Social marketing for a better world

Cost Effective Programming

One of ways DKT achieves cost-efficiency is through cross-subsidization of products. In Brazil, for example, DKT has condom brands at various price points which allows higher-priced condoms to subsidize lower-priced condoms.

One of ways DKT achieves cost-efficiency is through cross-subsidization of products. In Brazil, DKT sells multiple condom brands, which allows higher-priced condoms to subsidize lower-priced condoms.

DKT is committed to growing financially sustainable programs while keeping donor costs to a minimum. DKT’s commitment to cost-efficiency and sustainable programming is achieved through the following mechanisms:

Low Overhead Cost:
In 2015, DKT spent less than 2% of total operating expenses on headquarters costs, while only 0.2% went towards fundraising expenses. DKT takes pride in the fact that donor resources are being used where they have the greatest impact. DKT delivers many millions of couple years of protection at a cost of approximately $2.00/CYP.

Financial Sustainability: DKT programs recover a significant portion of their costs through revenues collected, and it does this without sacrificing on product quality or affordability to poor people. Several DKT programs are now 100% financially sustainable and have provided seed money to start up new programs. For more details see our white paper on Innovative Financing.

Cross-subsidization: One of the ways DKT enhances its revenues is by offering different variants of the same product type at different price points. In this way, all income levels are served, and the higher-priced brands help subsidize the lower-priced brands.

Entrepreneurial Spirit: DKT’s strategy is inherently entrepreneurial because its social marketing approach uses the tools of the commercial marketplace to achieve a social purpose. This entrepreneurial tendency generally results in less bureaucracy and more focus on bottom-line health impact using the commercial infrastructure already in place.

Rigorous Evaluation: Every DKT program is rigorously measured by metrics such as couple years of protection, contraceptive prevalence, and maternal and child mortality. Our results are available here. DKT also publishes its annual Contraceptive Social Marketing Statistics for greater accountability.

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