Client-Centered Market Segmentation Study

Background

Family planning is undergoing a significant change in the Philippines. For the past 30 years, contraceptives were supplied largely by external donors and distributed through the public sector health system. While this has resulted in a readily available supply of contraceptives, actual contraceptive use has leveled off at a time even when the segment of the female population that does not want additional children or that wishes to postpone having additional children for two or more years continues to increase. Additionally, NGOs who have focused on supplying contraceptives in the Philippines are planning to phase down their contributions of contraceptives starting in 2004 and ending in 2008 with the expectation that the private sector and commercial market will fill the void.

In order to create contraceptive security and entice commercial contraceptive providers to enter this market, it will be important to move beyond supply issues and focus on creating demand so that a market for contraceptives can be created and sustained, even grown in the years to come. Market research can provide the frameworks to develop a deeper understanding of the issues that impact the demand for contraceptives. These frameworks will help uncover the drivers of demand and help develop programs to push and pull the levers that create demand.

Experience in commercial sector market research has shown that markets are not homogenous, and to fully develop demand, it is critical to develop a deeper and more granular understanding of the various market segments. Differentiated market segments with distinct profiles will manifest themselves in differing levels of likelihood to buy contraceptive products, differing price sensitivity, preferred distribution channels, attitudes towards and usage of contraceptives, awareness of contraceptive options, and barriers to usage. Demand from these various segments can be grown and captured through the development of customized marketing strategies and through targeted messaging programs based on the distinct segment profiles.

Client Centered Market Segmentation Research

To date, PSP-One qualitative research initiatives in the Philippines (Phases 1 and 2) have confirmed that there is a high unmet need for family planning across a diverse population. In order to convert this latent demand to use and increase the total demand for family planning, quantitative research designed to understand high-potential segments and how interest, demand and attitude towards various methods differ between segments is underway (Phase 3).

Previous research conducted in the Philippines to better understand and segment the unmet need for family planning has focused on geographic, demographic and socio-economic segments. The PSP-One quantitative segmentation research includes a multi-dimensional approach to understanding family planning segments. Included in the questions that will determine family planning segments are: general attitudes toward health, sexual activity and reproductive health behaviors, family planning method influencers, family planning purchasing preferences, media and shopping attitudes and demographics. Information from these areas will be combined to obtain a deeper understanding of the different attitudes, values, and needs that drive demand for family planning.

PSP-One is working with a local affiliate of an international research firm in the Philippines to assist in data collection and analysis for the study. Having already completed the qualitative portion of the research (Phases 1 and 2), the remaining activities to be completed in Year 4 are those of Phase 3 and 4, including:

  • Data collection for the quantitative research;
  • PSP-One will perform analysis beginning two weeks after the end of data collection.
  • PSP-One will perform multivariate analysis;
  • PSP-One will produce the final segmentation report in early 2008.