: health, agriculture, employment
      • Visitors can post queries, which are answered by experts
  • Leverages cross sector partnerships: government, corporate, NGOs

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

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



e-Shakti

  • Care India Partnership

  • Trains Shakti Entrepreneurs to run a functional literacy program for village women

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



SHAKTI VANI

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

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

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

  • Currently Project Shakti Vani covers 10,000 villages

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



“…Development is like a two wheel barrow. The two wheels are man and woman; if they don’t turn together, there will never be development.”

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



CONCLUSIONS

    • There are lots of ways to look at tier two market development
    • ICON and PSI are options presently under consideration by TMA Working Group
    • Kinat Al Hilal, Goli ke Homjoli, SMC and Project Shakti are other options and PSP-One will be initiating other models
    • Does this group want to consider options other than PSI/ICON for tier two market development?


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