Support to Contraceptive Social Marketing in the Philippines, Performance and Prospects
USAID entered into a three-year $3.1 million Cooperative Agreement (CA) with DKT Philippines Inc commencing October 2002 to support social marketing of modern contraceptive methods. Under the terms of the CA, USAID has principally funded the marketing expenses associated with launching and growing two new DKT products: Lady pill, launched in April 2003, and Depotrust injectable, launched in August 2003. The commodity sourcing costs associated with both products are funded internally by DKT. Some USAID support was also initially provided to marketing of DKT’s Trust Classic condom but this support ceased in February 2005.
DKT has been operating in the Philippines since 1990. It had a total income of P558 million ($10.1 million, including $5.6 million of donor support) in calendar 2004 and currently employs 46 staff directly, after outsourcing its sales and marketing operations in early 2005. Apart from Lady, Depotrust and Trust Classic, DKT has two other condom products (Frenzy and Trust Premiere) and one other pill (Trust). The Trust pill and the Trust Classic condom are the leaders in their respective markets and account for the bulk of DKT’s sales revenue (around 80% in 2004). Kreditanstalt fur Wiederaufbau (KfW) has been DKT’s principal donor since 1995, contributing over $20 million in two phases of support to date plus a further $14 million in the current third phase which ends in 2008. KfW has announced that it will not be extending its support beyond 2008.
In May 2005, USAID/Philippines commissioned an external team (hereafter ‘the Team’), provided through the PSP-One project and USAID/Washington, to: evaluate DKT’s performance to date under the current CA; propose a strategy for future support to social marketing in the Philippines. The Team’s scope of work is contained in Annex A. The work was conducted over a two week period in late May 2005. Annex B contains a list of persons contacted by the Team.
Source: USAID
Year: 2005