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Positioning 257

most powerful and influential model was that of nearby developing Russian
business, where fortunes were being made (and lost) at a breakneck pace.
Relative to that “standard,” the traditional return on money invested in the con-
traceptive market was very small—and not an especially attractive place to allo-
cate scarce resources, even when market development costs were being borne by
someone else.
The characterization of the breakup and transformation of the former
Soviet Union as a once-in-a-lifetime occurrence fueled a strong bias toward
high-risk/high-return short-term opportunities. These new entrepreneurs,
fearful of missing out on the bonanza, made investment choices based prima-
rily on how quickly they could turn a large profit and benefit in the shortest
time possible from an unprecedented market that might well not be there
tomorrow.
The Red Apple program’s specific competition for suppliers’ capital was
every other drug category, almost all of which offered a greater profit margin
than contraceptives. Coupled with the low return rate on contraceptives was a
concern that in response to the abortion crisis, Western donors would provide
free contraceptives for distribution through the public health system, thus ef-
fectively killing commercial market development, as well as investment in the
industry.

P O S I TI O NIN G

Consumers

Targeted consumers should see traditional Soviet reproductive health medical
advice and practice as flawed and outdated. Modern formulation contraceptives
are a safe and effective alternative to abortion, which poses substantial health
risks and should be avoided.

Suppliers
Targeted suppliers should see a commercial opportunity to enter a new market
with considerable growth potential, relatively free of risk or development costs.
They should also see an opportunity to establish new commercial trade links
with international pharmaceutical manufacturers and distributors.