Market segmentation
Once the programme is designed, implementers need to understand how target audiences can be segmented in order to develop appropriate marketing strategies to increase contraceptive use. A principle aim of market segmentation is to match users and potential users with the appropriate source of contraceptives. Currently, market segmentation is addressed by a few groups.
The POLICY Project has developed a market segmentation analysis that uses the DHS (Demographic and Health Surveys) data, asset indices and market data to divide women into distinct categories primarily based on socio-economic indicators. See Family planning market segmentation in Jordan.
The POLICY Project analyses have been used primarily as policy tools. For example, POLICY's market segmentation analysis in Romania was used to demonstrate the large size of the segment that needed free government contraceptives. The POLICY segmentation methodology is established, but is not widely available and may be costly to conduct. While their segmentation studies provide an overview of the total market, they may lack detail about the social and lifestyle characteristics of the segments that is needed to develop marketing messages to reach particular target audiences.
The Population Services International (PSI) and London School of Hygiene and Tropical Medicine (LSHTM) working paper Segmentation and a total market approach outlines ideas on how a market segmentation tool could work with population data along with data on effectiveness, equity and efficiency. The analysis would include factors on risk behaviour among users and non-users. Also, interestingly, it would include data about the preferred reproductive health supplier and brand including both public and private sector products. The paper suggests summarising data in two tables: one about what to do to grow the market (increase consumption) and the other about how to improve market dynamics by identifying levers to motivate potential users. While the data would be highly practical for programme managers and others interested in the market, the challenge is that to date very few countries have all of the necessary data available from population based surveys.
Chemonics is developing a customer segmentation tool that will quantify the commercial potential in each segment. The study, along with DHS analysis and a willingness to pay survey, is to be conducted in the Philippines for an estimated US$200,000. If Chemonics will be able to share this tool, it may be of some use to other programmes in more developed markets, especially if the price charged for conducting the study can be reduced by using an already developed tool.
As part of its work on making markets work for the poor (M4P), the UK Department for International Development (DFID) has commissioned The access frontier as an approach and tool in making markets work for the poor. The tool segments the market into five groups, and focuses on how to increase the proportion of the eligible population who can access the product. The approach takes particular notice of the impact of public sector on markets and would seem useful to reproductive health. However, little is known about the applicability of this approach to family planning.
