Team:Shanghai Metro HS/Entrepreneurship

Shanghai_Metro_HS

Business Introduction:

The core business of our company is production of novel feed additives to silage

based on bioengineering techniques. Our feed additives are aimed at improving the meat quality and yield of ruminant livestock such as beef and mutton, and reasonably balancing the market price. In China, domestic feed demand has increased by nearly 10% in the past decade. Therefore, it is expected that the future market of silage additives is promising, and hopefully the feeding quality of cattle and sheep will be continuously improved through our efforts.

Introduction of Core Divisions

The Ceres Company is divided into Innovation Division and Business Development Division

The Innovation Division and the Business Development Division are responsible for R&D and experiment of products, and marketing & sales of products respectively. The two divisions have a clear separation of duties of labor and are led by their respective team leaders. Regular cross-division meet-up are held to exchange the work progress of each division.

Industry Background

Silage has occupied a significant role in the existing livestock industry and has addressed the nutritional composition and palatability of traditional feed. However, it is admitted that silage has some disadvantages.

1) The small crushing fineness of raw materials of silage and the production of lactic acid by fermentation, feeding too much silage may result in some digestive and metabolic disorders, such as acidosis and reduction of the butter-fat content. This issue may impact the value chain of livestock industry, ranging from livestock raisers to the end consumers, that is, the public.

2) The cellulose in silage can hardly be absorbed by the ruminant, which is equivalent to a waste of materials and a waste of investment costs for livestock raisers. The investment costs will be directly reflected in the price of beef and mutton, which will be transferred to the end consumers, the public.

Our feed additives are specially designed to address the cellulose issue contained in silage. Our feed additives contains digestive and absorptive cellulase, which will be beneficial for, ruminants’ digestive systems, helping ruminants absorb more nutrients, improve their availability, meat quality and even the quality of agricultural and sideline products.

Icon: The demand for ruminants and animal feeds is on the rise, which is beneficial to the development of products of the Company.

SWOT Analysis

Product advantages:

The current absorption rate of cellulose in silage is not high while increasing the incidence rate of ruminants. Our products can help ruminants raisers reduce the incidence of animal diseases and the wasted breeding costs and improve the meat quality of ruminants. Many market surveys show that people do not accept additives because they are worried about health problems. Our products are produced by genetic engineering techniques technology rather than chemicals. In this aspect, it can dispel the customers’ concerns about chemical additives. We believe that quite a lot of people is willing to accept products of high quality without any chemical additives.

Disadvantages:

Influenced by the blank nature of the market, this product has no similar products and belongs to newly developed technology. So, this novelty will bring insecurity to consumers. Moreover, due to the unfamiliarity with our product, the consumers do not easily trust this product and are mindful of its negative effect.

Because the final consumer, the public, is not familiar with our products, it is easy to associate them with hormones or other chemical additives. Naturally, this will aggravate the public’s resistance to the new product.

This product must be purchased by the farm, which will increase the breeding cost of the farm.

The current farm does not have a necessary demand for this product. (Low market demand rate)

Product Promotion Channels form: Official account and popular science video The publicity of our product is divided into online and offline forms.

The online form covers WeChat official account marketing and the popular science videos that are directly dubbed by the staff of the Company.

The offline form covers fixed-point peripheral product sales and publicity. The types of peripheral products are complete. There are pillows, key chains, masks, small mirrors, and canvas bags around a series of peripheral products of related products. The public’s awareness and intimacy of the Company and products can be improved by integrating the Company’s product concept and value into daily supplies.

Core product functions:

Its core purpose is to increase the degradation of cellulose in silage, reduce the incidence rate of ruminants, and improve their meat quality to minimize ruminants raisers’ breeding costs ultimately. The general functionality principles of our product is listed as follows:

The cellulase gene is extracted and then transformed to recombiant plasmids;

A probiotic will be used to serve as the chassis to express protein functional in degrading cellulose

The probiotic will be then utilized as the core element to produce our feed additives for silage

Business Canvas:

Two cubes at the bottom are undecided.

Analysis for competitive products

This product has no competitors and broad market prospects

Business direction:

First of all, we will highlight publicity. Publicity is divided into online and offline forms. Large-scale online publicity will be implemented to improve product awareness. In the online publicity, we also make popular science videos to help the public have a deeper understanding of our products. In offline publicity, we sell peripheral products. For the profits of the peripheral products, our team has the following planning, 1. for public welfare; 2. for future product marketing and experimental support.

Meanwhile, we will also look for some ruminants raisers on a small scale to understand the situation and reach agreements in the product R&D period. Before the product appears on the market, we will issue a detailed safety guarantee: The specific content is that our product is the biology gene engineering product and does not belong to the addition of additional chemicals. This can dispel some of the concerns of ruminants raisers and end consumers from the perspective of science and authority. Meanwhile, we will adhere strictly to the current government-imposed regulations on application of genetic engineering in feed additives and relevant areas. In addition, it is hoped that we can find a professor or leader with a high position in the biological field to speak for our products and reflect the safety of our products with his social impact.

Once the product appears on the market, it will be used immediately, but only the application on a small scale is allowed. Our team will continuously track the product effect and product impact. We will prioritize the feelings of ruminants raisers and final meat consumers and then decide whether our products are used on a large scale.

Future planning direction for products:

The Company’s products can be divided into two stages for marketing. The first stage focuses on low price and high output and the second stage focuses on high quality and high price

Two additives are produced. Their performances are different but the basic concepts are the same. The output is deemed as the starting point. Because of the market gap, the public’s awareness and familiarity with this product are very low. Therefore, the first step of marketing is to get customers to know the product at a low price to further cultivate customers’ dependence and familiarity with the product. Secondly, the quality is deemed as the starting point. Such products focus on quality and high-end quality. Because we have improved our social awareness and market share at low prices, this product has a customer base at this time. It is necessary to introduce new high-end products by taking advantage of customers’ awareness of this product. At this time, we must screen customers because the target customers have changed. We should invest a certain cost to search for a special organization for certification and get a certificate or certification mark. Besides, we can also invite a leading figure in the biological industry to endorse this product and dispel the public’s concerns about this product to further improve the reputation and status of the product. After that, the product premium will be reached. It is important to find the balance point to maximize the profit. Our company provides different products for different consumer groups, which can fully develop the market and reduce consumer surplus.

Future planning:
In the short term:

It is needed to focus on improving and optimizing products. Meanwhile, it is required in order to sell and use products on a small scale.

In the early stage of the product, the Company's product-market falls on the Chinese mainland, and the use and sales on a small scale. After the product appears on the market, the After-Sales Service Department of the Dry Department will follow the official account and ask the customers regularly for feedback on the products. There is also a message function on the Company's public account and network page. The Dry Department will discuss with the Wet Department based on all feedback and then solutions to improve the products. Since then, the Wet Department will continue its research and development. The Dry Department continues to collect feedback and perform market research and product sales and publicity.

The goal is that the Dry Department and Wet Department cooperate after the product appears on the market to improve and optimize the product's shortcomings.

In the medium term:

It is needed to focus on publicity and market expansion.
After a long time of verification, the impact on the product is tracked, and the continuous optimization and improvement of the product are performed. Therefore, we believe that the product has a certain guarantee in terms of safety and effect.

Under such conditions, the Company plans to invite famous professors or leaders in the biological field to endorse our products. We hope to prove the safety of this product through its influence, knowledge, and ability. Unfortunately, due to the lack of understanding of most people, it is easy to connect our products with chemical additives or hormones that have had negative news on the market.

In the long term:

It is needed to increase product sales areas and expand the share of the global market.

The survey shows that beef, milk, and small ruminants in East and Southeast Asia are very high. Therefore, the increased demand for ruminants is conducive to the entry of this product into the local market.

The survey shows that foreign countries pay more attention to the ethics of the industry. Therefore, if the Company enters the foreign market, the Company will focus on the return to society, the help to the vulnerable groups, and the best help to employees' quality of life. This method is feasible to gain market recognition and retain foreign market talents.

High market recognition can provide a greenhouse development' environment for this product.