Genetics: Case France and bio-technologies (business model)

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Genetics: Case France and bio-technologies (business model)

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Abstract

Agricultural chemical industry has always been considered to be all but environmental friendly. Nevertheless it is also one of the industries trying to find out solutions to population's growth, overpopulation and their calamitous consequences on the environment -air, water and soil pollution. Our group, Case Ltd, is not an exception and has tried to make always safer and environmental friendly products. Researches on bio-technologies are one of the best ways to make profit while using a safer technology. That is why we decided to invest in bio-technological products. Case Ltd first launched in 1996 Herbfree, an herbicide which is an effective weed-killer for genetically modified crops and then a genetically modified maize seed to be used in conjunction with Herbfree: Herbfree seed. Herbfree plus Herbfree seed form the Herbfree System. The Herbfree System was first launched in Asia where the overpopulation and the correlated worries are the worst in the world. It has been very successful there. That is why the group decided to extend Herbfree commercial reach and to launch it in Europe.

Project's genesis and context.
Management and infrastructures.
1. The Herbfree system in the organization.
2. Staff and infrastructures evolutions.
3. Management issues.
Market research.
1. Demand research.
2. Customer target.
3. Positioning.
4. Competition.
5. Legal barriers.
The Product.
Strategy and positioning.
Marketing plan.Seeds companies' strategy.
1. Seeds companies' strategy.
2. Packaging and labelling.
3. Communication and advertising.
Business plan.
Explanations.
Conclusion.
Executive summary.
Indicative bibliography.

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[...] It can be applied at any stage during the maize plant cycle and it is supposed to have a strong degradability in soil and water. It has provisional authorisation from for sales in Europe as it complies with European directives and after a 4 years testing period, it will be given full accreditation. The Herbfree seed is a genetically modified seed designed to resist to the active agent of the Herbfree Herbicide (the molecule PHM). It has already been successfully commercialized in Asia and Pacific markets. [...]

[...] Other stakeholders CASE will also have to address distributors, retailers and employees. CASE needs to reassure them by explaining how good our product is on economic basis. CASE should emphasize that the business plan is sustainable and has already proven to be successful elsewhere. Business plan Provisional budget Provisional budget: comparison with classic herbicides Explanations Year 200x Cost of production per L 13 Price of herbicid sales for 1L Marging per L sold Estimated market 1605300 Herbfree estimated market share Estimated sales Estimated turnover Gross marging Price of seed sales for 1Ha Gross marging per Ha Comission on sales Profit on seed sales Costs for new employees Costs for staff training 600 Costs for communication and 510 marketing Total cost for the new product Total Profits I. [...]

[...] Besides, a high price will support the high quality image of CASE products, increase people's confidence on the brand and therefore tackle GMO-related fears. So, we are planning to have a differentiation strategy through a full product concept that is supposed to be based on our assets (good reputation, good image, technology, efficiency) and that should allow us to beat our well-known but more specialised competitors. Short term, middle term and long term objectives: Our first targets months 1 year) are to make a successful launch of the product, to create the support structures needed (new sales and experts teams, marketing staff, ) as well as to seduce the big growers. [...]

[...] But, as CASE takes charge of R&D and sales and already have a distribution network, what we need is an institutional firm with the lowest price and the lowest risk in terms of supply. Pioneer is the one company that can provide that best. What do we want from them? Either CASE or Pioneer will have pre-defined roles in the partnership. CASE won't buy seeds from Pioneer in order to resell them. CASE and Pioneer will split risks since CASE will only have a stake in every sale of seed made by Pioneer. [...]

[...] Positioning Positioning in France in the crops protection sector Competitors Market Research & Retail image, Compounded share innovation scope reputatio positioning n Agro SA Nemours We gave a 1 to 5 mark to each company regarding each one of the key factors of success and then we did a compounded sum to give to each player an overall performance mark. According to this analysis, CASE has the third place in terms of competitiveness. It has an outstanding position in terms of R&D and market share, but it loses ground compared to its competitors in the grounds of image and retail scope. [...]

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