ColoURoseS Business Decision Making –Business Plan Team: Andrew Nov.2010
Startup in flower business
Create disruptive technology to engineer new color variants
Breeding takes > 20 yrs, our technology <2 yrs
Current and future potential buyers of the company's product(s) or service(s).
US market is $3.83B (2009)
Cut flowers: $1B
World flower market is >$100B
Market is flat currently ( recession) but long term growth is estimated at 6% yearly
Market exists of top-level specialty firms (new products), propagators and sale channels
Our goal: Specialty firm delivering new technology, new breeds
CEO J. Doe, MBA CFO J. McCLoskey VP R&D R.E. Everts, PhD VP Sales & Marketing L. Zhao VP Operations T. Suseberry Board of Directors J. Doe, MBA (Chairman) N. Blue, CEO Florigene Pty (Suntory Ltd subsidiary) M.J.T. van Eijk, SVP Keygene D. Austin, David Austin Roses S. Korban, Profesor UIUC W. Parrott, Professor UGA
Market analysis summary:
The floral industry has grown six percent annually, while the global trade volume in 2003 was US$101.84 billion. It consists of cutting flowers, pot plants, and bedding plants.
The worldwide cut flower market is estimated at $30B/annum
Cut Flower Market size is >$30B globally. The rose is rapidly gaining in market share, account for approx 15% of that market ($450M).
New entrants into the cut flower trade concentrate on the rose, its favourable value-to-weight ratio and high sales volumes being the main attractions (ITC, 1997).
We choose roses as our enter market, target is to acquire 10% of the market, 45million revenue/year.
Aiming for other potential market segments.
Traditional market segmentation/supply chain:
Our market segmentation/supply chain:
Growers, wholesalers, retailers are our direct customers. In this way we could shorten supply chain, increase our market share and benefit our end consumers.
Our disruptive technology enables easy color additions to plants, and will reduce market lead time from 20+ years to <5 years now and potentially <2 years in the near future.
We have IP for this new technology.
Can have access to growers, as well as wholesales, retailer and individual consumers.
Sponsorship- fashion show, public welfare activities, etc. Search engine optimization- to increase our ranking on popular search engine, such as Google, Yahoo, Amazon, Bing Social media- facebook, twister, etc.
Company’s web- customer can order online Online ads
…then click the placeholders to add your own pictures and captions. Choose a layout…
Market segments Breeders & Propagators
What is our value proposition?
Currently roses only 1 or 2 hues
All other roses are artificial
Cut Flower Market size is >$30B globally
US market is $1B
Roses account for approx 15% of that market ($450M)
Rainbow roses ~10% of that market ($45M/annum)
50% of roses get imported
Our technology has potential to enter any market segment and take up 5-10% share
Licensing of our technology for other plant species generates royalties and profit
Bacterial color genes readily available Easily implemented into plants Suntory/Florigene own patents on several plant color genes Florigene offers their BLUE gene IP for board position
Isolate and grow callus from leaf petioles – embryonic tissue (unlimited supply!)
Gene delivery is performed after routine subculture in Embryo Proliferation Medium
Gene construct is a fosmid containing a sequence of color genes interspersed with promoter sequences and transcription factor binding sites (pH and O2dependent). Also included are SWITCH genes that enable turning genes of or on.
Create callus from leaf petioles Create gene constructs and add to plant genome Grow new plants from callus and select plants expressing correct behavior
Our main product will be the combination of transcription factor sites combined with the SWITCH genes. This results in a reproducible technology to create any color combination you want.
Reduces time to market from 20+ years to <5 years now and <2 years in the near future
DISRUPTIVE technology to current breeder schemes!
How do we do it? -822 - +1 -651 - +41 WHITE PINK YELLOW PacC Nac-domain CAH1-domain BLUE RED GREEN Cre/lox Cre/lox pH regulated transcription factor O2 regulated transcription factor CO2 regulated transcription factor COLOUR genes
Time frame for results Rooting takes approx. 3 weeks Flower buds appear 12 weeks later Flowers fully developed 3 weeks later. From transfection to flowers <20 weeks! When transfecting, many calli created Thus many opportunities Can do multiple combinations simultaneously!
Time frame year 1 - 5 Year 1: create gene constructs for transfection; perform transfections Year 2: Propagate multiple “perfect” flowers to create many plants and observe flower color behavior. Can create new generation every 10 weeks Year 3-5: Sell stock to US growers Sell small plants (100,000/year) for $100.00/each Royalty payments ($0.01) for every stem sold to mass market (100M stems/year US) Royalty payments ($1.00) for each plant sold at nurseries/garden centers to consumers Gain access to other markets (Europe, Asia)
Requirements Needs: Cost 2 Scientists, 2 technicians $300,000* Laboratory space, 1,000 sf $500,000* Growth chambers (37°C) $ 100,000 Molecular biology equipment $ 200,000 Green house, 2,000 sf $1,000,000 Farmland, 2 acres $30,000 Total $2,130,000 *yearly recurring cost
Exit strategy II: *buyout by Florigene if successful Exit Strategy I: License our technology to others Use our technology to enter other flower segments (Chrysantemum, pansies)