This document discusses problems in the marketing of medicinal plants in Pakistan. It notes that Pakistan has many medicinal plants that are used in herbal medicines, but the industry faces several challenges. Key issues include a lack of standardized cultivation, harvesting, and processing practices, which leads to unstable availability and pricing of medicinal plants. There is also inadequate research and development, weak regulation, and imbalanced marketing channels that allow traders to underpay collectors. The document provides several suggestions to address these problems, such as promoting good agricultural and post-harvest practices, strengthening research, improving quality control, developing local markets, and providing access to market information and financial support for producers.

2. Problems in Marketing of
Medicinal Plants
In
Pakistan
By Mr Allah Dad Khan
03329221298
allahdad52@gmail.com

3. Medicinal plants in Pakistan
Pakistan is endowed with the wealth of medicinal
plants. These are the natural botanical source of
medicines being manufactured by indigenous
pharmaceutical houses in Pakistan. These are also
the basic source of modern pharmaceutical market,
although today it has become an entire medical world
of synthetics, with elevated prices a common man
cannot afford. It is therefore the most appropriate time
to consider development and organization of our
medicinal plants industry to become independent in
the provision of common indigenous natural drugs
that are being used to treat diseases in most of our
rural areas

4. Medicinal plants in Pakistan contd
In our country there are grown wild or cultivated
medicinal plants species which possess great
potentialities not only in the light of their use from
centuries in the sub- content in Greco-Arab
(Unani or Eastern) system of medicine but also in
the light of active principles or biodynamic
compounds being isolated from them using ultra
modern screening techniques available in our
country. Peppermint is an example of such useful
and effective medicinal plant.

5. Marketing Strategies:
1. The current increase in the worldwide consumption and use of
'green‘products, especially drugs, flavors and fragrances of natural
origin, has
indeed amplified the scope of the use of indigenous flora and collection
& trade of exotic species.
2.The identification of the ultimate suppliers and buyers is also big
issue in
this sector.
3.The gaps between the producers/collectors and traders or buyers
need to
be minimized as these are at present very wide and often inequitable.

6. Marketing Strategies:contd
4.Linkages should be developed in order to have better
understanding about
the NTFPs business & between the businesses and the
producers/collectors.
5. A holistic management action plan is necessary to formulate
forassessment
and management of resource base; best harvesting and processing
practices;
trade issues and aspects dealing with the intellectual property
rights on the
Traditional medicines by the tribal people.
6. Investments are needed for the development of appropriate
conversation,cultivation Harvesting strategies, which will
simultaneously
meet the demand for low-cost and locally Available medicines.
7.At the same time, there must be immediate efforts to ensure the
conservation of Diverse biological resources and the preservation
and

7. 7 P Market mix
• The tools available to a business to gain the
reaction it is seeking from its target market in
relation to its marketing objectives
• 7Ps – Price, Product, Promotion, Place,
People, Process, Physical Environment
• Traditional 4Ps extended to encompass
growth of service industry

8. Price

9. Pricing Strategy
What is the value of the product or service to the buyer?Are there
established price points for products or services in this area?Is
the customer price sensitive? Will a small decrease in price gain
you extra market share? Or
will a small increase be indiscernible, and so gain you extra profit
margin?What discounts should be offered to trade customers, or
to other specific segments of your market?How will your price
compare with your competitors.

10. Product

11. Product
 Product/Service
 What does the customer want from the product/service? What needs does it
satisfy?
 What features does it have to meet these needs?
 Are there any features you've missed out?
 Are you including costly features that the customer won't actually use?
 How and where will the customer use it?
 What does it look like? How will customers experience it?
 What size(s), color(s), and so on, should it be?
 What is it to be called?
 How is it branded?
 How is it differentiated versus your competitors?
 What is the most it can cost to provide, and still be sold sufficiently profitably?
(See also Price, below).
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13. Promotion
 Promotion
 Where and when can you get across your marketing messages to your target market?
 Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards?
By using direct marketing mailshot? Through PR? On the Internet?
 When is the best time to promote? Is there seasonality in the market? Are there any wider
environmental issues that suggest or dictate the timing of your market launch, or the timing of
subsequent promotions?
 How do your competitors do their promotions? And how does that influence your choice of
promotional activity?
 The 4Ps model is just one of many marketing mix lists that have been developed over the
years. And, whilst the questions we have listed above are key, they are just a subset of the
detailed probing that may be required to optimize your marketing mix.
 Amongst the other marketing mix models have been developed over the years is Boom and
Bitner's 7Ps, sometimes called the extended marketing mix, which include the first 4 Ps, plus
people, processes and physical layout decisions.
 Another marketing mix approach is Lauterborn's 4Cs, which presents the elements of the
marketing mix from the buyer's, rather than the seller's, perspective. It is made up of
Customer needs and wants (the equivalent of product), Cost (price), Convenience (place)
and Communication (promotion). In this article, we focus on the 4Ps model as it is the most
well-recognized, and contains the core elements of a good marketing mix
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15. Place
 Where do buyers look for your product or
service?
 If they look in a store, what kind? A specialist
boutique or in a supermarket, or both? Or online?
Or direct, via a catalogue?
 How can you access the right distribution
channels?
 Do you need to use a sales force? Or attend
trade fairs? Or make online submissions? Or
send samples to catalogue companies?
 What do you competitors do, and how can you
learn from that and/or differentiate?

17. people
 People represent the business
 The image they present can be important
 First contact often human – what is the lasting
image they provide to the customer?
 Extent of training and knowledge
of the product/service concerned
 Mission statement – how relevant?
 Do staff represent the desired culture
of the business?

19. Process
 How do people consume services?
 What processes do they have to go through to
acquire the services?
 Where do they find the availability
of the service?
 Contact
 Reminders
 Registration
 Subscription
 Form filling
 Degree of technology

21. Physical Environment
 The ambience, mood or physical presentation
of the environment
 Smart/shabby?
 Trendy/retro/modern/old fashioned?
 Light/dark/bright/subdued?
 Romantic/chic/loud?
 Clean/dirty/unkempt/neat?
 Music?
 Smell?

22. The Marketing Mix
 Blend of the mix depends upon:
 Marketing objectives
 Type of product
 Target market
 Market structure
 Rivals’ behaviour
 Global issues – culture/religion, etc.
 Marketing position
 Product portfolio
 Product lifecycle
 Boston Matrix

23. Marketing
 Products: must be planned
 Prices: must be determined
 Promoting: products is essential
 Placing: products must be accessible to
customers

24. 24
The Marketing Concept
Consumers
Marketing Research Marketing Segmentation
Product Price Place Promotion

26. Marketing of Medicinal Herbs
1. Most medicinal plants are harvested from wild, As the trade has
become market oriented and inter national , the growing number of
wild crafters is out stripping natural population. Hence there is
need to establish this trade on sustainable basis.
2. Most of the medicinal herb species are collected form the wild but
some of these are also grown particularly by small farmers to
diversify their cropping system and to earn some additional income
for their sustenance
3. The organic farming is a basic philosophy for production of
medicinal herbs. Organic farming methods are based on nature’s
principles of production. Organically produced medicinal herbs are
believed to be living in harmony with the natural system by
cooperating rather than competing

27. Threats to Medicinal Plants
1. Deforestation
2. Over and improper collection
3. Overgrazing
4. Conversion of forest land into agriculture Land

28. Identification of Markets
The process of identifying different
market segments
The process of identifying different
markets would help the farmers to
focus on which types of herbs to
be grown and how marketing
should be made.

29. largest global markets in World
The largest global markets for medicinal plants exist in China,
Germany, France, Japan, Italy, UK and USA. In the United
States, the trade of medicinal plants is observed with 10%
increase annually and more people are attracting towards
herbal medicines.

30. Marketing Structure
Trade of crude vegetable drugs is very erratic in
Pakistan. Prices fluctuate greatly due to variations
in external and internal demands within the country.
Traders frequently underpay collectors of the raw
materials and sell the products at a large profit.
Hence the availability of particular crude drugs
remains very unstable and market trends cannot be
easily determined.

31. Marketing Channels of Medicinal Plants
 The main driver for the cultivation of medicinal plants could
be located in two component , namely pull and push effects.
 In pull effect , are the factors that attract farmers to cultivate
medicinal plants rather than traditional crops incuding
 1.Attractive Price , fixed market channel , price assurance
by agents .
 2.Monopoly of the group of producers

32. Whereas Push effects are dominated by
1.Uncertainity of net income.
2.Well established market channel
There are two marketing routes that operate in field
1.Gather /Cultivator -----= Pharmacy
2.Gather/Cultivator ----=Trader ----= Pharmacy

33. International Marketing
Export Promotion Bureau may guide
about some of the plants that are
currently demanded . The publication
of data about medicinal herbs in this
regard will be of great value to different
stake holders

34. MARKETING STRUCTURE
Trade of crude vegetable drugs is very erratic in Pakistan. Prices fluctuate greatly due to variations in external and
internal demands within the country. Traders frequently underpay collectors of the raw materials and sell the
products at a large profit. Hencethe availability of particular crude drugs remains very unstable and market trends
cannot be easily determined.
Reasons for fluctuation in price :
The margin of profit earned by the traders is very large since they purchase the crude drugs at nominal rates and obtain
the maximum price from the consumers.
The export of crude drugs from Pakistan is very erratic due to the "Standards restrictions" imposed by the developed
countries of the world. Essential Oils of Anise, Caraway, Coriander, Fennel, Lavender, Sperarmint and Rosemary
are extensively used as flavors both in domestic consumption and abroad. Raw material for these culinary herbs is
cultivated to obtain the product.


35. The opportunities on the supply side of the indigenous medicine
market include
1. Availability of scarce medicinal plants in remote
locations,· availability of medicinal plants on commercial
farmlands,
2. Availability of plant supply from changing land-use,
3. Availability of medicinal plants on managed
communal lands,
4. Availability of a wide range of cultivation,
processing, and
Marketing expertise in other sectors,
5. Access to international examples of medicine
production for
traditional markets,
6. Large demand for new agricultural opportunities on
commercial

36. The opportunities on the supply side of the indigenous
medicine market include contd
7. Availability of progressive farmers with access to resources,
8.Robust nature of indigenous medicinal plants which require few
agricultural
inputs,
9.wide range of sites for product distribution, ranging from the farm
gate to
urban processing factories,
10.bility to supply specific species at times of the year when they are
usually
not available,
11. A large number of plant gatherers with appropriate knowledge that
could
promote the cultivation of plants for the market,
12. Documentation and establishment of accepted guidelines for use
and dosages
of medicinal plants, and
13. Several organizations have experience in indigenous medicine

38. Features of Marketing
1. Market Trends
2. Price information
3. Market news
4. Botanical product specifications
5. Meetings and trade shows
6. Directory of global herb trade associations
7. Special features (e.g. company profiles, regulations)

40. Problems in Marketing of Medicinal Plants
S.No Problem Solution
1. Poor agricultural practices Good agriculture Practices
specific to area and climate
2. Poor harvesting (indiscriminate) and
post-harvest treatment practices
Proper harvesting and practices
to minimize Post Harvest losses
in storage
3. Lack of research on development of
high-yielding varieties,
domestication
Enhancement of Research
And Development Projects
4 Inefficient processing techniques leading
to low yields and poor quality products ,
Insufficient data on the peak and lean
raw drug collection periods
Introduction of new processing
techniques and preparation of
data for products both in yield
and use.
5 Lack of Poor propagation methods Promotion of new propagation
methods

41. Problems in Marketing of Medicinal Plants contd
S.No Problem Solution
6 Poor quality control
procedures
Standardization of Products
7. High energy losses during
processing
Low consuming energy machineries
8. Lack of current good
manufacturing practices
Promotion of Good Manufacturing
Practices , Traditional medicines
manufacturers and scientists should be
encouraged to carry out research into the
cultivation of medicinal plants.
9 Lack of R & D on product and
process development -
Difficulties in marketing
Strengthening of rural development
infrastructure .
10 Lack of local market for
primary processed products
Provision of Local Market to farmers and
linkage of collectors with market
11 Lack of trained personnel and
equipment
Human Resource Development through
Training to different stake holders in
collection, cultivation, processing and
marketing of medicines.

42. Problems in Marketing of Medicinal Plants
contd
S.No Problem Solution
12 Lack of facilities to fabricate
equipment locally
Provision of facilities
13 Lack of access to latest
Technological and market information
Provision of access to Latest
Technology
14 The lack of traceability of the path of
the raw drug back to it source
Paving a Path as desired by Farming
Community
15 Owing to the lack of information on
the market size and identification of
all market sites in Pakistan .
Establishment of Market
Information System marketing
strategies by the companies
dealing in herbal medicine.
16 Absence of comparative studies of
price structure and lack of time series
data on prices
Initiation of studies in this respect.
17 Ineffective regulatory body, ineffective
regulation by the government in their
crucial role in the prevention of illegal
trade.
Legislation for drugs Sale and Use .
legislation improving the status of herbal
medicine industry

43. Problems in Marketing of Medicinal Plants contd
S.No Problem Solution
18
Lack of attitudes toward Medicinal
Plants Cultivation and market
management
Creation of Attitude through
awareness programme on mass
media
19
No Training to collector The plant collectors are needed to be
trained in proper harvesting methods.
20
Lack of correct identification of
medicinal plants
Proper identification through with the
collaboration among the taxonomists
and the local Herbalists is vital.
21
The price and quality of medicinal
plants in the market is not uniform.
Necessary measures should
be taken in this regard for the
uniformity
22
No proper Selection of Plants Introduction of selected medicinal
plants as minor crops will not only
reduce the pressure on the natural
vegetation but will also improve the
Socio economical conditions of the
farmers.

44. Problems in Marketing of Medicinal Plants contd
S.No Problem Solution
23 Collectors, processors and traders face
problems in finding favorable markets due to
price factors,
quality and quantity considerations.
Training
24 Financial and logistic constraints make it
difficult for local producers and collectors to
interact more
closely with prospective clients
Financial help
25 Inadequate knowledge and incomplete
Information on products, markets and prices
on
the part of collectors/producers
Awareness
26 Difficult to No proper recognition access
appropriate markets and market information.
of environmentally and commercially sound
MPs.
Allowed Access
27 Lack of standardization and consistency in
quality
for international marketing
Proper standardization
28 Astringent phyto-sanitary regulations such as
requirement of microbiological test, pesticides
and heavy metal test by international markets
Legislation

45. Suggestion and recommendations for Marketing
1.Recommendation of Medicinal Plants in different Ecolological zones in
Country special reference to KPK .one village one product .
2. Creation of awareness about medicinal plants both wild and cultivated
Through mass media .in
production and marketing
3. Marketing of medicinal plants in local and national as well as in international
markets through exposure by different stake holders .
4. Local Community should be trained regarding methods of collection and
drying, and
sustainable harvesting Demonstration of the cultivation packages and R & D in
marketing .
5. Plant collectors should be encouraged and educated in order to increase
their
bargaining power , thus increasing their revenues from medicinal plants.
6. Seed bank for the arrangement of MP seed , plants . Through farmers
bodies.
.

46. Suggestion and recommendations for Marketing7. Organic products and value addition through capacity building , the role of
women to be included in activities. review of local knowledge and harvest practices
8. A holistic management action plan is necessary to formulate for assessment and management of resource
base; best harvesting and processing practices; trade issues and aspects dealing with the intellectual
property rights on the traditional medicines .
9. Investments are needed for the development of appropriate conversation, cultivation harvesting strategies,
which will simultaneously meet the demand for low-cost and locally available medicines
10. At the same time, there must be immediate efforts to ensure the conservation of Diverse biological
resources and the preservation and application of local and cultural knowledge On the use of these
resources. biological studies (growth and regeneration rates, pollination system, seed dispersal, potential for confusion
with similar species, etc.) and assessment of harvest impact on viability of individuals
11. design and implementation of management scheme: annual harvesting quota, seasonal or regional
restriction and on certain plant parts or size classes, domestication programme
12. Research to investigate the sustainability of production systems is lacking and needs to be stimulated for a
better understanding of the biological dynamics of the resource in the wild and in domestication.
13. Eco-labelling and other social and economic incentives to strengthen market credibility and
competitiveness of biodiversity-friendly products need to be promoted
14. On the issue of intellectual property rights it needs to be elaborated how the country, the local user or other
entity can be adequately compensated for use of the resource by outsiders.

47. Urban Markets for Medicinal Plants
Three cities are the main final markets for traded MAPs once they are
moved out of District Swat. Our surveys (described below) included interviews with agents in
these markets. The three cities are:
Peshawar
The species of MAPs sold in Peshawar herbal markets are generally obtained from District Swat, Lahore, and
Afghanistan. Peshawar market also supplies some imported MAPs to District Swat and Afghanistan for local uses.
The market receives large quantities of herbal materials from District Swat which is then supplied to Lahore.
Lahore
Most of the dealers in Lahore herbal market are trading crude herbs imported from India, directly or indirectly. Over 50% of materials
traded
in Lahore are of Indian origin, and this is mainly due to cross border trade via train. The Lahore herbal market acts as a hub of national
trade
of MAPs. It is not only catering to the needs of smaller markets in various cities and towns of the province of Punjab but also supplies
considerable quantities of materials to the Karachi market. The middlemen of the MAPs trade usually bring the materials from District
Swat to
Lahore.
Karachi
However, a few agents also bring the material directly from up-country, including District Swat. Prices of various items in
Karachi market are generally 10-20% higher than Lahore, reflecting higher transportation, higher labor costs, and
profits of additional middlemen.
Islamabad
Islamabad is another final market for MAP from District Swat but we did not conduct interviews there. Both the
Lahore and Karachi herbals markets are the major source of materials to the large national herbal pharmaceutical
companies. These companies generally purchase materials through middlemen or so-called suppliers

48. Global Marketing
Opportunities:

49. Global Marketing Opportunities:
Export opportunities of natural products are tremendous, as the world market is
looking towards natural sources for the purposes of therapeutic use as well as
nutritional dietary supplements.
The global herbal remedies market can be classified into five strategic areas:
i) Phyto-Pharmaceuticals -the plant based drugs containing isolated pure active
compounds used to treat diseases;
ii) Medicinal Botanicals / Dietary Supplements -the whole plant or plant-part
extracts
used for maintenance of health by affecting a body structure and its function;
iii) Nutraceuticals the food containing supplements from natural (botanical)
sources,
that deliver a specific health benefit, including prevention and treatment of
disease;
iv) Cosmeceuticals -the cosmetic products which contain biologically active
ingredients
having an effect on the user and

50. AREAS FOR IMPROVEMENT
In the light of this review, a number of actions are considered important at a
country level
for improving the medicinal plant industry and enhancing the development of a
more effective
trade in medicinal plants and their products in developing countries.
1.Establish a critical mass of cultivable land in order to guarantee larger
consistent
supply. Promote farmer cooperation at village or regional level to guarantee a
critical
mass of cultivable land. Collectors should be organized into associations and
clusters
so that changes can be introduced in an effective and efficient manner.
2 Reduce the number of intermediaries involved in the distribution and
marketing chain,
and increase the negotiating power of the producers and collectors. This would
enhance the profit of primary farmers and collectors, many of whom are among
the
poorest of the population.
3. Improvements are needed in the areas of post collection handling, value

51. AREAS FOR IMPROVEMENT contd
4.Research and development on the chemical composition and the effect of poor practices on the active ingredients of the
selected species.
These efforts would be facilitated by improved cooperation and coordination between many of the groups with an interest
in this subject –
namely those involved in education, research, production, distribution and marketing. Greater cooperation between
researchers and farmers
Needs to be encouraged. Associated with these efforts, there is a need for improved product development.
5. Country authorities to develop effective strategies to support improved cultivation, quality controls systems, provision of
high quality
planting materials, and the encouragement of investments in new technologies.
6. Undertake a more in-depth global overview of the demand and supply of medicinal plants, herbal products and herbal
drugs in order to
clarify market issues, and consider more effective solutions. Many of the issues require more country and market-specific
analysis because of
the differing market conditions, approaches used, and materials and products being focussed on. Case studies of
successful marketing
approaches being used may assist other organizations or countries.
7.Developing countries should aim to cultivate their resources in a sustainable manner and enter markets at the early
stages of the value
chain by first supplying developed country manufacturers with unprocessed raw materials. They can then move towards
providing herbal
supplements before tackling the highly regulated market for herbal remedies.

52. AREAS FOR IMPROVEMENT contd
9. Value-addition through processing, and improved marketing of the
medicinal plants.
It is also important that the benefits of the expanded interest in medicinal
plants be
More equitably shared.
10. Enterprise development and promotion of the complete market chain.
A strong
Market orientation is essential for the development of the sector. A holistic
approach
needs to be adopted for the promotion of trade. Specific interventions
which only
target the collectors are insufficient.
11. The organic nature of the produce should be
explored and capitalized on for export marketing.

53. Suggestion and recommendations in Marketing
15. The gaps between the producers/collectors and traders or buyers need to be minimized as
these are at present very wide and often inequitable
16. A holistic management action plan is necessary to formulate for assessment and
management of
resource base; best harvesting and processing practices; trade issues and aspects dealing
with
the intellectual property rights on the traditional medicines
17.A ll-our efforts should be made to adopt a package of best practices encompassing
conservation, cultivation, quality control and standardization and research and
development for medicinal and herbals for improving its marketing performance efficiently.
18. Research should identify genotypes with high potential for commercial purposes, and then
conduct trials for the selection of high yielding varieties. here should be a reorientation of
research investment regarding medicinal plants, with a shift from pharmacological studies
to research which identifies effective methods of sustaining market supply and improving
the quality of products currently consumed.