NUMBER ONE GEL
723, Vientiane Lao PDR
1. Overview PSI Laos is launching a new product â€“ Number 1 Lubricant â€“ as a part of our existing HIV/STI prevention program. Evidence-base for lubricant 1. Lube use on its own is not a proven method of HIV or STI prevention 2. But the use of water-based lubricant has been associated with a decreased risk of condoms breaking or slipping 3. Using oil-based products (i.e. baby oil) for lubrication can cause condom breakage Condom breakage has been reported as an issue among condom users in Lao PDR. Increased use of water-based lubricants should help reduce condom breakage for condom users in Lao PDR.
2. Goal To reduce condom breakage among condom users in Laos, particularly MSM, Transgenders, Sex Workers, and anyone who has dry, anal sex.
3. Commercially Available Lubricants in Lao PDR Most Lao people first knew about lubricant from lubricant sachets made available inside packs of Number 1 condoms since about 2008 (i.e. Number 1 Deluxe Plus and Number 1 Grape). Lubricants in tubes are not widely available in the current market, except at high-end minimarts and pharmacies in the large urban centers in Laos. The following table shows some of the lubricant products in tubes currently available in Laos, mostly products imported from Thailand. Product Name
Consumer Price/tube Distributed by
Bangkok Lab and Co.LTD., Thailand
DUREX Play (50ml) 25,000 kip
IDS Manufacturing LTD., Thailand Latar Laboratory, Thailand Brywood LTD.,Thailand
MARKETING PLAN 1. Product Number 1 Gel has the following specifications. Ingredients: •
Features: Grape scented Manufacturer: KAREX INDUSTRIES SDN. BHD., Malaysia Compliance: All PSI/Washington, Lao Government, USAID and Global Fund production & procurement requirements were followed Expiry Date: January 2015 Total Quantity: •
13,468 tubes or
Number One Gel is grape scented and comes in a 20cc clear plastic tube with a lid and wrapped in cellophane, and includes an info leaflet (Lao language)
24 tubes in each cardboard dispenser
12 dispensers per carton
2. Price To make lubricant more accessible to the target group, we will set the consumer price at 5,000 Kip per tube, considerably lower than most of the currently available commercial lubricant in tubes. The acceptability of the price was tested in focus groups conducted by PSI Laos among the target group (PSI Group Discussion, 2011).
Pricing Analysis Quantity
PSI to DKSH
PSI to DKSH
DKSH to Outlet
End User Price
3. Place The main outlets where Number 1 Gel will be sold are: pharmacies and minimarts, especially in ODX, XYBR, LPB, VTE, VTE Capital, KM, CPS and SRV. Number 1 Gel will be displayed next to Number One condoms inside the Number 1 condom display cases. Number 1 Gel will be distributed by our private sector distribution partner DKSH.
4. Promotion Number 1 Gel will be promoted by peer educators and outreach workers working for PSI and other organizations. Promotion materials will include a one-page leaflet available at sales points as well as a display box at for pharmacies and minimarts (4 colors printed cardboard box). A small amount of tubes will be given out to the target group as free promotional samples to promote sales.
REVOLVING FUND ANALYSIS Over the long-term, PSI will set up a revolving fund to support the continuous procurement and supply of lubricant for Lao people without requiring donor support. At the beginning, however, the product will need to be sold at a subsidized price (i.e. a price lower than the cost of production). In the short/medium term, PSI will use donor funding to cover the difference between the procurement price and program income coming in from sales of the product. Over time, the price will be raised to eventually cover all procurement costs, reducing the reliance on donor funding to support the product. (1) Procurement Price 1 tube = USD $1.29 (LAK 10,320) (2) PSI Selling Price to DKSH 1 tube = USD $0.25 (LAK 2,000 kips) (3) Price Difference per Tube USD $1.04 (LAK 8,320)
Project Goals for 2013 The following activities will be completed by December 31, 2013 • • • • • • • •
Get approval from CHAS to sell product Identify distributor Distribution product to the pharmacy and minimarket Identify distributor Monitor sales Sell 12,500 lubricant tubes before 31 Dec 2013 Evaluate Y1 sales and distribution systems, including client satisfaction with product Procure new batch of Number 1 Gel