Arangetram! - Advanced Training in Plant Breeding (ATPBR)

Arangetram!

…ascending the stage by a dancer on the completion of formal training.

Green Room scenario

o Ship to market…

o Seed warehousing, conditioning, packaging

o Production: FS & F1

o QA: GP, Germination, Vigour

o Product Development: Trials, Performance data, Segmentation, Score Card

o Breeder & GermplasmIn-house

All under control

Hybrid Arangetram!

Diagnostics

o Why the best genetics, thoroughly tested and quality assured hybrid gets rejected in the market?

o Why a less superior hybrid is well accepted in the market?

o Why big Industrial houses tried their luck in seed business and wear out suddenly?

o Why some seed Cos have an uninterrupted success stories YoY?

Hybrid Arangetram!

Surgical strikeCounter attack

Public performanceEnvironment

Truant Monsoon

S&M Push

Trade support

Commercial strategy

Crop Management

Competition

Brand Pull

Into Public

Out of control

FromIn-house

All under control

New F1/Variety/HYV

Unfolding the strategy

Environment

S&M Push

Commercial strategy

Crop Management

Competition

Brand Pull

New Variety

Next…❖ SEED: A ring side view❖ Product launch❖ Farmgate presence- importance❖ Legal compliances❖ Farmer psyche❖ Purchase decision❖ Pricing & commercial handling❖ Competition❖ Promotion strategy❖ Role of S&M team❖ Role of trade❖ Complaints

Seed is a very very important agri input. The quality of seed and it’sgenetic make-up determines the outcome of farming.

Here is an attempt to capture seed beyond it’s botanical definition.

Seed means different to different people associated with it!

Ringside view!

Seed: What is it?

•A seed is an embryonic plant enclosed in a protective outer covering.

•The formation of the seed is part of the process of reproduction in seed plants.

•Seeds are the product of the ripened ovule, after fertilization by pollen andsome growth within the mother plant.

•The embryo is developed from the zygote and the seed coat from theinteguments of the ovule.

Text books & Wikipedia

Seed: Life in a capsule

•Plants produce many seeds to ensure the continuation of the species

•Seed protects the genetic code of the species

•Storage of germpalsm in case of adversities

•Convenient means of propagation to wider geographies

For the plant per se (1/2)

Seed: Perpetuation

For the plant per se (2/2)Seed is store house of enough food & moisture

till it germinates and able to synthesize its own food

Seed Disseminate Soil & moisture Germinate Start photosynthesis

Enough food

Child

Lunch box

The child & lunch box theory!

Seed: Love & Care

•Seed is a grain, staple food

•Seed encapsulated in a pulp is called fruit

•Plants evolved fruits as a kind of bribe!A way of enticing mobile creatures like birds & insects to ingest their seeds. Animals then excrete or throw away at a distance the inedible seeds, as they move widely about the landscape.

Plants themselves take no metabolic benefit from the sweet pulp of their fruits.It’s a trap agents for seed dispersal..!!

For the man & animals

Seed: Kick back!

•Seed is carrier of technology

•Seed is a container of germplasm

•Seed is packaging for millions of desirable traits

•Seed is a lab & drawing board

•Seed is creativity & measure of his/her success

For a plant breeder

Seed: Germplasm

•Seed is an assurance of income*

•Seed is a hope..for his daughter's marriage, son's education, to clear the

debts, buying a tractor.....

•Seed is a social status, pride & recognition

•USPs: 6th sense

Power of seed & farmer:40g of tomato F1 seeds (1 acre) Can feed 1,000 households with tomatoes for 3 months!

For a farmer

*Seed is yield!

Seed: Hope

•Seed is a business opportunity

•Seed is a value chain

•Seed is an investment

•Seed is profit

•Seed is a business secret

For a seed entrepreneur

Seed: Biz model

Not an easy businessPatience & Passion

Biological entityHuge risk

•540 registered companies•80 have in-house R&D

•Seed production share: •Private 64%•Pubic 36%

•Market share (Volume based)•Private: 47%•Public 53%

•Market share (Value based)•Private Rs 9,000 crore•Total 18,000 crores incl FSS•CAGR 12%

•Exports: Rs 1,000 crores

Seed: Biz numbers

Source:ICARLok Sabha archivesFSIIRabo BankIndustry research

Crop HybridizationUn-tapped

potential

Maize 70% 30%

Cotton 50-70% 30%

Paddy 5-7% 95%

Vegetables 70% 30%

•Seed is food security

•Seed drives GDP

•Seed generates employment

For a nation

Seed: Security

Milestones35 to 135

Ship to mouthFarm to ship

•Seed to seed responsibility - Sowing to harvest

•Seed is input selling- A promise of yield

•Selling seed is selling a concept –Every product (F1, OPV, HYV..) is a concept

•Selling seed is selling a dream- sapnon ka soudagarAn assurance of bountiful return

•Seed is Speed –To cope up with rapid replacement of hybrids & varieties & shortened PLCs

For a salesman

Seed: A promissory note

•Seed is not a commodity, it is an input

•Seed is a biological entity, living

•Limited shelf life

•Seed is an emotional decision for the farmer

•Highly seasonal, difficult to forecast, sudden shifts in cropping pattern

•Segmentation

•Limited sales window

•Too many variants

•Too many selection criteria

Fundas of Seed businessDisastrous

Wrong product in “right” marketRight product in a wrong market

Never experiment with your customer

Bottom line:Selling seeds is like football game! All the players have to contribute equally to score the goal. Never care who hit the goal…!! The team wins.Create win-win situation for the entire chain from Breeder to the farmer

Farmer psyche• Careful approach

• Past experience

• Commodity prices

• Ease of cultivation

• Peer pressure

• Brand loyalty

Decision process

•The most challenging job on the planet!*

•Popular adage is that motivate seeds salesmen:

“Give him (a little above) ordinary product and he presents it as an extraordinary!”

And vice-versa

•Seeds salesmen drive the value chain of an organization!

Selling seeds...!No cakewalk, indeed!

*Exaggeration intended

Selling a packet of seeds..

Bottom line:Why always competitor’s hybrid looks more attractive!??

•Seed salesman has to be •Technically strong, •Commercially prudent •Street smart, too

•Price war... •Competitor- better product, lower price•Trade- Higher discounts•Boss – Higher NRV

•Need: Constantly upgrade his knowledge

Human angle

• Agronomist• Pathologist• Entomologist• Meteorologist• Commodity price

forecast• Marketing +

•Each variety/hybrid is itself a brand. Seed Co is an add-on factor

For example a Co market leader of maize cannot ensure “unhindered” acceptance of its cotton. No piggy ride! Efforts for cotton should start from level zero.

•MNCs don't enjoy any special status (no craze for foren maal & brand).

•Top brand = Quality + Performance + Sales & Service•Monopoly product X

•Pull for the product... Xvery short lived, temporary

Bottom line:Every Co has to deliver quality and performance, and undergo the same curve.A company cannot be champion of all crops, and so does a salesman.

Branding

•Cannot wish away in any business!•Forms of competition in seed business:•To worry about:

•Hybrid performance•Field presence•Rapport with trade•Trained sales team

•Not to worry about:•Low pricing•Unbelievable incentives to trade•Too friendly with trade•Posters & banners

•Dangerous: Me too, copy cats, pumping unethical technologies

Bottom line:Companies that solely focus on competition will ultimately die!Those who focus on value creation will thrive.

Competition

Brand icons• A brand icon, other than a logo in all promotion materials• Preferably an attractive mascot or a caricature • Helps farmer to connect with a brand across crops & varieties• Repeated on all promos• Easy recognition, relatable, simple yet memorable

Branding

Nomenclature!• Numbers, Usually 4 digits• Numbers are confusing• Numbers with an alphabet inserted • Prefix e.g. ‘x’MH 4200 means X Maize Hybrid• Attractive names help farmer to remember correctly• Give an indication of the features!

Product identity

Promotion material• No tall claims• Crisp, No long texts• Simple & straight

Seed is no FMCG

• No effective promotion strategy• Personal contacts is most effective• Matter of trust• Showcase results• Social media trials on

Customer reach out

• May not have a direct impact• Reminder value• Threaten/deterrent the competition• Foot print of rural presence by sales team

TradeVital link between Co & farmer• Help in brand spread• Create opinion about product, brand and sales team• Help in introduction of new products• Help in handling local conflicts

• No assured loyalty• Wants better benefits

• Keep good rapport

80:2020 % trade gives 80% business

Trials Intro Growth Grand growth Peak Decline Phase-out

Pipe-line hybridsVolu

mes

Time

Market Share & PLC

P1 P2 P3

Ve

rtic

al G

row

thExisting Area New Area

New Product New Product

Existing Area New Area

Existing Product Existing Product

Horizontal Growth

Product-Market Mix

MRP• No limits imposed by law on MRP, but statutory need

• Exception BT cotton, Cap on MRP

• MRP is an indicator price

• Seeds are usually not sold on MRP

• MRP is usually a higher than the projected retail price

• It is the leverage to the retailer

Pricing

NRV• Targeted realization

• Drives profit

• Extremely crucial & critical

• Confidential & internal for the organization

• Bases for price administration into market

• Determines the product positioning in the market

How to kill a product?Wrong pricing!

Pricing

Price sensitivity• Farmer is not averse to high pricing• Add value & charge• Stretch to the extent he pays “happily”

Benefit statement

Crop Strategy Hybrid 1 Hybrid 2 Hybrid 1 Hybrid 2

Price Rs per kg 20,000 80,000 200 350

Seed rate/acre 40 g 40 g 8 kg 8 kg

Cost of seed 800 3,200 1,600 2,800

Yields 20 MT 35 MT 20 q 35 q

Com price/kg 5 5 15 15

Gross income 1,00,000 1,75,000 30,000 52,500

Seed cost diff 2,400 1,200

Income diff 75,000 22,500

Tomato Maize

Strategy Cost pricing Value pricing Benchmark pricingApproach COGS plus Dynamic pricing Trend settingProfitability Medium/Low/Negative High Very high

Loss leader pricing Strategic placement Significant value added

Trade margin High High Very high

Product attributes

Traded products Add value & charge Unique benefitsNew entrant, Low brand trust Recover cost savings of farmer MaturityPublic bred Reduced PP cost High toleranceMe-too, Crowded market Yield advantage BioticHigh volume handling Higher income AbioticGlut Fertilizer efficiencyObsolescence, Decline stage Storability of produceLow shelf life TransportabilityHighly seasonal Nutrition advantageService product Value to consumers

Cost components

COGS Competitor pricing Stretch as much as possibleMargin More/Less/Equal Customer pay happilyS&M expenses Trusted brand Encash trustInterest costsTrade marginWrite offs

Driver Price Performance USPs

Pricing strategy

PLC: Placement & PricingStage Growth Stable/Plateued Decline

Strategy Pull Pull & Push Push

Impetus, Speed Retain Clearance

Profitability High to Very High High, Competitive Medium/Low/Negative

Approach Proper segmentation Stay in known markets Niche markets

Trade margin High High Very highExtensive demos Avoid problematic markets Get commitment form channelShowcase performance ABS ABSAtractive POPs & Testimonials Watch out competition pricing Sales return?VLMs Quantity linked incentive to trade Least spend on promotionSample displays@ sales outlets Careful spend on promotion FlyersTrained sales team Posters, Flyers Careful pricingControlled & consistent supplies Give price benefit to farmersTrade confidenceContolled availbaility

Product information Stock monitoring Pricing flexibilityEncash brand trust Watchout for me-toos Cost controlTraining sales team Avoid over stockingPrice justification to customersSpecial PP & agronomy tipsReward tradeCreate visibility

Driver USPs Performance & Price Price

Tool Box

Critical factors

PLC: Placement & PricingStage Growth Stable/Plateued Decline

Strategy Pull Pull & Push Push

Impetus, Speed Retain Clearance

Profitability High to Very High High, Competitive Medium/Low/Negative

Approach Proper segmentation Stay in known markets Niche markets

Trade margin High High Very highExtensive demos Avoid problematic markets Get commitment form channelShowcase performance ABS ABSAtractive POPs & Testimonials Watch out competition pricing Sales return?VLMs Quantity linked incentive to trade Least spend on promotionSample displays@ sales outlets Careful spend on promotion FlyersTrained sales team Posters, Flyers Careful pricingControlled & consistent supplies Give price benefit to farmersTrade confidenceContolled availbaility

Product information Stock monitoring Pricing flexibilityEncash brand trust Watchout for me-toos Cost controlTraining sales team Avoid over stockingPrice justification to customersSpecial PP & agronomy tipsReward tradeCreate visibility

Driver USPs Performance & Price Price

Tool Box

Critical factors

•Logistics: Reaching the market on time•Seed Produciability

•Limited sales window, highly seasonal crops

•Below promised performance in the farmers' fields

•Promise and negate it simultaneously!!

•Many bosses... Management, breeders, trade, regulatory authorities, competition and the customers (farmers), and a wife at home!

•Nothing under his control... Monsoon, Trade support, Surprise moves by competition, farmers' management, ... Ram bharose!!

Bottom line:Seed is a biological entity,Performance cannot be assured over geographies, seasons and growing conditions.

Uncertainty galore…

•Adoptability issues

•Varying tolerance- Biotic & abiotic

•Obsolescence- Variety & technology(due to strong pipelines & technological interventions)

Shortened PLC

•Viability/shelf life, Storage pests & RH factors

•Credit & collection challenges

•Stock return

•Me-too

Bottom line:Final output... variance in promised quantity of quality produce!!

Set of woesLong life cycleArka AnamikaArka ManikDCH32NHH44Sunbred 27530V92900MAvinash2JL24TMV2M35-1

Difficult to replicate demo results on the farmers’ field.

So Selling seeds is a constant struggle to narrow the gap in results.

Women seldom accept seed selling as a career option. Leave the struggle to men!But,...Farm women have the final say while buying seed!Farmer listen to his wife than his peers*

*No discussion!! Out of context

Moral of the story!

Selling seeds...!No cakewalk, indeed!

The unsung heroes!

Selling seeds...is a real joy!Let’s enjoy the challenge!

Selling seeds...!No cakewalk, indeed!

The unsung heroes!

Seeds salesmen

are responsible for

food security of the nation

Let us salute him!

For the young audience

Service as Seedman

is as respectful as service in defence

Be passionate about seeds

Choose it as a career option

Serve your motherland

Seeds!

Thank you

Milestones35 to 135

Ship to mouthFarm to ship

Sharad Deshpande/ 2021/ [email protected]/ +91 94835 10635