To:

From:
Date:
Subject: Maya strategy
Introduction .
In light of the decreasing sales volume of our birth we need to determine the best
course of action about this product. Considering six years of intensive promotiqJl effort we have put on tIus
<
product, we should decide what do with Maya now. The of this memo is to assist you with a
timely decision by (1) providing comprehensive situation analysis, (2) identifying possible alternative
catlfses of action and evaluating them on strategically important criteria, and (3) a specific
re'Coinmendation on the AOL and laying out a feasible implementation plan.
------
I
i
I
. '
External Allah'sis The details of the situation analysis are provided in Exhibit I. 4Cs and 4pr
ummarized in Exhibit SMP aimed at reaching tile largest number possible
I 1 the two contraceptives .Raja and Maya in Bangladesh, Our target custome'
in fertile age group throughout the country. These illiterate an Ivmg 111 area "
They have vely.limited accesses to .. the 5,DDD-profussiQuaJ doctors and
medical They are not willing to adoptfamily planning practices mainly due
-- .
nprance, family economics and cultural reasons, But thanks to the effort of Bangladesh governmen ,
5,bo field works, as well as not-for-profit organizations and private pharmaceutical firms, the people s
competitive ad,!antage lies in a strong, extensive network and support
a govelllment. Our capabilities include (1) an extensive
penetrate illto the most remote areas through pharmacies, slores an
Ba-llgTadesh and fin clal support from an
formed ,-j"ch " "omnrrnr oca
sales representatives.Our most critical weakness is the negative perception of end
. ducts that
product to httmfttl-ood::y ::t:t,ppendiCCS
improvement of the
aad :1). Ol:1r fiji; Ire depends 01
-
Definition of Problem
1
1..LW""'Cl..I..L<J.l::.'" are all important areas to be addressed in our new plan. The clear and
co mers or to detail the RMPs".T 's immediate problem should be addressed in -s'uc -our
. . . and capabilities of our organization at this particular of our
growth.
Identific'ation of Alternatives
-1
In tackling the urgent issue identified above in a limited amount of ti1!1e, we should focus on evaluat ng the /
two courses of action:. y
(I) Go to the consumers with intensive communications.
the RMPs with Maya products and help them improve their service offer.
Evaluation Criteria
As a not-fof:J2!Qfit organization, who USAID, we
need to consider not only the but also the budget
.r-:--: - .. - .
constrainLThis sh:ategic goal can be attaine a marketing
efficient customer acquisition

Evaluation of Alternatives
The pros and cons of each altemative are assessed below.
) ) )

(1) Go .
le consumers with intensive commUI11
SMP has--rielre . nce Wit 1 mass-media promotion in Bangladesh through its successful la

of Raja product which the organization can take advantage of in 'promotion of Maya.
Synergy of Raja and Maya through similalpromotional activities .
. Multi-media, natiollwide, intensive promotion campaigns can increase the brand awareness .
. ---- . -< -..
Cons
Raja and. perceived as two diff@nt categories of n
able to transplant!.!.le success of Raja to Maya.
communication might not be able to reach the intended target customers, especl
. -
women it,l fertiJe age, considering rate and..s.parse distribution in remote areas:
Mass-media advertising campaigns are costly in terms of total cost.
.------.---
2
7
If
(2) Detail the RMPs with Maya products and help them improve their service offer.
Pros



Cons


RMPs are highly respected by and have on rural people, especiallywomen
(who are- more-susceptible to inter-person according to a recent survey).
The government has not enlisted their help to RMPs and they are ignored by competitors, so if we
open our products to them we enjoy a first moyer advantage to win the support of the RMPs.
RMPs n-dt -ailly provide advice to patients. They also sell directly. Through contacting the local
RMPs are not officially trained doctol;s and might be perceived by the board as unqualified.
RMPs all over the country and the organization has only 300 staff, tl;e effort
trying to cove! aU of them can be costly.
RMPs usually do not spend IllOSt of their time in a fIXed place, thus it is difficult to reach them.
Recommendation.and Implementation Plan
Recommendal ion
Based on the Pt9.S. and -cpns-nlgfi1ighted above and takel ta presented in
I
t
e
2--
al
promoling relailer moli va lion and brand image. In 01 customer acquisiti 1, opti on wo A .
no,e effective than option one due to the perception of Maya (/
people te;ld to follow professionals' opinion rather than mass media advertisement. For of
per CY P r . er)o In terms of customer retention rate, the is a beller lI:jl
n, pills effects and the local phYSIcians' advIce;, will detennu 1 /
wliether the woman, who very probably would COilS after feeJin not well, will continue V
use the . iltSofiWt,., .. : --' (] ;(:J. E.t-- J.- ..1' lJbDt Icy f'
10 { (JAA l , VV'q
mplementalionPlan f-vv6 Ct(t-Pv-t'b,..
any to take advantages oflhe second option while still being able to avoid the pitfalls 0::-
relate 0 t lis we will need to carry out the 10Ilowmg steps: W l./'-
(I) Since M.!I; was launched for 7 years nationwide and it is widely known, we should ,'e-Iaunch it using u)1,Nt-
a different name with similarly good meaning in order to show our developed bt_
our pills and provide a superior quality product. Since imported goods1IT'e"tlstla-Hy-perceived by ..-::;::::.--
customers in countries as of higher qualIl)! a western :.'; \!ill
name rather than name in local language. v-v 1I vw
(2) Meanwhile, the packaging of the pills should also be changed. Right now it featured a woman and is'
the famtly concept. However, birth control pil1s are eaten biCOnsumers and are usually t
.

3 ;:::?
as medicine, the package of the product should be more professional with detailed
___ \
(3)/ The ne;<t ste be to change our current pricing to allow higher margin t
(4)
and retaiIBl"S. Because of Maya's relative low price and thus low margiJ;l, distributors, especially small
retailers.whe-are1ne ma in . - u tare unwillin to ca it as their
e the of effect of pricing in exhibit 4). S 11 retailers are concerned about
revemt s volume
e revenue

( owever, ill order to avoid being associated witl
shoulcrffrst start with the"""'5,OOO professional doctors in the country. The advantage of this approach by
r"
starung ffom doctors is that the number of trained doctors in the whole country is relatively small and
3/4 of revenue increase pent all visiting-)(icaT RMPs. Since the organization has already
established their d' . and sales representatives, they can easily get in touch with RMPs.
Ps country, which is huge try to
__ ----J
segment the different capabilityand knowledge, starling from the most influential
and RMt:I.'1TnrddITIOn to upgrade the image of RMPs as quacks, we should
proVidel:hl!" on the use and side eftecfOflliiSpfpduct-We-eaIHlcJso..do sOllie .
jP ntive to the RMPs tp e ca also provide free the RMPs for them to give
their pWents. nd c nsider that .lJ.1Q.S.LofJ.heir..time..mo.v:ing in the community, we
,,- ""'" --------
should put more resources on information board in local communities or sending mails to RMPs!
homes,
4
......... u.>",,", ...l government.' s support of the population service ini tiat i ve: achieving .
tion growth by 1995
Strong sl.).ppo'rt frolll government
Extensive sales net\\'ork and good relationship with retailers built through Raja
for implementing new strategy
es in fertile age group
Governlll- t' s foctl's on the fami 1 y . planning progrfllil
lreats
85% of Clngladesh citizens being conservative MllsUms, religious
i:1Jor'ty people in villages, only 9% in citjPs
Soc ia 1 and cttl tura 1 rea sons for not adopting prac l:i ee: no social seclI1'i t y or state
Pf'IlSiOIlS systf'Ill, natural disasters, dOW1'Y frolll bride's parents to bl'idegroolll
t
s
Transportation and travel difficilit
f
of PSI and Bangladesh government
roject -coITffc:i-I--corrsistlng of a el;ahman mId eighJl- members
Chairmaii-from Bangladesh government. plus four more members
Three memllers rroDlfJSI, OSAtD and UNFPA
GelteI"a1:-uu!tflager-fBangtadesh cItizen) nominatea -by PSI ,

8 salesoffices
PS>-dev-:1-S a stratez::g!, get approval and, implement
aborat' /
:' Bangl sh governmeil : encourage, promote and closely supervise family planning acti vi ty
D: fllnas th'e ent ire cost-, - e:"g:--' donate contraceptives, pay PSI managing agency fee,
subsidize
Local retail network: cash terms, financed by wholesalers, prefer quick inv.elltory
high margins
urban areas, :300-400 sq ft, wide assortment of drugs, not require pre
product or brand, consumer not allowed to select off shel .s
small, 3--4 individuals, 400-500 sq ft, 50- a
, shelf are
urban ai-cas, 300-400 sq ft, wide assortment of drugs, not rN lire pr'eSCTl pt'
suggests product or brand, conSlllller not allowed to select off shelves >J
to 30 plod small, rural areas, products include cigerattes, asprin,
softdrink and enclosures, 2040 sq f1, one person,
or provide advice
tOllch wi th doctors and hospitals,
highly respected, patient by medicine frolll
25000 hospitals, dispensaries, and sho*ping
recei ve compensat ion ,frolll goveT'nnren-t----
L
Competitor
oPGrated programs ('''Tab; ti", donnted by USAID): 20000 field workers spread
l hlf,;ui!LOlCL-the cOlin t ry, proyi de i" cell t i yes to 5000 doctors, --proY i de cash in cent i ve to fi eld
wor ,ers and forllIs include pills, condoms, s1 eri I izat ion procedures, IUD inserh on
01 her oDtl!.nizatioffs-W+th- 5qOO field workers, procure contrRcept i Yes and distribute
free of cost
Privertely held pharmaceutical firms with oral cont'raceptive pills ("Sultan"), collaboration
wi+h E11ropeall l::illd l\me-:r+ettn-Fi-rllls, call 011 doc tors WI t11 sys relll-t ic presentations
12%
or P har:mac i es
20 mil CO.!!ll]es jn fertile age group
-- -
Majority people iR villages,
Reasons for not. lIsing birth control: only ,6%" cited religion, major reason is ignorance, and
economics and culture
Not knowing where the line of personal welfare and social welfare can be drawn
f-lTgher rovar elless of 1Il belli dwellers ____
Differences a-f the men vs women on family planning: limit family siz!? stop
having children, preservce health, assure food-and clothing, peace and happiness in the
fami ly; e education
Muslims
Exhibit
')
r/
l Raja ./ I '--1Maya
Product
-,
packaged, various packaing forms with different qty
mil pieces thousand cycles
19.8 9.7 481
19,9 li.3 1021
1980 22 . 1098
1981 . 31. 6 ,02
1982 35.8 /' 591
r /
1983 50.4 V .......... 622 v
Associated with sex Ass5criaj;ed witk birth control
(lg(,er the counter consulller product Perct<VecW' a powerful drug
alld relaxed att i tude Nallle Grrl'h posithre cultural meaning, beauty
lP6ftive connotations: masculini tv, bravery and power
recogni tiol!, pictorially
L Charge a price to convey sense of value
V
Within the reach of majority of population: a cup of tea, a box of Ilia t ches or cigarette
,/
Place v Retail store network. sinall scale enterpreneurs: Pharlllncies, grocel'Y stores. pUll stores
/
ProllJoY{on Mass media campaign: reach the largetst number of people possible
v
Skip a1l intel'lnediate levels of influences jnc. doctors and go directly to consumers
Create ntlnosphere of fun and happiness
Radio. i>}"(.!SS, bi llboards. Iloster: "happy marriage",
"
confi dent choice of the pnulent family"
Unconventional marketing: street to street cam'assing, boats sail ad\'ertislilents, t-shiI'ts
AVerage spending of' $400, DOD, second IfH'gest advertiser
Ib.hiliLL!i
LI' ......... b ...... \ aVH .. -... .. ... _ ..........
US$
SM? O)'cl'lIting ell:lllmSes in Bflnl:lllriesh (1983) 100. 00
Opel'" t inc expenses on Ma"11 Iha In :}OO. 000. 00
AlIocntion of expcnditllrcs RIll io Aliounl c\'P Cost per (YP
R"dio :!OJo; 10.000.00 1:!5.116. B6 0.32
---=::-=:::::
NewsD.!lIle! SO. 000. 00 3 895.50
v
Using "lit i
NUlllhel' of coulJles in "1\'<'
Mill'S lIedill

PO!iter/sil!nboonl 16%
Point of nurcnllse ::!Olt
Others t9ib
Totlll 100 ..
:!O. 000. 000. 01) FeildI.' l'U! .. 1
FClIIlll e IIrban
Fell/de
Rural
Rlldio 85.50%
Television S.lO%
t.lO%
Nc.-stllUJer 1. 30$
Postet
-
7. !l01.
Fallil ... 1)I"nning 'aT 31.
--
1,-313.!H I. no
3:1.000.00
10.000.00
38.000,00
Itl. ODD, on
1. 800. ODD, 00
Hendeollnt
15. 561.000.00
9&1.600.00
236.600. DO
:!36.GOO.OO
I. 137. SOD. DO
5.751. ::!OO. 00
12. B56. G:1
13.673.70
16.965. ::!i
UIb"n
83. iO;;
19.00%
e.:;o:.;
16.30l!>
17. lo"
10.60';',
2. v.{
019.:!
f. ::!,I
ItSO I

en' of condom
err of pills
total nl' of contr
).1"t''O('ntllgl: of lIS6g
B50000
6::!OOOO
t-liOOOO
7.3510
lIelldcount lIe"dco\lnt Totlll
1.506. GOO. 00 1';.067.600.00
SS:!.OOO.OO I. B'16. 600. 00
225.000.00 IIH. 600. 00
::!!l3, 100.00 ;)30.000.00
311. 100.00 1.719. :00. 00
190.800.00 5. 9 I:!. 000. DO
----
300.00 8 * (] sales lIIahllgel ... 15 sales repl'l!scnth'cs+5 sales P)'olllotel's+5 wagons)
365.00
nit"
percenta!:" or USllge
cost Ol'l' GVP (assn.illl: I huul' 011 cach kJolP)
W \tMP!.
ettut-oi\.

10.00
1.:!3 l

b
16.69 t ( pei' c. 'fP -{Or dLTtV'(,l(f )

I"e()jl\c lIl>inr.: contl'accl)livC5 tl'i"l IBte
1.251,468.60 SlInlJOSC lout of 5
]35.725.10
33.927. GO
38. !l5!.i. 00
I::!B.566. :W
136. i37. 00

125 416: 85
13 572.51
:1 392.76
3 895.50
12 856.62
-13 673.70
Exhibii'1
Invenlorv tm'Mym' p HI :/' . lolesalC'r&Sclniv.-holesa1er
__ Retailer
3 piecl"s Unit prict'
SMP' s selling price
Whol[!saler
Semiwholesnlet
Suggested retail pdce
InvC'ntol'Y tnrllOvel' per year 5-6

llaya
Unit priC'l"
S)IP's se 1 t illg pri ce
Wholesaler
Semiwholes.llcl"
cd retail price
)'
Q.29
0.31
0.33
0.10
D,'Hi
O. 19
0.53
O. 70
Unit margin
Unit lll<1l'gin
0.02
0.02
O.Oi
0.0,1
0.01
O. r;o
,

11. 00
11.00
7.00
3. 'II
3.6:3
2.80
0.22
0.22
O. ,19
OV8stat Lyndiol, Ovral. Nordette
Turnover Revenue Unit prier Unit margin Turnover Revellue Margin -Unit price Unf marg:in Turnover Revenue Margin
50 2. iO
S.50 :1.70
o ,')'J
1.90 O. 10 S.'50 26.95 2.20 2.91 0.2'1 !i. 50 16.17 1. 32
5.50 2.92 O. :12 !).30 0.10 5.50 29.15 2.20 3.18 n.2-1 5.50 17,'19 1. 32
:1. iO 2. 15 :l.60 00 I. 70 3.50 2'1. 50 5.95 1. 20 I. 02 3.50 11\. '10 3.5'1
To: Robert Ciszewski, Executive Director I William Schellstede, Project Advisor
From:
Date:
Subject: Suggested Action of Maya in Bangladesh
Introduction
Owing to the mass media campaign backed by stable product supply, Population Services Int'l (PSI)
has made clear achievements in its Social Marketing Project(SMP) in Bangladesh; Raja( condom)
achieve a remarkable market share of but market share has
yearly from 8). Being sponsored by United States Agency for
Int'l as well as the local government, PSI should be able to explain for this
he purpose of this is to assist you with a timely
lL.P.roviding a compJ;l'h sive situation analysis, /1) and evaluating the
possible alternative courses of action based on strategic importance, and (3) a specific
recommendation which inc1udes a feasible implementation plan. C -----
Situation Analysis
External biggest opportunity
custemeri4tiSestimai:ed that there .. in the fertile age group, ;;>
thi; is using family J) In aOOition, a
revealed that the religion not seem to be high; only 6% of the recipi...nts claimed religion
as the,..rime reason to avoid family planning. The marke; for and
and for the past5_years. However, the customers' concept of contraceptives being a
strong drug has a negative effect on its sales. On the contrary, a SMP survey revealed the different and
-----------------------------------
strong interest females had about family planning.(Ex. 5) The details of the situation and 4C/4P
ana1ysis are provided in Appendices 1 and 2.
companY's,com:eti.tive advantage is it .the
projects such as hIghly affected by governmental deCISIons. In addItIOn,
,
we dedicated to this project. The continuous and
sound supply products as wen as operational expense
funds are of big i1etpcmd-are-ess-efifiaI parts to our competency. OUf most critical weakness is that we
I
wakness must be overcome. In addition to doctors our product Maya to be inferior and
customers, which affects the
..
1 and 2). Our future success depends on of
.....
stakeholders related to this
1
Definition of Problem
The clear and present challenge that we face is to to take for
successful in th-e-Barrglll<llllin :::!,et'" which should correspond to Gur mISsion, out also at the slI!1le
time be able to J Project Council. LJv
Identification of Alternatives
The two alternative courses of action for the current problem is as fo.llows:
(1) the consumer with intensive communications as Ciszewski suggested(p.l 0)
(2) the RMPsas Schellstede's recommended (p.IO)
Evaluation Criteria
As a non-for-profit finn PSI should be able to deliver value not only to the our
products but also our s!l.nSors. It to since PSI would have t:.:ake of
the the opponent's are
or their to attain. I difficult goal can be
attained by pursuing objectives:
(a) Expanding the market share through either cusfwefior new
custom:,rs who not use family planning products
(b) Gaining understanding and approval from the Project
--
We should evaluate the two alternative courses of action by asking ourselves the following two
questions: (1) How effectively will this acquire new Can the costs incurred for the
change belustified by tB-Pr6jec;counCi!? .
Evaluation of Alternatives
The pros and cons of each alternative are assessed below.
(1) , ' 0 directly to the consumer with intensive communica -ions
Pro';---- ------
Able to overcome PSI has with doctors
Mays is not recom<firenaicfb; do;ors and RMPs, and many times a customer wiJ] cease
........ ----- -,..
using Maya due to their recommendation.{p.9) However, if we will be able to provide them
.r ' .." "'----. --
with the right information we will be able to overcome this.
PSI will be able over the
C
The current organizationiISystem as wen as the channeling does not allow us direct access to
,.,..==:'
marketing and sales. (Appendix 1) Under this action plan PSI will be able to have more if not
"""--
direct control over its marketing and sales p-Ians since it would not have to rely on its
distributors and other collaborators.
2
, "
Cons

Even witli the help of volunteer field workers it would be difficult to approach our customers


since the pool offield workers are so limited(5,OOO 2) Most of the target
-
is illiterate so there are limitations to what we can use as means to pro..Yide them with
-

costs; currently they are paid by the organizations, which we would
In additiOnlf we dectd"eTo have sales related
to it wouldalso mean addiliOrlal costs in terms ofHR costs as wel1as
training to
access the
The issue of retailer's low willingness-tOselrwil1 not be overcome

Even if PSL.deGides to directly C1Jmmunicate wifli"tfie customers, we can not sell the products
directly; it would require massjye_capitaUnv.es.tments to recruit sales So we must rely
on the not attractIve to sell. to
Pros part of "Detailing the RMPs" for more explanation)

\ -- /-

Access to a huge.-sa-les.


There ae:ooo is equivalent to pharmacies(3 0,000), general stores( 40,000),
and pan store(3l),OOO) all put together. In addition, RMPs have access to professional doctors
and hospitals so we could anticipate additional promotional effects in the urban area because
currently the doctors believe that Maya is a poor drug. (pJ) _
Can make direct contact with the actual users(female) --.
Contraceptive is used my females. However, in Bangladesh most purchasing is done by men
as in other countries of the subcontinent. This explains why pan stores were so
effective to sell Raja, but for Maya this is a clear mismatch in placement. Especially
contraceptives are opt to have side effects in the first cycle so the direct consumers would
want contact with the seller or professional. RMPs are just the right person because (l)they
come to your house and (2)you know them very well and have trust for them(p.5, 9-10)
r ,
CutTefltly a retailer was not encouraged to sell Maya in comparison to to a couple of
reasons: (Ir ventory (2)Raja would bring
. "
and sales on a C ' Ie-Years PrQte.c.tion(.Cy.:p) basis(Appendix 4), (3)lf we price Maya to the
level of the competitors' the margin that it would bring to the retail greater than
3
competitors(Appendix 5) Especially with their business model to charge the client not for their
consultation, but for the medicine, this would definitely have a big impact.
Cons

eRa
Because IS also an Important nroduc.LthatJ?SLshQuld...market, we can not do away with
----
the currently retailers. Therefore, we must keep dual retailer structure. I _ l-1 A f I
, - ,-- VU

with RMPs as well as additional sales persons will be required.
<::::::==

Customers have to pureba-se1\ifaya at a higheipnce
To subsidizing or rewarding the individual,

customers have to pay-a-higll-er price for Maya, which is not aligned tolTSA1D's goal.(p.l0)
1--
Recommendation and Implementation Plan
Recommendation Based on the "Evaluation of Alternatives" analysis above, it is strongly
advised that the the suggested Implementation Plan below.
q C __ :J
. t fpf.-"'Plementation Plan The price, promotion, and placement of Maya should be rearranged so that it
provides better values to all related stakeholders.
vi \ xf v Pricing and margins of each stage of distribution channel should be as the "New Price for PSI" in
Appendix 5 where Maya's suggested retailer price is 4Tk. As mentioned above, this would ensure the
, 'ifetailer to promote the other contraceptives. In order to do so,
we would need the sales representative and sales to make and build a
(Mationship, provide infonnation about This would
UJ defmitely require additional manpower which would around (SMP

expense in number of sales and marketing force at

f- .\\ \) SMP J300 people)).
'V'P. will not like this it. is subsidizing t PSI as well m __
':'1\.1\ project according to cost effectiveness. H0w.ever, would like to make the following arguments:
V--
V' IS using the family planning
IA}./V consfering the USAID's goa\just providing products at the lowest cost should not be
at
(" I ",,' must pay to perceive the value of the is essential. In addition, after all this is a
. product that needs to go through a channel giving its benefit(margin),

whichcurrent1Y Maya lacks. It-was also in the case received by retailers
<: -:::;::::---
'Jt- only afterit priced, and not free.(p.S) Wouldn't it really benefit the pnblicin..general if

4
the retailers are more willing to promote and sell contraceptives since the ratio of use is so
low and the lack_9 owledge is the ri1ain reason for not usingrrunily planning products.(pA)
(2) society till! .'
Even if there is excess value that we the customers, margin goes to
the retailers:-Ofcourse these'are directly
targeting. However, in such a low develo.Qed economY-,_e_c_oJJ_Qmic transaction as such could
----
benefittileCountry's economic system through stimulation and circulation of money that
.--"'--;..
otherwise would have at-been
(3) PSI can-tOoK' or cost .
/' ' Since USAID is the responsible.!.or most..Q!.!.he expenses and product sourcing ofSMP, it
could-feeIourdened with this proposal. However, PSI over time could try using its managers'
, : ,'('" e'xpertisemtlus field and sponsors. In additiOrlm we
V
/'
(" ''\ t Wv could .
r, V-i' According to exhIbIt 7 most effecttve means . ___
1\ However, in case newspapers where we delee 25% of our expenditure is;;or. ell""'--
received Exhi'Ct 9 show that only 1.3% and 16.3% of the actual users of Maya
in rural and areas respectively were aware of the newspaper advertisement. This is
equivalero $50,000 annually using the proportions of the current advertising eXp'enIIiture.
Using assumptions mentioned above, we can add at least 16_sales-promoters or sales
,------
representa ives.tQPLQill.O_te...Maya-tQ-RMPs:-Tneeffect will be even bigger considering that
more than 90% of the population lives in rural areas where the consumer has not been able to
increase awareness from the newspapers.(aw,reness consumers in rura] were 7.1%)
I understand that USAID will find it hard to Howe.ver-,-as-theJ.ll.arketing
PSI sh:ld be able to point out clearly_to tfieflTo'ec .
e ctly why Maya is not selling. And more importantly the . one-tenth
customers;.:e The mission of US AID and the .
L---'
t, use famIly planmng. We m'usrnorforget that even though tFie S '-&1ti the people Involved
ribt profit but to
w olesalers are purely entrepreneurs to whom Maya is nothing but a product that need to make
c::: -
s se to carry and sell. In Bangladesh where we can not do much about the aistri6iffion system
----- ot to mention tne sales customs where customers are seldom allowed to touch the actual products
--
their role is critica1. I strongly believe that this course of action win bring quick and definite
values to our customers and would be at your disposal to discuss the contents of this memo or any
other questions that arises from its contents.
5
Appendix 1. Situation Analysis
.LJn.., ... relationship with the Bangladesh
government: Agreement in 1972 to carry out
program of family planning through social
marketing (p.2,3)
Director(Ciszewski) and project manager
(Schellstede) has extensive management
experience with development projects in less
developed countries (p.3)
$400Klyr advertising budget: 2nd largest in
the country
High execution ability with the help of the
general manager nominated by PSI(PA)
Relationship with 80,000 retailers(p.8)
Donation of good product by US AID
Accumulated successful experience in Sri

Only 9% of the target customer(20 mil.) is
currently using family planning products
- Total CVP = 1,470K(Ex. 8)
- IUDs = 75K(p.7)
- Sterilization = 300K(p.7)
Assuming that a couple would use one of the
four family planning means since all IUD and
Sterilization is permanent in a given year
Continous growth of contraceptive market
CAGR 6.6%('78-'83)
Despite hight percentage of the population
were Muslims, only 6% of a national survey
recipants said that they would not adopt
family planning practices due to religious
Women are more interested in the family
planning and for more diverse reasons (Ex. 5)
O/DleoDle in the organization including
man al personnel (p.2) --7 limited
Doctors' perception of Maya is bad(p.9)
Recommendation form doctors are important
for the consumers' decision
No direct control over sales/distribution!
marketing channel
Sales is managed by a General Manager who
works with 8 area managers p.3-4)
No control over product manufacturing or
selction: product is solely sourced and
by USAID and PSI only performs the
packaging(focuses on marketing activities)
Lack of fund(pA)
Customer's concept of contraceptive pill as
"Strong pills" and associated to birthcontrol
whereas condoms were associated sex and
were regarded as commodities --7 limits
','
Business in very dependent on the
government and political issues (ex. Short-
lived Mexican case) (p.2)
Free products available from government
6
Appendix 2. 4Cs and 4Ps Analysis
Access to Doctors
Reason for not
adopting birth
control
Custome
characteristics
9% of the population urban area
Prime target(est.) : 18.2 mil. couples Prime target(est.) : 1.8 mil. couples
Mostly illiterate: male(73%), female(88%) (pA)
Spiritual doctors, Medical practitioners Western-trained physicians
Ignorance of the birth control methods Urban dwellers portrayed high
(only 6% didntt use birth control for of family planning (Ex. 5)
religious reasons) .
Cultural reasons such as dowry required for daughters at marriage, high death
numbers(lOO,OOO/yr) from natural calamities encouraged giving birth to
Dependent on Medical practitioners'
(RMP) recommendation (p.8)
Tend to want more children than
urban
people(Ex.5)
Family planning is more interpreted
as
-Number 30,000
- Store Size
300,.... 400 sq. feet
- Products medicinal
carried preparations,
pharmaceuticals,
- Consumers' Not allowed
access to
products
Dependent on the doctor's
recommendation
Also have the concept that family
planning is related to having a small
happy family(not so in rural area)
30,000
400,..., 500 sq. feet 20 -- 40sq. feet
Family- owned Open-door general
business store for rural area
50-100 items 25-30 items
Half of the stores cigarette,
are grocery stores convenience items
Rarely allowed More likely
Place for men to
"break
u
from their
daily routine
(continued on the next page)
7
Doctors

Western-trained
physicians
Spiritual doctors
Rural medical
practitioners
(RMPs)'
125,000 doctors, of which 5,000 held fonnal medical
education and excellent credentials
Practices and lives urban areas
20,000 spiritual doctors who practiced mainly in rural areas
Though unscientific, their practice was valued by patients
100,000 rural practitioners who kept in touch with
professional doctors and hospita1s
Operated on house calls with no charge for consultation,
but charged for the medication
25,000 field workers(20,OOO : government-related 5,000 : volunteer
organizations)
; literate, well-trained, and motivated to communicate the benefits of family
planning, compensated from government or social welfare agencies (distributed
free condoms and birth control pills)
Extremely good relationship with the government who wants to control
population growth
But SMP is not the only birth control the government is supporting
It has other projects as well as distributes free birth control products
Provides PSI with free birth control products.
But also provides similar( or same) products to the Bangladesh government.
(continued on the next page)
8
4Ps ANALYSIS
Packaging
Manufactured by US LJLJI-"'LJ donates the pills to Ovastat has roughly
Pharmaceutical firm equivalent qualities to
Localized design
perfonned at the port city
Syntex's product
NA
r,I',', I::' ----.-.--- . - . -" --- - j
Per cye1e(28pills)
1/
0.8 Tk(p.8) NA
Most likely to be free
2.4 Tk--8.0 Tk
*estimated price from data
provided in case(p.9)
- ,-,----- . -- .. -- --. --.-. ,--.-------- --- I
/
V'
Recommendation
from doctors
80,000 retailers
: Pharmacies, general
stores, pan stores
None
Distributed through the
field workers
Hospital related to
governments
None
Doctors prefer the foreign
brands to Maya
f,'"
.- . - - . -
Motii /
Motivate the husband and NA NA
wife to discuss frankly
about family planning
Mean.s"used Various methods covering NA
radio, newspaper, cinema, But PSI would be the most aggressive in promoting
poster used to maximize since it is the 2nd biggest advertiser in Bangladesh.
awareness (Refer to Ex. 7 (p.S)
for detailed expenditures)
*Weste.rn-traineJlphysicians-are-mjt acruardirect channels since birth control piTIs canDe bought-without
prescriptions. However, the recommendation and consultation from doctors(including spiritual doctors
and RMP) play an importa:nrrole in the consumers' decision to purchase. --::::;;,.
--_ .... - .. _ M
9
1
Appendix 3
/'
__ -!
Interest Achieve 0% popt!..atinn Involve in social and Provide birth control
growth economic activities in less information and products
developed countries to people to needed to
avert birth but didn't have
access to either
information or product
Means of participation Direct Indirect Devise marketing plan
: programs that it ran : donate the acquire government
Indirect contraceptives, pay
approval implement
: sponsor projects like agency fee to PSI,
the plan through the
SMP subsidize a large part of
Bangladeshi General
SMP's operating expense
Manager
Concerns regarding 85% of the population is Whether their donation is
birth control projects conservative Muslims well managed generating both the Council as well
like SMP (priests believed family the most benefits for the as the marketing
planning is an act against people in need (therefore organization
God) evaluates us on cost
effectiveness)*
Importance/Power to Iml20rtant Iml20rtant -Has to balance the needs
the SMP and the -Had the right to restrict
Though not participating and concerns of the
Project Council aspects of the program in the field, USAID is various stakeholders of
that it considered responsible for much of the Project Council
"sensitive" the subsidizing including -,Does not have real power
-Had control over 5 out of
the product(Raja, Maya) "overll the Council
9 Council Members members *
, Most of the data above are case provided data(p.3,4,8) except the (*)marked, which are reasonable
implication that I drew from the data and situation provide in the case.
Ciszewski described that we have to "lobby with the members of the council or USAID
II
10
".
J
Appendix4 /!


-----
7 It is clear tha on-a-vear-lv-ineomelprotit7iiiifs,riuii;;;'s will feel more encouraged to sell Raja
rather than Mava
- I
I- I
,"11' -', I
V Wholeseller
1 cycle(28 pills) 1 cyp* (3-piece-pack) 1 CYP*
Purchase price 0.45 Tk
Selling price 0.49 Tk
Profit(%) 0.04 Tk
Semiwholeseller
Purchase price 0.49 Tk
Selling price 0.53 Tk
0.04 Tk .l6%)
Retailer**
Purchase price 0.53 Tk
Selling price 0.70 Tk
Profit(%) 0.17 Tk (32.08%)
5.85 Tk
6.37 Tk
0.52 Tk
6.37 Tk
6.89 Tk
0.52 Tk
6.89 Tk
Purchase price 0.29 Tk
Selling price 0.31 Tk
0.02 Tk
Semiwholeseller
Purchase price 0.31 Tk
Selling price 0.33 Tk
0.02 Tk
Retailer**
Purchase price 0.33 Tk
Selling price 0.44 Tk
Profit(%) 0.11 Tk
9.67Tk
10.33 Tk
0.67 Tk
10.33 Tk
11.00 Tk
0.67 Tk
* Couple Years Protection: it is estimated that 13 cycles and 100 condoms were equivalent to 1 CYP
**General Pan Stores are the usual retailers. However
t
regarding the medical care system in Bangladesh,
Rural Medical Practitioners(RMPs) are also possible retailers because they charge their customer not by
their consultancy but by the medicine they sen. (p.5)
Appendix 5. Margins Along the Distribution Channel at Competitors' Price
7 Com ared to the current"mar in 0 33% retailers would hi hi
Mava l -- .
re er to sell brands other than
------
Whoieseller
Purchase price 0.45 Tk 0.45 Tk 0.45 Tk
Selling price 0.53 Tk 0.53 Tk 0.53 Tk
0.08 Tk 17.78%) 0.08 Tk 0.08 Tk
Semiwholeseller
Purchase price 0.53 Tk 0.53 Tk 0.53 Tk
Selling price 0.62 Tk 0.62 Tk 0.62 Tk
0.09 Tk 0.09 Tk 0.09Tk
Retailer
Purchase price 0.62 Tk
Selling price
Profit(%) 6.38 Tk (548.79%)
Comparsion to current**
* Selling price has been adjusted to the competitors price. (lOx and 5x Maya's price) Margins for Whole/Semi
-seller is assumed to double from the current margin's of Maya to promote sales increase.
** Profit(%) in comparision to the current margin size (Competitors products currently give retailers
16 times the margin that we are provding so if we price it at around 3.8 Tkk we would be providing
identical margins to the retailers. '
11
,
"
To:
From:
Date:
Subject:
Introduction
Phillip Harvey, Founder
Robert Ciszewski, Executive Director
William Schellstede, SMP project advisor
Course of Action for Maya contraceptives
SMP put on to distribute, and sell
.,..-,.
With several years of intensive prodlJct promotion, distriblltion and offering_substiJized contrac;epti'tes, SMP

has not been successful in establishing the value e s of Ma a in the Given, the quality of
life and the level of our primary user's income, eeG-te-eeme-tJp-wit specific plan of action that will
encourage 'Bangladeshi to accept and use our product, Maya, and reap the cost and quality benefit
of a product available in the market.
,--
1
Identification of Alternatives
In tackling the issue identified above in a limited amount of time, we should focus on analyzing and
(1
(2)
'r-ectly to the conS!lmer wjth intensive comll1Y .
Evaluation Criteria

A variety of considerations, such l! and cultural impli6atkms------
and affordabiHty, may have-a large impact on individual's choice of sped' ___
these f" SMP developed rtnership,s and collaboration among it akeholders: 'SAID,
----r-
J.t'.;) .... n., ution channe ;9/address social, cultural. Ie ' IC im!ediments. The
... as Maya sales had declined the 908.1 of 1)
nc(as6 market acceptance 0 a on ral contraceptives, family g,ing
infoFm.atiruLa - 9 birth control at a price through local re

by the program that would iety.

consiiderea in evaluating the alternatives: .==---------=-=- - .
\i1) Does the initiative create a positive and relaxed alii ude planning?
(2) Doe-S-tneTfiitratlve motivate both the consum netrade? ----
(3) canthe"" cost of the initiative be justified in terms of adesh Society?
,
Eval uation of Alternatives
The pros and cons of each alternative are assessed below.
(1) Go directly to the consumer with intensive communications
StrateSli wi!!.. follow the same fonnat and use its existing advertising
actIVities at no additional cost. ThiS new initiative Will only contain intensIve information as
'-
e of Maya, its side effects and what to do about health and social
benefits of using the product. People will understand that Maya is a quality product sold at a very
low cost.
----
;;.. Through direct Communication better educated in terms of choosing the
4esf use. They the monthly training
that they will receive from the Maya CO!!!J]1!Jolty. :rh-is-wUl Jncr.e.a.se husband-wife
---...-----
------
communication regarding family-p-lanning-whish-subsequentIY'leads to joint decision-making.
---- ------
> /Maya Community Volunteers will be able to persuade a small portion of the target community in
they are assigned educate. They can even-go-from--door-to._dOQf with pills to
emphasiz...e-or:Hhe-value of Maya,
> will influence people's behavior which can change their perspective
open on how they view the medicine since its being discussed in public.
Government Benefit: This initiative will result to a minimum of 900,000 projected birth averted

2
<
CONS: /-
}> use the same training cost with the RMPs. training will be an additional cost
on top of the 3a)
);;. Limited Number of Volunteers. There are only 25,000 field workers that we can tap on for the Maya
Volunteer Group. Ratio would be 25
1
000 vs 20M couples in the fertile group (Appendix
3a) --- - -----.
'oirect mass information initiative through Trained Volunteers does not use interpersonal
regards contraception- as a product rather
----uian .. a social or health "
----
);;. Contraindications are not monitored and retailers do not have the time, expertise or interest to
- - ------ ----
explain correct use or discuss what might pe type of contraceptive methods for
. )
Not all people will have the willingness to discuss any Sexual Activities or
He;:3lth with anyone other than their husband specially outside their circle of trust.
d;tors will always have- influence -.. -
Possible Resistance Gro : overnment,
(2) Invest on Detailing the RMPs
PROS:
Represents 80% of the 125,OQO doctor population in the Medical Care System. In addition toJhis,
... _'O _ ..
(Appendix 3b. Communication and Sources of Messages on Family ... Planning, Family
Planning Worker' E.ybJjc Contact has the l:lighest--mJm.ber of reached villagers. Training them will
give SMP wide scope of coverage in information dispersal.
RMPs-Gan-be a lecommendatlon channel. RMPs are respected and regarded as a friend,
" by man.Y-\lillage-peeple:-they-ean-serve-as -the experts and influencer who
explain and discuss of commonJlI.nesseS1elaterLto the side effects. With the RMPs
help) we Can penetrate those groups of "people who are suppressed and very traditional.
By helping RMPs with their medical entrepreneurial activities) SMP could lessen bad publicity and
/ .
//wrong anQ_a_cc.usations...about-the-..effects of contraceptives. Through RMPs, villagers
contraception as a social or health service by appealing as reproductive health instead
of birth control which subsequently leads to joint decision-making in purchasing Maya. In addition to
that, approach will be more personal and contraindications can be monitored by each RMPs. This
woy,ld not only increase the cycles purchased ov r:..time-but waala also support-stlStaio bility of use.
only be 60,000 USD for training 1 . MPs,
les er ear per RMP (Appendix 3a)
}> <eaiel+1I11eAt B Aefit7Thtslriitla Ive will result to a minimum of 1.2M projected birth a . it":
. C\J
Increase in Motivation to-Wholesalers, Semiwholesalers, Retailers due to an increase of 1 M, 1 M, 4M tV'
Margin (Appendix 3b) I/"'"' (;..PJ--
3
CONS:
Bias over referral since they have association with professional doctors whom they respected. With
- ... -
e availability of substitutes and minimal djfferentiatior:l-Of produc.ts._<:m:Long other RMP should be
motivated very encourage fertile group to use it instead of those from the government and
other competitors.
RMPs can of promoting Maya and
L-mforffiation disse . t.i.GR-O.Qts side/effects. I
Possi; Resistance Group: ctors wQ.ukt--react on the importance given to RMPs. Since -
- ------- /
// detailing wilt be focused , some doctors will feel neglected abouttneit opinions towar.tJs
"'--tF .. ' their atie ople would be more comfortable asking for RMPs help with the s d V'
contraceptive. PSI will also be one of those who will resist on the project.
Recommendation and Implementation Plan
Recommendation:
Given the limited resources and the need 'to maximize the impact of family planning efforts on women, my
recommen('fation is" to reposition_ the QfQ9ram thro'lgn an..:t.b.e..3ural Medical Practitioners. The role
of the RMPs is best suited to meet-famHy-ptannmg needslJf-poor and rural women. In addition to this, the J
following criteri ""'---used recommendation: ... /
1. Irst. and relaxed attitude for
rapport Within the community. Unlike the first option. we will bL
able to influence villagers' behavior motivate them/through the traditional "teaching method" Sinfe
the approach will be more personal and they will be dealing with someone they respect and rega d
as a friend. RMPs will be responsible in providing information regarding the product from its use p
to how to deal with its side effect. They would also take part on counseling either the couples or tl' e
wife alone in terms of the health and social benefits of Maya. RMPs can arso provide means 0
provide those wives who wants to use the product but are to purchase it because the
of getting in public. V
2. Sec I by the couple's knowledg.;::8bout the product and promoting safety and bene
::;;;:
o to an increase in the margin of a I
distribution channels. (Appendix 3b

3. Lastly, with -Is-hlifrative
t
an expected 0 birth averted at a minimum and will n t
)pGur any additional_.cost since the initiative will the--exrsttrrg- allocation provided.
<-(Appendi-x-3a) ..---J \
Implementation PIa "
Stage 1: ral Medical for
product etailing-Gjt--Maya-sa1es representative Deta.iling will focus on instructions in how to
proper se aya. its potentiaLside-effeets-and-what1crdcrabotrHhem-:-lA-addition to this. benefits such as
increase in the they will
get in promoting the product. TheJJIOLacLwilLlasUoL5.m.onths covering 5.000 RMPs every week. Training
will be a h;if day certification. Program will run fr..omDecember-2QQ8-te-May..2QOg:'---- -
----------
4
tAl
BUJ1get Used: Training budget of USD 60,000 from the adjusted Adllertising budget (Appendix 3a) since
RMPs will also-serv"eas a channel to promofe the product as well as providing consultation to existing or
new users.
Desired in 5 months. Each RMPs will receive the Maya Pamphlet along
, -
with a certificate Of completion of the project.
Monjtodng-Committe
e
/ Stage Evaluator' Follow lip an each done by Maya Sales
Representative. Report will be...submitted to ea
Deployment will happen week by week starting first week of December 2008.
e handling their own community based programs and will be assigned to help specific
primary health enters tOchec
7
1:von their peers-o .... vl(rclgers. Each RMP is meet 1 villager per day

everytwo weeks or 8 couples (either Flew users or existing wn-o-exp-ertenced side effects) .
./
1/ None. No Budget win be provided since RMP will start to get the Margin that a normal
Yj)On selliflg' MAYA (Appendix 3b) ,
encouraged at least 1 couple per week in the area assigned to him,
I PSI call be adlhssetl by several phases of the initiative and
th; benefits in terms of increase in sales and coverage as compared with initiative.
Monitartng Commltteel Stage Evaluator: Follow up on each RMP's performance Will be OOAe-by Maya Sales
- ---
Representative. Report/will be submitted to each Area Sales Manager
,. 2......... . -:
Doctor ferrals: Alth6ti'9h RMPs are now more equipped to handle the side effects and
, res . . I Ps will still need to seek I e to their trusted doctors specially those beyond the
building better relationship between two medical
practitioners can even share best practices among the fields that they specialized in.
---1Hrn,nJ oring Committee! Stage Evaluator: Area Sares Managers will conduct a performance report on the
knowledge shared, improvement on sales and how effective of the Initiative was in terms of CYP.

. / . J
I - Price: It is j erative clients, especially
'-elie S In rural areas. By keeping the -price-;-<we are provlaTng-value-fb-arrof our collaborators giving them the
motivation to sell Maya. By pricinQit a litlle" Tesser than a commodity would project a sense value to the
customer instead of giving it to them for ---------
without prescription among its distribution channels: phannacies, general
< care systems (ocal stores. --
Comrnunic . on the following non-traditional promotion. SMP will only use the
effective mass media t have bei," using fof tne1Jfamily-plaAJling. products: radio, cinem a,
s. (Appendix 3a), __ ----- _________ _
5
Appendix 1. Situation Analysis
- -
-
/
....,.,.Internal AnaJysis

PSI had Strong RelationshiYswith Stakeholders:
Government and USAID
Strong Product Awareness through Non-traditional
communication channels: attention grabbing
messages and symbols
Effectively use the local stores at convenient
locations in delivering subsidized contraceptives to
the potential users of contraceptives.,
Keeps client anonimity since product is available
without prescription
Maya is priced 5 to 10 times lower than other Oral
Contraceptives available
Low acceptance a highly subsidized product
Unlike Raja, Maya is viewed as a medical product
which should be used consistently, it is also viewed
as having possible side effects to its users
Information about the side effects of Maya were not
made available to the public.
Low Price and Product Availability reinforce Maya's
poor quality image.
Collaborators such as volunteers, RMP and doctors
were not given sufficient detailing about the product.
"..-
Provided couple the means to see more value in Benefits accrues only when large number of people
. won't have to seek help from RMPs and doctors for
using Maya since they are not getting it for free. It t' d . . ... f 'd ff t
/' . consu a Ion an mqulry g..SI e e ec s
Lower incomes I<?ssen abmty.to m'Otivate for
purchasing contracepthle-a1id has to compete with
Bangladeshi would rather purchase rice or other
Competitors' products are priced 5 to 10 times
higher than Maya,
More than 90% of Potential Untapped Market (6.2%
Total CYP of 10M women in the fertile group)
Women finds the value of using Maya and are ready
to take action in purchasing it, however many of
which are embarrased to buy it in public and 80% of
all products were purchased by their husbands.
Low Retail Motivation to Sell Maya is a result of
lower margin as compared with its Competitors:
such as Ovastat, Lyndiol, Ovral, Nordette,
Training Opportunity to 25,000 Educated and
Literate field workers and 100,000 RMPs
things.
Strong Cultural and attitudes barrier which creates
skeptism among potential users: Birth Control is
against the teachings of Islam, Large Family
Economics View: Bangladeshi people think of many
children as more hands to work, Discussion of"
Family planning between target users (Husband and
Wife) were not practice.
Early Adopters would be caught up in a
disadvatange position if the project won't be
successful in encouraging everyone to do family
planning,
Exclusive realm of the medical practitioners and
RMP which are the integral part of the healthcare
system for the untrained Bangladeshi communities
6
"
Appendix 2. 4Cs and 4Ps Analysis
Proposed 4Cs
.... '.
Customers:

La ,Come married
/ omen in the rural area of
reproductive age who has
the intention to use Maya
Customers Needs:
What needs do we
seek to satisfy?
Jnitiatiorl User:
Recognize Value of
Maya as an Oral
Contraceptive
Decider: Choice Maker
Influencer: while not
making the final
decision, have input to
it
Purchaser:
Consummate the
Transaction
and wants to limit birth
affordable means for birth
control for family planning
which is readily available'
Low income married
women of reproductive
age and RMPs
Low income Couples I
Low income
RMPs
Bangladeshi
Husbands(80% of all
product,s including those
for females were
/
pur9nased by

of Higher
. Margin, Retailers are
Competitors Strength: t' t d t II th .
mo Iva e 0 se elf
product
Sell at a higher price with
Competitor's Strategies a perception of expensive
means quality medicines
/'
/
/'
/ --

Com pany Strength:
(Competence the
company has to meet
those needs?
Company Weakness
directly to the
consumer in terms of
conceptives distribution
and promotion
PSI's SMP is regarded
the fourth program
supported by the
Government of
Bangladesh and
funded by USAID
PSI's SMP low
acceptance of one of
its product even after
investing on promoting
product (Maya)
Wholesalers
Downstream Trade:
Cost Structure
Downstream Trade
(Retailers etc): Nature
of their relationship
with Competitors
Upstream (Supplier)
Margin: .02Tk per
pack, Semiwholesaler's
Margin: .02Tk per
pack, Retailer
Margin: .07Tk
Retailers are more
motivated to sell
competitors product
due to higher margin
USAID provides
funding for the success
of PSI's SMP
7
Proposed 4Ps
physical product
brand name
company reputation
pre-sale education
convenient availability
product info
Lot Size(Ability to buy
small #)
Availability
After-Sale Service
. Iy Subsidized Oral
Contraceptive provided
by USAfD
Maya
PSI is regarded the
fourth program
supported by the
Government of
Bangladesh and
funded by USAID
RMPs will give Q&A
session to couples to
j product or
how to deal with its
side effect
Available without
prescription through
accessible distribution
channels: pharmacies,
general stores and
medical care systems
loea( stores.
RMPs will provide
proper use of Maya, its
side effects and what
to do about them,
health and social
benefits of using the
product.
Maya can be sold
through Pan per cycle
which contains 28
tablets
Effectively use the
local stores at
convenient locations:
pharmacies, general
stores and medical
care system s local
stores.
RMPs monitors
contraindications
----
Promotion (Marker 9 CommunicJltions,
Aquirin or Retain"ngl
Task and Tool. 90% of Potential
Market. Who are e Couples who have not
addressing to? been using Maya
Task and Tools:
Mission- Objective,
Message- Specific
Points?
Task and Tools: Media
(Vehicles will be used
to convey message)
Task and Tools:
Money- how much will
be spent in the effort?
Task and Tools:
Measurement impact
after the cam paign
Personal Selling: Sales
Person Role: Gain
New Customers!
Solving Customer's
Problem! After-Sales
Constructing the
Communication Mix:
(Push)- inducing the
intermediaries
Safety and Quality of
Maya
radial cinema, press,
TV and billboards.
200,000 USD
Increase in CYP and
number of cycles sold.
Acquistions of Potential
Couples to trust and
use Maya
With the RMPs
expertise we are
pushing the product to
our customers.
Pricing (Per eption of ValuetoMaximize
wriS)
Pricing Basis:
Sensitivity to Price?
Low income couples
wont be motivated to
buy Maya since they
can get a substitute
from the Government
for free.
8
..
. '
Appendix 3a. Cost of Initiative Analysis
Existing Advertising Expenditures
% of Allocation
Yearly Expenditure Monthly Expenditure
Allocation Allocation
io 20.00% 40000 3333
Newspaper 25.00% 50000 4167
Cinema 3.00% 6000 500
Poster I Signboard 16.00% 32000 2667
Point of Purchase 20.00% 40000 3333
Mobile Film Unit 6.00% 12000 1000
Television 10.00% 20000 1667
Yearly Advertising

)
Expenditures
//
/,.
Monthly Advertising
16667
,e---------
Budget
....
/
\
\,

--......
-
--
..----
EffeEti\t8AeSs-l>Ttfie (RuFal}---'-'

(F:20%, M:
-.
Female
--'-
-Male
800/0)
,/
v
87.66% 85.50% 88.20%
""
/r<lewspaper
(
4.98% 1.30% 5.90%
"-
/
..
Cinema 5.94% 1.30% 7.10%
i
Poster/Signboard 10.06% 7.90% 10.60%
{ POP 0.00% 0.00% 0.00%
\
Mobile film unit 0.00% 0.00% _.-0..96%'"
-.
12.34/1\ 5:300/0 14.10%
RMP/Field worker 24.96% 31.600/0 23.30%
--- -
Maya Community
---------------=--
Initiative
--

Yearly 'Expenditure

/
Allocation Alloeal
Radio /.
/
20.00% 40000 3333

Newspaper / V 25.00% 50000
.
4167
\
Cinema /
/
3.00% 6000 500
1
Poster VSignboard
;
16.00% 32000 2667
/
Poi nt Purchase 20.00% 40000 3333
/
/-
obilb Film Unit 6.00% 12000
Training Cost

------
(Maya with
i0.000k 1667
Take Home

.....

Yearly Advertising
USD 200000
Expenditures
c::::=
Monthly Advertising
USD 16667
Budget
Additional Volunteer
0.7 per Volunteer * 25,000 Volunteer = USD 17
1
500
Training Cost
-
-::-
.....
9
J
/
Total Cost including _-- --U D 217
1
500
Training and Adv rtising-
/
.'
/
--- -' .
Training
(

% of Allocation
Yearly Expenditure Monthly Expenditure
Allocation Allocation
"'-
RadiO 50.00% 100000 8333
Newspaper 5.00% 10000 833
Cinema 5.00% 10000 833
Poster J Signboard 10.00% 20000 1667
! Point of Purchase 0.00% 0 0
Mobile Film Unit 0.00% 0 0
Television 10.00% 20000 1667
RMP Detailing Training 30.00% 60000 5000

Yearly
220000
Expenditures
Monthly Adverti .
,
18333 /........---

B d fD [ - --.-
e-------
.-
u gel 0
RMP (25% of Advertising = 0.6

Expenditures/100,OQ _ . ---- ___ ------.- /
----------
/

<-------"
"
Initiatives
Cycl es Used Per Year
Value Added to ailers in
one year 983) //
Value dded to . /
Semiwhq one

Value Aided to- Wholesalers
in Fne year (1983)
!
i
I
Averted
Val ue Added of the
Initiatives
Value Added by 1 aya
Community Volupteer to the
Program per year
(
\

-----.. '-_-.i
... -

13 cycles of pills =
621,400 cycles . .. __
21,400 cycles * .17 Retailer's Trade Margin =
105,638 Tk
621,400 cycles * .04 Semiwholesaler
1
s Trade
Margin = 24,856 Tk
621,400 cycles" .04 Wholesaler's Trade
Margin = 24,856 Tk
47800 CYP * .25 = 11950 births averted in
1983
3 couples * 4 weeks" 12 months = 144 couples
per year (either new users or existing who
experienced side
/
Lere
tiplied by a factor of
0.28 to arrive at the
number of births
averted.

* Assuming that will
be at a minimum/3
couples per will
attend th5Ufsining and #
C uj:lleSdoes not exceed
20M couples in the fertile
10
;
I
Cycles that will be consumed
with RMPs help
Value Added to Retailers per
year
Value Added to
Semiwholesalers per year
Value Added to Wholesalers
per year
Births Averted
Value Added of the
Initiatives
Value Added py 1 RMP to
the Program per year
/'"
//
oYcles that will be consumed
/ with RMPs help
144 couples * 13 cycles of piUs * 25,000
volunteers = 46.8 M cycles consumed
46.8 M cycles consumed * .17 Retailer's Trade
Margin = 7.9M Tk
46.8 M cycles consumed * .04
Semiwholesalerls Trade Margin = 1.25M Tk
46.8 M cycles consumed * .04 Wholesaler'S
Trade Margin = 1.2SM Tk
3.6M CYP * .25 = 900.000 projected birth
averted
._--
"
RMP
1 12 = 168 couples per
{year (either new users or existing who
'-=- experienced side effects
168 couples '* 13 cycles of pills'" 1 00,000
RMPs = 21B.4M
group
CYP = (144 couples *
25,000 volunteers)
Assumptiohs
RMP
villager per
e'fJJ{Y two weeks and #
couples does not exceed
1.. .... I .... ,.. J.L e . ..J.:'
I. U Iv 1\;1' .......
group
*assuming that 720
couples consistently been
using Maya for one whole /
year. ;'
/
J Value Added to Retailers per 218.4M cycles consumed * .17 Retailer's
year Trade Margin = approx. 37.13M Tk
Value Added to 218.4M cycles consumed * .04
Semiwholesalers per year Semiwholesafer's Trade Margin = approx. 8.7M
Tk ----:---- ---
'", Value Added to Wholesalers 218.4M cycles consumed * .0iWbolesaler's
"-.".,. per year 7M Tk
lfInh-s-Ave-rt--ed..l-----4:8M-cY"F'per year * .25 = 1.2M projected
birth averted
Bibliography: /
1. http://www.socia/-marketing.orglpaperslintersectoriransfer.html
CYP = (48 couples *
100,000 RMP)
2. Rangan, V.K, KarimI S, and Sandberg, S. Do better at Doing Good. HBSP, Sept 9
1
2008
3. Price, N. Contraceptive Social Marketing: Pros and Cons, Reproductive Health Matters, No 3
1
May 94
4. BAMGBOYE, A. ORAL CONTRACEPTIVE MARKETING IN IBADANI NIGERIA Sot. Sci. Med. Vol. 35, No.
7, PP. 903-906, 1992
11
To: Philip Harvey (PSI's founder)
From:
Date:
Subject: Maya contraceptives
Introduction.
After years of intensive promotion effort, it was quite clear that Maya was 110t as well
accepted as Raja. Since 1978, almost the entire' growth in the condom market had come from
May: was losing ground to the free distribution
to-}:lt'fVate brands. __ --
The of this memo, is to assist you with a timely decision by
comprehensive situation analysis, (2) of action and
evaluating them on strategically important criteria, and (3) makfug1lspecific
for improving sales of contraceptive pill "MAYA" and laying out a feasible implementation
plan.
,
Situation Analysis
The details-of the...situation.-lIIllIl.siiLare J!rovided in Appendix 1. 4Cs
and 4Ps are summarized in Appendix 2. Bangladesh has a population of about
100milliorlaiid is growing at a rapid speed of 2.4%. Since the'socio-economlC consequences
were devastating, the government had set for itself the goal of achieving zero popUlation
growth by 1995.Bangladesh has a male dominated society m wliiCli maleS1Ylaying-bigger role
in decision making. In general, 80% of products mcluding products of female are purchased
by maies. People of Bangladesh have a low literacy rate. i.e. 27% males ana 12% females.
People's perception regarding to the condoms as over-the-counter consumer product, pills as
a powerful are 20 million couples in their fertile group. Bangladesh is an lSlamic
of its population is Muslims. However, only 6% of the population 1S not
adopting family planning activities for religious has a negative
image relating to side effects, generated by meclical network. Family' p1anning activities
-
have a strong government and foreign organization's (USAID) support. There is a rich
distribution channel for family planning products in Bangladesh. 31f,OOO pharmacies) 40,000
gener-aI-storeg;-3'o;aOO pan stores are selling family planning products but customers have no
chances to select by themselves."'48. 7%of rural female ,73.7 % of rural mru.'e>and 53.1 % of
urban female, 48.90/0 of urban male perceived .
PSI has a:...trong relationship with-Bangladesh .In 1976, PSI

conclUtle an agreement witfigovernment to carry out the Social Marketmg ProJect(SMP)
program involving the marketing of birth controwoducts . They are executing a strong media
"
1
campaigns with their $ 400,000 annual sales budget. Furthermore, PSI has a wealth of
expertise and fmancial backup from organizations like USAID. $...MP doesn't have any
relationship with Bangladesh medical force. PSI has a lack of understanding about the V
conditions of Bangladesh. Even though-it-is clear that most of-me p-eople are
in a1owltterate1evel, 25 % advertisement expenses for Newspapers. There is a clear doubt
about the effectiveness of these campaigns. Maya sales hav; been declining
significantly from 1. 1 million cycles in 1980 to 0.62 cycles in 1983.
Definition of Problem
present challenges that we face is to should PSI do with_
issue should be in such a way that aligns with our strategic ,artners,
to V
Government.
Identification of Alternatives
In tackling the issue identified above, we should focuses on evaluating the following three
1
.
a ternatlVfYcourses 0 actIOn.
(1) into consumers with intensive communications.
(2) Approihuig R}1Ps and detailing.
(3) Considt!9tally different approach.
Evaluation Criteria
As a non-for- profit organization, we are in a position to attract consumers to our oral
contraceptive "MAYA". The situation is confusing as we used .similar marketing campaigns
for both RAJA and MAYA,but-n.o significant results for MAYA. QuLcQ.lla-eeFatGf-lISAlllis.-
evaluating us herefore, 8!!Y strategy that increases OULCD.sL CYP I V--
be difficu t to appro;vaI. as a professional out fit, selling quality products for /'
a social benefit, we should consider carefully when selecting our marketing ChaneL Any new
- -
plans for MAYA should address one of three aspects. I.e .
Image. Considering the aspects of each party in -SMP, we should pursue following three
marketing objectives. V
(1) Improve the(go ed significantly.
(2) Improve the ss. V vv;t
(3) Improving the trust and relation ship rl
understanding their social-economic conditions.
We should evaluate the three alternatives courses of action using these marketing criteria. In
other ;ords, we need to ask ourselves three questions: (1) Win each alternative
enables to improves the no of birth averted? does it effective in tenns of cost?
(3) To will bui1d our image among customers and distribution chalUlel?
Evaluation of Alternatives.
The pros and cons of each alternative are assessed below.
2
(1) directly into consumers with intensive communications.
Pros
Effective in handling embedded in society.

Most of the professional doctors are thinking that MAYA as a poor drug. However, they don't
c:;::;;=
have any pinpoint explanation for their stand. Furthermore, RMPs too thinking MAYA as .an
inferior drug, and many of them advisetl-tO'O.iscontmue M-aya:-As-R:MJ>.s-has-a vital role in
rural':'GQ.mB1ultities;-this-witl-builtl a negative image among rural poor. They can use intensive
communication campaigns to communicate that the both Maya and the Government pills are
produced by same manufacturer TheY..E.an differentiate the customer's illnesses
and so called side effects by using intensive marketing campaigns. By doing this they can
build a counter concepts against the rumors.
in successful consumer oriented marketing.
As PSI has vital experiences in launching mass media promotions with RAJA, can utilize the
same success plan for MAYA. They also achieved a Significant success in Sri Lanka by
creating a positive and relaxed attitude for Family Planning.
Cons
Increase or . V-,
We have an upper oundar or our expenses in which has to be approved by SMP. Intensive vft.t
marking campaigns may lower our I 1ru JL.,-vv 141,.A.4. .
-- V 1"-.h. lA.) h"-L J
Need address carefully. Any negative impact on society may i
When laufiEhing intensive campaigns, It is essential to take significant care in sensitive social
--
matters. i.e If any message hit negatively on religious matters will create huge resistance from
society. That kind of PSI to withdraw from
(2) Approaching RMPs and detailing.
Pros

Most Influential character on rural ROOf. Substantial customer base
--
RMPs have a significant position in rural village. are the rural medical advisors who
closely associate with village women. This will create a hu e
access by each RMP, expands the customer base p to 10 million) ,
Cons
Funding limitations.
RMPs are generating thclr income by selling medicines. If they are currently selling Ovastat ,
they may have a solid margin aroulld Tk 2.72/cycle. If we access through him, have to
comp!-l!sate the same amount. (Ann.e.nd.ix3 )
3
Effective to sustain as a professional outfit.
As quality outfit PSI has to select the right chaIll1el to communicate their messages. Working
with unprofessional (RMPs), unreliable may dilute their iJ.?1age.
(3) Consider totally different approach.
Change brand name MAYA int-Q new name: "XXX". Set the retail price 3.4Tk. V

to retai!er/RMPs by the extra amount we gain from higher SMP's SellinV
.
Pros
motivate 80,000 retail force.
(Appendix 3) By setting the SMP's selling price as Tk 1.5 , we can 'have a gain of Tk 1.05
compare retail price as Tk 3.4 while giving a ofTkl.7
to the retailer. If we pump SMP gain Tk 1.05 to retailer, can earn 2.75 gain. There is no any
change in the SMP's net selling price. There is no burden for operational cost item's ofSMP.
Similarly, RMPs too can enjoy the similar margin benefits by selling PSI's new product.
Comparing to the pricing, this new product has the lowest pricing and highest margin for
retailers.
New brand name doesn't have the negative image of MAYA.
According to the social condition, it will be quite difficult to change the rumors. Therefore, It
is suitable to change the product name and approach with new energetic name. Similarly, they
have to change their packaging materials too.
Higher cost effectiveness and High no of birth
2.5 million CYPs has the same cost per CYP as the - 2-!1 million
base. It is. the current customer base of fertile female. This is an optimistic
goal. By births can be averted. (2.5million*O.25)

Has to start from the Scratch.
PSI has tore"OeSign every thing from the scratch. This includes packaging, promotions and
internal documents. Significant amount of Investment will require to launch the new pro gram:
Possible resistance from the council members.
- .c:::.....-
Government member (chairman) and the National sales Manager will oppose this plan.
However, I assume that, General Manager and the USAID will support to this.
retail price into

fr,em higher P's Selling price. Government (chairman) and the National Sales
Manager-will oppose this plan: National sales may thinks about the complexity of ...
the transifiOii'llt grass root level. They are the people who are in the fields apd have to educate
____
their network They have to handle the reimbursement process which will increase their job
stuff significantly. Chairman may oppose by considering the cost burden on consumers. PSI
can follow up and backup the sales force throughout their transition period. Furthermore, PSI
can demonstrate new plan's contribution to the population growth control. However, I i
assume that, ..
population control achievement will be a
-----"

The whole impl entation Pl ess will be carried out by 3 phases.
product Designing) Product Designing and Financing.
)- Strategy), and William
. Schellstede (project advisor for the SMP ) to design the new product which replaces the
color, package and brand name. -
)- Philip lIar..'le.y_(.P.SEs-J'o.under.t to prepare full report and conduct discussion with
USAID at head office in US to fulfill additional funding requirement.

Duration 6-8 weeks, Locatiori:Washington, D.C/ Dhaka
cond:-educational
)- William Schellstede, SMP GM and National sales Manager to discuss suitable
promotional programs. They should design their promOtional programs based on Radio,
mobile film units, Poster/Sign boards. -ksfemale-l1teracy ratio is-Iow;-newspaper
promotional activities are least effective. Hence, Ignored.
)- National Sales manager to overloolcoyerallEdu.c.a.tional program of RMPs, Wholesalers
--.
and Retailers. He will coordinate ASM and their subordinates (Field supervisor, sale
representatives, and sales promoters J to educate distribution chal1iieJ. including RMPs.
Duration.8-12 weeks, Location-Dhaka
Pbase3 (I ncbing product and monitor the sit ation)
)- - anager to overlook the launching
-
process. They will keep in touch with the distribution chaJUlel and asking for continues
updates.
WS, GM, NSM to analyze the customer behavior patterns and distribution
inefficiencies . They are to solve those issues efficiently .
.J

o erall Duration is 15- 22 weeks
5
Appendix 1. Situation Analysis
INTERNAL ANALYSIS
Strengths
Early family planning pro' ect success
in Sri Lanka.

Bangladesh Governmen .
r
Strong media campaigns with
significant advertising
budget. ($400,000)
Strong access to the expertise and
suppliers. (USAID, Philip Harvey &
Thimothy Black, U.S phannaceutical
companies).
Organized field sales force with
significant resources. i.e. Each area
sales office has five station wagons.
Weaknesses
/ No strong re)'tionship with
Bangladesmedical network. i.e
125,000
doctors, 100,000 RMPs and 25,000
field workers.
No family planning consultation
activities. i.e Brand name Santi has a
free family p Janning consultations.
Lack of understanding of the
Social-Economic structure of
Bangladesh. I.e. 25 % advertising
expenses for Newspapers. However,
women literacy rate is 12 %.
Maya sales have declined from 1.1
million cycles in 1980 to 0.62 cycles in
1983.
ANALYSIS
Opportunities / ____ Threats _______ ..
20 million couples . the People's to the
Only 6% of the population not adopts condoms pills. i.e. Condoms as
family planning for religious reasons ..
Bangladesh Government's strategic
goal to control the population.
Active involvement from Bangladesh
government in policy making and
in fmancing.
Distributor channel. i.e. 30,000
pharmacies, 40,000 general stores,
30,000 pan stores.
Male female perception w.r.t the
family planning. ( Rural Female
48.9 % male 73.7% & Urban Female
over-the-counter consumer product,
pills as a powerful drug.
Low literacy ratio. i.e 27% males and
12% females.
Male dominated Society. i.e 80% all
products including the product for
female, are purchased by males.
Social, economic and environmental
conditions in Bangladesh. i.e Natural
disasters cause catastrophes. Need more
sons.
Logistic difficulties. Because of the
53.1 % male 48.9 % perceived that FP geographical conditions, access to the
as limit Family Size. ) rural areas is difficult.
Negative image of side effects i.e. pains
Appendix 2. 4P and 4C analysis.
~ / /
V
4P Analvsis PSI Competitors
Product
/
Condoms Raja 1\ f -I-Tahiti
Oraloills
l)
/' Maya 1/ Gov pills Ovastat Lyndiol
\./
-
Roughly equal
Manufacturer N/A Syntex USA N/A Syntex USA to Syntex's N/A
Norminest
f
Three packaging 28 pills (21
BC pills and
N/"
A N/A N/A
formats 7 Iron pills
100 pes .12pcs .3
pes
colorful & attractive N/A N/A N/A N/A
Vand Name
Pictorially "Maya" has a No relationship with traditional
understandable.
positive N/A No brand name
Intlueneial(IJRaja"
image) cultural grasp images
Price
Retail orice Tk 0.40 Tk 0.70 Free Free Tk 7 Tk 4.2
Retail marmn Tk 0.07 Tk 0.17 N/A N/A Tk 2.72 Tk 2.72
Cost
effectiveness( $ 3.73 7.82 N/A N/A N/A N/A
c.ost per CYP)
Alace /
f / 7 subware houses
1.
30,000 pharmacies
\ / 22 wholesalers Clinics 40.000 general stores
-
5000 semi wholesalers Dispensaries 30,000 oan stores
30,000 pharmacies 20. 000 field workers network
Volunteer organizations and their
5000 field workers
/
40.000 general stores Volunte 100,000 RMPs
r- / 30,000 pan stores 5000 doctors
Pr.6motion
II
Education programs by 20,000 field
workers and 5000 trained doctors
Volunteer organizations
Medium Radio, Cinema, Newspaper,Posters education & communication
located in hospital,dispensaries and
programs
clinics
Mass media
Volunteer organizations education & Free Consultation from doctors,
communica RMPs
Theme
"Happy marriage",1J confident
N/A N/A N/A N/A
choice of prudent familll.
Budrtet $ 400,000 spendine: per vear N/A N/A N/A N/A
, .

Competitors
PSI Government Volunteer Organizations Privately held Pharmaoeutioal firms
CompanY'
Type Non-for-profit organization N/A Non-for-profit For Profit organizations
Contribution to
population
Raja-O.125m, Maya-O.Ol m Tahiti-O.0625m, pills- O.06m N/A Ovastat,lyndiol,Ovaral & etc-O.Oam
control.(no of birth
averted in millions) "
Annual sales in uprts Raia-SOm, cycle! Tahiti-25m,pills- 3(m cycles) N/A Ovsat,Lvndiol,Ovral & etc-4(m cycles)
Revenue So.t1roe social marketing USAID,UNFPA N/A Selling contraceptives

USAID USAID N/A Pharmaceutical firms in Europe & US
'Government
("
/ UNFPA
Customers I /
Target 10million Fertile couples
I
Literacy 27% males and 12 % females
Social structure Male dominated Society. 85% conservative Muslims. Low standard of living. 91% living in rural areas.
Economic condition GNP =$120Iannum
I
Appendix 3. Compare the prcing ,Cost effectiveness and Birth avartev
Chanel
SMP Selling prices
Whole seller selling price
SemiwholeseUer selling
!price
Suggested retail price
All prices are for 1 cycle.
Margin = (y-x}/x
Maya
PSI
Margin
0.45
8.9%(0.04)
0.49
8.2%(0.04)
0.53
32%(0.17)
0.7
All prices are in Tk (1 Tk = $0.08 )
Competitor Product
Ova stat Marf(in
3
0.64
3.64
0.64
4.28
2.72
7
Retail margin of Ovastat is 16 time greater than Maya
Maya retai margin = 0.17. Ovastat retail margin 0.17*16 = 2.72
Birth Averted(Condems} Raja Tahiti Sultan Total
Unit Solds 50 25 5 85
CYP 0.5 0.25

Birth A verted millions 0.125 0.0625 0.2125
Birth Averted (Pills) Gov Total
c cles sold ,3 0.6 7.8
Birth Averted millions 0.06 0.01 0.15
Birth Averted = CYP*o.25
Cost effectiveness
RAJA
V"
MAYA
Total CYPs 504000 47800 d
purchasing cost 1.25(1 pkt) Tk 3.5(Cycle)
Purchasing cost/CYPs(Tk 41.67' 45.5
Total CYPs cost Tks 21000000 2174900
Total CYP cost in dollars 1680000 173992 a
Advertizing Cost(50/50) $ 200000 200000 b
Cost for marketting and
1880000 373992 ! c
(a+b) $
.-.
/.-
"

Cost of M & P / CYPs $ If' 3.73
)
c/d
\ I
'---/ I
-
Changed price structure
NEW PSI prodcut
XXXX Margin
1.5
0.1
1.6
0.1
1.7
1.7
3.4
New PSI produot
v
2500000
3.5
45.5
113750000
9100000
200000
9300000

/ 3.72
(
'-...