Micropropagation Enterprise Economic Considerations Market Analysis Commercial Plant Tissue Culture Laboratory  Independent Enterprise where the finished product is the tissue cultured plant in vitro  Integrated Enterprise where marketing and.

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Transcript Micropropagation Enterprise Economic Considerations Market Analysis Commercial Plant Tissue Culture Laboratory  Independent Enterprise where the finished product is the tissue cultured plant in vitro  Integrated Enterprise where marketing and.

Economic Considerations
Market Analysis
Commercial Plant Tissue Culture
Enterprise where the finished product is the tissue cultured plant
in vitro
Enterprise where marketing and nursery are integrated together
Independent Laboratory
Determining Factors:
Research and development
Production management
 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
 Venture capital has the tendency to loose patience
 Remember, only larger and well managed enterprises
have a fair chance to survive
 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
A long time relation between producers and
customers based on profit and mutual trust is
Frequent discussions, visit to laboratory and
thorough intercourse with receiving nurseries
and even producers of the limited product often
lead to improvements in procedures
Presentation of a well known, traditional plant as
a new product
Importance of Market
How are patent regulations?
Which varieties are economically suitable
for tissue culture?
Which cultivars can replace another?
Can tissue cultured plant open a larger
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
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
2. Media
3. Equipment + laboratory cost
4. Other
The second most important cost is related to the
space needed to grow the plants
Possibilities of
lowering costs
Planting density
 Good production management is needed to reach a high
 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
Two major constituents of electricity cost
are lighting of the shelves in the culture
room (60%) and cooling the culture room
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
 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
Market Analyses
The target marketing process.
Market segmentation.
Evaluating market segments.
Selecting market segments.
Market positioning.
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
who buy products for their personal, nonbusiness 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
Importance of Marketing
Marketing is the heart of a nation’s economic
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
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 situation
 Most difficult part of the plan
 Requires information from the internal and external
 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
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
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
both opportunities and threats exist
independently of the organization but
greatly affect operation
must differentiate O&T from S&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
Marketing Objectives
state what is to be accomplished through marketing
should come out of the SWOT analysis
need sales volume, market share and profitability
need objectives that specify the behavior you want
from the target market
need objectives stated in each marketing mix area
product introduction, product improvement or
pricing, 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
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
Step in Marketing strategy
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.
Market Segmentation
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
3. Psychographic segmentation (social class, life-style, or
personality characteristics).
4. Behavior segmentation (knowledge, attitude, use, or
responses to a service).
Requirements for Effective
Market Segmentation
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.
Evaluating Market Segments
Segment size and growth: current segment
sales, growth rates, and expected
 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
Market Targeting
Selecting Market Segments
Market Coverage Strategy Alternatives
1. Undifferentiated marketing strategy: ignore market
segmentation, go after whole market with one service
2. Differentiated marketing strategy: target several market
segments and design specific service offers for each
3. Concentrated marketing strategy: try to get a large share
of one or more small market segments.
Market Targeting
Choosing a Market Coverage Strategy
1. Company resources: the less the company’s resources,
the more likely a concentrated strategy is the best
2. Product homogeneity: the greater the differences in the
services, the better it is to use either differentiated or
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 Positioning
The way organization services are defined by consumers
on important attributes. The place these services
occupy in consumers’ minds relative to competitors’
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.
Choosing and Implementing a Positioning
Three Steps in Positioning
1. Identify a set of possible competitive
2. Select the right competitive advantages.
3. Communicate and deliver the selected position
to people in the selected target market.