The impact of price reductions on condom sales in Haiti.

Donald M; Harvey PD

Condom price reductions for 2 brands were affected in Haiti between April 1989 and August 1991. The objective was to increase use of condoms for family planning and AIDS prevention. "Prime" brands product was reduced from 1.67 gourdes/condom to .83 gourdes/condom. A new brand "Pante" was sold at .42 gourdes/condom. These changes were the equivalent of selling each condom for US $.30 each. Advertising and marketing efforts were also increased during this period. The price reductions were agreed upon by the distributor in exchange for some specific marketing support. The impact of price reductions was an increase by 450% in combined sales of the 2 brands. Sales/month for "Prime" brand increased from an average of 12,400 pieces to an average of 29,000 pieces over a 12-month period: a 134% increase. The second intervention was the introduction of the new brand "Pante" in mid-1990 and the third intervention was the "two for one" promotion for "Pante" in July 1991. Both interventions was discussed in some detail. In addition to the price reduction, there were new marketing expenditures and a strengthening of company sales staff. These changes were not considered the significant influence on sales. Other condom social marketing programs in Jamaica, Pakistan, or Costa Rica which were successful also sold condoms at a very low price compared with gross national product/capital (GNP). Low price level alone is important, but also important is the act of reducing, the price of existing products. Reducing the price of 2 existing brands has a greater impact on sales than introducing a new brand at a lower price. The suggestion is that there may be an optimum level of price reduction that must be found. Affordability has been assessed by the Population Service International's Chapman Index and the Population Crisis Committee's Wall Chart which indicates that families will not pay more than 1% of their annual disposable income on birth control. The Chapman Index compares the number of days of GNP/capita required to purchase a 1-year supply of contraceptives.

Region / Country: 
Document Number: 
Add to my documents. Add to My Documents