AID cooperative agreement no. 613-0251-A-00-0025-00 to the Population Services International to provide support for construction, technical assistance, training and commodities for contraceptive social marketing project

The project, which will make affordable condoms and oral contraceptives available in commercial outlets throughout the country, will be implemented by Population Services, Inc. (PSI) and a Kenyan organization, Continental Industries, LTD. (CIL). Four different contraceptives will be marketed in an effort to ensure that products are affordable to as broad a range of consumers as possible. During the first year, PSI and CIL will complete 4-6 market research studies to determine pricing structure and marketing strategies (e.g., product name selection, package design). CIL will continue its marketing of the mid-priced Fetherlite brand condom (which has already been test-marketed by PSI and CIL), introducing it into 18 new cities and towns in southern Kenya, with new 580 retail outlets (pharmacies, supermarkets, large self-service stores, mini-marts, tobacco shops, hotels, pawnshops, and nightclubs). To expand distribution to small retailers (dukas) and larger outlets in urban and semi-urban areas not directly covered by its sales force, CIL will use wholesalers and trade incentive schemes. PSI and CIL will together introduce a second condom brand at a lower price (affordable to low-income consumers), along with a mid-priced oral contraceptive (possibly Nordette brand), followed by a lower-priced oral. During years 2 and 3, CIL will expand its distribution networks to reach 9 more towns and will broaden distribution of CSM products to the pharmacy and grocery trade nationwide. Sales targets for year 3 are 13 million condoms and 1.1 million cycles of orals, for an overall contraceptive prevalence rate of 4.5% Advertising and promotional campaigns will utilize culturally sensitive messages via print media, TV, cinema, radio, and in-store promotions. PSI will help CIL expand its sales force and distribution network, and will provide monitoring and administrative support and training. Revenues from sales will be used in different ways, depending on the product. Funds from the sales of the Fetherlite condom and the mid-priced oral will belong to CIL. Revenues from the lower-priced orals and condoms (which will be procured with USAID and PSI funds, respectively) will be either used for the project or will be returned to PSI, with any additional funds put into advertising.