How does marketing of products and services improve health in developing countries?
Many of the world’s most vulnerable populations do not have access to quality and affordable health products and services. In countries around the world, PSI uses private sector approaches and marketing techniques to ensure that everyone has access to affordable, high-quality healthcare products and services.
PSI is committed to growing health markets for high-quality products and services in a sustainable and equitable way. We do this by marketing and distributing a portfolio of products and services targeted to the relevant consumer segments within target populations. PSI works in close partnership with private sector and local organizations to ensure that the most vulnerable consumers can access these products and services that are affordable and accessible. PSI combines the discipline of marketing and financial management to ensure our portfolio of products and services meet the changing needs of our target consumers and evolving markets.
PSI’s approach to marketing products and services
1. Identify the market opportunity
We conduct in-depth consumer and market research to understand the current and potential market for a health product or service. This includes analysis of current market performance, including which products and services are already available and how well they deliver against our target audience’s needs. We identify opportunities to grow the health market through improving an existing product or service, or launching something new to fill a consumer need and market gap. We invest in understanding the category of products and services for that health need to ensure that our marketing efforts help grow the overall category.
2. Understand our target audience
Next, we gain deep insight into our target audience, using a mix of traditional consumer and market research methods complemented by user-centered design approaches such as empathy, insights and prototyping.
We explore their needs and expectations for the product/service, and learn about the consumer journey across stages of awareness, decision making, access and use. We identify the barriers that may prevent our target audience from using the product or service, and the key motivators that encourage them to access and use health products and services. This insight helps us design the most relevant and appealing products and services for our target audience.
3. Design the solution across the 4Ps of marketing
Once we have identified the market opportunity and gained insight into our target audience, PSI moves forward in designing our products and services. We apply marketing rigor across the 4Ps to ensure:
- Our product or service is of the highest quality and culturally appropriate.
- The price of our product or service is affordable and creates incentives across the supply chain.
- We offer the product or service in a place accessible to our target audience.
- We promote the product or service in a manner that empowers our target audience and addresses their key influence to make an informed choice and ensure sustained use.
Developing new business models for the sustainability of health markets
Social enterprise offers us the opportunity to deliver sustained health impact through leveraging a commercial business model to grow health markets for products and services. In particular:
- Sustaining the market for a health product or service beyond the life of donor funding.
- Increasing access to more affordable products or services (filling a segment of the market where other commercial sector companies aren’t present).
- Developing the market for a new health product or service.
PSI currently runs successful social enterprises in Southern Africa and the Latin America and Caribbean regions, and is establishing a new social enterprise in India (see Solutions tab).
In 2016, PSI and its network members have added an estimated 38.1 million years of healthy life with our products and services.
PSI’s service provision and distribution of family planning products resulted in 18.6 million CYPs provided in 2016.
LIVES CHANGED (ESTIMATED)
4.27 million unintended pregnancies prevented.
11,000 maternal deaths prevented.
240,000 deaths due to malaria, diarrhea & pneumonia prevented. (MDG 4 & 7)
261,000 new HIV infections prevented.
1,027,000 long-acting, reversible contraceptives inserted (including implants and intrauterine devices), empowering women and couples to plan for the families they desire.
283,000 voluntary adult medical male circumcisions performed, preventing HIV and other sexually transmitted infections (STIs).
2,050,000 voluntary testing and counseling sessions for HIV and other STIs conducted, reducing transmission rates and increasing access to treatment through referrals.
2,046,000 doses of artemisinin–based combination therapy provided after confirmatory diagnosis, saving lives by treating malaria
177,000 (second) doses of intermittent preventive treatment in pregnancy for malaria
39,600 courses of directly observed therapy, saving lives by treating tuberculosis.
19,500 patient-month doses of antiretroviral treatment
0.9 billion male and female condoms, preventing transmission of HIV and other STIs and empowering women and couples to plan for the families they desire.
42.8 million long-lasting insecticide-treated nets, protecting families from malaria.
17.6 million courses of artemisinin–based combination therapy, saving lives by treating malaria.
2.4 million diarrhea treatment kits, saving children’s lives by reducing the severity and duration of diarrheal disease.
828,000 pre-packaged antibiotics, saving lives by treating pneumonia.
572,000 long-acting, reversible contraceptives distributed (including implants and intrauterine devices), empowering women and couples to plan for the families they desire.
13 billion liters of water treated with water treatment products.
PSI/South Africa’s roots were in donor funded, condom social marketing programs started as far back as 1999. Partly due to the success achieved by these programs, PSI together with its funders, the Swedish International Development Co-operation Agency (SIDA) and the Royal Netherlands Embassy, made the decision to transition these programs to a regional social enterprise that would be financially self-sustaining.
In 2012, the enterprise started a rigorous process targeting enhanced business efficiency – applying commercial best practice to the finance, supply chain, marketing and sales functions.
In four short years PSI/South Africa has transitioned from a funded condom social marketing program to a financially independent, profitable social enterprise. With its two market-leading condom brands Trust and Lovers+ commanding 73% of commercial market volumes, PSI/South Africa is not only sustainable but continues to deliver significant health impact.
PSI/South Africa two market-leading brands, Trust and Lovers+.
Latin America and Paraguay
In the 1960S, the average family in Latin America had six children and many women died in childbirth. Today, most women in the region have two to three healthy children. Infant mortality has fallen faster than anywhere else in the world and child mortality has declined by 57% .
Regionally, development assistance has declined since the 1980s, while purchasing power has increased. This translates to market opportunities for health products and services. More and more, consumers are choosing and paying for the health care they want.
Ten years ago, our network member in Paraguay pioneered one of these opportunities to create a sustainable social enterprise model for contraception after graduating from donor support. Today it offers a broad portfolio of sustainable products across the family planning and nutritional spectrum. Similarly, PSI’s partner in Central America, the Pan American Social Marketing Organization (PASMO), has built on years of donor investment to develop a profitable condom brand, Vive, that now boasts a 52% market share in the region. PSI and PASMO have continued this journey by diversifying their sustainable portfolio to include other affordable, quality health products across the region.
India Limited Liability Company (LLC)
India represents 40% of the total global FP2020 goal, with a target of reaching 48 million additional users of modern methods of contraceptives by 2020. A market development approach analysis demonstrated that the market is failing women across all wealth quintiles in urban and rural areas, particularly young women. Moreover, the method mix is disproportionately skewed towards sterilization, with limited access to other contraceptive methods.
The family planning market in India traditionally has been highly subsidized, hindered by an inefficient government procurement process and restrictive pricing caps on some products. Recent changes in these restrictions have opened the door for a new approach. PSI has established a family planning social enterprise that will drive growth of the family planning market, while building an efficient business model for sustained business operations. PSI
India Private Limited (LLC) will offer a range of family planning methods – increasing availability of a range of high quality products. The LLC will operate as a commercial entity focused on driving operational efficiency to ensure that products remain accessible and affordable for our consumers.
Masti and Pearl brands.
Learn more about our new social franchise business models.
- How PSI Generates Value for Money through Social Investments
This 2-page brief describes the principles of cost-effectiveness, world-class financial management and risk reduction procedures that PSI uses to deliver cost-efficient impact for our partners.
- PSI Vietnam Worksite Research Report
- Strengthening Mozambique’s Family Planning Market: A Way Forward
Total Market Approach report on family planning
- 2016 Rural Sanitation and Hygiene Behavioral Study Vietnam
In December 2016, PSI Vietnam conducted a behavioral study among 1,200 rural households in Tien Giang and Dong Thap provinces to assess PSI’s sanitation social marketing program progress and to inform future improvements in coverage and sanitation as well as hygiene behaviors. This study highlights the continuing need for improved sanitation and hand-washing with soap practices among rural families in Vietnam, and identified factors that need to be addressed in order to improve sanitation and hand-washing practices.
- Social Marketing Evidence Base: Malaria
The Social Marketing Evidence Base was compiled from a systematic review of published literature evaluating social marketing interventions in global health. This document provides an overview of the results from the studies on malaria.
- Social Marketing Evidence Base: Tuberculosis
The Social Marketing Evidence Base was compiled from a systematic review of published literature evaluating social marketing interventions in global health. This document provides an overview of the results from the studies on tuberculosis.
- Social Marketing Evidence Base: Reproductive Health
The Social Marketing Evidence Base was compiled from a systematic review of published literature evaluating social marketing interventions in global health. This document provides an overview of the results from the studies on reproductive health.
- Social Marketing Evidence Base: Child Survival
The Social Marketing Evidence Base was compiled from a systematic review of published literature evaluating social marketing interventions in global health. This document provides an overview of the results from the studies on child survival.
- Social Marketing Evidence Base: HIV/STIs
- Worksite Programs for Malaria Elimination: Best Practices & Lessons Learned from Cambodia
In 2013, Population Services Khmer (PSK) launched its malaria worksite program on 45 plantations in five malaria endemic provinces of Cambodia. This document summarizes the program’s key learnings and recommendations.