Potential market

SECTION I: The product

1a

The innovation potential of this product is related to:

  • Technology-driven innovation (under the influence of the development of science – the market is not ready for the product)
  • Market-driven innovation (as a result of market surveys, the market expects the product)
  • Replacement of existing product
  • Product related to cost reduction
  • Radical new product
  • Other, what…

In between Technology-driven innovation and Market-driven innovation because the demand for food and feed  safety, quality and certification is mounting in the European area/consumers but the producers, the importers  and  the large retailers do not wish to put extra-money on this. A key role will be played by Institutions that have already started to enforce traceability and certification as a mandatory/law  request.

1b

What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
The end users are consumers so the added value is certainty and  safety of their purchases.

1c

What is the Unique Sales Proposition of the potential product?
A DNA product code label/ certification

SECTION 2: The Market

2a

What is the target market for the product? Please describe the characteristics of your target market.

¨ National

¨ European

X Global

Food and feed are commodities produced and consumed all over the world. Therefore the market can be global. To this regard important sectors such as import/export of special food mixtures such as ayurvedic’s or of officinal, aromatic and ornamental plants  can also be a target global markets since the diagnostic methods are applicable with the same efficacy to all plant species and do not depend on preliminary information on the target genome. A special mention should also be given to plant species mixtures such as animal feed. Tu.A Ltd methods are particularly suitable to investigate in a fast yet reliable way their composition and this methodology may as well be assumed as the method of reference for european  feed certification and label as requested by recent laws.

2b

How the product is characterized from the following options? Number of companies producing similar products in the field.

• Base – applied by all companies in the industry

• Leading – applied by a single or limited number of competitive companies

• Key –at a development stage, but has already proven its potential

Leading and key-at but relying on completely different methodologies and yet none of them cover all the needs of the different markets that are centered on plant specific diagnosis.

2c

What type of market demand will be satisfied?

• Existing demand – the market is already developed

• hidden (latent) demand – the market has yet to be developed

Mainly hidden demand on the following different market needs:

1. Food and feed safety, quality, composition, origin

2. certification and labeling of any plant or plant-derived product.

3. protection and certification of the EU regional foods, labeled with the PDO-TSG-PDI designations.

4. imported foodstuff and medicinal plant controls.

5. Identification of frauds and contaminants in agri-food products.

 

Potential market value (data for Italy, from italian sources):

1. market of analytical and consultancy services for agrifood and feed control, traceability and diagnosis in commercially available products and matrices: 2.000 Mi€ /year (s. Federalimentare)

2. Feed production and import: 6.650 Mi€/year (s. Assalzoo)

3. EU regional foods, labeled with PDO-TSG-PDI designations: € 10.000 Mi€/year (s. ISMEA)

4. Alternative foods (i.e. non allergic, functional, dietetic, ayurvedic etc,): 3.000 Mi€/year

Future markets: wine, seeds,vegetables, dairy products, medical herbs, ornamental plants.

2d

What is the current stage of the product’s market life cycle?

• Implementation, implementation in production (leading to a radically new product offers)

• Growth (rapid spread within the industry or outside it)

• maturity (parameters of the technical characteristics of manufactured products reached their maximum, higher-grade products can be manufactured on the basis of technological substitution)

First phase of life cycle needs implementation in production and a great deal of marketing.

New products offer concerns both certification by a DPC code and new diagnostic kits.

2e

Strategic partnerships (existing or potential).
Potential as for contacts already made.

Massa Spin-off Srl Italy (www.massaspinoff.com) as partner.

Fumagalli Technology group Spa (www.fumagallitechnology.it) as investors.

 

Potential as based on a recently submitted European proposal on feed certification, done in the outline of  the research for the benefit of SME associations:

Labor srl Roma Italy (http://www.labor-eu.net/)

SECTION 3: The Competition

3a

What is the competition within your target market?

The  following is a list of companies that are working in the field of diagnosis with somewhat similar molecular  tools and   services:

Genefast srl Italy; Neotron SpA Italy;  Incura srl Italy;  Bio-track srl , Italy; Ampligene, France; Tepnel (Euroclone) USA; Eppendorf srl Italy.

3b

What competitive advantages will the introduction of the new product ensue?

• lower prices based on lower production costs

• product differentiation (uniqueness of the product proposal)

Both

lower prices for similar products (DNA probes, ready to go or custom made) and NMR-based assays

AND

uniqueness of the service for DPC code and genetic certification and search for plant-derived contaminants

3c

Potential products relate to the following price range:

• High price range

• Average price range

• Low price range

Average price range:

Kits and probes diagnostic of plant species  and varieties

Qualitative and semi-quantitative analysis

Traceability and discovery of undeclared, undesiderable plant components

 

Low price range:

DNA barcoding on plant species, varieties and food and feed matrices

Monitoring and cataloguing of plant biodiversity on areas and territories

Plant seed certification

Metabolic profiling through NMR

3d

Potential products will be marketed:

• To regulated markets (e.g. heat supply, water supply, universal telecommunication services, agricultural products, fishing industry, architectural services)

• To markets operating on the principle of free negotiation between agents on the market

To regulate the market to ensure food and feed certification hence quality, safety , commercial value. Market sectors are numerous : all those dealing with plant and plant-derived products

SECTION 4: Indicators

Estimated cost of the new products 1.Products: diagnostic kits ready to go: € 200

2. Products: diagnostic kits custom made: € 4000

3. Service: DPC code single species/varieties: € 110

4. Service: DPC on mixtures, species identification: € 200

5. Service: traceability of single specie/varieties: € 60

6. Service:  Semi-quantitative assays: €  100

7. Service: Identification of contaminants:  € 2000

8. Service: Biodiversity screening: € 5000

9. Service: Metabolite search and identification: € 300

10. Service: Consultancy for agrifood companies: € 5000

Expected market volume (potential / maximum number of users) Clients:

Public and private diagnostic labs   n. 50

Agencies controlling food quality and adulteration n.2

Research laboratories n. 50

Producers feed , milk, wine etc   n. 20

Importers feed, food etc             n. 5

Consortiums of producers     n. 10

Large retailers                         n.1

Parks and gardens                 n. 3

Expected sales volume 1.Products: diagnostic kits ready to go: n. 200

2. Products: diagnostic kits custom made:  n. 20

3. Service: DPC code single species/varieties: n. 300

4. Service: DPC on mixtures, species identification: n. 500

5. Service: traceability of single specie/varieties: n. 250

6. Service: Semi-quantitative assays: n. 400

7. Service: Identification of contaminants:  n.100

8. Service: Biodiversity screening: n. 5

9. Service: Metabolite search and identification: n. 500

10. Service: Consultancy for agrifood companies: n. 10

Expected market share of the company (proportion between sales and total company sales in the relevant market) 20% with respect to diagnostic companies operating in the field of green biotechnology

KEYWORDS QUANTITATIVE ASSESSMENT (0-5).

Added-value potential

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5

Size of future market demand

1

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5

Competitive positioning of the product

1

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5

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