Transition to the commercial sector : what happens to socially marketed products after graduating from USAID support?

This study examines the experience of the commercial market in five countries (Morocco, Turkey, Barbados, Mexico, and Zimbabwe) during the first few years following the graduation of a USAID-supported socially marketed condom. In each country, the transition to the private sector occurred between 1991 and 1993. The study addresses two important questions: What happens to socially marketed products after graduation? What happens to a developing country"s overall contraceptive market after donor assistance is withdrawn? In examining these questions, the author explores both the marketing actions taken and the impact of those actions on the commercial market for these products. The analysis demonstrates that social marketing activities improve levels of knowledge, awareness, and use of the method in the intended group of consumers. It also provides important insight into how products and the market behave after donor support is withdrawn. (1) The socially marketed brand stays viable and continues to be marketed after assistance is phased out. Most companies will continue to invest in advertising and promotion for the product, albeit at a lower, more sustainable level. (2) The total commercial market for the product grows and diversifies both during and after SOMARC involvement. Regardless of whether the socially marketed brand"s share increases, stabilizes, or declines, the market will continue to strengthen and remain active. (3) Class C and D consumers continue to be served, either by the graduated product, which often maintains or lowers its real price; by the entry of new, low-priced brands; or sometimes by other higher-priced brands when consumers become less sensitive to price. (Author abstract, modified)