Market Analysis, Segmentation, and Growth

Understanding market segments is critical to stimulating the entry of affordable products by reducing barriers and creating an environment where commercial products can thrive. The most effective programs focus on marketing efforts on consumer groups that most need a particular product and can afford partially or fully sustainable products. Futures Group is experienced and ready to assist in the types of analyses that lay a foundation for increasing market growth.

Market segmentation analysis examines how the market for family planning is structured and helps identify the extent to which different providers serve various population segments. To determine which sources of family planning commodities and services reach a given population segment, the population is divided into quintiles based on a standard of living index, developed by a factor analysis of household assets, rather than income or consumption. This market information helps to match current and potential users better with appropriate sources of contraceptives in terms of user location, needs, preferences, and ability to pay. Assuming that a public sector priority is providing services to those most in need who cannot afford to pay for family planning commodities and services through any other source, public resources should be focused on the lowest two quintiles. People in the middle and two highest quintiles should be able to pay for family planning commodities and services provided by NGOs, social marketing programs, and the commercial sector.

Market segmentation underpins our social marketing efforts, applied over several decades beginning with the global SOMARC project. Further, we have used market segmentation information in countries such as Bangladesh, Egypt, El Salvador, Ethiopia, Ghana, India, Indonesia, Jordan, Kenya, Mali, Malawi, Morocco, Peru, Philippines, Romania, Rwanda, Tanzania, Turkey, and Uganda for awareness raising, advocacy, and policy dialogue and to inform development of relevant policies and plans. Using this information helps explain the relative roles, responsibilities, and weights of different players in the various health markets.