Social Marketing Company

Early history

The Social Marketing Project was initiated in 1974 when AI.D./Washington, at the request of the Bangladesh Government (BDG), contracted for a two-year program to distribute non-clinical contraceptives throughout the country. A sole-source contract was awarded to Population Services International (PSI), which then signed an agreement with the BDG establishing the activity as a parasternal one, with a project council serving as the board of directors. The council was chaired by the secretary of Health and Family Planning and contained representatives of the government, the private sector, and the international non-profit sector.

Products were introduced in late 1975. By the end of the following year, they had spread to all urban markets, and sales reached 4.9 million Raja condoms and about 250,000 cycles of Maya oral contraceptive pills. In 1979, the Joy brand foaming spermicidal tablet, donated by the Japanese, was introduced and sold about 3 million pieces. (Joy was discontinued in 1989 when the Japanese ceased supplying it and no other donor could be found. About 50 million tablets had been distributed.) In 1980, a second pill brand called Ovacon was introduced. Total sales for that year were 33.4 million Raja and over 600,000 pill cycles. In 1982, after the original contract with PSI had been renewed twice, USAID decided to change to a cooperative agreement, which now expires at the end of FY 1992 for family planning and FY 1994 for oral rehydration therapy (ORT). By 1983, a second brand of condoms (Panther) was introduced. Condom sales reached 76 million that year, with pills up to 1.7 million. PSI was asked to call in an outside agency to assist in producing a motivational campaign to promote the virtues of the small family, birth spacing, male responsibility, and the like, through mass media. This campaign was designed by Manoff International Inc. and ran for five years until an unexpected cut in USAID funding. During 1985, SMP introduced a third condom, the ultra-thin Majestic. Total condom sales passed the 100 million mark for the first time and pills the 2 million mark. ORSaline (a brand of oral rehydration salts) was introduced in the same year; initial annual sales of 120,000 have now grown to 10–12 million. By 1985, SMP employed almost 500 people, and its sales force was regarded as among the best in Bangladesh.

In 1988, the BDG began trying to establish SMP as a totally government program. Protracted negotiations with USAID ensued through 1989 and into 1990, and USAID funding was suspended from March through September 1989. All available resources during this period were devoted to distribution and sales, while the motivational campaign and brand advertising ceased. Sales during this period increased to their highest-ever levels. This is not unusual, because the adverse effects of suspension of advertising are rarely felt immediately. SMP condom sales peaked in 1989, at 119.3 million, and pill distribution was up 50 percent over the previous year, at 6 million. The Majestic brand condom was discontinued worldwide by ALD because of quality problems. High sales levels suggested that perhaps prices were too low. In addition, increasing emphasis was placed on greater cost recovery and financial sustainability for the project. There was also considerable concern about product wastage. Results from Contraceptive Prevalence Surveys (CPS) consistently indicated that less than 3 percent of couples used condoms for contraception, while sales of SMC products and BDG distribution figures indicated rates two to three times higher. Concern about the so-called "condom gap" peaked in the mid-1980s with several studies done to account for it. Although a number of contributing factors were identified, the matter is still an issue of some concern. In April 1990, after funding for local costs was withdrawn and SMC was suffering the effects of the long and difficult negotiations between USAID and the government, the consumer price of the Raja condom was raised by 65 percent and the prices of all other products by 50 percent. There was immediate market resistance. Condom sales fell to 73 million, with the popular Raja hardest hit. Pill sales stayed steady, not realising the 15 percent increase expected. While revenues grew by $200,000, CYP (couple year of protection) was reduced by 400,000. The extent to which this decline in sales has affected the contraceptive prevalence rate (CPR), however, is not known. As discussed above, there is consistent discrepancy between sales and distribution figures and prevalence. This may be clarified when the 1991 CPS is completed. Following USAID-BDG agreement, SMC was established as a private, non-profit company in 1990. Funding resumed, a new non-government board was constituted, and new management was hired.

Products

SMC markets a variety of non-clinical (oral pills- Femicon, Minicon, Nordette-28 & Femipil, and condoms – Raja, HERO, Panther, Sensation & U&ME) and clinical (Injectable "SOMA-JECT") contraceptives.

The WHO-formula based packaged oral rehydration salt brand marketed by SMC is ORSaline-N. SMC extended its line of oral rehydration salt by introducing BNF – based flavoured ORS brand 'ORSaline Fruity' in August 2003.

In May 2008, SMC introduced a small sachet of micronutrient powder, popularly known as 'Sprinkles", in the brand name of "MoniMix" to address childhood Iron deficiency anemia (IDA). It also started marketing Zinc dispersible tablets in September 2008 to reduce the severity of diarrhoea in children under 5. As part of its maternal and neonatal health programme, SMC launched Safe Delivery Kit branded as "Safety Kit" in 2008 to ensure clean child delivery at household level.

Sales network

More than 100 men-strong sales force of SMC distribute products to the far-flung stockist and retail outlets promptly and regularly.

SMC covers more than 240,000 outlets each year directly through its sales network. In addition, numerous other retailers take supplies from the stockists.