Product Development in Seed Business Industry

Hello Friends!

I would like to share product development (PD) aspects in seed business industry. Actually most of Indian seeds company have separate division of PD or some company it comes under either R &D or Sales & Marketing. This is sometimes also referred as Technology Development particularly in Multi National company.

What is product development with respect to Seeds industry?

In a single sentence, "it will defined as the connecting link between R & D and Marketing". 

Now, In general practice, Agriculture Extension Officers are responsible to disseminate new technology as well as testing the developed hybrids/varietals in the lab to the farmers field under system of State Agriculture Universities/Krishi Vigyan Kendra/Government programme. But do you know what is the success achieved till date. I think it is very less and if somewhere happening genuinely then it will be with slow pace.

For the accelerate the product advancement with high speed rate, it required a separate division as Product Development by national and multinational seeds business company. It will have to accelerate the pipeline hybrids/varietals with help of new technology and precise data analysis software for better quality and quicker decisions among test entries to be commercialized for the business. This includes activeness of R&D team, PD team and marketing team where everyone can plan to scale up the field testing and product development cycle to drive innovative products that are extremely superior to existing product portfolio after that we would certainly speed up the business. 

This is the genuine way to put effort to develop a product from research lab to farmer's land. Coming to linkage with the market, the jobs of PD starts from testing and placing new products into the market or development of new market segment.

Product development is a complex process which is vital in the marketing of agribusiness products. In this process we create breeding aims to ensure a targeted product introduction of new vegetables. All potential new products are then evaluated extensively to ensure that we enhance our product portfolio to appeal to a wide international customer base. (by http://www.tozerseeds.com/us/en/product-development/)
Concept"-

1. SEED TRIALS

Product development staff carry out extensive product trials in locations around the world in order to build up an extensive knowledge and understanding of our products and their capabilities. This enables us to have full confidence in our products when we market them to our customers.

Trials of new products are carried out in different locations, initially at HQ but then with specialist growers in different regions and with independent trial companies. Trials are grown as near as possible to the way growers produce their crops commercially, this promotes a more accurate understanding of production in a commercial field situation.

2. TRIAL RESULTS

At each of these steps the product developer will be assessing the new varieties against existing varieties and liaising with both the breeder and the sales staff. He or she will also be keeping a detailed record of performance.

It is not unusual for varieties to be trialled over a period of years to build up the required data needed to offer the product for sale, many of our product development reports and details of upcoming trials can be found.

3. RETAIL CONCEPTS

Once the product development team and the sales staff have decided to move forward with a certain variety we will involve our partners within the supply chain to discuss the potential of a new variety.

On many occasions a retail concept emerges from these discussions and new varieties are put to the test in processing plants and are tested in terms of packaging and shelf life. It normally takes a few years before a new product finally hits the retail shelf because it needs to be tested extensively to ensure it will succeed in a competitive environment.

After understanding the market needs, new hybrids and existing hybrids are planned for on farm demonstration in farmers field.

Objectives of Product Development:

1. To develop a new market
2. Identification of hybrids suitable to different agro-climatic conditions
3. Demonstration of new and existing products to market staff, distributors, dealers and farmers
4. Developing confidence about the new product before launching into the market
5. Acts as direction to future mode of research

Future Thrust:

1. Exploring the niche markets
2. Development of testing centers in oversea.

Role:

Identification of the products and promotion of the products and help the marketing team to increase the volume of sales.

Aspects of market development: 

1. Product Promotion:-

• Promotional materials such as leaflets, poster, banner etc. should be in local language.

2. Supply Chain: 

• Timely placement of seeds to our main supply chain partner (Distributor)

3. Market Segmentation:

• Each local area in a particular states having different market segmentation. Eg. Certain area needs early maturing hybrid paddy by maximum number of farmer. Thereby company should make available these material on right place at right time. Seeds business are also very short period of market particularly paddy and corn sowing in Wet season. Sale will just start after first rainfall up-to one week and again if rainfall did not happen then again sale will down drastically.
• Paddy: 
• Duration wise:Very early maturity, early maturity, medium early maturity, medium maturity, late maturity and very late maturity
• Grain Size: Bold, Medium Bold, Slender, Short Slender