Country Typology Aiming for MDA Success

1. Country Typology Aiming for MDA Success RHSC MDA Working Group Presentation to the Coalition October 2006

2. Context • MDA WG seeks to identify and disseminate models and tools that facilitate the development of market approaches that meet the need of low and moderate income customers • MDA scoping exercise conducted in Q1 2006 and recommendations were shared with RHSC in April 06 • MDA WG identified need to create a tool that would broadly inform how MDAs relate to country environments

3. Summary of MDAs identified • Shift costs from public sector purse to private pockets so that poor and vulnerable can be better served: • Targeting subsidies • Transitioning consumers to higher priced products • Alternative financing mechanisms • Reduce commodity costs for procurers and consumers • Procurement mechanisms • Assisting generic manufacturers to play increased role in provision of RH products

4. Summary of MDAs identified • Reduce the costs of and increase the effectiveness of distribution • Public to private distribution • Private provider training • Partnership for commercial distribution (with FMCG companies) • Social franchising

5. Summary of MDAs identified • Create an environment that encourages competition and choice • Support marketing and demand creation interventions • Category demand creation • Greater freedom with advertising / distribution • Better communications (effectiveness of BCC) • Policy interventions • Registration facilitation • Taxation and duty reduction • Increased number of products / offer (crowding in) • Authorize new distribution channels / type of outlets for hormonals

6. Purpose • Develop a tool that would • provide a broad overview of where a country stands in the market development continuum • get a better sense of the type of MDAs interventions that would be appropriate for this country

7. Intended use • To: • Help focus analysis on the most relevant aspects of market development in a specific country • Educate about type of MDAs with higher chances of success • Not to: • Replace a proper situational analysis • Tell stakeholders what to do

8. Proposed Criteria Financial Potential • Ability to Pay • Willingness to Pay • Business environment (regulations, taxes, distribution, promotion) Market Potential • CPR levels x Population of Women of Reproductive Age • Competitive environment – esp. efficiency, affordability and targeting of public sector vs private sector

9. Proposed MP/FP matrix Market Potential High CPR and/or favorable competitive environment High ability to pay and/or WTP and/or favorable business environment Ex: Morocco, Venezuela High CPR and/or favorable competitive environment Little ATP and/or WTP and/or unfavorable business environment Ex: Nigeria High Low CPR and/or competitive environment unfavorable Little ATP and/or WTP and/or unfavorable business environment Ex: Benin, Congo Low CPR and/or competitive environment unfavorable High ability to pay and/or WTP and/or favorable business environment Ex: Ukraine Low Financial Potential High Low

10. Status • TORs developed • Activities to include: • Confirm criteria for the classification and revise as necessary • Recommend approach to weighing data • Document the classification system (methodology and approach) • Develop and explain the approach for 8 countries • Set up database in the RHSC website • Liaise with other WG in the Coalition

11. Proposed next steps • Identify consultancy to develop tool / database • Determine source of funding