Abstract
Through careful sourcing of commodities cost-cutting efficiencies and realistic pricing 3 large contraceptive social marketing programs evolved into profit-making enterprises while continuing to make low-priced contraceptives available to low-income consumers on a substantial scale.
Highlights
Through careful sourcing of commodities, cost-cutting efficiencies, and realistic pricing, 3 large contraceptive social marketing programs evolved into profit-making enterprises while continuing to make low-priced contraceptives available to low-income consumers on a substantial scale
P hilanthropic and humanitarian organizations are increasingly turning to business models to achieve their social objectives. ‘‘Market-based approaches,’’ says the Acumen Fund, ‘‘have the potential to grow after charitable dollars run out, and they must be a part of the solution to the big problem of poverty.’’1 Virginiabased Ashoka seeks to achieve social objectives by investing in individual entrepreneurs and ‘‘changemakers’’ in developing countries
An example is Fábio Rosa, an Ashoka fellow, who helped bring electricity to large parts of rural Brazil, cutting rural electrification costs substantially in the process.[2]. These organizations and many others have recognized that private business models hold important lessons for achieving social objectives and that, in the right circumstances, the profit motive can be harnessed to reduce poverty and advance human well-being
Summary
Through careful sourcing of commodities, cost-cutting efficiencies, and realistic pricing, 3 large contraceptive social marketing programs evolved into profit-making enterprises while continuing to make low-priced contraceptives available to low-income consumers on a substantial scale. An example is Fábio Rosa, an Ashoka fellow, who helped bring electricity to large parts of rural Brazil, cutting rural electrification costs substantially in the process.[2]. These organizations and many others have recognized that private business models hold important lessons for achieving social objectives and that, in the right circumstances, the profit motive can be harnessed to reduce poverty and advance human well-being. Using the DKT program in Brazil as an example, this paper describes a new design for bringing family planning social marketing programs to financial self-sufficiency and outlines the steps needed to generate substantial program revenue while maintaining a close check on affordability of a program’s contraceptives to local consumers
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