micropropagation enterprise economic considerations economic considerations market analysis market...
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Micropropagation Micropropagation Enterprise Enterprise
Economic ConsiderationsEconomic ConsiderationsMarket AnalysisMarket Analysis
Commercial Plant Tissue Culture Commercial Plant Tissue Culture LaboratoryLaboratory
IndependentIndependentEnterprise where the finished product is the Enterprise where the finished product is the tissue cultured plant in vitrotissue cultured plant in vitro
IntegratedIntegratedEnterprise where marketing and nursery are Enterprise where marketing and nursery are integrated togetherintegrated together
Independent LaboratoryIndependent Laboratory
Determining Factors:Determining Factors: FinanceFinance MarketMarket
Research and developmentResearch and development Production managementProduction management
FinanceFinance It is possible to start tissue culture work in
the residential culture and then a few hundred plant can be produced with minimal
initial cost To start business, it is most desirable to have
an investors with an agriculture and/or biotechnological background
Venture capital has the tendency to loose patience sooner
Remember, only larger and well managed enterprises have a fair chance to survive
MarketMarket
Enterprise should have a substantial part of its production in cultivars that are demanded
in large quantities at a reasonable price Media, sterilization procedures, transfer manipulation, planting density and growing chamber conditions need large scale testing
Once a certain level of production is reached, and thus a competitive overall cost price,
enterprise can start thinking about producing both less demanded cultivars and cultivars
that are new to market
MarketMarket A long time relation between producers A long time relation between producers
and customers based on profit and and customers based on profit and mutual trust is importantmutual trust is important
Frequent discussions, visit to laboratory Frequent discussions, visit to laboratory and thorough intercourse with receiving and thorough intercourse with receiving
nurseries and even producers of the nurseries and even producers of the limited product often lead to limited product often lead to improvements in proceduresimprovements in procedures
Presentation of a well known, traditional Presentation of a well known, traditional plant as a new productplant as a new product
Importance of Market Knowledge
How are patent regulations? Which varieties are economically
suitable for tissue culture? Which cultivars can replace
another? Can tissue cultured plant open a
larger market?
Research and Development Research is very important in enterprise:
Experimental development of both technical aspect (growth media, methods of manipulation, growth
conditions) and aspect related to production planning and cost price calculation of a production system
Tacking problem arising in the course of the production process
It is necessary to stay well informed about new evolution by reading scientific or professional
literature Formal and informal contact with researchers and
colleagues on an international level are crucial
Production Management
An appropriate system to produce a required number of identical plants at a given time at a
competitive price
The desired time of delivery Phenotypic fidelity
The original material Multiplication with a minimum of variation
A competitive price
Minimum Variation
Starting with fresh material from the original plant on a regular basis
Safe stock on a zero branching medium or limited axillary branching
Positive selection of samples in vivo Avoid indirect regeneration through
callus or cell system
Competitive Price
High efficiency production system has to be established with large
quantities produced diluting high investment and operating cost
Expensive labor substituting technology
Reduced cost for the same quantity of labor
Price
It is of great importance to know the production cost of a tissue cultured plant It is important to keep records of all media, labor and overhead costs makes
it possible to calculate the price It is desirable to have simple formula not
only to calculate the cost price for the actual production but also to make
prediction
General Structure
1.
Labour 65
2.
Media 7
3.
Equipment + laboratory cost
17
4.
Other 11The second most important cost is
related to the space needed to grow the plants
Possibilities of lowering costs
Labor
Electricity
Planting density
LaborGood production management is needed to
reach a high efficiency
Time spent in preparing and sterilizing culture media can be diminished by
preparing larger batches
Incubation of the prepared media to allow eventual contamination to be reveal
perform experimental inoculation of some shoot on a few container beforehand to
verify the reaction before the whole batch is transferred
Using disposable containers
ElectricityTwo major constituents of
electricity cost are lighting of the shelves in the culture room
(60%) and cooling the culture room (25%)
Install lamps that are produce for less heat
Install lamps outside the shelves
Planting density It can be very interesting to investigate
whether more shoots can be grown in the same container, with the same amount of medium, while maintaining the same quality
Raising the number of units per container and/or the number of shoots per clump
If 10% less medium, means saving 10% on 7% of the total cost.
Saving in labor for the preparation and transport of the medium
Market AnalysesMarkets.
The target marketing process.Market segmentation.
Evaluating market segments.Selecting market segments.
Market positioning.
Markets MARKETS:
They consist of all the potential customers sharing a particular need or want, who are willing and able to engage in exchange to satisfy that need or want
TARGET MARKET: the group of customers (people or organizations) at whom a seller aims its marketing effort.
Distinctive Markets
ULTIMATE CONSUMER MARKET: People who buy products for their personal, non-business use.
BUSINESS MARKET: An organization that buys goods or services to resell, use in its own business, or make other products.
These markets behave differently!!
Market Segmentation
The process of dividing the total heterogeneous market for a product or
service into several segments, each which tends to be homogeneous in all
significant aspects.
Market segmentation is a basis principle of marketing.
Importance of Marketing Marketing is the heart of a nation’s
economic system. Demand for industrial goods is
derived from consumer purchases. Marketing is important to
organizations and must be part of the corporate planning process.
Marketing Planning
Based on short and long-range organizational goals
Begins and ends with the customer Interprets consumer needs and links
the organization and its environment a critical part of the Business Plan
Marketing Plan Outline Executive Summary
Environmental Analysis Strengths and Weaknesses Opportunities and Threats
Marketing Objectives Marketing Strategies
Marketing Implementation Evaluation and Control
Executive Summary A synopsis of the plan
Includes an introduction, explanation of key points, statement of costs
Very important and useful as it is often given to people outside the organization
Environmental Analysis
A comprehensive analysis of the company and the environment
relevant to the target market and the competitive situationMost difficult part of the plan
Requires information from the internal and external environment
Accomplished through secondary and primary research
Must have an ongoing way to collect and organize environmental data
Marketing Information System is critical
Environmental Analysis
It must consider:
External Macro-environment
Internal Factors
Target Market
Firm’s current marketing objectives and performance
SWOT analysis
Strengths and Weaknesses
come from inside the company and only exist when the company exists
must be analyzed relative to market needs and competition
helps to determine what you do well and what needs to be changed to meet the needs of the firm’s target market
Opportunities and Threats
focus on factors external to the focus on factors external to the organizationorganization
both opportunities and threats both opportunities and threats exist independently of the exist independently of the organization but greatly affect organization but greatly affect operationoperation
must differentiate O&T from must differentiate O&T from S&WS&W
Opportunities and Threats opportunities are favorable
conditions in the environment that could produce rewards for the organization if acted upon properly
threats are conditions or barriers that may prevent the firm from reaching its objectives
O&T stem from many sources in the environment
Marketing Objectives state what is to be accomplished through
marketing activities should come out of the SWOT analysis need sales volume, market share and
profitability objectives need objectives that specify the behavior you
want from the target market need objectives stated in each marketing mix need objectives stated in each marketing mix
areaarea product introduction, product improvement or product introduction, product improvement or
innovationinnovation pricing, distribution and communicationpricing, distribution and communication
Marketing Objectives It should be: expressed in clear simple terms written, so it can be measured
accurately for a specific period of time consistent with the organization’s
corporate strategy
Marketing Strategies
must outline how the organization will manage its relationships with customers so that it gains
an advantage over the competition
Elements in Marketing Strategy
Product Communications Price Distribution Service
Market segmentation:1. Identify bases for segmenting the market.2. Develop profiles of resulting segments.Market targeting:3. Develop measures of segment attractiveness.4. Select the target segment(s).Market positioning:5. Develop positioning for each target segment.6. Develop marketing mix for each target
segment.
Step in Marketing strategy
The process of dividing a market into distinct groups of buyers who might require
separate products and/or marketing mixes.
1. Geographic segmentation (geographic units).
2. Demographic segmentation (demographic characteristics).
3. Psychographic segmentation (social class, life-style, or personality characteristics).
4. Behavior segmentation (knowledge, attitude, use, or responses to a service).
Market Segmentation
1. 1. Measurability: degree to which a segment’s size and purchasing power can be measured.
2. Accessibility: degree to which a segment can be accessed and served.
3. Substantiality: degree to which a segment is large or profitable enough.
4. Actionability: degree to which programs can be designed to attract and serve the segment.
Requirements for Effective Market Segmentation
Segment size and growth: current segment sales, growth rates, and expected profitability.
Segment structural attractiveness: presence of many strong and aggressive competitors, relative power of buyers, presence of powerful suppliers.
Organization’s objectives and resources: do not mesh with organization’s objectives or philosophies.
Evaluating Market Segments
Selecting Market SegmentsMarket Coverage Strategy Alternatives
1. Undifferentiated marketing strategy: ignore market segmentation, go after whole market with one service offer.
2. Differentiated marketing strategy: target several market segments and design specific service offers for each one.
3. Concentrated marketing strategy: try to get a large share of one or more small market segments.
Market Targeting
Choosing a Market Coverage Strategy1. Company resources: the less the company’s
resources, the more likely a concentrated strategy is the best option.
2. Product homogeneity: the greater the differences in the services, the better it is to use either differentiated or concentrated.
3. Market homogeneity: the greater the homogeneity in customers, the better it is to use undifferentiated.
4. Competitors’ strategies: it may be wise to use the same strategy or a different one.
Market Targeting
The way organization services are defined by consumers on important attributes. The place
these services occupy in consumers’ minds relative to competitors’ services.
Positioning Strategies:1. Specific attributes of the services.2. The need the services fill or the benefits they
offer.3. For certain groups or classes of customers.4. Against an existing competitor or competitors.5. Against another product class.
Market Positioning
Choosing and Implementing a Positioning Strategy
Three Steps in Positioning
1. Identify a set of possible competitive 1. Identify a set of possible competitive advantages.advantages.
2. Select the right competitive advantages.2. Select the right competitive advantages.
3. Communicate and deliver the selected 3. Communicate and deliver the selected position to people in the selected target position to people in the selected target market.market.